N-CSRS 1 d286561dncsrs.htm N-CSRS N-CSRS

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

   

   811-01424

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)

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

 

(Name and address of agent for service)

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

Date of fiscal year end:          10/31                

Date of reporting period:       04/30/22           

 

ITEM 1.

REPORTS TO STOCKHOLDERS.

(a) The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

(b) Not applicable.

LOGO

 

   
Semiannual Report to Shareholders   April 30, 2022

Invesco Charter Fund

Nasdaq:

A: CHTRX ∎ C: CHTCX ∎ R: CHRRX ∎ S: CHRSX ∎ Y: CHTYX ∎ R5: CHTVX ∎ R6: CHFTX

 

    

   
2   Fund Performance
4   Liquidity Risk Management Program
5   Schedule of Investments
8   Financial Statements
11   Financial Highlights
12   Notes to Financial Statements
17   Fund Expenses

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

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 Performance

 

   

Performance summary

  
   

Fund vs. Indexes

  

Cumulative total returns, 10/31/21 to 4/30/22, 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

     -12.47 % 

Class C Shares

     -12.76  

Class R Shares

     -12.55  

Class S Shares

     -12.43  

Class Y Shares

     -12.37  

Class R5 Shares

     -12.33  

Class R6 Shares

     -12.32  

S&P 500 Index▼ (Broad Market Index)

     -9.65  

Russell 1000 Index▼ (Style-Specific Index)

     -11.29  

Source(s): ▼RIMES Technologies Corp.

 

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

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

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

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

 

 

 

 

 

 

 

For more information about your Fund

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

        

 

 

2   Invesco Charter Fund

    

    

 

 

Average Annual Total Returns

 

As of 4/30/22, including maximum applicable sales charges

 

Class A Shares

        

Inception (11/26/68)

     10.37 % 

10 Years

     8.53  

  5 Years

     7.82  

  1 Year

     -9.88  

Class C Shares

        

Inception (8/4/97)

     5.87 % 

10 Years

     8.49  

  5 Years

     8.24  

  1 Year

     -6.15  

Class R Shares

        

Inception (6/3/02)

     7.11 % 

10 Years

     8.88  

  5 Years

     8.78  

  1 Year

     -4.85  

Class S Shares

        

Inception (9/25/09)

     9.23 % 

10 Years

     9.25  

  5 Years

     9.15  

  1 Year

     -4.58  

Class Y Shares

        

Inception (10/3/08)

     9.00 % 

10 Years

     9.42  

  5 Years

     9.32  

  1 Year

     -4.43  

Class R5 Shares

        

Inception (7/30/91)

     8.42 % 

10 Years

     9.50  

  5 Years

     9.38  

  1 Year

     -4.39  

Class R6 Shares

        

10 Years

     9.56 % 

  5 Years

     9.46  

  1 Year

     -4.33  

Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower.

    Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC)

for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class S, Class Y, Class R5 and Class R6 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.

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

        

 

 

3   Invesco Charter Fund

 

Liquidity Risk Management Program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 21-23, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Fund and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

 

 

The Report stated, in relevant part, that during the Program Reporting Period:

∎

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎

The Fund’s investment strategy remained appropriate for an open-end fund;

∎

The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎

The Fund did not breach the 15% limit on Illiquid Investments; and

∎

The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

 

4   Invesco Charter Fund

Schedule of Investments(a)

April 30, 2022

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–98.81%

 

Aerospace & Defense–2.05%

      

Raytheon Technologies Corp.

      688,785      $       65,372,584  

 

  

Agricultural & Farm Machinery–1.37%

 

   

Deere & Co.

      115,793        43,717,647  

 

  

Air Freight & Logistics–2.87%

      

United Parcel Service, Inc., Class B

      507,424        91,326,171  

 

  

Application Software–2.03%

      

Manhattan Associates, Inc.(b)

     74,786        9,763,312  

 

  

salesforce.com, inc.(b)

     217,871        38,332,224  

 

  

Workday, Inc., Class A(b)

     79,960        16,527,732  

 

  
        64,623,268  

 

  

Automobile Manufacturers–1.82%

 

   

General Motors Co.(b)

     825,385        31,290,345  

 

  

Tesla, Inc.(b)

     30,558        26,608,684  

 

  
        57,899,029  

 

  

Automotive Retail–1.23%

      

CarMax, Inc.(b)(c)

     157,865        13,541,660  

 

  

O’Reilly Automotive, Inc.(b)

     42,298        25,655,852  

 

  
        39,197,512  

 

  

Biotechnology–0.88%

 

   

Seagen, Inc.(b)

     215,204        28,193,876  

 

  

Cable & Satellite–0.98%

      

Comcast Corp., Class A

      787,577        31,314,061  

 

  

Commodity Chemicals–0.76%

      

Valvoline, Inc.

      805,504        24,350,386  

 

  

Communications Equipment–1.04%

 

   

Motorola Solutions, Inc.

      154,682        33,053,997  

 

  

Construction Materials–1.29%

      

Vulcan Materials Co.

      237,707        40,954,539  

 

  

Consumer Finance–1.73%

      

American Express Co.

      316,283        55,257,803  

 

  

Data Processing & Outsourced Services–1.92%

 

Fiserv, Inc.(b)

     461,879        45,227,192  

 

  

PayPal Holdings, Inc.(b)

     181,223        15,934,938  

 

  
        61,162,130  

 

  

Distillers & Vintners–0.69%

      

Constellation Brands, Inc., Class A

      89,533        22,033,176  

 

  

Diversified Banks–1.45%

      

JPMorgan Chase & Co.

      386,699        46,156,393  

 

  

Electric Utilities–1.90%

      

FirstEnergy Corp.

      1,400,510        60,656,088  

 

  

Electrical Components & Equipment–0.26%

 

   

Rockwell Automation, Inc.

      32,518        8,216,323  

 

  
     Shares      Value  

 

  

Environmental & Facilities Services–0.71%

 

   

Waste Connections, Inc.

      164,449      $       22,689,029  

 

  

Financial Exchanges & Data–1.26%

 

   

Intercontinental Exchange, Inc.

      347,364        40,228,225  

 

  

Food Distributors–1.06%

      

Sysco Corp.

      395,420        33,800,502  

 

  

General Merchandise Stores–1.42%

 

   

Target Corp.

      197,207        45,091,381  

 

  

Health Care Facilities–2.14%

      

HCA Healthcare, Inc.

      216,289        46,404,805  

 

  

Tenet Healthcare Corp.(b)

     302,329        21,921,876  

 

  
        68,326,681  

 

  

Health Care Services–2.16%

      

CVS Health Corp.

      714,690        68,703,150  

 

  

Health Care Supplies–1.12%

      

Cooper Cos., Inc. (The)

      98,546        35,579,048  

 

  

Health Care Technology–0.26%

      

Doximity, Inc., Class A(b)(c)

     208,431        8,310,144  

 

  

Home Improvement Retail–0.27%

      

Floor & Decor Holdings, Inc., Class A(b)(c)

     109,067        8,694,821  

 

  

Homebuilding–0.74%

      

D.R. Horton, Inc.

      338,072        23,526,430  

 

  

Hotels, Resorts & Cruise Lines–1.26%

 

   

Airbnb, Inc., Class A(b)

     261,756        40,103,637  

 

  

Household Products–3.16%

      

Procter & Gamble Co. (The)

      628,120        100,844,666  

 

  

Industrial Conglomerates–0.27%

      

Honeywell International, Inc.

      44,618        8,634,029  

 

  

Industrial Machinery–1.47%

      

Otis Worldwide Corp.

      641,278        46,710,689  

 

  

Industrial REITs–3.06%

      

Prologis, Inc.

      609,058        97,625,907  

 

  

Integrated Oil & Gas–1.96%

      

Exxon Mobil Corp.

      733,728        62,550,312  

 

  

Integrated Telecommunication Services–1.54%

 

Verizon Communications, Inc.

      1,058,026        48,986,604  

 

  

Interactive Media & Services–3.33%

 

   

Alphabet, Inc., Class A(b)

     46,499        106,119,553  

 

  

Internet & Direct Marketing Retail–4.74%

 

   

Amazon.com, Inc.(b)

     60,762        151,031,850  

 

  

IT Consulting & Other Services–1.61%

 

   

Accenture PLC, Class A

      142,369        42,761,953  

 

  

Amdocs Ltd.

      105,642        8,418,611  

 

  
        51,180,564  

 

  
 

 

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

 

5   Invesco Charter Fund

     Shares      Value  

 

  

Life Sciences Tools & Services–0.90%

 

   

Avantor, Inc.(b)

     900,723      $     28,715,049  

 

  

Managed Health Care–2.91%

      

UnitedHealth Group, Inc.

      182,301        92,709,174  

 

  

Movies & Entertainment–0.22%

      

Warner Music Group Corp., Class A(c)

     240,296        7,153,612  

 

  

Oil & Gas Exploration & Production–0.84%

 

   

APA Corp.

      652,113        26,690,985  

 

  

Oil & Gas Storage & Transportation–1.30%

 

   

Cheniere Energy, Inc.

      185,878        25,244,091  

 

  

Magellan Midstream Partners L.P.

      336,774        16,316,700  

 

  
        41,560,791  

 

  

Other Diversified Financial Services–1.81%

 

   

Equitable Holdings, Inc.

      1,995,505        57,530,409  

 

  

Packaged Foods & Meats–0.93%

      

Mondelez International, Inc., Class A

      458,807        29,583,875  

 

  

Personal Products–0.10%

      

Coty, Inc., Class A(b)

     382,237        3,099,942  

 

  

Pharmaceuticals–6.11%

      

AstraZeneca PLC, ADR (United Kingdom)(c)

     982,186        65,217,151  

 

  

Bayer AG (Germany)

      341,311        22,496,733  

 

  

Eli Lilly and Co.

      279,750        81,723,368  

 

  

Johnson & Johnson

      139,398        25,155,763  

 

  
        194,593,015  

 

  

Property & Casualty Insurance–1.36%

 

   

Allstate Corp. (The)

      342,409        43,328,435  

 

  

Railroads–1.08%

      

Union Pacific Corp.

      146,615        34,350,428  

 

  

Regional Banks–2.76%

      

First Citizens BancShares, Inc., Class A

      54,573        34,892,885  

 

  

Signature Bank

      127,708        30,937,263  

 

  

SVB Financial Group(b)

     45,113        21,998,903  

 

  
        87,829,051  

 

  

Research & Consulting Services–0.41%

 

   

TransUnion

      150,750        13,193,640  

 

  

Semiconductor Equipment–1.21%

      

Applied Materials, Inc.

      349,141        38,527,709  

 

  

Semiconductors–2.59%

      

Advanced Micro Devices, Inc.(b)

     396,545        33,912,528  

 

  

Investment Abbreviations:

ADR  – American Depositary Receipt

REIT – Real Estate Investment Trust

     Shares      Value  

 

  

Semiconductors–(continued)

      

QUALCOMM, Inc.

      347,766      $ 48,579,433  

 

  
        82,491,961  

 

  

Soft Drinks–1.19%

      

Coca-Cola Co. (The)

      588,463        38,020,594  

 

  

Systems Software–9.81%

      

Crowdstrike Holdings, Inc., Class A(b)

     38,285        7,609,526  

 

  

Microsoft Corp.

      773,992        214,798,259  

 

  

ServiceNow, Inc.(b)

     48,857        23,358,532  

 

  

VMware, Inc., Class A

      617,541        66,719,130  

 

  
        312,485,447  

 

  

Technology Hardware, Storage & Peripherals–5.02%

 

Apple, Inc.

      1,014,647        159,959,100  

 

  

Thrifts & Mortgage Finance–0.45%

 

   

Rocket Cos., Inc., Class A

      1,627,005        14,398,994  

 

  

Total Common Stocks & Other Equity Interests
(Cost $2,543,152,166)

 

      3,148,444,416  

 

  

Money Market Funds–0.89%

 

   

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)

     9,845,090        9,845,090  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 0.29%(d)(e)

     7,052,580        7,051,170  

 

  

Invesco Treasury Portfolio, Institutional Class, 0.23%(d)(e)

     11,251,531        11,251,531  

 

  

Total Money Market Funds
    (Cost $28,147,652)

 

      28,147,791  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.70%
(Cost $2,571,299,818)

 

      3,176,592,207  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–1.09%

      

Invesco Private Government Fund, 0.40%(d)(e)(f)

     10,439,158        10,439,158  

 

  

Invesco Private Prime Fund, 0.35%(d)(e)(f)

     24,358,036        24,358,036  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $34,795,890)

 

      34,797,194  

 

  

TOTAL INVESTMENTS IN SECURITIES–100.79%
(Cost $2,606,095,708)

 

      3,211,389,401  

 

  

OTHER ASSETS LESS LIABILITIES–(0.79)%

 

      (25,052,074 ) 

 

  

NET ASSETS–100.00%

       $ 3,186,337,327  

 

  
 

 

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

 

6   Invesco Charter Fund

Notes to Schedule of Investments:

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2022.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2022.

 

     Value
October 31, 2021		     Purchases
at Cost		     Proceeds
from Sales		     Change in
Unrealized
Appreciation
(Depreciation)		    

Realized

Gain

(Loss)

     Value
April 30, 2022		     Dividend Income  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

       $  2,257,044       $ 58,550,158     $ (50,962,112 )          $        -         $ -            $ 9,845,090             $       664       

Invesco Liquid Assets Portfolio, Institutional Class

     1,784,070         41,821,540       (36,552,596 )      (75 )      (1,769)           7,051,170         1,435       

Invesco Treasury Portfolio, Institutional Class

     2,579,479         66,914,466       (58,242,414 )      -       -            11,251,531         1,587       
Investments Purchased with Cash Collateral from Securities on Loan:                                                           

Invesco Private Government Fund

     15,128,732         153,541,976       (158,231,550 )      -       -            10,439,158         7,314*      

Invesco Private Prime Fund

     35,300,375         365,775,310       (376,706,385 )      1,304       (12,568)           24,358,036         21,455*      

Total

       $57,049,700       $ 686,603,450     $ (680,695,057 )          $1,229         $ (14,337)           $ 62,944,985             $  32,455      

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f) 

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

 

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2022

 

Information Technology

        25.22 %

Health Care

        16.48

Consumer Discretionary

        11.47

Financials

        10.82

Industrials

        10.49

Consumer Staples

        7.14

Communication Services

        6.08

Energy

        4.10

Real Estate

        3.06

Materials

        2.05

Utilities

        1.90

Money Market Funds Plus Other Assets Less Liabilities

        1.19
 

 

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

 

7   Invesco Charter Fund

Statement of Assets and Liabilities

April 30, 2022

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $2,543,152,166)*

    $ 3,148,444,416  

 

  

Investments in affiliated money market funds, at value
(Cost $62,943,542)

      62,944,985  

 

  

Foreign currencies, at value (Cost $1,440)

      1,389  

 

  

Receivable for:

   

Investments sold

      17,991,304  

 

  

Fund shares sold

      634,432  

 

  

Dividends

      3,330,935  

 

  

Investment for trustee deferred compensation and retirement plans

      1,392,040  

 

  
Other assets      167,195  

 

  

Total assets

      3,234,906,696  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      8,746,038  

 

  

Fund shares reacquired

      1,792,098  

 

  

Collateral upon return of securities loaned

      34,795,890  

 

  

Accrued fees to affiliates

      1,584,316  

 

  

Accrued other operating expenses

      154,621  

 

  

Trustee deferred compensation and retirement plans

      1,496,406  

 

  

Total liabilities

      48,569,369  

 

  

Net assets applicable to shares outstanding

    $ 3,186,337,327  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 2,438,850,414  

 

  

Distributable earnings

      747,486,913  

 

  
   $ 3,186,337,327  

 

  

Net Assets:

   

Class A

    $ 3,005,949,812  

 

  

Class C

    $ 21,915,464  

 

  

Class R

    $ 17,585,251  

 

  

Class S

    $ 17,069,470  

 

  

Class Y

    $ 96,852,065  

 

  

Class R5

    $ 7,199,863  

 

  

Class R6

    $ 19,765,402  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

   

Class A

      183,038,755  

 

  

Class C

      1,490,113  

 

  

Class R

      1,083,538  

 

  

Class S

      1,039,272  

 

  

Class Y

      5,864,621  

 

  

Class R5

      409,044  

 

  

Class R6

      1,123,977  

 

  

Class A:

   

Net asset value per share

    $ 16.42  

 

  

Maximum offering price per share (Net asset value of $16.42 ÷ 94.50%)

    $ 17.38  

 

  

Class C:

   

Net asset value and offering price per share

    $ 14.71  

 

  

Class R:

   

Net asset value and offering price per share

    $ 16.23  

 

  

Class S:

   

Net asset value and offering price per share

    $ 16.42  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 16.51  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 17.60  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 17.59  

 

  

 

*

At April 30, 2022, securities with an aggregate value of $33,031,126 were on loan to brokers.

 

 

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

 

8   Invesco Charter Fund

Statement of Operations

For the six months ended April 30, 2022

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $11,278)

    $ 27,344,581  

 

  

Dividends from affiliated money market funds (includes securities lending income of $399,580)

      403,266  

 

  

Total investment income

      27,747,847  

 

  

Expenses:

   

Advisory fees

      11,202,371  

 

  

Administrative services fees

      259,943  

 

  

Custodian fees

      6,671  

 

  

Distribution fees:

   

Class A

      4,257,698  

 

  

Class C

      128,940  

 

  

Class R

      49,396  

 

  

Class S

      14,755  

 

  

Transfer agent fees – A, C, R, S and Y

      1,946,910  

 

  

Transfer agent fees – R5

      4,104  

 

  

Transfer agent fees – R6

      3,335  

 

  

Trustees’ and officers’ fees and benefits

      20,440  

 

  

Registration and filing fees

      69,645  

 

  

Reports to shareholders

      77,037  

 

  

Professional services fees

      33,856  

 

  

Other

      19,656  

 

  

Total expenses

      18,094,757  

 

  

Less: Fees waived and/or expense offset arrangement(s)

      (3,056 ) 

 

  

Net expenses

      18,091,701  

 

  

Net investment income

      9,656,146  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      142,670,851  

 

  

Affiliated investment securities

      (14,337 ) 

 

  

Foreign currencies

      17,794  

 

  
     142,674,308  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      (609,131,146 ) 

 

  

Affiliated investment securities

      1,229  

 

  

Foreign currencies

      (32,692 ) 

 

  
     (609,162,609 ) 

 

  

Net realized and unrealized gain (loss)

      (466,488,301 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (456,832,155 ) 

 

  

 

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

 

9   Invesco Charter Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2022 and the year ended October 31, 2021

(Unaudited)

 

    

April 30,

2022

    

October 31,

2021

  

 

  

Operations:

     

Net investment income

    $ 9,656,146     $ 13,505,432  

 

  

Net realized gain

      142,674,308       521,973,796  

 

  

Change in net unrealized appreciation (depreciation)

      (609,162,609 )      615,769,308  

 

  

Net increase (decrease) in net assets resulting from operations

      (456,832,155 )      1,151,248,536  

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (513,412,830 )      (72,039,347 ) 

 

  

Class C

      (4,212,587 )      (646,926 ) 

 

  

Class R

      (2,936,983 )      (378,832 ) 

 

  

Class S

      (3,006,415 )      (443,411 ) 

 

  

Class Y

      (16,819,129 )      (2,368,090 ) 

 

  

Class R5

      (1,177,340 )      (203,608 ) 

 

  

Class R6

      (3,482,534 )      (461,672 ) 

 

  

Total distributions from distributable earnings

      (545,047,818 )      (76,541,886 ) 

 

  

Share transactions-net:

     

Class A

      340,523,920       (221,272,537 ) 

 

  

Class C

      1,716,778       (11,600,194 ) 

 

  

Class R

      2,650,623       (1,874,578 ) 

 

  

Class S

      1,545,212       (1,789,206 ) 

 

  

Class Y

      11,275,592       3,757,091  

 

  

Class R5

      288,609       (1,005,584 ) 

 

  

Class R6

      5,218,870       (1,481,654 ) 

 

  

Net increase (decrease) in net assets resulting from share transactions

      363,219,604       (235,266,662 ) 

 

  

Net increase (decrease) in net assets

      (638,660,369 )      839,439,988  

 

  

Net assets:

     

Beginning of period

      3,824,997,696       2,985,557,708  

 

  

End of period

    $ 3,186,337,327     $ 3,824,997,696  

 

  

 

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

 

10   Invesco Charter Fund

Financial Highlights

(Unaudited)

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

 

      Net asset
value,
beginning
of period		    Net
investment
income
(loss)(a)		  

Net gains
(losses)

on securities
(both
realized and
unrealized)

   Total from
investment
operations		   Dividends
from net
investment
income		   Distributions
from net
realized
gains		   Total
distributions		   Net asset
value, end
of period		    Total
return (b)		   Net assets,
end of period
(000’s omitted)		    Ratio of
expenses
to average net
assets
with fee waivers
and/or
expenses
absorbed		   Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed		   Ratio of net
investment
income
(loss)
to average
net assets		   Portfolio
turnover (c)

Class A

                                

Six months ended 04/30/22

      $21.88        $0.05       $(2.36 )      $(2.31 )      $(0.08 )      $(3.07 )      $(3.15 )      $16.42        (12.47 )%      $3,005,950        1.01 %(d)      1.01 %(d)      0.53 %(d)      19 % 

Year ended 10/31/21

      15.99        0.07       6.24       6.31       (0.10 )      (0.32 )      (0.42 )      21.88        40.10       3,609,724        1.03       1.03       0.38       47  

Year ended 10/31/20

      17.79        0.11       1.02       1.13       (0.13 )      (2.80 )      (2.93 )      15.99        6.71       2,816,198        1.07       1.07       0.70       45  

Year ended 10/31/19

      17.52        0.13       1.86 (e)      1.99       (0.07 )      (1.65 )      (1.72 )      17.79        12.96 (e)      3,007,391        1.07       1.07       0.74       82  

Year ended 10/31/18

      18.75        0.06       (0.04 )      0.02       (0.10 )      (1.15 )      (1.25 )      17.52        (0.04 )      2,951,279        1.07       1.08       0.35       46  

Year ended 10/31/17

      18.31        0.09       2.29       2.38       (0.17 )      (1.77 )      (1.94 )      18.75        13.83       3,363,073        1.10       1.11       0.50       30  

Class C

                                

Six months ended 04/30/22

      19.91        (0.02 )      (2.11 )      (2.13 )      –       (3.07 )      (3.07 )      14.71        (12.76 )      21,915        1.76 (d)      1.76 (d)      (0.22 )(d)      19  

Year ended 10/31/21

      14.61        (0.07 )      5.69       5.62       –       (0.32 )      (0.32 )      19.91        39.00       27,725        1.78       1.78       (0.37 )      47  

Year ended 10/31/20

      16.47        (0.01 )      0.95       0.94       –       (2.80 )      (2.80 )      14.61        5.96       30,607        1.82       1.82       (0.05 )      45  

Year ended 10/31/19

      16.39        (0.00 )      1.73 (e)      1.73       –       (1.65 )      (1.65 )      16.47        12.14 (e)      40,493        1.82       1.82       (0.01 )      82  

Year ended 10/31/18

      17.65        (0.07 )      (0.04 )      (0.11 )      –       (1.15 )      (1.15 )      16.39        (0.80 )      133,804        1.82       1.83       (0.40 )      46  

Year ended 10/31/17

      17.32        (0.04 )      2.16       2.12       (0.02 )      (1.77 )      (1.79 )      17.65        12.98       167,073        1.85       1.86       (0.25 )      30  

Class R

                                

Six months ended 04/30/22

      21.63        0.03       (2.33 )      (2.30 )      (0.03 )      (3.07 )      (3.10 )      16.23        (12.55 )      17,585        1.26 (d)      1.26 (d)      0.28 (d)      19  

Year ended 10/31/21

      15.82        0.02       6.16       6.18       (0.05 )      (0.32 )      (0.37 )      21.63        39.66       20,442        1.28       1.28       0.13       47  

Year ended 10/31/20

      17.62        0.07       1.01       1.08       (0.08 )      (2.80 )      (2.88 )      15.82        6.46       16,500        1.32       1.32       0.45       45  

Year ended 10/31/19

      17.34        0.08       1.85 (e)      1.93       –       (1.65 )      (1.65 )      17.62        12.68 (e)      19,772        1.32       1.32       0.49       82  

Year ended 10/31/18

      18.55        0.02       (0.04 )      (0.02 )      (0.04 )      (1.15 )      (1.19 )      17.34        (0.24 )      23,251        1.32       1.33       0.10       46  

Year ended 10/31/17

      18.13        0.05       2.26       2.31       (0.12 )      (1.77 )      (1.89 )      18.55        13.53       30,187        1.35       1.36       0.25       30  

Class S

                                

Six months ended 04/30/22

      21.89        0.06       (2.36 )      (2.30 )      (0.10 )      (3.07 )      (3.17 )      16.42        (12.43 )      17,069        0.91 (d)      0.91 (d)      0.63 (d)      19  

Year ended 10/31/21

      16.00        0.09       6.23       6.32       (0.11 )      (0.32 )      (0.43 )      21.89        40.20       21,013        0.93       0.93       0.48       47  

Year ended 10/31/20

      17.80        0.13       1.02       1.15       (0.15 )      (2.80 )      (2.95 )      16.00        6.82       16,783        0.97       0.97       0.80       45  

Year ended 10/31/19

      17.53        0.14       1.87 (e)      2.01       (0.09 )      (1.65 )      (1.74 )      17.80        13.09 (e)      16,906        0.97       0.97       0.84       82  

Year ended 10/31/18

      18.76        0.08       (0.04 )      0.04       (0.12 )      (1.15 )      (1.27 )      17.53        0.07       17,317        0.97       0.98       0.45       46  

Year ended 10/31/17

      18.32        0.11       2.28       2.39       (0.18 )      (1.77 )      (1.95 )      18.76        13.94       19,028        1.00       1.01       0.60       30  

Class Y

                                

Six months ended 04/30/22

      22.01        0.07       (2.37 )      (2.30 )      (0.13 )      (3.07 )      (3.20 )      16.51        (12.37 )      96,852        0.76 (d)      0.76 (d)      0.78 (d)      19  

Year ended 10/31/21

      16.09        0.12       6.26       6.38       (0.14 )      (0.32 )      (0.46 )      22.01        40.36       116,054        0.78       0.78       0.63       47  

Year ended 10/31/20

      17.88        0.15       1.04       1.19       (0.18 )      (2.80 )      (2.98 )      16.09        7.03       81,404        0.82       0.82       0.95       45  

Year ended 10/31/19

      17.61        0.17       1.87 (e)      2.04       (0.12 )      (1.65 )      (1.77 )      17.88        13.24 (e)      93,143        0.82       0.82       0.99       82  

Year ended 10/31/18

      18.84        0.11       (0.04 )      0.07       (0.15 )      (1.15 )      (1.30 )      17.61        0.23       101,885        0.82       0.83       0.60       46  

Year ended 10/31/17

      18.39        0.14       2.29       2.43       (0.21 )      (1.77 )      (1.98 )      18.84        14.13       129,285        0.85       0.86       0.75       30  

Class R5

                                

Six months ended 04/30/22

      23.25        0.08       (2.53 )      (2.45 )      (0.13 )      (3.07 )      (3.20 )      17.60        (12.33 )      7,200        0.75 (d)      0.75 (d)      0.79 (d)      19  

Year ended 10/31/21

      16.98        0.14       6.60       6.74       (0.15 )      (0.32 )      (0.47 )      23.25        40.37       9,109        0.75       0.75       0.66       47  

Year ended 10/31/20

      18.71        0.17       1.09       1.26       (0.19 )      (2.80 )      (2.99 )      16.98        7.11       7,511        0.76       0.76       1.01       45  

Year ended 10/31/19

      18.34        0.19       1.96 (e)      2.15       (0.13 )      (1.65 )      (1.78 )      18.71        13.34 (e)      9,163        0.75       0.75       1.06       82  

Year ended 10/31/18

      19.58        0.13       (0.06 )      0.07       (0.16 )      (1.15 )      (1.31 )      18.34        0.25       12,018        0.76       0.77       0.66       46  

Year ended 10/31/17

      19.05        0.16       2.38       2.54       (0.24 )      (1.77 )      (2.01 )      19.58        14.19       29,835        0.77       0.78       0.83       30  

Class R6

                                

Six months ended 04/30/22

      23.24        0.09       (2.52 )      (2.43 )      (0.15 )      (3.07 )      (3.22 )      17.59        (12.27 )      19,765        0.68 (d)      0.68 (d)      0.86 (d)      19  

Year ended 10/31/21

      16.97        0.15       6.60       6.75       (0.16 )      (0.32 )      (0.48 )      23.24        40.49       20,931        0.68       0.68       0.73       47  

Year ended 10/31/20

      18.70        0.18       1.09       1.27       (0.20 )      (2.80 )      (3.00 )      16.97        7.19       16,553        0.69       0.69       1.08       45  

Year ended 10/31/19

      18.34        0.20       1.95 (e)      2.15       (0.14 )      (1.65 )      (1.79 )      18.70        13.38 (e)      19,030        0.69       0.69       1.12       82  

Year ended 10/31/18

      19.58        0.14       (0.05 )      0.09       (0.18 )      (1.15 )      (1.33 )      18.34        0.34       20,404        0.69       0.70       0.73       46  

Year ended 10/31/17

      19.05        0.17       2.38       2.55       (0.25 )      (1.77 )      (2.02 )      19.58        14.27       18,290        0.69       0.70       0.91       30  

 

(a) 

Calculated using average shares outstanding.

(b) 

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c) 

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

(d) 

Annualized.

(e) 

Includes litigation proceeds received during the year ended October 31, 2019. Had these litigation proceeds not been received, Net gains (losses) on securities (both realized and unrealized) per share would have been $1.81, $1.68, $1.80, $1.82, $1.82, $1.91 and $1.90 for Class A, Class C, Class R, Class S, Class Y, Class R5, and Class R6 shares, respectively. Total returns would have been lower.

 

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

 

11   Invesco Charter Fund

Notes to Financial Statements

April 30, 2022

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Charter Fund (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

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

The Fund currently consists of seven different classes of shares: Class A, Class C, Class R, Class S, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class S, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

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

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

A.

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

A security listed or traded on an exchange is 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 may be valued up to 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 debt securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.

 

12   Invesco Charter 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 and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C.

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

D.

Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

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

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

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

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the Investment Company Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

Invesco Advisers, Inc. (the “Adviser” or “Invesco”) serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon (the “BNYM”) also continues to serve as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2022, the Fund paid the Adviser $1,103 in fees for securities lending agent services.

J.

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

 

13   Invesco Charter Fund

  foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

K.

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

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

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

L.

COVID-19 Risk – The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $250 million

      0.695%  

 

  

Next $4.05 billion

      0.615%  

 

  

Next $3.9 billion

      0.570%  

 

  

Next $1.8 billion

      0.545%  

 

  

Over $10 billion

      0.520%  

 

  

For the six months ended April 30, 2022, the effective advisory fee rate incurred by the Fund was 0.62%.

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

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class S, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.90%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended April 30, 2022, the Adviser waived advisory fees of $2,157.

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 six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class S, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C, Class R and Class S shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares, 0.50% of the average daily net assets of Class R shares and 0.15% of the average daily net assets of Class S shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of Class A,

 

14   Invesco Charter Fund

Class C and Class R shares and 0.15% of the average daily net assets of Class S shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2022, 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 six months ended April 30, 2022, IDI advised the Fund that IDI retained $68,869 in front-end sales commissions from the sale of Class A shares and $47 and $801 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended April 30, 2022, the Fund incurred $8,286 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2022. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1      Level 2          Level 3    Total  

 

  

Investments in Securities

            

 

  

Common Stocks & Other Equity Interests

      $3,125,947,683        $22,496,733      $–      $3,148,444,416  

 

  

Money Market Funds

      28,147,791        34,797,194        –      62,944,985  

 

  

Total Investments

      $3,154,095,474        $57,293,927      $–      $3,211,389,401  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2022, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $899.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of October 31, 2021.

 

15   Invesco Charter Fund

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2022 was $677,758,228 and $867,482,447, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of investments

    $ 768,135,195  

 

  

Aggregate unrealized (depreciation) of investments

      (170,935,468 ) 

 

  

Net unrealized appreciation of investments

    $ 597,199,727  

 

  

Cost of investments for tax purposes is $2,614,189,674.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended
April 30, 2022(a) 		    Year ended
October 31, 2021(a) 		 
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      1,472,616     $ 27,691,875       2,445,056     $ 47,132,882  

 

  

Class C

      87,708       1,481,736       166,240       2,879,992  

 

  

Class R

      83,384       1,583,435       119,854       2,288,471  

 

  

Class S

      8,087       154,244       25,452       488,365  

 

  

Class Y

      527,582       10,049,464       1,055,267       20,403,478  

 

  

Class R5

      25,274       508,228       49,585       1,057,994  

 

  

Class R6

      266,732       6,121,474       156,825       3,270,707  

 

  

Issued as reinvestment of dividends:

         

Class A

      25,285,347       478,146,053       3,859,089       67,186,745  

 

  

Class C

      243,059       4,127,134       39,494       629,924  

 

  

Class R

      156,901       2,934,047       21,961       378,832  

 

  

Class S

      157,596       2,978,567       24,720       430,133  

 

  

Class Y

      666,800       12,669,201       116,651       2,037,894  

 

  

Class R5

      57,483       1,164,036       10,946       202,069  

 

  

Class R6

      154,923       3,132,535       23,073       425,471  

 

  

Automatic conversion of Class C shares to Class A shares:

 

      

Class A

      84,755       1,555,200       578,653       10,404,444  

 

  

Class C

      (94,392 )      (1,555,200 )      (632,106 )      (10,404,444 ) 

 

  

Reacquired:

         

Class A

      (8,800,448 )      (166,869,208 )      (17,956,672 )      (345,996,608 ) 

 

  

Class C

      (138,853 )      (2,336,892 )      (275,782 )      (4,705,666 ) 

 

  

Class R

      (101,767 )      (1,866,859 )      (239,881 )      (4,541,881 ) 

 

  

Class S

      (86,273 )      (1,587,599 )      (139,024 )      (2,707,704 ) 

 

  

Class Y

      (602,743 )      (11,443,073 )      (959,447 )      (18,684,281 ) 

 

  

Class R5

      (65,412 )      (1,383,655 )      (111,293 )      (2,265,647 ) 

 

  

Class R6

      (198,189 )      (4,035,139 )      (254,906 )      (5,177,832 ) 

 

  

Net increase (decrease) in share activity

      19,190,170     $ 363,219,604       (11,876,245 )    $ (235,266,662 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 25% 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.

 

16   Invesco Charter 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, 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 November 1, 2021 through April 30, 2022.

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 or contingent deferred sales charges on redemptions, 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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

 

     

Beginning
    Account Value    
(11/01/21)

    ACTUAL   

HYPOTHETICAL

(5% annual return before

expenses)

   

      Annualized      
Expense

Ratio

   Ending
    Account Value    
(04/30/22)1		    Expenses
      Paid During       
Period2 		   Ending
    Account Value    
(04/30/22)		    Expenses
      Paid During       
Period2

Class A

    $1,000.00    $875.30    $4.70    $1,019.79    $5.06    1.01%

Class C

      1,000.00      872.40      8.17      1,016.07      8.80    1.76    

Class R

      1,000.00      874.50      5.86      1,018.55      6.31    1.26    

Class S

      1,000.00      875.70      4.23      1,020.28      4.56    0.91    

Class Y

      1,000.00      876.30      3.54      1,021.03      3.81    0.76    

Class R5

      1,000.00      876.70      3.49      1,021.08      3.76    0.75    

Class R6

      1,000.00      876.80      3.16      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 November 1, 2021 through April 30, 2022, 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.

 

17   Invesco Charter Fund

 

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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

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Invesco mailing information

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

 

 

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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    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/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

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

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

 

LOGO

 

SEC file number(s): 811-01424 and 002-25469    Invesco Distributors, Inc.    CHT-SAR-1

LOGO

 

   
Semiannual Report to Shareholders   April 30, 2022

Invesco Diversified Dividend Fund

Nasdaq:

A: LCEAX ∎ C: LCEVX ∎ R: DDFRX ∎ Y: LCEYX ∎ Investor: LCEIX ∎ R5: DDFIX ∎ R6: LCEFX

 

    

   
2   Fund Performance
4   Liquidity Risk Management Program
5   Schedule of Investments
8   Financial Statements
11   Financial Highlights
12   Notes to Financial Statements
17   Fund Expenses

 

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

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 Performance

 

 

 

   

Performance summary

  
 

Fund vs. Indexes

 

Cumulative total returns, 10/31/21 to 4/30/22, 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

     0.09 % 

Class C Shares

     -0.26  

Class R Shares

     0.02  

Class Y Shares

     0.23  

Investor Class Shares

     0.19  

Class R5 Shares

     0.29  

Class R6 Shares

     0.28  

S&P 500 Index▼ (Broad Market Index)

     -9.65  

Russell 1000 Value Index▼ (Style-Specific Index)

     -3.94  

Lipper Large-Cap Value Funds Index∎ (Peer Group Index)

     -5.15  

Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc.

  

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

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

  The Lipper Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value funds tracked by Lipper.

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

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

 

 

 

 

 

 

 

 

For more information about your Fund

 

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

    

 

 

2   Invesco Diversified Dividend Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 4/30/22, including maximum applicable sales charges

 

Class A Shares

        

Inception (12/31/01)

     7.50 % 

10 Years

     9.45  

  5 Years

     6.02  

  1 Year

     -1.98  

Class C Shares

        

Inception (12/31/01)

     7.51 % 

10 Years

     9.41  

  5 Years

     6.42  

  1 Year

     2.09  

Class R Shares

        

Inception (10/25/05)

     7.91 % 

10 Years

     9.81  

  5 Years

     6.97  

  1 Year

     3.51  

Class Y Shares

        

Inception (10/3/08)

     9.69 % 

10 Years

     10.35  

  5 Years

     7.49  

  1 Year

     4.00  

Investor Class Shares

        

Inception (7/15/05)

     7.89 % 

10 Years

     10.13  

  5 Years

     7.31  

  1 Year

     3.87  

Class R5 Shares

        

Inception (10/25/05)

     8.51 % 

10 Years

     10.40  

  5 Years

     7.56  

  1 Year

     4.04  

Class R6 Shares

        

10 Years

     10.48 % 

  5 Years

     7.65  

  1 Year

     4.12  

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Investor Class,

Class R5 and Class R6 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.

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

    

 

 

3   Invesco Diversified Dividend Fund

 

Liquidity Risk Management Program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 21-23, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Fund and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

The Report stated, in relevant part, that during the Program Reporting Period:

∎

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎

The Fund’s investment strategy remained appropriate for an open-end fund;

∎

The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎

The Fund did not breach the 15% limit on Illiquid Investments; and

∎

The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

 

4   Invesco Diversified Dividend Fund

Schedule of Investments(a)

April 30, 2022

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–98.16%

 

Aerospace & Defense–3.33%

 

General Dynamics Corp.

      493,523      $ 116,732,995  

 

  

Raytheon Technologies Corp.(b)

      3,227,868        306,356,952  

 

  
        423,089,947  

 

  

Agricultural & Farm Machinery–0.69%

 

Deere & Co.

      231,889        87,549,692  

 

  

Air Freight & Logistics–1.26%

 

United Parcel Service, Inc., Class B

      887,355        159,706,153  

 

  

Apparel Retail–0.65%

 

TJX Cos., Inc. (The)

      1,344,781        82,408,180  

 

  

Apparel, Accessories & Luxury Goods–0.51%

 

Columbia Sportswear Co.

      782,657        64,303,099  

 

  

Asset Management & Custody Banks–1.17%

 

State Street Corp.

      2,214,884        148,330,781  

 

  

Biotechnology–0.70%

 

AbbVie, Inc.

      606,059        89,017,946  

 

  

Brewers–0.76%

 

Heineken N.V. (Netherlands)

      990,656        96,621,689  

 

  

Cable & Satellite–2.15%

 

Comcast Corp., Class A

      6,862,837        272,866,399  

 

  

Communications Equipment–1.10%

 

Cisco Systems, Inc.

      2,851,739        139,678,176  

 

  

Construction Machinery & Heavy Trucks–1.16%

 

Caterpillar, Inc.

      700,600        147,504,324  

 

  

Consumer Finance–1.42%

 

American Express Co.

      1,034,751        180,781,347  

 

  

Data Processing & Outsourced Services–1.37%

 

Visa, Inc., Class A(b)

      815,846        173,881,258  

 

  

Diversified Banks–3.88%

 

Bank of America Corp.

      6,900,004        246,192,143  

 

  

Wells Fargo & Co.

      5,660,372        246,962,030  

 

  
        493,154,173  

 

  

Electric Utilities–5.04%

 

American Electric Power Co., Inc.

      1,845,870        182,944,176  

 

  

Constellation Energy Corp.

      1,014,599        60,074,407  

 

  

Entergy Corp.

      1,956,339        232,510,890  

 

  

Exelon Corp.

      3,498,354        163,653,000  

 

  
        639,182,473  

 

  

Electrical Components & Equipment–0.87%

 

ABB Ltd. (Switzerland)

      3,669,630        109,924,724  

 

  

Electronic Manufacturing Services–0.93%

 

TE Connectivity Ltd. (Switzerland)

      942,477        117,602,280  

 

  

General Merchandise Stores–1.66%

 

Target Corp.

             920,102             210,381,322  

 

  
     Shares      Value  

 

  

Gold–0.62%

 

Newmont Corp.

      1,072,425      $ 78,126,161  

 

  

Health Care Equipment–4.46%

 

Becton, Dickinson and Co.

      793,025        196,027,850  

 

  

Medtronic PLC

      2,597,232        271,047,131  

 

  

Stryker Corp.

      413,011        99,643,034  

 

  
        566,718,015  

 

  

Health Care Services–2.23%

 

CVS Health Corp.

      2,943,959        283,002,779  

 

  

Home Improvement Retail–1.04%

 

Lowe’s Cos., Inc.

      666,705        131,827,580  

 

  

Hypermarkets & Super Centers–2.74%

 

Walmart, Inc.

      2,275,449        348,120,943  

 

  

Industrial Machinery–2.24%

 

Parker-Hannifin Corp.

      478,415        129,564,350  

 

  

Pentair PLC

      1,365,641        69,306,281  

 

  

Stanley Black & Decker, Inc.(b)

      714,107        85,799,956  

 

  
        284,670,587  

 

  

Integrated Oil & Gas–3.21%

 

Chevron Corp.(b)

      2,602,085        407,668,657  

 

  

Integrated Telecommunication Services–3.71%

 

AT&T, Inc.

      7,275,359        137,213,271  

 

  

Deutsche Telekom AG (Germany)

      8,636,002        159,072,113  

 

  

Verizon Communications, Inc.

      3,777,706        174,907,788  

 

  
        471,193,172  

 

  

Investment Banking & Brokerage–2.49%

 

Charles Schwab Corp. (The)

      3,227,789        214,099,244  

 

  

Morgan Stanley

      1,257,530        101,344,343  

 

  
        315,443,587  

 

  

IT Consulting & Other Services–1.70%

 

Cognizant Technology Solutions Corp., Class A

      2,672,478        216,203,470  

 

  

Managed Health Care–4.28%

 

Anthem, Inc.

      492,683        247,292,378  

 

  

UnitedHealth Group, Inc.

      581,126        295,531,628  

 

  
        542,824,006  

 

  

Movies & Entertainment–1.08%

 

Walt Disney Co. (The)(c)

      1,225,672        136,821,765  

 

  

Multi-line Insurance–1.67%

 

Hartford Financial Services Group, Inc. (The)

      3,040,109        212,594,822  

 

  

Multi-Utilities–1.80%

      

Dominion Energy, Inc.

      2,801,679        228,729,074  

 

  

Oil & Gas Exploration & Production–3.58%

 

ConocoPhillips

      3,037,578        290,149,451  

 

  

Pioneer Natural Resources Co.(b)

             708,432        164,689,187  

 

  
             454,838,638  

 

  
 

 

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

 

5   Invesco Diversified Dividend Fund

     Shares      Value  

 

  

Packaged Foods & Meats–3.08%

 

Kraft Heinz Co. (The)

      4,591,601      $ 195,739,951  

 

  

Nestle S.A.

      1,513,627        195,417,531  

 

  
        391,157,482  

 

  

Paper Packaging–0.47%

 

Avery Dennison Corp.

      332,472        60,044,443  

 

  

Personal Products–0.94%

 

L’Oreal S.A. (France)

      328,985        119,684,961  

 

  

Pharmaceuticals–9.53%

 

Bristol-Myers Squibb Co.

      2,652,997        199,691,084  

 

  

Eli Lilly and Co.

      387,403        113,172,039  

 

  

Johnson & Johnson

      2,846,657        513,707,722  

 

  

Merck & Co., Inc.

      4,325,709        383,647,131  

 

  
        1,210,217,976  

 

  

Property & Casualty Insurance–1.84%

 

Travelers Cos., Inc. (The)

      1,363,464        233,234,152  

 

  

Regional Banks–4.63%

 

Comerica, Inc.

      1,519,244        124,426,084  

 

  

Cullen/Frost Bankers, Inc.(b)

      614,062        81,234,262  

 

  

Fifth Third Bancorp

      2,647,997        99,379,327  

 

  

M&T Bank Corp.

      1,064,517        177,391,113  

 

  

Zions Bancorporation N.A.

      1,859,164        105,061,358  

 

  
        587,492,144  

 

  

Restaurants–2.97%

 

Darden Restaurants, Inc.

      500,230        65,895,298  

 

  

McDonald’s Corp.

      919,785        229,173,630  

 

  

Starbucks Corp.

      1,095,231        81,748,042  

 

  
        376,816,970  

 

  

Semiconductor Equipment–0.63%

 

Lam Research Corp.

      171,640        79,943,046  

 

  

Semiconductors–1.93%

 

Analog Devices, Inc.

      641,277        99,000,343  

 

  

Broadcom, Inc.

      262,392        145,467,501  

 

  
        244,467,844  

 

  

Soft Drinks–1.60%

 

Coca-Cola Co. (The)

          3,139,983             202,874,302  

 

  

Investment Abbreviations:

REIT - Real Estate Investment Trust

     Shares      Value  

 

  

Specialized REITs–2.24%

 

Crown Castle International Corp.

      698,240      $ 129,321,030  

 

  

Weyerhaeuser Co.

      3,757,493        154,883,862  

 

  
        284,204,892  

 

  

Specialty Chemicals–1.04%

 

DuPont de Nemours, Inc.

      2,003,699        132,103,875  

 

  

Systems Software–1.76%

 

Microsoft Corp.

      806,608        223,849,852  

 

  

Total Common Stocks & Other Equity Interests
(Cost $9,372,303,264)

 

      12,460,859,158  

 

  

Money Market Funds–2.00%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)

      100,649,960        100,649,960  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 0.29%(d)(e)

      47,830,669        47,821,103  

 

  

Invesco Treasury Portfolio, Institutional Class, 0.23%(d)(e)

      105,659,582        105,659,582  

 

  

Total Money Market Funds
(Cost $254,125,475)

 

      254,130,645  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)–100.16%
(Cost $9,626,428,739)

 

      12,714,989,803  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–0.91%

 

Invesco Private Government Fund, 0.40%(d)(e)(f)

      34,676,788        34,676,788  

 

  

Invesco Private Prime Fund, 0.35%(d)(e)(f)

      80,912,505        80,912,505  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $115,589,293)

 

      115,589,293  

 

  

TOTAL INVESTMENTS IN SECURITIES–101.07%
(Cost $9,742,018,032)

 

      12,830,579,096  

 

  

OTHER ASSETS LESS LIABILITIES–(1.07)%

 

      (136,369,973 ) 

 

  

NET ASSETS–100.00%

       $ 12,694,209,123  

 

  
 

 

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

 

6   Invesco Diversified Dividend Fund

Notes to Schedule of Investments:

 

(a) 

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

(b) 

All or a portion of this security was out on loan at April 30, 2022.

(c)

Non-income producing security.

(d)

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2022.

 

     Value
October 31, 2021		    

Purchases

at Cost

    

Proceeds

from Sales

     Change in
Unrealized
Appreciation
(Depreciation)		    

Realized

Gain

(Loss)

    

Value

April 30, 2022

     Dividend Income  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     $ 67,248,868       $ 692,726,189     $ (659,325,097 )        $ -              $ -            $ 100,649,960           $ 30,330       

Invesco Liquid Assets Portfolio, Institutional Class

     23,991,336         494,804,421       (470,946,497 )      (3,409)           (24,748)           47,821,103         23,565       

Invesco Treasury Portfolio, Institutional Class

     67,486,904         791,687,074       (753,514,396 )      -            -            105,659,582         34,432       
Investments Purchased with Cash Collateral from Securities on Loan:                                                        

Invesco Private Government Fund

     35,715,293         433,803,631       (434,842,136 )      -            -            34,676,788         14,416*      

Invesco Private Prime Fund

     83,335,683         902,980,977       (905,378,023 )      -            (26,132)           80,912,505         62,182*      

Total

     $ 277,778,084       $ 3,316,002,292     $ (3,224,006,149 )        $ (3,409)             $ (50,880)           $ 369,719,938           $ 164,925       

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f) 

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

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2022

 

Health Care

      21.20 % 

Financials

      17.10  

Industrials

      9.55  

Information Technology

      9.42  

Consumer Staples

      9.13  

Communication Services

      6.94  

Utilities

      6.84  

Consumer Discretionary

      6.82  

Energy

      6.79  

Real Estate

      2.24  

Materials

      2.13  

Money Market Funds Plus Other Assets Less Liabilities

      1.84  
 

 

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

 

7   Invesco Diversified Dividend Fund

Statement of Assets and Liabilities

April 30, 2022

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $9,372,303,264)*

    $ 12,460,859,158  

 

  

Investments in affiliated money market funds, at value
(Cost $369,714,768)

      369,719,938  

 

  

Cash

      12,430,634  

 

  

Foreign currencies, at value (Cost $1,416,869)

      1,416,820  

 

  

Receivable for:

   

Investments sold

      23,925,527  

 

  

Fund shares sold

      8,768,461  

 

  

Dividends

      21,169,986  

 

  

Investment for trustee deferred compensation and retirement plans

      754,605  

 

  

Other assets

      278,043  

 

  

Total assets

      12,899,323,172  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      12,430,634  

 

  

Fund shares reacquired

      70,127,141  

 

  

Collateral upon return of securities loaned

      115,589,293  

 

  

Accrued fees to affiliates

      5,569,892  

 

  

Accrued other operating expenses

      443,265  

 

  

Trustee deferred compensation and retirement plans

      953,824  

 

  

Total liabilities

      205,114,049  

 

  

Net assets applicable to shares outstanding

    $ 12,694,209,123  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 8,380,186,906  

 

  

Distributable earnings

      4,314,022,217  

 

  
   $ 12,694,209,123  

 

  

Net Assets:

   

Class A

    $ 4,103,857,878  

 

  

Class C

    $ 245,764,676  

 

  

Class R

    $ 145,836,531  

 

  

Class Y

    $ 1,255,891,892  

 

  

Investor Class

    $ 1,638,192,564  

 

  

Class R5

    $ 2,293,708,010  

 

  

Class R6

    $ 3,010,957,572  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      210,760,329  

 

  

Class C

      12,824,295  

 

  

Class R

      7,457,621  

 

  

Class Y

      64,422,602  

 

  

Investor Class

      84,141,866  

 

  

Class R5

      117,806,591  

 

  

Class R6

      154,631,992  

 

  

Class A:

   

Net asset value per share

    $ 19.47  

 

  

Maximum offering price per share
(Net asset value of $19.47 ÷ 94.50%)

    $ 20.60  

 

  

Class C:

   

Net asset value and offering price per share

    $ 19.16  

 

  

Class R:

   

Net asset value and offering price per share

    $ 19.56  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 19.49  

 

  

Investor Class:

   

Net asset value and offering price per share

    $ 19.47  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 19.47  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 19.47  

 

  

 

*

At April 30, 2022, securities with an aggregate value of $109,727,572 were on loan to brokers.

 

 

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

 

8   Invesco Diversified Dividend Fund

Statement of Operations

For the six months ended April 30, 2022

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $2,010,392)

    $ 163,398,481  

 

  

Dividends from affiliates (includes securities lending income of $64,835)

      153,162  

 

  

Total investment income

      163,551,643  

 

  

Expenses:

   

Advisory fees

      27,688,276  

 

  

Administrative services fees

      979,531  

 

  

Custodian fees

      125,802  

 

  

Distribution fees:

   

Class A

      5,302,038  

 

  

Class C

      1,319,129  

 

  

Class R

      428,114  

 

  

Investor Class

      1,176,873  

 

  

Transfer agent fees – A, C, R, Y and Investor

      5,744,337  

 

  

Transfer agent fees – R5

      1,354,822  

 

  

Transfer agent fees – R6

      567,713  

 

  

Trustees’ and officers’ fees and benefits

      59,098  

 

  

Registration and filing fees

      122,069  

 

  

Reports to shareholders

      302,121  

 

  

Professional services fees

      54,732  

 

  

Other

      76,379  

 

  

Total expenses

      45,301,034  

 

  

Less: Fees waived and/or expense offset arrangement(s)

      (67,424 ) 

 

  

Net expenses

      45,233,610  

 

  

Net investment income

      118,318,033  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      1,224,597,635  

 

  

Affiliated investment securities

      (50,880 ) 

 

  

Foreign currencies

      (168,090 ) 

 

  
     1,224,378,665  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      (1,282,214,783 ) 

 

  

Affiliated investment securities

      (3,409 ) 

 

  

Foreign currencies

      (602,804 ) 

 

  
     (1,282,820,996 ) 

 

  

Net realized and unrealized gain (loss)

      (58,442,331 ) 

 

  

Net increase in net assets resulting from operations

    $ 59,875,702  

 

  

 

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

 

9   Invesco Diversified Dividend Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2022 and the year ended October 31, 2021

(Unaudited)

 

    

April 30,

2022

    

October 31,

2021

  

 

  

Operations:

     

Net investment income

    $ 118,318,033     $ 306,747,625  

 

  

Net realized gain

      1,224,378,665       2,291,332,894  

 

  

Change in net unrealized appreciation (depreciation)

      (1,282,820,996 )      1,904,930,924  

 

  

Net increase in net assets resulting from operations

      59,875,702       4,503,011,443  

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (636,508,082 )      (143,386,628 ) 

 

  

Class C

      (40,022,147 )      (8,792,565 ) 

 

  

Class R

      (27,807,835 )      (6,373,665 ) 

 

  

Class Y

      (216,378,758 )      (65,371,081 ) 

 

  

Investor Class

      (259,239,012 )      (60,646,062 ) 

 

  

Class R5

      (429,865,000 )      (131,045,816 ) 

 

  

Class R6

      (523,497,086 )      (171,639,332 ) 

 

  

Total distributions from distributable earnings

      (2,133,317,920 )      (587,255,149 ) 

 

  

Share transactions–net:

     

Class A

      445,102,107       (315,037,593 ) 

 

  

Class C

      9,925,340       (101,105,693 ) 

 

  

Class R

      (21,230,897 )      (34,376,403 ) 

 

  

Class Y

      (154,971,702 )      (402,130,053 ) 

 

  

Investor Class

      150,187,286       (161,222,606 ) 

 

  

Class R5

      (356,047,089 )      (897,517,733 ) 

 

  

Class R6

      (93,563,105 )      (1,507,189,072 ) 

 

  

Net increase (decrease) in net assets resulting from share transactions

      (20,598,060 )      (3,418,579,153 ) 

 

  

Net increase (decrease) in net assets

      (2,094,040,278 )      497,177,141  

 

  

Net assets:

     

Beginning of period

      14,788,249,401       14,291,072,260  

 

  

End of period

    $ 12,694,209,123     $ 14,788,249,401  

 

  

 

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

 

10   Invesco Diversified Dividend Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

  

Total

return (b)

  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net
assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                            

Six months ended 04/30/22

     $22.89       $0.16       $(0.16 )      $0.00       $(0.19 )      $(3.23 )      $(3.42 )      $19.47       0.09 %      $4,103,858       0.83 %(d)      0.83 %(d)      1.53 %(d)      20 % 

Year ended 10/31/21

     17.82       0.37       5.43       5.80       (0.43 )      (0.30 )      (0.73 )      22.89       33.06       4,287,951       0.81       0.81       1.73       34  

Year ended 10/31/20

     20.50       0.43       (2.07 )      (1.64 )      (0.46 )      (0.58 )      (1.04 )      17.82       (8.28 )      3,599,794       0.83       0.83       2.30       8  

Year ended 10/31/19

     19.55       0.47       1.89       2.36       (0.51 )      (0.90 )      (1.41 )      20.50       12.94       4,995,726       0.81       0.82       2.45       5  

Year ended 10/31/18

     20.18       0.44       (0.49 )      (0.05 )      (0.43 )      (0.15 )      (0.58 )      19.55       (0.28 )      4,979,893       0.79       0.80       2.17       10  

Year ended 10/31/17

     18.83       0.37       1.79       2.16       (0.34 )      (0.47 )      (0.81 )      20.18       11.65       6,029,664       0.80       0.82       1.85       8  

Class C

                            

Six months ended 04/30/22

     22.57       0.08       (0.16 )      (0.08 )      (0.10 )      (3.23 )      (3.33 )      19.16       (0.26 )      245,765       1.58 (d)      1.58 (d)      0.78 (d)      20  

Year ended 10/31/21

     17.58       0.21       5.34       5.55       (0.26 )      (0.30 )      (0.56 )      22.57       32.02       276,023       1.56       1.56       0.98       34  

Year ended 10/31/20

     20.22       0.29       (2.04 )      (1.75 )      (0.31 )      (0.58 )      (0.89 )      17.58       (8.96 )      300,883       1.58       1.58       1.55       8  

Year ended 10/31/19

     19.30       0.32       1.86       2.18       (0.36 )      (0.90 )      (1.26 )      20.22       12.08       449,838       1.56       1.57       1.70       5  

Year ended 10/31/18

     19.92       0.28       (0.47 )      (0.19 )      (0.28 )      (0.15 )      (0.43 )      19.30       (1.01 )      634,394       1.54       1.55       1.42       10  

Year ended 10/31/17

     18.59       0.21       1.77       1.98       (0.18 )      (0.47 )      (0.65 )      19.92       10.84       840,125       1.55       1.57       1.10       8  

Class R

                            

Six months ended 04/30/22

     22.97       0.13       (0.15 )      (0.02 )      (0.16 )      (3.23 )      (3.39 )      19.56       0.02       145,837       1.08 (d)      1.08 (d)      1.28 (d)      20  

Year ended 10/31/21

     17.89       0.32       5.44       5.76       (0.38 )      (0.30 )      (0.68 )      22.97       32.66       193,353       1.06       1.06       1.48       34  

Year ended 10/31/20

     20.57       0.38       (2.07 )      (1.69 )      (0.41 )      (0.58 )      (0.99 )      17.89       (8.48 )      179,293       1.08       1.08       2.05       8  

Year ended 10/31/19

     19.61       0.43       1.89       2.32       (0.46 )      (0.90 )      (1.36 )      20.57       12.69       255,482       1.06       1.07       2.20       5  

Year ended 10/31/18

     20.24       0.39       (0.49 )      (0.10 )      (0.38 )      (0.15 )      (0.53 )      19.61       (0.52 )      306,070       1.04       1.05       1.92       10  

Year ended 10/31/17

     18.88       0.32       1.80       2.12       (0.29 )      (0.47 )      (0.76 )      20.24       11.40       358,418       1.05       1.07       1.60       8  

Class Y

                            

Six months ended 04/30/22

     22.91       0.19       (0.17 )      0.02       (0.21 )      (3.23 )      (3.44 )      19.49       0.23       1,255,892       0.58 (d)      0.58 (d)      1.78 (d)      20  

Year ended 10/31/21

     17.84       0.43       5.42       5.85       (0.48 )      (0.30 )      (0.78 )      22.91       33.35       1,620,295       0.56       0.56       1.98       34  

Year ended 10/31/20

     20.53       0.48       (2.08 )      (1.60 )      (0.51 )      (0.58 )      (1.09 )      17.84       (8.07 )      1,589,496       0.58       0.58       2.55       8  

Year ended 10/31/19

     19.57       0.52       1.90       2.42       (0.56 )      (0.90 )      (1.46 )      20.53       13.27       2,547,134       0.56       0.57       2.70       5  

Year ended 10/31/18

     20.20       0.49       (0.49 )      0.00       (0.48 )      (0.15 )      (0.63 )      19.57       (0.03 )      2,844,688       0.54       0.55       2.42       10  

Year ended 10/31/17

     18.85       0.42       1.79       2.21       (0.39 )      (0.47 )      (0.86 )      20.20       11.93       4,278,325       0.55       0.57       2.10       8  

Investor Class

                            

Six months ended 04/30/22

     22.88       0.17       (0.16 )      0.01       (0.19 )      (3.23 )      (3.42 )      19.47       0.19 (e)      1,638,193       0.72 (d)(e)      0.72 (d)(e)      1.64 (d)(e)      20  

Year ended 10/31/21

     17.82       0.40       5.41       5.81       (0.45 )      (0.30 )      (0.75 )      22.88       33.11 (e)      1,742,672       0.70 (e)      0.70 (e)      1.84 (e)      34  

Year ended 10/31/20

     20.49       0.44       (2.06 )      (1.62 )      (0.47 )      (0.58 )      (1.05 )      17.82       (8.17 )(e)      1,489,011       0.77 (e)      0.77 (e)      2.36 (e)      8  

Year ended 10/31/19

     19.54       0.49       1.88       2.37       (0.52 )      (0.90 )      (1.42 )      20.49       13.00 (e)      1,817,251       0.74 (e)      0.75 (e)      2.52 (e)      5  

Year ended 10/31/18

     20.16       0.45       (0.48 )      (0.03 )      (0.44 )      (0.15 )      (0.59 )      19.54       (0.19 )(e)      1,815,421       0.74 (e)      0.75 (e)      2.22 (e)      10  

Year ended 10/31/17

     18.81       0.37       1.79       2.16       (0.34 )      (0.47 )      (0.81 )      20.16       11.69 (e)      2,113,750       0.75 (e)      0.77 (e)      1.90 (e)      8  

Class R5

                            

Six months ended 04/30/22

     22.89       0.19       (0.16 )      0.03       (0.22 )      (3.23 )      (3.45 )      19.47       0.25       2,293,708       0.53 (d)      0.53 (d)      1.83 (d)      20  

Year ended 10/31/21

     17.82       0.43       5.43       5.86       (0.49 )      (0.30 )      (0.79 )      22.89       33.45       3,062,152       0.52       0.52       2.02       34  

Year ended 10/31/20

     20.50       0.49       (2.07 )      (1.58 )      (0.52 )      (0.58 )      (1.10 )      17.82       (7.98 )      3,107,721       0.52       0.52       2.61       8  

Year ended 10/31/19

     19.55       0.54       1.88       2.42       (0.57 )      (0.90 )      (1.47 )      20.50       13.29       3,915,168       0.50       0.51       2.76       5  

Year ended 10/31/18

     20.18       0.50       (0.49 )      0.01       (0.49 )      (0.15 )      (0.64 )      19.55       0.02       3,715,586       0.50       0.51       2.46       10  

Year ended 10/31/17

     18.83       0.43       1.79       2.22       (0.40 )      (0.47 )      (0.87 )      20.18       11.99       3,845,848       0.49       0.51       2.16       8  

Class R6

                            

Six months ended 04/30/22

     22.89       0.20       (0.17 )      0.03       (0.22 )      (3.23 )      (3.45 )      19.47       0.28       3,010,958       0.46 (d)      0.46 (d)      1.90 (d)      20  

Year ended 10/31/21

     17.83       0.45       5.42       5.87       (0.51 )      (0.30 )      (0.81 )      22.89       33.49       3,605,804       0.43       0.43       2.11       34  

Year ended 10/31/20

     20.51       0.50       (2.07 )      (1.57 )      (0.53 )      (0.58 )      (1.11 )      17.83       (7.88 )      4,024,875       0.43       0.43       2.70       8  

Year ended 10/31/19

     19.55       0.55       1.90       2.45       (0.59 )      (0.90 )      (1.49 )      20.51       13.44       5,197,717       0.41       0.42       2.85       5  

Year ended 10/31/18

     20.19       0.51       (0.49 )      0.02       (0.51 )      (0.15 )      (0.66 )      19.55       0.07       5,905,494       0.40       0.41       2.56       10  

Year ended 10/31/17

     18.83       0.45       1.79       2.24       (0.41 )      (0.47 )      (0.88 )      20.19       12.15       6,344,022       0.39       0.41       2.26       8  

 

(a)

Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c)

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

(d)

Annualized.

(e) 

The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.14%, 0.14%, 0.19%, 0.18%, 0.20% and 0.20% for the six months ended April 30, 2022 and for the years ended October 31, 2021, 2020, 2019, 2018 and 2017, respectively.

 

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

 

11   Invesco Diversified Dividend Fund

Notes to Financial Statements

April 30, 2022

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Diversified Dividend Fund (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is long-term growth of capital and, secondarily, current income.

The Fund currently consists of seven different classes of shares: Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6. Class Y and Investor Class shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Investor Class, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

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

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

A.

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

A security listed or traded on an exchange is 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 may be valued up to 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 debt securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.

 

12   Invesco Diversified Dividend 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 and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C.

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

D.

Distributions – Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

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

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

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

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the Investment Company Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

Invesco Advisers, Inc. (the “Adviser” or “Invesco”) serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon (the “BNYM”) also continues to serve as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2022, the Fund paid the Adviser $2,866 in fees for securities lending agent services.

J.

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

 

13   Invesco Diversified Dividend Fund

  interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

K.

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

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

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

L.

COVID-19 Risk – The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $ 350 million

      0.600%  

 

  

Next $350 million

      0.550%  

 

  

Next $1.3 billion

      0.500%  

 

  

Next $2 billion

      0.450%  

 

  

Next $2 billion

      0.400%  

 

  

Next $2 billion

      0.375%  

 

  

Over $8 billion

      0.350%  

 

  

For the six months ended April 30, 2022, the effective advisory fee rate incurred by the Fund was 0.40%.

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

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 2.00%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended April 30, 2022, the Adviser waived advisory fees of $66,712.

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 six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A,

 

14   Invesco Diversified Dividend Fund

Class C, Class R and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. The fees are accrued daily and paid monthly. Of the 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 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 six months ended April 30, 2022, 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 six months ended April 30, 2022, IDI advised the Fund that IDI retained $247,792 in front-end sales commissions from the sale of Class A shares and $9,868 and $1,726 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended April 30, 2022, the Fund incurred $6,735 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2022. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1        Level 2        Level 3        Total  

 

  

Investments in Securities

                  

 

  

Common Stocks & Other Equity Interests

    $ 11,780,138,140        $ 680,721,018          $–        $ 12,460,859,158  

 

  

Money Market Funds

      254,130,645          115,589,293            –          369,719,938  

 

  

Total Investments

    $ 12,034,268,785        $ 796,310,311          $–        $ 12,830,579,096  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2022, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $712.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

 

15   Invesco Diversified Dividend Fund

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. 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 did not have a capital loss carryforward as of October 31, 2021.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2022 was $2,742,270,789 and $4,708,527,848, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $3,537,166,117  

 

  

Aggregate unrealized (depreciation) of investments

      (459,654,141 ) 

 

  

Net unrealized appreciation of investments

      $3,077,511,976  

 

  

Cost of investments for tax purposes is $9,753,067,120.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     April 30, 2022(a)     October 31, 2021  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      10,064,653     $ 206,019,498       15,025,998     $ 322,187,664  

 

  

Class C

      653,789       13,214,345       912,591       19,256,308  

 

  

Class R

      942,091       19,434,300       1,226,867       26,267,145  

 

  

Class Y

      6,101,928       126,344,727       16,923,688       360,367,904  

 

  

Investor Class

      1,031,226       21,289,790       1,911,873       40,279,459  

 

  

Class R5

      6,887,858       141,075,115       17,766,016       375,436,561  

 

  

Class R6

      10,947,349       225,300,334       27,399,714       581,799,439  

 

  

Issued as reinvestment of dividends:

         

Class A

      30,085,476       584,007,885       6,335,038       130,696,930  

 

  

Class C

      1,895,800       36,224,540       390,145       7,830,053  

 

  

Class R

      1,426,227       27,800,774       308,785       6,372,167  

 

  

Class Y

      9,276,992       180,156,845       2,600,190       53,549,154  

 

  

Investor Class

      11,991,130       232,669,438       2,660,335       54,868,705  

 

  

Class R5

      22,140,039       429,590,550       6,346,288       130,949,359  

 

  

Class R6

      26,539,522       514,995,764       8,198,014       169,253,130  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      881,853       17,986,368       2,823,623       58,964,482  

 

  

Class C

      (895,773 )      (17,986,368 )      (2,861,608 )      (58,964,482 ) 

 

  

Reacquired:

         

Class A

      (17,638,008 )      (362,911,644 )      (38,780,275 )      (826,886,669 ) 

 

  

Class C

      (1,057,657 )      (21,527,177 )      (3,323,603 )      (69,227,572 ) 

 

  

Class R

      (3,329,099 )      (68,465,971 )      (3,140,532 )      (67,015,715 ) 

 

  

Class Y

      (21,679,067 )      (461,473,274 )      (37,881,837 )      (816,047,111 ) 

 

  

Investor Class

      (5,039,145 )      (103,771,942 )      (11,986,826 )      (256,370,770 ) 

 

  

Class R5

      (45,027,123 )      (926,712,754 )      (64,662,581 )      (1,403,903,653 ) 

 

  

Class R6

      (40,403,108 )      (833,859,203 )      (103,846,708 )      (2,258,241,641 ) 

 

  

Net increase (decrease) in share activity

      5,796,953     $ (20,598,060 )      (155,654,805 )    $ (3,418,579,153 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 49% of the outstanding shares of the Fund. 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.

 

16   Invesco Diversified Dividend 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, 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 November 1, 2021 through April 30, 2022.

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 or contingent deferred sales charges on redemptions, 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.

 

          ACTUAL  

HYPOTHETICAL

(5% annual return before

expenses)

     
     Beginning
    Account Value    
(11/01/21)		   Ending
    Account Value    
(04/30/22)1		   Expenses
      Paid During      
Period2		   Ending
      Account Value      
(04/30/22)		   Expenses
      Paid During      
Period2		  

      Annualized      
Expense

Ratio

Class A

   $1,000.00   $1,000.90   $4.12   $1,020.68   $4.16   0.83%

Class C

     1,000.00        997.40     7.82     1,016.96     7.90   1.58    

Class R

     1,000.00     1,000.20     5.36     1,019.44     5.41   1.08    

Class Y

     1,000.00     1,002.30     2.88     1,021.92     2.91   0.58    

Investor Class

     1,000.00     1,001.90     3.57     1,021.22     3.61   0.72    

Class R5

     1,000.00     1,002.90     2.63     1,022.17     2.66   0.53    

Class R6

     1,000.00     1,002.80     2.28     1,022.51     2.31   0.46    

 

1 

The actual ending account value is based on the actual total return of the Fund for the period November 1, 2021 through April 30, 2022, 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.

 

17   Invesco Diversified Dividend Fund

 

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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

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Invesco mailing information

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

 

 

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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    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/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

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

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

 

LOGO

SEC file number(s): 811-01424 and 002-25469                Invesco Distributors, Inc.    DDI-SAR-1                                         

LOGO

 

   
Semiannual Report to Shareholders   April 30, 2022

Invesco Main Street Fund®

Nasdaq:

A: MSIGX ∎ C: MIGCX ∎ R: OMGNX ∎ Y: MIGYX ∎ R5: MSJFX ∎ R6: OMSIX

 

        
2   Fund Performance
4   Liquidity Risk Management Program
5   Schedule of Investments
8   Financial Statements
11   Financial Highlights
12   Notes to Financial Statements
17   Fund Expenses

 

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

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 Performance

 

   

Performance summary

  
   

Fund vs. Indexes

  

Cumulative total returns, 10/31/21 to 4/30/22, 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

     -12.38 % 

Class C Shares

     -12.69  

Class R Shares

     -12.48  

Class Y Shares

     -12.27  

Class R5 Shares

     -12.24  

Class R6 Shares

     -12.25  

S&P 500 Index▼

     -9.65  

Source(s): ▼RIMES Technologies Corp.

 

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

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

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

 

 

 

 

 

 

For more information about your Fund

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

 

2   Invesco Main Street Fund®

    

    

    

 

 

Average Annual Total Returns

 

As of 4/30/22, including maximum applicable sales charges

 

Class A Shares

        

Inception (2/3/88)

     11.01 % 

10 Years

     11.06  

  5 Years

     9.26  

  1 Year

     -9.70  

Class C Shares

        

Inception (12/1/93)

     8.42 % 

10 Years

     11.02  

  5 Years

     9.66  

  1 Year

     -5.96  

Class R Shares

        

Inception (3/1/01)

     6.73 % 

10 Years

     11.40  

  5 Years

     10.20  

  1 Year

     -4.73  

Class Y Shares

        

Inception (11/1/96)

     8.29 % 

10 Years

     11.97  

  5 Years

     10.76  

  1 Year

     -4.22  

Class R5 Shares

        

10 Years

     11.80 % 

  5 Years

     10.72  

  1 Year

     -4.17  

Class R6 Shares

        

Inception (12/29/11)

     13.07 % 

10 Years

     12.13  

  5 Years

     10.90  

  1 Year

     -4.16  

    Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Main Street Fund®, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Main Street Fund®. Note: The Fund was subsequently renamed the Invesco Main Street Fund® (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    Class R5 shares incepted on May 24, 2019. Performance shown on and 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.

    The performance data quoted represent past performance and cannot guarantee 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. Performance figures do not reflect deduction

of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 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.

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

 

 

3   Invesco Main Street Fund®

 

Liquidity Risk Management Program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 21-23, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Fund and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

The Report stated, in relevant part, that during the Program Reporting Period:

∎

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎

The Fund’s investment strategy remained appropriate for an open-end fund;

∎

The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎

The Fund did not breach the 15% limit on Illiquid Investments; and

∎

The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

 

4   Invesco Main Street Fund®

Schedule of Investments(a)

April 30, 2022

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–98.84%

 

Aerospace & Defense–2.05%

 

Raytheon Technologies Corp.

      2,089,908      $    198,353,168  

 

  

Agricultural & Farm Machinery–1.37%

 

Deere & Co.

      351,617        132,752,998  

 

  

Air Freight & Logistics–2.87%

 

United Parcel Service, Inc., Class B

      1,538,910        276,973,022  

 

  

Application Software–2.03%

 

Manhattan Associates, Inc.(b)(c)

      226,649        29,589,027  

 

  

salesforce.com, inc.(b)

      660,006        116,121,456  

 

  

Workday, Inc., Class A(b)

      242,439        50,112,141  

 

  
        195,822,624  

 

  

Automobile Manufacturers–1.82%

 

General Motors Co.(b)

      2,502,417        94,866,628  

 

  

Tesla, Inc.(b)

      92,597        80,629,764  

 

  
        175,496,392  

 

  

Automotive Retail–1.23%

 

CarMax, Inc.(b)(c)

      478,441        41,040,669  

 

  

O’Reilly Automotive, Inc.(b)

      128,121        77,711,793  

 

  
        118,752,462  

 

  

Biotechnology–0.88%

 

Seagen, Inc.(b)

      651,924        85,408,563  

 

  

Cable & Satellite–0.98%

 

Comcast Corp., Class A

      2,387,897        94,942,785  

 

  

Commodity Chemicals–0.76%

 

Valvoline, Inc.(c)

      2,441,978        73,820,995  

 

  

Communications Equipment–1.04%

 

Motorola Solutions, Inc.

      468,333        100,078,079  

 

  

Construction Materials–1.28%

 

Vulcan Materials Co.

      720,329        124,105,483  

 

  

Consumer Finance–1.73%

 

American Express Co.

      958,969        167,541,474  

 

  

Data Processing & Outsourced Services–1.92%

 

Fiserv, Inc.(b)

      1,398,142        136,906,065  

 

  

PayPal Holdings, Inc.(b)

      547,763        48,164,800  

 

  
        185,070,865  

 

  

Distillers & Vintners–0.69%

 

Constellation Brands, Inc., Class A

      271,832        66,895,137  

 

  

Diversified Banks–1.49%

 

JPMorgan Chase & Co.

      1,210,121        144,440,043  

 

  

Electric Utilities–1.91%

 

FirstEnergy Corp.

      4,255,479        184,304,795  

 

  

Electrical Components & Equipment–0.26%

 

Rockwell Automation, Inc.

      98,622        24,918,821  

 

  
     Shares      Value  

 

  

Environmental & Facilities Services–0.71%

 

Waste Connections, Inc.

      498,740      $      68,811,157  

 

  

Financial Exchanges & Data–1.26%

 

Intercontinental Exchange, Inc.

      1,053,209        121,972,134  

 

  

Food Distributors–1.06%

 

Sysco Corp.

      1,199,226        102,509,838  

 

  

General Merchandise Stores–1.41%

 

Target Corp.

      595,792        136,227,841  

 

  

Health Care Facilities–2.14%

 

HCA Healthcare, Inc.

      655,507        140,639,027  

 

  

Tenet Healthcare Corp.(b)

      914,112        66,282,261  

 

  
        206,921,288  

 

  

Health Care Services–2.16%

 

CVS Health Corp.

      2,173,068        208,897,027  

 

  

Health Care Supplies–1.12%

 

Cooper Cos., Inc. (The)

      298,526        107,779,827  

 

  

Health Care Technology–0.26%

 

Doximity, Inc., Class A(b)(c)

      632,509        25,218,134  

 

  

Home Improvement Retail–0.27%

 

Floor & Decor Holdings, Inc., Class A(b)

      330,777        26,369,542  

 

  

Homebuilding–0.74%

 

D.R. Horton, Inc.

      1,024,972        71,327,801  

 

  

Hotels, Resorts & Cruise Lines–1.26%

 

Airbnb, Inc., Class A(b)

      792,638        121,440,068  

 

  

Household Products–3.16%

 

Procter & Gamble Co. (The)

      1,902,042        305,372,843  

 

  

Industrial Conglomerates–0.27%

 

Honeywell International, Inc.

      135,282        26,178,420  

 

  

Industrial Machinery–1.47%

 

Otis Worldwide Corp.

      1,945,763        141,729,377  

 

  

Industrial REITs–3.06%

 

Prologis, Inc.

      1,844,539        295,661,156  

 

  

Integrated Oil & Gas–1.96%

 

Exxon Mobil Corp.

      2,224,662        189,652,435  

 

  

Integrated Telecommunication Services–1.54%

 

Verizon Communications, Inc.

      3,206,005        148,438,032  

 

  

Interactive Media & Services–3.33%

 

Alphabet, Inc., Class A(b)

      140,863        321,476,130  

 

  

Internet & Direct Marketing Retail–4.74%

 

Amazon.com, Inc.(b)

      184,119        457,651,710  

 

  

IT Consulting & Other Services–1.60%

 

Accenture PLC, Class A

      431,279        129,538,961  

 

  

Amdocs Ltd.

      320,160        25,513,550  

 

  
        155,052,511  

 

  
 

 

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

 

5   Invesco Main Street Fund®

     Shares      Value  

 

  

Life Sciences Tools & Services–0.90%

 

Avantor, Inc.(b)

      2,729,764      $     87,024,876  

 

  

Managed Health Care–2.91%

      

UnitedHealth Group, Inc.

      552,616        281,032,867  

 

  

Movies & Entertainment–0.22%

      

Warner Music Group Corp., Class A

      727,762        21,665,475  

 

  

Oil & Gas Exploration & Production–0.84%

 

APA Corp.

      1,977,205        80,927,001  

 

  

Oil & Gas Storage & Transportation–1.31%

 

Cheniere Energy, Inc.

      563,582        76,540,072  

 

  

Magellan Midstream Partners L.P.

      1,022,836        49,556,404  

 

  
        126,096,476  

 

  

Other Diversified Financial Services–1.81%

 

Equitable Holdings, Inc.

      6,051,948        174,477,661  

 

  

Packaged Foods & Meats–0.93%

      

Mondelez International, Inc., Class A

      1,391,114        89,699,031  

 

  

Personal Products–0.10%

      

Coty, Inc., Class A(b)

      1,157,480        9,387,163  

 

  

Pharmaceuticals–6.11%

      

AstraZeneca PLC, ADR (United Kingdom)(c)

      2,983,123        198,079,367  

 

  

Bayer AG (Germany)

      1,034,409        68,180,702  

 

  

Eli Lilly and Co.

      847,692        247,636,264  

 

  

Johnson & Johnson

      422,474        76,239,658  

 

  
        590,135,991  

 

  

Property & Casualty Insurance–1.36%

 

Allstate Corp. (The)

      1,041,573        131,800,647  

 

  

Railroads–1.08%

      

Union Pacific Corp.

      445,219        104,310,360  

 

  

Regional Banks–2.76%

      

First Citizens BancShares, Inc., Class A(c)

      165,509        105,823,144  

 

  

Signature Bank

      386,940        93,736,215  

 

  

SVB Financial Group(b)

      136,803        66,710,615  

 

  
        266,269,974  

 

  

Research & Consulting Services–0.41%

 

TransUnion

      457,194        40,013,619  

 

  

Semiconductor Equipment–1.21%

      

Applied Materials, Inc.

      1,058,827        116,841,559  

 

  

Semiconductors–2.59%

      

Advanced Micro Devices, Inc.(b)

      1,202,587        102,845,240  

 

  

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

     Shares      Value  

 

  

Semiconductors–(continued)

 

QUALCOMM, Inc.

      1,053,721      $    147,194,287  

 

  
        250,039,527  

 

  

Soft Drinks–1.19%

 

Coca-Cola Co. (The)

      1,784,236        115,279,488  

 

  

Systems Software–9.81%

 

Crowdstrike Holdings, Inc., Class A(b)

      115,979        23,051,986  

 

  

Microsoft Corp.

      2,345,404        650,896,519  

 

  

ServiceNow, Inc.(b)

      148,134        70,822,865  

 

  

VMware, Inc., Class A

      1,875,261        202,603,199  

 

  
        947,374,569  

 

  

Technology Hardware, Storage & Peripherals–5.02%

 

Apple, Inc.

      3,073,719        484,571,800  

 

  

Thrifts & Mortgage Finance–0.45%

 

Rocket Cos., Inc., Class A

      4,925,187        43,587,905  

 

  

Total Common Stocks & Other Equity Interests
(Cost $7,540,563,197)

 

      9,548,900,966  

 

  

Money Market Funds–0.82%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)

      27,544,194        27,544,194  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 0.29%(d)(e)

      20,024,580        20,020,576  

 

  

Invesco Treasury Portfolio, Institutional Class, 0.23%(d)(e)

      31,479,079        31,479,079  

 

  

Total Money Market Funds (Cost $79,043,133)

 

      79,043,849  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.66%
(Cost $7,619,606,330)

 

      9,627,944,815  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–0.94%

      

Invesco Private Government Fund, 0.40%(d)(e)(f)

      27,307,010        27,307,010  

 

  

Invesco Private Prime Fund, 0.35%(d)(e)(f)

      63,716,356        63,716,356  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $91,022,997)

 

      91,023,366  

 

  

TOTAL INVESTMENTS IN SECURITIES-100.60%
(Cost $7,710,629,327)

 

      9,718,968,181  

 

  

OTHER ASSETS LESS LIABILITIES-(0.60)%

 

      (58,122,555 ) 

 

  

NET ASSETS–100.00%

       $ 9,660,845,626  

 

  
 

 

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

 

6   Invesco Main Street Fund®

Notes to Schedule of Investments:

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2022.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2022.

 

     Value
October 31, 2021		    

Purchases

at Cost

    

Proceeds

from Sales

     Change in
Unrealized
Appreciation		    

Realized

Gain

(Loss)

    

Value

April 30, 2022

     Dividend Income  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     $ 2,916,163       $ 191,407,532     $ (166,779,501 )        $ -             $ -            $ 27,544,194             $    2,980       

Invesco Liquid Assets Portfolio, Institutional Class

     2,916,554         136,719,666       (119,609,552 )      716           (6,808)           20,020,576         4,532       

Invesco Treasury Portfolio, Institutional Class

     3,332,758         218,751,464       (190,605,143 )      -           -            31,479,079         4,825       
Investments Purchased with Cash Collateral from Securities on Loan:                                                        

Invesco Private Government Fund

     54,353,000         553,648,924       (580,694,914 )      -           -            27,307,010         23,285*      

Invesco Private Prime Fund

     126,823,666         999,902,506       (1,062,984,755 )      368           (25,429)           63,716,356         72,619*      

Total

     $ 190,342,141       $ 2,100,430,092     $ (2,120,673,865 )        $ 1,084             $ (32,237)           $ 170,067,215             $108,241       

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f) 

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

 

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2022

 

Information Technology

        25.20 %

Health Care

        16.48

Consumer Discretionary

        11.46

Financials

        10.87

Industrials

        10.50

Consumer Staples

        7.13

Communication Services

        6.07

Energy

        4.11

Real Estate

        3.06

Materials

        2.05

Utilities

        1.91

Money Market Funds Plus Other Assets Less Liabilities

        1.16

    

 

 

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

 

7   Invesco Main Street Fund®

Statement of Assets and Liabilities

April 30, 2022

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value (Cost $7,540,563,197)*

    $ 9,548,900,966  

 

  

Investments in affiliated money market funds, at value (Cost $170,066,130)

      170,067,215  

 

  

Cash

      3,000,000  

 

  

Foreign currencies, at value (Cost $297)

      281  

 

  

Receivable for:

   

Investments sold

      54,607,612  

 

  

Fund shares sold

      3,346,199  

 

  

Dividends

      8,940,458  

 

  

Investment for trustee deferred compensation and retirement plans

      869,393  

 

  

Other assets

      326,783  

 

  

Total assets

      9,790,058,907  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      26,518,032  

 

  

Fund shares reacquired

      6,550,435  

 

  

Collateral upon return of securities loaned

      91,022,997  

 

  

Accrued fees to affiliates

      3,907,573  

 

  

Accrued other operating expenses

      344,851  

 

  

Trustee deferred compensation and retirement plans

      869,393  

 

  

Total liabilities

      129,213,281  

 

  

Net assets applicable to shares outstanding

    $ 9,660,845,626  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 7,283,346,736  

 

  

Distributable earnings

      2,377,498,890  

 

  
   $ 9,660,845,626  

 

  

Net Assets:

   

Class A

    $ 8,244,554,556  

 

  

Class C

    $ 243,393,580  

 

  

Class R

    $ 254,720,635  

 

  

Class Y

    $ 493,701,402  

 

  

Class R5

    $ 10,636  

 

  

Class R6

    $ 424,464,817  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      169,990,956  

 

  

Class C

      5,567,325  

 

  

Class R

      5,436,160  

 

  

Class Y

      10,273,169  

 

  

Class R5

      218  

 

  

Class R6

      8,835,361  

 

  

Class A:

   

Net asset value per share

    $ 48.50  

 

  

Maximum offering price per share
(Net asset value of $48.50 ÷ 94.50%)

    $ 51.32  

 

  

Class C:

   

Net asset value and offering price per share

    $ 43.72  

 

  

Class R:

   

Net asset value and offering price per share

    $ 46.86  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 48.06  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 48.79  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 48.04  

 

  

 

*

At April 30, 2022, securities with an aggregate value of $85,413,509 were on loan to brokers.

 

 

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

 

8   Invesco Main Street Fund®

Statement of Operations

For the six months ended April 30, 2022

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $34,124)

    $ 73,163,874  

 

  

Dividends from affiliated money market funds (includes securities lending income of $431,837)

      444,174  

 

  

Total investment income

      73,608,048  

 

  

Expenses:

   

Advisory fees

      24,127,883  

 

  

Administrative services fees

      770,639  

 

  

Custodian fees

      28,468  

 

  

Distribution fees:

   

Class A

      10,619,417  

 

  

Class C

      1,426,378  

 

  

Class R

      709,520  

 

  

Transfer agent fees – A, C, R and Y

      5,117,785  

 

  

Transfer agent fees – R5

      2  

 

  

Transfer agent fees – R6

      85,598  

 

  

Trustees’ and officers’ fees and benefits

      44,729  

 

  

Registration and filing fees

      126,689  

 

  

Professional services fees

      56,189  

 

  

Other

      (380,951 ) 

 

  

Total expenses

      42,732,346  

 

  

Less: Fees waived and/or expense offset arrangement(s)

      (9,334 ) 

 

  

Net expenses

      42,723,012  

 

  

Net investment income

      30,885,036  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      407,030,779  

 

  

Affiliated investment securities

      (32,237 ) 

 

  

Foreign currencies

      54,385  

 

  
     407,052,927  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      (1,812,457,546 ) 

 

  

Affiliated investment securities

      1,084  

 

  

Foreign currencies

      (14 ) 

 

  
     (1,812,456,476 ) 

 

  

Net realized and unrealized gain (loss)

      (1,405,403,549 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (1,374,518,513 ) 

 

  

 

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

 

9   Invesco Main Street Fund®

Statement of Changes in Net Assets

For the six months ended April 30, 2022 and the year ended October 31, 2021

(Unaudited)

 

    

April 30,

2022

    

October 31,

2021

  

 

  

Operations:

     

Net investment income

    $ 30,885,036     $ 62,599,186  

 

  

Net realized gain

      407,052,927       1,852,926,404  

 

  

Change in net unrealized appreciation (depreciation)

      (1,812,456,476 )      1,554,573,817  

 

  

Net increase (decrease) in net assets resulting from operations

      (1,374,518,513 )      3,470,099,407  

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (1,603,979,647 )      (257,779,861 ) 

 

  

Class C

      (52,532,692 )      (10,580,645 ) 

 

  

Class R

      (49,150,971 )      (7,703,892 ) 

 

  

Class Y

      (100,034,120 )      (15,724,229 ) 

 

  

Class R5

      (2,431 )      (376 ) 

 

  

Class R6

      (90,806,951 )      (15,515,693 ) 

 

  

Total distributions from distributable earnings

      (1,896,506,812 )      (307,304,696 ) 

 

  

Share transactions–net:

     

Class A

      1,210,323,208       (373,051,867 ) 

 

  

Class C

      25,154,208       (82,556,465 ) 

 

  

Class R

      49,084,419       (6,867,416 ) 

 

  

Class Y

      66,834,829       (6,957,858 ) 

 

  

Class R6

      36,429,449       (53,575,406 ) 

 

  

Net increase (decrease) in net assets resulting from share transactions

      1,387,826,113       (523,009,012 ) 

 

  

Net increase (decrease) in net assets

      (1,883,199,212 )      2,639,785,699  

 

  

Net assets:

     

Beginning of period

      11,544,044,838       8,904,259,139  

 

  

End of period

    $ 9,660,845,626     $ 11,544,044,838  

 

  

 

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

 

10   Invesco Main Street Fund®

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income

(loss)(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

  

Total

return(b)

  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with

fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed(c)

  

Ratio of net

investment

income

(loss)

to average

net assets

  

Portfolio

turnover (d)

Class A

                            

Six months ended 04/30/22

     $66.18       $0.16       $(6.92 )      $(6.76 )      $(0.38 )      $(10.54 )      $(10.92 )      $48.50       (12.38 )%(e)      $8,244,555       0.78 %(e)(f)      0.78 %(e)(f)      0.57 %(e)(f)      19 % 

Year ended 10/31/21

     48.70       0.35       18.82       19.17       (0.44 )      (1.25 )      (1.69 )      66.18       40.26 (e)      9,808,667       0.82 (e)      0.82 (e)      0.58 (e)      47  

Year ended 10/31/20

     49.26       0.44       3.08       3.52       (0.43 )      (3.65 )      (4.08 )      48.70       7.38 (e)      7,502,604       0.83 (e)      0.83 (e)      0.93 (e)      37  

Two months ended 10/31/19

     48.16       0.07       1.03       1.10       –       –       –       49.26       2.28       7,681,783       0.85 (f)      0.85 (f)      0.81 (f)      7  

Year ended 08/31/19

     54.31       0.49       1.14       1.63       (0.49 )      (7.29 )      (7.78 )      48.16       5.14       7,625,507       0.88       0.88       1.03       49  

Year ended 08/31/18

     52.61       0.45       5.08       5.53       (0.55 )      (3.28 )      (3.83 )      54.31       10.99       7,579,158       0.90       0.90       0.87       56  

Year ended 08/31/17

     46.57       0.53       6.90       7.43       (0.51 )      (0.88 )      (1.39 )      52.61       16.27       7,436,792       0.93       0.93       1.08       40  

Class C

                            

Six months ended 04/30/22

     60.54       (0.05 )      (6.23 )      (6.28 )      –       (10.54 )      (10.54 )      43.72       (12.69 )      243,394       1.55 (f)      1.55 (f)      (0.20 )(f)      19  

Year ended 10/31/21

     44.96       (0.10 )      17.31       17.21       (0.38 )      (1.25 )      (1.63 )      60.54       39.19       307,346       1.59       1.59       (0.19 )      47  

Year ended 10/31/20

     45.99       0.07       2.86       2.93       (0.31 )      (3.65 )      (3.96 )      44.96       6.55       300,125       1.60       1.60       0.16       37  

Two months ended 10/31/19

     45.03       0.00       0.96       0.96       –       –       –       45.99       2.13       343,918       1.62 (f)      1.62 (f)      0.04 (f)      7  

Year ended 08/31/19

     51.26       0.11       1.06       1.17       (0.11 )      (7.29 )      (7.40 )      45.03       4.34       350,276       1.65       1.65       0.26       49  

Year ended 08/31/18

     49.85       0.05       4.81       4.86       (0.17 )      (3.28 )      (3.45 )      51.26       10.16       810,071       1.67       1.67       0.11       56  

Year ended 08/31/17

     44.24       0.15       6.54       6.69       (0.20 )      (0.88 )      (1.08 )      49.85       15.39       826,928       1.68       1.68       0.32       40  

Class R

                            

Six months ended 04/30/22

     64.21       0.08       (6.67 )      (6.59 )      (0.22 )      (10.54 )      (10.76 )      46.86       (12.47 )      254,721       1.05 (f)      1.05 (f)      0.30 (f)      19  

Year ended 10/31/21

     47.40       0.18       18.30       18.48       (0.42 )      (1.25 )      (1.67 )      64.21       39.88       291,450       1.09       1.09       0.31       47  

Year ended 10/31/20

     48.13       0.30       3.00       3.30       (0.38 )      (3.65 )      (4.03 )      47.40       7.09       219,954       1.10       1.10       0.66       37  

Two months ended 10/31/19

     47.08       0.04       1.01       1.05       –       –       –       48.13       2.23       221,335       1.12 (f)      1.12 (f)      0.54 (f)      7  

Year ended 08/31/19

     53.26       0.35       1.11       1.46       (0.35 )      (7.29 )      (7.64 )      47.08       4.84       218,620       1.15       1.15       0.76       49  

Year ended 08/31/18

     51.70       0.31       4.98       5.29       (0.45 )      (3.28 )      (3.73 )      53.26       10.70       223,733       1.17       1.17       0.61       56  

Year ended 08/31/17

     45.82       0.40       6.77       7.17       (0.41 )      (0.88 )      (1.29 )      51.70       15.99       189,337       1.18       1.18       0.82       40  

Class Y

                            

Six months ended 04/30/22

     65.75       0.22       (6.85 )      (6.63 )      (0.52 )      (10.54 )      (11.06 )      48.06       (12.27 )      493,701       0.55 (f)      0.55 (f)      0.80 (f)      19  

Year ended 10/31/21

     48.31       0.48       18.67       19.15       (0.46 )      (1.25 )      (1.71 )      65.75       40.57       596,575       0.59       0.59       0.81       47  

Year ended 10/31/20

     48.82       0.54       3.07       3.61       (0.47 )      (3.65 )      (4.12 )      48.31       7.64       443,001       0.60       0.60       1.16       37  

Two months ended 10/31/19

     47.72       0.08       1.02       1.10       –       –       –       48.82       2.31       611,287       0.62 (f)      0.62 (f)      1.04 (f)      7  

Year ended 08/31/19

     53.90       0.59       1.13       1.72       (0.61 )      (7.29 )      (7.90 )      47.72       5.37       590,781       0.65       0.65       1.26       49  

Year ended 08/31/18

     52.25       0.57       5.03       5.60       (0.67 )      (3.28 )      (3.95 )      53.90       11.25       820,422       0.67       0.67       1.10       56  

Year ended 08/31/17

     46.26       0.64       6.85       7.49       (0.62 )      (0.88 )      (1.50 )      52.25       16.55       778,910       0.69       0.69       1.32       40  

Class R5

                            

Six months ended 04/30/22

     66.63       0.24       (6.95 )      (6.71 )      (0.59 )      (10.54 )      (11.13 )      48.79       (12.24 )      11       0.48 (f)      0.48 (f)      0.87 (f)      19  

Year ended 10/31/21

     48.89       0.55       18.91       19.46       (0.47 )      (1.25 )      (1.72 )      66.63       40.73       15       0.48       0.48       0.92       47  

Year ended 10/31/20

     49.33       0.61       3.08       3.69       (0.48 )      (3.65 )      (4.13 )      48.89       7.75       11       0.48       0.48       1.28       37  

Two months ended 10/31/19

     48.20       0.09       1.04       1.13       –       –       –       49.33       2.34       11       0.52 (f)      0.52 (f)      1.14 (f)      7  

Period ended 08/31/19(g)

     45.79       0.18       2.23       2.41       –       –       –       48.20       5.26       11       0.54 (f)      0.54 (f)      1.37 (f)      49  

Class R6

                            

Six months ended 04/30/22

     65.78       0.24       (6.85 )      (6.61 )      (0.59 )      (10.54 )      (11.13 )      48.04       (12.25 )      424,465       0.48 (f)      0.48 (f)      0.87 (f)      19  

Year ended 10/31/21

     48.28       0.54       18.68       19.22       (0.47 )      (1.25 )      (1.72 )      65.78       40.75       539,993       0.48       0.48       0.92       47  

Year ended 10/31/20

     48.77       0.60       3.05       3.65       (0.49 )      (3.65 )      (4.14 )      48.28       7.75       438,565       0.48       0.48       1.28       37  

Two months ended 10/31/19

     47.66       0.09       1.02       1.11       –       –       –       48.77       2.33       616,482       0.48 (f)      0.48 (f)      1.18 (f)      7  

Year ended 08/31/19

     53.87       0.66       1.12       1.78       (0.70 )      (7.29 )      (7.99 )      47.66       5.55       621,207       0.49       0.49       1.42       49  

Year ended 08/31/18

     52.22       0.66       5.03       5.69       (0.76 )      (3.28 )      (4.04 )      53.87       11.45       720,854       0.50       0.50       1.27       56  

Year ended 08/31/17

     46.25       0.73       6.83       7.56       (0.71 )      (0.88 )      (1.59 )      52.22       16.76       756,378       0.50       0.50       1.49       40  

 

(a) 

Calculated using average shares outstanding.

(b) 

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c) 

Does not include estimated acquired fund fees from underlying funds of 0.00% for the two months ended October 31, 2019 and the years ended August 31, 2019, 2018 and 2017, respectively.

(d) 

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

(e) 

The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.23% for the six months ended April 30, 2022 and the years ended October 31, 2021 and 2020, respectively.

(f) 

Annualized.

(g) 

Commencement date after the close of business on May 24, 2019.

 

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

 

11   Invesco Main Street Fund®

Notes to Financial Statements

April 30, 2022

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Main Street Fund® (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

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

The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

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

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

A.

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

A security listed or traded on an exchange is 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 may be valued up to 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 debt securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.

 

12   Invesco Main Street 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 and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C.

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

D.

Distributions - Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

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

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

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

F.

Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

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

H.

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

I.

Securities Lending - The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the Investment Company Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

Invesco Advisers, Inc. (the “Adviser” or “Invesco”) serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon (the “BNYM”) also continues to serve as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2022, the Fund paid the Adviser $3,804 in fees for securities lending agent services.

J.

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

 

13   Invesco Main Street Fund®

foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

K.

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

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

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

L.

COVID-19 Risk - The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets*    Rate  

 

  

Up to $200 million

      0.650%  

 

  

Next $150 million

      0.600%  

 

  

Next $150 million

      0.550%  

 

  

Next $9.5 billion

      0.450%  

 

  

Next $10 billion

      0.430%  

 

  

 

*

The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended April 30, 2022, the effective advisory fee rate incurred by the Fund was 0.44%.

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

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2022, the Adviser waived advisory fees of $6,655.

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 six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and

 

14   Invesco Main Street Fund®

Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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 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 six months ended April 30, 2022, 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 six months ended April 30, 2022, IDI advised the Fund that IDI retained $386,991 in front-end sales commissions from the sale of Class A shares and $3,441 and $4,678 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended April 30, 2022, the Fund incurred $25,744 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2022. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1        Level 2        Level 3        Total  

 

  

Investments in Securities

                  

 

  

Common Stocks & Other Equity Interests

    $ 9,480,720,264        $ 68,180,702          $–        $ 9,548,900,966  

 

  

Money Market Funds

      79,043,849          91,023,366            –          170,067,215  

 

  

Total Investments

    $ 9,559,764,113        $ 159,204,068          $–        $ 9,718,968,181  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2022, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,679.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

 

15   Invesco Main Street Fund®

The Fund did not have a capital loss carryforward as of October 31, 2021.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2022 was $2,054,412,346 and $2,576,911,190, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $2,509,116,599  

 

  

Aggregate unrealized (depreciation) of investments

      (505,317,014 ) 

 

  

Net unrealized appreciation of investments

      $2,003,799,585  

 

  

Cost of investments for tax purposes is $7,715,168,596.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     April 30, 2022(a)     October 31, 2021  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      3,186,081     $ 178,900,137       6,004,663     $ 349,912,527  

 

  

Class C

      355,305       18,003,721       707,922       37,816,164  

 

  

Class R

      543,953       29,273,832       663,675       37,681,412  

 

  

Class Y

      981,679       55,560,550       1,837,051       106,455,791  

 

  

Class R6

      764,005       43,003,357       1,564,589       91,434,562  

 

  

Issued as reinvestment of dividends:

         

Class A

      27,281,275       1,522,295,227       4,665,147       245,246,811  

 

  

Class C

      1,018,369       51,366,549       213,677       10,346,263  

 

  

Class R

      906,909       48,936,808       149,808       7,659,671  

 

  

Class Y

      1,610,238       88,949,527       275,171       14,344,649  

 

  

Class R6

      1,610,402       88,910,299       294,840       15,361,145  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      306,183       16,677,728       1,305,710       72,256,444  

 

  

Class C

      (338,606 )      (16,677,728 )      (1,419,448 )      (72,256,444 ) 

 

  

Reacquired:

         

Class A

      (9,003,551 )      (507,549,884 )      (17,812,991 )      (1,040,467,649 ) 

 

  

Class C

      (544,184 )      (27,538,334 )      (1,100,520 )      (58,462,448 ) 

 

  

Class R

      (553,462 )      (29,126,221 )      (914,632 )      (52,208,499 ) 

 

  

Class Y

      (1,392,283 )      (77,675,248 )      (2,209,441 )      (127,758,298 ) 

 

  

Class R6

      (1,748,691 )      (95,484,207 )      (2,732,621 )      (160,371,113 ) 

 

  

Net increase (decrease) in share activity

      24,983,622     $ 1,387,826,113       (8,507,400 )    $ (523,009,012 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 13% 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.

 

16   Invesco Main Street 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, 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 November 1, 2021 through April 30, 2022.

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 or contingent deferred sales charges on redemptions, 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.

 

         

ACTUAL

  

HYPOTHETICAL

(5% annual return before
expenses)

     
     Beginning
    Account Value    
(11/01/21)		   Ending
    Account Value    
(04/30/22)1		   Expenses
      Paid During      
Period2		   Ending
    Account Value    
(04/30/22)		   Expenses
    Paid During    
Period2		  

      Annualized      
Expense

Ratio

Class A

   $1,000.00   $876.20   $3.63   $1,020.93   $3.91   0.78%

Class C

     1,000.00     873.10     7.20     1,017.11     7.75   1.55    

Class R

     1,000.00     875.20     4.88     1,019.59     5.26   1.05    

Class Y

     1,000.00     877.30     2.56     1,022.07     2.76   0.55    

Class R5

     1,000.00     877.60     2.23     1,022.41     2.41   0.48    

Class R6

     1,000.00     877.50     2.23     1,022.41     2.41   0.48    

 

1 

The actual ending account value is based on the actual total return of the Fund for the period November 1, 2021 through April 30, 2022, 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.

 

17   Invesco Main Street Fund®

 

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Invesco mailing information

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

 

 

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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    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/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

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

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

 

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SEC file number(s): 811-01424 and 002-25469                   Invesco Distributors, Inc.    O-MST-SAR-1                                         

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Semiannual Report to Shareholders   April 30, 2022

Invesco Main Street All Cap Fund®

Nasdaq:

A: OMSOX ∎ C: OMSCX ∎ R: OMSNX ∎ Y: OMSYX ∎ R5: MSAZX ∎ R6: IOAPX

 

    

   
2   Fund Performance
4   Liquidity Risk Management Program
5   Schedule of Investments
8   Financial Statements
11   Financial Highlights
12   Notes to Financial Statements
17   Fund Expenses

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

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 Performance

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 10/31/21 to 4/30/22, 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

     -11.11 % 

Class C Shares

     -11.44  

Class R Shares

     -11.20  

Class Y Shares

     -10.99  

Class R5 Shares

     -10.96  

Class R6 Shares

     -10.95  

Russell 3000 Index▼

     -11.75  

Source(s): ▼RIMES Technologies Corp.

  

The Russell 3000® Index is an unmanaged index considered representative of the US stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.

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

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

 

 

 

 

 

For more information about your Fund

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

        

 

 

2   Invesco Main Street All Cap Fund®

    

    

    

 

 

Average Annual Total Returns

 

As of 4/30/22, including maximum applicable sales charges

 

Class A Shares

        

Inception (9/25/00)

     7.71 % 

10 Years

     10.13  

  5 Years

     10.04  

  1 Year

     -9.59  

Class C Shares

        

Inception (9/25/00)

     7.70 % 

10 Years

     10.09  

  5 Years

     10.47  

  1 Year

     -5.87  

Class R Shares

        

Inception (3/1/01)

     7.93 % 

10 Years

     10.47  

  5 Years

     11.01  

  1 Year

     -4.61  

Class Y Shares

        

Inception (9/25/00)

     8.33 % 

10 Years

     11.03  

  5 Years

     11.55  

  1 Year

     -4.14  

Class R5 Shares

        

10 Years

     10.86 % 

  5 Years

     11.50  

  1 Year

     -4.08  

Class R6 Shares

        

10 Years

     10.87 % 

  5 Years

     11.52  

  1 Year

     -4.04  

Effective May 24, 2019, Class A, Class C, Class R and Class Y shares of the Oppenheimer Main Street All Cap Fund®, (the predecessor fund), were reorganized into Class A, Class C, Class R and Class Y shares, respectively, of the Invesco Oppenheimer Main Street All Cap Fund®.

Note: The Fund was subsequently renamed the Invesco Main Street All Cap Fund® (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R and Class Y shares are those for Class A, Class C, Class R and Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    Class R5 shares incepted on May 24, 2019. Performance shown on and 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 R6 shares incepted on May 24, 2019. Performance shown on and 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.

    The performance data quoted represent past performance and cannot guarantee 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 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.

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

        

 

 

3   Invesco Main Street All Cap Fund®

 

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 21-23, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Fund and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

The Report stated, in relevant part, that during the Program Reporting Period:

∎

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎

The Fund’s investment strategy remained appropriate for an open-end fund;

∎

The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎

The Fund did not breach the 15% limit on Illiquid Investments; and

∎

The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

 

4   Invesco Main Street All Cap Fund®

Schedule of Investments(a)

April 30, 2022

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–97.84%

 

Aerospace & Defense–1.63%

 

Raytheon Technologies Corp.

      207,316      $      19,676,362  

 

  

Agricultural & Farm Machinery–1.04%

 

Deere & Co.

      33,233        12,547,119  

 

  

Air Freight & Logistics–1.44%

 

United Parcel Service, Inc., Class B

      96,958        17,450,501  

 

  

Airlines–0.46%

 

Spirit Airlines, Inc.(b)

      234,996        5,548,256  

 

  

Apparel Retail–0.86%

 

Ross Stores, Inc.

      104,275        10,403,517  

 

  

Application Software–1.84%

 

Consensus Cloud Solutions, Inc.(b)

      16,641        877,313  

 

  

Q2 Holdings, Inc.(b)

      70,778        3,661,346  

 

  

salesforce.com, inc.(b)

      67,984        11,961,105  

 

  

Workday, Inc., Class A(b)

      28,010        5,789,667  

 

  
        22,289,431  

 

  

Automobile Manufacturers–1.87%

 

General Motors Co.(b)

      298,357        11,310,714  

 

  

Tesla, Inc.(b)

      12,971        11,294,628  

 

  
        22,605,342  

 

  

Automotive Retail–0.59%

 

CarMax, Inc.(b)

      83,104        7,128,661  

 

  

Biotechnology–0.50%

 

Seagen, Inc.(b)

      46,533        6,096,288  

 

  

Construction Materials–0.88%

 

Vulcan Materials Co.

      61,784        10,644,765  

 

  

Consumer Finance–0.95%

 

Capital One Financial Corp.

      92,611        11,541,183  

 

  

Data Processing & Outsourced Services–3.09%

 

Mastercard, Inc., Class A

      102,848        37,372,906  

 

  

Diversified Banks–2.00%

 

JPMorgan Chase & Co.

      202,852        24,212,415  

 

  

Electric Utilities–1.48%

 

Avangrid, Inc.(c)

      121,219        5,376,062  

 

  

PPL Corp.

      440,864        12,480,860  

 

  
        17,856,922  

 

  

Electrical Components & Equipment–0.89%

 

Hubbell, Inc.

      55,273        10,798,133  

 

  

Financial Exchanges & Data–1.54%

 

Intercontinental Exchange, Inc.

      160,628        18,602,329  

 

  

Gas Utilities–1.43%

 

ONE Gas, Inc.

      123,657        10,432,941  

 

  

Suburban Propane Partners L.P.

      406,908        6,836,054  

 

  
        17,268,995  

 

  
     Shares      Value  

 

  

Health Care Equipment–1.42%

 

Boston Scientific Corp.(b)

      252,675      $      10,640,144  

 

  

DexCom, Inc.(b)

      15,988        6,532,377  

 

  
        17,172,521  

 

  

Health Care Facilities–2.29%

 

HCA Healthcare, Inc.

      55,302        11,865,044  

 

  

Tenet Healthcare Corp.(b)

      219,071        15,884,838  

 

  
        27,749,882  

 

  

Homebuilding–0.78%

 

D.R. Horton, Inc.

      135,064        9,399,104  

 

  

Hotels, Resorts & Cruise Lines–0.56%

 

Airbnb, Inc., Class A(b)

      44,562        6,827,344  

 

  

Household Products–1.74%

 

Procter & Gamble Co. (The)

      131,440        21,102,692  

 

  

Human Resource & Employment Services–1.13%

 

Korn Ferry

      222,992        13,700,628  

 

  

Hypermarkets & Super Centers–1.53%

 

Walmart, Inc.

      120,851        18,488,995  

 

  

Industrial Conglomerates–0.80%

 

Honeywell International, Inc.

      50,202        9,714,589  

 

  

Industrial Machinery–0.79%

 

Otis Worldwide Corp.

      131,345        9,567,170  

 

  

Industrial REITs–2.53%

 

Duke Realty Corp.

      162,083        8,874,044  

 

  

Prologis, Inc.

      135,357        21,696,374  

 

  
        30,570,418  

 

  

Insurance Brokers–1.37%

 

Arthur J. Gallagher & Co.

      98,356        16,572,002  

 

  

Integrated Oil & Gas–3.68%

 

Exxon Mobil Corp.

      522,786        44,567,507  

 

  

Integrated Telecommunication Services–1.80%

 

Verizon Communications, Inc.

      469,599        21,742,434  

 

  

Interactive Home Entertainment–0.95%

 

Zynga, Inc., Class A(b)(c)

      1,396,331        11,547,657  

 

  

Interactive Media & Services–6.17%

 

Alphabet, Inc., Class A(b)

      27,910        63,695,923  

 

  

Bumble, Inc., Class A(b)

      52,849        1,267,847  

 

  

Snap, Inc., Class A(b)(c)

      186,158        5,298,057  

 

  

Ziff Davis, Inc.(b)(c)

      49,925        4,411,373  

 

  
        74,673,200  

 

  

Internet & Direct Marketing Retail–4.66%

 

Amazon.com, Inc.(b)

      22,682        56,379,060  

 

  

Internet Services & Infrastructure–0.10%

 

Snowflake, Inc., Class A(b)

      6,754        1,157,906  

 

  
 

 

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

 

5   Invesco Main Street All Cap Fund®

     Shares      Value  

 

  

Investment Banking & Brokerage–1.27%

 

Raymond James Financial, Inc.

      157,905      $      15,389,421  

 

  

Life Sciences Tools & Services–0.47%

 

Avantor, Inc.(b)

      179,612        5,726,031  

 

  

Managed Health Care–3.65%

 

Molina Healthcare, Inc.(b)

      33,873        10,617,492  

 

  

UnitedHealth Group, Inc.

      66,042        33,585,659  

 

  
        44,203,151  

 

  

Office REITs–0.53%

 

Alexandria Real Estate Equities, Inc.

      35,153        6,403,470  

 

  

Oil & Gas Exploration & Production–1.68%

 

APA Corp.

      158,387        6,482,780  

 

  

Chesapeake Energy Corp.(c)

      111,504        9,145,558  

 

  

CNX Resources Corp.(b)

      228,400        4,693,620  

 

  
        20,321,958  

 

  

Pharmaceuticals–6.07%

 

AstraZeneca PLC, ADR (United Kingdom)

      189,167        12,560,689  

 

  

Catalent, Inc.(b)

      65,086        5,894,188  

 

  

Eli Lilly and Co.

      71,123        20,777,162  

 

  

Johnson & Johnson

      189,468        34,191,395  

 

  
        73,423,434  

 

  

Property & Casualty Insurance–1.48%

 

Allstate Corp. (The)

      141,214        17,869,220  

 

  

Railroads–0.98%

 

Union Pacific Corp.

      50,850        11,913,647  

 

  

Regional Banks–3.38%

 

East West Bancorp, Inc.

      157,114        11,202,228  

 

  

First Citizens BancShares, Inc.,
Class A(c)

      14,079        9,001,831  

 

  

Signature Bank

      85,443        20,698,567  

 

  
        40,902,626  

 

  

Semiconductor Equipment–1.29%

 

Applied Materials, Inc.

      140,892        15,547,432  

 

  

Semiconductors–3.84%

 

Advanced Micro Devices, Inc.(b)

      143,308        12,255,700  

 

  

NVIDIA Corp.

      102,361        18,984,895  

 

  

QUALCOMM, Inc.

      108,757        15,192,265  

 

  
        46,432,860  

 

  

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

     Shares      Value  

 

  

Soft Drinks–1.69%

 

Coca-Cola Co. (The)

      316,080      $      20,421,929  

 

  

Specialty Chemicals–0.92%

 

Eastman Chemical Co.

      108,081        11,096,676  

 

  

Specialty Stores–0.80%

 

Tractor Supply Co.

      48,110        9,691,760  

 

  

Systems Software–9.91%

 

Microsoft Corp.

      293,215        81,373,027  

 

  

VMware, Inc., Class A

      356,400        38,505,456  

 

  
        119,878,483  

 

  

Technology Hardware, Storage & Peripherals–5.09%

 

Apple, Inc.

      390,339        61,536,943  

 

  

Total Common Stocks & Other Equity Interests
(Cost $878,226,213)

 

      1,183,735,275  

 

  

Money Market Funds–2.46%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)

      10,354,948        10,354,948  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 0.29%(d)(e)

      7,517,257        7,515,753  

 

  

Invesco Treasury Portfolio, Institutional Class, 0.23%(d)(e)

      11,834,226        11,834,226  

 

  

Total Money Market Funds (Cost $29,705,040)

 

      29,704,927  

 

  

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)–100.30%
(Cost $907,931,253)

 

      1,213,440,202  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–2.02%

 

Invesco Private Government Fund, 0.40%(d)(e)(f)

      7,335,356        7,335,356  

 

  

Invesco Private Prime Fund, 0.35%(d)(e)(f)

      17,116,442        17,116,442  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $24,451,081)

 

      24,451,798  

 

  

TOTAL INVESTMENTS IN SECURITIES–102.32%
(Cost $932,382,334)

 

      1,237,892,000  

 

  

OTHER ASSETS LESS LIABILITIES–(2.32)%

 

      (28,062,831 ) 

 

  

NET ASSETS–100.00%

 

    $ 1,209,829,169  

 

  
 

 

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

 

6   Invesco Main Street All Cap Fund®

Notes to Schedule of Investments:

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2022.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2022.

 

     

Value

October 31, 2021

     

Purchases

at Cost

     

Proceeds

from Sales

     

Change in

Unrealized

Appreciation

(Depreciation)

     

Realized

Gain

(Loss)

     

Value

April 30, 2022

     

Dividend Income

  
Investments in Affiliated Money Market Funds:                                                               

Invesco Government & Agency Portfolio,

                                                               

Institutional Class

      $ 3,478,287        $ 33,804,458      $ (26,927,797)          $ -              $ -            $ 10,354,948            $ 695      

Invesco Liquid Assets Portfolio, Institutional Class

      2,605,609          24,146,042        (19,234,141)        (113)            (1,644)            7,515,753          1,405      
Invesco Treasury Portfolio, Institutional Class      3,975,185          38,633,666        (30,774,625)        -            -            11,834,226          1,536      

Investments Purchased with Cash Collateral from Securities on Loan:

                                                               

Invesco Private Government Fund

      11,226,180          97,963,368        (101,854,192)        -            -            7,335,356          5,028*      

Invesco Private Prime Fund

      26,195,898          201,119,218        (210,197,565)        717            (1,826)            17,116,442          15,467*      

Total

      $ 47,481,159        $ 395,666,752      $ (388,988,320)          $ 604              $ (3,470)            $ 54,156,725            $ 24,131      

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f) 

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

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2022

 

Information Technology

      25.15 % 

Health Care

      14.41  

Financials

      11.99  

Consumer Discretionary

      10.12  

Industrials

      9.17  

Communication Services

      8.92  

Energy

      5.36  

Consumer Staples

      4.96  

Real Estate

      3.06  

Utilities

      2.90  

Materials

      1.80  

Money Market Funds Plus Other Assets Less Liabilities

      2.16  

 

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

 

7   Invesco Main Street All Cap Fund®

Statement of Assets and Liabilities

April 30, 2022

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value (Cost $878,226,213)*

    $ 1,183,735,275  

 

  

Investments in affiliated money market funds, at value (Cost $54,156,121)

      54,156,725  

 

  

Cash

      500,000  

 

  

Receivable for:

   

Investments sold

      1,513,113  

 

  

Fund shares sold

      267,724  

 

  

Dividends

      832,765  

 

  

Investment for trustee deferred compensation and retirement plans

      164,777  

 

  

Other assets

      83,069  

 

  

Total assets

      1,241,253,448  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      5,533,801  

 

  

Fund shares reacquired

      601,510  

 

  

Collateral upon return of securities loaned

      24,451,081  

 

  

Accrued fees to affiliates

      573,713  

 

  

Accrued other operating expenses

      99,397  

 

  

Trustee deferred compensation and retirement plans

      164,777  

 

  

Total liabilities

      31,424,279  

 

  

Net assets applicable to shares outstanding

    $ 1,209,829,169  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 852,776,840  

 

  

Distributable earnings

      357,052,329  

 

  
   $ 1,209,829,169  

 

  

Net Assets:

   

Class A

    $ 1,041,729,505  

 

  

Class C

    $ 49,861,114  

 

  

Class R

    $ 51,481,099  

 

  

Class Y

    $ 63,486,997  

 

  

Class R5

    $ 9,671  

 

  

Class R6

    $ 3,260,783  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      48,300,115  

 

  

Class C

      2,660,644  

 

  

Class R

      2,491,810  

 

  

Class Y

      2,845,521  

 

  

Class R5

      446  

 

  

Class R6

      150,283  

 

  

Class A:

   

Net asset value per share

    $ 21.57  

 

  

Maximum offering price per share
(Net asset value of $21.57 ÷ 94.50%)

    $ 22.83  

 

  

Class C:

   

Net asset value and offering price per share

    $ 18.74  

 

  

Class R:

   

Net asset value and offering price per share

    $ 20.66  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 22.31  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 21.68  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 21.70  

 

  

 

*

At April 30, 2022, securities with an aggregate value of $23,297,265 were on loan to brokers.

 

 

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

 

8   Invesco Main Street All Cap Fund®

Statement of Operations

For the six months ended April 30, 2022

(Unaudited)

 

Investment income:

Dividends

    $ 10,544,955  

 

  

Dividends from affiliated money market funds (includes securities lending income of $137,130)

      140,766  

 

  

Total investment income

      10,685,721  

 

  

Expenses:

   

Advisory fees

      4,383,989  

 

  

Administrative services fees

      95,392  

 

  

Custodian fees

      2,703  

 

  

Distribution fees:

   

Class A

      1,417,936  

 

  

Class C

      282,987  

 

  

Class R

      141,984  

 

  

Transfer agent fees – A, C, R and Y

      807,248  

 

  

Transfer agent fees – R5

      2  

 

  

Transfer agent fees – R6

      543  

 

  

Trustees’ and officers’ fees and benefits

      12,911  

 

  

Registration and filing fees

      57,292  

 

  

Reports to shareholders

      3,230  

 

  

Professional services fees

      22,386  

 

  

Other

      6,886  

 

  

Total expenses

      7,235,489  

 

  

Less: Fees waived and/or expense offset arrangement(s)

      (2,605 ) 

 

  

Net expenses

      7,232,884  

 

  

Net investment income

      3,452,837  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      53,857,152  

 

  

Affiliated investment securities

      (3,470 ) 

 

  
     53,853,682  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      (209,577,415 ) 

 

  

Affiliated investment securities

      604  

 

  
     (209,576,811 ) 

 

  

Net realized and unrealized gain (loss)

      (155,723,129 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (152,270,292 ) 

 

  

 

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

 

9   Invesco Main Street All Cap Fund®

Statement of Changes in Net Assets

For the six months ended April 30, 2022 and the year ended October 31, 2021

(Unaudited)

 

    

April 30,

2022

    

October 31,

2021

  

 

  

Operations:

     

Net investment income

    $ 3,452,837     $ 1,891,534  

 

  

Net realized gain

      53,853,682       217,597,804  

 

  

Change in net unrealized appreciation (depreciation)

      (209,576,811 )      214,209,499  

 

  

Net increase (decrease) in net assets resulting from operations

      (152,270,292 )      433,698,837  

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (183,271,747 )      (9,443,275 ) 

 

  

Class C

      (9,801,181 )      (652,957 ) 

 

  

Class R

      (9,041,575 )      (482,249 ) 

 

  

Class Y

      (10,690,443 )      (520,083 ) 

 

  

Class R5

      (1,964 )      (128 ) 

 

  

Class R6

      (527,649 )      (1,102 ) 

 

  

Total distributions from distributable earnings

      (213,334,559 )      (11,099,794 ) 

 

  

Share transactions–net:

     

Class A

      126,351,682       (72,911,190 ) 

 

  

Class C

      5,951,438       (21,090,380 ) 

 

  

Class R

      7,420,995       (8,639,431 ) 

 

  

Class Y

      10,368,686       2,327,246  

 

  

Class R5

      –       (3,699 ) 

 

  

Class R6

      872,848       2,794,306  

 

  

Net increase (decrease) in net assets resulting from share transactions

      150,965,649       (97,523,148 ) 

 

  

Net increase (decrease) in net assets

      (214,639,202 )      325,075,895  

 

  

Net assets:

     

Beginning of period

      1,424,468,371       1,099,392,476  

 

  

End of period

    $ 1,209,829,169     $ 1,424,468,371  

 

  

 

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

 

10   Invesco Main Street All Cap Fund®

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income

(loss)(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

  

Total

return(b)

  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with

fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed(c)

  

Ratio of net

investment

income

(loss)

to average

net assets

  

Portfolio

turnover (d)

Class A

                            

Six months ended 04/30/22

     $28.54       $0.07       $(2.73 )      $(2.66 )      $(0.16 )      $(4.15 )      $(4.31 )      $21.57       (11.08 )%(e)      $1,041,730       1.04 %(e)(f)      1.04 %(e)(f)      0.54 %(e)(f)      19 % 

Year ended 10/31/21

     20.45       0.05       8.25       8.30       (0.11 )      (0.10 )      (0.21 )      28.54       40.84 (e)      1,229,595       1.07 (e)      1.07 (e)      0.18 (e)      35  

Year ended 10/31/20

     18.53       0.14       1.94       2.08       (0.09 )      (0.07 )      (0.16 )      20.45       11.24 (e)      938,494       1.12 (e)      1.12 (e)      0.73 (e)      28  

Three months ended 10/31/19

     18.30       0.03       0.20       0.23       –       –       –       18.53       1.26       957,529       1.14 (f)      1.14 (f)      0.73 (f)      7  

Year ended 07/31/19

     18.77       0.13       0.75       0.88       (0.07 )      (1.28 )      (1.35 )      18.30       5.84       976,093       1.13       1.13       0.73       48  

Year ended 07/31/18

     19.40       0.09       1.84       1.93       (0.18 )      (2.38 )      (2.56 )      18.77       10.55       923,741       1.13       1.14       0.50       48  

Year ended 07/31/17

     18.35       0.17       2.21       2.38       (0.20 )      (1.13 )      (1.33 )      19.40       13.67       919,892       1.14       1.15       0.92       89  

Class C

                            

Six months ended 04/30/22

     25.35       (0.02 )      (2.38 )      (2.40 )      (0.06 )      (4.15 )      (4.21 )      18.74       (11.44 )      49,861       1.80 (f)      1.80 (f)      (0.22 )(f)      19  

Year ended 10/31/21

     18.31       (0.13 )      7.37       7.24       (0.10 )      (0.10 )      (0.20 )      25.35       39.78       60,285       1.83       1.83       (0.58 )      35  

Year ended 10/31/20

     16.66       (0.01 )      1.76       1.75       (0.03 )      (0.07 )      (0.10 )      18.31       10.52       61,600       1.88       1.88       (0.03 )      28  

Three months ended 10/31/19

     16.49       –       0.17       0.17       –       –       –       16.66       1.03       69,736       1.90 (f)      1.90 (f)      (0.03 )(f)      7  

Year ended 07/31/19

     17.10       –       0.67       0.67       –       (1.28 )      (1.28 )      16.49       5.18       73,404       1.89       1.89       (0.02 )      48  

Year ended 07/31/18

     17.88       (0.04 )      1.68       1.64       (0.04 )      (2.38 )      (2.42 )      17.10       9.67       201,771       1.88       1.89       (0.25 )      48  

Year ended 07/31/17

     17.01       0.03       2.04       2.07       (0.07 )      (1.13 )      (1.20 )      17.88       12.84       219,426       1.89       1.90       0.17       89  

Class R

                            

Six months ended 04/30/22

     27.48       0.03       (2.61 )      (2.58 )      (0.09 )      (4.15 )      (4.24 )      20.66       (11.20 )      51,481       1.30 (f)      1.30 (f)      0.28 (f)      19  

Year ended 10/31/21

     19.74       (0.02 )      7.96       7.94       (0.10 )      (0.10 )      (0.20 )      27.48       40.47       59,603       1.33       1.33       (0.08 )      35  

Year ended 10/31/20

     17.91       0.09       1.88       1.97       (0.07 )      (0.07 )      (0.14 )      19.74       11.01       49,869       1.38       1.38       0.47       28  

Three months ended 10/31/19

     17.70       0.02       0.19       0.21       –       –       –       17.91       1.19       53,064       1.40 (f)      1.40 (f)      0.47 (f)      7  

Year ended 07/31/19

     18.20       0.08       0.73       0.81       (0.03 )      (1.28 )      (1.31 )      17.70       5.63       55,265       1.38       1.38       0.48       48  

Year ended 07/31/18

     18.88       0.05       1.78       1.83       (0.13 )      (2.38 )      (2.51 )      18.20       10.27       58,150       1.38       1.39       0.25       48  

Year ended 07/31/17

     17.89       0.12       2.16       2.28       (0.16 )      (1.13 )      (1.29 )      18.88       13.40       62,250       1.39       1.40       0.67       89  

Class Y

                            

Six months ended 04/30/22

     29.41       0.10       (2.83 )      (2.73 )      (0.22 )      (4.15 )      (4.37 )      22.31       (10.99 )      63,487       0.80 (f)      0.80 (f)      0.78 (f)      19  

Year ended 10/31/21

     21.03       0.11       8.49       8.60       (0.12 )      (0.10 )      (0.22 )      29.41       41.15       71,664       0.83       0.83       0.42       35  

Year ended 10/31/20

     19.01       0.19       2.01       2.20       (0.11 )      (0.07 )      (0.18 )      21.03       11.59       49,316       0.88       0.88       0.97       28  

Three months ended 10/31/19

     18.77       0.05       0.19       0.24       –       –       –       19.01       1.28       46,309       0.91 (f)      0.91 (f)      0.97 (f)      7  

Year ended 07/31/19

     19.22       0.18       0.77       0.95       (0.12 )      (1.28 )      (1.40 )      18.77       6.11       44,719       0.89       0.89       0.98       48  

Year ended 07/31/18

     19.81       0.14       1.88       2.02       (0.23 )      (2.38 )      (2.61 )      19.22       10.84       42,354       0.88       0.89       0.74       48  

Year ended 07/31/17

     18.70       0.22       2.26       2.48       (0.24 )      (1.13 )      (1.37 )      19.81       13.96       43,905       0.90       0.91       1.15       89  

Class R5

                            

Six months ended 04/30/22

     28.72       0.11       (2.75 )      (2.64 )      (0.25 )      (4.15 )      (4.40 )      21.68       (10.96 )      10       0.71 (f)      0.71 (f)      0.87 (f)      19  

Year ended 10/31/21

     20.53       0.13       8.28       8.41       (0.12 )      (0.10 )      (0.22 )      28.72       41.24       13       0.73       0.73       0.52       35  

Year ended 10/31/20

     18.56       0.20       1.95       2.15       (0.11 )      (0.07 )      (0.18 )      20.53       11.64       12       0.80       0.80       1.05       28  

Three months ended 10/31/19

     18.31       0.05       0.20       0.25       –       –       –       18.56       1.37       11       0.84 (f)      0.84 (f)      1.04 (f)      7  

Period ended 07/31/19(g)

     17.13       0.04       1.14       1.18       –       –       –       18.31       6.89       11       0.79 (f)      0.79 (f)      1.07 (f)      48  

Class R6

                            

Six months ended 04/30/22

     28.74       0.11       (2.75 )      (2.64 )      (0.25 )      (4.15 )      (4.40 )      21.70       (10.95 )      3,261       0.71 (f)      0.71 (f)      0.87 (f)      19  

Year ended 10/31/21

     20.53       0.14       8.29       8.43       (0.12 )      (0.10 )      (0.22 )      28.74       41.34       3,309       0.73       0.73       0.52       35  

Year ended 10/31/20

     18.56       0.20       1.96       2.16       (0.12 )      (0.07 )      (0.19 )      20.53       11.68       102       0.80       0.80       1.05       28  

Three months ended 10/31/19

     18.31       0.05       0.20       0.25       –       –       –       18.56       1.37       11       0.73 (f)      0.73 (f)      1.15 (f)      7  

Period ended 07/31/19(g)

     17.13       0.04       1.14       1.18       –       –       –       18.31       6.89       11       0.74 (f)      0.74 (f)      1.12 (f)      48  

 

(a) 

Calculated using average shares outstanding.

(b) 

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c) 

Does not include estimated acquired fund fees from underlying funds of 0.00% for the three months ended October 31, 2019 and the years ended July 31, 2019, 2018 and 2017, respectively.

(d) 

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

(e) 

The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the six months ended April 30, 2022 and the years ended ended October 31, 2021 and 2020.

(f) 

Annualized.

(g) 

Commencement date after the close of business on May 24, 2019.

 

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

 

11   Invesco Main Street All Cap Fund®

Notes to Financial Statements

April 30, 2022

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Main Street All Cap Fund® (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

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

The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

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

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

A.

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

A security listed or traded on an exchange is 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 may be valued up to 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 debt securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.

 

12   Invesco Main Street All Cap 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 and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C.

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

D.

Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

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

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

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

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the Investment Company Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

Invesco Advisers, Inc. (the “Adviser” or “Invesco”) serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon (the “BNYM”) also continues to serve as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2022, the Fund paid the Adviser $928 in fees for securities lending agent services.

J.

COVID-19 Risk - The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

 

13   Invesco Main Street All Cap Fund®

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets*    Rate

 

First $200 million

    0.750%

 

Next $200 million

    0.720%

 

Next $200 million

    0.690%

 

Next $200 million

    0.660%

 

Next $4.2 billion

    0.600%

 

Over $5 billion

    0.580%

 

 

*

The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended April 30, 2022, the effective advisory fee rate incurred by the Fund was 0.65%.

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

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended April 30, 2022, the Adviser waived advisory fees of $2,091.

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 six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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 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 six months ended April 30, 2022, 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 six months ended April 30, 2022, IDI advised the Fund that IDI retained $52,747 in front-end sales commissions from the sale of Class A shares and $3,668 and $818 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended April 30, 2022, the Fund incurred $6,248 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

Level 1 –   Prices are determined using quoted prices in an active market for identical assets.
Level 2 –   Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

 

14   Invesco Main Street All Cap Fund®

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

The following is a summary of the tiered valuation input levels, as of April 30, 2022. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1        Level 2        Level 3        Total  

 

  

Investments in Securities

                  

 

  

Common Stocks & Other Equity Interests

    $ 1,183,735,275        $ –          $–        $ 1,183,735,275  

 

  

Money Market Funds

      29,704,927          24,451,798            –          54,156,725  

 

  

Total Investments

    $ 1,213,440,202        $ 24,451,798          $–        $ 1,237,892,000  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2022, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $514.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of October 31, 2021.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2022 was $254,320,167 and $320,510,711, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $348,321,004  

 

  

Aggregate unrealized (depreciation) of investments

      (39,856,695 ) 

 

  

Net unrealized appreciation of investments

      $308,464,309  

 

  

Cost of investments for tax purposes is $929,427,691.

 

15   Invesco Main Street All Cap Fund®

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     April 30, 2022(a)     October 31, 2021  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      1,109,839     $ 27,374,318       2,209,063     $ 56,112,371  

 

  

Class C

      229,487       4,894,053       397,500       8,971,053  

 

  

Class R

      213,291       5,029,173       348,939       8,555,602  

 

  

Class Y

      447,648       11,635,859       683,537       17,701,473  

 

  

Class R6

      21,235       530,529       127,495       3,251,414  

 

  

Issued as reinvestment of dividends:

         

Class A

      7,218,472       176,202,865       398,023       9,082,874  

 

  

Class C

      456,878       9,717,789       31,529       643,194  

 

  

Class R

      383,102       8,968,420       21,805       480,149  

 

  

Class Y

      357,732       9,025,576       20,149       472,705  

 

  

Class R6

      20,844       511,312       28       642  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      135,929       3,236,317       838,163       19,978,187  

 

  

Class C

      (155,800 )      (3,236,317 )      (938,626 )      (19,978,187 ) 

 

  

Reacquired:

         

Class A

      (3,240,375 )      (80,461,818 )      (6,251,242 )      (158,084,622 ) 

 

  

Class C

      (248,155 )      (5,424,087 )      (476,595 )      (10,726,440 ) 

 

  

Class R

      (273,177 )      (6,576,598 )      (727,971 )      (17,675,182 ) 

 

  

Class Y

      (396,201 )      (10,292,749 )      (612,485 )      (15,846,932 ) 

 

  

Class R5

      -       -       (138 )      (3,699 ) 

 

  

Class R6

      (6,946 )      (168,993 )      (17,353 )      (457,750 ) 

 

  

Net increase (decrease) in share activity

      6,273,803     $ 150,965,649       (3,948,179 )    $ (97,523,148 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 11% 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.

 

16   Invesco Main Street All Cap 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, 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 November 1, 2021 through April 30, 2022.

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 or contingent deferred sales charges on redemptions, 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.

 

          ACTUAL  

HYPOTHETICAL

(5% annual return before

expenses)

     
     Beginning
    Account Value    
(11/01/21)		   Ending
    Account Value    
(04/30/22)1		   Expenses
      Paid During      
Period2		   Ending
      Account Value      
(04/30/22)		   Expenses
      Paid During      
Period2		  

      Annualized      
Expense

Ratio

Class A

   $1,000.00   $888.90   $4.87   $1,019.64   $5.21   1.04%

Class C

     1,000.00      885.60     8.42     1,015.87     9.00   1.80    

Class R

     1,000.00     888.00     6.09     1,018.35     6.51   1.30    

Class Y

     1,000.00     890.10     3.75     1,020.83     4.01   0.80    

Class R5

     1,000.00     890.40     3.33     1,021.27     3.56   0.71    

Class R6

     1,000.00     890.50     3.33     1,021.27     3.56   0.71    

 

1 

The actual ending account value is based on the actual total return of the Fund for the period November 1, 2021 through April 30, 2022, 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.

 

17   Invesco Main Street All Cap Fund®

 

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

 

 

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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    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/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

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

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

 

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SEC file number(s): 811-01424 and 002-25469                   Invesco Distributors, Inc.    O-MSA-SAR-1                                         

LOGO

 

   
Semiannual Report to Shareholders   April 30, 2022

Invesco Rising Dividends Fund

Nasdaq:

A: OARDX ∎ C: OCRDX ∎ R: ONRDX ∎ Y: OYRDX ∎ R5: RSDQX ∎ R6: OIRDX

 

    

     
2   Fund Performance  
4   Liquidity Risk Management Program  
5   Schedule of Investments  
8   Financial Statements  
11   Financial Highlights  
12   Notes to Financial Statements  
17   Fund Expenses  

 

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

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 Performance

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 10/31/21 to 4/30/22, 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

     -5.99 % 

Class C Shares

     -6.33  

Class R Shares

     -6.09  

Class Y Shares

     -5.87  

Class R5 Shares

     -5.84  

Class R6 Shares

     -5.82  

S&P 500 Index▼

     -9.65  

Russell 1000 Index▼

     -11.29  

Source(s): ▼RIMES Technologies Corp.

  

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

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

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

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

 

 

 

 

 

 

 

 

For more information about your Fund

 

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

 

2   Invesco Rising Dividends Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 4/30/22, including maximum applicable sales charges

 

Class A Shares

        

Inception (4/30/80)

     11.94 % 

10 Years

     9.82  

  5 Years

     10.11  

  1 Year

     -2.19  

Class C Shares

        

Inception (9/1/93)

     8.65 % 

10 Years

     9.78  

  5 Years

     10.54  

  1 Year

     1.84  

Class R Shares

        

Inception (3/1/01)

     6.88 % 

10 Years

     10.15  

  5 Years

     11.09  

  1 Year

     3.24  

Class Y Shares

        

Inception (12/16/96)

     8.08 % 

10 Years

     10.70  

  5 Years

     11.64  

  1 Year

     3.74  

Class R5 Shares

        

10 Years

     10.56 % 

  5 Years

     11.60  

  1 Year

     3.84  

Class R6 Shares

        

Inception (2/28/12)

     10.88 % 

10 Years

     10.89  

  5 Years

     11.80  

  1 Year

     3.84  

Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Rising Dividend Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Rising Dividend Fund. Note: The Fund was subsequently renamed the Invesco Rising Dividends Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    Class R5 shares incepted on May 24, 2019. Performance shown on and 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.

    The performance data quoted represent past performance and cannot guarantee 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. Performance figures do not reflect deduction

of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 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.

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

 

 

3   Invesco Rising Dividends Fund

 

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 21-23, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Fund and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

The Report stated, in relevant part, that during the Program Reporting Period:

∎

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎

The Fund’s investment strategy remained appropriate for an open-end fund;

∎

The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎

The Fund did not breach the 15% limit on Illiquid Investments; and

∎

The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

 

4   Invesco Rising Dividends Fund

Schedule of Investments(a)

April 30, 2022

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–99.55%

 

Aerospace & Defense–1.80%

 

Raytheon Technologies Corp.

      543,079      $ 51,543,628  

 

  

Agricultural & Farm Machinery–1.63%

 

Deere & Co.

      123,749        46,721,435  

 

  

Air Freight & Logistics–1.34%

 

United Parcel Service, Inc., Class B

      213,963        38,509,061  

 

  

Apparel Retail–1.18%

 

Ross Stores, Inc.

      339,372        33,859,144  

 

  

Apparel, Accessories & Luxury Goods–0.51%

 

LVMH Moet Hennessy Louis Vuitton SE (France)

      22,708        14,530,752  

 

  

Automotive Retail–0.75%

 

Advance Auto Parts, Inc.(b)

      107,699        21,499,951  

 

  

Building Products–0.80%

 

Carrier Global Corp.

      597,810        22,878,189  

 

  

Cable & Satellite–1.38%

 

Comcast Corp., Class A

      990,582        39,385,540  

 

  

Consumer Finance–1.10%

 

American Express Co.

      180,663        31,563,633  

 

  

Data Processing & Outsourced Services–2.25%

 

Visa, Inc., Class A(b)

      302,752        64,525,534  

 

  

Diversified Banks–2.23%

 

JPMorgan Chase & Co.

      535,084        63,867,626  

 

  

Electric Utilities–2.17%

 

American Electric Power Co., Inc.

      323,015        32,014,017  

 

  

NextEra Energy, Inc.

      425,979        30,253,028  

 

  
     62,267,045  

 

  

Electrical Components & Equipment–0.51%

 

Regal Rexnord Corp.

      115,046        14,638,453  

 

  

Electronic Manufacturing Services–1.02%

 

TE Connectivity Ltd. (Switzerland)

      233,801        29,173,689  

 

  

Environmental & Facilities Services–1.27%

 

Republic Services, Inc.

      271,544        36,460,213  

 

  

Fertilizers & Agricultural Chemicals–1.39%

 

Mosaic Co. (The)

      638,842        39,876,518  

 

  

Financial Exchanges & Data–3.74%

 

CME Group, Inc., Class A

      110,958        24,337,528  

 

  

Intercontinental Exchange, Inc.

      313,682        36,327,512  

 

  

S&P Global, Inc.

      123,190        46,381,035  

 

  
     107,046,075  

 

  

Footwear–1.15%

 

NIKE, Inc., Class B

      263,597        32,870,546  

 

  
     Shares      Value  

 

  

Gas Utilities–0.68%

 

Atmos Energy Corp.(b)

      171,795      $ 19,481,553  

 

  

General Merchandise Stores–1.49%

 

Dollar General Corp.

      180,050        42,767,276  

 

  

Health Care Equipment–1.25%

 

Stryker Corp.

      147,969        35,699,001  

 

  

Health Care Facilities–0.59%

 

HCA Healthcare, Inc.

      79,210          16,994,506  

 

  

Health Care Supplies–0.76%

 

Cooper Cos., Inc. (The)

      60,476        21,834,255  

 

  

Home Improvement Retail–1.86%

 

Home Depot, Inc. (The)

      177,762        53,399,705  

 

  

Homebuilding–0.91%

 

D.R. Horton, Inc.

      374,099        26,033,549  

 

  

Hotels, Resorts & Cruise Lines–1.10%

 

Wyndham Hotels & Resorts, Inc.

      357,553        31,450,362  

 

  

Household Products–2.12%

 

Procter & Gamble Co. (The)

      377,642        60,630,423  

 

  

Industrial Conglomerates–1.01%

 

Honeywell International, Inc.

      149,312        28,893,365  

 

  

Industrial Machinery–0.88%

 

Otis Worldwide Corp.

      345,553        25,170,081  

 

  

Industrial REITs–1.64%

 

Prologis, Inc.

      293,321        47,016,423  

 

  

Insurance Brokers–1.74%

 

Marsh & McLennan Cos., Inc.

      309,014        49,967,564  

 

  

Integrated Oil & Gas–2.27%

 

Chevron Corp.

      414,164        64,887,074  

 

  

Integrated Telecommunication Services–1.05%

 

Verizon Communications, Inc.

      647,083        29,959,943  

 

  

Interactive Home Entertainment–1.34%

 

Electronic Arts, Inc.

      326,287        38,518,180  

 

  

Investment Banking & Brokerage–1.13%

 

Charles Schwab Corp. (The)

      489,049        32,438,620  

 

  

IT Consulting & Other Services–1.58%

 

Accenture PLC, Class A

      151,075        45,376,887  

 

  

Life Sciences Tools & Services–1.80%

 

Danaher Corp.

      205,532        51,615,251  

 

  

Managed Health Care–3.40%

 

Anthem, Inc.

      47,013        23,597,235  

 

  

UnitedHealth Group, Inc.

      145,001        73,740,259  

 

  
     97,337,494  

 

  
 

 

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

 

5   Invesco Rising Dividends Fund

 

     Shares      Value  

 

  

Marine–0.35%

 

ZIM Integrated Shipping Services Ltd. (Israel)

      180,845      $ 10,060,407  

 

  

Metal & Glass Containers–0.78%

 

Crown Holdings, Inc.

      201,931        22,220,487  

 

  

Office REITs–1.20%

 

Alexandria Real Estate Equities, Inc.

      188,426        34,323,680  

 

  

Oil & Gas Equipment & Services–0.90%

 

Baker Hughes Co., Class A

      829,230        25,722,715  

 

  

Oil & Gas Exploration & Production–0.88%

 

Chesapeake Energy Corp.(b)

      305,886        25,088,770  

 

  

Packaged Foods & Meats–1.14%

 

Mondelez International, Inc., Class A

      504,246        32,513,782  

 

  

Pharmaceuticals–6.44%

 

AstraZeneca PLC, ADR (United Kingdom)

      465,413        30,903,423  

 

  

Eli Lilly and Co.

      196,025        57,264,784  

 

  

Johnson & Johnson

      327,683        59,133,674  

 

  

Zoetis, Inc.

      210,317        37,278,688  

 

  
       184,580,569  

 

  

Property & Casualty Insurance–1.23%

 

Allstate Corp. (The)

      277,312        35,091,060  

 

  

Railroads–1.54%

 

Union Pacific Corp.

      188,466        44,155,699  

 

  

Regional Banks–1.11%

 

PNC Financial Services Group, Inc. (The)

      191,096        31,741,046  

 

  

Research & Consulting Services–1.13%

 

TransUnion

      371,354        32,500,902  

 

  

Restaurants–1.56%

 

McDonald’s Corp.

      178,950        44,587,182  

 

  

Semiconductor Equipment–2.24%

 

Applied Materials, Inc.

      296,315        32,698,360  

 

  

ASML Holding N.V., New York Shares (Netherlands)

      55,980        31,559,845  

 

  
     64,258,205  

 

  

Semiconductors–4.13%

 

NVIDIA Corp.

      298,092        55,287,123  

 

  

QUALCOMM, Inc.

      264,993        37,016,872  

 

  

Texas Instruments, Inc.

      151,932        25,866,423  

 

  
     118,170,418  

 

  

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

     Shares      Value  

 

  

Soft Drinks–3.16%

 

Coca-Cola Co. (The)

      627,988      $ 40,574,305  

 

  

PepsiCo, Inc.

      291,153        49,993,881  

 

  
     90,568,186  

 

  

Specialized REITs–1.72%

 

American Tower Corp.

      204,539        49,297,990  

 

  

Specialty Chemicals–0.76%

 

PPG Industries, Inc.

      169,289        21,667,299  

 

  

Systems Software–6.82%

 

Microsoft Corp.

      703,601        195,263,350  

 

  

Technology Hardware, Storage & Peripherals–7.64%

 

Apple, Inc.

      1,387,183        218,689,400  

 

  

Total Common Stocks & Other Equity Interests (Cost $1,876,860,874)

 

      2,851,189,691  

 

  

Money Market Funds–0.39%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(c)(d)

      3,750,798        3,750,798  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 0.29%(c)(d)

      2,972,735        2,972,140  

 

  

Invesco Treasury Portfolio, Institutional Class, 0.23%(c)(d)

      4,286,626        4,286,626  

 

  

Total Money Market Funds (Cost $11,009,171)

 

      11,009,564  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.94% (Cost $1,887,870,045)

 

      2,862,199,255  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–2.94%

 

Invesco Private Government Fund, 0.40%(c)(d)(e)

      25,267,751        25,267,751  

 

  

Invesco Private Prime Fund, 0.35%(c)(d)(e)

     58,958,085        58,958,085  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $84,221,641)

 

      84,225,836  

 

  

TOTAL INVESTMENTS IN
SECURITIES–102.88%
(Cost $1,972,091,686)

 

      2,946,425,091  

 

  

OTHER ASSETS LESS LIABILITIES–(2.88)%

 

      (82,349,523 ) 

 

  

NET ASSETS–100.00%

 

    $ 2,864,075,568  

 

  
 

 

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

 

6   Invesco Rising Dividends Fund

Notes to Schedule of Investments:

 

(a) 

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

(b) 

All or a portion of this security was out on loan at April 30, 2022.

(c) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2022.

 

     Value
October 31, 2021		     Purchases
at Cost		     Proceeds
from Sales		     Change in
Unrealized
Appreciation		     Realized
Gain (Loss)		     Value
April 30, 2022		     Dividend Income  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     $ 5,150,599       $ 64,055,792     $ (65,455,593 )        $ -             $ -            $ 3,750,798           $ 816       

Invesco Liquid Assets Portfolio, Institutional Class

     3,973,053         45,754,137       (46,753,996 )      393           (1,447)           2,972,140         1,320       

Invesco Treasury Portfolio, Institutional Class

     5,886,399         73,206,619       (74,806,392 )      -           -            4,286,626         1,347       
Investments Purchased with Cash Collateral from Securities on Loan:                                                        

Invesco Private Government Fund

     -         325,814,719       (300,546,968 )      -           -            25,267,751         21,398*      

Invesco Private Prime Fund

     -         753,055,242       (694,069,477 )      4,195           (31,875)           58,958,085         59,394*      

Total

     $ 15,010,051       $ 1,261,886,509     $ (1,181,632,426 )        $ 4,588         $ (33,322)           $ 95,235,400           $ 84,275       

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(d) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(e) 

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

 

Portfolio Composition

 

By sector, based on Net Assets

as of April 30, 2022

 

 

Information Technology

      25.68 % 

Health Care

      14.25  

Financials

      12.28  

Industrials

      12.27  

Consumer Discretionary

      10.51  

Consumer Staples

      6.41  

Real Estate

      4.56  

Energy

      4.04  

Communication Services

      3.77  

Materials

      2.93  

Utilities

      2.85  

Money Market Funds Plus Other Assets Less Liabilities

      0.45  
 

 

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

 

7   Invesco Rising Dividends Fund

Statement of Assets and Liabilities

April 30, 2022

(Unaudited)

 

Assets:

 

Investments in unaffiliated securities, at value
(Cost $1,876,860,874)*

    $ 2,851,189,691  

 

  

Investments in affiliated money market funds, at value
(Cost $95,230,812)

      95,235,400  

 

  

Cash

      3,000,000  

 

  

Foreign currencies, at value (Cost $143,050)

      142,905  

 

  

Receivable for:

 

Investments sold

      4,615,365  

 

  

Fund shares sold

      685,543  

 

  

Dividends

      2,339,717  

 

  

Investment for trustee deferred compensation and retirement plans

      186,565  

 

  

Other assets

      93,965  

 

  

Total assets

      2,957,489,151  

 

  

Liabilities:

 

Payable for:

 

Investments purchased

      4,633,951  

 

  

Fund shares reacquired

      2,780,056  

 

  

Collateral upon return of securities loaned

      84,221,641  

 

  

Accrued fees to affiliates

      1,373,357  

 

  

Accrued trustees’ and officers’ fees and benefits

      2,031  

 

  

Accrued other operating expenses

      99,358  

 

  

Trustee deferred compensation and retirement plans

      303,189  

 

  

Total liabilities

      93,413,583  

 

  

Net assets applicable to shares outstanding

    $ 2,864,075,568  

 

  

Net assets consist of:

 

Shares of beneficial interest

    $ 1,736,439,015  

 

  

Distributable earnings

      1,127,636,553  

 

  
   $ 2,864,075,568  

 

  

Net Assets:

 

Class A

    $ 2,260,071,161  

 

  

Class C

    $ 165,982,584  

 

  

Class R

    $ 105,300,687  

 

  

Class Y

    $ 294,689,486  

 

  

Class R5

    $ 12,257  

 

  

Class R6

    $ 38,019,393  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      98,762,746  

 

  

Class C

      9,081,122  

 

  

Class R

      4,641,853  

 

  

Class Y

      12,298,972  

 

  

Class R5

      536  

 

  

Class R6

      1,591,517  

 

  

Class A:

 

Net asset value per share

    $ 22.88  

 

  

Maximum offering price per share
(Net asset value of $22.88 ÷ 94.50%)

    $ 24.21  

 

  

Class C:

 

Net asset value and offering price per share

    $ 18.28  

 

  

Class R:

 

Net asset value and offering price per share

    $ 22.69  

 

  

Class Y:

 

Net asset value and offering price per share

    $ 23.96  

 

  

Class R5:

 

Net asset value and offering price per share

    $ 22.87  

 

  

Class R6:

 

Net asset value and offering price per share

    $ 23.89  

 

  

 

*

At April 30, 2022, securities with an aggregate value of $79,830,200 were on loan to brokers.

 

 

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

 

8   Invesco Rising Dividends Fund

Statement of Operations

For the six months ended April 30, 2022

(Unaudited)

 

Investment income:

 

Dividends (net of foreign withholding taxes of $804,579)

    $ 26,901,721  

 

  

Dividends from affiliated money market funds (includes securities lending income of $591,334)

      594,817  

 

  

Total investment income

      27,496,538  

 

  

Expenses:

 

Advisory fees

      9,009,866  

 

  

Administrative services fees

      217,830  

 

  

Custodian fees

      9,366  

 

  

Distribution fees:

 

Class A

      3,037,879  

 

  

Class C

      932,591  

 

  

Class R

      281,093  

 

  

Transfer agent fees – A, C, R and Y

      1,596,778  

 

  

Transfer agent fees – R5

      2  

 

  

Transfer agent fees – R6

      6,064  

 

  

Trustees’ and officers’ fees and benefits

      35,828  

 

  

Registration and filing fees

      64,917  

 

  

Professional services fees

      29,578  

 

  

Other

      (293,761 ) 

 

  

Total expenses

      14,928,031  

 

  

Less: Fees waived and/or expense offset arrangement(s)

      (3,101 ) 

 

  

Net expenses

      14,924,930  

 

  

Net investment income

      12,571,608  

 

  

Realized and unrealized gain (loss) from:

 

Net realized gain (loss) from:

 

Unaffiliated investment securities

      148,203,892  

 

  

Affiliated investment securities

      (33,322 ) 

 

  

Foreign currencies

      (31,119 ) 

 

  
     148,139,451  

 

  

Change in net unrealized appreciation (depreciation) of:

 

Unaffiliated investment securities

      (343,015,011 ) 

 

  

Affiliated investment securities

      4,588  

 

  

Foreign currencies

      (6,551 ) 

 

  
     (343,016,974 ) 

 

  

Net realized and unrealized gain (loss)

      (194,877,523 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (182,305,915 ) 

 

  

 

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

 

9   Invesco Rising Dividends Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2022 and the year ended October 31, 2021

(Unaudited)

 

     April 30,     October 31,  
     2022     2021  

 

  

Operations:

 

Net investment income

    $ 12,571,608     $ 17,346,586  

 

  

Net realized gain

      148,139,451       379,515,076  

 

  

Change in net unrealized appreciation (depreciation)

      (343,016,974 )      507,439,650  

 

  

Net increase (decrease) in net assets resulting from operations

      (182,305,915 )      904,301,312  

 

  

Distributions to shareholders from distributable earnings:

 

Class A

      (284,626,572 )      (49,334,750 ) 

 

  

Class C

      (26,390,273 )      (5,112,354 ) 

 

  

Class R

      (13,037,421 )      (2,124,341 ) 

 

  

Class Y

      (35,804,778 )      (7,061,100 ) 

 

  

Class R5

      (1,712 )      (328 ) 

 

  

Class R6

      (4,630,104 )      (818,653 ) 

 

  

Total distributions from distributable earnings

      (364,490,860 )      (64,451,526 ) 

 

  

Share transactions–net:

 

Class A

      190,792,632       (99,301,611 ) 

 

  

Class C

      8,045,321       (104,312,412 ) 

 

  

Class R

      9,806,782       (9,906,918 ) 

 

  

Class Y

      24,176,138       (16,255,806 ) 

 

  

Class R6

      4,096,021       2,526,702  

 

  

Net increase (decrease) in net assets resulting from share transactions

      236,916,894       (227,250,045 ) 

 

  

Net increase (decrease) in net assets

      (309,879,881 )      612,599,741  

 

  

Net assets:

 

Beginning of period

      3,173,955,449       2,561,355,708  

 

  

End of period

    $ 2,864,075,568     $ 3,173,955,449  

 

  

 

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

 

10   Invesco Rising Dividends Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income

(loss)(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

  

Total

return (b)

  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with

fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed(c)

  

Ratio of net

investment

income

(loss)

to average

net assets

  

Portfolio

turnover (d)

Class A

                            

Six months ended 04/30/22

     $27.44       $0.10       $(1.51 )      $(1.41 )      $(0.06 )      $(3.09 )      $(3.15 )      $22.88       (5.99 )%      $2,260,071       0.94 %(e)      0.94 %(e)      0.84 %(e)      18 % 

Year ended 10/31/21

     20.52       0.15       7.30       7.45       (0.15 )      (0.38 )      (0.53 )      27.44       36.83       2,497,385       1.00       1.00       0.62       30  

Year ended 10/31/20

     20.21       0.20       0.99       1.19       (0.23 )      (0.65 )      (0.88 )      20.52       6.05       1,944,346       1.04       1.04       0.99       28  

Year ended 10/31/19

     19.48       0.22       1.98       2.20       (0.18 )      (1.29 )      (1.47 )      20.21       12.30       2,055,643       1.05       1.05       1.13       29  

Year ended 10/31/18

     20.45       0.22       0.63       0.85       (0.23 )      (1.59 )      (1.82 )      19.48       4.39       1,980,262       1.06       1.06       1.11       58  

Year ended 10/31/17

     18.26       0.27       3.11       3.38       (0.29 )      (0.90 )      (1.19 )      20.45       19.42       2,131,479       1.07       1.07       1.43       78  

Class C

                            

Six months ended 04/30/22

     22.56       0.01       (1.20 )      (1.19 )      —       (3.09 )      (3.09 )      18.28       (6.33 )      165,983       1.69 (e)      1.69 (e)      0.09 (e)      18  

Year ended 10/31/21

     16.95       (0.03 )      6.02       5.99       (0.00 )      (0.38 )      (0.38 )      22.56       35.83       195,831       1.75       1.75       (0.13 )      30  

Year ended 10/31/20

     16.77       0.04       0.82       0.86       (0.03 )      (0.65 )      (0.68 )      16.95       5.23       238,458       1.79       1.79       0.24       28  

Year ended 10/31/19

     16.44       0.06       1.64       1.70       (0.08 )      (1.29 )      (1.37 )      16.77       11.44       317,475       1.80       1.80       0.38       29  

Year ended 10/31/18

     17.54       0.06       0.54       0.60       (0.11 )      (1.59 )      (1.70 )      16.44       3.65       470,544       1.81       1.81       0.36       58  

Year ended 10/31/17

     15.83       0.11       2.68       2.79       (0.18 )      (0.90 )      (1.08 )      17.54       18.54       534,216       1.83       1.83       0.68       78  

Class R

                            

Six months ended 04/30/22

     27.23       0.07       (1.49 )      (1.42 )      (0.03 )      (3.09 )      (3.12 )      22.69       (6.09 )      105,301       1.19 (e)      1.19 (e)      0.59 (e)      18  

Year ended 10/31/21

     20.36       0.09       7.25       7.34       (0.09 )      (0.38 )      (0.47 )      27.23       36.53       115,326       1.25       1.25       0.37       30  

Year ended 10/31/20

     20.06       0.15       0.97       1.12       (0.17 )      (0.65 )      (0.82 )      20.36       5.75       94,605       1.29       1.29       0.74       28  

Year ended 10/31/19

     19.35       0.17       1.97       2.14       (0.14 )      (1.29 )      (1.43 )      20.06       12.00       104,287       1.30       1.30       0.88       29  

Year ended 10/31/18

     20.32       0.17       0.63       0.80       (0.18 )      (1.59 )      (1.77 )      19.35       4.16       104,523       1.31       1.31       0.86       58  

Year ended 10/31/17

     18.15       0.23       3.08       3.31       (0.24 )      (0.90 )      (1.14 )      20.32       19.12       111,030       1.33       1.33       1.20       78  

Class Y

                            

Six months ended 04/30/22

     28.59       0.14       (1.58 )      (1.44 )      (0.10 )      (3.09 )      (3.19 )      23.96       (5.87 )      294,689       0.69 (e)      0.69 (e)      1.09 (e)      18  

Year ended 10/31/21

     21.36       0.22       7.61       7.83       (0.22 )      (0.38 )      (0.60 )      28.59       37.21       324,469       0.75       0.75       0.87       30  

Year ended 10/31/20

     21.02       0.26       1.02       1.28       (0.29 )      (0.65 )      (0.94 )      21.36       6.29       255,399       0.79       0.79       1.24       28  

Year ended 10/31/19

     20.21       0.27       2.06       2.33       (0.23 )      (1.29 )      (1.52 )      21.02       12.52       311,750       0.80       0.80       1.38       29  

Year ended 10/31/18

     21.14       0.28       0.66       0.94       (0.28 )      (1.59 )      (1.87 )      20.21       4.68       345,108       0.81       0.81       1.36       58  

Year ended 10/31/17

     18.84       0.34       3.20       3.54       (0.34 )      (0.90 )      (1.24 )      21.14       19.69       462,807       0.83       0.83       1.69       78  

Class R5

                            

Six months ended 04/30/22

     27.43       0.15       (1.52 )      (1.37 )      (0.10 )      (3.09 )      (3.19 )      22.87       (5.84 )      12       0.62 (e)      0.62 (e)      1.16 (e)      18  

Year ended 10/31/21

     20.51       0.24       7.30       7.54       (0.24 )      (0.38 )      (0.62 )      27.43       37.33       15       0.65       0.65       0.97       30  

Year ended 10/31/20

     20.21       0.27       0.98       1.25       (0.30 )      (0.65 )      (0.95 )      20.51       6.41       11       0.67       0.67       1.36       28  

Period ended 10/31/19(f)

     18.65       0.13       1.55       1.68       (0.12 )      —       (0.12 )      20.21       9.05       11       0.70 (e)      0.70 (e)      1.49 (e)      29  

Class R6

                            

Six months ended 04/30/22

     28.51       0.15       (1.57 )      (1.42 )      (0.11 )      (3.09 )      (3.20 )      23.89       (5.82 )      38,019       0.62 (e)      0.62 (e)      1.16 (e)      18  

Year ended 10/31/21

     21.31       0.25       7.58       7.83       (0.25 )      (0.38 )      (0.63 )      28.51       37.30       40,929       0.65       0.65       0.97       30  

Year ended 10/31/20

     20.97       0.29       1.02       1.31       (0.32 )      (0.65 )      (0.97 )      21.31       6.47       28,537       0.64       0.67       1.39       28  

Year ended 10/31/19

     20.16       0.30       2.06       2.36       (0.26 )      (1.29 )      (1.55 )      20.97       12.72       29,624       0.64       0.64       1.54       29  

Year ended 10/31/18

     21.10       0.31       0.65       0.96       (0.31 )      (1.59 )      (1.90 )      20.16       4.82       24,128       0.65       0.65       1.52       58  

Year ended 10/31/17

     18.81       0.35       3.21       3.56       (0.37 )      (0.90 )      (1.27 )      21.10       19.89       21,409       0.64       0.64       1.78       78  

 

(a) 

Calculated using average shares outstanding.

(b) 

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c) 

Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended October 31, 2019, 2018 and 2017, respectively.

(d) 

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

(e) 

Annualized.

(f) 

Commencement date after the close of business on May 24, 2019.

 

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

 

11   Invesco Rising Dividends Fund

Notes to Financial Statements

April 30, 2022

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Rising Dividends Fund (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is to seek total return.

The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

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

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

A.

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

A security listed or traded on an exchange is 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 may be valued up to 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 debt securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.

 

12   Invesco Rising Dividends 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 and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C.

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

D.

Distributions – Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

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

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

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

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the Investment Company Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

Invesco Advisers, Inc. (the “Adviser” or “Invesco”) serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon (the “BNYM”) also continues to serve as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2022, the Fund paid the Adviser $5,799 in fees for securities lending agent services.

J.

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

 

13   Invesco Rising Dividends Fund

interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

K.

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

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

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

L.

COVID-19 Risk – The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets*    Rate

Up to $800 million

    0.650%

Next $700 million

    0.600%

Next $1.0 billion

    0.580%

Next $2.5 billion

    0.560%

Next $5 billion

    0.540%

Over $10 billion

    0.520%

* The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended April 30, 2022, the effective advisory fee rate incurred by the Fund was 0.58%.

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

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended April 30, 2022, the Adviser waived advisory fees of $2,228.

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 six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to

 

14   Invesco Rising Dividends Fund

intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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 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 six months ended April 30, 2022, 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 six months ended April 30, 2022, IDI advised the Fund that IDI retained $131,731 in front-end sales commissions from the sale of Class A shares and $1,335 and $2,355 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended April 30, 2022, the Fund incurred $13,604 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2022. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total  

Investments in Securities

                                    

Common Stocks & Other Equity Interests

    $ 2,836,658,939      $ 14,530,752        $–      $ 2,851,189,691  

Money Market Funds

      11,009,564        84,225,836        –        95,235,400  

Total Investments

    $ 2,847,668,503      $ 98,756,588        $–      $ 2,946,425,091  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2022, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $873.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

 

15   Invesco Rising Dividends Fund

NOTE 7–Tax Information

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. 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 did not have a capital loss carryforward as of October 31, 2021.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2022 was $558,715,748 and $663,781,563, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis       

 

  

Aggregate unrealized appreciation of investments

    $ 1,054,039,130  

 

  

Aggregate unrealized (depreciation) of investments

      (80,085,081 ) 

 

  

Net unrealized appreciation of investments

    $ 973,954,049  

 

  

Cost of investments for tax purposes is $1,972,471,042.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     April 30, 2022(a)     October 31, 2021  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      2,950,068     $ 73,595,521       5,082,789     $ 123,256,369  

 

  

Class C

      561,828       11,252,640       1,199,672       24,173,694  

 

  

Class R

      276,131       6,875,342       560,693       13,563,423  

 

  

Class Y

      848,764       21,991,785       1,300,759       32,672,915  

 

  

Class R6

      137,520       3,640,917       399,042       10,164,359  

 

  

Issued as reinvestment of dividends:

         

Class A

      10,721,185       265,348,288       2,030,625       46,150,409  

 

  

Class C

      1,295,270       25,646,350       268,032       4,913,077  

 

  

Class R

      529,490       12,998,914       94,695       2,116,215  

 

  

Class Y

      1,157,870       30,000,067       243,423       5,790,776  

 

  

Class R6

      170,383       4,400,980       31,446       749,190  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      657,590       16,061,980       3,855,584       90,335,153  

 

  

Class C

      (819,910 )      (16,061,980 )      (4,682,828 )      (90,335,153 ) 

 

  

Reacquired:

         

Class A

      (6,577,774 )      (164,213,157 )      (14,716,870 )      (359,043,542 ) 

 

  

Class C

      (637,760 )      (12,791,689 )      (2,172,892 )      (43,064,030 ) 

 

  

Class R

      (399,574 )      (10,067,474 )      (1,065,821 )      (25,586,556 ) 

 

  

Class Y

      (1,057,300 )      (27,815,714 )      (2,149,762 )      (54,719,497 ) 

 

  

Class R6

      (151,894 )      (3,945,876 )      (334,301 )      (8,386,847 ) 

 

  

Net increase (decrease) in share activity

      9,661,887     $ 236,916,894       (10,055,714 )    $ (227,250,045 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 26% 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.

 

16   Invesco Rising Dividends 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, 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 November 1, 2021 through April 30, 2022.

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 or contingent deferred sales charges on redemptions, 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.

 

    

Beginning

    Account Value    

(11/01/21)

   ACTUAL  

HYPOTHETICAL

(5% annual return before

expenses)

  

    Annualized    

Expense

Ratio

 

Ending

    Account Value    

(04/30/22)1

   Expenses
    Paid During    
Period2		  

Ending

    Account Value    

(04/30/22)

  

Expenses

    Paid During    

Period2

Class A

   $1,000.00   $940.10   $4.52   $1,020.13   $4.71   0.94%

Class C

     1,000.00     936.70     8.12     1,016.41     8.45   1.69  

Class R

     1,000.00     939.10     5.72     1,018.89     5.96   1.19  

Class Y

     1,000.00     941.30     3.32     1,021.37     3.46   0.69  

Class R5

     1,000.00     941.60     2.98     1,021.72     3.11   0.62  

Class R6

     1,000.00     941.80     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 November 1, 2021 through April 30, 2022, 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.

 

17   Invesco Rising Dividends Fund

 

 

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LOGO

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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

∎ Fund reports and prospectuses

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∎ Daily confirmations

∎ Tax forms

 

 

Invesco mailing information

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

 

 

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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    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/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

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

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

 

LOGO

 

SEC file number(s): 811-01424 and 002-25469    Invesco Distributors, Inc.    O-RISD-SAR-1                

LOGO

 

   
Semiannual Report to Shareholders   April 30, 2022

Invesco Summit Fund

Nasdaq:

A: ASMMX ∎ C: CSMMX ∎ P: SMMIX ∎ S: SMMSX ∎ Y: ASMYX ∎ R5: SMITX ∎ R6: SMISX

 

    

   
2   Fund Performance
4   Liquidity Risk Management Program
5   Schedule of Investments
9   Financial Statements
12   Financial Highlights
13   Notes to Financial Statements
18   Fund Expenses

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

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 Performance

 

   

Performance summary

  
   

Fund vs. Indexes

  

Cumulative total returns, 10/31/21 to 4/30/22, 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

     -24.27 % 

Class C Shares

     -24.57  

Class P Shares

     -24.25  

Class S Shares

     -24.24  

Class Y Shares

     -24.19  

Class R5 Shares

     -24.18  

Class R6 Shares

     -24.15  

S&P 500 Index▼ (Broad Market Index)

     -9.65  

Russell 1000 Growth Index▼ (Style-Specific Index)

     -17.84  

Lipper Multi-Cap Growth Funds Index∎ (Peer Group Index)

     -26.55  

Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc.

 

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

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

  The Lipper Multi-Cap Growth Funds Index is an unmanaged index considered representative of multi-cap growth funds tracked by Lipper.

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

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

 

 

 

 

 

 

 

 

For more information about your Fund

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

        

 

 

2   Invesco Summit Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 4/30/22, including maximum applicable sales charges

 

Class A Shares

        

Inception (10/31/05)

     9.15 % 

10 Years

     12.92  

  5 Years

     12.54  

  1 Year

     -24.00  

Class C Shares

        

Inception (10/31/05)

     9.12 % 

10 Years

     12.90  

  5 Years

     12.95  

  1 Year

     -20.81  

Class P Shares

        

Inception (11/1/82)

     9.91 % 

10 Years

     13.73  

  5 Years

     13.97  

  1 Year

     -19.47  

Class S Shares

        

Inception (9/25/09)

     13.35 % 

10 Years

     13.68  

  5 Years

     13.93  

  1 Year

     -19.47  

Class Y Shares

        

Inception (10/3/08)

     12.05 % 

10 Years

     13.84  

  5 Years

     14.10  

  1 Year

     -19.35  

Class R5 Shares

        

Inception (10/3/08)

     12.14 % 

10 Years

     13.90  

  5 Years

     14.10  

  1 Year

     -19.37  

Class R6 Shares

        

10 Years

     13.74 % 

  5 Years

     14.15  

  1 Year

     -19.33  

Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class P, Class S, Class Y,

Class R5 and Class R6 shares do not have a front-end sales charge or contingent deferred sales charge (CDSC); therefore, returns shown are at net asset value.

    The performance numbers shown do not reflect the creation and sales charges and other fees assessed by the AIM Summit Investors Plans, which were dissolved effective December 8, 2006.

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

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

 

 

3   Invesco Summit Fund

 

Liquidity Risk Management Program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 21-23, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Fund and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

 

 

The Report stated, in relevant part, that during the Program Reporting Period:

∎

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎

The Fund’s investment strategy remained appropriate for an open-end fund;

∎

The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎

The Fund did not breach the 15% limit on Illiquid Investments; and

∎

The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

 

4   Invesco Summit Fund

Schedule of Investments(a)

April 30, 2022

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests-98.80%

 

Aerospace & Defense-2.79%

      

Airbus SE (France)

      276,300      $ 30,046,956  

 

  

General Dynamics Corp.

      123,750        29,270,587  

 

  

Northrop Grumman Corp.

      48,600        21,354,840  

 

  
        80,672,383  

 

  

Agricultural & Farm Machinery-0.99%

 

Deere & Co.

      75,870        28,644,718  

 

  

Agricultural Products-0.23%

      

Bunge Ltd.

      57,600        6,515,712  

 

  

Apparel Retail-0.12%

      

MYT Netherlands Parent B.V., ADR (Germany)(b)(c)

      294,429        3,515,482  

 

  

Application Software-3.12%

      

Adobe, Inc.(b)

      18,270        7,234,006  

 

  

Paylocity Holding Corp.(b)

      96,030        18,210,169  

 

  

salesforce.com, inc.(b)

      84,690        14,900,359  

 

  

Synopsys, Inc.(b)

      106,380        30,508,720  

 

  

Trade Desk, Inc. (The), Class A(b)

      193,500        11,401,020  

 

  

Unity Software, Inc.(b)(c)

      117,000        7,769,970  

 

  
        90,024,244  

 

  

Asset Management & Custody Banks-0.64%

 

Apollo Global Management, Inc.

      136,250        6,779,800  

 

  

KKR & Co., Inc., Class A

      231,200        11,784,264  

 

  
        18,564,064  

 

  

Automobile Manufacturers-0.78%

      

General Motors Co.(b)

      189,000        7,164,990  

 

  

Rivian Automotive, Inc., Class A(b)(c)

      33,128        1,001,791  

 

  

Tesla, Inc.(b)

      16,470        14,341,417  

 

  
        22,508,198  

 

  

Automotive Retail-0.32%

      

AutoZone, Inc.(b)

      4,720        9,229,818  

 

  

Biotechnology-0.26%

      

AbbVie, Inc.

      46,800        6,873,984  

 

  

uniQure N.V. (Netherlands)(b)

      39,600        591,624  

 

  
        7,465,608  

 

  

Construction Machinery & Heavy Trucks-0.35%

 

Caterpillar, Inc.

      48,600        10,232,244  

 

  

Consumer Electronics-0.72%

      

Sony Group Corp. (Japan)

      242,300        20,826,041  

 

  

Copper-1.16%

      

Freeport-McMoRan, Inc.

      823,500        33,392,925  

 

  

Data Processing & Outsourced Services-5.26%

 

Adyen N.V. (Netherlands)(b)(d)

      3,501        5,855,275  

 

  

Block, Inc., Class A(b)(c)

      101,610        10,114,259  

 

  

Mastercard, Inc., Class A

      357,570        129,933,787  

 

  

PayPal Holdings, Inc.(b)

      36,900        3,244,617  

 

  
     Shares      Value  

 

  

Data Processing & Outsourced Services-(continued)

 

StoneCo Ltd., Class A (Brazil)(b)(c)

      289,800      $ 2,729,916  

 

  
        151,877,854  

 

  

Diversified Banks-0.23%

      

BDO Unibank, Inc. (Philippines)

      2,700,000        6,664,684  

 

  

Diversified Metals & Mining-0.81%

      

Glencore PLC (Australia)

      3,807,000        23,466,929  

 

  

Diversified Support Services-0.40%

 

Cintas Corp.

      29,250        11,619,855  

 

  

Electrical Components & Equipment-0.75%

 

AMETEK, Inc.

      171,000        21,590,460  

 

  

Electronic Equipment & Instruments-1.59%

 

Teledyne Technologies, Inc.(b)

      106,470        45,947,128  

 

  

Environmental & Facilities Services-1.32%

 

Clean Harbors, Inc.(b)

      147,960        15,525,443  

 

  

Waste Connections, Inc.

      164,700        22,723,659  

 

  
        38,249,102  

 

  

Financial Exchanges & Data-0.92%

 

CME Group, Inc., Class A

      28,800        6,316,992  

 

  

Intercontinental Exchange, Inc.

      174,044        20,156,036  

 

  
        26,473,028  

 

  

Food Distributors-0.83%

      

Performance Food Group Co.(b)

      259,200        12,765,601  

 

  

Sysco Corp.

      132,300        11,309,004  

 

  
        24,074,605  

 

  

Food Retail-0.82%

      

HelloFresh SE (Germany)(b)

      552,600        23,632,562  

 

  

Gold-0.47%

      

Newmont Corp.

      186,300        13,571,955  

 

  

Health Care Equipment-2.35%

      

DexCom, Inc.(b)

      79,740        32,580,169  

 

  

Edwards Lifesciences Corp.(b)

      52,200        5,521,716  

 

  

Intuitive Surgical, Inc.(b)

      67,950        16,260,435  

 

  

Shockwave Medical, Inc.(b)

      88,614        13,392,234  

 

  
        67,754,554  

 

  

Health Care Facilities-0.76%

      

HCA Healthcare, Inc.

      102,690        22,032,140  

 

  

Health Care Supplies-1.02%

      

Cooper Cos., Inc. (The)

      81,450        29,406,708  

 

  

Home Improvement Retail-1.99%

      

Lowe’s Cos., Inc.

      290,070        57,355,541  

 

  

Hotels, Resorts & Cruise Lines-2.81%

 

Booking Holdings, Inc.(b)

      11,000        24,313,410  

 

  

Marriott Vacations Worldwide Corp.(c)

      140,310        20,952,492  

 

  

Travel + Leisure Co.

      646,200        35,851,176  

 

  
        81,117,078  

 

  
 

 

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

 

5   Invesco Summit Fund

     Shares      Value  

 

  

Industrial Machinery-0.44%

      

Chart Industries, Inc.(b)(c)

      74,880      $ 12,641,242  

 

  

Insurance Brokers-0.79%

      

Arthur J. Gallagher & Co.

      66,600        11,221,434  

 

  

Brown & Brown, Inc.

      188,100        11,658,438  

 

  
        22,879,872  

 

  

Integrated Oil & Gas-0.99%

      

Occidental Petroleum Corp.

      227,700        12,543,993  

 

  

Suncor Energy, Inc. (Canada)

      447,564        16,088,822  

 

  
        28,632,815  

 

  

Interactive Home Entertainment-3.14%

 

Electronic Arts, Inc.

      190,980        22,545,189  

 

  

Nintendo Co. Ltd. (Japan)

      112,500        51,846,739  

 

  

Sea Ltd., ADR (Taiwan)(b)(c)

      35,550        2,942,118  

 

  

Take-Two Interactive Software, Inc.(b)

      112,171        13,405,556  

 

  
        90,739,602  

 

  

Interactive Media & Services-8.37%

 

Alphabet, Inc., Class A(b)

      414        944,827  

 

  

Alphabet, Inc., Class C(b)

      67,860        156,032,534  

 

  

Bumble, Inc., Class A(b)(c)

      436,100        10,462,039  

 

  

Kuaishou Technology (China)(b)(d)

      977,400        8,030,576  

 

  

Meta Platforms, Inc., Class A(b)

      225,900        45,286,173  

 

  

ZoomInfo Technologies, Inc., Class A(b)

      441,600        20,931,840  

 

  
        241,687,989  

 

  

Internet & Direct Marketing Retail-6.91%

 

Amazon.com, Inc.(b)

      59,346        147,512,198  

 

  

Farfetch Ltd., Class A (United Kingdom)(b)

      976,500        10,936,800  

 

  

JD.com, Inc., ADR (China)(b)(c)

      377,100        23,251,986  

 

  

MercadoLibre, Inc. (Brazil)(b)

      7,605        7,404,456  

 

  

Overstock.com, Inc.(b)(c)

      307,980        10,335,809  

 

  
        199,441,249  

 

  

Internet Services & Infrastructure-1.01%

 

Cloudflare, Inc., Class A(b)(c)

      97,200        8,372,808  

 

  

MongoDB, Inc.(b)

      58,760        20,855,687  

 

  
        29,228,495  

 

  

Leisure Facilities-0.64%

      

Life Time Group Holdings, Inc.(b)(c)

      1,286,365        18,395,020  

 

  

Life Sciences Tools & Services-1.45%

 

Avantor, Inc.(b)

      509,400        16,239,672  

 

  

Charles River Laboratories International, Inc.(b)(c)

      59,400        14,345,694  

 

  

Danaher Corp.

      45,000        11,300,850  

 

  
        41,886,216  

 

  

Managed Health Care-3.85%

      

Anthem, Inc.

      41,024        20,591,176  

 

  

UnitedHealth Group, Inc.

      178,120        90,582,926  

 

  
        111,174,102  

 

  

Movies & Entertainment-0.16%

      

IMAX Corp.(b)

      287,100        4,541,922  

 

  

Oil & Gas Equipment & Services-0.81%

 

Schlumberger N.V.

      600,300        23,417,703  

 

  
     Shares      Value  

 

  

Oil & Gas Exploration & Production-1.26%

 

APA Corp.

      433,800      $ 17,755,434  

 

  

Denbury, Inc.(b)

      144,000        9,213,120  

 

  

Oasis Petroleum, Inc.(c)

      70,650        9,372,429  

 

  
        36,340,983  

 

  

Oil & Gas Refining & Marketing-1.01%

 

Valero Energy Corp.

      261,630        29,166,512  

 

  

Packaged Foods & Meats-0.98%

      

Oatly Group AB, ADR(b)(c)

      974,700        3,469,932  

 

  

Tyson Foods, Inc., Class A

      266,400        24,817,824  

 

  
        28,287,756  

 

  

Pharmaceuticals-3.64%

      

AstraZeneca PLC (United Kingdom)

      45,000        5,977,884  

 

  

Bayer AG (Germany)

      651,600        42,948,723  

 

  

Novo Nordisk A/S, ADR (Denmark)(c)

      446,400        50,889,600  

 

  

Novo Nordisk A/S, Class B (Denmark)

      45,900        5,249,673  

 

  
        105,065,880  

 

  

Property & Casualty Insurance-0.72%

 

Chubb Ltd.

      100,440        20,735,839  

 

  

Regional Banks-0.41%

      

Silvergate Capital Corp., Class A(b)(c)

      36,810        4,305,298  

 

  

SVB Financial Group(b)

      15,396        7,507,705  

 

  
        11,813,003  

 

  

Residential REITs-0.53%

      

Camden Property Trust

      98,280        15,419,149  

 

  

Semiconductor Equipment-1.27%

 

Applied Materials, Inc.

      173,700        19,167,795  

 

  

ASML Holding N.V., New York Shares (Netherlands)

      31,130        17,550,160  

 

  
        36,717,955  

 

  

Semiconductors-4.76%

      

NVIDIA Corp.

      418,230        77,569,118  

 

  

QUALCOMM, Inc.

      269,280        37,615,723  

 

  

Semtech Corp.(b)

      374,838        22,340,345  

 

  
        137,525,186  

 

  

Specialized REITs-2.43%

      

EPR Properties

      1,143,900        60,077,628  

 

  

SBA Communications Corp., Class A

      28,800        9,996,768  

 

  
        70,074,396  

 

  

Specialty Chemicals-0.10%

      

Danimer Scientific, Inc.(b)(c)

      729,000        2,857,680  

 

  

Systems Software-13.06%

      

Darktrace PLC (United Kingdom)(b)

      1,745,000        9,395,636  

 

  

Gitlab, Inc., Class A(b)(c)

      42,267        2,025,857  

 

  

KnowBe4, Inc., Class A(b)

      1,864,800        44,382,240  

 

  

Microsoft Corp.

      746,820        207,257,486  

 

  

Palo Alto Networks, Inc.(b)

      95,660        53,692,045  

 

  

ServiceNow, Inc.(b)

      99,720        47,676,132  

 

  

Zscaler, Inc.(b)

      62,650        12,701,661  

 

  
        377,131,057  

 

  

Technology Hardware, Storage & Peripherals-5.03%

 

Apple, Inc.

      921,302        145,243,260  

 

  
 

 

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

 

6   Invesco Summit Fund

     Shares      Value  

 

  

Trading Companies & Distributors-0.69%

 

Fastenal Co.

      161,100      $ 8,910,441  

 

  

United Rentals, Inc.(b)

      34,830        11,024,392  

 

  
        19,934,833  

 

  

Trucking-0.54%

      

Lyft, Inc., Class A(b)

      370,800        12,088,080  

 

  

TuSimple Holdings, Inc., Class A(b)(c)

      327,600        3,397,212  

 

  
        15,485,292  

 

  

Total Common Stocks & Other Equity Interests
(Cost $1,969,688,920)

 

      2,852,890,628  

 

  

Money Market Funds-1.36%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(e)(f)

      13,746,338        13,746,338  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 0.29%(e)(f)

      9,878,679        9,876,703  

 

  

Invesco Treasury Portfolio, Institutional Class, 0.23%(e)(f)

      15,710,100        15,710,100  

 

  

Total Money Market Funds
(Cost $39,332,493)

 

      39,333,141  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.16%
(Cost $2,009,021,413)

 

      2,892,223,769  

 

  
     Shares      Value  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-3.29%

 

Invesco Private Government Fund, 0.40%(e)(f)(g)

      28,489,580      $ 28,489,580  

 

  

Invesco Private Prime Fund, 0.35%(e)(f)(g)

      66,475,688        66,475,688  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $94,965,268)

 

      94,965,268  

 

  

TOTAL INVESTMENTS IN SECURITIES-103.45%
(Cost $2,103,986,681)

 

      2,987,189,037  

 

  

OTHER ASSETS LESS LIABILITIES-(3.45)%

 

      (99,744,046 ) 

 

  

NET ASSETS-100.00%

       $ 2,887,444,991  

 

  

 

 

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a)

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

(b)

Non-income producing security.

(c)

All or a portion of this security was out on loan at April 30, 2022.

(d)

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2022 was $13,885,851, which represented less than 1% of the Fund’s Net Assets.

(e)

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2022.

 

     Value
October 31, 2021		     Purchases
at Cost		     Proceeds
from Sales		     Change in
Unrealized
Appreciation
(Depreciation)		    

Realized

Gain

(Loss)

     Value
April 30, 2022		     Dividend Income  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     $ 245,551       $ 109,578,883     $ (96,078,096)         $ -             $ -            $ 13,746,338           $ 2,626      

Invesco Liquid Assets Portfolio, Institutional Class

     -         78,270,631       (68,389,570)       648           (5,006)           9,876,703         3,658      

Invesco Treasury Portfolio, Institutional Class

     504,700         125,233,009       (110,027,609)       -           -            15,710,100         4,003      
Investments Purchased with Cash Collateral from Securities on Loan:                                                            

Invesco Private Government Fund

     71,898,426         305,997,473       (349,406,319)       -           -            28,489,580         25,955*      

Invesco Private Prime Fund

     167,762,995         587,788,036       (689,026,902)       (2)           (48,439)           66,475,688         91,667*      

Total

     $ 240,411,672       $ 1,206,868,032     $ (1,312,928,496)         $ 646             $ (53,445)           $ 134,298,409           $ 127,909       

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

(f) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(g) 

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

 

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

 

7   Invesco Summit Fund

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2022

 

Information Technology

        35.11 %

Consumer Discretionary

        14.28

Health Care

        13.32

Communication Services

        11.67

Industrials

        8.28

Energy

        4.07

Financials

        3.71

Real Estate

        2.96

Consumer Staples

        2.86

Materials

        2.54

Money Market Funds Plus Other Assets Less Liabilities

        1.20
 

 

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

 

8   Invesco Summit Fund

Statement of Assets and Liabilities

April 30, 2022

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $1,969,688,920)*

    $ 2,852,890,628  

 

  

Investments in affiliated money market funds, at value
(Cost $134,297,761)

      134,298,409  

 

  

Foreign currencies, at value
(Cost $114,977)

      113,305  

 

  

Receivable for:

   

Investments sold

      22,477,608  

 

  

Fund shares sold

      468,150  

 

  

Dividends

      3,402,986  

 

  

Investment for trustee deferred compensation and retirement plans

      339,731  

 

  

Other assets

      341,893  

 

  

Total assets

      3,014,332,710  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      28,598,992  

 

  

Fund shares reacquired

      1,160,794  

 

  

Amount due custodian

      979,198  

 

  

Collateral upon return of securities loaned

      94,965,268  

 

  

Accrued fees to affiliates

      758,603  

 

  

Accrued other operating expenses

      45,940  

 

  

Trustee deferred compensation and retirement plans

      378,924  

 

  

Total liabilities

      126,887,719  

 

  

Net assets applicable to shares outstanding

    $ 2,887,444,991  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 1,831,520,411  

 

  

Distributable earnings

      1,055,924,580  

 

  
   $ 2,887,444,991  

 

  

Net Assets:

   

Class A

    $ 347,773,335  

 

  

Class C

    $ 21,027,049  

 

  

Class P

    $ 2,448,003,078  

 

  

Class S

    $ 4,186,846  

 

  

Class Y

    $ 48,494,742  

 

  

Class R5

    $ 901,609  

 

  

Class R6

    $ 17,058,332  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      16,688,287  

 

  

Class C

      1,231,051  

 

  

Class P

      114,053,687  

 

  

Class S

      197,890  

 

  

Class Y

      2,258,908  

 

  

Class R5

      41,749  

 

  

Class R6

      787,376  

 

  

Class A:

   

Net asset value per share

    $ 20.84  

 

  

Maximum offering price per share
(Net asset value of $20.84 ÷ 94.50%)

    $ 22.05  

 

  

Class C:

   

Net asset value and offering price per share

    $ 17.08  

 

  

Class P:

   

Net asset value and offering price per share

    $ 21.46  

 

  

Class S:

   

Net asset value and offering price per share

    $ 21.16  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 21.47  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 21.60  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 21.66  

 

  

 

*

At April 30, 2022, securities with an aggregate value of $91,039,949 were on loan to brokers.

 

 

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

 

9   Invesco Summit Fund

Statement of Operations

For the six months ended April 30, 2022

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $314,806)

    $ 11,341,479  

 

  

Dividends from affiliated money market funds (includes securities lending income of $201,204)

      211,491  

 

  

Total investment income

      11,552,970  

 

  

Expenses:

   

Advisory fees

      10,921,777  

 

  

Administrative services fees

      265,218  

 

  

Custodian fees

      11,677  

 

  

Distribution fees:

   

Class A

      521,566  

 

  

Class C

      133,344  

 

  

Class P

      1,465,714  

 

  

Class S

      3,731  

 

  

Transfer agent fees – A, C, P, S and Y

      1,090,864  

 

  

Transfer agent fees – R5

      693  

 

  

Transfer agent fees – R6

      3,205  

 

  

Trustees’ and officers’ fees and benefits

      21,105  

 

  

Registration and filing fees

      111,560  

 

  

Reports to shareholders

      209  

 

  

Professional services fees

      18,042  

 

  

Other

      9,107  

 

  

Total expenses

      14,577,812  

 

  

Less: Fees waived and/or expense offset arrangement(s)

      (7,976 ) 

 

  

Net expenses

      14,569,836  

 

  

Net investment income (loss)

      (3,016,866 ) 

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      186,028,445  

 

  

Affiliated investment securities

      (53,445 ) 

 

  

Foreign currencies

      (6,970 ) 

 

  
     185,968,030  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      (1,127,407,339 ) 

 

  

Affiliated investment securities

      646  

 

  

Foreign currencies

      (61,423 ) 

 

  
     (1,127,468,116 ) 

 

  

Net realized and unrealized gain (loss)

      (941,500,086 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (944,516,952 ) 

 

  

 

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

 

10   Invesco Summit Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2022 and the year ended October 31, 2021

(Unaudited)

 

    

April 30,

2022

    

October 31,

2021

  

 

  

Operations:

     

Net investment income (loss)

    $ (3,016,866 )    $ (14,684,582 ) 

 

  

Net realized gain

      185,968,030       682,759,961  

 

  

Change in net unrealized appreciation (depreciation)

      (1,127,468,116 )      419,938,569  

 

  

Net increase (decrease) in net assets resulting from operations

      (944,516,952 )      1,088,013,948  

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (78,272,197 )      (21,485,204 ) 

 

  

Class C

      (5,901,014 )      (2,085,345 ) 

 

  

Class P

      (532,643,509 )      (188,404,827 ) 

 

  

Class S

      (908,447 )      (318,745 ) 

 

  

Class Y

      (13,495,999 )      (4,370,535 ) 

 

  

Class R5

      (286,940 )      (69,406 ) 

 

  

Class R6

      (3,733,745 )      (1,159,595 ) 

 

  

Total distributions from distributable earnings

      (635,241,851 )      (217,893,657 ) 

 

  

Share transactions–net:

     

Class A

      63,835,549       86,123,809  

 

  

Class C

      3,061,219       525,710  

 

  

Class P

      408,962,083       (59,048,995 ) 

 

  

Class S

      824,825       (76,652 ) 

 

  

Class Y

      (5,308,571 )      23,494,634  

 

  

Class R5

      (308,908 )      504,909  

 

  

Class R6

      2,669,830       2,413,489  

 

  

Net increase in net assets resulting from share transactions

      473,736,027       53,936,904  

 

  

Net increase (decrease) in net assets

      (1,106,022,776 )      924,057,195  

 

  

Net assets:

     

Beginning of period

      3,993,467,767       3,069,410,572  

 

  

End of period

    $ 2,887,444,991     $ 3,993,467,767  

 

  

 

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

 

11   Invesco Summit Fund

Financial Highlights

(Unaudited)

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

 

      Net asset
value,
beginning
of period		    Net
investment
income
(loss)(a)		  

Net gains
(losses)

on securities
(both
realized and
unrealized)

   Total from
investment
operations		   Dividends
from net
investment
income		   Distributions
from net
realized
gains		   Total
distributions		   Net asset
value, end
of period		    Total
return (b)		   Net assets,
end of period
(000’s omitted)		    Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed		   Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed		   Ratio of net
investment
income
(loss)
to average
net assets		   Portfolio
turnover (c)

Class A

                                                            

Six months ended 04/30/22

        $33.40        $(0.04 )       $(7.06 )       $(7.10 )       $          –       $(5.46 )       $(5.46 )       $20.84        (24.27 )%       $     347,773        0.97 %(d)       0.97 %(d)       (0.30 )%(d)       38 %

Year ended 10/31/21

        26.25        (0.16 )       9.21       9.05       –       (1.90 )       (1.90 )       33.40        35.85       476,470        0.99       0.99       (0.53 )       47

Year ended 10/31/20

        21.77        (0.07 )       6.42       6.35       –       (1.87 )       (1.87 )       26.25        31.23       299,616        0.99       0.99       (0.30 )       38

Year ended 10/31/19

        20.75        (0.04 )       3.17       3.13       –       (2.11 )       (2.11 )       21.77        17.36       169,883        1.01       1.01       (0.18 )       29

Year ended 10/31/18

        20.14        (0.05 )       1.41       1.36       –       (0.75 )       (0.75 )       20.75        6.95       114,570        1.02       1.02       (0.24 )       35

Year ended 10/31/17

        16.56        (0.02 )       4.60       4.58       –       (1.00 )       (1.00 )       20.14        29.20       77,519        1.04       1.04       (0.13 )       31

Class C

                                                            

Six months ended 04/30/22

        28.53        (0.11 )       (5.88 )       (5.99 )       –       (5.46 )       (5.46 )       17.08        (24.57 )       21,027        1.72 (d)        1.72 (d)        (1.05 )(d)       38

Year ended 10/31/21

        22.82        (0.34 )       7.95       7.61       –       (1.90 )       (1.90 )       28.53        34.86       31,198        1.74       1.74       (1.28 )       47

Year ended 10/31/20

        19.29        (0.22 )       5.62       5.40       –       (1.87 )       (1.87 )       22.82        30.25       24,427        1.74       1.74       (1.05 )       38

Year ended 10/31/19

        18.77        (0.17 )       2.80       2.63       –       (2.11 )       (2.11 )       19.29        16.43       15,470        1.76       1.76       (0.93 )       29

Year ended 10/31/18

        18.41        (0.19 )       1.30       1.11       –       (0.75 )       (0.75 )       18.77        6.22       16,792        1.77       1.77       (0.99 )       35

Year ended 10/31/17

        15.34        (0.15 )       4.22       4.07       –       (1.00 )       (1.00 )       18.41        28.15       9,325        1.79       1.79       (0.88 )       31

Class P

                                                            

Six months ended 04/30/22

        34.21        (0.02 )       (7.27 )       (7.29 )       –       (5.46 )       (5.46 )       21.46        (24.25 )       2,448,003        0.82 (d)        0.82 (d)        (0.15 )(d)       38

Year ended 10/31/21

        26.80        (0.12 )       9.43       9.31       –       (1.90 )       (1.90 )       34.21        36.09       3,369,237        0.84       0.84       (0.38 )       47

Year ended 10/31/20

        22.16        (0.04 )       6.55       6.51       –       (1.87 )       (1.87 )       26.80        31.42       2,675,601        0.84       0.84       (0.15 )       38

Year ended 10/31/19

        21.05        (0.01 )       3.23       3.22       –       (2.11 )       (2.11 )       22.16        17.55       2,204,984        0.86       0.86       (0.03 )       29

Year ended 10/31/18

        20.39        (0.02 )       1.43       1.41       (0.00 )       (0.75 )       (0.75 )       21.05        7.13       2,024,211        0.87       0.87       (0.09 )       35

Year ended 10/31/17

        16.75        0.00       4.65       4.65       (0.01 )       (1.00 )       (1.01 )       20.39        29.32       2,044,421        0.89       0.89       0.02       31

Class S

                                                            

Six months ended 04/30/22

        33.81        (0.03 )       (7.16 )       (7.19 )       –       (5.46 )       (5.46 )       21.16        (24.24 )       4,187        0.87 (d)        0.87 (d)        (0.20 )(d)       38

Year ended 10/31/21

        26.52        (0.13 )       9.32       9.19       –       (1.90 )       (1.90 )       33.81        36.02       5,626        0.89       0.89       (0.43 )       47

Year ended 10/31/20

        21.95        (0.05 )       6.49       6.44       –       (1.87 )       (1.87 )       26.52        31.40       4,435        0.89       0.89       (0.20 )       38

Year ended 10/31/19

        20.89        (0.02 )       3.19       3.17       –       (2.11 )       (2.11 )       21.95        17.44       3,711        0.91       0.91       (0.08 )       29

Year ended 10/31/18

        20.24        (0.03 )       1.43       1.40       –       (0.75 )       (0.75 )       20.89        7.12       3,405        0.92       0.92       (0.14 )       35

Year ended 10/31/17

        16.63        (0.01 )       4.62       4.61       (0.00 )       (1.00 )       (1.00 )       20.24        29.29       3,521        0.94       0.94       (0.03 )       31

Class Y

                                                            

Six months ended 04/30/22

        34.20        (0.01 )       (7.26 )       (7.27 )       –       (5.46 )       (5.46 )       21.47        (24.19 )       48,495        0.72 (d)        0.72 (d)        (0.05 )(d)       38

Year ended 10/31/21

        26.77        (0.09 )       9.42       9.33       –       (1.90 )       (1.90 )       34.20        36.22       85,356        0.74       0.74       (0.28 )       47

Year ended 10/31/20

        22.12        (0.01 )       6.53       6.52       –       (1.87 )       (1.87 )       26.77        31.53       47,894        0.74       0.74       (0.05 )       38

Year ended 10/31/19

        21.00        0.02       3.21       3.23       –       (2.11 )       (2.11 )       22.12        17.65       13,414        0.76       0.76       0.07       29

Year ended 10/31/18

        20.34        0.00       1.43       1.43       (0.02 )       (0.75 )       (0.77 )       21.00        7.25       14,818        0.77       0.77       0.01       35

Year ended 10/31/17

        16.71        0.02       4.64       4.66       (0.03 )       (1.00 )       (1.03 )       20.34        29.46       13,881        0.79       0.79       0.12       31

Class R5

                                                            

Six months ended 04/30/22

        34.37        (0.01 )       (7.30 )       (7.31 )       –       (5.46 )       (5.46 )       21.60        (24.18 )       902        0.76 (d)        0.76 (d)        (0.09 )(d)       38

Year ended 10/31/21

        26.91        (0.10 )       9.46       9.36       –       (1.90 )       (1.90 )       34.37        36.14       1,848        0.77       0.77       (0.31 )       47

Year ended 10/31/20

        22.22        (0.02 )       6.58       6.56       –       (1.87 )       (1.87 )       26.91        31.57       1,002        0.76       0.76       (0.07 )       38

Year ended 10/31/19

        21.09        0.01       3.23       3.24       –       (2.11 )       (2.11 )       22.22        17.63       96        0.77       0.77       0.06       29

Year ended 10/31/18

        20.42        0.01       1.43       1.44       (0.02 )       (0.75 )       (0.77 )       21.09        7.30       73        0.72       0.72       0.06       35

Year ended 10/31/17

        16.77        0.03       4.66       4.69       (0.04 )       (1.00 )       (1.04 )       20.42        29.56       20        0.76       0.76       0.15       31

Class R6

                                                            

Six months ended 04/30/22

        34.45        (0.00 )       (7.33 )       (7.33 )       –       (5.46 )       (5.46 )       21.66        (24.19 )       17,058        0.69 (d)        0.69 (d)        (0.02 )(d)       38

Year ended 10/31/21

        26.95        (0.07 )       9.47       9.40       –       (1.90 )       (1.90 )       34.45        36.24       23,732        0.70       0.70       (0.24 )       47

Year ended 10/31/20

        22.24        (0.00 )       6.58       6.58       –       (1.87 )       (1.87 )       26.95        31.64       16,436        0.70       0.70       (0.01 )       38

Year ended 10/31/19

        21.09        0.03       3.23       3.26       –       (2.11 )       (2.11 )       22.24        17.73       12,556        0.71       0.71       0.12       29

Year ended 10/31/18

        20.42        0.01       1.43       1.44       (0.02 )       (0.75 )       (0.77 )       21.09        7.29       11,057        0.72       0.72       0.06       35

Year ended 10/31/17(e)

        17.61        0.01       2.80       2.81       –       –       –       20.42        15.96       12        0.77 (d)        0.77 (d)        0.14 (d)        31

 

(a) 

Calculated using average shares outstanding.

(b) 

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c) 

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

(d) 

Annualized.

(e) 

Commencement date of April 04, 2017.

 

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

 

12   Invesco Summit Fund

Notes to Financial Statements

April 30, 2022

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Summit Fund (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. The Fund is classified as non-diversified. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

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

The Fund currently consists of seven different classes of shares: Class A, Class C, Class P, Class S, Class Y, Class R5 and Class R6. Class P shares are not sold to members of the general public. Only shareholders who had accounts in the AIM Summit Investors Plans I and AIM Summit Investors Plans II at the close of business on December 8, 2006, may continue to purchase Class P shares as described in the Fund’s prospectus. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waiver shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class P, Class S, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

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

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

A.

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

A security listed or traded on an exchange is 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 may be valued up to 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 debt securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

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

 

13   Invesco Summit Fund

settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

C.

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

D.

Distributions - Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders.

Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F.

Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

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

H.

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

I.

Securities Lending - The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the Investment Company Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

Invesco Advisers, Inc. (the “Adviser” or “Invesco”) serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon (the “BNYM”) also continues to serve as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2022, the Fund paid the Adviser $5,465 in fees for securities lending agent services.

J.

Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in

 

14   Invesco Summit Fund

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

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

K.

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

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

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

L.

Other Risks - The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.

M.

COVID-19 Risk - The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $ 10 million

      1.000%  

 

  

Next $140 million

      0.750%  

 

  

Over $150 million

      0.625%  

 

  

For the six months ended April 30, 2022, the effective advisory fee rate incurred by the Fund was 0.63%.

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

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class P, Class S, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 1.85%, 1.90%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended April 30, 2022, the Adviser waived advisory fees of $7,311.

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 six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2022, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

 

15   Invesco Summit Fund

The Fund has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class P, Class S, Class Y, Class R5 and Class R6 shares. The Fund has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C shares, Class P shares and Class S 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, 0.10% of the average daily net assets of Class P shares and 0.15% of the average daily net assets of Class S shares. The Fund pursuant to the Class C Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of Class A and Class C shares, 0.10% of the average daily net assets of Class P shares and 0.15% of the average daily net assets of Class S shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2022, 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 six months ended April 30, 2022, IDI advised the Fund that IDI retained $101,815 in front-end sales commissions from the sale of Class A shares and $4,280 and $2,274 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended April 30, 2022, the Fund incurred $104,596 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2022. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1        Level 2        Level 3        Total  

 

  

Investments in Securities

                  

 

  

Common Stocks & Other Equity Interests

    $ 2,618,948,950        $ 233,941,678          $–        $ 2,852,890,628  

 

  

Money Market Funds

      39,333,141          94,965,268            –          134,298,409  

 

  

Total Investments

    $ 2,658,282,091        $ 328,906,946          $–        $ 2,987,189,037  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2022, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $665.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

 

16   Invesco Summit Fund

NOTE 7–Tax Information

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. 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 did not have a capital loss carryforward as of October 31, 2021.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2022 was $1,331,668,031 and $1,530,668,829, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $1,065,662,028  

 

  

Aggregate unrealized (depreciation) of investments

      (192,004,719 ) 

 

  

Net unrealized appreciation of investments

      $   873,657,309  

 

  

Cost of investments for tax purposes is $2,113,531,728.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     April 30, 2022     October 31, 2021  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      1,784,254     $ 46,165,566       4,717,122     $ 144,763,524  

 

  

Class C

      148,483       3,125,800       331,484       8,717,421  

 

  

Class P

      519,679       13,813,007       848,407       26,475,123  

 

  

Class S

      2,096       50,989       7,275       225,971  

 

  

Class Y

      1,120,917       28,408,539       4,206,882       135,569,317  

 

  

Class R5

      1,713       44,817       23,018       714,053  

 

  

Class R6

      63,048       1,642,594       176,408       5,572,144  

 

  

Issued as reinvestment of dividends:

         

Class A

      2,912,907       74,395,655       729,758       20,527,681  

 

  

Class C

      262,298       5,505,631       79,694       1,927,797  

 

  

Class P

      19,723,009       518,517,916       6,401,306       184,165,559  

 

  

Class S

      34,274       888,373       10,972       312,050  

 

  

Class Y

      475,616       12,499,184       146,242       4,203,003  

 

  

Class R5

      10,774       284,868       2,336       67,515  

 

  

Class R6

      134,215       3,559,383       39,106       1,131,717  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      41,369       1,044,915       163,457       4,930,408  

 

  

Class C

      (50,016 )      (1,044,915 )      (190,458 )      (4,930,408 ) 

 

  

Reacquired:

         

Class A

      (2,313,774 )      (57,770,587 )      (2,760,766 )      (84,097,804 ) 

 

  

Class C

      (223,172 )      (4,525,297 )      (197,490 )      (5,189,100 ) 

 

  

Class P

      (4,683,503 )      (123,368,840 )      (8,580,070 )      (269,689,677 ) 

 

  

Class S

      (4,891 )      (114,537 )      (19,097 )      (614,673 ) 

 

  

Class Y

      (1,833,624 )      (46,216,294 )      (3,645,895 )      (116,277,686 ) 

 

  

Class R5

      (24,504 )      (638,593 )      (8,821 )      (276,659 ) 

 

  

Class R6

      (98,701 )      (2,532,147 )      (136,618 )      (4,290,372 ) 

 

  

Net increase in share activity

      18,002,467     $ 473,736,027       2,344,252     $ 53,936,904  

 

  

 

17   Invesco Summit 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, 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 November 1, 2021 through April 30, 2022.

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 or contingent deferred sales charges on redemptions, 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.

 

          ACTUAL  

HYPOTHETICAL

(5% annual return before
expenses)

     
     Beginning
    Account Value    
(11/01/21)		   Ending
    Account Value    
(04/30/22)1		   Expenses
      Paid During      
Period		   Ending
    Account Value    
(04/30/22)		   Expenses
    Paid During    
Period2		         Annualized      
Expense Ratio

Class A

   $1,000.00   $757.30   $4.23   $1,019.98   $4.86   0.97%

Class C

     1,000.00     754.30     7.48     1,016.27     8.60   1.72    

Class P

     1,000.00     757.50     3.57     1,020.73     4.11   0.82    

Class S

     1,000.00     757.60     3.79     1,020.48     4.36   0.87    

Class Y

     1,000.00     758.10     3.14     1,021.22     3.61   0.72    

Class R5

     1,000.00     758.20     3.31     1,021.03     3.81   0.76    

Class R6

     1,000.00     758.50     3.01     1,021.37     3.46   0.69    

 

1 

The actual ending account value is based on the actual total return of the Fund for the period November 1, 2021 through April 30, 2022, 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.

 

18   Invesco Summit Fund

 

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LOGO

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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

∎ Fund reports and prospectuses

∎ Quarterly statements

∎ Daily confirmations

∎ Tax forms

 

 

Invesco mailing information

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

 

 

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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    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/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

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

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

 

LOGO

 

SEC file number(s): 811-01424 and 002-25469                   Invesco Distributors, Inc.    SUM-SAR-1                                         

ITEM 2.

CODE OF ETHICS.

Not applicable for a semi-annual report.

 

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

 

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

 

ITEM 6.

SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

 

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

 

ITEM 11.

CONTROLS AND PROCEDURES.

 

  (a)

As of June 16, 2022, 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 June 16, 2022, 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-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.

 

  (b)

There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

ITEM 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 13.

EXHIBITS.

 

13(a) (1)    Not applicable.
13(a) (2)    Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002.
13(a) (3)    Not applicable.
13(a) (4)    Not applicable.
13(b)    Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002.

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/ Sheri Morris

    Sheri Morris
    Principal Executive Officer
Date:     July 6, 2022

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:  

  /s/ Sheri Morris

    Sheri Morris
    Principal Executive Officer
Date:     July 6, 2022

 

By:  

  /s/ Adrien Deberghes

    Adrien Deberghes
    Principal Financial Officer
Date:     July 6, 2022