nvcsr

Letter to Shareholders

Philip Taylor

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the period covered by this report. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.

Near the end of this letter, I’ve provided the number to call if you have specific questions about your account; I’ve also provided my email address so you can send a general Invesco-related question or comment to me directly.

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls. This approach enables our portfolio managers, analysts and researchers to pursue consistent results across market cycles.

Second, we offer you a broad range of investment products that can be tailored to your needs and goals. In addition to traditional mutual funds, we manage a variety of other investment products. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.

And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do. We direct all of our intellectual capital and global resources toward helping investors achieve their long-term financial objectives.

Your financial adviser can also help you as you pursue your financial goals. Your financial adviser is familiar with your individual goals and risk tolerance, and can answer questions about changing market conditions and your changing investment needs.

Our customer focus

Short-term market conditions can change from time to time, sometimes suddenly and sometimes dramatically. But regardless of market trends, our commitment to putting you first, helping you achieve your financial objectives and providing you with excellent customer service will not change.

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

I want to thank our existing Invesco clients for placing your faith in us. And I want to welcome our new Invesco clients: We look forward to serving your needs in the years ahead. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Core Plus Bond Fund

Bruce Crockett

Dear Fellow Shareholders:

Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.

To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.

We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.

It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Core Plus Bond Fund

Management’s Discussion of Fund Performance

Performance summary

For the reporting period ended August 31, 2010, Invesco Core Plus Bond Fund, Class A shares at net asset value (NAV), outperformed the Fund’s broad market and style-specific index, the Barclays Capital U.S. Aggregate Index, due mainly to overweight exposure to non-government bonds relative to the index.

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

Fund vs. Indexes

Total returns, 8/31/09 to 8/31/10, 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	10.26	%

Class B Shares	9.34

Class C Shares	9.44

Class R Shares	9.88

Class Y Shares	10.43

Institutional Class Shares	10.43

Barclays Capital U.S. Aggregate Index^▼ (Broad Market/Style-Specific Index)	9.18

Lipper Intermediate Investment Grade Debt Funds Index^▼ (Peer Group Index)	12.70


^▼		Lipper Inc.

How we invest

We invest primarily in a mix of U.S. dollar denominated investment grade fixed income securities, particularly U.S. government, corporate and mortgage securities. Under normal market conditions, the Fund seeks to maintain an average weighted maturity range between five and 10 years. The Fund may invest up to 20% of its total assets in securities rated below investment grade at the time of investment. The Fund may invest a portion or all of its total assets in securities issued by foreign governments or corporations; provided, however, that the Fund may not invest more than 30% of its total assets in non-U.S. dollar denominated securities. The Fund may purchase and sell options, futures contracts, options on futures contracts, forward contracts, swaps (including currency, interest rate, credit default, total return and index swaps and swap options) and structured products, which are derivative instruments, for various portfolio management purposes and to manage risks.

We believe dynamic and complex fixed income markets may create opportunities

for investors that are best captured by specialist decision makers interconnected as a global team. We use this philosophy in an effort to generate a high level of current income consistent with concern for safety of principal.

Our security selection is supported by a team of specialists. Team members conduct top-down macroeconomic as well as bottom-up analysis on individual securities. Recommendations are communicated to portfolio managers through proprietary technology that allows all investment professionals to communicate in a timely manner.

Portfolio construction begins with a well-defined Fund design that establishes the target investment vehicles for generating the desired “alpha” (the extra return above a specific benchmark) as well as the risk parameters for the Fund. Investment vehicles are evaluated for liquidity and risk versus relative value.

Sell decisions are based on:

A conscious decision to alter the Fund’s macro risk exposure (for example, duration, yield curve positioning or sector exposure).

n		The need to limit or reduce exposure to a particular sector or issuer.

n		Degradation of an issuer’s credit quality.

n		Realignment of a valuation target.

n		Presentation of a better relative value opportunity.

Market conditions and your Fund

Market conditions during the 12-month period covered in this report were influenced by two broad themes: private sector recovery and concerns over sovereign creditworthiness. In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at extremely low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in 2009. Recently, however, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for Greece and other southern eurozone countries) and became a focal point of investor concern in the first half of 2010.

In the U.S., economic recovery was present, although uneven, as stubbornly high unemployment and weakness in output continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an estimated annual rate of 1.7% in the second quarter of 2010, following 3.7% growth in the first quarter, and 1.6% and 5.0% annual rates of growth during the third and forth quarters of 2009, respectively.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² In the latest Federal Open Market Committee meeting minutes, the board of

Portfolio Composition

By security type


U.S. Dollar Denominated Bonds & Notes	35.3	%

U.S. Government Sponsored
Mortgage-Backed Securities	29.1

U.S. Treasury Securities	23.9

Asset-Backed Securities	15.0

Municipal Obligations	0.8

Money Market Funds
Plus Other Assets Less Liabilities	-4.1

Top 10 Fixed Income Issuers*



1.	Federal National Mortgage Association	15.2	%

2.	Federal Home Loan Mortgage Corp.	14.0

3.	U.S. Treasury Notes	12.4

4.	U.S. Treasury Bills	8.8

5.	U.S. Treasury Bonds	2.7

6.	Bear Stearns
	Commercial Mortgage Securities	2.2

7.	Morgan Stanley Capital I	1.6

8.	GS Morgan Securities Corp. II	1.4

9.	Freddie Mac REMICS	1.3

10.	RBSCF Trust	1.1


Total Net Assets		$9.4 million

Total Number of Holdings*		235

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

*Excluding money market fund holdings.

Invesco Core Plus Bond Fund

governors indicated a belief “that the pace of recovery in output and employment has slowed in recent months” and “the pace of economic recovery is likely to be more modest in the near term than had been anticipated.”² Consequently, the Fed decided to continue to support the U.S. economic recovery in a context of price stability and low interest rates by reinvesting the principal payments from agency debt and agency mortgage backed securities (MBS) that it holds into longer-term U.S. Treasuries.²

The broad U.S. bond market, as measured by the Barclays Capital U.S. Aggregate Index, generated positive total return for the trailing 12 months³, as falling interest rates across maturities combined with tighter credit spreads (the difference between the yields of U.S. Treasuries and other types of fixed income securities that carry credit risk) reflected the rise in the prices of fixed income assets. During the second quarter of 2010, sovereign risks in Europe, most notably in Greece, caused investors to scale back their risk profile and embrace the safe haven of U.S. government and agency securities, though the impact was not enough to erase gains in non-government bonds over the rest of the Fund’s fiscal year.

The Fund at NAV generated positive returns and outperformed its benchmark for the period. Sector and security selection both contributed to the positive returns. Sustained overweight positioning in investment grade corporate credit, commercial mortgage backed securities (CMBS) and limited out-of-index exposure to high yield corporate bond sectors, benefited the Fund as credit spreads narrowed throughout the Fund’s fiscal year. The Fund’s underweight exposure to government and government related bond sectors relative to its style index were also advantageous as those sectors’ returns, although positive on an absolute basis, underperformed versus non-government bonds.

Security selection’s contribution to portfolio performance was significant and broad-based for the period, on both an absolute and relative basis. The Fund’s holdings within the consumer cyclical, telecommunications/media/technology and transportation sub-sectors produced notable outperformance versus their benchmark counterparts. The performance of individual securities within CMBS, agency MBS, credit card asset backed securities and the financials sub-sectors detracted from Fund performance.

The Fund uses active duration and yield curve positioning for risk management and for generating alpha versus its style-specific benchmark. We may use derivative instruments such as U.S. Treasury futures

and interest rate swaps, to help manage duration and yield curve exposure. Duration measures a portfolio’s price sensitivity to interest rate changes, with a shorter duration portfolio tending to be less sensitive to these changes. The contribution to performance from duration positioning was mixed over the period, but overall it had a small negative effect. The Fund maintained a shorter-than-benchmark duration positioning relative to the style-specific index as interest rates trended lower over most of the period.

The contribution to performance from the Fund’s yield curve positioning (emphasizing points on the yield curve with the greatest return potential) was also mixed for the period, but overall was another small detractor from performance relative to the benchmark. On average, the portfolio favored yield curve positioning that emphasized stability in intermediate maturities and did not fully participate in upside performance of the index. Rates fell across the yield curve, benefiting the index’s higher percentage of assets in intermediate and longer maturity securities.

During the period, the Fund benefited from incremental income earned by engaging in dollar (mortgage) roll activity, a type of repurchase transaction in the highly liquid TBA market for Agency MBS. A dollar roll involves the Fund selling a mortgage-backed security to a financial institution, with an agreement to repurchase a substantially similar security at an agreed upon price and date. Cash proceeds from the sale may be invested in short-term instruments and the income from these investments, together with any additional fee income received on the sale, generate income for the Fund.

Thank you for investing in Invesco Core Plus Bond Fund and for sharing our long-term investment horizon.

1 Bureau of Economic Analysis
2 U.S. Federal Reserve
3 Barclays Capital

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

See important Fund and index disclosures later in this report.

Cynthia Brien

Chartered Financial Analyst, portfolio manager, is manager of Invesco Core Plus Bond Fund. She joined Invesco in 1996. Ms. Brien earned a B.B.A. from The University of Texas at Austin.

Charles Burge

Portfolio manager, is manager of Invesco Core Plus Bond Fund. He joined Invesco in 2002. Mr. Burge earned a B.S. in economics from Texas A&M University and an M.B.A. in finance and accounting from Rice University.

Claudia Calich

Portfolio manager, is manager of Invesco Core Plus Bond Fund. She joined Invesco in 2004. Ms. Calich earned a B.A. in economics from Susquehanna University and an M.A. in international economics from the International University of Japan in Nilgata.

John Craddock

Chartered Financial Analyst, portfolio manager, is manager of Invesco Core Plus Bond Fund. He joined Invesco in 1999. Mr. Craddock earned a B.S. in mechanical engineering from Clemson University and an M.B.A. from Georgia Tech’s Dupree School of Management with a concentration finance.

Peter Ehret

Chartered Financial Analyst, portfolio manager, is manager of Invesco Core Plus Bond Fund. Mr. Ehret joined Invesco in 2001. He graduated cum laude with a B.S. in economics from the University of Minnesota. He also earned an M.S. in real estate appraisal and investment analysis from the University of Wisconsin-Madison.

Invesco Core Plus Bond Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (6/3/09)		6.98	%

1	Year	5.05


Class B Shares

Inception (6/3/09)		7.21	%

1	Year	4.34


Class C Shares

Inception (6/3/09)		10.44	%

1	Year	8.44


Class R Shares

Inception (6/3/09)		10.91	%

1	Year	9.88


Class Y Shares

Inception (6/3/09)		11.46	%

1	Year	10.43

Institutional Class Shares

Inception (6/3/09)		11.46	%

1	Year	10.43

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

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (6/3/09)		5.59	%

1	Year	5.94


Class B Shares

Inception (6/3/09)		5.88	%

1	Year	5.31


Class C Shares

Inception (6/3/09)		9.68	%

1	Year	9.41


Class R Shares

Inception (6/3/09)		10.13	%

1	Year	10.86


Class Y Shares

Inception (6/3/09)		10.68	%

1	Year	11.41


Institutional Class Shares

Inception (6/3/09)		10.78	%

1	Year	11.51

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 0.90%, 1.65%, 1.65%, 1.15%, 0.65% and 0.65%, respectively. ¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 2.67%, 3.42%, 3.42%, 2.92%, 2.42% and 2.30%,

respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least December 31, 2011. See current prospectus for more information.

continued from page 8

The Lipper Intermediate Investment Grade Debt Funds Index is an unmanaged index considered representative of intermediate investment grade debt funds tracked by Lipper.

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

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer

group, if applicable, reflects fund expenses; performance of a market index does not.

Other information

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

The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally

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

Industry 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.

Invesco Core Plus Bond Fund

Invesco Core Plus Bond Fund’s investment objective is total return.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

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

Principal risks of investing in the Fund

n		The Fund may engage in frequent trading of portfolio securities, which may result in added expenses, lower return and increased tax liability.

n		Many of the instruments that the Fund expects to hold may be subject to the risk that the other party to a contract will not fulfill its contractual obligations.

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

n		The dollar value of the Fund’s foreign investments will be affected by changes in the exchange rates between the dollar and the currencies in which those investments are traded.

n		The Fund may use enhanced investment techniques such as derivatives. The principal risk of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Derivatives are subject to counterparty risk — the risk that the other party will not complete the transaction with the Fund.

n		Securities issued by foreign companies and governments located in developing countries may be affected more negatively by inflation, devaluation of their currencies, higher transaction costs, delays in settlement, adverse political developments, the introduction of capital controls, withholding taxes, nationalization of private assets, expropriation, social unrest, war or lack of timely information than those in developed countries.

n		The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

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

n		Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

n		Leveraging entails risks such as magnifying changes in the value of the portfolio’s securities.

n		The Fund may invest a large percentage of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.

n		The Fund may hold illiquid securities that it is unable to sell at the preferred time or price and could lose its entire investment in such securities.

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

n		The Fund may invest in mortgage- and asset-backed securities that are subject to prepayment or call risk, which is the risk that the borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a result, the Fund may reinvest these early payments at lower interest rates, thereby reducing the Fund’s income. Conversely, when interest rates rise, prepayments may happen more slowly, causing the security to lengthen in duration. Longer duration securities tend to be more volatile. Securities may be prepaid at a price less than the original purchase value.

n		The Fund is non-diversified and can invest a greater portion of its assets in a single issuer. A change in the value of the issuer could affect the value of the Fund more than if it was a diversified fund.

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

n		The Fund may invest in obligations issued by U.S. government agencies and instrumentalities that may receive varying levels of support from the government, which could affect the Fund’s ability to recover should they default.

About indexes used in this report

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

continued on page 7

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		ACPSX
Class B Shares		CPBBX
Class C Shares		CPCFX
Class R Shares		CPBRX
Class Y Shares		CPBYX
Institutional Class Shares		CPIIX

Invesco Core Plus Bond Fund

Schedule of Investments^(a)

August 31, 2010


	Principal
	Amount		Value

Bonds & Notes–35.24%
Advertising–0.05%
Lamar Media Corp., Sr. Sub. Gtd. Notes, 7.88%, 04/15/18^(b)	$	5,000	$	5,175

Aerospace & Defense–0.23%
BE Aerospace, Inc., Sr. Unsec. Notes, 8.50%, 07/01/18		10,000		10,819

Bombardier Inc. (Canada), Sr. Notes, 7.50%, 03/15/18^(b)		5,000		5,331

7.75%, 03/15/20^(b)		5,000		5,375

				21,525

Agricultural Products–0.82%
Bunge Limited Finance Corp., Sr. Unsec. Gtd. Notes, 8.50%, 06/15/19		10,000		12,114

Cargill Inc., Sr. Unsec. Notes, 5.60%, 09/15/12^(b)		60,000		65,264

				77,378

Airlines–2.14%
American Airlines Pass Through Trust, Series 2001-2, Class A-1, Sec. Global Pass Through Ctfs., 6.98%, 04/01/11		58,853		59,515

Series 2001-2, Class A-2, Sec. Global Pass Through Ctfs., 7.86%, 10/01/11		50,000		51,812

Continental Airlines Inc., Series 2009-1, Class A, Pass Through Ctfs., 9.00%, 07/08/16		28,787		32,530

Series 2009-1, Class B, Global Pass Through Ctfs., 9.25%, 05/10/17		5,000		5,266

Delta Air Lines, Inc., Sr. Sec. Notes, 9.50%, 09/15/14^(b)		4,000		4,305

Series 2001-1, Class A-2, Sr. Sec. Pass Through Ctfs., 7.11%, 09/18/11		30,000		31,500

Series 2002-1, Class C, Sec. Pass Through Ctfs., 7.78%, 01/02/12		1,205		1,217

UAL Corp., Series 2009-1, Sr. Sec. Gtd. Global Pass Through Ctfs., 10.40%, 11/01/16		9,745		10,866

Series 2009-2A, Sec. Gtd. Global Pass Through Ctfs., 9.75%, 01/15/17		4,759		5,258

				202,269

Alternative Carriers–0.11%
Intelsat Intermediate Holding Co. S.A. (Bermuda), Sr. Unsec. Gtd. Global Notes, 9.50%, 02/01/15^(c)		10,000		10,400

Aluminum–0.05%
Century Aluminum Co., Sr. Sec. Notes, 8.00%, 05/15/14		5,000		4,947

Apparel Retail–0.40%
Collective Brands, Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 08/01/13		9,000		9,113

Limited Brands Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 06/15/19		25,000		28,312

				37,425

Auto Parts & Equipment–0.05%
Tenneco Inc., Sr. Unsec. Gtd. Global Notes, 8.13%, 11/15/15		5,000		5,213

Automobile Manufacturers–0.17%
Allison Transmission Inc., Sr. Unsec. Gtd. Notes, 11.00%, 11/01/15^(b)		5,000		5,400

Case New Holland Inc., Sr. Unsec. Gtd. Global Notes, 7.75%, 09/01/13		10,000		10,500

				15,900

Automotive Retail–0.23%
Advance Auto Parts Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20		20,000		21,275

Brewers–0.55%
Anheuser Busch InBev Worldwide Inc., Sr. Unsec. Gtd. Global Notes, 3.00%, 10/15/12		50,000		51,770

Broadcasting–1.56%
Allbritton Communications Co., Sr. Unsec. Global Notes, 8.00%, 05/15/18		5,000		4,956

Belo Corp., Sr. Unsec. Notes, 8.00%, 11/15/16		10,000		10,637

Clear Channel Worldwide Holdings Inc., Series B, Sr. Unsec. Gtd. Global Notes, 9.25%, 12/15/17		5,000		5,275

COX Communications Inc., Sr. Unsec. Notes, 6.75%, 03/15/11		40,000		41,280

9.38%, 01/15/19^(b)		25,000		34,382

Discovery Communications LLC, Sr. Unsec. Gtd. Global Notes, 6.35%, 06/01/40		40,000		45,059

LIN Television Corp., Sr. Unsec. Gtd. Notes, 8.38%, 04/15/18^(b)		5,000		5,113

				146,702

Building Products–0.32%
Building Materials Corp. of America, Sr. Gtd. Notes, 7.50%, 03/15/20^(b)		5,000		5,012

Gibraltar Industries Inc., Series B, Sr. Unsec. Gtd. Global Notes, 8.00%, 12/01/15		5,000		4,875

Ply Gem Industries Inc., Sr. Sec. Gtd. First & Second Lien Global Notes, 11.75%, 06/15/13		15,000		15,525

USG Corp., Sr. Unsec. Gtd. Notes, 9.75%, 08/01/14^(b)		5,000		5,200

				30,612

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

9 Invesco Core Plus Bond Fund


	Principal
	Amount		Value

Cable & Satellite–1.13%
British Sky Broadcasting Group PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 9.50%, 11/15/18^(b)	$	25,000	$	34,336

Cablevision Systems Corp., Sr. Unsec. Notes, 8.63%, 09/15/17^(b)		5,000		5,450

DirecTV Holdings LLC/DirecTV Financing Co. Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 05/15/16		60,000		66,450

				106,236

Casinos & Gaming–0.22%
Great Canadian Gaming Corp. (Canada), Sr. Unsec. Gtd. Notes, 7.25%, 02/15/15^(b)		5,000		5,069

Pinnacle Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 08/01/17		5,000		5,268

Wynn Las Vegas Capital LLC/Corp., Sec. First Mortgage Notes, 7.88%, 11/01/17^(b)		10,000		10,300

				20,637

Coal & Consumable Fuels–0.11%
CONSOL Energy Inc., Sr. Unsec. Gtd. Notes, 8.00%, 04/01/17^(b)		5,000		5,325

8.25%, 04/01/20^(b)		5,000		5,331

				10,656

Communications Equipment–0.57%
Motorola Inc., Sr. Unsec. Global Notes, 8.00%, 11/01/11		50,000		53,349

Construction, Farm Machinery & Heavy Trucks–0.06%
Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21		5,000		5,238

Consumer Finance–0.21%
Ally Financial Inc., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/01/31		10,000		9,925

Sr. Unsec. Gtd. Notes, 8.00%, 03/15/20^(b)		5,000		5,162

National Money Market Co. (Canada), Sr. Unsec. Gtd. Global Notes, 10.38%, 12/15/16		5,000		5,225

				20,312

Department Stores–0.72%
Macy’s Retail Holdings Inc., Sr. Unsec. Gtd. Notes, 5.35%, 03/15/12		65,000		67,600

Diversified Banks–1.46%
Bank of Nova Scotia (Canada), Sr. Unsec. Global Notes, 3.40%, 01/22/15		50,000		53,282

US Bancorp, Sr. Unsec. Notes, 2.00%, 06/14/13		45,000		46,128

Wachovia Corp.–Series G, Sr. Unsec. Medium-Term Notes, 5.50%, 05/01/13		35,000		38,463

				137,873

Diversified Capital Markets–0.06%
Credit Suisse AG (Switzerland), Sub. Global Notes, 5.40%, 01/14/20		5,000		5,274

Diversified Metals & Mining–0.53%
Freeport-McMoRan Copper & Gold Inc., Sr. Unsec. Notes, 8.38%, 04/01/17		45,000		50,048

Diversified Support Services–0.05%
Travelport LLC, Sr. Unsec. Gtd. Global Notes, 9.88%, 09/01/14		5,000		5,156

Electric Utilities–1.94%
Indiana Michigan Power Co., Sr. Unsec. Notes, 7.00%, 03/15/19		25,000		30,987

LSP Energy L.P./LSP Batesville Funding Corp., Series D, Sr. Sec. Bonds, 8.16%, 07/15/25		5,000		3,613

Ohio Power Co., Series M, Sr. Unsec. Notes, 5.38%, 10/01/21		30,000		34,432

Southern Co., Series A, Sr. Unsec. Notes, 5.30%, 01/15/12		60,000		63,507

Virginia Electric & Power Co., Sr. Unsec. Notes, 5.10%, 11/30/12		25,000		27,299

5.00%, 06/30/19		20,000		23,078

				182,916

Electrical Components & Equipment–0.29%
Belden Inc., Sr. Gtd. Notes, 9.25%, 06/15/19^(b)		25,000		27,125

Electronic Manufacturing Services–0.06%
Jabil Circuit, Inc., Sr. Unsec. Notes, 7.75%, 07/15/16		5,000		5,413

Environmental & Facilities Services–0.05%
Clean Harbors Inc., Sr. Sec. Gtd. Global Notes, 7.63%, 08/15/16		5,000		5,200

Food Retail–0.11%
Wm. Wrigley Jr. Co., Sr. Sec. Gtd. Floating Rate Notes, 1.91%, 06/28/11^(b)		10,000		10,030

Gas Utilities–0.06%
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20		5,000		5,275

Health Care Equipment–1.17%
Boston Scientific Corp., Sr. Unsec. Notes, 5.45%, 06/15/14		40,000		41,860

6.00%, 01/15/20		15,000		15,846

CareFusion Corp., Sr. Unsec. Global Notes, 4.13%, 08/01/12		50,000		52,420

				110,126

Health Care Facilities–0.17%
Community Health Systems Inc., Sr. Unsec. Gtd. Global Notes, 8.88%, 07/15/15		5,000		5,206

HCA, Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 02/15/20		10,000		10,825

				16,031

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

10 Invesco Core Plus Bond Fund


	Principal
	Amount		Value

Health Care Services–0.87%
Express Scripts Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 06/15/12	$	50,000	$	53,430

6.25%, 06/15/14		25,000		28,733

				82,163

Hotels, Resorts & Cruise Lines–0.78%
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15^(b)		20,000		21,540

Royal Caribbean Cruises Ltd. (Trinidad), Sr. Unsec. Notes, 7.50%, 10/15/27		5,000		4,494

Starwood Hotels & Resorts Worldwide, Inc., Sr. Unsec. Notes, 7.15%, 12/01/19		5,000		5,338

Wyndham Worldwide Corp., Sr. Unsec. Notes, 7.38%, 03/01/20		40,000		41,950

				73,322

Household Products–0.05%
Central Garden and Pet Co., Sr. Gtd. Notes, 8.25%, 03/01/18		5,000		5,075

Independent Power Producers & Energy Traders–0.32%
NRG Energy, Inc., Sr. Unsec. Gtd. Notes, 7.38%, 02/01/16		15,000		15,225

7.38%, 01/15/17		15,000		15,244

				30,469

Industrial Conglomerates–0.05%
NXP BV/NXP Funding LLC (Netherlands), Sr. Sec. Gtd. Global Notes, 7.88%, 10/15/14		5,000		5,038

Industrial REIT’s–0.15%
ProLogis, Sr. Unsec. Notes, 6.25%, 03/15/17		15,000		14,659

Integrated Oil & Gas–0.29%
Petroleos Mexicanos (Mexico), Bonds, 6.63%, 06/15/35^(b)		25,000		26,995

Integrated Telecommunication Services–1.38%
AT&T Inc., Sr. Unsec. Global Notes, 6.70%, 11/15/13		20,000		23,228

2.50%, 08/15/15		15,000		15,186

British Telecommunications PLC (United Kingdom), Sr. Unsec. Global Notes, 9.38%, 12/15/10		60,000		61,410

Koninklijke KPN N.V. (Netherlands), Sr. Unsec. Global Bonds, 8.00%, 10/01/10		25,000		25,142

Qwest Communications International Inc., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/18^(b)		5,000		5,194

				130,160

Internet Retail–0.27%
Expedia Inc., Sr. Unsec. Gtd. Notes, 5.95%, 08/15/20^(b)		25,000		25,697

Internet Software & Services–0.06%
Equinix Inc., Sr. Unsec. Notes, 8.13%, 03/01/18		5,000		5,250

Investment Banking & Brokerage–0.89%
E*Trade Financial Corp., Sr. Unsec Global Notes, 7.38%, 09/15/13		5,000		4,775

Goldman Sachs Group Inc. (The), Sr. Global Notes, 3.70%, 08/01/15		55,000		55,647

Jefferies Group Inc., Sr. Unsec. Notes, 8.50%, 07/15/19		20,000		23,462

				83,884

Leisure Facilities–0.16%
Universal City Development Partners Ltd., Sr. Unsec. Gtd. Notes, 8.88%, 11/15/15^(b)		10,000		10,200

10.88%, 11/15/16^(b)		5,000		5,331

				15,531

Life & Health Insurance–0.71%
Aflac Inc., Sr. Unsec., 6.45%, 08/15/40		15,000		15,848

Prudential Financial Inc., Series D, Sr. Unsec. Medium-Term Notes, 2.75%, 01/14/13		50,000		50,973

				66,821

Life Sciences Tools & Services–0.36%
Life Technologies Corp., Sr. Notes, 6.00%, 03/01/20		25,000		28,632

Patheon Inc. (Canada), Sr. Sec. Notes, 8.63%, 04/15/17^(b)		5,000		5,012

				33,644

Movies & Entertainment–0.28%
Cinemark USA Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 06/15/19		25,000		26,375

Multi-Line Insurance–0.40%
American Financial Group Inc., Sr. Unsec. Notes, 9.88%, 06/15/19		10,000		12,506

CNA Financial Corp., Sr. Unsec. Global Notes, 5.88%, 08/15/20		20,000		20,293

Hartford Financial Services Group Inc. (The), Jr. Unsec. Sub. Variable Rate Deb., 8.13%, 06/15/38		5,000		4,939

				37,738

Multi-Utilities–0.84%
Nisource Finance Corp., Sr. Unsec. Gtd. Notes, 7.88%, 11/15/10		56,000		56,749

Pacific Gas & Electric Co., Sr. Unsec. Notes, 5.40%, 01/15/40		20,000		22,372

				79,121

Office Electronics–0.56%
Xerox Corp., Sr. Unsec. Notes, 6.88%, 08/15/11		50,000		52,705

Office REIT’s–0.23%
Digital Realty Trust L.P., Unsec. Gtd. Unsub. Bonds, 5.88%, 02/01/20^(b)		20,000		21,346

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

11 Invesco Core Plus Bond Fund


	Principal
	Amount		Value

Office Services & Supplies–0.11%
IKON Office Solutions, Inc.,
Sr. Unsec. Notes, 6.75%, 12/01/25	$	5,000	$	5,125

7.30%, 11/01/27		5,000		5,119

				10,244

Oil & Gas Equipment & Services–0.11%
Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17		5,000		5,031

Key Energy Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 12/01/14		5,000		5,175

				10,206

Oil & Gas Exploration & Production–1.42%
Anadarko Petroleum Corp., Sr. Unsec. Notes, 6.38%, 09/15/17		15,000		14,887

Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17		25,000		26,062

Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 10/01/19		5,000		5,388

Encore Acquisition Co., Sr. Gtd. Notes, 9.50%, 05/01/16		5,000		5,469

McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14		10,000		10,575

Motiva Enterprises LLC, Sr. Unsec. Notes, 6.85%, 01/15/40^(b)		15,000		18,956

Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 5.75%, 01/20/20		10,000		10,668

Petrohawk Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.88%, 06/01/15		5,000		5,194

Petroleos Mexicanos (Mexico), Gtd. Bonds, 5.50%, 01/21/21^(b)		20,000		20,874

Plains Exploration & Production Co., Sr. Unsec. Gtd. Notes, 8.63%, 10/15/19		5,000		5,250

Range Resources Corp., Sr. Unsec. Gtd. Notes, 7.50%, 10/01/17		10,000		10,438

				133,761

Oil & Gas Refining & Marketing–0.15%
Tesoro Corp., Sr. Unsec. Gtd. Global Notes, 6.63%, 11/01/15		5,000		4,963

United Refining Co., Series 2, Sr. Unsec. Gtd. Global Notes, 10.50%, 08/15/12		10,000		9,237

				14,200

Oil & Gas Storage & Transportation–1.45%
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Notes, 7.63%, 02/15/12		50,000		54,085

5.20%, 09/01/20		15,000		16,271

6.45%, 09/01/40		15,000		16,885

Inergy L.P./Inergy Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.25%, 03/01/16		5,000		5,275

Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18		5,000		5,169

Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20		20,000		22,411

Williams Partners L.P., Sr. Unsec. Global Notes, 6.30%, 04/15/40		15,000		16,667

				136,763

Other Diversified Financial Services–3.47%
Bank of America Corp., Sr. Global Notes, 3.70%, 09/01/15		30,000		30,030

Sr. Unsec. Global Notes, 4.50%, 04/01/15		40,000		41,532

6.50%, 08/01/16		10,000		11,179

Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19^(b)		10,000		10,794

Citigroup Inc., Sr. Unsec., 4.75%, 05/19/15		25,000		25,802

Sr. Unsec. Global Notes, 6.01%, 01/15/15		45,000		48,565

ERAC USA Finance LLC, Unsec. Gtd. Notes, 5.80%, 10/15/12^(b)		50,000		54,167

General Electric Capital Corp., Sr. Unsec. Global Notes, 5.90%, 05/13/14		25,000		28,341

International Lease Finance Corp., Sr. Unsec. Notes, 8.63%, 09/15/15^(b)		5,000		5,062

8.75%, 03/15/17^(b)		5,000		5,075

JPMorgan Chase & Co., Floating Rate Medium-Term Notes, 0.96%, 02/26/13^(d)		40,000		40,101

JPMorgan Chase Capital XXVII, Series AA, Jr. Unsec. Gtd. Sub. Notes, 7.00%, 11/01/39		25,000		26,263

				326,911

Packaged Foods & Meats–0.33%
Del Monte Corp., Sr. Unsec. Gtd. Global Notes, 7.50%, 10/15/19		5,000		5,300

Dole Food Co. Inc., Sr. Sec. Notes, 8.00%, 10/01/16^(b)		5,000		5,200

Kraft Foods Inc., Sr. Unsec. Global Notes, 2.63%, 05/08/13		20,000		20,690

				31,190

Paper Packaging–0.05%
Cascades Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20		5,000		5,138

Paper Products–0.05%
Neenah Paper, Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/15/14		5,000		5,025

Pharmaceuticals–0.19%
Valeant Pharmaceuticals International, Sr. Unsec. Gtd. Global Notes, 8.38%, 06/15/16		10,000		11,425

Sr. Unsec. Notes, 7.63%, 03/15/20^(b)		5,000		6,163

				17,588

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

12 Invesco Core Plus Bond Fund


	Principal
	Amount		Value

Publishing–0.45%
Gannett Co. Inc., Sr. Unsec. Gtd. Notes, 9.38%, 11/15/17^(b)	$	5,000	$	5,500

Nielsen Finance LLC/Co., Sr. Unsec. Gtd. Disc. Global Notes, 5.31%, 08/01/16^(c)		5,000		4,950

Reed Elsevier Capital Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 08/01/11		30,000		31,599

				42,049

Railroads–0.11%
Kansas City Southern de Mexico S.A. de C.V. (Mexico), Sr. Unsec. Notes, 8.00%, 02/01/18^(b)		10,000		10,676

Regional Banks–0.38%
CIT Group Inc., Sr. Sec. Bonds, 7.00%, 05/01/14		5,000		4,887

PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 3.63%, 02/08/15		25,000		26,264

Zions Bancorp., Unsec. Sub. Notes, 5.50%, 11/16/15		5,000		4,750

				35,901

Semiconductor Equipment–0.05%
Amkor Technology Inc., Sr. Unsec. Notes, 7.38%, 05/01/18^(b)		5,000		5,000

Semiconductors–0.05%
Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 9.25%, 04/15/18^(b)		5,000		5,013

Specialized Finance–0.27%
National Rural Utilities Cooperative Finance Corp., Sr. Sec. Notes, 2.63%, 09/16/12		25,000		25,834

Specialized REIT’s–0.80%
Entertainment Properties Trust, Sr. Unsec. Notes, 7.75%, 07/15/20^(b)		65,000		64,661

Senior Housing Properties Trust, Sr. Unsec. Notes, 6.75%, 04/15/20		10,000		10,363

				75,024

Specialty Chemicals–0.11%
Huntsman International LLC, Sr. Gtd. Notes, 8.63%, 03/15/20^(b)		5,000		4,981

Sr. Unsec. Gtd. Global Notes, 7.88%, 11/15/14		5,000		5,088

				10,069

Steel–0.75%
ArcelorMittal, Sr. Unsec. Global Bonds, 3.75%, 08/05/15		30,000		29,884

ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.00%, 10/15/39		40,000		41,031

				70,915

Thrifts & Mortgage Finance–0.18%
First Niagara Financial Group Inc., Sr. Unsec. Notes, 6.75%, 03/19/20		15,000		16,575

Tires & Rubber–0.10%
Cooper Tire & Rubber Co., Sr. Unsec. Notes, 7.63%, 03/15/27		10,000		9,050

Trading Companies & Distributors–0.05%
H&E Equipment Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16		5,000		4,938

Wireless Telecommunication Services–0.31%
Clearwire Communications LLC/Clearwire Finance Inc., Sr. Sec. Gtd. Notes, 12.00%, 12/01/15^(b)		5,000		5,050

SBA Telecommunications Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 08/15/19		10,000		10,850

Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 11/15/28		10,000		8,400

Sprint Nextel Corp., Sr. Unsec. Notes, 8.38%, 08/15/17		5,000		5,162

				29,462

Total Bonds & Notes (Cost $3,173,058)				3,322,611

U.S. Government Sponsored Mortgage-Backed Securities–29.11%
Federal Home Loan Mortgage Corp. (FHLMC)–13.97%
Pass Through Ctfs., 5.50%, 01/01/34		245,296		264,101

Pass Through Ctfs., TBA, 4.50%, 09/01/40^(e)		475,000		498,304

5.00%, 09/01/40^(e)		340,000		360,825

6.00%, 09/01/40^(e)		180,000		193,472

				1,316,702

Federal National Mortgage Association (FNMA)–15.14%
Pass Through Ctfs., 4.00%, 09/01/25		275,000		288,922

Pass Through Ctfs., TBA, 4.50%, 09/01/25^(e)		250,000		264,531

5.00%, 09/01/25 to 09/01/40^(e)		545,000		579,276

5.50%, 09/01/25 to 09/01/40^(e)		205,000		219,542

6.00%, 09/01/40^(e)		70,000		75,371

				1,427,642

Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $2,717,333)				2,744,344

U.S. Treasury Securities–23.91%
U.S. Treasury Bills–8.80%
0.16%, 09/09/10^(f)(g)		400,000		399,988

0.14%, 11/18/2010^(f)(g)		30,000		29,995

0.16%, 11/18/2010^(f)(g)		400,000		399,888

				829,871

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

13 Invesco Core Plus Bond Fund


	Principal
	Amount		Value

U.S. Treasury Notes–12.41%
4.50%, 04/30/12	$	300,000	$	320,367

2.25%, 05/31/14		200,000		209,719

2.63%, 12/31/14		250,000		265,586

2.75%, 05/31/17		200,000		211,187

3.63%, 08/15/19		100,000		110,313

3.88%, 08/15/40		50,000		53,156

				1,170,328

U.S. Treasury Bonds–2.70%
5.38%, 02/15/31		145,000		190,267

4.25%, 05/15/39		20,000		22,597

4.50%, 08/15/39		35,000		41,169

				254,033

Total U.S. Treasury Securities (Cost $2,165,511)				2,254,232

Asset-Backed Securities–15.00%
Banc of America Commercial Mortgage Inc., Series 2003-1, Class A2, Pass Through Ctfs., 4.65%, 09/11/36		40,000		42,229

Bear Stearns Commercial Mortgage Securities, Series 2004-PWR6, Class A4, Pass Through Ctfs., 4.52%, 11/11/41		25,000		25,651

Series 2004-PWR6, Class A6, Pass Through Ctfs., 4.83%, 11/11/41		25,000		26,825

Series 2005-T18, Class A4, Variable Rate Pass Through Ctfs., 4.93%, 02/13/42^(d)		45,000		48,530

Series 2006-PW11, Class AAB, Variable Rate Pass Through Ctfs., 5.62%, 03/11/39^(d)		40,000		43,601

Series 2006-T22, Class A2, Variable Rate Pass Through Ctfs., 5.68%, 04/12/38^(d)		19,244		19,486

Series 2006-T24, Class A4, Pass Through Ctfs., 5.54%, 10/12/41		40,000		43,825

Capital One Multi-Asset Execution Trust, Series 2003-B5, Class B5, Pass Through Ctfs., 4.79%, 08/15/13		70,000		70,314

Citibank Credit Card Issuance Trust, Series 2009-A5, Class A5, Pass Through Ctfs., 2.25%, 12/23/14		50,000		51,425

Citigroup Mortgage Loan Trust Inc., Series 2004-UST1, Class A4, Variable Rate Pass Through Ctfs., 2.51%, 08/25/34^(d)		33,499		32,985

Commercial Mortgage Pass Through Ctfs., Series 2001-J1A, Class A2, Variable Rate Pass Through Ctfs., 6.46%, 02/16/34^(b)(d)		6,194		6,243

Series 2001-J2A, Class A2F, 0.78%, 07/16/34^(b)		70,000		68,268

Credit Suisse Mortgage Capital Ctfs.,
Series 2010-6R, Class 1A1, Pass Through Ctfs., 5.50%, 02/27/37^(b)		31,194		32,091

Discover Card Master Trust, Series 2010-A1, Class A1, Floating Rate Pass Through Ctfs., 0.93%, 09/15/15^(d)		40,000		40,299

Fannie Mae REMICS, Series 2005-35, Class AC, Pass Through Ctfs., 4.00%, 08/25/18		61,065		63,077

Freddie Mac REMICS, Series 2450, Class PE, Pass Through Ctfs., 6.00%, 07/15/21		16,754		16,864

Series 2611, Class HA, Pass Through Ctfs., 4.00%, 10/15/21		31,610		32,344

Series 2937, Class JD, Pass Through Ctfs., 5.00%, 03/15/28		33,635		34,495

Series 3339, Class PC, Pass Through Ctfs., 5.00%, 05/15/32		35,000		36,638

GE Capital Commercial Mortgage Corp., Series 2001-1, Class A2, Pass Through Ctfs., 6.53%, 05/15/33		32,876		33,431

GE Capital Credit Card Master Note Trust, Series 2010-3, Class A, Pass Through Ctfs., 2.21%, 06/15/16		70,000		71,618

GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, Pass Through Ctfs., 4.75%, 07/10/39		55,000		59,061

Series 2010-C1, Class C, Pass Through Ctfs., 5.64%, 08/10/43^(b)(d)		70,000		74,518

LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, Pass Through Ctfs., 4.65%, 07/15/30		30,000		30,768

Morgan Stanley Capital I, Series 2005-HQ5, Class A3, Pass Through Ctfs., 5.01%, 01/14/42		49,985		51,541

Series 2005-HQ7, Class A4, Variable Rate Pass Through Ctfs., 5.38%, 11/14/42^(d)		35,000		38,505

Series 2005-T17, Class A4, Pass Through Ctfs., 4.52%, 12/13/41		29,647		30,417

Series 2005-T19, Class A4A, Pass Through Ctfs., 4.89%, 06/12/47		30,000		32,601

Nissan Auto Lease Trust, Series 2009-B, Class A3, Pass Through Ctfs., 2.07%, 01/15/15		30,000		30,349

RBSCF Trust, Series 2010-RR3, Class MS4A, Pass Through Ctfs., 4.97%, 04/16/40^(b)(d)		100,000		106,512

TIAA Seasoned Commercial Mortgage Trust, Series 2007-C4, Class A2, Variable Rate Pass Through Ctfs., 5.76%, 08/15/39^(d)		40,000		42,417

Wachovia Bank Commercial Mortgage Trust, Series 2005-C21, Class A4, Variable Rate Pass Through Ctfs., 5.38%, 10/15/44^(d)		20,000		22,028

Series 2005-C21, Class AJ, Variable Rate Pass Through Ctfs., 5.38%, 10/15/44^(d)		25,000		23,049

Series 2005-C21, Class AM, Variable Rate Pass Through Ctfs., 5.38%, 10/15/44^(d)		20,000		20,417

Wells Fargo Mortgage Backed Securities Trust, Series 2004-K, Class 1A2, Floating Rate Pass Through Ctfs., 4.47%, 07/25/34^(d)		11,621		11,522

Total Asset-Backed Securities (Cost $1,356,086)				1,413,944

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

14 Invesco Core Plus Bond Fund


	Principal
	Amount		Value

Municipal Obligations–0.81%
California (State of); Series 2010, Various Purpose Unlimited Tax GO, 5.75%, 03/01/17	$	10,000	$	10,819

Georgia (State of) Municipal Electric Authority (Build America Bonds); Series 2010 A, Taxable RB, 6.64%, 04/01/57		25,000		26,803

Texas (State of) Transportation Commission; Series 2010 B, Taxable RB, 5.18%, 04/01/30		35,000		39,039

Total Municipal Obligations (Cost $70,070)				76,661

Money Market Funds–21.72%
Liquid Assets Portfolio–Institutional Class^(h)		1,024,114		1,024,114

Premier Portfolio–Institutional Class^(h)		1,024,114		1,024,114

Total Money Market Funds (Cost $2,048,228)				2,048,228

TOTAL INVESTMENTS–125.79% (Cost $11,530,286)				11,860,020

OTHER ASSETS LESS LIABILITIES–(25.79)%				(2,431,523	)

NET ASSETS–100.00%			$	9,428,497

Investment Abbreviations:


Ctfs.		– Certificates
Deb.		– Debentures
Disc.		– Discounted
GO		– General Obligation Bonds
Gtd.		– Guaranteed
Jr.		– Junior
RB		– Revenue Bonds
REIT		– Real Estate Investment Trust
REMICS		– Real Estate Mortgage Investment Conduits
Sec.		– Secured
Sr.		– Senior
Sub.		– Subordinated
TBA		– To Be Announced
Unsec.		– Unsecured
Unsub.		– Unsubordinated

Notes to Schedule of Investments:


^(a)		Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
^(b)		Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The 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 August 31, 2010 was $884,804, which represented 9.38% of the Fund’s Net Assets.
^(c)		Discounted note at issue. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
^(d)		Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2010.
^(e)		Security purchased on forward commitment basis. This security is subject to dollar roll transactions. See Note 1L.
^(f)		Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
^(g)		All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J and Note 4.
^(h)		The money market fund and the Fund are affiliated by having the same investment adviser.

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

15 Invesco Core Plus Bond Fund

Statement of Changes in Net Assets

For the year ended August 31, 2010 and three months ended August 31, 2009


	August 31,			August 31,
	2010			2009

Operations:
Net investment income	$	198,401		$	26,890

Net realized gain		152,692			5,401

Change in net unrealized appreciation		232,044			81,768

Net increase in net assets resulting from operations		583,137			114,059

Distributions to shareholders from net investment income:
Class A		(194,225	)		(17,512	)

Class B		(21,593	)		(887	)

Class C		(16,420	)		(934	)

Class R		(6,254	)		(616	)

Class Y		(5,893	)		(885	)

Institutional Class		(5,318	)		(736	)

Total distributions from net investment income		(249,703	)		(21,570	)

Distributions to shareholders from net realized gains:
Class A		(25,492	)		—

Class B		(3,459	)		—

Class C		(2,577	)		—

Class R		(1,019	)		—

Class Y		(847	)		—

Institutional Class		(762	)		—

Total distributions from net realized gains		(34,156	)		—

Share transactions–net:
Class A		4,108,451			2,807,678

Class B		718,206			200,964

Class C		598,636			217,869

Class R		40,961			102,542

Class Y		12,808			121,790

Institutional Class		6,079			100,746

Net increase in net assets resulting from share transactions		5,485,141			3,551,589

Net increase in net assets		5,784,419			3,644,078

Net assets:
Beginning of year		3,644,078			—

End of year (includes undistributed net investment income of $(2,086) and $42,860, respectively)	$	9,428,497		$	3,644,078

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

Invesco Core Plus Bond Fund, formerly AIM Core Plus Bond Fund, (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust), formerly AIM Counselor Series Trust (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of twenty-two separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in

18 Invesco Core Plus Bond Fund

these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

The Fund’s investment objective is total return.

The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from

19 Invesco Core Plus Bond Fund


		investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C.		Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Other Risks — The Funds may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the underlying fund holding securities of such issuer might not be able to recover its investment from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government.
J.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
K.		Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

20 Invesco Core Plus Bond Fund


L.		Dollar Roll and Forward Commitment Transactions — The Fund may engage in dollar roll and forward commitment transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. These transactions are often conducted on a to be announced (“TBA”) basis. In a TBA mortgage-backed transaction, the seller does not specify the particular securities to be delivered. Rather, a Fund agrees to accept any security that meets specified terms, such as an agreed upon issuer, coupon rate and terms of the underlying mortgages. TBA mortgage-backed transactions generally settle once a month on a specific date.
		In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to purchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price and future date. The mortgage-backed securities to be purchased will bear the same coupon as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. Based on the typical structure of dollar roll transactions by the Fund, the dollar roll transactions are accounted for as financing transactions in which the Fund receives compensation as either a “fee” or a “drop”. “Fee” income which is agreed upon amongst the parties at the commencement of the dollar roll and the “drop” which is the difference between the selling price and the repurchase price of the mortgage-backed securities are amortized to income. During the period between the sale and purchase settlement dates, the Fund will not be entitled to receive interest and principal payments on securities purchased and not yet settled. Proceeds of the sale may be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. Dollar roll transactions are considered borrowings under the 1940 Act.
		Forward commitment transactions involve commitments by the Fund to acquire or sell TBA mortgage-backed securities from/to a financial institution, such as a bank or broker-dealer at a specified future date and amount. The TBA mortgage-backed security is marked to market until settlement and the unrealized appreciation or depreciation is recorded in the statement of operations.
		At the time the Fund enters into the dollar roll or forward commitment transaction, mortgage-backed securities or other liquid assets held by the Fund having a dollar value equal to the purchase price or in an amount sufficient to honor the forward commitment will be segregated.
		Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed the return on the securities sold.
		Forward commitment transactions involve the risk that a counter-party to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Settlement dates of forward commitment transactions may be a month or more after entering into these transactions and as a result the market values of the securities may vary from the purchase or sale prices. Therefore, forward commitment transactions may increase the Fund’s overall interest rate exposure.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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


Average Net Assets	Rate

First $500 million		0	.45%

Next $500 million		0	.425%

Next $1.5 billion		0	.40%

Next $2.5 billion		0	.375%

Over $5 billion		0	.35%

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

The Adviser has contractually agreed, through at least December 31, 2011, 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 (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 0.90%, 1.65%, 1.65%, 1.15%, 0.65% and 0.65%, respectively of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Advisor did not waive fees and/or reimburse expenses during the period under this expense limitation.

For the year ended August 31, 2010, the Adviser waived advisory fees $267,772 and reimbursed class level expenses of $5,197, $677, $534, $169, $141 and $57 of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively.

21 Invesco Core Plus Bond Fund

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended August 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C and Class R 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 B and Class C shares and 0.50% of the average daily net assets of Class R shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the year ended August 31, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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


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

The following is a summary of the tiered valuation input levels, as of August 31, 2010. 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

Equity Securities	$	2,048,228		$	—	$	—	$	2,048,228

U.S. Treasury Securities		—			2,254,232		—		2,254,232

U.S. Government Sponsored Securities		—			2,744,344		—		2,744,344

Corporate Debt Securities		—			3,322,611		—		3,322,611

Asset Backed Securities		—			1,413,944		—		1,413,944

Municipal Obligations		—			76,661		—		76,661

	$	2,048,228		$	9,811,792	$	—	$	11,860,020

Futures*		(15,923	)		—		—		(15,923	)

Total Investments	$	2,032,305		$	9,811,792	$	—	$	11,844,097


*	Unrealized appreciation (depreciation).

22 Invesco Core Plus Bond Fund

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/ Derivative Type	Assets		Liabilities

Interest rate risk
Futures contracts^(a)	$	895,938	$	(379,500	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the year ended August 31, 2010

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


	Location of Gain on
	Statement of Operations
	Futures*

Realized Gain
Interest rate risk	$	30,025

Change in Unrealized Appreciation (Depreciation)
Interest rate risk		(5,591	)

Total	$	24,434


*	The average value of futures $187,123, respectively.


Open Futures Contracts
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)

U.S. Ultra Bond		1		December-2010/Long	$	144,594		$	670

U.S. 5 Year Notes		4		December-2010/Long		481,281			1,741

U.S. Long Bond		2		December-2010/Long		270,063			2,433

Subtotal					$	895,938		$	4,844

U.S. 10 Year Treasury		3		September-2010/Short		(379,500	)		(20,767	)

Total					$	516,438		$	(15,923	)

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

During the year ended August 31, 2010, the Fund paid legal fees of $2,738 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon

23 Invesco Core Plus Bond Fund

by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. A Fund may not purchase additional securities when any borrowings from banks exceeds 5% of the Fund’s total assets.

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Year Ended August 31, 2010 and Three Months Ended August 31, 2009:


	2010		2009

Ordinary income	$	283,859	$	21,570

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	109,368

Undistributed long-term gain		33,706

Net unrealized appreciation — investments		309,116

Net unrealized appreciation (depreciation) — other investments		(19,407	)

Temporary book/tax differences		(2,086	)

Shares of beneficial interest		8,997,800

Total net assets	$	9,428,497

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

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

The Fund does not have a capital loss carryforward at period-end.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $7,096,277 and $3,536,406, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	320,480

Aggregate unrealized (depreciation) of investment securities		(11,364	)

Net unrealized appreciation of investment securities	$	309,116

Cost of investments for tax purposes is $11,550,904

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, undistributed net investment income was increased by $6,356, undistributed net realized gain was decreased by $5,211 and shares of beneficial interest decreased by $1,145. This reclassification had no effect on the net assets of the Fund.

24 Invesco Core Plus Bond Fund

NOTE 10—Share Information


	Summary of Share Activity

	Year ended						Three months ended
	August 31,						August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Sold:
Class A		473,287		$	4,957,006			278,669		$	2,792,778

Class B		90,484			943,362			19,908			200,294

Class C		73,730			773,555			21,543			216,941

Class R		3,891			40,441			10,188			101,926

Class Y		3,631			38,392			12,115			120,905

Institutional Class		—			—			10,001			100,010

Issued as reinvestment of dividends:
Class A		20,806			216,953			1,708			17,512

Class B		2,149			22,398			75			774

Class C		1,761			18,357			91			933

Class R		697			7,259			60			616

Class Y		644			6,703			86			885

Institutional Class		584			6,079			72			736

Automatic conversion of Class B shares to Class A shares:
Class A		2,004			21,070			10			104

Class B		(2,004	)		(21,070	)		(10	)		(104	)

Reacquired:
Class A		(104,344	)		(1,086,578	)		(273	)		(2,716	)

Class B		(21,771	)		(226,484	)		—			—

Class C		(18,543	)		(193,276	)		(1	)		(5	)

Class R		(629	)		(6,739	)		—			—

Class Y		(3,116	)		(32,287	)		—			—

Net increase in share activity		523,261		$	5,485,141			354,242		$	3,551,589


^(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 Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Effective November 30, 2010, all Invesco funds will be closing their Class B shares. Shareholders with investments in Class B shares may continue to hold such shares until they convert to Class A shares, but no additional investments will be accepted in Class B shares on or after November 30, 2010. Any dividends or capital gains distributions may continue to be reinvested in Class B shares until conversion. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert.

25 Invesco Core Plus Bond Fund

NOTE 11—Financial Highlights

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


																									Ratio of			Ratio of
																									expenses			expenses
					Net gains																				to average			to average net			Ratio of net
	Net asset				on securities				Dividends			Distributions													net assets			assets without			investment
	value,		Net		(both		Total from		from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and		investment		investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income^(a)		unrealized)		operations		income			gains			Distributions			of period		Return^(b)			(000s omitted)		absorbed			absorbed			net assets			turnover^(c)

Class A
Year ended 08/31/10	$	10.29	$	0.37	$	0.65	$	1.02	$	(0.49	)	$	(0.07	)	$	(0.56	)	$	10.75		10.26	%	$	7,219		0.87	%^(d)		5.61	%^(d)		3.55	%^(d)		78	%
Three months ended 08/31/09^(e)		10.00		0.09		0.27		0.36		(0.07	)		—			(0.07	)		10.29		3.58			2,882		0.84	^(f)		12.89	^(f)		3.47	^(f)		43

Class B
Year ended 08/31/10		10.29		0.29		0.64		0.93		(0.41	)		(0.07	)		(0.48	)		10.74		9.34			954		1.62	^(d)		6.36	^(d)		2.80	^(d)		78
Three months ended 08/31/09^(e)		10.00		0.07		0.27		0.34		(0.05	)		—			(0.05	)		10.29		3.39			205		1.59	^(f)		13.64	^(f)		2.72	^(f)		43

Class C
Year ended 08/31/10		10.29		0.29		0.64		0.93		(0.41	)		(0.07	)		(0.48	)		10.74		9.34			844		1.62	^(d)		6.36	^(d)		2.80	^(d)		78
Three months ended 08/31/09^(e)		10.00		0.07		0.27		0.34		(0.05	)		—			(0.05	)		10.29		3.39			223		1.59	^(f)		13.64	^(f)		2.72	^(f)		43

Class R
Year ended 08/31/10		10.29		0.34		0.64		0.98		(0.46	)		(0.07	)		(0.53	)		10.74		9.88			153		1.12	^(d)		5.86	^(d)		3.30	^(d)		78
Three months ended 08/31/09^(e)		10.00		0.08		0.27		0.35		(0.06	)		—			(0.06	)		10.29		3.51			105		1.09	^(f)		13.14	^(f)		3.22	^(f)		43

Class Y
Year ended 08/31/10		10.29		0.40		0.63		1.03		(0.51	)		(0.07	)		(0.58	)		10.74		10.43			144		0.62	^(d)		5.36	^(d)		3.80	^(d)		78
Three months ended 08/31/09^(e)		10.00		0.09		0.27		0.36		(0.07	)		—			(0.07	)		10.29		3.64			126		0.59	^(f)		12.64	^(f)		3.72	^(f)		43

Institutional Class
Year ended 08/31/10		10.29		0.40		0.64		1.04		(0.52	)		(0.07	)		(0.59	)		10.74		10.43			115		0.62	^(d)		5.29	^(d)		3.80	^(d)		78
Three months ended 08/31/09^(e)		10.00		0.09		0.27		0.36		(0.07	)		—			(0.07	)		10.29		3.64			104		0.59	^(f)		12.68	^(f)		3.72	^(f)		43


^(a)		Calculated using average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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)		Ratios are based on average daily net assets (000’s omitted) of $4,399, $573, $452, $143, $119 and $108 for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively.
^(e)		Commencement date of June 3, 2009.
^(f)		Annualized.

26 Invesco Core Plus Bond Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes

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

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

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


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	1,055.00	$	4.51	$	1,020.82	$	4.43		0.87	%

B		1,000.00		1,050.20		8.37		1,017.04		8.24		1.62

C		1,000.00		1,051.10		8.38		1,017.04		8.24		1.62

R		1,000.00		1,052.80		5.80		1,019.56		5.70		1.12

Y		1,000.00		1,055.40		3.21		1,022.08		3.16		0.62

Institutional		1,000.00		1,055.40		3.21		1,022.08		3.16		0.62


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

28 Invesco Core Plus Bond Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Core Plus Bond Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses, and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investment Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation


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

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the quality and efficiency of the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

The Board reviewed the services provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the additional resources and talents of the Affiliated Sub-Advisers in managing the Fund.


B.	Fund Performance

The Board did not consider Fund performance as a relevant factor in considering whether to approve

29 Invesco Core Plus Bond Fund

the investment advisory agreement because the Fund was newly launched in 2009 and has no performance history.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board noted that no Lipper material was available for the Fund. The Board compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the rate for the other mutual fund.

Other than the mutual fund described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts in a manner substantially similar to the management of the Fund.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least December 31, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board considered the effect this expense limitation would have on the Fund’s estimated total expenses.

The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above, the expense limitations and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.


D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes four breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.


F.	Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

30 Invesco Core Plus Bond Fund

Trustees and Officers

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

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business

214

None

Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, INVESCO Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc.

214

None

Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232

Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

President of CAC, LLC, a private company offering capital investment and management advisory services.

Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Chief Executive Officer of Itel Corporation. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.

232

Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.

Albert R. Dowden — 1941
Trustee

2003

Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company)

Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit)

Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.

232

Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and General Counsel, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust

Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)

N/A

Lisa O. Brinkley — 1959
Vice President

2004

Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds

Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser)

Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only).

Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc.

Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.

Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company

N/A

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


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

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

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

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

Important notice regarding delivery of security holder documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-09913 and 333-36074.

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

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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


		CPB-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Floating Rate Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Floating Rate Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended August 31, 2010, Invesco Floating Rate Fund, Class A shares at net asset value (NAV) returned 11.28%, underperforming the S&P/LSTA Leveraged Loan Index. The Fund invests in lower rated fixed income instruments, primarily senior secured corporate loans.

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

Fund vs. Indexes


Class A Shares*	11.28	%

Class C Shares*	10.75

Class R Shares*	11.15

Class Y Shares*	11.56

Institutional Class Shares*	11.65

Barclays Capital U.S. Aggregate Index^▼ (Broad Market Index)	9.18

S&P/LSTA Leveraged Loan Index^■ (Style-Specific Index)	12.76

Lipper Loan Participation Funds Category Average^▼ (Peer Group)	10.82


^▼Lipper Inc.; ^■Invesco, Standard & Poor’s


*The Fund’s return during the period benefited from a change in pricing methodology related to corporate loans.

How we invest

We believe a highly diversified pool of bank loans from the broadest spectrum of issuers and consisting of the highest credit quality available in line with portfolio objectives has the best risk-reward potential.

Our credit analysts review all holdings and prospective holdings.

Key consideration is given to the following:

n		Management. Factors include direct operating experience in managing this business, management depth and incentives and track record operating in a leveraged environment.

n		Industry position and dynamics. Factors include the company’s industry position, life cycle phase of the indus-

		try, barriers to entry and current industry capacity and utilization.

n		Asset quality. Considerations may include valuations of hard and intangible assets, how easily those assets can be converted to cash and appropriateness to leverage those assets.

n		Divisibility. This factor focuses on operating and corporate structures, ability to divide easily and efficiently, examination of non-core assets and valuation of multiple brand names.

n		Sponsors. Considerations include the firm’s track record of quality transactions, access to additional capital and control or ownership of the sponsoring firm.

n		Cash flow. We examine the firm’s sales and earnings breakdown by product, divisions and subsidiaries. We look at

		the predictability of corporate earnings and the cash requirement of the business and conduct an examination of the business cycles, seasonality, international pressures and so forth.

n		Recovery and loan-to-value. These factors focus on further examination of the default probability and the rate of recovery associated with loans.

The portfolio is constructed using a conservative bias to help manage credit risk, while focusing on optimization of return relative to appropriate benchmarks. We constantly monitor the holdings in the portfolio and conduct daily, weekly and monthly meetings with portfolio managers and analysts, as well as with firms and loan sponsors.

Our proprietary systems generate “alert lists” that trigger immediate reviews of credits when they fall below price targets, are rated BB or lower or are performing off plan. Our active sell discipline considers two key factors for each portfolio position:

n		Company objective. Will unfavorable industry trends, poor performance or lack of access to capital cause the company to underperform?

n		Investment objective. Has the earnings potential or price potential been met or exceeded, or do better relative valuation opportunities exist in the market?

Market conditions and your Fund

For the fiscal year ended August 31, 2010, the bank loan market continued its recovery. While the market has yet to return to its historical trading range and the pace of the recovery slowed during the first half of 2010, bank loans showed continued improvement. We attribute much of this improvement to a broader

Portfolio Composition^†

By credit quality rating based on total investments


B	0.5	%

Baa2	0.1

Baa3	1.4

Ba1	5.3

Ba2	15.9

Ba3	27.9

B1	19.8

B2	9.1

B3	2.6

Caa1	1.7

Caa2	0.1

Caa3	0.7

NR	4.9

Equity	2.0

Money Market Funds	8.0

Top 10 Fixed Income Issuers*



1.	Texas Competitive Electric Holdings Co. LLC	2.3	%

2.	Mediacom Communications Corp.	1.9

3.	First Data Corp.	1.9

4.	Charter Communications, Inc.	1.7

5.	The Servicemaster Co.	1.6

6.	Univision Communications Inc.	1.5

7.	Calpine Corp.	1.5

8.	Sungard Data Systems, Inc.	1.5

9.	Harrah’s Operating Co., Inc.	1.4

10.	HCA Inc.	1.4


Total Net Assets		$681.6 million

Total Number of Holdings*		597

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


†		Source: Moody’s. This table is calculated based on the highest rating assigned by Moody’s to an individual security. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from Aaa (highest) to C (lowest); ratings are subject to change without notice. “NR” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Moody’s rating methodology, please visit www.moodys.com and select ‘Rating Methodologies’ under Research and Ratings on the homepage.


*		Excluding money market fund holdings.

Invesco Floating Rate Fund

buyer base and a greater balance between supply and demand factors. The impact of these factors was particularly evident during the first part of the year as new loan issuance was initially unable to keep pace with demand. This pushed prices of previously issued loans represented in the S&P/LSTA Leveraged Loan Index to their highest levels in more than a year during the first week of May 2010. The average prices of loans in the index subsequently declined slightly. We attribute this decline to concerns about debt problems involving several European countries, namely Greece, and concerns about slower economic growth in the U.S. However, we did not see any concurrent deterioration in fundamentals in the bank loan market.

The bank loan market continued to be more visible in 2010, and there was a greater correlation between market, economic and other trends. This visibility was disrupted by the debt crises involving several southern European economies.

We have also seen an improvement in credit quality as evidenced by a steady decline in the trailing 12-month default rate. Furthermore, the London Interbank Offered Rate (LIBOR^®) component of bank loan interest payments is reset when the contracts change – typically between 30 and 90 days – so investors may benefit from future increases in interest rates with little or no corresponding price exposure. This is one of the unique features of the bank loan asset class and provides investors with a positive component when interest rates are rising.

Low LIBOR rates had a negative impact on the performance of the bank loan asset class. We expect these rates will increase at some point in the future. However, the the U.S. Federal Reserve (the Fed) maintained an accommodative monetary policy amid concerns of a slowing economic recovery. At the close of the reporting period, the Fed was indicating it intended to maintain this low interest rate policy for some time.

All share classes of Invesco Floating Rate Fund at NAV posted double-digit returns for the reporting period. The Fund benefited from our focus on deeply discounted bank loans. Performance was also enhanced by our rotation into such industries as chemicals and autos and the sale of certain print media holdings. Our retention of certain positions where a borrower was involved in bankruptcy proceedings also aided Fund performance.

While the Fund performed well relative to its peer group category average, it trailed the S&P/LSTA Leveraged Loan Index. An unusually wide spread between bid and asking prices for loans hurt Fund performance relative to the index. Moreover, inflows into the Fund increased its total net assets.

As always, we appreciate your continued participation in Invesco Floating Rate Fund.

See important Fund and index disclosures later in this report.

Tom Ewald

Portfolio manager, is lead manager of Invesco Floating Rate Fund. Mr. Ewald joined Invesco in 2000 as a credit analyst and was promoted to portfolio manager of certain other funds in 2001. Prior to joining Invesco, Mr. Ewald was a portfolio manager at another firm. Mr. Ewald earned an A.B. from Harvard College and an M.B.A. from the Darden School of Business at the University of Virginia.

Greg Stoeckle

Portfolio manager, is manager of Invesco Floating Rate Fund. Mr. Stoeckle joined Invesco in 1999 and has held several senior management positions within the bank loan group. He began his investment career in 1987 as a credit analyst for another firm. Mr. Stoeckle earned a B.S. from Ursinus College and an M.B.A. from Saint Joseph’s University.

Invesco Floating Rate Fund



Average Annual Total Returns
As of 8/31/10, including maximum applicable sales charges

Class A Shares

Inception (5/1/97)	3.61	%

10 Years	2.83

5 Years	1.87

1 Year	8.53


Class C Shares

Inception (3/31/00)	2.81	%

10 Years	2.69

5 Years	1.89

1 Year	9.75


Class R Shares

10 Years	3.00	%

5 Years	2.21

1 Year	11.15


Class Y Shares

10 Years	3.11	%

5 Years	2.44

1 Year	11.56


Institutional Class Shares

10 Years	3.24	%

5 Years	2.68

1 Year	11.65


The Fund’s return during the period benefited from a change in pricing methodology related to corporate loans.

On April 13, 2006, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown for class A shares prior to that date is that of the Closed-End Fund’s Class B shares and includes the management and 12b-1 fees applicable to B shares. The Closed-End Fund’s B-share performance reflects any applicable fee waivers or expense reimbursements.

On April 13, 2006, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown for class C shares prior to that date is that of the Closed-End Fund’s Class C shares and includes the management and 12b-1 fees applicable to C shares. The Closed-End Fund’s C-share performance reflects any applicable fee waivers or expense reimbursements.

Class R shares incepted on April 13, 2006. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

Class Y shares incepted on October 3, 2008. Performance shown prior to that



Average Annual Total Returns
As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.

Class A Shares

Inception (5/1/97)	3.48	%

10 Years	2.70

5 Years	1.71

1 Year	12.54


Class C Shares

Inception (3/31/00)	2.62	%

10 Years	2.54

5 Years	1.71

1 Year	13.68


Class R Shares

10 Years	2.87	%

5 Years	2.03

1 Year	14.74


Class Y Shares

10 Years	2.97	%

5 Years	2.24

1 Year	15.50


Institutional Class Shares

10 Years	3.11	%

5 Years	2.51

1 Year	15.42


The Fund’s return during the period benefited from a change in pricing methodology related to corporate loans.

date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

Institutional Class shares incepted on April 13, 2006. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date

of this report for Class A, Class C, Class R, Class Y and Institutional Class shares was 1.27%, 1.77%, 1.52%, 1.02% and 0.91%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

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

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

Invesco Floating Rate Fund

Invesco Floating Rate Fund’s investment objectives are top provide a high level of current income and, secondarily, preservation of capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		As of the close of business on April 13, 2006, Invesco Floating Rate Fund reorganized from a Closed-End Fund to an Open-End Fund. Information presented for Class A shares prior to the reorganization includes financial data for Class B shares of the Closed-End Fund. Information presented for Class C shares prior to the reorganization includes financial data for Class C shares of the Closed-End Fund.

n		On July 27, 2006, all Class B1 shares converted into Class A shares.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

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

Principal risks of investing in the Fund

n		To the extent that the Fund is concentrated in securities of issuers in the banking and financial services industries, the Fund’s performance will depend to a greater extent on the overall condition of those industries. The value of these securities can be sensitive to changes in government regulation, interest rates and economic downturns in the U.S. and abroad.

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

n		The Fund may use enhanced investment techniques such as derivatives. The principal risk of derivatives is that the fluctuations in their values may not correlate perfectly with the overall

		securities markets. Derivatives are subject to counterparty risk–the risk that the other party will not complete the transaction with the Fund.

n		The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

n		Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

n		Leveraging entails risks such as magnifying changes in the value of the portfolio’s securities.

n		The majority of the Fund’s assets are likely to be invested in loans and securities that are less liquid than those traded on national exchanges. In the event the Fund voluntarily or involuntarily liquidates portfolio assets during periods of infrequent trading, it may not receive full value for those assets.

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

n		The Fund is non-diversified and can invest a greater portion of its assets in a single issuer. A change in the value of the issuer could affect the value of the Fund more than if it was a diversified Fund.

n		An issuer’s ability to prepay principal on a loan or debt security prior to maturity can limit the Fund’s potential gains. Prepayments may require the Fund to replace the loan or debt security with a lower yielding security, adversely affecting the Fund’s yield.

About indexes used in this report

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

n		The S&P/LSTA Leveraged Loan Index is a weekly total return index that tracks the current outstanding balance and spread over LIBOR for fully funded term loans.

n		The Lipper Loan Participation Funds Category Average represents an average of all of the funds in the Lipper Loan Participation Funds category.

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

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

Other information

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

n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		AFRAX
Class C Shares		AFRCX
Class R Shares		AFRRX
Class Y Shares		AFRYX
Institutional Class Shares		AFRIX

Invesco Floating Rate Fund

Schedule of Investments^(a)

August 31, 2010


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Senior Secured Floating Rate Interest Loans–94.63%^(b)(c)
Advertising–0.07%
Lamar Media Corp., Term Loan B		4.25	%		12/30/16	$	232,842	$	234,587

Valassis Communications, Inc.
Delay Draw Term Loan		2.79	%		03/02/14		68,464		67,152

Term Loan B		2.79	%		03/02/14		205,751		201,808

									503,547

Aerospace & Defense–1.75%
Aero Technology Supply
Revolver Loan^(d)		0	%		03/12/13		4,608		4,539

Revolver Loan		11.25	%		03/12/13		849		836

Term Loan^(e)		—			10/16/14		6,000,000		1,943,541

Term Loan		11.25	%		03/12/13		137,088		133,403

Term Loan		10.75	%		03/12/15		141,818		138,272

Dubai Aerospace Enterprise
Term Loan B1		4.23	%		07/31/14		270,718		247,030

Term Loan B2		4.14 – 4.23	%		07/31/14		262,819		239,822

DynCorp International, Term Loan		6.25	%		07/07/16		1,067,350		1,063,614

Hawker Beechcraft Corp., Term Loan		2.26 – 2.53	%		03/26/14		1,000,612		801,643

McKechnie Aerospace
First Lien Term Loan		2.27	%		05/11/14		529,617		511,081

Second Lien Term Loan		5.27	%		05/11/15		141,273		134,916

Sequa Corp., Term Loan B		3.79	%		12/03/14		3,313,552		3,080,775

Spirit Aerosystems, Inc., Term Loan B1		2.28	%		09/30/13		1,515,411		1,474,116

Triumph Group, Inc., Term Loan B		4.50	%		06/16/16		824,174		828,637

Wesco Aircraft Hardware Corp., Term Loan		2.52	%		09/29/13		366,907		355,211

Wyle Laboratories, Inc., Incremental Term Loan		8.00	%		03/25/16		998,066		995,261

									11,952,697

Air Freight & Logistics–0.26%
CEVA Group PLC
U.S. Syn LOC		0.43	%		11/04/13		215,837		190,296

U.S. Term Loan		3.26	%		11/04/13		1,779,576		1,568,990

									1,759,286

Airlines–0.74%
Delta Air Lines, Inc.
Revolver Loan^(d)		0	%		04/30/12		2,000,000		1,821,260

Revolver Loan^(d)		0	%		03/28/13		1,500,000		1,278,750

Syn Revolver Credit Loan^(e)		—			04/30/12		2,054,535		1,973,637

									5,073,647

Airport Services–0.75%
Dollar Thrifty Automotive Group, Inc., Term Loan		2.76	%		06/15/13		1,225,000		1,209,687

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

9 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Airport Services–(continued)

Hertz Global Holdings Inc.
Syn LOC^(e)		—	%		12/21/12	$	579,200	$	566,498

Syn LOC		0.34	%		12/21/12		45,505		44,507

Term Loan B^(e)		—			12/21/12		3,131,823		3,065,272

Term Loan B		2.02	%		12/21/12		246,052		240,824

									5,126,788

Alternative Carriers–0.94%
Level 3 Communications, Inc.
Add On Term Loan B		11.50	%		03/13/14		204,533		221,727

Term Loan		2.53 – 2.78	%		03/13/14		6,903,226		6,202,134

									6,423,861

Aluminum–0.05%
Noranda Aluminum, Inc., Term Loan B		2.05	%		05/18/14		382,194		359,900

Apparel Retail–1.01%
Destination Maternity Corp., Term Loan B		2.51 – 2.77	%		03/13/13		112,952		104,481

Neiman Marcus, Inc., Term Loan		2.30 – 2.54	%		04/06/13		7,129,222		6,794,255

									6,898,736

Apparel, Accessories & Luxury Goods–0.10%
Phillips Van Heusen Corp., Term Loan B		4.75	%		05/06/16		658,085		663,172

Auto Parts & Equipment–3.84%
AutoTrader.com, Inc., Term Loan B		6.00	%		06/14/16		3,239,213		3,253,384

Dana Holding Corp., Term Loan		4.52 – 6.50	%		01/30/15		6,936,971		6,824,730

Dayco Products, LLC
Term Loan B		10.50	%		05/13/14		72,245		69,355

Term Loan C		12.50	%		11/13/14		11,024		9,480

Federal-Mogul Corp.
Delay Draw Term Loan C2		2.24	%		12/27/15		357,727		313,011

Term Loan B		2.21 – 2.24	%		12/27/14		6,396,258		5,602,707

Term Loan C2		2.21	%		12/27/15		2,432,546		2,128,478

Goodyear Tire & Rubber Co. (The), Second Lien Term Loan		2.24	%		04/30/14		4,035,343		3,773,772

Key Safety Systems, Inc., Term Loan B		2.51 – 2.53	%		03/08/14		997,348		888,886

Pep Boys-Manny, Moe & Jack (The), Term Loan		2.54	%		10/27/13		40,464		38,567

Tenneco Automotive, Term Loan B		5.01	%		06/03/16		2,600,000		2,597,205

Veyance Technologies, Inc.
First Lien Delay Draw Term Loan		2.77	%		07/31/14		106,861		92,381

First Lien Term Loan		2.77	%		07/31/14		709,115		613,090

									26,205,046

Automobile Manufacturers–1.24%
Ford Motor Co., Term Loan		3.03	%		12/15/13		8,731,656		8,422,249

Automotive Retail–0.62%
KAR Holdings, Inc., Term Loan B		3.02	%		10/21/13		4,402,541		4,248,452

Broadcasting–7.89%
Cequel Communications, LLC, First Lien Term Loan		2.30	%		11/05/13		1,447,284		1,399,068

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

10 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Broadcasting–(continued)

Charter Communications, Inc.
Term Loan B1		2.26	%		03/06/14	$	2,003,781	$	1,900,045

Term Loan C^(e)		—			09/06/16		3,654,696		3,509,349

Term Loan C		3.79	%		09/06/16		5,657,734		5,432,726

Term Loan Refinance^(e)		—			03/06/14		931,361		883,144

CSC Holdings, Inc.
Incremental Term Loan B2		2.02	%		03/29/16		1,466,546		1,438,770

Incremental Term Loan B3		2.02	%		03/29/16		2,381,323		2,305,919

CW Media Holdings, Term Loan B		3.53	%		02/16/15		547,730		539,514

Gray Television Inc., Term Loan B		3.80	%		12/31/14		107,029		101,735

Insight Communications Co., Term Loan B		2.06 – 2.28	%		04/06/14		1,070,445		1,027,626

Intelsat, Ltd.
Term Loan B2-A		3.03	%		01/03/14		2,200,923		2,090,734

Term Loan B2-B		3.03	%		01/03/14		2,200,246		2,089,035

Term Loan B2-C		3.03	%		01/03/14		2,200,246		2,089,034

Ion Media Networks, Inc. (Paxson Communications), Term Loan^(f)		4.38	%		01/15/12		2,801,171		756,316

Local TV LLC, Term Loan B		2.27	%		05/07/13		905,206		812,988

Mediacom Communications Corp.
Add on Term Loan		5.50	%		03/31/17		3,182,512		3,118,846

Term Loan D1		2.01	%		01/31/15		2,002,222		1,871,457

Term Loan D2		2.01	%		01/31/15		276,922		258,836

Term Loan E		4.50	%		10/23/17		2,013,344		1,905,116

Term Loan F		4.50	%		10/23/17		6,040,031		5,748,086

Univision Communications Inc.
Term Loan^(e)		—			09/29/14		652,437		561,330

Term Loan		2.51	%		09/29/14		11,422,845		9,827,759

WaveDivision Holdings, LLC, Term Loan B		2.61 – 2.70	%		06/30/14		377,530		368,091

Weather Channel (The), Term Loan B		5.00	%		09/14/15		524,486		525,706

WOW!
First Lien Term Loan		2.79 – 4.75	%		06/30/14		984,934		893,828

First Lien Term Loan A		6.76 – 8.75	%		06/28/14		2,359,131		2,320,796

									53,775,854

Building Products–0.25%
Building Materials Corp. of America, Term Loan B		3.06	%		02/22/14		1,376,497		1,355,567

Champion Window Manufacturing Inc., Term Loan		7.50	%		12/31/13		234,800		224,234

United Subcontractors, Inc., Term Loan		2.04	%		06/30/15		107,501		94,601

									1,674,402

Casinos & Gaming–0.94%
BLB Investors, LLC, First Lien Term Loan		4.75	%		07/18/11		887,867		661,461

Cannery Casino
Delay Draw Term Loan		4.55	%		05/18/13		936,358		873,154

Second Lien Term Loan		4.52	%		05/18/14		1,084,000		888,880

Term Loan B		4.52	%		05/18/13		699,725		652,493

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

11 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Data Processing & Outsourced Services–(continued)

First Data Corp.
Term Loan B1^(e)		—	%		09/24/14	$	341,207	$	293,470

Term Loan B1		3.01	%		09/24/14		5,008,321		4,307,632

Term Loan B2^(e)		—			09/24/14		511,810		437,731

Term Loan B2		3.01	%		09/24/14		4,892,026		4,183,954

Term Loan B3^(e)		—			09/24/14		765,640		655,101

Term Loan B3		3.01	%		09/24/14		3,410,168		2,917,825

Transunion Corp., Term Loan		6.75	%		06/15/17		994,592		1,006,776

									16,390,746

Department Stores–0.20%
Bass Pro, Inc., Term Loan B		5.00 – 5.75	%		04/10/15		1,375,682		1,379,128

Diversified Chemicals–0.88%
Celanese US Holdings LLC
Prefunded LOC		0.31	%		04/02/14		490,939		469,821

Term Loan		2.03	%		04/02/14		2,337,962		2,238,832

Rockwood Specialties, Inc., Term Loan H		6.00	%		05/15/14		1,675,132		1,681,414

Solutia Inc., Term Loan B		4.75	%		03/17/17		1,419,197		1,424,193

Texas Petrochemicals L.P.
Incremental Term Loan B		2.88 – 3.13	%		06/27/13		54,644		51,468

Term Loan B		2.88 – 3.13	%		06/27/13		161,894		152,485

									6,018,213

Diversified Metals & Mining–0.26%
Novelis Inc.
Canada Term Loan		2.27	%		07/06/14		402,532		387,604

U.S. Term Loan		2.27 – 2.54	%		07/06/14		1,427,863		1,374,125

									1,761,729

Diversified Real Estate Activities–1.36%
Lake Las Vegas Resort
Revolver Loan^(d)		0	%		12/31/12		107,236		106,164

Revolver Loan		15.00	%		12/31/12		18,474		18,289

RE/MAX LLC, Term Loan B		5.50	%		04/16/16		2,340,631		2,337,705

Realogy Corp., Delay Draw Term Loan		3.30 – 3.53	%		10/10/13		7,893,360		6,809,996

									9,272,154

Diversified REIT’s–0.41%
Capital Automotive REIT
Term Loan B^(e)		—			12/16/10		106,326		104,422

Term Loan B		2.07	%		12/16/10		175,879		172,728

Term Loan C		2.82	%		12/14/12		2,618,480		2,505,021

									2,782,171

Diversified Support Services–1.16%
Bankruptcy Management Solutions, Inc.
First Lien Term Loan		4.27	%		07/28/12		59,856		38,258

Second Lien Term Loan		6.64	%		07/28/13		35,292		7,588

Brock Holdings III, Inc., Term Loan B		3.03 – 4.75	%		02/26/14		387,024		352,191

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

13 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Diversified Support Services–(continued)

Central Parking Corp.
Second Lien Term Loan		5.06	%		11/22/14	$	25,522	$	19,695

Syn LOC		0.16	%		05/22/14		63,036		52,950

Term Loan B		2.56	%		05/22/14		140,484		119,060

Merrill Corp., Term Loan		8.50	%		05/15/11		3,994,578		3,774,876

Nuance Communications, Inc.
Incremental Term Loan		2.02	%		03/29/13		1,989,744		1,917,118

Revolver Loan^(d)		0	%		04/01/12		121,000		109,505

Term Loan B		2.02	%		04/01/13		244,238		235,324

Production Resources, Inc., Term Loan B		3.81	%		08/15/14		1,512,100		1,262,603

									7,889,168

Drug Retail–1.16%
General Nutrition Centers, Inc., Term Loan B		2.52 – 2.79	%		09/16/13		3,237,238		3,091,562

MAPCO Express, Inc., Term Loan		6.75	%		04/28/11		60,209		58,854

Pantry, Inc. (The)
Delay Draw Term Loan		2.02	%		05/15/14		21,046		20,204

Term Loan B		2.02	%		05/15/14		73,529		70,588

Rite Aid Corp.
Term Loan^(e)		—			05/29/14		4,355,123		3,907,504

Tranche 2		2.01 – 2.02	%		06/04/14		843,301		756,627

									7,905,339

Education Services–0.04%
Bright Horizons Family Solutions, Inc., Term Loan B		7.50	%		05/28/15		244,755		245,368

Electric Utilities–6.16%
Bicent Power LLC, Second Lien Term Loan		4.54	%		07/10/14		250,400		68,860

BRSP LLC, Term Loan B		7.50	%		06/24/14		2,800,000		2,803,500

Calpine Corp.
First Priority Term Loan		3.42	%		03/29/14		4,299,579		4,119,921

Revolver Loan^(d)		0	%		03/29/14		3,000,000		2,692,500

Term Loan B		7.00	%		07/01/17		3,508,773		3,557,563

Dynegy Holdings Inc.
Loan C		4.02	%		04/02/13		7,312,604		7,200,063

Term Loan B		4.02	%		04/02/13		690,004		679,703

GreatPoint Energy, Delay Draw Term Loan		5.50	%		03/10/17		654,027		650,757

Kelson Finance LLC, First Lien Term Loan B		3.78	%		03/08/13		322,326		318,791

NE Energy, Inc.
Second Lien Term Loan		5.06	%		05/01/14		315,000		284,287

Syn LOC		0.41	%		11/01/13		9,235		8,696

Term Loan B		3.06	%		11/01/13		517,939		486,863

NRG Energy, Inc.
Extended LOC 2^(e)		—			08/31/15		2,175,600		2,154,758

Extended LOC 2		3.78	%		08/31/15		26,279		26,028

Syn LOC^(e)		—			02/01/13		304		297

Syn LOC		2.03	%		02/01/13		11		11

Term Loan B^(e)		—			02/01/13		209,767		204,865

Term Loan B		2.03	%		02/01/13		157,807		154,119

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

14 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Electric Utilities–(continued)

NSG Holdings II, LLC
Syn LOC		2.04	%		06/15/14	$	26,571	$	25,398

Term Loan		2.04	%		06/15/14		87,931		84,047

Texas Competitive Electric Holdings Co. LLC
Delay Draw Term Loan^(e)		—			10/10/14		307,113		232,447

Delay Draw Term Loan		3.79 – 4.03	%		10/10/14		8,863,237		6,708,406

Term Loan B1^(e)		—			10/10/14		1,933,993		1,472,890

Term Loan B1		3.79 – 4.03	%		10/10/14		245,473		186,948

Term Loan B2^(e)		—			10/10/14		2,451,036		1,864,822

Term Loan B2		3.79 – 4.07	%		10/10/14		1,691,545		1,286,978

Term Loan B3^(e)		—			10/10/14		2,129,262		1,614,758

Term Loan B3		3.79 – 4.03	%		10/10/14		3,315,094		2,514,052

TPF Generation Holdings, LLC
First Lien Term Loan		0.43	%		12/15/11		30,618		28,847

Second Lien Term Loan		4.78	%		12/15/14		267,000		243,138

Syn LOC D		0.43	%		12/15/13		97,672		92,021

Term Loan		2.53	%		12/15/13		243,945		229,831

									41,996,165

Electrical Components & Equipment–0.08%
Aeroflex Inc., Term Loan B1		3.63	%		08/15/14		313,710		296,586

Crown Castle International Corp., Term Loan B		1.76	%		03/06/14		279,801		269,275

									565,861

Electronic Manufacturing Services–0.29%
Sorenson Communications, Inc., First Lien Term Loan		6.00	%		08/16/13		2,217,690		1,988,835

Environmental & Facilities Services–0.03%
Covanta Holding Corp.
Syn LOC		0.43	%		02/09/14		84,652		79,944

Term Loan B		1.94 – 2.06	%		02/09/14		128,350		121,547

									201,491

Food Distributors–2.91%
Advanced Food Company, Inc.
Delay Draw Term Loan		2.02	%		03/16/14		73,189		72,914

Second Lien Term Loan		4.52	%		09/16/14		1,233,357		1,140,855

Term Loan B		2.02	%		03/16/14		847,395		844,217

Aramark Corp.
Extended LOC 2^(e)		—			07/26/16		57,116		55,696

Extended LOC 2		0.20	%		07/26/16		23,693		23,104

Extended Term Loan B^(e)		—			07/26/16		868,486		847,495

Extended Term Loan B		3.78	%		07/26/16		360,266		351,558

Syn LOC 1^(e)		—			01/26/14		66,298		63,148

Syn LOC 1		0.20	%		01/26/14		13,153		12,528

U.S. Term Loan^(e)		—			01/26/14		1,008,100		956,561

U.S. Term Loan		2.41	%		01/26/14		181,637		172,351

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

15 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Food Distributors–(continued)

Dean Foods Co.
Term Loan A^(e)		—	%		04/02/12	$	1,000,000	$	974,845

Term Loan A^(e)		—			04/02/14		3,000,000		2,932,500

Term Loan A		3.27 – 3.54	%		04/02/14		255,001		249,263

Term Loan B		3.54	%		04/02/16		243,903		235,550

Term Loan B		3.79	%		04/02/17		50,923		49,989

Pierre Foods Inc., Term Loan A		7.00	%		03/03/16		2,150,674		2,150,340

Pinnacle Foods Group, Inc. (Aurora Foods)
Revolver Loan^(d)		0	%		04/02/13		1,000,000		910,000

Term Loan B^(e)		—			04/02/14		3,611,234		3,441,040

Term Loan B		2.81	%		04/02/14		1,990,397		1,896,615

Term Loan D		6.00	%		04/02/14		2,471,415		2,482,005

									19,862,574

Food Retail–0.95%
OSI Restaurant Partners, LLC
Prefunded Revolver Credit		2.69	%		06/14/13		13,759		12,218

Prefunded Revolver Credit Loan		0.36 – 2.88	%		06/14/13		261,420		232,145

Term Loan		2.88	%		06/14/14		4,033,502		3,582,879

Quizno’s Corp. (The), First Lien Term Loan B		5.06	%		05/05/13		12,470		10,579

SUPERVALU Inc.
Term Loan A		1.14	%		06/02/11		382,166		376,273

Term Loan B		1.51	%		06/02/12		1,329,812		1,284,931

Term Loan C^(e)		—			06/02/11		352,941		337,941

Wendy’s/Arby’s Resturants, LLC, Term Loan B		5.00	%		05/24/17		640,717		643,761

									6,480,727

Forest Products–0.68%
Georgia-Pacific Corp.
Add On Term Loan B		2.30 – 2.53	%		12/29/12		24,715		24,450

Term Loan A		2.53	%		12/21/10		1,878,491		1,874,030

Term Loan B		2.30 – 2.54	%		12/21/12		970,902		960,722

Term Loan C		3.78 – 3.79	%		12/23/14		1,760,704		1,755,889

									4,615,091

General Merchandise Stores–0.10%
Pilot Travel Centers LLC, Term Loan B		5.25	%		06/30/16		640,521		646,606

Health Care Distributors–1.03%
IMS Health, Inc., Term Loan		5.25	%		02/26/16		2,203,944		2,212,208

Warner Chilcott PLC
Add On Term Loan		6.25	%		04/30/15		1,784,698		1,787,411

Term Loan A		6.00	%		10/30/14		409,732		407,650

Term Loan B1		6.25	%		04/30/15		193,060		193,336

Term Loan B2		6.25	%		04/30/15		321,481		321,955

Term Loan B3^(e)		—			01/18/16		1,571,404		1,580,024

Term Loan B4^(e)		—			01/18/16		510,196		513,030

									7,015,614

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

16 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Health Care Equipment–1.25%
Biomet, Inc.
Term Loan^(e)		—	%		03/25/15	$	554,461	$	537,054

Term Loan		3.26 – 3.54	%		03/25/15		5,539,205		5,365,301

CONMED Corp., Term Loan		1.77	%		04/13/13		897,614		843,757

DJO Finance LLC, Term Loan		3.26	%		05/20/14		1,834,687		1,747,374

									8,493,486

Health Care Facilities–4.29%
Community Health Systems
Delay Draw Term Loan		2.55	%		07/25/14		397,923		375,826

Term Loan B		2.51 – 2.55	%		07/25/14		7,272,408		6,867,154

HCA, Inc.
Term Loan B^(e)		—			11/07/12		1,500,002		1,380,002

Term Loan B		2.78	%		11/18/13		265,503		256,034

Term Loan B2		3.78	%		03/31/17		8,053,547		7,802,759

Health Management Associates, Inc., Term Loan B		2.28	%		02/28/14		3,945,135		3,697,952

IASIS Healthcare Corp.
Delay Draw Term Loan		2.26	%		03/14/14		701,113		666,495

LOC		0.16	%		03/14/14		381,558		362,719

Term Loan B		2.26	%		03/14/14		2,025,751		1,924,099

Medical Properties Trust, Inc., Term Loan B		5.00	%		05/17/16		1,337,710		1,324,333

Universal Health Services, Inc., Term Loan B^(e)		—			07/15/16		4,590,740		4,587,848

									29,245,221

Health Care Services–2.01%
Aurora Diagnostics, LLC, Term Loan B		6.25	%		05/26/16		1,762,322		1,731,482

Fresenius Medical Care Holdings, Inc.
Term Loan C1		4.50	%		09/10/14		223,895		225,102

Term Loan C2		4.50	%		09/10/14		127,895		128,584

Genoa Healthcare LLC
Second Lien Term Loan		10.75	%		02/10/13		132,000		108,900

Term Loan B		5.50	%		08/10/12		87,947		83,769

Gentiva Health Serviced, Inc., Term Loan B		6.75	%		08/17/16		1,287,747		1,271,650

Harlan Sprague Dawley, Inc., Term Loan B		3.77	%		07/11/14		2,608,372		2,373,619

Psychiatric Solutions, Inc.
Term Loan B^(e)		—			07/02/12		224,648		222,963

Term Loan B		2.06 – 2.28	%		07/02/12		4,464,204		4,430,722

Royalty Pharma AG, Term Loan B		2.78	%		04/16/13		429,087		424,395

Skilled Healthcare LLC, Term Loan B		5.25	%		04/09/16		997,393		933,061

Sun Healthcare Group, Inc.
Syn LOC		0.43	%		04/19/14		57,746		56,323

Term Loan B		3.53 – 3.70	%		04/19/14		116,250		113,385

Trizetto Group, Inc., Term Loan B		7.50	%		08/04/15		727,767		725,947

United Surgical Partners International, Inc.
Delay Draw Term Loan		2.27	%		04/18/14		171,957		162,285

Term Loan B		2.27 – 2.50	%		04/18/14		752,620		708,091

									13,700,278

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

17 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Health Care Supplies–0.74%
Bausch & Lomb Inc.
Delay Draw Term Loan		3.51	%		04/26/15	$	433,165	$	415,973

Revolver Loan^(d)		0	%		10/25/13		1,600,000		1,440,000

Revolver Loan		3.01	%		10/25/13		400,000		360,000

Term Loan B		3.51 – 3.78	%		04/26/15		1,786,689		1,715,971

Catalent Pharma Solutions, Term Loan		2.51	%		04/10/14		1,238,430		1,120,011

									5,051,955

Hotels, Resorts & Cruise Lines–0.48%
American Gaming Systems
Delay Draw Term Loan		3.27	%		05/14/13		503,117		378,178

Term Loan B		3.27	%		05/14/13		3,596,052		2,703,044

Centaur Gaming
First Lien Term Loan B^(f)		11.25	%		10/30/12		242,281		188,979

Second Lien Term Loan^(f)		14.25	%		10/30/13		125,118		5,005

Ginn Club & Resort
First Lien Term Loan B^(f)		9.50	%		06/08/11		105,289		5,791

Revolving Credit Loan^(f)		5.87 – 9.50	%		06/08/11		49,078		2,699

Second Lien Term Loan^(f)		13.50	%		06/08/12		127,556		638

									3,284,334

Household Products–1.46%
Jarden Corp.
Term Loan B2		2.28	%		01/24/12		31,910		31,733

Term Loan B4		3.78	%		01/26/15		55,524		55,335

Nice-Pak Products Inc., Term Loan		3.26	%		06/18/14		569,187		529,879

Rent-A-Center
Term Loan B		2.02 – 2.05	%		06/30/12		7,077		7,060

Term Loan B		3.54	%		03/31/15		125,976		126,291

Reynolds Packaging Group
Add On Term loan B		5.75	%		05/05/16		1,460,070		1,456,420

Term Loan B		6.25	%		11/05/15		2,012,242		2,009,093

Spectrum Brands, Inc., Term Loan		8.00	%		06/16/16		5,639,561		5,709,632

									9,925,443

Human Resource & Employment Services–1.26%
Koosharem Corp.
First Lien Term Loan		10.25	%		06/30/14		725,274		568,133

Second Lien Term Loan		14.25	%		12/31/14		303,340		98,586

Term Loan^(e)		—			08/01/11		1,850,000		1,822,250

Term Loan		16.25	%		08/01/11		1,850,000		1,822,250

Kronos Inc.
First Lien Term Loan		2.53	%		06/11/14		1,275,890		1,203,055

First Lien Term Loan		6.28	%		06/11/15		3,255,649		3,048,101

									8,562,375

Industrial Conglomerates–0.82%
CONTECH Construction Products, Inc., Term Loan B		2.27	%		01/31/13		1,297,066		1,090,346

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

18 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Industrial Conglomerates–(continued)

Dresser Inc.
Second Lien Term Loan		6.11	%		05/04/15	$	1,000,000	$	963,440

Term Loan B		2.61	%		05/04/14		3,710,760		3,544,944

									5,598,730

Industrial Machinery–0.73%
Gleason Corp., First Lien Term Loan		2.00 – 2.31	%		06/30/13		123,748		116,014

Itron Inc., Term Loan		3.77	%		04/18/14		96,491		96,383

Pro Mach, Inc., Term Loan		2.52	%		12/14/11		553,137		470,167

Rexnord Corp.
Add On Term Loan B2		2.56	%		07/19/13		93,888		89,282

Sr. Unsec. Term Loan		7.54	%		03/01/13		2,742,275		2,229,812

Term Loan B		2.81	%		07/19/13		2,082,062		1,998,135

									4,999,793

Insurance Brokers–0.30%
Sedgwick Claims Management Services, Inc., Term Loan B		5.50	%		05/28/16		1,385,200		1,380,012

Swett & Crawford Group, Inc.
First Lien Term Loan		2.51	%		04/03/14		373,983		300,589

Second Lien Term Loan		5.76	%		10/03/14		105,200		68,906

USI Holdings Corp., Term Loan B		3.29	%		05/05/14		316,091		290,127

									2,039,634

Integrated Telecommunication Services–0.95%
Cavalier Telephone Inc., Term Loan B		10.50	%		12/31/12		877,706		835,137

Cincinnati Bell Inc.
Term Loan B^(e)		—			06/11/17		168,897		168,634

Term Loan B		6.50	%		06/11/17		1,084,566		1,082,874

Hargray Communications Group, Inc., Term Loan B		2.67	%		06/27/14		149,026		144,804

Integra Telecom, Inc., Term Loan B		9.25	%		04/15/15		1,883,819		1,886,174

Midcontinent Communications, Term Loan B		6.25	%		12/31/16		1,264,197		1,264,456

Time Warner Inc., Term Loan B		2.02	%		01/07/13		1,113,248		1,078,148

									6,460,227

Internet Retail–0.43%
CDW LLC
Term Loan B^(e)		—			10/10/14		1,168,432		1,049,690

Term Loan B		4.28	%		10/10/14		2,114,678		1,899,773

									2,949,463

Internet Software & Services–0.27%
Network Solutions, LLC, Term Loan B		2.52	%		03/07/14		671,150		620,814

SAVVIS, Inc., Term Loan		6.75	%		08/04/16		435,927		431,659

SkillSoft PLC, Term Loan B		6.50	%		05/26/17		786,453		790,633

									1,843,106

Investment Banking & Brokerage–0.05%
Gartmore Investment Ltd., U.S. Term Loan		2.26	%		05/11/14		357,741		321,073

IT Consulting & Other Services–1.76%
Brocade Communications Systems, Inc., Term Loan		7.00	%		10/07/13		1,972,198		1,982,986

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

19 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

IT Consulting & Other Services–(continued)

SunGuard Data Systems, Inc.
U.S. Revolver Loan^(d)		0	%		08/11/11	$	1,500,000	$	1,432,501

U.S. Term Loan A		2.04 – 2.04	%		02/28/14		255,559		245,896

U.S. Term Loan B		3.97 – 4.04	%		02/28/16		6,510,376		6,363,892

U.S. Term Loan C		6.75	%		02/28/14		1,979,849		1,989,748

									12,015,023

Leisure Facilities–3.41%
24 Hour Fitness Worldwide Inc., Term Loan B		6.75	%		04/22/16		2,765,705		2,588,520

AMF Group
First Lien Term Loan B		2.76 – 2.79	%		06/08/13		1,345,772		1,169,140

Second Lien Term Loan		6.54	%		12/08/13		177,143		145,257

Cedar Fair, L.P., Term Loan B		5.50	%		12/15/16		915,869		920,971

Harrah’s Operating Co., Inc.
Term Loan B1^(e)		—			01/28/15		1,660,262		1,425,435

Term Loan B1		3.50	%		01/28/15		3,124,315		2,682,412

Term Loan B2^(e)		—			01/28/15		3,000,003		2,581,719

Term Loan B2		3.50	%		01/28/15		1,569,027		1,350,258

Term Loan B3		3.50 – 3.53	%		01/28/15		1,905,886		1,634,383

Live Nation Entertainment, Inc., Term Loan B		4.50	%		11/06/16		882,548		871,516

Regal Entertainment Group, Term Loan B		4.03	%		11/19/16		5,714,527		5,678,783

Six Flags Inc.
Second Lien Term Loan		9.25	%		12/31/16		400,000		410,500

Term Loan B		6.00	%		06/30/16		1,802,275		1,801,518

									23,260,412

Leisure Products–2.02%
Cinemark USA, Inc., Term Loan		3.52 – 3.65	%		04/30/16		1,283,620		1,278,228

Golden Nugget, Inc., Second Lien Term Loan		3.52	%		12/31/14		116,593		58,296

IMG Worldwide, Inc., Term Loan B		7.25	%		06/14/15		4,049,016		3,952,852

Panavision Inc., Second Lien Term Loan		8.03	%		03/30/12		9,500		5,320

Sabre Holdings Corp., Term Loan		2.26 – 2.48	%		09/30/14		6,053,581		5,457,122

Travelport Ltd.
Delay Draw Term Loan		2.76 – 3.03	%		08/23/13		600,352		572,211

U.S. Syn LOC		3.03	%		08/23/13		230,515		219,670

U.S. Term Loan B		2.76	%		08/23/13		1,269,485		1,209,580

True Temper Sports Inc., Term Loan		8.00	%		10/14/13		1,021,393		979,899

									13,733,178

Marine–0.45%
Dockwise Ltd.
Term Loan B1^(e)		—			03/13/15		287,544		262,565

Term Loan B2^(e)		—			03/13/15		1,217,816		1,112,025

Term Loan C^(e)		—			03/13/16		266,663		244,663

Term Loan C2^(e)		—			03/13/16		1,217,816		1,117,347

US Shipping LLC, Term Loan		2.50 – 9.20	%		08/07/13		466,692		332,080

									3,068,680

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

20 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Publishing–(continued)

Gatehouse Media, Inc.
Delay Draw Term Loan		2.27	%		08/28/14	$	2,467,841	$	976,167

Term Loan		2.52	%		08/28/14		1,057,441		418,276

Term Loan B		2.27	%		08/28/14		4,138,287		1,639,217

Getty Images, Inc., Acquisition Term Loan		6.25	%		07/02/15		8,031,338		8,082,940

Hanley Wood LLC, Term Loan		2.56 – 2.63	%		03/08/14		321,750		147,467

Local Insight Regatta Holdings, Inc., Term Loan		7.75	%		04/23/15		3,044,658		2,277,145

									20,825,064

Real Estate Management & Development–0.08%
CB Richard Ellis Group, Inc., Term Loan B1-A		6.00	%		12/20/15		539,781		541,131

Semiconductors–0.65%
Freescale Semiconductor, Inc., Term Loan		4.56	%		12/01/16		4,920,185		4,421,500

Specialized Consumer Services–3.41%
Booz Allen Hamilton, Inc.
Term Loan B		7.50	%		07/31/15		1,453,647		1,458,422

Term Loan C		6.00	%		07/31/15		2,096,208		2,099,918

Jacobson Corp., Term Loan B		2.77	%		06/19/14		4,232,216		3,873,134

LPL Investment Holdings Inc.
Term Loan		2.01 – 2.28	%		06/28/13		305,990		297,575

Term Loan		5.25	%		06/28/17		4,556,539		4,556,539

ServiceMaster Company (The)
Delay Draw Term Loan^(e)		—			07/24/14		115,568		106,793

Delay Draw Term Loan		2.77	%		07/24/14		549,567		507,836

Syn LOC		0.41	%		07/24/14		5,000,000		4,495,325

Term Loan B^(e)		—			07/24/14		1,160,499		1,072,307

Term Loan B		2.77 – 3.04	%		07/24/14		5,167,352		4,774,658

									23,242,507

Specialized Finance–1.00%
Citco Group Ltd. (The), Term Loan B		4.75	%		06/30/14		96,235		91,424

Clarke American Corp., Term Loan B		2.76 – 3.03	%		06/30/14		3,355,569		2,903,976

E.A.Viner International Co., First Lien Term Loan B		5.04	%		07/31/13		23,979		23,019

MSCI Inc., Term Loan B		4.75	%		06/01/16		520,778		523,301

Nuveen Investments, LLC, Term Loan		3.48 – 3.53	%		11/13/14		3,654,186		3,241,190

									6,782,910

Specialty Chemicals–2.28%
Cognis Deutschland, Term Loan C		2.54	%		09/15/13		799,515		789,122

Hexion Specialty Chemicals, Inc.
Credit Linked Deposit		0.25	%		05/05/13		88,902		84,643

Revolver Loan^(d)		0	%		05/31/11		152,400		140,334

Revolver Loan		2.81	%		05/31/11		228,600		210,502

Term Loan C5		4.31	%		05/05/15		3,104,888		2,934,119

Term Loan C7		4.31	%		05/05/15		4,202,848		3,950,677

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

23 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Specialty Chemicals–(continued)

Huntsman ICI Chemicals LLC
Term Loan B^(e)		—	%		04/21/14	$	1,023,620	$	970,945

Term Loan B		1.90 – 1.98	%		04/21/14		2,890,134		2,741,408

Term Loan C^(e)		—			06/30/16		1,413,671		1,351,066

Term Loan C		2.51 – 2.65	%		06/30/16		2,314,856		2,212,342

MacDermid Inc., Term Loan B		2.26	%		04/12/14		173,580		161,690

									15,546,848

Specialty Stores–1.13%
FTD, Inc., Term Loan B^(e)		—			08/26/14		521,332		522,636

Mattress Firm, Term Loan B		2.52 – 2.69	%		01/18/14		302,468		265,415

Michaels Stores, Inc.
Term Loan B1		2.63 – 2.81	%		10/31/13		2,625,903		2,490,852

Term Loan B2		4.88 – 5.06	%		07/31/16		3,963,624		3,842,655

PETCO Animal Supplies, Inc.
Term Loan		2.51	%		10/26/13		330,078		318,054

Term Loan B		2.78	%		10/26/13		263,711		254,104

									7,693,716

Systems Software–1.81%
Allen Systems Group Inc., First Lien Term Loan		8.50	%		10/19/13		948,164		946,979

Dealer Comp-rey
Term Loan B^(e)		—			04/21/17		199,683		197,742

Term Loan B		5.25	%		04/21/17		5,596,632		5,542,233

Interactive Data Corp., Term Loan		6.75	%		01/29/17		2,053,689		2,071,874

Verint Systems, Inc., Term Loan		5.25	%		05/25/14		3,590,268		3,462,382

Vertafore, Inc., Term Loan B		6.75	%		07/29/16		147,527		147,048

									12,368,258

Technology Distributors–0.07%
Windstream Corp., Term Loan B2		3.02 – 3.28	%		12/17/15		504,586		502,693

Textiles–0.07%
Gold ToeMoretz, LLC, First Lien Term Loan		8.50	%		10/30/13		468,467		449,494

Trading Companies & Distributors–0.00%
Brenntag AG
Term Loan B2		4.02 – 4.06	%		01/20/14		16,346		16,367

U.S. Acquired Term Loan		4.01 – 4.48	%		01/20/14		931		935

									17,302

Trucking–0.72%
Swift Transportation Corp.
Syn LOC		8.25	%		05/10/14		2,500,000		2,395,825

Term Loan		8.25	%		05/10/14		2,560,907		2,492,620

									4,888,445

Wireless Telecommunication Services–4.08%
Asurion Corp.
First Lien Term Loan		3.26 – 3.40	%		07/03/14		4,764,702		4,571,419

Second Lien Term Loan		6.79	%		07/03/15		3,072,549		2,991,894

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

24 Invesco Floating Rate Fund


	Interest			Maturity		Principal
	Rate			Date		Amount		Value

Wireless Telecommunication Services–(continued)

FairPoint Communications, Inc., Term Loan B^(f)		5.00	%		03/31/15	$	3,922,715	$	2,553,687

Global Tel*Link, Term Loan		6.00 – 6.25	%		03/02/16		1,791,240		1,792,082

MetroPCS Communications, Inc.
Term Loan B^(e)		—			11/03/13		207,962		203,543

Term Loan B		2.63	%		11/03/13		398,689		390,217

Term Loan B2^(e)		—			11/03/16		639,439		631,440

Term Loan B2		3.81	%		11/03/16		4,343,543		4,289,205

RCN Corp., Term Loan B^(e)		—			05/24/16		6,024,563		5,996,307

Securus Technologies, Inc., Term Loan B		8.00	%		10/31/14		3,990,000		4,009,950

U.S. TelePacific, Term Loan B		9.25	%		08/17/15		404,625		406,143

									27,835,887

Total Senior Secured Floating Rate Interest Loans (Cost $651,968,076)									644,962,753


	Shares

Domestic Common Stocks & Other Equity Interests–2.22%
Aerospace & Defense–0.04%
ACTS Aero Technical Support & Services, Inc.^(g)		15,079	263,889

Auto Parts & Equipment–0.02%
Dayco Products, LLC^(g)		4,117	163,309

Broadcasting–0.02%
Citadel Broadcasting Corp.–Class B^(g)		1	24

New Vision Television^(g)		6,734	0

New Vision Television–Class A^(g)		8,574	128,610

			128,634

Building Products–0.30%
Masonite Worldwide Holdings (Canada)^(g)		53,093	2,017,534

United Subcontractors, Inc.^(g)		4,587	0

			2,017,534

Commodity Chemicals–1.58%
LyondellBasell Industries–Class A^(g)		273,591	5,608,615

LyondellBasell Industries–Class B^(g)		250,755	5,137,970

			10,746,585

Diversified Real Estate Activities–0.03%
Lake Las Vegas Resort–Class A^(g)		518	209,976

Lake Las Vegas Resort–Class B^(g)		4	1,674

Lake Las Vegas Resort–Wts. C, expiring 07/15/15^(g)		17	0

Lake Las Vegas Resort–Wts. D, expiring 07/15/15^(g)		24	0

Lake Las Vegas Resort–Wts. E, expiring 07/15/15^(g)		27	0

Lake Las Vegas Resort–Wts. F, expiring 07/15/15^(g)		30	0

Lake Las Vegas Resort–Wts. G, expiring 07/15/15^(g)		34	0

			211,650

Environmental & Facilities Services–0.14%
Safety-Kleen Holdco, Inc., (Acquired 12/24/03; Cost $2,062,077)^(g)(h)(i)		150,812	923,723

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

25 Invesco Floating Rate Fund

Investment Abbreviations:


DIP		– Debtor-in-possession
Gtd.		– Guaranteed
LOC		– Letter of Credit
REIT		– Real Estate Investment Trust
Sec.		– Secured
Sr.		– Senior
Syn LOC		– Synthetic Letter of Credit
Unsec.		– Unsecured
Unsub.		– Unsubordinated
Wts.		– Warrants

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)		Senior secured corporate loans and senior secured debt securities are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended and may be subject to contractual and legal restrictions on sale. Senior secured corporate loans and senior secured debt securities in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Inter-Bank Offered Rate (“LIBOR”), on set dates, typically every 30 days but not greater than one year; and/or have interest rates that float at a margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.
^(c)		Senior secured floating rate interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the senior secured floating rate interests will have a expected average life of three to five years.
^(d)		All or a portion of this holding is subject to unfunded loan commitments. See Note 7.
^(e)		This floating rate interest will settle after August 31, 2010, at which time the interest rate will be determined.
^(f)		Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at August 31, 2010 was $3,539,774, which represented 0.52% of the Fund’s Net Assets^(g) Non-income producing security.
^(h)		Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at August 31, 2010 was $3,898,823, which represented 0.57% of the Fund’s Net Assets.
⁽ⁱ⁾		Acquired as part of a bankruptcy restructuring.
^(j)		Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2010.
^(k)		The money market fund and the Fund are affiliated by having the same investment adviser.

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

27 Invesco Floating Rate Fund

Statement of Cash Flows

For the year ended August 31, 2010


Cash provided by operating activities:
Net increase in net assets resulting from operations	$	46,833,677

Adjustments to reconcile net increase in net assets to net cash provided by (used in) operating activities:
Purchases of investments		(730,449,133	)

Proceeds from disposition of investments and principal payments		493,049,572

Increase in receivables and other assets		(1,662,032	)

Amortization of premiums and accretion of discounts on investment securities		(10,942,217	)

Increase in accrued expenses and other payables		207,873

Unrealized appreciation on investment securities		(10,038,366	)

Net realized gain from investment securities		(9,257,683	)

Net cash provided by (used in) operating activities		(222,258,309	)

Cash provided by financing activities:
Dividends paid to shareholders		(6,164,843	)

Proceeds from shares of beneficial interest sold		505,950,052

Increase/Decrease in payable for amount due custodian		37,497

Disbursements from shares of beneficial interest reacquired		(248,008,693	)

Net cash provided by financing activities		251,814,013

Net increase in cash and cash equivalents		29,555,704

Cash and cash equivalents at beginning of period		29,117,262

Cash and cash equivalents at end of period	$	58,672,966

Non-cash financing activities:
Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders	$	20,939,008

Supplemental disclosure of cash flow information:


Cash paid during the year for line of credit expenses was $79,326.

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

The Fund’s investment objectives are to provide a high level of current income and, secondarily, preservation of capital.

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

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


A.		Security Valuations — Senior secured floating rate loans and senior secured floating rate debt securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.
		Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales 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 (but not securities reported on the NASDAQ Stock Exchange) are valued based on the prices furnished by independent pricing services, in which case the securities

31 Invesco Floating Rate Fund


		may be considered fair valued, or by market makers. Each security reported on the NASDAQ Stock Exchange is valued at the NASDAQ Official Closing Price (“NOCP”) as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price.
		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 the ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Change in Valuation Methodology of Corporate Loans — Effective January 1, 2010, a change in pricing valuation methodology was implemented for Corporate Loans from bid quotation to the mean or otherwise calculated at the mid price between the bid and asked quotation. The change was implemented to align pricing methodologies among all debt instruments. The impact of this valuation policy change was an increase of $3,164,818 to investments at value, unrealized appreciation and net assets and approximately $0.06 per share to the Fund.
C.		Securities Transactions and Investment Income — Securities transaction are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from the settlement date. Facility fees received may be amortized over the life of the loan. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
D.		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

32 Invesco Floating Rate Fund


		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.
E.		Distributions — Distributions from income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
F.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		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.
G.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
H.		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.
I.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.		Other Risks — The Fund may invest all or substantially of its assets in senior secured floating rate loans, senior secured debt securities or other securities rated below investment grade. These securities are generally considered to have speculative characteristics and are subject to greater risk of loss of principal and interest than higher rated securities. The value of lower quality debt securities and floating rate loans can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market or economic developments.
		The Fund invests in Corporate Loans from U.S. or non-U.S. companies (the “Borrowers”). The investment of the Fund in a Corporate Loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders (“Lenders”) or one of the participants in the syndicate (“Participant”), one or more of which administers the loan on behalf of all the Lenders (the “Agent Bank”), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Fund’s rights against the Borrower but also for the receipt and processing of payments due to the Fund under the Corporate Loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as “Intermediate Participants”.
K.		Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
L.		Cash and Cash Equivalents — For the purposes of the Statement of Cash Flows the Fund defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received.
M.		Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in Corporate Loans and Corporate Debt Securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
N.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and

33 Invesco Floating Rate Fund


		(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.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0	.65%

Next $4.5 billion		0	.60%

Next $5 billion		0	.575%

Over $10 billion		0	.55%

The Adviser has contractually agreed, through at least December 31, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit Total Annual Operating Expenses After Fee Waiver (excluding certain items discussed below) of Class A, Class C, Class R, Class Y and Institutional Class shares to 1.50%, 2.00%, 1.75%, 1.25% and 1.25% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Total Annual Operating Expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on December 31, 2011. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

For the year ended August 31, 2010, the Adviser waived advisory fees of $84,536.

At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the year ended August 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $272.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended August 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services 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 and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R 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, 0.75% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the year ended August 31, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

34 Invesco Floating Rate Fund

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

NOTE 3—Additional Valuation Information

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


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


	Level 1		Level 2		Level 3		Total

Equity Securities	$	71,454,875	$	1,366,158	$	1,004,367	$	73,825,400

Corporate Debt Securities		—		653,961,155		3,071,939		657,033,094

	$	71,454,875	$	655,327,313	$	4,076,306	$	730,858,494

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the year ended August 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,797.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

During the year ended August 31, 2010, the Fund paid legal fees of $3,889 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Borrowings

The Fund is a party to a committed line of credit facility with a syndicate administered by JPMorgan Chase Bank. The Fund may borrow up to the lesser of (1) $10,000,000, or (2) the limits set by its prospectus for borrowings. The Fund is charged a commitment fee of 0.15% on the unused balance of the committed line and an up front fee 0.03% on the aggregate commitment. Prior to October 26, 2009, the commitment fee was 0.07%.

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

35 Invesco Floating Rate Fund

NOTE 7—Unfunded Loan Commitments

As of August 31, 2010, the Fund had unfunded loan commitments of $9,935,553, which could be extended at the option of the borrower, pursuant to the following loan agreements with the following borrowers:


		Unfunded
Borrower		Commitments

Aero Technology Supply	Revolver Loan	$	4,539

Bausch & Lomb Inc.	Revolver Loan		1,440,000

Calpine Corp.	Revolver Loan		2,692,500

Delta Air Lines, Inc.	Revolver Loan		1,821,260

Delta Air Lines, Inc.	Revolver Loan		1,278,750

Hexion Specialty Chemicals, Inc.	Revolver Loan		140,334

Lake Las Vegas Resort	Revolver Loan		106,164

Nuance Communications, Inc.	Revolver Loan		109,505

Pinnacle Foods Group, Inc. (Aurora Foods)	Revolver Loan		910,000

SunGuard Data Systems, Inc.	U.S. Revolver Loan		1,432,501

		$	9,935,553

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

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	27,568,522	$	15,797,455

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	203,904

Net unrealized appreciation (depreciation) — investments		(16,082,895	)

Temporary book/tax differences		(48,073	)

Capital loss carryforward		(36,193,428	)

Shares of beneficial interest		733,700,897

Total net assets	$	681,580,405

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

The Fund utilized $2,939,644 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2011	$	10,298,295

August 31, 2012		2,745,717

August 31, 2013		5,482,284

August 31, 2014		2,498,917

August 31, 2016		1,685,685

August 31, 2017		13,482,530

Total capital loss carryforward	$	36,193,428


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

36 Invesco Floating Rate Fund

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $822,299,256 and $544,800,793, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	13,428,554

Aggregate unrealized (depreciation) of investment securities		(29,511,449	)

Net unrealized appreciation (depreciation) of investment securities	$	(16,082,895	)

Cost of investments for tax purposes is $746,941,389.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of expired capital loss carryforward on August 31, 2010, undistributed net investment income was increased by $6,181, undistributed net realized gain (loss) was increased by $18,337,222 and shares of beneficial interest decreased by $18,343,403. This reclassification had no effect on the net assets of the Fund.

NOTE 11—Share Information


	Summary of Share Activity

	Years ended August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Sold:
Class A		38,559,170		$	287,610,728			22,788,600		$	140,448,419

Class C		15,356,905			113,997,965			9,058,544			56,396,083

Class R		89,309			674,242			23,993			160,476

Class Y^(b)		13,290,665			99,476,271			3,086,832			19,854,491

Institutional Class		950,425			7,085,241			779,815			4,913,124

Issued as reinvestment of dividends:
Class A		1,644,780			12,202,545			1,023,849			6,419,451

Class C		669,964			4,944,909			398,007			2,493,435

Class R		4,552			33,848			3,234			20,088

Class Y		212,445			1,578,879			22,822			151,664

Institutional Class		294,492			2,178,827			403,283			2,501,384

Reacquired:^(c)
Class A^(b)		(22,928,890	)		(170,197,830	)		(10,735,224	)		(69,063,291	)

Class C		(5,231,659	)		(38,434,473	)		(3,310,738	)		(21,665,432	)

Class R		(9,775	)		(73,186	)		(8,333	)		(51,961	)

Class Y		(3,826,963	)		(28,224,167	)		(257,014	)		(1,730,178	)

Institutional Class		(1,679,345	)		(12,284,437	)		(2,076,229	)		(13,471,208	)

Net increase in share activity		37,396,075		$	280,569,362			21,201,441		$	127,376,545


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 61% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
		In addition, 5% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco.
^(b)		Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A into Class Y shares of the Fund:


Class	Shares			Amount

Class Y		34,580		$	252,087

Class A		(34,580	)		(252,087	)


^(c)		Net of redemption fees of $51,484 and $27,580 allocated among the classes based on relative net assets of each class for the years ended August 31, 2010 and 2009, respectively.

37 Invesco Floating Rate Fund

NOTE 11—Financial Highlights

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


																						Ratio of			Ratio of
																						expenses			expenses
						Net gains																to average			to average net			Ratio of net
	Net asset					(loss) on						Dividends										net assets			assets without			investment
	value,		Net			securities			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment			(both realized			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income			and unrealized)			operations			income			of period^(a)		Return^(b)			(000s omitted)		absorbed			absorbed			net assets			turnover^(c)

Class A
Year ended 08/31/10	$	7.09	$	0.40	^(d)	$	0.39	^(e)	$	0.79		$	(0.41	)	$	7.47		11.28	%^(e)	$	359,476		1.12	%^(f)(g)		1.14	%^(f)(g)		5.34	%^(f)		106	%
Year ended 08/31/09		7.99		0.41	^(d)		(0.89	)		(0.48	)		(0.42	)		7.09		(4.97	)		218,448		1.24	^(g)		1.25	^(g)		6.50			52
Year ended 08/31/08		8.67		0.53	^(d)		(0.68	)		(0.15	)		(0.53	)		7.99		(1.80	)		141,803		1.36	^(g)		1.37	^(g)		6.36			66
Year ended 08/31/07		9.06		0.60	^(d)		(0.39	)		0.21			(0.60	)		8.67		2.28			220,449		1.29	^(g)		1.30	^(g)		6.65			117
Eight months ended 08/31/06		9.04		0.37	^(d)		0.02			0.39			(0.37	)		9.06		4.32			155,953		1.58	^(g)(h)		1.86	^(g)(h)		6.06	^(g)(h)		54
Year ended 12/31/05		9.02		0.43			0.01			0.44			(0.42	)		9.04		5.00			159,206		2.04	^(g)		2.17	^(g)		4.69			56

Class C
Year ended 08/31/10		7.06		0.36	^(d)		0.39	^(e)		0.75			(0.37	)		7.44		10.75	^(e)		189,966		1.62	^(f)(g)		1.64	^(f)(g)		4.84	^(f)		106
Year ended 08/31/09		7.97		0.38	^(d)		(0.90	)		(0.52	)		(0.39	)		7.06		(5.61	)		103,975		1.74	^(g)		1.75	^(g)		6.00			52
Year ended 08/31/08		8.65		0.48	^(d)		(0.68	)		(0.20	)		(0.48	)		7.97		(2.31	)		68,452		1.86	^(g)		1.87	^(g)		5.86			66
Year ended 08/31/07		9.04		0.56	^(d)		(0.39	)		0.17			(0.56	)		8.65		1.76			81,479		1.79	^(g)		1.80	^(g)		6.15			117
Eight months ended 08/31/06		9.02		0.34	^(d)		0.02			0.36			(0.34	)		9.04		4.05			44,853		1.97	^(g)(h)		2.36	^(g)(h)		5.67	^(h)		54
Year ended 12/31/05		8.99		0.40			0.03			0.43			(0.40	)		9.02		4.85			47,624		2.29	^(g)		2.67	^(g)		4.44			56

Class R
Year ended 08/31/10		7.10		0.39	^(d)		0.39	^(e)		0.78			(0.39	)		7.49		11.15	^(e)		1,080		1.37	^(f)(j)		1.39	^(f)(j)		5.09	^(f)		106
Year ended 08/31/09		8.00		0.40	^(d)		(0.89	)		(0.49	)		(0.41	)		7.10		(5.19	)		427		1.49	^(j)		1.50	^(j)		6.25			52
Year ended 08/31/08		8.66		0.51	^(d)		(0.66	)		(0.15	)		(0.51	)		8.00		(1.81	)		330		1.61	^(j)		1.62	^(j)		6.11			66
Year ended 08/31/07		9.06		0.58	^(d)		(0.40	)		0.18			(0.58	)		8.66		1.91			278		1.54	^(j)		1.55	^(j)		6.40			117
Period ended 08/31/06⁽ⁱ⁾		9.11		0.21	^(d)		(0.05	)		0.16			(0.21	)		9.06		1.80			78		1.53	^(h)(j)		1.53	^(h)(j)		6.11	^(h)		54

Class Y
Year ended 08/31/10		7.07		0.42	^(d)		0.39	^(e)		0.81			(0.42	)		7.46		11.72	^(e)		93,479		0.87	^(f)(j)		0.89	^(f)(j)		5.59	^(f)		106
Period ended 08/31/09⁽ⁱ⁾		7.29		0.41	^(d)		(0.24	)		0.17			(0.39	)		7.07		3.48			20,176		1.00	^(h)(j)		1.01	^(h)(j)		6.74	^(h)		52

Institutional Class
Year ended 08/31/10		7.09		0.42	^(d)		0.39	^(e)		0.81			(0.43	)		7.47		11.65	^(e)		37,580		0.79	^(f)(j)		0.81	^(f)(j)		5.67	^(f)		106
Year ended 08/31/09		7.99		0.44	^(d)		(0.89	)		(0.45	)		(0.45	)		7.09		(4.62	)		38,720		0.88	^(j)		0.89	^(j)		6.86			52
Year ended 08/31/08		8.67		0.56	^(d)		(0.68	)		(0.12	)		(0.56	)		7.99		(1.46	)		50,786		1.01	^(j)		1.02	^(j)		6.71			66
Year ended 08/31/07		9.06		0.63	^(d)		(0.39	)		0.24			(0.63	)		8.67		2.62			48,138		0.95	^(j)		0.96	^(j)		6.99			117
Period ended 08/31/06⁽ⁱ⁾		9.11		0.23	^(d)		(0.05	)		0.18			(0.23	)		9.06		2.00			24,335		0.98	^(h)(j)		0.98	^(h)(j)		6.66	^(h)		54


^(a)		Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share.
^(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)		Calculated using average shares outstanding.
^(e)		Includes the impact of the valuation policy on Corporate Loans effective January 1, 2010. Had the policy change not occurred, Net gains on securities (both realized and unrealized) per share would have been $0.33, $0.33, $0.33, $0.33 and $0.33 for Class A, Class C, Class R, Class Y and Institutional Class shares, respectively and total returns would have been lower..
^(f)		Ratios are based on average daily net assets (000’s omitted) of $300,593, $145,804, $709, $40,261 and $37,673 for Class A, Class C, Class R, Class Y and Institutional Class shares, respectively.
^(g)		Ratio includes line of credit expense of 0.02%, 0.02%, 0.06%, 0.02%, 0.01% (annualized) and 0.54% the years ended August 31, 2010, August 31, 2009, August 31, 2008, August 31, 2007, the eight months ended August 31, 2006 and the year ended December 31, 2005, respectively.
^(h)		Annualized.
⁽ⁱ⁾		Commencement date of April 13, 2006 for Class R and Institutional Class shares and October 3, 2008 for Class Y shares.
^(j)		Ratio includes line of credit expense of 0.02%, 0.02%, 0.06%, 0.02% and 0.01% (annualized) the years ended August 31, 2010, August 31, 2009, August 31, 2008, August 31, 2007 and the eight months ended August 31, 2006, respectively.

38 Invesco Floating Rate Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Floating Rate Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Floating Rate Fund (formerly known as AIM Floating Rate Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, its cash flows for the year then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and intermediate participants, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

October 22, 2010

Houston, Texas

39 Invesco Floating Rate Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	1,023.80	$	5.66	$	1,019.61	$	5.65		1.11	%

C		1,000.00		1,022.50		8.21		1,017.09		8.19		1.61

R		1,000.00		1,023.90		6.94		1,018.35		6.92		1.36

Y		1,000.00		1,025.00		4.39		1,020.87		4.38		0.86

Institutional		1,000.00		1,025.40		4.03		1,021.22		4.02		0.79


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

40 Invesco Floating Rate Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Floating Rate Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Independent Written Fee Evaluation


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


B.	Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the sub-advisory contracts for the Fund, as Invesco Senior Secured Management, Inc. currently manages assets of the Fund.

The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper

41 Invesco Floating Rate Fund

performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, and against the S&P/LSTA Leveraged Loan Index. The Board noted that the performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period, the fifth quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one Canadian mutual fund advised by an Affiliated Sub-Adviser. The Board noted that the Fund’s effective fee rate was below the effective fee rate for the Canadian fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least December 31, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.


D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes three breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

42 Invesco Floating Rate Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/ completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-09913 and 333-36074.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client

Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.


		FLR-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Multi-Sector Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Multi-Sector Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended August 31, 2010, equity markets generally produced positive results and the economy showed signs of improvement. Invesco Multi-Sector Fund underperformed the S&P 500 Index, the Fund’s broad market and style-specific index, during the reporting period. The S&P 500 Index has exposure to all 10 sectors of the market. The Fund, on the other hand, invests at least 80% of its assets approximately equally in only five of these 10 market sectors and is overweight the following sectors relative to the index: energy, financial services, health care, information technology (IT) and “leisure” (represented by the consumer discretionary sector). The Fund’s underperformance relative to its benchmark was predominately due to its security selection and overweight exposure in the energy sector. Underweight exposure in the consumer staples and industrials sectors also hurt the Fund’s relative performance.

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

Fund vs. Indexes


Class A Shares	-1.16	%

Class B Shares	-1.86

Class C Shares	-1.86

Class Y Shares	-0.91

Institutional Shares	-0.61

S&P 500 Index^▼ (Broad Market/Style-Specific Index)	4.93

Lipper Multi-Cap Core Funds Index^▼ (Peer Group Index)	6.15


^▼		Lipper Inc.

How we invest

Your Fund invests normally one-fifth of its assets in equity securities from each of the five following market sectors: energy, financial services, health care, IT and “leisure” (represented by the consumer discretionary sector). Fund managers act independently within their respective sector.

In selecting securities for the Fund, we use a research-oriented “bottom-up” investment approach, focusing on company fundamentals, growth and value prospects. In general, the Fund

emphasizes companies that we believe are well managed and should generate above-average long-term capital appreciation. These companies typically exhibit strong return on capital, cash flow, sustainable growth and superior business strategies that make them market leaders.

In the resulting portfolio, each sector has approximately 20 to 25 holdings. The Fund is rebalanced annually near the fiscal year-end to return the sectors to their approximate equal weightings.

We consider selling a security when we conclude:

n		Its fundamentals are deteriorating.

n		A more attractive opportunity presents itself.

n		The company is unable to capitalize on market opportunity.

n		There is a questionable change in management’s strategic direction.

Market conditions and your Fund

The U.S. economy provided signs of improvement during the Fund’s fiscal year, potentially indicating that the economy has transitioned from a contraction phase into an expansionary phase. Nevertheless, the pace of recovery remained modest and the transition from government stimulus-induced growth to private economic recovery was uncertain.

The U.S. Federal Reserve’s federal funds target rate remained low ranging from zero to 0.25%.¹ Real gross domestic product (GDP) registered positive growth during the reporting period with annualized quarterly increases of 5.0%, 3.7% and 1.7% for the fourth quarter of 2009, and the first and second quarters of 2010, respectively.² Inflation, measured by the seasonally-adjusted Consumer Price Index (CPI), remained relatively benign. While labor markets improved as layoffs moderated, new hiring remained quite weak. Unemployment, after climbing steadily throughout 2009, fell slightly during the first half of 2010 to a rate of 9.6% nationwide as of August 2010.³

Against this backdrop, financial services, energy and health care were among the weakest performing sectors of the S&P 500 Index.⁴ Conversely, consumer discretionary, industrials and telecommunication services were the best

Portfolio Composition

By Sector


Information Technology	20.6	%

Energy	19.3

Health Care	19.2

Consumer Discretionary	18.3

Financials	16.6

Consumer Staples	3.0

Money Market Funds

Plus Other Assets Less Liabilities	3.0


Total Net Assets		$277.1 million

Total Number of Holdings*		97

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

*Excluding money market fund holdings.

Top 10 Equity Holdings*


1. Apple Inc.	3.6	%

2. DaVita, Inc.	2.4

3. Walt Disney Co. (The)	2.0
4. Google Inc.	1.9

5. Thermo Fisher Scientific, Inc.	1.7

6. Occidental Petroleum Corp.	1.7

7. Marriott International Inc.	1.6

8. Exxon Mobil Corp.	1.6

9. Genzyme Corp.	1.5

10. Apache Corp.	1.5

S&P 500 Index Weightings and Returns

By sector, 8/31/09–8/31/10


	Weighting			Return
Sector	as of 8/31/10

Consumer Discretionary
(“Leisure”)		10.25	%		17.19	%

Consumer Staples		11.77			10.64

Energy		10.91			0.35

Financials		15.90			-6.54

Health Care		11.66			0.38

Industrials		10.54			14.48

Information Technology		18.26			3.11

Materials		3.61			7.37

Telecommunication Services		3.25			13.35

Utilities		3.85			10.22

Source: Lipper Inc.

Invesco Multi-Sector Fund

performing sectors. ⁴ Market allocation accounted for approximately half of the Fund’s underperformance versus the S&P 500 Index. Specifically, each overweight sector, with the exception of the consumer discretionary sector, negatively affected the Fund’s relative performance. Security selection in the consumer discretionary and energy sectors, as well as a lack of holdings in the industrials sector, also detracted from Fund performance. On the other hand, overweight exposure to the consumer discretionary sector and security selection in the health care and IT sectors benefited Fund performance relative to the S&P 500 Index.

Top contributors to the Fund’s absolute performance during the fiscal year included Apple and Walt Disney. Top detractors during the period included Bank of America and International Game Technology.

Apple continued to introduce new innovative products during the reporting period, unveiling a new version of the iPhone and introducing the iPad. The new iPhone 4 includes a video conferencing feature called FaceTime and improved resolution for text and graphics. The iPad was designed to compete with existing net books and may help Apple expand its market share.

Bank of America is one of the world’s largest diversified financial institutions with services including consumer banking, small business banking, credit card services and investment management. The company has expressed intentions to sell a number of non-core assets as part of its strategy to focus on its core business and strengthen its capital ratios.

The Fund continues to offer exposure to five dynamic sectors we believe offer the best growth potential, yet with relatively low correlation to each other. Additionally, the Fund’s structure provides potentially lower volatility than a single sector given our annual rebalancing and correlation considerations.

As always, we thank you for your continued investment in Invesco Multi- Sector Fund.

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

See important Fund and index disclosures later in this report.

Juan Hartsfield

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Multi-Sector Fund with respect to the Fund’s investments in the leisure sector. He joined Invesco in 2004. Mr. Hartsfield earned a B.S. in petroleum engineering from The University of Texas at Austin and an M.B.A. from the University of Michigan.

Andrew Lees

Portfolio manager, is lead manager of Invesco Multi-Sector Fund with respect to the Fund’s investments in the energy sector. He joined Invesco in 2005. Mr. Lees earned a B.A. in economics from the University of Western Ontario and an M.B.A. with concentrations in finance and accounting from McGill University.

Derek Taner

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Multi-Sector Fund with respect to the Fund’s investments in the health care sector. He joined Invesco in 2005. Mr. Taner earned a B.S. in business administration with an emphasis in accounting and finance and an M.B.A. from the Haas School of Business at the University of California (Berkeley).

Warren Tennant

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Multi-Sector Fund with respect to the Fund’s investments in the information technology sector. He joined Invesco in 2000. Mr. Tennant earned both a B.B.A. in finance and an M.B.A. from The University of Texas at Austin.

Meggan Walsh

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Multi-Sector Fund with respect to the Fund’s investments in the financials sector. Ms. Walsh began her investment career in 1987 and joined Invesco in 1991. She earned a B.S. in finance from the University of Maryland and an M.B.A. from Loyola University Maryland.

Invesco Multi-Sector Fund



Average Annual Total Returns
As of 8/31/10, including maximum applicable sales charges

Class A Shares

Inception (9/3/02)	4.43	%

5 Years	-3.76

1 Year	-6.61


Class B Shares

Inception (9/3/02)	4.41	%

5 Years	-3.72

1 Year	-6.76


Class C Shares

Inception (9/3/02)	4.40	%

5 Years	-3.38

1 Year	-2.84


Class Y Shares

Inception	5.23	%

5 Years	-2.56

1 Year	-0.91


Institutional Class Shares

Inception (5/3/04)	1.84	%

5 Years	-2.17

1 Year	-0.61

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

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may



Average Annual Total Returns
As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.

Class A Shares

Inception (9/3/02)	4.53	%

5 Years	-2.59

1 Year	4.73


Class B Shares

Inception (9/3/02)	4.52	%

5 Years	-2.55

1 Year	4.94


Class C Shares

Inception (9/3/02)	4.52	%

5 Years	-2.21

1 Year	8.95


Class Y Shares

Inception	5.34	%

5 Years	-1.39

1 Year	11.08


Institutional Class Shares

Inception (5/3/04)	1.87	%

5 Years	-0.99

1 Year	11.38

be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Institutional Class shares was 1.40%, 2.15%, 2.15%, 1.15% and 0.82%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y and Institutional Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

continued from page 8

The Lipper Multi-Cap Core Funds Index is an unmanaged index considered representative of multi-cap core funds tracked by Lipper.

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

Other information

		assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

n		Industry 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.

Invesco Multi-Sector Fund

Invesco Multi-Sector Fund’s investment objective is capital growth.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

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

Principal risks of investing in the Fund

n		The businesses in which the Fund invests may be adversely affected by foreign, federal or state regulations governing energy production, distribution and sale.

n		Prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

n		The financial services sector is subject to extensive government regulation, which may change frequently. In addition, the profitability of businesses in the financial services sector depends on the availability and cost of money and may fluctuate significantly in response to changes in government regulation, interest rates and general economic conditions. Businesses in the financial sector often operate with substantial financial leverage.

n		The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to

		less regulation resulting in less publicly available information about the companies.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

n		The Fund’s performance is vulnerable to factors affecting the health care industry, including government regulation, obsolescence caused by scientific advances and technological innovations.

n		The Fund invests in different, independently managed sectors. Accordingly, poor performance of an investment in one sector may have a significant effect on the Fund’s net asset value. Additionally, active rebalancing of the Fund’s investments among the sectors may result in increased transaction costs. Independent management of sectors may also result in adverse tax consequences when one or more of the Fund’s portfolio managers effect transactions in the same security at or about the same time.

n		The leisure sector depends on consumer discretionary spending, which generally falls during economic downturns. Securities of gambling casinos are often subject to high price volatility and are considered speculative. Securities of companies that make video and electronic games may be affected by the games’ risk of rapid obsolescence.

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

Stocks fall into three broad market capitalization categories — large, medium, and small. Investing primarily in one category carries the risk that, due to current market conditions, that category may be out of favor with

		investors. Small and mid-sized companies may tend to be more vulnerable to adverse developments and more volatile than larger companies. Investments in small and mid-sized companies may involve special risks, including those associated with dependence on a small management group, little or no operating history, little or no track record of success, and limited product lines, market and financial resources. Also, there may be less publicly available information about the issuers of the securities or less market interest in such securities than in the case of larger companies, each of which can cause significant price volatility. The securities of small and mid-sized companies may be illiquid, restricted as to resale, or may trade less frequently and in smaller volume than more widely held securities, which may make it difficult for a fund to establish or close out a position in these securities at prevailing market prices.

n		Certain of the Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile.

n		Many products and services offered in technology-related industries are subject to rapid obsolescence, which may lower the value of the issuers in this sector.

n		Start-up companies or earlier stage companies, such as venture capital companies, generally have limited operating histories, no present market for their technologies or products, and no history of earnings or financial services. These companies may rely entirely or in large part on private investments to finance their operations.

About indexes used in this report

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

continued on page 7

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		IAMSX
Class B Shares		IBMSX
Class C Shares		ICMSX
Class Y Shares		IAMYX
Institutional Shares		IIMSX

Invesco Multi-Sector Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks & Other Equity Interests–96.97%
Advertising–1.19%
Omnicom Group Inc.		94,008	$	3,291,220

Apparel Retail–1.78%
American Eagle Outfitters, Inc.		175,568		2,219,179

TJX Cos., Inc. (The)		68,049		2,700,865

				4,920,044

Apparel, Accessories & Luxury Goods–0.50%
Polo Ralph Lauren Corp.		18,210		1,379,225

Application Software–1.35%
Quest Software, Inc.^(b)		85,027		1,822,129

TIBCO Software Inc.^(b)		131,748		1,909,028

				3,731,157

Asset Management & Custody Banks–1.94%
Federated Investors, Inc.–Class B^(c)		117,872		2,457,631

State Street Corp.		82,800		2,904,624

				5,362,255

Biotechnology–6.98%
Amgen Inc.^(b)		61,428		3,135,285

BioMarin Pharmaceutical Inc.^(b)		129,444		2,626,419

Celgene Corp.^(b)		58,270		3,002,070

Genzyme Corp.^(b)		61,479		4,310,293

Gilead Sciences, Inc.^(b)		103,675		3,303,086

United Therapeutics Corp.^(b)		63,960		2,956,231

				19,333,384

Brewers–1.04%
Heineken N.V. (Netherlands)^(c)		64,302		2,873,514

Broadcasting–1.58%
Discovery Communications, Inc.–Class A^(b)		38,855		1,466,776

Scripps Networks Interactive Inc.–Class A		72,783		2,924,421

				4,391,197

Casinos & Gaming–1.85%
International Game Technology		178,193		2,601,618

Penn National Gaming, Inc.^(b)		89,413		2,519,658

				5,121,276

Communications Equipment–1.73%
Ciena Corp.^(b)		91,646		1,142,826

Cisco Systems, Inc.^(b)		146,146		2,930,227

QUALCOMM, Inc.^(b)		19,049		729,767

				4,802,820

Computer Hardware–3.64%
Apple Inc.^(b)		41,421		10,080,629

Computer Storage & Peripherals–1.36%
EMC Corp.^(b)		207,274		3,780,678

Consumer Finance–2.38%
American Express Co.		74,765		2,980,881

Capital One Financial Corp.		95,305		3,608,247

				6,589,128

Data Processing & Outsourced Services–1.79%
Alliance Data Systems Corp.^(b)(c)		64,739		3,637,684

MasterCard, Inc.–Class A		6,641		1,317,309

				4,954,993

Department Stores–1.38%
Kohl’s Corp.^(b)		57,814		2,716,102

Nordstrom, Inc.		38,656		1,117,931

				3,834,033

Diversified Capital Markets–1.12%
UBS AG (Switzerland)^(b)		184,950		3,112,709

Drug Retail–0.99%
CVS Caremark Corp.		101,979		2,753,433

Electronic Components–0.37%
Corning Inc.		65,853		1,032,575

Electronic Manufacturing Services–0.71%
Flextronics International Ltd. (Singapore)^(b)		396,714		1,955,800

General Merchandise Stores–1.32%
Target Corp.		71,691		3,667,712

Health Care Facilities–0.78%
Rhoen-Klinikum AG (Germany)		98,459		2,152,595

Health Care Services–3.60%
DaVita, Inc.^(b)		101,081		6,531,854

Express Scripts, Inc.^(b)		80,750		3,439,950

				9,971,804

Home Entertainment Software–0.41%
Nintendo Co., Ltd. (Japan)		4,100		1,137,745

Hotels, Resorts & Cruise Lines–1.64%
Marriott International Inc.–Class A		141,596		4,532,488

Insurance Brokers–1.05%
Marsh & McLennan Cos., Inc.		123,117		2,920,335

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

9 Invesco Multi-Sector Fund


	Shares		Value

Integrated Oil & Gas–6.29%
Chevron Corp.		29,364	$	2,177,634

ConocoPhillips		30,813		1,615,526

Exxon Mobil Corp.		73,640		4,356,542

Occidental Petroleum Corp.		64,358		4,703,283

Royal Dutch Shell PLC–Class A (United Kingdom)		62,988		1,670,331

Total S.A.–ADR (France)		62,379		2,909,980

				17,433,296

Internet Software & Services–2.31%
Google Inc.–Class A^(b)		11,486		5,168,930

GSI Commerce, Inc.^(b)		54,221		1,234,612

				6,403,542

Investment Banking & Brokerage–1.54%
Charles Schwab Corp. (The)		129,106		1,647,393

Morgan Stanley		106,492		2,629,287

				4,276,680

Life & Health Insurance–0.50%
StanCorp Financial Group, Inc.		39,083		1,392,527

Life Sciences Tools & Services–4.06%
Life Technologies Corp.^(b)		70,678		3,022,898

Pharmaceutical Product Development, Inc.		151,435		3,478,462

Thermo Fisher Scientific, Inc.^(b)		112,423		4,735,257

				11,236,617

Managed Health Care–1.20%
UnitedHealth Group Inc.		104,878		3,326,730

Movies & Entertainment–3.08%
Time Warner Inc.		97,379		2,919,422

Walt Disney Co. (The)		171,874		5,601,374

				8,520,796

Oil & Gas Drilling–0.68%
Ensco PLC–ADR (United Kingdom)		45,720		1,880,464

Oil & Gas Equipment & Services–6.26%
Cameron International Corp.^(b)		84,698		3,115,193

FMC Technologies, Inc.^(b)		32,553		2,013,403

Halliburton Co.		143,629		4,051,774

National Oilwell Varco Inc.		43,944		1,651,855

Oceaneering International, Inc.^(b)		46,536		2,327,265

Schlumberger Ltd.		48,182		2,569,546

Weatherford International Ltd.^(b)		108,530		1,618,182

				17,347,218

Oil & Gas Exploration & Production–6.04%
Anadarko Petroleum Corp.		37,626		1,730,420

Apache Corp.		45,548		4,092,488

Cabot Oil & Gas Corp.		72,733		2,024,887

EOG Resources, Inc.		39,605		3,440,486

Southwestern Energy Co.^(b)		101,982		3,336,851

Ultra Petroleum Corp.^(b)		54,457		2,124,367

				16,749,499

Other Diversified Financial Services–2.97%
Bank of America Corp.		277,058		3,449,372

Citigroup Inc.^(b)		775,216		2,883,804

JPMorgan Chase & Co.		52,279		1,900,864

				8,234,040

Pharmaceuticals–2.60%
Novartis AG–ADR (Switzerland)		60,386		3,169,661

Roche Holding AG (Switzerland)		29,718		4,041,273

				7,210,934

Property & Casualty Insurance–0.79%
XL Group PLC (Ireland)		121,982		2,184,698

Regional Banks–2.87%
Fifth Third Bancorp		232,848		2,572,971

SunTrust Banks, Inc.		117,939		2,652,448

Zions Bancorp.		148,245		2,732,155

				7,957,574

Restaurants–2.67%
Darden Restaurants, Inc.		96,987		4,001,684

McDonald’s Corp.		46,541		3,400,285

				7,401,969

Semiconductor Equipment–0.61%
ASML Holding N.V.–New York Shares (Netherlands)		68,027		1,682,308

Semiconductors–2.01%
Avago Technologies Ltd. (Singapore)^(b)		110,035		2,217,205

Intel Corp.		188,536		3,340,858

				5,558,063

Soft Drinks–1.02%
PepsiCo, Inc.		43,876		2,815,962

Specialized Consumer Services–0.51%
H&R Block, Inc.		109,682		1,409,414

Specialized Finance–0.58%
Moody’s Corp.		76,659		1,620,571

Specialty Stores–0.80%
Staples, Inc.		124,702		2,215,955

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

10 Invesco Multi-Sector Fund

Statement of Changes in Net Assets

For the years ended August 31, 2010 and 2009


	2010			2009

Operations:
Net investment income (loss)	$	(1,136,152	)	$	1,637,312

Net realized gain (loss)		(1,505,582	)		(156,971,276	)

Change in net unrealized appreciation (depreciation)		6,163,317			(33,997,495	)

Net increase (decrease) in net assets resulting from operations		3,521,583			(189,331,459	)

Distributions to shareholders from net investment income:
Class A		(717,578	)		(721,996	)

Class Y		(6,863	)		(1,333	)

Institutional Class		(738,087	)		(682,511	)

Total distributions from net investment income		(1,462,528	)		(1,405,840	)

Distributions to shareholders from net realized gains:
Class A		—			(10,704,183	)

Class B		—			(1,933,014	)

Class C		—			(2,101,270	)

Class Y		—			(17,388	)

Institutional Class		—			(4,031,180	)

Total distributions from net realized gains		—			(18,787,035	)

Share transactions–net:
Class A		(71,403,839	)		(76,767,968	)

Class B		(12,151,899	)		(11,082,703	)

Class C		(9,504,240	)		(13,265,760	)

Class Y		(246,895	)		1,005,711

Institutional Class		(14,882,232	)		(31,483,048	)

Net increase (decrease) in net assets resulting from share transactions		(108,189,105	)		(131,593,768	)

Net increase (decrease) in net assets		(106,130,050	)		(341,118,102	)

Net assets:
Beginning of year		383,206,070			724,324,172

End of year (includes undistributed net investment income (loss) of $(89,332) and $1,406,338, respectively)	$	277,076,020		$	383,206,070

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

The Fund’s investment objective is capital growth.

The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

14 Invesco Multi-Sector Fund


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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

15 Invesco Multi-Sector Fund


		evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
		The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.		Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into 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. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of 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

16 Invesco Multi-Sector Fund


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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $250 million		0	.695%

Next $250 million		0	.67%

Next $500 million		0	.645%

Next $1.5 billion		0	.62%

Next $2.5 billion		0	.595%

Next $2.5 billion		0	.57%

Next $2.5 billion		0	.545%

Over $10 billion		0	.52%

The Adviser has contractually agreed, through at least December 31, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class Y and Institutional Class shares to 2.00%, 2.75%, 2.75%, 1.75% and 1.75% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on December 31, 2011. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

For the year ended August 31, 2010, the Adviser waived advisory fees of $7,941.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended August 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the year ended August 31, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

17 Invesco Multi-Sector Fund

to the shareholder. During the year ended August 31, 2010, IDI advised the Fund that IDI retained $20,932 in front-end sales commissions from the sale of Class A shares and $0, $65,621 and $2,771 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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.


	Level 1		Level 2		Level 3		Total

Equity Securities	$	276,221,621	$	7,834,185	$	—	$	284,055,806

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the year ended August 31, 2010, the Fund engaged in securities sales of $1,038,886, which resulted in net realized gains of $105,671.

NOTE 5—Expense Offset Arrangement(s)

NOTE 6—Trustees’ and Officers’ Fees and Benefits

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

18 Invesco Multi-Sector Fund

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

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	1,462,528	$	1,409,975

Long-term capital gain		—		18,782,900

Total distributions	$	1,462,528	$	20,192,875

Tax Components of Net Assets at Period-End:


	2010

Net unrealized appreciation (depreciation) — investments	$	(25,258,377	)

Net unrealized appreciation — other investments		2,072

Temporary book/tax differences		(53,164	)

Post-October deferrals		(4,535,586	)

Capital loss carryforward		(156,608,350	)

Shares of beneficial interest		463,529,425

Total net assets	$	277,076,020

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	55,800,354

August 31, 2018		100,807,996

Total capital loss carryforward	$	156,608,350


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

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $107,462,449 and $219,481,118, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	35,029,512

Aggregate unrealized (depreciation) of investment securities		(60,287,889	)

Net unrealized appreciation (depreciation) of investment securities	$	(25,258,377	)

Cost of investments for tax purposes is $309,314,183.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of net operating losses, on August 31, 2010, undistributed net investment income (loss) was increased by $1,103,010, undistributed net realized gain (loss) was increased by $28,763 and shares of beneficial interest decreased by $1,131,773. This reclassification had no effect on the net assets of the Fund.

19 Invesco Multi-Sector Fund

NOTE 11—Share Information


	Summary of Share Activity

	Years ended August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Sold:
Class A		634,444		$	12,661,909			2,430,932		$	42,223,567

Class B		92,129			1,751,944			338,897			5,569,903

Class C		189,000			3,601,521			422,586			6,640,016

Class Y^(b)		8,115			161,510			71,812			1,243,553

Institutional Class		368,416			7,306,153			263,613			4,423,162

Issued as reinvestment of dividends:
Class A		34,676			679,647			716,046			10,626,125

Class B		—			—			122,794			1,744,905

Class C		—			—			138,864			1,971,869

Class Y		300			5,889			1,261			18,721

Institutional Class		37,053			738,087			312,372			4,713,691

Automatic conversion of Class B shares to Class A shares:
Class A		174,700			3,488,388			258,699			4,216,415

Class B		(183,711	)		(3,488,388	)		(270,776	)		(4,216,415	)

Reacquired:
Class A^(b)		(4,438,894	)		(88,233,783	)		(8,230,046	)		(133,834,075	)

Class B		(552,338	)		(10,415,455	)		(922,382	)		(14,181,096	)

Class C		(694,887	)		(13,105,761	)		(1,400,392	)		(21,877,645	)

Class Y		(20,694	)		(414,294	)		(15,803	)		(256,563	)

Institutional Class		(1,131,728	)		(22,926,472	)		(2,332,008	)		(40,619,901	)

Net increase (decrease) in share activity		(5,483,419	)	$	(108,189,105	)		(8,093,531	)	$	(131,593,768	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 32% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
		In addition, 22% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco Aim.
^(b)		Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A into Class Y shares of the Fund:


Class	Shares			Amount

Class Y		23,026		$	475,716

Class A		(23,026	)		(475,716	)

20 Invesco Multi-Sector Fund

NOTE 12—Financial Highlights

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


																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset		Net			(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		investment			securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)^(a)			unrealized)			operations			income			gains			Distributions			of period		Return^(b)			(000s omitted)		absorbed			absorbed			net assets			turnover^(c)

Class A
Year ended 08/31/10	$	18.68	$	(0.05	)	$	(0.16	)	$	(0.21	)	$	(0.07	)	$	—		$	(0.07	)	$	18.40		(1.16	)%	$	149,389		1.32	%^(d)		1.32	%^(d)		(0.28	)%^(d)		32	%
Year ended 08/31/09		25.33		0.07			(5.93	)		(5.86	)		(0.05	)		(0.74	)		(0.79	)		18.68		(22.34	)		218,772		1.39			1.40			0.43			31
Year ended 08/31/08		28.93		0.07			(2.34	)		(2.27	)		—			(1.33	)		(1.33	)		25.33		(8.22	)		418,874		1.21			1.22			0.24			58
Year ended 08/31/07		25.53		(0.04	)		3.88			3.84			(0.12	)		(0.32	)		(0.44	)		28.93		15.13			508,895		1.23			1.29			(0.15	)		44
Year ended 08/31/06		24.16		0.17			1.69			1.86			—			(0.49	)		(0.49	)		25.53		7.74			311,492		1.30			1.37			0.67			66

Class B
Year ended 08/31/10		17.78		(0.19	)		(0.14	)		(0.33	)		—			—			—			17.45		(1.86	)		25,274		2.07	^(d)		2.07	^(d)		(1.03	)^(d)		32
Year ended 08/31/09		24.27		(0.05	)		(5.70	)		(5.75	)		—			(0.74	)		(0.74	)		17.78		(22.93	)		37,206		2.14			2.15			(0.32	)		31
Year ended 08/31/08		27.97		(0.13	)		(2.24	)		(2.37	)		—			(1.33	)		(1.33	)		24.27		(8.89	)		68,526		1.96			1.97			(0.51	)		58
Year ended 08/31/07		24.79		(0.24	)		3.76			3.52			(0.02	)		(0.32	)		(0.34	)		27.97		14.26			87,469		1.98			2.04			(0.90	)		44
Year ended 08/31/06		23.64		(0.02	)		1.66			1.64			—			(0.49	)		(0.49	)		24.79		6.97			73,997		2.05			2.12			(0.08	)		66

Class C
Year ended 08/31/10		17.77		(0.19	)		(0.14	)		(0.33	)		—			—			—			17.44		(1.86	)		34,377		2.07	^(d)		2.07	^(d)		(1.03	)^(d)		32
Year ended 08/31/09		24.26		(0.05	)		(5.70	)		(5.75	)		—			(0.74	)		(0.74	)		17.77		(22.94	)		44,023		2.14			2.15			(0.32	)		31
Year ended 08/31/08		27.96		(0.13	)		(2.24	)		(2.37	)		—			(1.33	)		(1.33	)		24.26		(8.89	)		80,439		1.96			1.97			(0.51	)		58
Year ended 08/31/07		24.78		(0.24	)		3.76			3.52			(0.02	)		(0.32	)		(0.34	)		27.96		14.27			94,760		1.98			2.04			(0.90	)		44
Year ended 08/31/06		23.63		(0.02	)		1.66			1.64			—			(0.49	)		(0.49	)		24.78		6.97			69,604		2.05			2.12			(0.08	)		66

Class Y
Year ended 08/31/10		18.72		(0.01	)		(0.15	)		(0.16	)		(0.12	)		—			(0.12	)		18.44		(0.91	)		830		1.07	^(d)		1.07	^(d)		(0.03	)^(d)		32
Year ended 08/31/09^(e)		20.66		0.10			(1.24	)		(1.14	)		(0.06	)		(0.74	)		(0.80	)		18.72		(4.54	)		1,072		1.17	^(f)		1.18	^(f)		0.65	^(f)		31

Institutional Class
Year ended 08/31/10		19.07		0.05			(0.15	)		(0.10	)		(0.20	)		—			(0.20	)		18.77		(0.61	)		67,207		0.79	^(d)		0.79	^(d)		0.25	^(d)		32
Year ended 08/31/09		25.81		0.17			(6.05	)		(5.88	)		(0.12	)		(0.74	)		(0.86	)		19.07		(21.89	)		82,134		0.81			0.82			1.01			31
Year ended 08/31/08		29.35		0.19			(2.37	)		(2.18	)		(0.03	)		(1.33	)		(1.36	)		25.81		(7.81	)		156,486		0.75			0.76			0.70			58
Year ended 08/31/07		25.83		0.09			3.93			4.02			(0.18	)		(0.32	)		(0.50	)		29.35		15.67			163,891		0.77			0.83			0.31			44
Year ended 08/31/06		24.33		0.29			1.70			1.99			—			(0.49	)		(0.49	)		25.83		8.23			87,147		0.83			0.90			1.14			66


^(a)		Calculated using average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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)		Ratios are based on average daily net assets (000’s omitted) of $194,912, $32,935, $42,525, $1,050 and $77,992 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively.
^(e)		Commencement date of October 3, 2008.
^(f)		Annualized.

21 Invesco Multi-Sector Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Multi-Sector Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Multi-Sector Fund (formerly know as AIM Multi-Sector Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

22 Invesco Multi-Sector Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	924.60	$	6.45	$	1,018.50	$	6.77		1.33	%

B		1,000.00		921.30		10.07		1,014.72		10.56		2.08

C		1,000.00		921.30		10.07		1,014.72		10.56		2.08

Y		1,000.00		926.20		5.24		1,019.76		5.50		1.08

Institutional		1,000.00		927.40		3.79		1,021.27		3.97		0.78


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

23 Invesco Multi-Sector Fund


	Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Multi-Sector Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

Factors and Conclusions and Summary of Independent Written Fee Evaluation


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

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

The Board reviewed the services provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund.

24 Invesco Multi-Sector Fund


B.	Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Multi-Cap Core Funds Index. The Board noted that the performance of Class A shares of the Fund was in the third quintile of its performance universe for the one and five year periods and the fourth quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. Invesco Advisers advised the Board that the Fund’s prospectus limits the Fund to investment in five sectors, two of which have been the worst performing sectors since the onset of the bear market in 2007. Invesco Advisers noted that some of the underlying lead sector managers were changed in 2009 and that it continues to monitor the Fund Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was below the effective fee rate for one of the mutual funds and that the other fund was a fund of funds for which Invesco Advisers does not charge a separate advisory fee.

Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least December 31, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.


D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

25 Invesco Multi-Sector Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website,

invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.



		I-MSE-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco



2		Invesco Select Real Estate Income Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees



3		Invesco Select Real Estate Income Fund

Management’s Discussion of Fund Performance

Performance summary

In general, equity markets produced positive results, and the economy showed signs of improvement during the fiscal year ended August 31, 2010. The U.S. real estate investment trust (REIT) market benefited from improvements in credit markets and increased access to capital through debt refinancing and secondary equity offerings. As a result, the Fund outperformed the broad market, as measured by the S&P 500 Index, by a wide margin. However, the Fund underperformed the Custom Select Real Estate Income Index, its style-specific benchmark, due primarily to the Fund’s allocation among fixed income and fixed income-like securities Your Fund’s long-term performance appears later in this report.

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

Fund vs. Indexes


Class A Shares	21.85	%

Class B Shares	21.02

Class C Shares	21.02

Class Y Shares	22.21

Institutional Class Shares	22.46

S&P 500 Index^▼ (Broad Market Index)	4.93

Custom Select Real Estate Income Index^■ (Style-Specific Index)	33.48

Lipper Real Estate Funds Index^▼ (Peer Group Index)	27.83


^▼		Lipper Inc.; ^■ Invesco Aim, Lipper Inc., Bloomberg LP

How we invest

Your Fund holds primarily real estate-oriented securities. We focus on public companies whose value is driven by tangible assets. Our goal is to create a fund that will provide attractive current income. We use a fundamentals-driven investment process, including property market cycle analysis, property evaluation and management and structure review to identify securities with:

n		Attractive relative dividend yields.

n		Favorable property market outlook.

n		Reasonable valuations relative to peer investment alternatives.

We attempt to manage risk by allocating between property related common stocks and fixed income securities as well as

diversifying by property types and geographic location and also limiting the size of any one holding.

We will consider selling a holding when:

n		Relative yields and/or valuation falls below desired levels.

n		Risk/return relationships change significantly.

n		Company fundamentals change (property type, geography or management changes).

n		A more attractive investment opportunity is identified.

Market conditions and your Fund

The U.S. economy provided signs of improvement during the Fund’s fiscal year, potentially indicating that the

economy had transitioned from a contraction phase into an expansionary phase. Nevertheless, the pace of recovery remained modest and the transition from government stimulus-induced growth to private economic recovery was uncertain.

The U.S. Federal Reserve’s (the Fed) federal funds target rate remained low — ranging from zero to 0.25%.¹ Real gross domestic product (GDP) registered positive growth during the reporting period with quarterly annualized increases of 5.0%, 3.7% and 1.7% for the fourth quarter of 2009, first and second quarter 2010, respectively.² Inflation, as measured by the seasonally adjusted Consumer Price Index (CPI), remained relatively benign. While labor markets improved as layoffs moderated, new hiring remained quite weak.³ Unemployment, after climbing steadily throughout 2009, fell slightly during the first half of 2010 to a rate of 9.6% nationwide as of August 2010.³

Given this environment, the U.S. REIT market, as measured by the FTSE NAREIT Equity REITs Index, produced a gain for the period and outperformed the broad market, as measured by the S&P 500 Index, by a wide margin. The Fund underperformed its style-specific benchmark, the Custom Select Real Estate Income Index, as a result of underweight exposure in REIT preferred stock and an overweight exposure in commercial mortgage backed securities (CMBS).

On an absolute basis, each property REIT sector contributed positively to the Fund’s fiscal year performance. The Fund’s holdings in health care REITs, regional mall REITs and apartment REITs, in particular, enhanced performance during the period.

Portfolio Composition

By property type


Health Care	16.1	%

Office	12.0

Regional Malls	10.0

Diversified	9.5

Industrial/Office: Mixed	8.9

Apartments	8.0

Asset-Backed Securities	7.3

Freestanding	5.5

Specialty Properties	4.4

Lodging-Resorts	4.1

Industrial	3.4

Self Storage Facilities	3.2

Shopping Centers	3.2

Bonds & Notes	2.4

Money Market Funds Plus

Other Assets Less Liabilities	2.0

Top 10 Equity Holdings*


1.	Simon Property Group, Inc.	7.5	%

2.	Senior Housing Properties Trust	4.5

3.	Essex Property Trust, Inc.	4.3

4.	Liberty Property Trust	4.2

5.	Health Care REIT, Inc.	3.8

6.	National Retail Properties, Inc.	3.2

7.	Mack-Cali Realty Corp.	2.9

8.	Washington REIT	2.6

9.	Hospitality Properties Trust	2.2

10.	Ventas, Inc.	2.1


Total Net Assets	$225.7 million

Total Number of Holdings*		99

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

*Excluding money market fund holdings.



4		Invesco Select Real Estate Income Fund

Top contributors during the fiscal year included Simon Property Group and Vornado Realty Trust. Recent equity offerings and debt refinancing by Simon Property Group, a REIT which offered an attractive portfolio of top-tier U.S. regional malls, covered near-term debt maturities and provided necessary capital for future acquisition opportunities. Similarly, Vornado’s recent equity offering provided liquidity for new acquisitions. Moreover, the company benefited from improving rental fundamentals in Manhattan and Washington D.C., the firm’s largest markets.

Hospitality Properties Trust and CBL & Associates Properties, however, were top detractors from Fund performance during the fiscal year. Hospitality Properties Trust (HPT) was not a Fund holding for most of the period due to a less favorable growth profile relative to other opportunities in the hotel sector. HPT had a less favorable growth profile due to lower operating leverage from its owned hotels and its rent exposure to less favorable travel centers. CBL & Associates, on the other hand, is among the largest U.S. regional mall REITs with properties from coast to coast. Both positions have provided above-average divided yields.

Because volatility in the market continued at elevated levels, we remained active in portfolio positioning given changes in relative value between stocks. Across sectors, we added to certain positions whose valuations began to reflect a bottoming in operating fundamentals. In addition, we reduced exposure to several relatively low risk stocks whose valuations appeared relatively high.

We remained committed to owning quality real estate companies that we believe may benefit from relatively better sector trends. We continued to manage risk by holding a portfolio diversified by property type and geographic location. Lower leveraged companies with above average levels of dividend coverage remained favored in the portfolio.

We thank you for your continued investment in Invesco Select Real Estate Income Fund and encourage everyone to follow a disciplined asset allocation strategy and rebalance regularly.

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

See important Fund and index disclosures later in this report.

Joe Rodriguez, Jr.

Portfolio manager, is lead manager of Invesco Select Real Estate Income Fund. He is head of real estate securities for Invesco Real Estate, where he oversees all phases of the unit, including securities research and administration. Mr. Rodriguez began his investment career in 1983 and joined Invesco in 1990. He earned a B.B.A. in economics and finance as well as an M.B.A. in finance from Baylor University.

Mark Blackburn

Chartered Financial Analyst, portfolio manager, is manager of Invesco Select Real Estate Income Fund. He earned a B.S. in accounting from Louisiana State University and an M.B.A. from Southern Methodist University. Mr. Blackburn is a Certified Public Accountant.

Paul Curbo

Chartered Financial Analyst, portfolio manager, is manager of Invesco Select Real Estate Income Fund. He joined Invesco in 1998. Mr. Curbo earned a B.B.A. in finance from the University of Texas at Dallas.

James Trowbridge

Portfolio manager, is manager of Invesco Select Real Estate Income Fund. He joined Invesco in 1989. Mr. Trowbridge earned his B.A. in finance from Indiana University.

Darin Turner

Portfolio manager, is manager of Invesco Select Real Estate Income Fund. He joined Invesco in 2005. Mr. Turner earned a B.B.A. in finance from Baylor University, an M.S. in real estate from the University of Texas at Arlington and an M.B.A. specializing in investments from Southern Methodist University.

Assisted by the Real Estate Team



5		Invesco Select Real Estate Income Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable
sales charges


Class A Shares

Inception (5/31/02)	8.86	%

5 Years	1.72

1 Year	15.08


Class B Shares

Inception	8.56	%

5 Years	1.84

1 Year	16.02


Class C Shares

Inception	8.56	%

5 Years	1.98

1 Year	20.02


Class Y Shares

Inception	9.62	%

5 Years	2.91

1 Year	22.21


Institutional Class Shares
Inception	9.78	%

5 Years	3.17

1 Year	22.46

On March 12, 2007, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown prior to that date is that of the Closed-End Fund’s Common shares and includes the fees applicable to Common shares. The Closed-End Fund’s Common shares performance reflects any applicable fee waivers or expense reimbursements.

Class B shares incepted on March 9, 2007. Performance shown prior to that date is that of Class A shares, restated to reflect the higher 12b-1 fees applicable to Class B shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

Class C shares incepted on March 9, 2007. Performance shown prior to that date is that of Class A shares, restated to reflect the higher 12b-1 fees applicable to Class C shares. Class A shares performance reflects any applicable fee

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (5/31/02)	8.16	%

5 Years	0.61

1 Year	29.02


Class B Shares

Inception	7.87	%

5 Years	0.72

1 Year	30.55


Class C Shares

Inception	7.87	%

5 Years	0.86

1 Year	34.55


Class Y Shares

Inception	8.93	%

5 Years	1.79

1 Year	36.94


Institutional Class Shares
Inception	9.09	%

5 Years	2.05

1 Year	37.19

waivers or expense reimbursements.

Institutional Class shares incepted on March 9, 2007. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

distributions (reinvested at net asset value, except for periods prior to March 12, 2007 where reinvestments were made at the lower of the Closed-End Fund’s net asset value or market price), changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Institutional Class shares was 1.75, 2.50%, 2.50%, 1.50% and 1.13%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses. Class Y and Institutional class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

Fund performance was positively impacted by a temporary 2% fee on redemptions that was in effect from March 12, 2007 to March 12, 2008. Without income from this temporary fee, returns would have been lower.

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

continued from page 8

		a rigorous and comprehensive study program in the field of investment management and research analysis.
n		The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require

adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.



7		Invesco Select Real Estate Income Fund

Invesco Select Real Estate Income Fund’s investment objectives are high current income and, secondarily, capital appreciation.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		On March 12, 2007, Invesco Select Real Estate Income Fund was reorganized from a Closed-End Fund to an Open-End Fund. Information presented for Class A shares prior to the reorganization included financial data for the Closed-End Fund’s Common Shares.

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

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

Principal risks of investing in the
Fund

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

n		Prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

n		The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

n		Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

n		The Fund may invest a large percentage of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.

n		The Fund may hold illiquid securities that it is unable to sell at the preferred time or price and could lose its entire investment in such securities.

n		The Fund’s investments in fixed income securities rated lower than investment grade, or if unrated, of comparable quality as determined by the adviser (commonly know as junk bonds) pose significant risks. The prices of junk bonds are likely to be more sensitive to adverse economic changes or individual corporate developments than higher rated securities and involve a greater risk of default. The secondary market for junk bonds may be less liquid than the market for higher quality securities.

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

n		The Fund may invest in mortgage- and asset-backed securities that are subject to prepayment or call risk, which is the risk that the borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a result, the fund may reinvest these early payments at lower interest rates, thereby reducing the Fund’s income. Conversely, when interest rates rise, prepayments may happen more slowly, causing the security to lengthen in duration. Longer duration securities tend to be more volatile. Securities may be prepaid at a price less than the original purchase value.

n		The Fund is non-diversified and can invest a greater portion of its assets in a single issuer. A change in the value of the issuer could affect the value of the Fund more than if it was a diversified fund.


n		Because the Fund concentrates its assets in the real estate industry, an investment in the Fund will be closely linked to the performance of the real estate markets.

n		Short sales may cause the Fund to repurchase a security at a higher price, thereby causing a loss. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

About indexes used in this report

n		The S&P 500^{^®} Index is an unmanaged index considered representative of the U.S. stock market.

n		The Custom Select Real Estate Income Index, created by Invesco to serve as a benchmark for Invesco Select Real Estate Income Fund, is composed of the following indexes: FTSE NAREIT Equity REIT (50%) and Wachovia Hybrid and Preferred Securities REIT (50%).

n		The Lipper Real Estate Funds Index is an unmanaged index considered representative of real estate funds tracked by Lipper.

n		The FTSE NAREIT Equity REITs Index is an unmanaged index considered representative of U.S. REITs.

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

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

Other information

The Chartered Financial Analyst^® (CFA^®) designation is globally recognized and attests to a charterholder’s success in

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

continued on page 7

Fund Nasdaq Symbols


Class A Shares		ASRAX
Class B Shares		SARBX
Class C Shares		ASRCX
Class Y Shares		ASRYX
Institutional Class Shares		ASRIX



8		Invesco Select Real Estate Income Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Real Estate Investment Trusts, Common Stocks & Other Equity Interests–61.62%
Apartments–7.74%
Camden Property Trust		91,650	$	4,193,904

Essex Property Trust, Inc.		91,900		9,720,263

Mid-America Apartment Communities, Inc.		63,000		3,557,610

				17,471,777

Diversified–5.40%
Cohen & Steers Quality Income Realty Fund, Inc.		201,773		1,396,269

Colonial Properties Trust		87,834		1,393,047

Neuberger Berman Real Estate Securities Income Fund Inc.		16,275		57,451

Vornado Realty Trust		41,388		3,354,912

Washington Real Estate Investment Trust		194,891		5,971,460

				12,173,139

Freestanding–4.47%
Getty Realty Corp.		80,900		2,008,747

National Retail Properties Inc.		291,500		7,100,940

Realty Income Corp.		29,600		964,664

				10,074,351

Healthcare–14.42%
Health Care REIT, Inc.		188,073		8,640,074

LTC Properties, Inc.		46,750		1,153,790

Medical Properties Trust Inc.		125,700		1,236,888

Nationwide Health Properties, Inc.		76,200		2,931,414

OMEGA Healthcare Investors, Inc.		170,900		3,665,805

Senior Housing Properties Trust		429,750		10,099,125

Ventas, Inc.		95,500		4,823,705

				32,550,801

Industrial–3.35%
DCT Industrial Trust Inc.		489,900		2,268,237

EastGroup Properties, Inc.		84,100		2,964,525

ProLogis		213,900		2,320,815

				7,553,577

Industrial/Office: Mixed–4.22%
Liberty Property Trust		313,400		9,517,958

Lodging-Resorts–2.18%
Hospitality Properties Trust		252,100		4,928,555

Office–4.82%
Corporate Office Properties Trust		18,150		655,215

Highwoods Properties, Inc.		14,300		447,304

Mack-Cali Realty Corp.		212,800		6,564,880

Piedmont Office Realty Trust Inc.–Class A^(b)		175,300		3,218,508

				10,885,907

Regional Malls–8.60%
CBL & Associates Properties, Inc.		208,600		2,544,920

Simon Property Group, Inc.		186,468		16,866,031

				19,410,951

Shopping Centers–2.99%
Inland Real Estate Corp.		252,850		1,949,473

Ramco-Gershenson Properties Trust		99,200		1,035,648

Regency Centers Corp.		81,850		2,984,251

Tanger Factory Outlet Centers, Inc.		16,800		776,496

				6,745,868

Specialty Properties–3.43%
Digital Realty Trust, Inc.		61,900		3,668,813

Entertainment Properties Trust		35,100		1,512,459

Government Properties Income Trust		99,850		2,563,149

				7,744,421

Total Real Estate Investment Trusts, Common Stocks & Other Equity Interests (Cost $116,753,714)				139,057,305

Preferred Stocks–26.68%
Apartments–0.27%
BRE Properties, Inc., Series D, 6.75% Pfd.		25,300		619,850

Diversified–4.09%
Vornado Realty Trust, Series E, 7.00% Pfd.		135,963		3,495,609

Series H, 6.75% Pfd.		91,800		2,276,640

Series I, 6.63% Pfd.		140,900		3,452,050

				9,224,299

Freestanding–1.01%
National Retail Properties Inc., Series C, 7.38% Pfd.		90,450		2,281,149

Healthcare–1.63%
Health Care REIT, Inc., Series F, 7.63% Pfd.		36,500		930,750

Omega Healthcare Investors, Inc., Series D, 8.38% Pfd.		107,100		2,748,186

				3,678,936

Industrial–0.02%
ProLogis, Series C, 8.54% Pfd.		950		49,281

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

9 Invesco Select Real Estate Income Fund


	Shares		Value

Industrial/Office: Mixed–4.68%
Duke Realty Corp., Series J, 6.63% Pfd.		4,954	$	110,970

Series K, 6.50% Pfd.		5,072		113,511

Series L, 6.60% Pfd.		59,500		1,334,585

Series M, 6.95% Pfd.		72,400		1,759,320

Series N, 7.25% Pfd.		15,590		388,035

PS Business Parks, Inc., Series L, 7.60% Pfd.		36,400		919,828

Series M, 7.20% Pfd.		123,100		3,087,348

Series O, 7.38% Pfd.		110,763		2,842,179

				10,555,776

Lodging-Resorts–1.95%
Eagle Hospitality Properties Trust Inc., Series A, 8.25% Pfd.		195,800		149,297

Hospitality Properties Trust, Series C, 7.00% Pfd.		28,800		696,384

LaSalle Hotel Properties, Series D, 7.50% Pfd.		62,833		1,492,912

Series G, 7.25% Pfd.		88,950		2,073,647

				4,412,240

Office–7.16%
Alexandria Real Estate Equities Inc., Series D, 7.00% Pfd.		24,100		561,831

BioMed Realty Trust, Inc., Series A, 7.38% Pfd.		79,600		1,986,816

Brandywine Realty Trust, Series D, 7.38% Pfd.		10,355		250,695

Corporate Office Properties Trust, Series J, 7.63% Pfd.		83,470		2,089,254

Kilroy Realty Corp., Series E, 7.80% Pfd.		58,195		1,452,547

Series F, 7.50% Pfd.		188,500		4,672,915

SL Green Realty Corp., Series C, 7.63% Pfd.		151,100		3,786,566

Series D, 7.88% Pfd.		54,400		1,367,616

				16,168,240

Regional Malls–1.42%
CBL & Associates Properties, Inc., Series D, 7.38% Pfd.		85,200		2,014,980

Taubman Centers, Inc., Series G, 8.00% Pfd.		45,900		1,179,630

				3,194,610

Self Storage Facilities–3.22%
Public Storage, Series H, 6.95% Pfd.		34,500		879,405

Series I, 7.25% Pfd.		98,600		2,573,460

Series L, 6.75% Pfd.		62,400		1,580,592

Series M, 6.63% Pfd.		87,300		2,234,007

				7,267,464

Shopping Centers–0.26%
Developers Diversified Realty Corp., Series H, 7.38% Pfd.		9,200		219,052

Series I, 7.5% Pfd.		14,800		358,308

				577,360

Specialty Properties–0.97%
Digital Realty Trust, Inc., Series B, 7.88% Pfd.		85,211		2,189,923

Total Preferred Stocks (Cost $58,904,188)				60,219,128


	Principal
	Amount
Asset-Backed Securities–7.28%
Banc of America Large Loan Inc., Series 2006-BIX1, Class B, Floating Rate Pass Through Ctfs., 0.42%, 10/15/19^(c)(d)	$	1,465,000		1,334,468

Series 2006-BIX1, Class E, Floating Rate Pass Through Ctfs., 0.52%, 10/15/19^(c)(d)		1,900,000		1,567,355

Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A2, Pass Through Ctfs., 4.48%, 06/11/41		4,419		4,415

Series 2005-T18, Class A2, Variable Rate Pass Through Ctfs., 4.56%, 02/13/42^(c)		84,639		84,770

Series 2005-T18, Class AJ, Variable Rate Pass Through Ctfs., 5.01%, 02/13/42^(c)		350,000		314,532

Citigroup Commercial Mortgage Trust, Series 2006-C5, Class AMP3, Pass Through Ctfs., 5.50%, 10/15/49^(d)		1,731,078		1,587,307

Commercial Mortgage Pass Through Ctfs., Series 2001-J1A, Class C, Variable Rate Pass Through Ctfs., 6.83%, 02/16/34^(c)(d)		900,000		912,274

Credit Suisse First Boston Mortgage Securities Corp., Series 2003-C3, Class G, Variable Rate Pass Through Ctfs., 4.62%, 05/15/38^(c)(d)		25,000		22,484

Credit Suisse Mortgage Capital Ctfs., Series 2006-TF2A, Class A2, Floating Rate Pass Through Ctfs., 0.45%, 10/15/21^(c)(d)		1,900,000		1,621,747

DLJ Commercial Mortgage Corp., Series 1998-CG1, Class B4, Variable Rate Pass Through Ctfs., 7.46%, 06/10/31^(c)(d)		340,000		376,220

Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class AJ, Variable Rate Pass Through Ctfs., 4.86%, 08/10/42^(c)		400,000		367,342

GS Mortgage Securities Corp. II, Series 2001-LIBA, Class C, Pass Through Ctfs., 6.73%, 02/14/16^(d)		627,000		643,405

LB-UBS Commercial Mortgage Trust, Series 2002-C7, Class B, Pass Through Ctfs., 5.08%, 01/15/36		96,000		101,434

Series 2005-C1, Class A2, Pass Through Ctfs., 4.31%, 02/15/30		80,324		80,618

Series 2005-C3, Class AJ, Pass Through Ctfs., 4.84%, 07/15/40		1,250,000		1,111,201

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

10 Invesco Select Real Estate Income Fund


	Principal
	Amount		Value

Merrill Lynch Floating Trust, Series 2006-1, Class B, Floating Rate Pass Through Ctfs., 0.45%, 06/15/22^(c)(d)	$	1,950,000	$	1,669,605

Series 2006-1, Class D, Floating Rate Pass Through Ctfs., 0.48%, 06/15/22^(c)(d)		1,925,000		1,560,414

Merrill Lynch Mortgage Trust, Series 2004-MKB1, Class B, Variable Rate Pass Through Ctfs., 5.28%, 02/12/42^(c)		25,000		26,267

Morgan Stanley Capital I, Series 2005-HQ7, Class AJ, Variable Rate Pass Through Ctfs., 5.38%, 11/14/42^(c)		1,120,000		1,031,714

Series 2005-T19, Class A2, Pass Through Ctfs., 4.73%, 06/12/47		15,320		15,309

Series 2006-IQ11, Class B, Variable Rate Pass Through Ctfs., 5.94%, 10/15/42^(c)		270,000		177,306

Wachovia Bank Commercial Mortgage Trust, Series 2003-C5, Class B, Pass Through Ctfs., 4.11%, 06/15/35		180,000		184,809

Series 2005-C19, Class A4, Pass Through Ctfs., 4.61%, 05/15/44		240,000		244,550

Series 2006-WL7A, Class A2, Floating Rate Pass Through Ctfs., 0.40%, 09/15/21^(c)(d)		1,700,000		1,396,312

Total Asset-Backed Securities (Cost $16,206,465)				16,435,858

Bonds & Notes–2.39%
Industrial–1.95%
ProLogis, Sr. Unsec. Notes, 6.25%, 03/15/17		4,500,000		4,397,559

Shopping Centers–0.44%
Developers Diversified Realty Corp., Sr. Unsec. Medium-Term Notes, 7.50%, 07/15/18		1,000,000		1,001,250

Total Bonds & Notes (Cost $5,251,538)				5,398,809


	Shares
Money Market Funds–3.06%
Liquid Assets Portfolio–Institutional Class^(e)		3,455,993		3,455,993

Premier Portfolio–Institutional Class^(e)		3,455,993		3,455,993

Total Money Market Funds (Cost $6,911,986)				6,911,986

TOTAL INVESTMENTS–101.03% (Cost $204,027,891)				228,023,086

OTHER ASSETS LESS LIABILITIES–(1.03)%				(2,329,210	)

NET ASSETS–100.00%			$	225,693,876

Investment Abbreviations:


Ctfs.		– Certificates
Pfd.		– Preferred
REIT		– Real Estate Investment Trust
Sr.		– Senior
Unsec.		– Unsecured

Notes to Schedule of Investments:


^(a)		Property type classifications used in this report are generally according to FSTE National Association of Real Estate Investment Trusts (“NAREIT”) Equity REITs Index, which is exclusively owned by NAREIT.
^(b)		Non-income producing security.
^(c)		Interest or dividend rate is re-determined periodically. Rate shown is the rate in effect on August 31, 2010.
^(d)		Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at August 31, 2010 was $12,691,591, which represented 5.62% of the Fund’s Net Assets.
^(e)		The money market fund and the Fund are affiliated by having the same investment adviser.

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

11 Invesco Select Real Estate Income Fund

Statement of Changes in Net Assets

For the years ended August 31, 2010 and 2009


	2010			2009

Operations:
Net investment income	$	7,657,804		$	4,057,436

Net realized gain (loss)		12,627,123			(41,566,429	)

Change in net unrealized appreciation		16,465,933			18,227,028

Net increase (decrease) in net assets resulting from operations		36,750,860			(19,281,965	)

Distributions to shareholders from net investment income:
Class A		(4,685,749	)		(3,432,938	)

Class B		(30,709	)		(25,447	)

Class C		(317,879	)		(56,307	)

Class Y		(484,837	)		(20,142	)

Institutional Class		(1,558,748	)		(471,968	)

Total distributions from net investment income		(7,077,922	)		(4,006,802	)

Share transactions–net:
Class A		32,864,761			4,766,853

Class B		832,365			(193,923	)

Class C		10,729,487			2,443,803

Class Y		17,204,765			2,356,933

Institutional Class		(2,073,276	)		23,093,975

Net increase in net assets resulting from share transactions		59,558,102			32,467,641

Net increase in net assets		89,231,040			9,178,874

Net assets:
Beginning of year		136,462,836			127,283,962

End of year (includes undistributed net investment income of $1,135,981 and $554,808, respectively)	$	225,693,876		$	136,462,836

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

Invesco Select Real Estate Income Fund, formerly AIM Select Real Estate Income Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust), formerly AIM Counselor Series Trust (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of twenty-two separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest.

Prior to March 12, 2007, the Fund operated as AIM Select Real Estate Income Fund (the “Closed-End Fund”). The Closed-End Fund was reorganized as an open-end fund at which time the Fund became a new series portfolio of the Trust. The Closed-End Fund was reorganized as an open-end fund on March 12, 2007 (the “Reorganization Date”) through the transfer of all its assets and liabilities to the Fund (the “Reorganization”). Prior to the Reorganization, the Closed-End Fund redeemed Preferred Shares in their entirety. As part of the Reorganization, the Closed-End Fund was restructured from a sole series of AIM Select Real Estate Income Fund to a new series portfolio of the Trust. Upon the closing of the Reorganization, holders of the Closed-End Fund Common Shares received Class A shares of the Fund. Information for the Common Shares of the Closed-End Fund, prior to the Reorganization is included with Class A shares throughout this report.

The Fund’s investment objectives are high current income and secondarily, capital appreciation.

14 Invesco Select Real Estate Income Fund

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 will be used to value debt obligations and Corporate Loans.
		Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available timely from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income

15 Invesco Select Real Estate Income Fund


		and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital in the Statement of Changes in Net Assets. These recharacterizations are reflected in the accompanying financial statements.
C.		Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly.
		The Fund concentrates its assets in the real estate industry, an investment in the fund will be closely linked to the performance of the real estate markets. Property values may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $250 million		0	.75%

Next $250 million		0	.74%

Next $500 million		0	.73%

Next $1.5 billion		0	.72%

Next $2.5 billion		0	.71%

Next $2.5 billion		0	.70%

Next $2.5 billion		0	.69%

Over $10 billion		0	.68%

16 Invesco Select Real Estate Income Fund

Institutional Class shares to 2.00%, 2.75%, 2.75%, 1.75% and 1.75% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on December 31, 2011. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

For the year ended August 31, 2010, the Adviser waived advisory fees of $13,047.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended August 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

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

NOTE 3—Additional Valuation Information


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

17 Invesco Select Real Estate Income Fund


	Level 1		Level 2		Level 3		Total

Equity Securities	$	203,354,363	$	2,834,056	$	—	$	206,188,419

Corporate Debt Securities		—		5,398,809		—		5,398,809

Asset Backed Securities		—		16,435,858		—		16,435,858

Total Investments	$	203,354,363	$	24,668,723	$	—	$	228,023,086

NOTE 4—Expense Offset Arrangement(s)

NOTE 5—Trustees’ and Officers’ Fees and Benefits

During the year ended August 31, 2010, the Fund paid legal fees of $3,138 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	7,077,922	$	4,006,802

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	1,212,266

Net unrealized appreciation — investments		21,291,658

Temporary book/tax differences		(76,285	)

Capital loss carryforward		(34,823,326	)

Shares of beneficial interest		238,089,563

Total net assets	$	225,693,876

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

18 Invesco Select Real Estate Income Fund

NOTE 10—Share Information


	Summary of Share Activity

	Year ended August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Sold:
Class A		9,908,927		$	71,310,905			6,297,362		$	34,744,449

Class B		154,695			1,133,322			57,532			329,420

Class C		1,665,745			11,927,859			560,262			3,230,335

Class Y^(b)		3,080,777			22,003,408			1,186,116			6,557,609

Institutional Class		1,674,481			12,079,829			3,944,022			25,122,675

Issued as reinvestment of dividends:
Class A		480,564			3,507,569			377,291			2,179,083

Class B		3,704			27,078			4,076			23,964

Class C		35,013			257,127			8,753			49,216

Class Y		48,005			356,587			2,841			13,740

Institutional Class		215,117			1,558,340			82,199			471,968

Automatic conversion of Class B shares to Class A shares:
Class A		8,015			59,246			3,793			21,265

Class B		(8,029	)		(59,246	)		(3,803	)		(21,265	)

Reacquired:
Class A^(b)		(5,752,142	)		(42,012,959	)		(5,633,762	)		(32,177,944	)

Class B		(37,046	)		(268,789	)		(89,390	)		(526,042	)

Class C		(197,317	)		(1,455,499	)		(149,028	)		(835,748	)

Class Y		(700,975	)		(5,155,230	)		(771,720	)		(4,214,416	)

Institutional Class		(2,134,077	)		(15,711,445	)		(437,953	)		(2,500,668	)

Net increase in share activity		8,445,457		$	59,558,102			5,438,591		$	32,467,641


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 57% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
^(b)		Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A and Investor Class shares into Class Y shares of the Fund:


Class	Shares			Amount

Class Y		6,791		$	48,556

Class A		(6,791	)		(48,556	)

20 Invesco Select Real Estate Income Fund

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated. Information presented prior to March 12, 2007 includes financial data for the common shares of the Closed-End Fund.


	Class A*
	Year ended									Eight months ended			Year ended
	August 31,									August 31,			August 31,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of period	$	6.62		$	8.38		$	16.27		$	17.35		$	17.49		$	20.02

Income from investment operations:
Net investment income		0.28	^(a)		0.27	^(a)		0.42	^(a)		0.44	^(a)		0.86			0.90

Net gains (losses) on securities (both realized and unrealized)		1.14			(1.75	)		(1.54	)		(1.54	)		3.88			(0.36	)

Less distributions to auction rate preferred shareholders of Closed-End Fund from net investment income^(b)		N/A			N/A			N/A			N/A			(0.20	)		(0.17	)

Total from investment operations		1.42			(1.48	)		(1.12	)		(1.10	)		4.54			0.37

Less distributions:
Dividends from net investment income		(0.27	)		(0.28	)		(0.65	)		(0.38	)		(0.89	)		(1.24	)

Distributions from net realized gains		—			—			(6.18	)		(0.09	)		(3.84	)		(1.66	)

Total distributions		(0.27	)		(0.28	)		(6.83	)		(0.47	)		(4.73	)		(2.90	)

Increase from common shares of Closed-End Fund repurchased		N/A			N/A			N/A			—			0.05			—

Redemption fees added to shares of beneficial interest		—			—			0.06			0.49			N/A			N/A

Net asset value, end of period	$	7.77		$	6.62		$	8.38		$	16.27		$	17.35		$	17.49

Market value per common share of Closed-End Fund at period-end	$	N/A		$	N/A		$	N/A		$	N/A		$	16.67		$	14.98

Total return at net asset value		21.85	%^(c)		(17.12	)%^(c)		(7.47	)%^(c)(d)		(3.59	)%^(c)(d)		29.15	%^(e)		4.44	%^(e)

Market value return		N/A			N/A			N/A			N/A			44.88	%		2.33	%

Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	147,568		$	94,979		$	111,529		$	224,000		$	678,394		$	698,380

Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements		1.37	%^(f)		1.73	%		1.32	%		1.08	%^(g)		0.96	%^(h)		0.95	%^(h)

Without fee waivers and/or expense reimbursements		1.38	%^(f)		1.74	%		1.33	%		1.23	%^(g)		1.33	%^(h)		1.33	%^(h)

Ratio of net investment income to average net assets		3.93	%^(f)		4.83	%		3.91	%		3.82	%^(g)		4.59	%^(h)		4.70	%^(h)

Ratio of distributions to auction rate preferred shareholders of Closed-End Fund to average net attributable to common shares of Closed-End Fund		N/A			N/A			N/A			N/A			1.30	%^(g)		0.86	%

Portfolio turnover rate⁽ⁱ⁾		77	%		59	%		73	%		24	%		23	%		17	%

Auction rate preferred shares of Closed-End Fund:
Liquidation value, end of period (000s omitted)		N/A			N/A			N/A			N/A			—		$	205,000

Total shares outstanding		N/A			N/A			N/A			N/A			—			8,200

Asset coverage per share		N/A			N/A			N/A			N/A			—		$	110,168

Liquidation and market value per share		N/A			N/A			N/A			N/A			—		$	25,000


*		Prior to March 12, 2007 the Fund operated as a Closed-End Fund. On such date, holders of common shares of Closed-End Fund received Class A shares of the Fund equal to the number of Closed-End Fund common shares they owned prior to the Reorganization.
^(a)		Calculated using average shares outstanding.
^(b)		Based on average number of common shares outstanding of Closed-End Fund.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Includes the impact of the temporary 2% redemption fee which was effective March 12, 2007 through March 11, 2008.
^(e)		Net asset value return includes adjustments in accordance with accounting principles generally accepted in the United States of America and measures the changes in common shares’ value of Closed-End over the period indicated, taking into account dividends as reinvested. Market value return is computed based upon the New York Stock Exchange market price of the Closed-End Fund’s common shares and excludes the effects of brokerage commissions. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Closed-End Fund’s dividend reinvestment plan.
^(f)		Ratios are based on average daily net assets (000s omitted) of $127,674.
^(g)		Annualized.
^(h)		Ratios do not reflect the effect of dividend payments to auction rate preferred shareholders; income ratios reflect income earned on investments made with assets attributable to auction rate preferred shares of Closed-End Fund.
⁽ⁱ⁾		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

21 Invesco Select Real Estate Income Fund


																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income^(a)		unrealized)			operations			income			gains			Distributions			of period		Return^(b)			(000s omitted)		absorbed			absorbed			net assets			turnover^(c)

Class B
Year ended 08/31/10	$	6.60	$	0.23	$	1.14		$	1.37		$	(0.22	)	$	—		$	(0.22	)	$	7.75		21.02	%	$	1,676		2.12	%^(d)		2.13	%^(d)		3.18	%^(d)		77	%
Year ended 08/31/09		8.37		0.23		(1.77	)		(1.54	)		(0.23	)		—			(0.23	)		6.60		(17.91	)		680		2.48			2.49			4.08			59
Year ended 08/31/08		16.23		0.28		(1.40	)^(e)		(1.12	)		(0.56	)		(6.18	)		(6.74	)		8.37		(8.01	)		1,126		2.07			2.08			3.16			73
Year ended 08/31/07^(f)		17.34		0.22		(1.09	)^(e)		(0.87	)		(0.24	)		—			(0.24	)		16.23		(5.10	)		162		2.04	^(g)		2.04	^(g)		2.86	^(g)		24

Class C
Year ended 08/31/10		6.60		0.23		1.14			1.37			(0.22	)		—			(0.22	)		7.75		21.02			16,692		2.12	^(d)		2.13	^(d)		3.18	^(d)		77
Year ended 08/31/09		8.38		0.23		(1.78	)		(1.55	)		(0.23	)		—			(0.23	)		6.60		(18.00	)		4,296		2.48			2.49			4.08			59
Year ended 08/31/08		16.23		0.29		(1.40	)^(e)		(1.11	)		(0.56	)		(6.18	)		(6.74	)		8.38		(7.90	)		1,932		2.07			2.08			3.16			73
Year ended 08/31/07^(f)		17.34		0.22		(1.09	)^(e)		(0.87	)		(0.24	)		—			(0.24	)		16.23		(5.10	)		356		2.04	^(g)		2.04	^(g)		2.86	^(g)		24

Class Y
Year ended 08/31/10		6.60		0.31		1.13			1.44			(0.29	)		—			(0.29	)		7.75		22.21			22,047		1.12	^(d)		1.13	^(d)		4.18	^(d)		77
Year ended 08/31/09^(f)		7.15		0.26		(0.63	)		(0.37	)		(0.18	)		—			(0.18	)		6.60		(4.23	)		2,755		1.53	^(g)		1.53	^(g)		5.03	^(g)		59

Institutional Class
Year ended 08/31/10		6.62		0.32		1.13			1.45			(0.31	)		—			(0.31	)		7.76		22.27			37,711		0.92	^(d)		0.93	^(d)		4.38	^(d)		77
Year ended 08/31/09		8.39		0.31		(1.77	)		(1.46	)		(0.31	)		—			(0.31	)		6.62		(16.75	)		33,753		1.11			1.12			5.45			59
Year ended 08/31/08		16.27		0.37		(1.37	)^(e)		(1.00	)		(0.70	)		(6.18	)		(6.88	)		8.39		(6.91	)		12,696		0.88			0.89			4.35			73
Year ended 08/31/07^(f)		17.34		0.32		(1.09	)^(e)		(0.77	)		(0.30	)		—			(0.30	)		16.27		(4.53	)		10		0.89	^(g)		0.89	^(g)		4.01	^(g)		24


^(a)		Calculated using average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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)		Ratios are based on average daily net assets (000’s omitted) of $1,082, $11,555, $14,009 and $37,638 for Class B, Class C, Class Y and Institutional Class shares, respectively.
^(e)		Includes the impact of the temporary 2% redemption fee which was effective March 12, 2007 through March 11, 2008. Redemption fees added to shares of beneficial interest for Class B, Class C and Institutional Class shares were $0.05, $0.05 and $0.04 per share and $0.47, $0.47 and $0.48 per share for the years ended August 31, 2008 and the eight months ended August 31, 2007, respectively.
^(f)		Commencement date of March 9, 2007 for Class B, Class C and Institutional Class shares and October 3, 2008 for Class Y shares.
^(g)		Annualized.

22 Invesco Select Real Estate Income Fund

NOTE 11—Financial Highlights—(continued)

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Select Real Estate Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Select Real Estate Income Fund (formerly known as AIM Select Real Estate Income Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations for the year then ended, the changes in its net assets the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

23 Invesco Select Real Estate Income Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	1,102.00	$	7.10	$	1,018.45	$	6.82		1.34	%

B		1,000.00		1,096.70		11.05		1,014.67		10.61		2.09

C		1,000.00		1,096.70		11.05		1,014.67		10.61		2.09

Y		1,000.00		1,102.00		5.78		1,019.71		5.55		1.09

Institutional		1,000.00		1,102.90		4.72		1,020.72		4.53		0.89


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

24 Invesco Select Real Estate Income Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Select Real Estate Income Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

Factors and Conclusions and Summary of Independent Written Fee Evaluation


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

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

The Board reviewed the services provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund.


B.	Fund Performance

25 Invesco Select Real Estate Income Fund

The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Real Estate Funds Index. The Board noted that the performance of Class A shares of the Fund was in the first quintile of its Lipper performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was above the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other mutual funds with investment strategies comparable to those of the Fund.

The Board considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least December 31, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.


D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for the research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

26 Invesco Select Real Estate Income Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


		SREI-AR-1		Invesco Distributors, Inc.

Letter to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Structured Core Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Structured Core Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended August 31, 2010, Class A shares of Invesco Structured Core Fund, at net asset value (NAV), lagged the S&P 500 Index and underperformed the Lipper Large-Cap Core Funds Index. The Fund seeks to provide long-term growth of capital by investing, normally, at least 80% of its assets in a diversified portfolio of securities of large-cap companies.

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

Fund vs. Indexes


Class A Shares	-1.07	%

Class B Shares	-1.85

Class C Shares	-1.85

Class R Shares	-1.30

Class Y Shares	-0.85

Investor Class Shares	-1.07

Institutional Class Shares	-0.83

S&P 500 Index^▼ (Broad Market/Style-Specific Index)	4.93

Lipper Large-Cap Core Funds Index^▼ (Peer Group Index)	2.70


^▼		Lipper Inc.

How we invest

We manage your Fund to provide exposure to large-cap core equity stocks. The portfolio strives to outperform the S&P 500 Index while minimizing the amount of additional risk relative to the benchmark. The Fund can be used as a long-term allocation to large cap stocks that complements other style-specific strategies within a diversified asset allocation strategy.

Our investment process integrates the following key steps:

n Universe development

n Stock rankings

n Risk assessment

n Portfolio construction

n Trading

valuation. The scores from these four factors are combined to arrive at an overall alpha score (excess return forecast) for each stock. Each alpha score is relative to the other securities within the same industry. Stocks are also evaluated on a multitude of other factors to develop a stock-specific risk forecast and transaction cost forecast.

We then incorporate the alpha forecast, risk forecast and transaction cost forecast using an optimizer (a software tool) to build a portfolio that we believe is an optimal balance of the stocks’ potential risk and return. This portfolio is constructed according to certain constraints to increase the probability that the Fund’s relative performance and volatility remain within strategy guidelines. We continually monitor the portfolio and the overall investment process is repeated on a monthly basis to determine which companies should be bought or sold.

In terms of risk management, we seek to minimize any style biases in the portfolio. Active managers typically add

value in one of, or a combination of, four areas: beta bias (relative volatility), style bias, stock selection and sector/industry over- and underweight. We attempt to add value through our stock selection decisions. Consequently, our risk management process seeks to neutralize the Fund’s exposure relative to the benchmark with regard to beta, style and sector/industry exposures.

Market conditions and your Fund

Over the past year investors were optimistic about the prospect of an improving economy given accommodative monetary policy, fiscal stimulus and improving strength in the manufacturing sector. However, optimism turned to pessimism when there was little good news to counter the seeds of economic troubles planted in the first quarter, which were already weighing heavily on the market. Within the U.S., waning consumer confidence, worsening employment outlook and continued pressures in the financial sector confirmed that economic growth was stalling. Internationally, concerns arose from news of slowing economic growth in China and ongoing concerns about debt burdens in the southern eurozone, despite support from their northern peers. With little positive news to support the market, steady gains became steep losses.

At the beginning of the 12-month period covered by this report, riskier assets outperformed securities considered safe havens, such as U.S. Treasury securities. This trend continued through the middle of April 2010. However, renewed credit problems overseas and the market correction that occurred in May and continued into August created a more uncertain environment — prompting many investors to favor potential safety over risk. Although recent market volatility created challenges, it also created some investment opportunities as companies with positive fundamentals became more attractively valued.

Portfolio Composition

By sector


Information Technology	20.3	%

Consumer Discretionary	15.9

Financials	13.4

Health Care	12.8

Energy	12.4

Consumer Staples	8.6

Telecommunication Services	5.3

Materials	4.5

Industrials	2.7

Utilities	1.6

U.S. Treasury Bills, Money Market Funds Plus Other Assets Less Liabilities	2.5

Top 10 Equity Holdings*




1.	Exxon Mobil Corp.	4.8	%

2.	Procter & Gamble Co.	3.8

3.	Microsoft Corp.	3.8

4.	AT&T Inc.	3.7

5.	International Business Machines Corp.	3.6

6.	Chevron Corp.	2.9

7.	Apple Inc.	2.9

8.	Wal-Mart Stores, Inc.	2.5

9.	American Express Co.	2.4

10.	Hewlett-Packard Co.	2.4


Total Net Assets		$84.6 million

Total Number of Holdings*		77

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

*Excluding money market fund holdings.

Invesco Structured Core Fund

All sectors — aside from financials — posted positive performance for the reporting period as equity markets rallied through the first quarter of 2010 and in July 2010. All investment styles posted positive returns, with mid-cap stocks generally outperforming large-cap stocks and growth stocks generally outpacing value stocks for the period.

Regarding the results of the Invesco Structured Core Fund, it’s important to understand our investment process to better evaluate the drivers of our relative performance versus the benchmark. We generally evaluate performance based on the effect of our stock selection and risk management process.

Our stock selection model, based on the four factors (company earnings momentum, price trend, management action and relative value) that make up our alpha (excess return) forecast for stocks in our investment universe, was a detractor from Fund performance. However, when selecting Fund holdings we also take into account our risk and transaction cost forecasts. We use our optimization software to assist in making investment decisions, based on risk and transaction cost forecasts, as well as our alpha forecast. Consequently, while our stock selection model may identify a stock with an attractive alpha forecast, the optimizer may indicate that its transaction costs are too high and/or its risk level is unacceptable. Placing more of an emphasis on transaction costs and potential risk in making stock selections may benefit or detract from Fund performance. For the fiscal year, it augmented our results.

Sectors that generated positive returns over the Fund’s fiscal year included consumer staples, consumer discretionary, materials and telecommunication services. Stock selection within the financial sector was also a contributor. The health care, industrials, information technology (IT) and utilities sectors detracted from overall performance.

From an individual stock perspective, Ford, RadioShack and Home Depot were top contributors within the consumer discretionary sector. RadioShack is no longer held by the Fund. In August 2010, Ford completed the sale of its Swedish Volvo Car unit and related assets to China’s Zhejiang Geely Holding Group (not a Fund holding).

Fund holdings in the health care sector, such as Pfizer and Amgen detracted from performance. On Oct. 15, 2009, Pfizer completed its acquisition of Wyeth. In December 2009, Durata Therapeutics acquired Vicuron Pharmaceuticals from Pfizer. Wyeth, Durata Therapuetics and Vicuron Pharmaceuticals are not Fund

holdings. Fund holdings in IT, such as Hewlett-Packard, also detracted from performance. The CEO of Hewlett-Packard resigned at the end of the reporting period.

The Fund’s investment model underperformed the benchmark index due to the absence of an established trend in favor of our stock selection factors. During the reporting period, our model had limited predictive ability because our highest-ranked stocks underperformed our lowest-ranked stocks. The sharp sell-off in the stock market created particular challenges for our price trend model since the positive trend established in March 2009 reversed significantly over the past few months. On a positive note, companies that were attractively priced based on earnings potential outperformed their peers in August, which partly offset weakness in the investment model. As part of implementing this strategy, the Fund may use derivatives, such as futures contracts to better manage our market exposure. The use of derivatives during the period was successful.

While the global economy appeared more stable entering 2010 than it did the prior year, forecasting the future direction of the economy remains extremely challenging. The bursting of the U.S. housing bubble, rising unemployment and increasing taxation may likely impede future economic growth, while massive fiscal and monetary stimulus may promote economic growth.

In a world of moderate but positive economic growth, low inflation and prolonged government liquidity support, we believe the potential for equities may exist. Additionally, valuations remain reasonable by historical standards, especially after the pullback during the second quarter of 2010.

We welcome new investors who joined the Fund during the fiscal year and would like to thank all of our shareholders for your investment in Invesco Structured Core Fund.

See important Fund and index disclosures later in this report.

Ralph Coutant

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Core Fund. Mr. Coutant joined Invesco in 1999. He earned a B.S. in business administration from the University of New Hampshire.

Lawson McWhorter

Portfolio manager, is manager of Invesco Structured Core Fund. Mr. McWhorter joined Invesco in 2005. He began his investment career in 1994. Mr. McWhorter earned a B.A. with cum laude honors from Davidson College. He is a Chartered Market Technician.

Glen Murphy

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Core Fund. Mr. Murphy joined Invesco in 1995. He earned a B.A. in business administration from the University of Massachusetts at Amherst and an M.S. in finance from Boston College.

Anthony Shufflebotham

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Core Fund. Mr. Shufflebotham joined Invesco in 1998. He earned a B.S. in economics, accounting and finance from Oxford Brookes University and an M.S. in finance from Boston College.

Anne Unflat

Portfolio manager, is manager of Invesco Structured Core Fund. Ms. Unflat began her investment career in 1988. She graduated magna cum laude from Queens College with a B.A. in economics. She earned an M.B.A. in finance from St. John’s University.

Invesco Structured Core Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (3/31/06)		-5.76	%

1	Year	-6.56


Class B Shares

Inception (3/31/06)		-5.57	%

1	Year	-6.73


Class C Shares

Inception (3/31/06)		-5.23	%

1	Year	-2.82


Class R Shares

Inception (3/31/06)		-4.75	%

1	Year	-1.30


Class Y Shares

Inception		-4.39	%

1	Year	-0.85

Investor Class Shares

Inception		-4.48	%

1	Year	-1.07

Institutional Class Shares

Inception (3/31/06)		-4.27	%

1	Year	-0.83

Investor Class shares incepted on April 25, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (3/31/06)		-6.05	%

1	Year	3.41


Class B Shares

Inception (3/31/06)		-5.82	%

1	Year	3.56


Class C Shares

Inception (3/31/06)		-5.50	%

1	Year	7.39


Class R Shares

Inception (3/31/06)		-5.00	%

1	Year	9.04


Class Y Shares

Inception		-4.67	%

1	Year	9.65

Investor Class Shares

Inception		-4.76	%

1	Year	9.40

Institutional Class Shares

Inception (3/31/06)		-4.51	%

1	Year	-9.65

recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares was 1.01%, 1.76%, 1.76%, 1.26%, 0.76%, 1.01%, and 0.76%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares was 1.30, 2.05%, 2.05%, 1.55%, 1.05%, 1.30% and 0.90%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Investor Class and Institutional

Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least December 31, 2011. See current prospectus for more information.

Invesco Structured Core Fund

Invesco Structured Core Fund’s investment objective is long-term growth of capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

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

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

Principal risks of investing in the Fund

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

n		Prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

n		The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

n		Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

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

n		Leveraging entails risks such as magnifying changes in the value of the portfolio’s securities.

n		The Fund may use enhanced investment techniques such as derivatives. The principal risk of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Derivatives are subject to counterparty risk — the risk that the other party will not complete the transaction with the Fund.

n		The Fund may invest a large percent-age of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

About indexes used in this report

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

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

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

Other information

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

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		SCAUX
Class B Shares		SBCUX
Class C Shares		SCCUX
Class R Shares		SCRUX
Class Y Shares		SCAYX
Investor Class Shares		SCNUX
Institutional Class Shares		SCIUX

Invesco Structured Core Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks–97.48%
Airlines–0.37%
Delta Air Lines, Inc.^(b)		30,200	$	315,892

Apparel Retail–1.37%
Gap, Inc. (The)		68,700		1,160,343

Apparel, Accessories & Luxury Goods–0.55%
Jones Apparel Group, Inc.		30,000		461,400

Auto Parts & Equipment–0.12%
Magna International Inc. (Canada)		1,300		101,101

Automobile Manufacturers–2.30%
Ford Motor Co.^(b)		172,100		1,943,009

Biotechnology–2.37%
Amgen Inc.^(b)		39,300		2,005,872

Cable & Satellite–0.13%
Comcast Corp.–Class A		6,200		106,144

Casinos & Gaming–0.29%
Las Vegas Sands Corp.^(b)		8,600		243,638

Communications Equipment–0.19%
Tellabs, Inc.		22,200		157,620

Computer Hardware–5.52%
Apple Inc.^(b)		10,100		2,458,037

Dell Inc.^(b)		16,100		189,497

Hewlett-Packard Co.		52,500		2,020,200

				4,667,734

Computer Storage & Peripherals–3.41%
Lexmark International, Inc.–Class A^(b)		32,700		1,144,173

SanDisk Corp.^(b)		37,800		1,256,472

Seagate Technology (Ireland)^(b)		47,500		481,175

				2,881,820

Construction, Farm Machinery & Heavy Trucks–0.99%
Joy Global Inc.		3,300		187,242

Oshkosh Corp.^(b)		26,000		646,880

				834,122

Consumer Finance–4.05%
American Express Co.		50,800		2,025,396

Capital One Financial Corp.		36,900		1,397,034

				3,422,430

Data Processing & Outsourced Services–0.55%
Visa Inc.–Class A		6,700		462,166

Department Stores–1.98%
Macy’s, Inc.		86,200		1,675,728

Diversified Banks–1.24%
Wells Fargo & Co.		44,700		1,052,685

Diversified Metals & Mining–2.65%
Freeport-McMoRan Copper & Gold Inc.		14,200		1,022,116

Titanium Metals Corp.^(b)		67,200		1,217,664

				2,239,780

Education Services–0.40%
Career Education Corp.^(b)		19,400		340,082

Electronic Manufacturing Services–0.64%
Flextronics International Ltd. (Singapore)^(b)		110,500		544,765

Footwear–0.56%
Crocs, Inc.^(b)		37,800		472,500

General Merchandise Stores–0.50%
Target Corp.		8,300		424,628

Health Care Distributors–0.12%
Cardinal Health, Inc.		3,500		104,860

Home Improvement Retail–0.95%
Home Depot, Inc. (The)		28,900		803,709

Homebuilding–3.06%
D.R. Horton, Inc.		144,000		1,477,440

Lennar Corp.–Class A		84,600		1,114,182

				2,591,622

Household Products–3.79%
Procter & Gamble Co. (The)		53,700		3,204,279

Hypermarkets & Super Centers–2.54%
Wal-Mart Stores, Inc.		42,900		2,151,006

Independent Power Producers & Energy Traders–1.56%
Constellation Energy Group Inc.		45,000		1,319,850

Industrial Conglomerates–0.69%
General Electric Co.		40,300		583,544

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

9 Invesco Structured Core Fund


	Shares		Value

Industrial Machinery–0.68%
Illinois Tool Works Inc.		6,300	$	259,938

Ingersoll-Rand PLC (Ireland)		1,400		45,542

Parker Hannifin Corp.		4,500		266,220

				571,700

Integrated Oil & Gas–10.67%
Chevron Corp.		33,600		2,491,776

ConocoPhillips		26,100		1,368,423

Exxon Mobil Corp.		68,600		4,058,376

Occidental Petroleum Corp.		15,100		1,103,508

				9,022,083

Integrated Telecommunication Services–4.64%
AT&T Inc.		115,600		3,124,668

Verizon Communications Inc.		27,100		799,721

				3,924,389

Internet Software & Services–0.21%
Akamai Technologies, Inc.^(b)		1,000		46,070

AOL Inc.^(b)		6,100		135,542

				181,612

IT Consulting & Other Services–3.57%
International Business Machines Corp.		24,500		3,019,135

Life & Health Insurance–2.65%
Aflac, Inc.		16,200		765,450

Prudential Financial, Inc.		29,200		1,476,644

				2,242,094

Managed Health Care–3.94%
Humana Inc.^(b)		27,600		1,319,004

UnitedHealth Group Inc.		63,400		2,011,048

				3,330,052

Movies & Entertainment–2.02%
Time Warner Inc.		57,000		1,708,860

Multi-Line Insurance–0.44%
Assurant, Inc.		10,100		369,256

Oil & Gas Equipment & Services–1.78%
National Oilwell Varco Inc.		40,100		1,507,359

Other Diversified Financial Services–0.08%
JPMorgan Chase & Co.		1,800		65,448

Packaged Foods & Meats–0.14%
Tyson Foods, Inc.–Class A		7,300		119,574

Paper Products–1.83%
International Paper Co.		67,900		1,389,234

MeadWestvaco Corp.		7,200		156,672

				1,545,906

Pharmaceuticals–6.38%
Bristol-Myers Squibb Co.		6,700		174,736

Eli Lilly and Co.		54,000		1,812,240

Forest Laboratories, Inc.^(b)		10,000		272,900

Johnson & Johnson		29,800		1,699,196

Pfizer Inc.		90,100		1,435,293

				5,394,365

Property & Casualty Insurance–4.19%
Berkshire Hathaway Inc.–Class B^(b)		14,500		1,142,310

Travelers Cos., Inc. (The)		23,000		1,126,540

XL Group PLC (Ireland)		71,000		1,271,610

				3,540,460

Publishing–1.67%
Gannett Co., Inc.		107,000		1,293,630

McGraw-Hill Cos., Inc. (The)		4,300		118,895

				1,412,525

Regional Banks–0.76%
Fifth Third Bancorp		32,800		362,440

PNC Financial Services Group, Inc.		5,500		280,280

				642,720

Semiconductors–2.39%
Intel Corp.		46,400		822,208

Micron Technology, Inc.^(b)		185,200		1,197,318

				2,019,526

Systems Software–3.78%
Microsoft Corp.		136,200		3,197,976

Tobacco–2.15%
Philip Morris International Inc.		35,300		1,815,832

Wireless Telecommunication Services–0.62%
Sprint Nextel Corp.^(b)		129,600		528,768

Total Common Stocks (Cost $81,649,400)				82,431,969


	Principal
	Amount
U.S. Treasury Bills–0.47%
0.08%, 09/16/10 (Cost $399,987)^(c)(d)	$	400,000		399,987

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

10 Invesco Structured Core Fund

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

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

The Fund currently consists of seven different classes of shares: Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class. Investor Class shares of the Fund are offered only to certain grandfathered investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y, Investor Class and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

15 Invesco Structured Core Fund


B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

16 Invesco Structured Core Fund


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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $250 million		0	.60%

Next $250 million		0	.575%

Next $500 million		0	.55%

Next $1.5 billion		0	.525%

Next $2.5 billion		0	.50%

Next $2.5 billion		0	.475%

Next $2.5 billion		0	.45%

Over $10 billion		0	.425%

The Adviser has contractually agreed, through at least December 31, 2011, 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 (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares to 1.00%, 1.75%, 1.75%, 1.25%, 0.75%, 1.00% and 0.75% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on December 31, 2011.

For the year ended August 31, 2010, the Adviser waived advisory fees $94,972 and reimbursed class level expenses of $4,003, $443, $709, $2,316, $431, $191,907 and $15,150 of Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended August 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, 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 B and Class C shares, 0.50% of the average daily net assets of Class R shares and 0.25% of the average daily net assets of Investor Class shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the year ended August 31, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

17 Invesco Structured Core Fund

to the shareholder. During the year ended August 31, 2010, IDI advised the Fund that IDI retained $817 in front-end sales commissions from the sale of Class A shares and $0, $18 and $45 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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.


	Level 1		Level 2			Level 3		Total

Equity Securities	$	84,012,703	$	—		$	—	$	84,012,703

U.S. Treasury Securities		—		399,987			—		399,987

	$	84,012,703	$	399,987		$	—	$	84,412,690

Futures*		—		(73,592	)		—		(73,592	)

Total Investments	$	84,012,703	$	326,395		$	—	$	84,339,098


*	Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/ Derivative Type	Assets		Liabilities

Market risk
Futures contracts^(a)	$	—	$	(73,592	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets & Liabilities.

18 Invesco Structured Core Fund

Effect of Derivative Instruments for the year ended August 31, 2010

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


	Location of Gain (Loss) on
	Statement of Operations
	Futures*

Realized Gain
Market risk	$	472,575

Change in Unrealized Appreciation (Depreciation)
Market risk		(329,253	)

Total	$	143,322


*	The average value of futures outstanding during the period was $2,563,610.

Open Futures Contracts

Unrealized

Number of

Month/

Appreciation

Contract

Contracts

Commitment

Value

(Depreciation)

Chicago Mercantile Exchange E-Mini S&P 500 Index

September-2010/Long

1,886,940

(73,592

)

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangements is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the year ended August 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $989.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

During the year ended August 31, 2010, the Fund paid legal fees of $2,985 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

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

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	2,051,719	$	1,093,885

Long-term capital gain		—		20,130,471

Total distributions	$	2,051,719	$	21,224,356

19 Invesco Structured Core Fund

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	1,045,777

Net unrealized appreciation — investments		243,267

Temporary book/tax differences		(35,329	)

Post-October deferrals		(514,041	)

Capital loss carryforward		(34,353,420	)

Shares of beneficial interest		118,176,474

Total net assets	$	84,562,728

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

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	9,871,752

August 31, 2018		24,481,668

Total capital loss carryforward	$	34,353,420


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

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $73,742,858 and $99,457,051, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	7,051,573

Aggregate unrealized (depreciation) of investment securities		(6,808,306	)

Net unrealized appreciation of investment securities	$	243,267

Cost of investments for tax purposes is $84,169,423.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of Real Estate Investment Trust distributions, on August 31, 2010, undistributed net investment income was decreased by $2,453 and undistributed net realized gain (loss) was increased by $2,453. This reclassification had no effect on the net assets of the Fund.

20 Invesco Structured Core Fund

NOTE 11—Share Information


	Summary of Share Activity

	Years ended August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Sold:
Class A		128,789		$	869,022			441,071		$	2,793,780

Class B		5,802			38,360			50,732			325,326

Class C		19,734			129,647			311,615			2,058,767

Class R		208,043			1,443,352			7,372			43,440

Class Y^(b)		1,829			12,203			38,159			313,750

Investor Class		1,072,097			7,343,739			1,882,307			11,430,231

Institutional Class		176,429			1,207,236			627,262			3,748,959

Issued as reinvestment of dividends:
Class A		4,968			33,784			68,237			384,176

Class B		157			1,066			11,638			64,826

Class C		262			1,773			56,301			313,598

Class R		1,703			11,562			1,736			9,759

Class Y		594			4,053			8,968			50,578

Investor Class		221,069			1,509,898			2,840,248			16,047,399

Institutional Class		65,443			446,320			673,350			3,797,693

Automatic conversion of Class B shares to Class A shares:
Class A		2,729			18,856			5,525			31,109

Class B		(2,755	)		(18,856	)		(5,596	)		(31,109	)

Reacquired:
Class A^(b)		(185,339	)		(1,263,707	)		(361,111	)		(2,117,257	)

Class B		(8,460	)		(55,908	)		(40,515	)		(232,004	)

Class C		(24,579	)		(163,097	)		(353,556	)		(2,002,803	)

Class R		(8,840	)		(58,901	)		(2,550	)		(15,508	)

Class Y		(12,379	)		(84,068	)		(14,651	)		(80,482	)

Investor Class^(b)		(3,918,195	)		(26,728,218	)		(4,899,493	)		(32,309,135	)

Institutional Class		(1,779,103	)		(11,777,348	)		(863,365	)		(5,397,617	)

Net increase (decrease) in share activity		(4,030,002	)	$	(27,079,232	)		483,684		$	(772,524	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 14% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
^(b)		Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A and Investor Class shares into Class Y shares of the Fund:


	Class Shares			Amount

Class Y		35,513		$	294,403

Class A		(2,881	)		(23,882	)

Investor Class		(32,593	)		(270,521	)

21 Invesco Structured Core Fund

NOTE 12—Financial Highlights

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


																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset		Net			(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		investment			securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			income			gains			Distributions			of period		Return^(a)			(000s omitted)		absorbed			absorbed			net assets			turnover^(b)

Class A
Year ended 08/31/10	$	6.47	$	0.06	^(c)	$	(0.12	)	$	(0.06	)	$	(0.12	)	$	—		$	(0.12	)	$	6.29		(1.07	)%	$	1,265		1.00	%^(d)		1.31	%^(d)		0.93	%^(d)		71	%
Year ended 08/31/09		9.89		0.11	^(c)		(2.16	)		(2.05	)		(0.07	)		(1.30	)		(1.37	)		6.47		(18.66	)		1,618		0.66			1.29			1.85			77
Year ended 08/31/08		11.19		0.14	^(c)		(1.37	)		(1.23	)		(0.02	)		(0.05	)		(0.07	)		9.89		(11.03	)		951		0.75			1.93			1.34			118
Year ended 08/31/07		10.19		0.08	^(c)		1.10			1.18			(0.18	)		—			(0.18	)		11.19		11.60			1,532		1.02			6.88			0.67			79
Year ended 08/31/06^(e)		10.00		0.04			0.15			0.19			—			—			—			10.19		1.90			985		1.06	^(f)		10.44	^(f)		0.95	^(f)		25

Class B
Year ended 08/31/10		6.37		0.01	^(c)		(0.13	)		(0.12	)		(0.03	)		—			(0.03	)		6.22		(1.85	)		173		1.75	^(d)		2.06	^(d)		0.18	^(d)		71
Year ended 08/31/09		9.79		0.06	^(c)		(2.13	)		(2.07	)		(0.05	)		(1.30	)		(1.35	)		6.37		(19.10	)		211		1.41			2.04			1.10			77
Year ended 08/31/08		11.14		0.06	^(c)		(1.36	)		(1.30	)		—			(0.05	)		(0.05	)		9.79		(11.71	)		165		1.50			2.68			0.59			118
Year ended 08/31/07		10.16		(0.01	)^(c)		1.10			1.09			(0.11	)		—			(0.11	)		11.14		10.74			847		1.77			7.63			(0.08	)		79
Year ended 08/31/06^(e)		10.00		0.01			0.15			0.16			—			—			—			10.16		1.60			640		1.81	^(f)		11.19	^(f)		0.20	^(f)		25

Class C
Year ended 08/31/10		6.37		0.01	^(c)		(0.13	)		(0.12	)		(0.03	)		—			(0.03	)		6.22		(1.85	)		219		1.75	^(d)		2.06	^(d)		0.18	^(d)		71
Year ended 08/31/09		9.79		0.06	^(c)		(2.13	)		(2.07	)		(0.05	)		(1.30	)		(1.35	)		6.37		(19.10	)		254		1.41			2.04			1.10			77
Year ended 08/31/08		11.14		0.06	^(c)		(1.36	)		(1.30	)		—			(0.05	)		(0.05	)		9.79		(11.71	)		249		1.50			2.68			0.59			118
Year ended 08/31/07		10.16		(0.01	)^(c)		1.10			1.09			(0.11	)		—			(0.11	)		11.14		10.74			1,043		1.77			7.63			(0.08	)		79
Year ended 08/31/06^(e)		10.00		0.01			0.15			0.16			—			—			—			10.16		1.60			625		1.81	^(f)		11.19	^(f)		0.20	^(f)		25

Class R
Year ended 08/31/10		6.45		0.05	^(c)		(0.12	)		(0.07	)		(0.11	)		—			(0.11	)		6.27		(1.30	)		1,335		1.25	^(d)		1.56	^(d)		0.68	^(d)		71
Year ended 08/31/09		9.86		0.10	^(c)		(2.15	)		(2.05	)		(0.06	)		(1.30	)		(1.36	)		6.45		(18.70	)		77		0.91			1.54			1.60			77
Year ended 08/31/08		11.17		0.11	^(c)		(1.37	)		(1.26	)		—			(0.05	)		(0.05	)		9.86		(11.32	)		53		1.00			2.18			1.09			118
Year ended 08/31/07		10.18		0.05	^(c)		1.10			1.15			(0.16	)		—			(0.16	)		11.17		11.33			684		1.27			7.13			0.42			79
Year ended 08/31/06^(e)		10.00		0.03			0.15			0.18			—			—			—			10.18		1.80			611		1.31	^(f)		10.69	^(f)		0.70	^(f)		25

Class Y
Year ended 08/31/10		6.50		0.08	^(c)		(0.13	)		(0.05	)		(0.13	)		—			(0.13	)		6.32		(0.85	)		142		0.75	^(d)		1.06	^(d)		1.18	^(d)		71
Year ended 08/31/09^(e)		8.29		0.12	^(c)		(0.54	)		(0.42	)		(0.07	)		(1.30	)		(1.37	)		6.50		(2.50	)		211		0.43	^(f)		1.07	^(f)		2.08	^(f)		77

Investor Class
Year ended 08/31/10		6.50		0.06	^(c)		(0.12	)		(0.06	)		(0.12	)		—			(0.12	)		6.32		(1.07	)		69,635		1.00	^(d)		1.31	^(d)		0.93	^(d)		71
Year ended 08/31/09		9.90		0.12	^(c)		(2.15	)		(2.03	)		(0.07	)		(1.30	)		(1.37	)		6.50		(18.43	)		88,674		0.66			1.29			1.85			77
Year ended 08/31/08^(e)		10.73		0.05			(0.88	)		(0.83	)		—			—			—			9.90		(7.73	)		136,838		0.60	^(f)		1.10	^(f)		1.49	^(f)		118

Institutional Class
Year ended 08/31/10		6.50		0.08	^(c)		(0.12	)		(0.04	)		(0.14	)		—			(0.14	)		6.32		(0.83	)		11,793		0.75	^(d)		0.91	^(d)		1.18	^(d)		71
Year ended 08/31/09		9.91		0.13	^(c)		(2.16	)		(2.03	)		(0.08	)		(1.30	)		(1.38	)		6.50		(18.32	)		22,128		0.41			0.89			2.10			77
Year ended 08/31/08		11.21		0.16	^(c)		(1.36	)		(1.20	)		(0.05	)		(0.05	)		(0.10	)		9.91		(10.79	)		29,374		0.50			1.57			1.59			118
Year ended 08/31/07		10.20		0.10	^(c)		1.10			1.20			(0.19	)		—			(0.19	)		11.21		11.85			942		0.77			6.55			0.92			79
Year ended 08/31/06^(e)		10.00		0.05			0.15			0.20			—			—			—			10.20		2.00			612		0.80	^(f)		10.14	^(f)		1.21	^(f)		25


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
^(c)		Calculated using average shares outstanding.
^(d)		Ratios are based on average daily net assets (000’s omitted) of $1,762, $195, $312, $1,020, $190, $84,480 and $20,148 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively.
^(e)		Commencement date of March 31, 2006 for Class A, Class B, Class C, Class R and Institutional Class shares. Commencement date for October 3, 2008 and April 25, 2008 for Class Y and Investor Class shares, respectively.
^(f)		Annualized.

22 Invesco Structured Core Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Structured Core Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Structured Core Fund (formerly known as AIM Structured Core Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

23 Invesco Structured Core Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	1,080.40	$	5.24	$	1,020.16	$	5.09		1.00	%

B		1,000.00		1,083.90		9.19		1,016.38		8.89		1.75

C		1,000.00		1,083.90		9.19		1,016.38		8.89		1.75

R		1,000.00		1,080.60		6.56		1,018.90		6.36		1.25

Y		1,000.00		1,078.70		3.93		1,021.42		3.82		0.75

Investor		1,000.00		1,078.70		5.24		1,020.16		5.09		1.00

Institutional		1,000.00		1,078.70		3.93		1,021.42		3.82		0.75


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

24 Invesco Structured Core Fund


	Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Structured Core Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Independent Written Fee Evaluation


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


B.	Fund Performance

25 Invesco Structured Core Fund

The Board noted that the Fund recently began operations and that only three calendar years of comparative performance data was available. The Board compared the Fund’s performance during the past one and three calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Large Cap Core Funds Index. The Board noted that the performance of Class A shares of the Fund was in the fifth quintile of its performance universe for the one year period and the fourth quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one and three year periods. Invesco Advisers advised the Board that the Fund was managed consistently with its mandate and that quantitative processes, such as those followed by the Fund, are typically challenged at market inflection points. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board noted that Invesco Advisers and Affiliated Sub-Advisers advise funds with comparable investment strategies in other jurisdictions; however, the Board did not consider comparisons of fees charged to those funds to be apt, as those fees may include more than investment management services.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provide to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

The Board noted that Invesco Advisers has contractually agreed to continue to waive fees and/or limit expenses of the Fund through at least December 31, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board considered the effect this fee waiver would have on the Fund’s total estimated expenses.

After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above, the advisory fee after fee waivers and expense limitations and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.


D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco

Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

26 Invesco Structured Core Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/ completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-09913 and 333-36074.


		SCOR-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Short-term market conditions can change from time to time, sometimes suddenly and sometimes dramatically. But regardless of market trends, our commitment to putting you fi rst, helping you achieve your financial objectives and providing you with excellent customer service will not change.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Structured Growth Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Structured Growth Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended August 31, 2010, Class A shares of Invesco Structured Growth Fund, at net asset value (NAV), lagged the Russell 1000 Growth Index and underperformed the Lipper Large-Cap Growth Funds Index. The Fund seeks to provide long-term growth of capital by investing, normally, at least 80% of its assets in a diversified portfolio of securities of large-cap companies.

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

Fund vs. Indexes


Class A Shares	-1.86	%

Class B Shares	-2.69

Class C Shares	-2.56

Class R Shares	-2.04

Class Y Shares	-1.67

Institutional Class Shares	-1.66

S&P 500 Index^▼ (Broad Market Index)	4.93

Russell 1000 Growth Index^▼(Style-Specific Index)	6.14

Lipper Large-Cap Growth Funds Index^▼ (Peer Group Index)	4.25


^▼		Lipper Inc.

How we invest

We manage your Fund to provide exposure to large-cap growth equity stocks. The portfolio strives to outperform the Russell 1000 Growth Index while minimizing the amount of additional risk relative to the benchmark. The Fund can be used as a long-term allocation to large cap stocks that complements other style-specific strategies within a diversified asset allocation strategy.

Our investment process integrates the following key steps:

n		Universe development

n		Stock rankings

n		Risk assessment

n		Portfolio construction

n		Trading

While the companies included in the Russell 1000 Growth Index are used as a general guide for developing the Fund’s investable universe, non-benchmark stocks may also be considered. Each stock in the universe is evaluated on four

factors: company earnings momentum, price trend, management action and relative valuation. The scores from these four factors are combined to arrive at an overall alpha score (excess return forecast) for each stock. Each alpha score is relative to the other securities within the same industry. Stocks are also evaluated on a multitude of other factors to develop a stock-specific risk forecast and transaction cost forecast.

monthly basis to determine which companies should be bought or sold.

In terms of risk management, we seek to minimize any style biases in the portfolio. Active managers typically add value in one of, or a combination of, four areas: beta bias (relative volatility), style bias, stock selection and sector/industry over- and underweight. We attempt to add value through our stock selection decisions. Consequently, our risk management process seeks to neutralize the Fund’s exposure relative to the benchmark with regard to beta, style and sector/industry exposures.

Market conditions and your Fund

Portfolio Composition

By sector


Information Technology	26.5	%

Consumer Discretionary	19.7

Health Care	15.0

Consumer Staples	11.7

Energy	10.3

Industrials	5.4

Materials	4.5

Utilities	2.6

Financials	1.6

Telecommunication Services	0.9

Money Market Funds, U.S. Treasury Bills Plus Other Assets Less Liabilities	1.8

Top 10 Equity Holdings*



1.	Exxon Mobil Corp.	6.1	%

2.	Microsoft Corp.	5.6

3.	International Business Machines Corp.	4.5

4.	Philip Morris International, Inc.	4.1

5.	Hewlett-Packard Co.	3.8

6.	Procter & Gamble Co.	3.7

7.	Ford Motor Co.	3.6

8.	UnitedHealth Group Inc.	3.5

9.	Johnson & Johnson	3.0

10.	Apple Inc.	3.0


Total Net Assets		$68.3 million

Total Number of Holdings*		75

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

*Excluding money market fund holdings.

Invesco Structured Growth Fund

more uncertain environment — prompting many investors to favor potential safety over risk. Although recent market volatility created challenges, it also created some investment opportunities as companies with positive fundamentals became more attractively valued.

All sectors in the Russell 1000 Growth Index — aside from energy, financials, health care and utilities — posted positive performance as equity markets rallied through the fi rst quarter of 2010 and in July 2010. All investment styles posted positive returns, with mid-cap stocks generally outperforming large-cap stocks and growth stocks generally outpacing value stocks for the period.

Regarding the results of the Invesco Structured Growth Fund, it’s important to understand our investment process to better evaluate the drivers of our relative performance versus the benchmark. We generally evaluate performance based on the effect of our stock selection and risk management process.

Our stock selection model, based on the four factors (company earnings momentum, price trend, management action and relative value) that make up our alpha (excess return) forecast for stocks in our investment universe, was a detractor from Fund performance. However, when selecting Fund holdings, we also take into account our risk and transaction cost forecasts. We use our optimization software to assist in making investment decisions, based on risk and transaction cost forecasts, as well as our alpha forecast. Consequently, while our stock selection model may identify a stock with an attractive alpha forecast, the optimizer may indicate that its transaction costs are too high and/or its risk level is unacceptable. Placing more of an emphasis on transaction costs and potential risk in making stock selections may benefit or detract from Fund performance. For the fiscal year, it augmented our results.

The sectors that generated positive returns included consumer staples and health care. Additionally, stock selection within the health care sector also benefited Fund performance versus the index. The consumer discretionary, industrials and information technology (IT) sectors detracted from overall performance.

From an individual stock perspective, Valeant Pharmaceuticals International was a top contributor within the health care sector. Valeant is a multinational specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products. In December 2009, the company acquired

Laboratoire Dr. Renaud and a related U.S. company, followed by the acquisition of Aton Pharma in May 2010. Valeant is no longer held by the Fund.

Fund holdings in the IT sector, such as Hewlett-Packard and Seagate Technology detracted from performance. Hewlett-Packard is a global provider of products, technologies and software solutions and services. Their clients range from individual consumers to small- and medium-sized businesses as well as large enterprises covering government, health and education sectors. In April 2010, the company completed its acquisition of 3Com, followed by the acquisition of Palm in July 2010. As of the end of the reporting period, the CEO of Hewlett-Packard resigned.

The Fund’s investment model underperformed the benchmark index due to the absence of an established trend in favor of our stock selection factors. During the reporting period, our model had limited predictive ability because our highest-ranked stocks underperformed our lowest-ranked stocks. The sharp sell-off in the stock market created particular challenges for our price trend model, since the positive trend established in March 2009 reversed significantly over the past few months. On a positive note, companies that were attractively priced based on earnings potential outperformed their peers in August, which partly offset weakness in the investment model. As part of implementing this strategy, the Fund may use derivatives, such as futures contracts to better manage our market exposure. The use of derivatives during the period was successful.

We welcome new investors who joined the Fund during the fiscal year and would like to thank all of our shareholders for your investment in Invesco Structured Growth Fund.

See important Fund and index disclosures later in this report.

Ralph Coutant

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Growth Fund. Mr. Coutant joined Invesco in 1999. He earned a B.S. in business administration from the University of New Hampshire.

Anthony Munchak

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Growth Fund. Mr. Munchak joined Invesco in 2000. He earned a B.S. and an M.S. in finance from Boston College and an M.B.A. from Bentley College.

Glen Murphy

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Growth Fund. Mr. Murphy joined Invesco in 1995. He earned a B.A. in business administration from the University of Massachusetts at Amherst and an M.S. in finance from Boston College.

Francis Orlando

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Growth Fund. Mr. Orlando began his investment career with Invesco in 1987. He earned a B.A. in business administration from Merrimack College and an M.B.A. from Boston University.

Anthony Shufflebotham

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Growth Fund. Mr. Shufflebotham joined Invesco in 1998. He earned a B.S. in economics, accounting and finance from Oxford Brookes University and an M.S. in finance from Boston College.

Invesco Structured Growth Fund



Average Annual Total Returns
As of 8/31/10, including maximum applicable sales charges

Class A Shares

Inception (3/31/06)	–5.88	%

1 Year	–7.23


Class B Shares

Inception (3/31/06)	–5.80	%

1 Year	–7.51


Class C Shares

Inception (3/31/06)	–5.38	%

1 Year	–3.53


Class R Shares

Inception (3/31/06)	–4.88	%

1 Year	–2.04


Class Y Shares

Inception	–4.59	%

1 Year	–1.67


Institutional Class Shares

Inception (3/31/06)	–4.42	%

1 Year	–1.66

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 1.01%, 1.76%, 1.76%, 1.26%, 0.76% and 0.75%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 1.50%, 2.25%,



Average Annual Total Returns
As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.

Class A Shares

Inception (3/31/06)	–5.94	%

1 Year	3.19


Class B Shares

Inception (3/31/06)	–5.82	%

1 Year	3.33


Class C Shares

Inception (3/31/06)	–5.39	%

1 Year	7.33


Class R Shares

Inception (3/31/06)	–4.90	%

1 Year	8.87


Class Y Shares

Inception	–4.59	%

1 Year	9.56


Institutional Class Shares

Inception (3/31/06)	–4.42	%

1 Year	9.55

2.25%, 1.75%, 1.25% and 0.86%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y and Institutional Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2010. See current prospectus for more information.

Invesco Structured Growth Fund

Invesco Structured Growth Fund’s investment objective is long-term growth of capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

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

Principal risks of investing in the Fund

n		The Fund may engage in frequent trading of portfolio securities, which may result in added expenses, lower return and increased tax liability.

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

n		The Fund may use enhanced investment techniques such as derivatives. The principal risk of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Derivatives are subject to counterparty risk — the risk that the other party will not complete the transaction with the Fund.

n		Prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

n		Growth stocks tend to be more expensive relative to their earnings or assets compared with other types of stock. As a result, they tend to be more sensitive to changes in their earnings and can be more volatile.

n		Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

n		Leveraging entails risks such as magnifying changes in the value of the portfolio’s securities.

n		The Fund may invest a large percentage of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.

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

n		The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

About indexes used in this report

n		The S&P 500^{^®} Index is an unmanaged index considered representative of the U.S. stock market.

n		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.

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

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

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

Other information

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

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

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		AASGX
Class B Shares		BASGX
Class C Shares		CASGX
Class R Shares		RASGX
Class Y Shares		AASYX
Institutional Class Shares		IASGX

Invesco Structured Growth Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks–98.21%
Agricultural Products–0.05%
Archer-Daniels-Midland Co.		1,100	$	33,858

Airlines–0.61%
Alaska Air Group, Inc.^(b)		9,400		415,762

Apparel Retail–1.86%
Collective Brands, Inc.^(b)		10,400		134,472

Gap, Inc. (The)		53,600		905,304

Limited Brands, Inc.		9,700		228,920

				1,268,696

Apparel, Accessories & Luxury Goods–0.23%
Jones Apparel Group, Inc.		10,200		156,876

Auto Parts & Equipment–2.94%
Federal-Mogul Corp.^(b)		2,000		30,590

TRW Automotive Holdings Corp.^(b)		57,000		1,981,320

				2,011,910

Automobile Manufacturers–3.59%
Ford Motor Co.^(b)		217,200		2,452,188

Biotechnology–2.72%
Amgen Inc.^(b)		34,700		1,771,088

PDL BioPharma Inc.		15,400		87,164

				1,858,252

Casinos & Gaming–0.39%
Las Vegas Sands Corp.^(b)		9,400		266,302

Communications Equipment–0.80%
InterDigital, Inc.^(b)		11,700		289,224

Tellabs, Inc.		35,900		254,890

				544,114

Computer Hardware–6.78%
Apple Inc.^(b)		8,450		2,056,476

Hewlett-Packard Co.		67,000		2,578,160

				4,634,636

Computer Storage & Peripherals–4.51%
Lexmark International, Inc.–Class A^(b)		14,200		496,858

SanDisk Corp.^(b)		43,400		1,442,616

Seagate Technology (Ireland)^(b)		113,000		1,144,690

				3,084,164

Construction & Engineering–0.35%
KBR, Inc.		5,200		120,640


	Shares
URS Corp.^(b)		3,300		117,711

				238,351

Construction, Farm Machinery & Heavy Trucks–2.44%
Joy Global Inc.		9,100		516,334

Oshkosh Corp.^(b)		46,300		1,151,944

				1,668,278

Consumer Electronics–2.36%
Garmin Ltd.		60,700		1,615,227

Consumer Finance–1.14%
American Express Co.		19,500		777,465

Department Stores–0.75%
Macy’s, Inc.		26,300		511,272

Diversified Metals & Mining–2.88%
Freeport-McMoRan Copper & Gold Inc.		7,700		554,246

Titanium Metals Corp.^(b)		77,900		1,411,548

				1,965,794

Education Services–0.53%
Career Education Corp.^(b)		20,500		359,365

Electrical Components & Equipment–0.08%
General Cable Corp.^(b)		2,500		55,625

Electronic Components–0.21%
Vishay Intertechnology, Inc.^(b)		18,900		145,341

Health Care Distributors–0.73%
Cardinal Health, Inc.		16,600		497,336

Homebuilding–1.45%
D.R. Horton, Inc.		63,300		649,458

Lennar Corp.–Class A		25,900		341,103

				990,561

Homefurnishing Retail–2.89%
Williams-Sonoma, Inc.		76,200		1,978,152

Household Products–3.70%
Procter & Gamble Co. (The)		42,400		2,530,008

Housewares & Specialties–0.41%
American Greetings Corp.–Class A		14,500		279,850

Hypermarkets & Super Centers–2.22%
Wal-Mart Stores, Inc.		30,200		1,514,228

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

9 Invesco Structured Growth Fund


	Shares		Value

Independent Power Producers & Energy Traders–2.59%
Constellation Energy Group Inc.		60,400	$	1,771,532

Industrial Conglomerates–1.44%
3M Co.		2,200		172,810

Carlisle Cos. Inc.		3,500		98,175

General Electric Co.		49,400		715,312

				986,297

Industrial Machinery–0.51%
Parker Hannifin Corp.		5,900		349,044

Integrated Oil & Gas–9.61%
Chevron Corp.		21,600		1,601,856

ConocoPhillips		15,800		828,394

Exxon Mobil Corp.		69,900		4,135,284

				6,565,534

Integrated Telecommunication Services–0.77%
AT&T Inc.		19,600		529,788

Internet Software & Services–1.08%
Akamai Technologies, Inc.^(b)		12,000		552,840

AOL Inc.^(b)		8,300		184,426

				737,266

IT Consulting & Other Services–4.49%
International Business Machines Corp.		24,900		3,068,427

Life & Health Insurance–0.18%
Prudential Financial, Inc.		2,400		121,368

Managed Health Care–6.11%
Health Net Inc.^(b)		18,900		451,332

Humana Inc.^(b)		27,700		1,323,783

UnitedHealth Group Inc.		75,600		2,398,032

				4,173,147

Movies & Entertainment–0.76%
Time Warner Inc.		17,400		521,652

Multi-Line Insurance–0.24%
Assurant, Inc.		4,400		160,864

Oil & Gas Equipment & Services–0.74%
National Oilwell Varco Inc.		13,400		503,706

Packaged Foods & Meats–0.08%
Tyson Foods, Inc.–Class A		3,300		54,054

Paper Packaging–0.33%
Temple-Inland Inc.		14,100		224,613

Paper Products–0.54%
MeadWestvaco Corp.		17,000		369,920

Pharmaceuticals–5.46%
Abbott Laboratories		1,000		49,340

Eli Lilly and Co.		35,100		1,177,956

Forest Laboratories, Inc.^(b)		16,200		442,098

Johnson & Johnson		36,100		2,058,422

				3,727,816

Publishing–0.88%
Gannett Co., Inc.		37,100		448,539

McGraw-Hill Cos., Inc. (The)		5,600		154,840

				603,379

Semiconductor Equipment–0.42%
Amkor Technology, Inc.^(b)		57,000		288,990

Semiconductors–2.61%
Intel Corp.		20,400		361,488

Micron Technology, Inc.^(b)		220,100		1,422,947

				1,784,435

Soft Drinks–1.60%
Coca-Cola Co. (The)		19,500		1,090,440

Specialized Consumer Services–0.66%
Sotheby’s		17,000		452,370

Specialty Chemicals–0.70%
W.R. Grace & Co.^(b)		18,900		478,170

Systems Software–5.62%
Microsoft Corp.		163,500		3,838,980

Tobacco–4.09%
Philip Morris International Inc.		54,400		2,798,336

Wireless Telecommunication Services–0.08%
Sprint Nextel Corp.^(b)		13,400		54,672

Total Common Stocks & Other Equity Interests (Cost $69,469,551)				67,108,411


	Principal
	Amount
U.S. Treasury Securities–0.46%
U.S. Treasury Bills–0.46%
0.08%, 09/16/10 (Cost $314,990)^(c)(d)	$	315,000	$	314,990

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

10 Invesco Structured Growth Fund

Statement of Changes in Net Assets

For the years ended August 31, 2010 and 2009


	August 31,			August 31,
	2010			2009

Operations:
Net investment income	$	726,054		$	1,391,749

Net realized gain (loss)		7,105,935			(46,347,281	)

Change in net unrealized appreciation (depreciation)		(7,654,254	)		4,889,892

Net increase (decrease) in net assets resulting from operations		177,735			(40,065,640	)

Distributions to shareholders from net investment income:
Class A		(31,729	)		(9,644	)

Class B		(2,785	)		—

Class C		(8,411	)		—

Class R		(474	)		(34	)

Class Y		(1,248	)		(853	)

Institutional Class		(1,221,174	)		(741,359	)

Total distributions from net investment income		(1,265,821	)		(751,890	)

Share transactions–net:
Class A		(861,414	)		(1,212,517	)

Class B		(77,427	)		(60,118	)

Class C		(350,515	)		(437,430	)

Class R		9,738			10,011

Class Y		24,772			104,995

Institutional Class		(15,808,835	)		(37,102,160	)

Net increase (decrease) in net assets resulting from share transactions		(17,063,681	)		(38,697,219	)

Net increase (decrease) in net assets		(18,151,767	)		(79,514,749	)

Net assets:
Beginning of year		86,480,012			165,994,761

End of year (includes undistributed net investment income of $704,863 and $1,244,630, respectively)	$	68,328,245		$	86,480,012

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

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

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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

14 Invesco Structured Growth Fund


		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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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.

15 Invesco Structured Growth Fund


D.		Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
J.		Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $250 million		0	.60%

Next $250 million		0	.575%

Next $500 million		0	.55%

Next $1.5 billion		0	.525%

Next $2.5 billion		0	.50%

Next $2.5 billion		0	.475%

Next $2.5 billion		0	.45%

Over $10 billion		0	.425%

16 Invesco Structured Growth Fund

Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

The Adviser has contractually agreed, through at least December 31, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit Total Annual Operating Expenses After Fee Waiver [and/or Expense Reimbursement] (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 1.00%, 1.75%, 1.75%, 1.25%, 0.75% and 0.75% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Total Annual Operating Expenses [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; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco Advisers, Inc. may terminate the fee waiver arrangement at any time.

The Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the year ended August 31, 2010, the Adviser waived advisory fees $112,377 and reimbursed class level expenses of $9,558, $1,241, $3,657, $168, $370 and $3,148 of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively.

At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the year ended August 31, 2010, Invesco Ltd. did not reimburse any expenses.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended August 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

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

NOTE 3—Additional Valuation Information


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

17 Invesco Structured Growth Fund


	Level 1			Level 2		Level 3		Total

Equity Securities	$	67,967,537		$	—	$	—	$	67,967,537

U.S. Treasury Securities		—			314,990		—		314,990

	$	67,967,537		$	314,990	$	—	$	68,282,527

Futures*		(27,546	)		—		—		(27,546	)

Total Investments	$	67,939,991		$	314,990	$	—	$	68,254,981


*	Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/ Derivative Type	Assets		Liabilities

Interest rate risk
Futures contracts^(a)	$	—	$	(27,546	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the year ended August 31, 2010

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


	Location of Gain on
	Statement of Operations
	Futures*

Realized Gain
Interest rate risk	$	146,935

Change in Unrealized Appreciation (Depreciation)
Interest rate risk		(108,803	)

Total	$	38,132


*	The average value of futures during the period was $1,309,413.

Open Futures Contracts

Unrealized

Number of

Month/

Appreciation

Contract

Contracts

Commitment

Value

(Depreciation)

Chicago Mercantile Exchange E-Mini S&P 500

September-2010/Long

1,048,300

(27,546

)

NOTE 5—Trustees’ and Officers’ Fees and Benefits

During the year ended August 31, 2010, the Fund paid legal fees of $2,916 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

18 Invesco Structured Growth Fund

NOTE 6—Cash Balances

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	1,265,821	$	751,890

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	719,042

Net unrealized appreciation (depreciation) — investments		(3,087,619	)

Temporary book/tax differences		(14,179	)

Post-October deferrals		(220,271	)

Capital loss carryforward		(43,951,177	)

Shares of beneficial interest		114,882,449

Total net assets	$	68,328,245

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2016	$	665,716

August 31, 2017		18,872,447

August 31, 2018		24,413,014

Total capital loss carryforward	$	43,951,177


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $81,259,266 and $98,682,675, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	3,596,898

Aggregate unrealized (depreciation) of investment securities		(6,684,517	)

Net unrealized appreciation (depreciation) of investment securities	$	(3,087,619	)

Cost of investments for tax purposes is $71,370,146.

19 Invesco Structured Growth Fund

NOTE 9—Share Information


	Summary of Share Activity

	Years ended August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Sold:
Class A		20,965		$	177,989			169,910		$	1,152,699

Class B		3,310			27,592			18,151			124,957

Class C		4,748			39,514			8,285			61,492

Class R		1,108			9,264			1,235			9,977

Class Y		4,571			37,590			42,748			327,844

Institutional Class		928,673			7,666,069			751,214			5,229,110

Issued as reinvestment of dividends:
Class A		3,701			31,123			1,449			9,419

Class B		316			2,624			—			—

Class C		931			7,712			—			—

Class R		56			474			5			34

Class Y		149			1,248			131			853

Institutional Class		145,205			1,221,175			114,055			741,359

Automatic conversion of Class B shares to Class A shares:
Class A		3,820			31,952			9,173			58,967

Class B		(3,887	)		(31,952	)		(9,301	)		(58,967	)

Reacquired:
Class A		(130,503	)		(1,102,478	)		(347,229	)		(2,433,602	)

Class B		(9,120	)		(75,691	)		(16,909	)		(126,108	)

Class C		(48,618	)		(397,741	)		(73,737	)		(498,922	)

Class Y		(1,610	)		(14,066	)		(33,695	)		(223,702	)

Institutional Class		(2,918,468	)		(24,696,079	)		(6,011,495	)		(43,072,629	)

Net increase (decrease) in share activity		(1,994,653	)	$	(17,063,681	)		(5,376,010	)	$	(38,697,219	)


^(a)		89% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco.

Note 10—Subsequent Event

On September 15, 2010, the Board of Trustees of the Trust approved a Plan of Liquidation, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to new investors on or about September 30, 2010. The liquidation is not subject to the approval of shareholders of the Funds. The Fund will be liquidated on or about October 29, 2010.

20 Invesco Structured Growth Fund

NOTE 11—Financial Highlights

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


																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset		Net			on securities						Dividends			Distributions													net assets			assets without			investment
	value,		investment			(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)^(a)			unrealized)			operations			income			gains			Distributions			of period		Return^(b)			(000s omitted)		absorbed			absorbed			net assets			turnover^(c)

Class A
Year ended 08/31/10	$	7.95	$	0.05		$	(0.19	)	$	(0.14	)	$	(0.12	)	$	—		$	(0.12	)	$	7.69		(1.86	)%	$	1,625		1.00	%^(d)		1.58	%^(d)		0.67	%^(d)		104	%
Year ended 08/31/09		10.20		0.09			(2.31	)		(2.22	)		(0.03	)		—			(0.03	)		7.95		(21.72	)		2,491		1.01			1.50			1.20			102
Year ended 08/31/08		11.45		0.04			(0.93	)		(0.89	)		(0.03	)		(0.33	)		(0.36	)		10.20		(8.25	)		4,894		1.00			1.18			0.37			119
Year ended 08/31/07		9.93		0.02			1.53			1.55			(0.02	)		(0.01	)		(0.03	)		11.45		15.63			7,481		1.01			1.29			0.17			91
Year ended 08/31/06^(e)		10.00		0.11			(0.18	)		(0.07	)		—			—			—			9.93		(0.70	)		862		1.03	^(f)		5.52	^(f)		2.57	^(f)		7

Class B
Year ended 08/31/10		7.82		(0.00	)		(0.20	)		(0.20	)		(0.08	)		—			(0.08	)		7.54		(2.69	)		217		1.75	^(d)		2.33	^(d)		(0.08	)^(d)		104
Year ended 08/31/09		10.05		0.03			(2.26	)		(2.23	)		—			—			—			7.82		(22.19	)		298		1.76			2.25			0.45			102
Year ended 08/31/08		11.35		(0.04	)		(0.93	)		(0.97	)		—			(0.33	)		(0.33	)		10.05		(8.98	)		465		1.75			1.93			(0.38	)		119
Year ended 08/31/07		9.90		(0.07	)		1.53			1.46			—			(0.01	)		(0.01	)		11.35		14.76			472		1.76			2.04			(0.58	)		91
Year ended 08/31/06^(e)		10.00		0.08			(0.18	)		(0.10	)		—			—			—			9.90		(1.00	)		662		1.78	^(f)		6.27	^(f)		1.82	^(f)		7

Class C
Year ended 08/31/10		7.81		(0.00	)		(0.19	)		(0.19	)		(0.08	)		—			(0.08	)		7.54		(2.56	)		617		1.75	^(d)		2.33	^(d)		(0.08	)^(d)		104
Year ended 08/31/09		10.05		0.03			(2.27	)		(2.24	)		—			—			—			7.81		(22.29	)		974		1.76			2.25			0.45			102
Year ended 08/31/08		11.35		(0.04	)		(0.93	)		(0.97	)		—			(0.33	)		(0.33	)		10.05		(8.98	)		1,911		1.75			1.93			(0.38	)		119
Year ended 08/31/07		9.90		(0.07	)		1.53			1.46			—			(0.01	)		(0.01	)		11.35		14.76			2,065		1.76			2.04			(0.58	)		91
Year ended 08/31/06^(e)		10.00		0.08			(0.18	)		(0.10	)		—			—			—			9.90		(1.00	)		599		1.78	^(f)		6.27	^(f)		1.82	^(f)		7

Class R
Year ended 08/31/10		7.94		0.04			(0.19	)		(0.15	)		(0.11	)		—			(0.11	)		7.68		(2.04	)		38		1.25	^(d)		1.83	^(d)		0.42	^(d)		104
Year ended 08/31/09		10.18		0.07			(2.30	)		(2.23	)		(0.01	)		—			(0.01	)		7.94		(21.88	)		30		1.26			1.75			0.95			102
Year ended 08/31/08		11.44		0.01			(0.94	)		(0.93	)		—			(0.33	)		(0.33	)		10.18		(8.55	)		26		1.25			1.43			0.12			119
Year ended 08/31/07		9.92		(0.01	)		1.54			1.53			(0.00	)		(0.01	)		(0.01	)		11.44		15.46			13		1.26			1.54			(0.08	)		91
Year ended 08/31/06^(e)		10.00		0.10			(0.18	)		(0.08	)		—			—			—			9.92		(0.80	)		595		1.28	^(f)		5.77	^(f)		2.32	^(f)		7

Class Y
Year ended 08/31/10		7.96		0.08			(0.20	)		(0.12	)		(0.14	)		—			(0.14	)		7.70		(1.67	)		95		0.75	^(d)		1.33	^(d)		0.92	^(d)		104
Year ended 08/31/09^(e)		8.05		0.08			(0.14	)		(0.06	)		(0.03	)		—			(0.03	)		7.96		(0.60	)		73		0.75			1.29			1.46			102

Institutional Class
Year ended 08/31/10		7.97		0.08			(0.20	)		(0.12	)		(0.14	)		—			(0.14	)		7.71		(1.66	)		65,736		0.75	^(d)		0.89	^(d)		0.92	^(d)		104
Year ended 08/31/09		10.23		0.10			(2.31	)		(2.21	)		(0.05	)		—			(0.05	)		7.97		(21.45	)		82,613		0.75			0.86			1.46			102
Year ended 08/31/08		11.48		0.07			(0.93	)		(0.86	)		(0.06	)		(0.33	)		(0.39	)		10.23		(7.99	)		158,699		0.73			0.73			0.64			119
Year ended 08/31/07		9.94		0.05			1.53			1.58			(0.03	)		(0.01	)		(0.04	)		11.48		15.93			163,313		0.75			0.89			0.43			91
Year ended 08/31/06^(e)		10.00		0.12			(0.18	)		(0.06	)		—			—			—			9.94		(0.60	)		86,898		0.77	^(f)		5.20	^(f)		2.83	^(f)		7


^(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)		Ratios are based on average daily net assets (000’s omitted) of $2,166, $281, $829, $38, $84 and $76,944 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively.
^(e)		Commencement date of March 31, 2006 for Class A, Class B, Class C, Class R and Institutional Class shares and October 3, 2008 for Class Y shares.
^(f)		Annualized.

21 Invesco Structured Growth Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Structured Growth Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Structured Growth Fund (formerly known as AIM Structured Growth Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

As discussed in Note 10 to the financial statements, on September 15, 2010, the Board of Trustees of the Trust approved a Plan of Liquidation, which authorizes the termination, liquidation and dissolution of the Fund.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

22 Invesco Structured Growth Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	906.80	$	4.81	$	1,020.16	$	5.09		1.00	%

B		1,000.00		903.00		8.39		1,016.38		8.89		1.75

C		1,000.00		904.10		8.40		1,016.38		8.89		1.75

R		1,000.00		906.70		6.01		1,018.90		6.36		1.25

Y		1,000.00		908.00		3.61		1,021.42		3.82		0.75

Institutional		1,000.00		906.80		3.61		1,021.42		3.82		0.75


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

23 Invesco Structured Growth Fund


	Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Structured Growth Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Independent Written Fee Evaluation


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


B.	Fund Performance

The Board noted that the Fund recently began operations and that only three calendar years of comparative performance data was available. The Board compared the Fund’s performance during the

24 Invesco Structured Growth Fund

past one and three calendar years to the performance of funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Large-Cap Growth Funds Index. The Board noted that the performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one year period and the fifth quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one and three year periods. Invesco Advisers advised the Board that the Fund was managed consistently with its mandate and that quantitative processes, such as those followed by the Fund, are typically challenged at market inflection points. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other mutual funds with investment strategies comparable to those of the Fund.


D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

25 Invesco Structured Growth Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


		SGRO-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Structured Value Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

-s- Bruce L. Crockett

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Structured Value Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended August 31, 2010, Class A shares of Invesco Structured Value Fund, at net asset value (NAV), lagged the Russell 1000 Value Index and underperformed the Lipper Large-Cap Value Funds Index. The Fund seeks to provide long-term growth of capital by investing, normally, at least 80% of its assets in a diversified portfolio of securities of large-cap companies.

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

Fund vs. Indexes


Class A Shares	1.13	%

Class B Shares	0.38

Class C Shares	0.38

Class R Shares	0.79

Class Y Shares	1.36

Institutional Class Shares	1.23

S&P 500 Index^▼ (Broad Market Index)	4.93

Russell 1000 Value Index^▼ (Style-Specific Index)	4.96

Lipper Large-Cap Value Funds Index^▼ (Peer Group Index)	2.65

^▼ Lipper Inc.

How we invest

We manage your Fund to provide exposure to large cap value equity stocks. The portfolio strives to outperform the Russell 1000 Value Index while minimizing the amount of additional risk relative to the benchmark. The Fund can be used as a long-term allocation to large-cap stocks that complements other style-specific strategies within a diversified asset allocation strategy.

Our investment process integrates the following key steps:

n		Universe development

n		Stock rankings

n		Risk assessment

n		Portfolio construction

n		Trading

While the companies included in the Russell 1000 Value Index are used as a general guide for developing the Fund’s investable universe, non-benchmark stocks may also be considered. Each stock in the universe is evaluated on four factors: company earnings momentum,

price trend, management action and relative valuation. The scores from these four factors are combined to arrive at an overall alpha score (excess return forecast) for each stock. Each alpha score is relative to the other securities within the same industry. Stocks are also evaluated on a multitude of other factors to develop a stock-specific risk forecast and transaction cost forecast.

In terms of risk management, we seek

to minimize any style biases in the portfolio. Active managers typically add value in one of, or a combination of, four areas: beta bias (relative volatility), style bias, stock selection and sector/industry over- and underweight. We attempt to add value through our stock selection decisions. Consequently, our risk management process seeks to neutralize the Fund’s exposure relative to the benchmark with regard to beta, style and sector/industry exposures.

Market conditions and your Fund

At the beginning of the 12-month period covered by this report, riskier assets outperformed securities considered safe havens, such as U.S. Treasury securities. This trend continued through the middle of April 2010. However, renewed credit problems overseas and the market correction that occurred in May and continued into August created a more uncertain environment – prompting many investors to favor potential safety over risk. Although recent market volatility created challenges, it also created some investment opportunities

Portfolio Composition

By sector


Financials	23.7	%

Health Care	16.1

Consumer Discretionary	15.4

Energy	11.8

Telecommunication Services	8.8

Information Technology	7.1

Utilities	4.9

Consumer Staples	4.4

Industrials	3.6

Materials	2.7

U.S. Treasury Bills, Money Market Funds Plus Other Assets Less Liabilities	1.5


Top 10 Equity Holdings*

1. AT&T Inc.	4.9	%

2. Chevron Corp.	4.5

3. Procter & Gamble Co.	3.6

4. Verizon Communications Inc.	3.2

5. Berkshire Hathaway Inc.	2.5

6. Chubb Corp.	2.4

7. Pfizer Inc.	2.3

8. ConocoPhillips	2.3

9. UnitedHealth Group Inc.	2.3

10. Microsoft Corp.	2.3


Total Net Assets	$59.1 million

Total Number of Holdings*		113

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

* Excluding money market fund holdings.

Invesco Structured Value Fund

as companies with positive fundamentals became more attractively valued.

All sectors in the Russell 1000 Value Index – aside from financials and information technology (IT) – posted positive performance for the reporting period as equity markets rallied through the first quarter of 2010 and in July 2010. All investment styles posted positive returns, with mid-cap stocks generally outperforming large-cap stocks and growth stocks generally outpacing value stocks for the period.¹

Regarding the results of Invesco Structured Value Fund, it’s important to understand our investment process to better evaluate the drivers of our relative performance versus the benchmark. We generally evaluate performance based on the effect of our stock selection and risk management process.

Our stock selection model, based on the four factors (company earnings momentum, price trend, management action and relative value) that make up our alpha (excess return) forecast for stocks in our investment universe, was a detractor from Fund performance. However, when selecting Fund holdings, we also take into account our risk and transaction cost forecasts. We use our optimization software to assist in making investment decisions, based on risk and transaction cost forecasts, as well as our alpha forecast. Consequently, while our stock selection model may identify a stock with an attractive alpha forecast, the optimizer may indicate that its transaction costs are too high and/or its risk level is unacceptable. Placing more of an emphasis on transaction costs and potential risk in making stock selections may benefit or detract from Fund performance. For the fiscal year, it augmented our results.

Stock selection within the financials, health care, information technology and materials sectors aided Fund performance versus the benchmark index. Holdings in the consumer discretionary, consumer staples, energy, industrials and utilities sectors detracted from overall Fund performance.

From an individual stock perspective, Ford, Gannett and Wyeth were top contributors to Fund performance. Wyeth is no longer held by the Fund. In August 2010, Ford completed the sale of its Swedish Volvo Car unit and related assets to China’s Zhejiang Geely Holding Group (not a Fund holding).

Detractors from Fund performance in the energy sector included Exxon Mobil and D.R. Horton in the consumer discretionary sector. D.R. Horton – a leading U.S. homebuilder – posted a second quarter profit that met Wall

Street’s expectations as buyers and builders both rushed to finalize deals before the federal homebuyer tax credit expired on June 30.

The Fund underperformed the benchmark index due to the absence of an established trend in favor of our stock selection factors. During the reporting period, our model had limited predictive ability because our highest-ranked stocks underperformed our lowest-ranked stocks. The sharp sell-off in the stock market created particular challenges for our price trend model, since the positive trend established in March 2009 reversed significantly over the past few months. On a positive note, companies that were attractively priced based on earnings potential outperformed their peers in August, which partly offset weakness in the investment model. As part of implementing this strategy, the Fund may use derivatives, such as futures contracts to better manage our market exposure. The use of derivatives during the period was successful.

We welcome new investors who joined the Fund during the fiscal year and would like to thank all of our shareholders for your investment in Invesco Structured Value Fund.

1 Lipper Inc.

See important Fund and index disclosures later in this report.

Ralph Coutant

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Value Fund. Mr. Coutant joined Invesco in 1999. He earned a B.S. in business administration from the University of New Hampshire.

Anthony Munchak

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Value Fund. Mr. Munchak joined Invesco in 2000. He earned a B.S. and an M.S. in finance from Boston College and an M.B.A. from Bentley College.

Glen Murphy

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Value Fund. Mr. Murphy joined Invesco in 1995. He earned a B.A. in business administration from the University of Massachusetts at Amherst and an M.S. in finance from Boston College.

Francis Orlando

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Value Fund. Mr. Orlando began his investment career with Invesco in 1987. He earned a B.A. in business administration from Merrimack College and an M.B.A. from Boston University.

Anthony Shufflebotham

Chartered Financial Analyst, portfolio manager, is manager of Invesco Structured Value Fund. Mr. Shufflebotham joined Invesco in 1998. He earned a B.S. in economics, accounting and finance from Oxford Brookes University and an M.S. in finance from Boston College.

Invesco Structured Value Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable
sales charges


Class A Shares

Inception (3/31/06)	-5.07	%

1 Year	-4.49


Class B Shares

Inception (3/31/06)	-4.99	%

1 Year	-4.57


Class C Shares

Inception (3/31/06)	-4.58	%

1 Year	-0.61


Class R Shares

Inception (3/31/06)	-4.10	%

1 Year	0.79


Class Y Shares

Inception	-3.76	%

1 Year	1.36


Institutional Class Shares

Inception (3/31/06)	-3.63	%

1 Year	1.23

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (3/31/06)	-5.68	%

1 Year	6.37


Class B Shares

Inception (3/31/06)	-5.56	%

1 Year	6.74


Class C Shares

Inception (3/31/06)	-5.17	%

1 Year	10.59


Class R Shares

Inception (3/31/06)	-4.67	%

1 Year	12.16


Class Y Shares

Inception	-4.35	%

1 Year	12.78


Institutional Class Shares

Inception (3/31/06)	-4.19	%

1 Year	12.77

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y and Institutional Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

Had the adviser not waived fees and/or reimbursed expenses on Class A, Class B, Class C, Class R and Class Y shares, performance would have been lower.

Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least December 31, 2011. See current prospectus for more information.

Invesco Structured Value Fund

Invesco Structured Value Fund’s investment objective is long-term growth of capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

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

Principal risks of investing in the Fund

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

n		The Fund may use enhanced investment techniques such as derivatives. The principal risk of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Derivatives are subject to counterparty risk – the risk that the other party will not complete the transaction with the Fund.

n		Prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

n		The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased

		liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

n		Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

n		Leveraging entails risks such as magnifying changes in the value of the portfolio’s securities.

n		The Fund may invest a large percentage of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.

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

n		Value stocks may react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. Value stocks tend to be inexpensive relative to their earnings or assets compared to other types of stocks and may never realize their full value. Value stocks tend to be currently out of favor with many investors.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

About indexes used in this report

n		The S&P 500^{^®} Index is an unmanaged index considered representative of the U.S. stock market.

n		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.

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

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

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

Other information

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

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

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		ASAVX
Class B Shares		ASBVX
Class C Shares		SBCVX
Class R Shares		ASRVX
Class Y Shares		ASAYX
Institutional Class Shares		ASIVX

Invesco Structured Value Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks & Other Equity Interests–98.53%
Airlines–0.34%
Alaska Air Group, Inc.^(b)		4,600	$	203,458

Apparel Retail–0.69%
Collective Brands, Inc.^(b)		12,800		165,504

Gap, Inc. (The)		14,200		239,838

				405,342

Apparel, Accessories & Luxury Goods–1.03%
Jones Apparel Group, Inc.		39,600		609,048

Asset Management & Custody Banks–0.39%
Bank of New York Mellon Corp.		9,400		228,138

Auto Parts & Equipment–1.93%
TRW Automotive Holdings Corp.^(b)		32,800		1,140,128

Automobile Manufacturers–1.95%
Ford Motor Co.^(b)		101,900		1,150,451

Biotechnology–2.40%
Amgen Inc.^(b)		24,000		1,224,960

PDL BioPharma Inc.		34,700		196,402

				1,421,362

Broadcasting–0.08%
CBS Corp.–Class B		3,400		46,988

Cable & Satellite–0.46%
Comcast Corp.–Class A		16,000		273,920

Coal & Consumable Fuels–0.09%
Peabody Energy Corp.		1,200		51,360

Communications Equipment–0.39%
InterDigital, Inc.^(b)		4,100		101,352

Tellabs, Inc.		18,400		130,640

				231,992

Computer & Electronics Retail–0.28%
Rent-A-Center, Inc.		8,200		164,656

Computer Hardware–0.12%
Hewlett-Packard Co.		1,800		69,264

Computer Storage & Peripherals–1.79%
Lexmark International, Inc.–Class A^(b)		22,300		780,277

SanDisk Corp.^(b)		8,400		279,216

				1,059,493

Construction, Farm Machinery & Heavy Trucks–1.55%
Joy Global Inc.		4,000		226,960

Oshkosh Corp.^(b)		27,800		691,664

				918,624

Consumer Electronics–0.86%
Garmin Ltd.		19,200		510,912

Consumer Finance–3.22%
American Express Co.		28,400		1,132,308

Capital One Financial Corp.		20,400		772,344

				1,904,652

Data Processing & Outsourced Services–0.37%
Visa Inc.–Class A		3,200		220,736

Department Stores–0.88%
Macy’s, Inc.		26,900		522,936

Diversified Banks–3.41%
U.S. Bancorp		34,300		713,440

Wells Fargo & Co.		55,400		1,304,670

				2,018,110

Diversified Metals & Mining–0.37%
Titanium Metals Corp.^(b)		12,000		217,440

Education Services–0.53%
Career Education Corp.^(b)		10,100		177,053

ITT Educational Services, Inc.^(b)		2,600		138,476

				315,529

Electric Utilities–2.93%
Edison International		14,100		475,875

Exelon Corp.		30,900		1,258,248

				1,734,123

Electronic Components–0.50%
Corning Inc.		13,800		216,384

Vishay Intertechnology, Inc.^(b)		10,000		76,900

				293,284

General Merchandise Stores–0.41%
Target Corp.		4,700		240,452

Gold–0.39%
Newmont Mining Corp.		3,800		233,016

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

9 Invesco Structured Value Fund


	Shares		Value

Health Care Distributors–1.96%
Cardinal Health, Inc.		31,000	$	928,760

McKesson Corp.		4,000		232,200

				1,160,960

Homebuilding–1.26%
D.R. Horton, Inc.		61,200		627,912

Lennar Corp.–Class A		8,900		117,213

				745,125

Homefurnishing Retail–0.73%
Williams-Sonoma, Inc.		16,600		430,936

Household Products–3.58%
Procter & Gamble Co. (The)		35,500		2,118,285

Housewares & Specialties–0.32%
American Greetings Corp.–Class A		9,900		191,070

Independent Power Producers & Energy Traders–1.99%
Constellation Energy Group Inc.		32,600		956,158

NRG Energy, Inc.^(b)		10,800		219,456

				1,175,614

Industrial Conglomerates–1.13%
Carlisle Cos. Inc.		4,000		112,200

General Electric Co.		38,200		553,136

				665,336

Industrial Machinery–0.55%
Parker Hannifin Corp.		5,500		325,380

Integrated Oil & Gas–10.52%
Chevron Corp.		36,000		2,669,760

ConocoPhillips		26,300		1,378,909

Exxon Mobil Corp.		20,100		1,189,116

Occidental Petroleum Corp.		13,400		979,272

				6,217,057

Integrated Telecommunication Services–8.14%
AT&T Inc.		107,600		2,908,428

Verizon Communications Inc.		64,600		1,906,346

				4,814,774

Internet Software & Services–0.19%
AOL Inc.^(b)		5,000		111,100

Investment Banking & Brokerage–0.63%
Goldman Sachs Group, Inc. (The)		2,700		369,738

IT Consulting & Other Services–0.40%
International Business Machines Corp.		1,900		234,137

Life & Health Insurance–1.93%
Aflac, Inc.		7,900		373,275

Lincoln National Corp.		4,800		112,128

Prudential Financial, Inc.		12,900		652,353

				1,137,756

Managed Health Care–5.52%
Aetna Inc.		3,800		101,536

CIGNA Corp.		1,800		57,996

Health Net Inc.^(b)		30,600		730,728

Humana Inc.^(b)		21,100		1,008,369

UnitedHealth Group Inc.		43,000		1,363,960

				3,262,589

Movies & Entertainment–1.68%
Time Warner Inc.		33,100		992,338

Multi-Line Insurance–1.32%
Assurant, Inc.		19,000		694,640

Genworth Financial Inc.–Class A^(b)		7,900		85,557

				780,197

Office Services & Supplies–0.04%
HNI Corp.		1,100		25,707

Oil & Gas Equipment & Services–1.19%
National-Oilwell Varco Inc.		18,000		676,620

Oil States International, Inc.^(b)		700		28,861

				705,481

Other Diversified Financial Services–2.64%
Bank of America Corp.		38,400		478,080

Citigroup Inc.^(b)		27,500		102,300

JPMorgan Chase & Co.		26,900		978,084

				1,558,464

Packaged Foods & Meats–0.71%
Tyson Foods, Inc.–Class A		25,600		419,328

Paper Packaging–0.23%
Temple-Inland Inc.		8,700		138,591

Paper Products–0.85%
Domtar Corp.		800		48,016

International Paper Co.		22,100		452,166

				500,182

Pharmaceuticals–6.22%
Abbott Laboratories		4,900		241,766

Eli Lilly and Co.		29,600		993,376

Forest Laboratories, Inc.^(b)		7,500		204,675

Johnson & Johnson		10,000		570,200

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

10 Invesco Structured Value Fund


	Shares		Value

Pharmaceuticals–(continued)

Merck & Co., Inc.		8,100	$	284,796

Pfizer Inc.		86,800		1,382,724

				3,677,537

Property & Casualty Insurance–6.96%
Berkshire Hathaway Inc.–Class B^(b)		18,500		1,457,430

Chubb Corp. (The)		25,100		1,383,512

Travelers Cos., Inc. (The)		23,100		1,131,438

XL Group PLC (Ireland)		8,000		143,280

				4,115,660

Publishing–1.92%
Gannett Co., Inc.		80,100		968,409

McGraw-Hill Cos., Inc. (The)		3,500		96,775

New York Times Co. (The)–Class A^(b)		5,300		38,054

Scholastic Corp.		1,300		30,459

				1,133,697

Regional Banks–1.47%
CIT Group, Inc.^(b)		4,900		179,732

Fifth Third Bancorp		8,300		91,715

Huntington Bancshares Inc.		6,900		36,501

KeyCorp		9,900		72,963

PNC Financial Services Group, Inc.		9,600		489,216

				870,127

Reinsurance–0.36%
Renaissance Re Holdings Ltd.		3,700		210,123

Residential REIT’s–1.15%
Equity Residential		14,800		678,284

Semiconductor Equipment–0.16%
Amkor Technology, Inc.^(b)		19,200		97,344

Semiconductors–0.92%
Intel Corp.		2,500		44,300

Micron Technology, Inc.^(b)		77,400		500,391

				544,691

Specialized Consumer Services–0.39%
Sotheby’s		8,600		228,846

Specialized REIT’s–0.19%
Hospitality Properties Trust		3,900		76,245

Ventas, Inc.		700		35,357

				111,602

Specialty Chemicals–0.45%
Cytec Industries Inc.		1,700		80,631

W.R. Grace & Co.^(b)		7,400		187,220

				267,851

Steel–0.45%
Reliance Steel & Aluminum Co.		2,900		108,025

Worthington Industries, Inc.		11,100		157,842

				265,867

Systems Software–2.30%
Microsoft Corp.		57,800		1,357,144

Tobacco–0.07%
Altria Group, Inc.		1,800		40,176

Wireless Telecommunication Services–0.64%
Sprint Nextel Corp.^(b)		92,400		376,992

Total Common Stocks & Other Equity Interests (Cost $59,151,766)				58,241,500


	Principal
	Amount
U.S. Treasury Securities–0.45%
U.S. Treasury Bills–0.45%
0.08%, 09/16/10 (Cost $264,991)^(d)	$	265,000		264,991


	Shares
Money Market Funds–0.87%
Liquid Assets Portfolio–Institutional Class^(c)		256,778		256,778

Premier Portfolio–Institutional Class^(c)		256,778		256,778

Total Money Market Funds (Cost $513,556)				513,556

TOTAL INVESTMENTS–99.85% (Cost $59,930,313)				59,020,047

OTHER ASSETS LESS LIABILITIES–0.15%				87,423

NET ASSETS–100.00%			$	59,107,470

Investment Abbreviations:


ADR		– American Depositary Receipt
REIT		– Real Estate Investment Trust

Notes to Schedule of Investments:


^(a)		Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
^(b)		Non-income producing security.
^(c)		The money market fund and the Fund are affiliated by having the same investment adviser.
^(d)		All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4.

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

11 Invesco Structured Value Fund

Statement of Changes in Net Assets

For the years ended August 31, 2010 and 2009


	August 31,			August 31,
	2010			2009

Operations:
Net investment income	$	1,037,752		$	1,933,513

Net realized gain (loss)		2,842,751			(34,267,689	)

Change in net unrealized appreciation (depreciation)		(1,967,311	)		6,142,080

Net increase (decrease) in net assets resulting from operations		1,913,192			(26,192,096	)

Distributions to shareholders from net investment income:
Class A		(35,323	)		(70,369	)

Class B		(8,949	)		(13,013	)

Class C		(3,046	)		(3,568	)

Class R		(831	)		(418	)

Class Y		(2,010	)		(5,073	)

Institutional Class		(1,451,015	)		(2,408,982	)

Total distributions from net investment income		(1,501,174	)		(2,501,423	)

Share transactions–net:
Class A		163,653			(1,417,556	)

Class B		9,458			(361,809	)

Class C		(53,496	)		67,296

Class R		17,291			23,234

Class Y		(40,125	)		117,368

Institutional Class		(15,648,083	)		(35,132,527	)

Net increase (decrease) in net assets resulting from share transactions		(15,551,302	)		(36,703,994	)

Net increase (decrease) in net assets		(15,139,284	)		(65,397,513	)

Net assets:
Beginning of year		74,246,754			139,644,267

End of year (includes undistributed net investment income of $979,696 and $1,443,118, respectively)	$	59,107,470		$	74,246,754

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

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

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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

14 Invesco Structured Value Fund


		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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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.

15 Invesco Structured Value Fund


D.		Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
J.		Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $250 million		0	.60%

Next $250 million		0	.575%

Next $500 million		0	.55%

Next $1.5 billion		0	.525%

Next $2.5 billion		0	.50%

Next $2.5 billion		0	.475%

Next $2.5 billion		0	.45%

Over $10 billion		0	.425%

16 Invesco Structured Value Fund

Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

The Adviser has contractually agreed, through at least December 31, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit Total Annual Operating Expenses After Fee Waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 1.00%, 1.75%, 1.75%, 1.25%, 0.75% and 0.75% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Total Annual Operating Expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on December 31, 2011.

For the year ended August 31, 2010, the Adviser waived advisory fees $133,840 and reimbursed class level expenses of $7,113, $1,965, $905, $188, $357, and $3,230 of Class A, Class B, Class C, Class R, Class Y, and Institutional Class shares, respectively.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended August 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

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

NOTE 3—Additional Valuation Information


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

17 Invesco Structured Value Fund


	Level 1			Level 2		Level 3		Total

Equity Securities	$	58,755,056		$	—	$	—	$	58,755,056

U.S. Treasury Securities		—			264,991		—		264,991

	$	58,755,056		$	264,991	$	—	$	59,020,047

Futures**		(18,235	)		—		—		(18,235	)

Total Investments	$	58,736,821		$	264,991	$	—	$	59,001,812


**	Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/Derivative Type	Assets		Liabilities

Market risk
Futures contracts^(a)	$	—	$	(18,235	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the year ended August 31, 2010

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


	Location of Gain (Loss) on
	Statement of Operations
	Futures*

Realized Gain (Loss)
Market risk	$	118,399

Change in Unrealized Appreciation (Depreciation)
Market risk		(90,465	)

Total	$	27,934


*	The average value of futures outstanding during the period was $1,223,623.

Open Futures Contracts

Unrealized

Number of

Month/

Appreciation

Contract

Contracts

Commitment

Value

(Depreciation)

E-Mini S&P 500

September-2010/Long

681,395

(18,235

)

NOTE 5—Trustees’ and Officers’ Fees and Benefits

During the year ended August 31, 2010, the Fund paid legal fees of $2,889 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

18 Invesco Structured Value Fund

NOTE 6—Cash Balances

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	1,501,174	$	2,501,423

Total distributions	$	1,501,174	$	2,501,423

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	992,651

Net unrealized appreciation (depreciation) — investments		(2,007,163	)

Temporary book/tax differences		(12,955	)

Post-October deferrals		(906,749	)

Capital loss carryforward		(45,000,441	)

Shares of beneficial interest		106,042,127

Total net assets	$	59,107,470

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2016	$	430,774

August 31, 2017		20,885,835

August 31, 2018		23,683,832

Total capital loss carryforward	$	45,000,441


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $62,575,866 and $78,417,497, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	3,950,018

Aggregate unrealized (depreciation) of investment securities		(5,957,181	)

Net unrealized appreciation (depreciation) of investment securities	$	(2,007,163	)

Cost of investments for tax purposes is $61,027,210.

19 Invesco Structured Value Fund

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, undistributed net realized gain (loss) was decreased by $2 and shares of beneficial interest increased by $2. This reclassification had no effect on the net assets of the Fund.

NOTE 10—Share Information


	Summary of Share Activity

	Years ended August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Sold:
Class A		96,969		$	811,133			130,514		$	879,263

Class B		36,654			304,387			36,712			245,248

Class C		4,910			41,496			23,865			173,244

Class R		2,193			18,044			5,096			41,323

Class Y		550			4,515			28,662			239,041

Institutional Class		718,390			5,900,210			686,674			4,780,084

Issued as reinvestment of dividends:
Class A		4,171			34,580			10,273			70,309

Class B		1,038			8,597			1,816			12,474

Class C		360			2,981			509			3,504

Class R		100			831			61			418

Class Y		242			2,010			739			5,073

Institutional Class		175,032			1,451,016			351,163			2,408,982

Automatic conversion of Class B shares to Class A shares:
Class A		7,037			58,846			13,879			95,812

Class B		(7,068	)		(58,846	)		(13,941	)		(95,812	)

Reacquired:
Class A		(89,251	)		(740,906	)		(370,317	)		(2,462,940	)

Class B		(29,383	)		(244,680	)		(79,923	)		(523,719	)

Class C		(11,976	)		(97,973	)		(16,009	)		(109,452	)

Class R		(202	)		(1,584	)		(2,546	)		(18,507	)

Class Y		(5,735	)		(46,650	)		(16,187	)		(126,746	)

Institutional Class		(2,763,287	)		(22,999,309	)		(5,929,928	)		(42,321,593	)

Net increase (decrease) in share activity		(1,859,256	)	$	(15,551,302	)		(5,138,888	)	$	(36,703,994	)


^(a)		88% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco.

Effective November 30, 2010, all Invesco Funds will be closing their Class B shares. Shareholders with investments in Class B shares may continue to hold such shares until they convert to Class A shares, but no additional investments will be accepted in Class B shares on or after November 30, 2010. Any dividends or capital gains distributions may continue to be reinvested in Class B shares until conversion. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert.

Note 11—Subsequent Event

20 Invesco Structured Value Fund

NOTE 12—Financial Highlights

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


																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net			Ratio of net
	Net asset		Net		(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		investment		securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		income		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)^(a)		unrealized)			operations			income			gains			Distributions			of period		Return^(b)			(000s omitted)		absorbed			absorbed			net assets			turnover^(c)

Class A
Year ended 08/31/10	$	7.83	$	0.11	$	(0.01	)	$	0.10		$	(0.17	)	$	—		$	(0.17	)	$	7.76		1.13	%	$	1,796		0.99	%^(d)		1.57	%^(d)		1.27	%^(d)		93	%
Year ended 08/31/09		9.54		0.14		(1.68	)		(1.54	)		(0.17	)		—			(0.17	)		7.83		(15.87	)		1,665		1.01			1.61			1.96			78
Year ended 08/31/08		11.40		0.16		(1.70	)		(1.54	)		(0.11	)		(0.21	)		(0.32	)		9.54		(13.83	)		4,088		1.01			1.42			1.57			88
Year ended 08/31/07		10.44		0.14		0.89			1.03			(0.06	)		(0.01	)		(0.07	)		11.40		9.80			2,011		1.01			1.36			1.17			62
Year ended 08/31/06^(e)		10.00		0.20		0.24			0.44			—			—			—			10.44		4.40			856		1.03	^(f)		5.80	^(f)		4.59	^(f)		5

Class B
Year ended 08/31/10		7.79		0.05		(0.01	)		0.04			(0.12	)		—			(0.12	)		7.71		0.38			420		1.74	^(d)		2.32	^(d)		0.52	^(d)		93
Year ended 08/31/09		9.50		0.09		(1.68	)		(1.59	)		(0.12	)		—			(0.12	)		7.79		(16.60	)		415		1.76			2.36			1.21			78
Year ended 08/31/08		11.35		0.08		(1.70	)		(1.62	)		(0.02	)		(0.21	)		(0.23	)		9.50		(14.50	)		1,031		1.76			2.17			0.82			88
Year ended 08/31/07		10.40		0.05		0.91			0.96			—			(0.01	)		(0.01	)		11.35		9.20			718		1.76			2.11			0.42			62
Year ended 08/31/06^(e)		10.00		0.16		0.24			0.40			—			—			—			10.40		4.00			790		1.78	^(f)		6.55	^(f)		3.84	^(f)		5

Class C
Year ended 08/31/10		7.79		0.05		(0.01	)		0.04			(0.12	)		—			(0.12	)		7.71		0.38			204		1.74	^(d)		2.32	^(d)		0.52	^(d)		93
Year ended 08/31/09		9.49		0.08		(1.66	)		(1.58	)		(0.12	)		—			(0.12	)		7.79		(16.51	)		258		1.76			2.36			1.21			78
Year ended 08/31/08		11.33		0.08		(1.69	)		(1.61	)		(0.02	)		(0.21	)		(0.23	)		9.49		(14.43	)		235		1.76			2.17			0.82			88
Year ended 08/31/07		10.40		0.05		0.89			0.94			—			(0.01	)		(0.01	)		11.33		9.01			156		1.76			2.11			0.42			62
Year ended 08/31/06^(e)		10.00		0.16		0.24			0.40			—			—			—			10.40		4.00			632		1.78	^(f)		6.55	^(f)		3.84	^(f)		5

Class R
Year ended 08/31/10		7.82		0.08		(0.01	)		0.07			(0.15	)		—			(0.15	)		7.74		0.79			51		1.24	^(d)		1.82	^(d)		1.02	^(d)		93
Year ended 08/31/09		9.52		0.12		(1.67	)		(1.55	)		(0.15	)		—			(0.15	)		7.82		(16.01	)		35		1.26			1.86			1.71			78
Year ended 08/31/08		11.38		0.13		(1.70	)		(1.57	)		(0.08	)		(0.21	)		(0.29	)		9.52		(14.08	)		18		1.26			1.67			1.32			88
Year ended 08/31/07		10.42		0.11		0.90			1.01			(0.04	)		(0.01	)		(0.05	)		11.38		9.65			10		1.26			1.61			0.92			62
Year ended 08/31/06^(e)		10.00		0.18		0.24			0.42			—			—			—			10.42		4.20			625		1.28	^(f)		6.05	^(f)		4.34	^(f)		5

Class Y
Year ended 08/31/10		7.84		0.13		(0.01	)		0.12			(0.19	)		—			(0.19	)		7.77		1.36			64		0.74	^(d)		1.32	^(d)		1.52	^(d)		93
Year ended 08/31/09^(e)		8.34		0.14		(0.46	)		(0.32	)		(0.18	)		—			(0.18	)		7.84		(3.57	)		104		0.76	^(d)(f)		1.45	^(d)(f)		2.21	^(d)(f)		78

Institutional Class
Year ended 08/31/10		7.85		0.13		(0.02	)		0.11			(0.19	)		—			(0.19	)		7.77		1.23			56,572		0.75	^(d)		0.95	^(d)		1.51	^(d)		93
Year ended 08/31/09		9.56		0.15		(1.67	)		(1.52	)		(0.19	)		—			(0.19	)		7.85		(15.59	)		71,770		0.75			0.87			2.22			78
Year ended 08/31/08		11.43		0.19		(1.71	)		(1.52	)		(0.14	)		(0.21	)		(0.35	)		9.56		(13.64	)		134,272		0.75			0.78			1.83			88
Year ended 08/31/07		10.45		0.17		0.89			1.06			(0.07	)		(0.01	)		(0.08	)		11.43		10.13			134,931		0.75			0.94			1.43			62
Year ended 08/31/06^(e)		10.00		0.21		0.24			0.45			—			—			—			10.45		4.50			73,488		0.77	^(f)		5.50	^(f)		4.85	^(f)		5


^(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)		Ratios are annualized and based on average daily net assets (000’s omitted) of $1,850, $511, $235, $93, $49, and $66,452 for Class A, Class B, Class C, Class R, Class Y, and Institutional Class shares, respectively.
^(e)		Commencement date of March 31, 2006 for Class A. Class B, Class C, Class R and Institutional Class Shares and October 3, 2008 for Class Y shares.
^(f)		Annualized.

21 Invesco Structured Value Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Structured Value Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Structured Value Fund (formerly known as AIM Structured Value Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

As discussed in Note 11 to the financial statements, on September 15, 2010, the Board of Trustees of the Trust approved a Plan of Liquidation, which authorizes the termination, liquidation and dissolution of the Fund.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

22 Invesco Structured Value Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	940.60	$	4.89	$	1,020.16	$	5.09		1.00	%

B		1,000.00		936.80		8.54		1,016.38		8.89		1.75

C		1,000.00		936.80		8.54		1,016.38		8.89		1.75

R		1,000.00		939.30		6.11		1,018.90		6.36		1.25

Y		1,000.00		940.70		3.67		1,021.42		3.82		0.75

Institutional		1,000.00		940.70		3.67		1,021.42		3.82		0.75


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

23 Invesco Structured Value Fund


	Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Structured Value Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Independent Written Fee Evaluation


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

24 Invesco Structured Value Fund


B.	Fund Performance

The Board noted that the Fund recently began operations and that only three calendar years of comparative performance data was available. The Board compared the Fund’s performance during the past one and three calendar years to the performance of funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Large-Cap Value Funds Index. The Board noted that the performance of Class A shares of the Fund was in the third quintile of its performance universe for the one and three year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one and three year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other mutual funds or client accounts in a manner substantially similar to the management of the Fund.


D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

25 Invesco Structured Value Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


SVAL-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Van Kampen American Franchise Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Van Kampen American Franchise Fund

Management’s Discussion of Fund Performance

Performance summary

As part of Invesco’s June 1, 2010, acquisition of Morgan Stanley’s retail asset management business, Van Kampen American Franchise Fund was reorganized into Invesco Van Kampen American Franchise Fund.

On June 25, 2010, Erik Voss and Ido Cohen replaced the existing Fund management team. A listing of your Fund’s managers appears later in this report.

For the fiscal year ended August 31, 2010, Invesco Van Kampen American Franchise Fund at net asset value had positive double-digit returns and outperformed the Fund’s benchmark, the S&P 500 Index. Outperformance was driven primarily by stock selection in several sectors.

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

Fund vs. Indexes


Class A Shares	11.75	%

Class B Shares	10.89

Class C Shares	11.02

Class Y Shares	11.95

S&P 500 Index^▼ (Broad Market Index)	4.93

Russell 1000 Growth Index^▼ (Style-Specific Index)	6.14


^▼		Lipper Inc.

How we invest

We believe a growth investment strategy is an essential component of a diversified portfolio.

Our investment process emphasizes rigorous bottom-up analysis of individual companies. We seek to invest in companies with strong or improving fundamentals, attractive valuation relative to growth prospects and earnings expectations that appear fair to conservative.

To narrow our investment universe, we utilize a holistic approach that emphasizes fundamental research and, to a lesser extent, includes quantitative analysis. At the end of this distillation process, we have a set of stocks to analyze in greater depth.

Our fundamental analysis focuses on identifying companies with strong drivers of growth. To accomplish this goal, we

conduct rigorous bottom-up analysis to develop higher conviction in each company’s prospects for growth. Through our analysis, we develop a mosaic of each company through detailed discussions with company management teams, competitors, distributors, suppliers, Wall Street analysts and customers. We also utilize a variety of valuation techniques based on the company in question, the industry in which the company operates, the stage of the business cycle and other factors that best reflect a company’s value.

Risk management plays an important role in portfolio construction, as our target portfolio attempts to maximize the relationship between risk and return. We seek to accomplish this goal by investing in companies with attractive fundamental prospects for growth and we divide the

portfolio between stable growth stocks and catalyst-driven stocks.

We consider selling a stock for any of the following reasons:

n		The price target set at purchase has been reached.

n		There is deterioration in fundamentals.

n		The catalysts for growth are no longer present or are reflected in the stock price.

n		There is a more attractive investment opportunity.

Market conditions and your Fund

The U.S. economy provided signs of improvement during the Fund’s fiscal year, potentially indicating that the economy had transitioned from a contraction phase into an expansionary phase. Nevertheless, the pace of recovery remained modest, and the transition from government stimulus-induced growth to private economic recovery was uncertain.

The U.S. Federal Reserve’s federal funds target rate remained low, ranging from zero to 0.25%.¹ Real gross domestic product (GDP) registered positive growth during the reporting period, with annualized increases of 5.0%, 3.7% and 1.7% for the fourth quarter of 2009, and the first and second quarters of 2010, respectively.² Inflation, measured by the seasonally-adjusted Consumer Price Index (CPI), remained relatively benign. While labor markets improved as layoffs moderated, new hiring remained quite weak. Unemployment, after climbing steadily throughout 2009, fell slightly during the first half of 2010 to a rate of 9.6% nationwide as of August 2010.³

Against this backdrop, financial services, energy and health care were among the weakest performing sectors of the S&P 500 Index. Conversely, consumer discretionary, industrials and telecommunication services were the best performing sectors.

Portfolio Composition

By sector


Information Technology	30.1	%

Consumer Discretionary	14.3

Health Care	13.1

Industrials	11.2

Energy	9.0

Materials	5.9

Financials	4.6

Consumer Staples	2.3

Telecommunication Services	1.7

Money Market Funds Plus Other Assets Less Liabilities	7.8


Total Net Assets	$217.4 million

Total Number of Holdings*		62

Top 10 Equity Holdings*


1. Apple, Inc.	6.8	%

2. EMC Corp.	2.7

3. Exxon Mobil Corp.	2.5

4. Union Pacific Corp.	2.4

5. Mead Johnson Nutrition Co.	2.3

6. Barrick Gold Corp.	2.2

7. Baidu, Inc.	2.2

8. Comcast Corp.	2.2

9. Goodrich Corp.	2.1

10. Abbott Laboratories	2.1

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

Invesco Van Kampen American Franchise Fund

The Fund at NAV had double-digit absolute returns and outperformed the S&P 500 Index during the reporting period. The Fund outperformed the index by the widest margins in the consumer discretionary, financials, information technology (IT) and health care sectors. Outperformance in each of these sectors was driven largely by stock selection.

The Fund outperformed the S&P 500 Index most significantly in the consumer discretionary sector, driven by stock selection and an overweight position. Examples of holdings that made key contributions to performance included Starbucks and Internet retailer Amazon.com.

Outperformance in the financials sector was driven primarily by stock selection. In this sector, holdings that contributed to the Fund’s performance included Berkshire Hathaway, diversified financial services holding American Express and real estate services firm Brookfield Asset Management. An underweight position in the sector also contributed to performance. The Fund’s position in Brookfield Asset Management was sold during the reporting period.

In the IT sector, Apple was the leading contributor to Fund performance during the reporting period. Apple continued to benefit from strong growth in revenue and earnings, driven by solid demand for the iPhone as well as the successful launch of the new iPad hand-held computer. Other holdings that contributed to performance in this sector included Redecard and customer relationship software maker Salesforce.com. The Fund’s position in Redecard was sold during the reporting period.

The Fund’s outperformance in the health care sector was largely due to stock selection. In this sector, one of the leading contributors to outperformance was pharmaceutical research and services provider Millipore. Eye care products maker Alcon was also a key contributor to Fund performance. The Fund’s position in Millipore was sold during the reporting period.

Some of the Fund’s outperformance was offset by underperformance in other sectors, including energy, materials and industrials. The Fund underperformed by the widest margin in the energy sector, driven by stock selection. In this sector, examples of holdings that detracted from performance included Schlumberger, Occidental Petroleum and EOG Resources. In the materials sector, the leading detractor from Fund performance was cement maker Cemex. The Fund’s

position in Cemex was sold during the reporting period. Underperformance in the industrials sector was due to an underweight position. Additionally, industrial and commercial products maker Ingersoll-Rand was one of the key detractors from Fund performance in this sector.

As we’ve discussed, the stock market experienced volatile performance during the reporting period. We would like to caution investors against making investment decisions based on short-term performance. As always, we recommend that you consult a financial adviser to discuss your individual financial program.

We thank you for your commitment to Invesco Van Kampen American Franchise Fund.

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

See important Fund and index disclosures later in this report.

Erik Voss
Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Van Kampen American Franchise Fund. He joined Invesco in 2010. Mr. Voss earned a B.S. in mathematics and an M.S. in applied sciences program in finance, both from the University of Wisconsin.

Ido Cohen
Portfolio manager, is manager of Invesco Van Kampen American Franchise Fund. He joined Invesco in 2010. Mr. Cohen is a cum laude graduate of The Wharton School of the University of Pennsylvania with a B.S. in economics.

Invesco Van Kampen American Franchise Fund

Average Annual Total Returns
As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (6/23/05)	0.93	%

5 Years	0.62

1 Year	5.57


Class B Shares

Inception (6/23/05)	1.07	%

5 Years	0.63

1 Year	5.89


Class C Shares

Inception (6/23/05)	1.28	%

5 Years	1.03

1 Year	10.02


ClassY Shares

Inception (6/23/05)	2.28	%

5 Years	2.04

1 Year	11.95

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen American Franchise Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen American Franchise Fund. Share class returns will differ from the predecessor fund because of different expenses.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.35%, 2.10%, 2.10% and 1.10%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B,

Average Annual Total Returns
As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges


Class A Shares

Inception (6/23/05)	0.80	%

5 Years	0.97

1 Year	18.74


Class B Shares

Inception (6/23/05)	0.98	%

5 Years	1.01

1 Year	19.90


Class C Shares

Inception (6/23/05)	1.18	%

5 Years	1.39

1 Year	23.90


Class Y Shares

Inception (6/23/05)	2.19	%

5 Years	2.38

1 Year	26.03

Class C and Class Y shares was 1.41%, 2.16%, 2.16% and 1.16%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco Van Kampen American Franchise Fund

Invesco Van Kampen American Franchise Fund’s investment objective is to seek long-term capital appreciation.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and foreign taxation issues.

The Fund is non-diversified and invests a greater portion of its assets in a more limited number of issuers than a diversified fund and, as a result, is subject to a greater risk than a diversified fund because changes in the financial condition or market assessment of a single issuer may cause greater fluctuations in the value of the Fund’s shares.

Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid.

Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

About indexes used in this report

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

Other information

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		VAFAX
Class B Shares		VAFBX
Class C Shares		VAFCX
Class Y Shares		VAFIX

Invesco Van Kampen American Franchise Fund

Schedule of Investments

August 31, 2010


	Shares		Value

Common Stocks–92.2%
Aerospace & Defense–2.1%
Goodrich Corp.		67,620	$	4,630,618

Agricultural Products–0.8%
Bunge Ltd. (Bermuda)		31,666		1,678,298

Air Freight & Logistics–2.0%
C.H. Robinson Worldwide, Inc.		40,486		2,631,185

Expeditors International of Washington, Inc.		44,054		1,744,098

				4,375,283

Airlines–1.3%
Continental Airlines, Inc., Class B^(a)		127,620		2,851,031

Apparel Retail–3.8%
Limited Brands, Inc.		175,605		4,144,278

Ross Stores, Inc.		85,011		4,219,096

				8,363,374

Application Software–1.7%
Salesforce.com, Inc.^(a)		34,153		3,752,732

Asset Management & Custody Banks–0.8%
Ameriprise Financial, Inc.		38,739		1,688,246

Biotechnology–1.5%
Gilead Sciences, Inc.^(a)		103,171		3,287,028

Broadcasting & Cable TV–2.2%
Comcast Corp., Class A		277,040		4,742,925

Broadcasting–Diversified–2.1%
DIRECTV, Class A^(a)		63,467		2,406,669

Time Warner Cable, Inc.		42,749		2,206,276

				4,612,945

Casinos & Gaming–1.3%
Las Vegas Sands Corp.^(a)		101,385		2,872,237

Communications Equipment–1.8%
Cisco Systems, Inc.^(a)		197,549		3,960,857

Computer Hardware–8.9%
Apple, Inc.^(a)		60,813		14,800,060

International Business Machines Corp.		36,454		4,492,226

				19,292,286

Computer Storage & Peripherals–2.7%
EMC Corp.^(a)		324,060		5,910,854

Construction & Farm Machinery & Heavy Trucks–2.0%
Deere & Co.		67,450		4,267,561

Consumer Finance–1.7%
American Express Co.		91,222		3,637,021

Data Processing & Outsourced Services–1.7%
Visa, Inc., Class A		54,155		3,735,612

Fertilizers & Agricultural Chemicals–3.7%
Monsanto Co.		78,301		4,122,547

Mosaic Co.		68,189		3,999,967

				8,122,514

Food Retail–0.0%
Tesco PLC (United Kingdom)		17,992		112,291

General Merchandise Stores–1.1%
Dollar Tree, Inc.^(a)		53,345		2,418,129

Gold–2.2%
Barrick Gold Corp. (Canada)^(b)		102,095		4,773,962

Health Care Equipment–1.6%
Edwards Lifesciences Corp.^(a)		26,073		1,501,023

Hospira, Inc.^(a)		38,972		2,001,602

				3,502,625

Health Care Services–1.1%
Express Scripts, Inc.^(a)		24,740		1,053,924

Medco Health Solutions, Inc.^(a)		29,090		1,264,833

				2,318,757

Health Care Supplies–1.1%
Alcon, Inc. (Switzerland)		14,844		2,407,697

Home Improvement Retail–0.8%
Home Depot, Inc.		61,137		1,700,220

Industrial Machinery–1.4%
Ingersoll-Rand PLC (Ireland)		93,591		3,044,515

Integrated Oil & Gas–4.5%
Exxon Mobil Corp.		93,308		5,520,101

Occidental Petroleum Corp.		57,658		4,213,647

				9,733,748

Internet Retail–1.1%
Amazon.com, Inc.^(a)		19,149		2,390,370

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

9 Invesco Van Kampen American Franchise Fund


	Shares		Value

Internet Software & Services–3.2%
Baidu, Inc.–ADR (Cayman Islands)^(a)		60,808	$	4,769,171

Google, Inc., Class A^(a)		4,902		2,205,998

				6,975,169

IT Consulting & Other Services–2.0%
Cognizant Technology Solutions Corp., Class A^(a)		73,987		4,262,021

Life & Health Insurance–1.2%
Prudential Financial, Inc.		49,982		2,527,590

Life Sciences Tools & Services–0.9%
Thermo Fisher Scientific, Inc.^(a)		46,003		1,937,646

Managed Health Care–2.0%
UnitedHealth Group, Inc.		138,101		4,380,564

Oil & Gas Equipment & Services–3.9%
Cameron International Corp.^(a)		45,456		1,671,872

Halliburton Co.		117,965		3,327,792

Schlumberger Ltd. (Netherlands Antilles)		66,794		3,562,124

				8,561,788

Oil & Gas Exploration & Production–0.6%
EOG Resources, Inc.		14,248		1,237,724

Pharmaceuticals–4.9%
Abbott Laboratories		91,348		4,507,110

Mead Johnson Nutrition Co.		94,582		4,936,235

Teva Pharmaceutical Industries Ltd.–ADR (Israel)		21,974		1,111,445

				10,554,790

Property & Casualty Insurance–1.0%
Berkshire Hathaway, Inc., Class B^(a)		28,400		2,237,352

Railroads–2.4%
Union Pacific Corp.		70,096		5,112,802

Restaurants–1.8%
McDonald’s Corp.		51,550		3,766,243

Starbucks Corp.		8,444		194,128

				3,960,371

Semiconductors–3.0%
Broadcom Corp., Class A		60,315		1,807,641

Intel Corp.		131,617		2,332,253

Xilinx, Inc.		94,902		2,291,883

				6,431,777

Soft Drinks–1.5%
Dr. Pepper Snapple Group, Inc.		88,621		3,263,025

Systems Software–5.1%
Microsoft Corp.		113,125		2,656,175

Red Hat, Inc.^(a)		70,978		2,452,290

Rovi Corp.^(a)		90,591		3,941,614

VMware, Inc., Class A^(a)		25,544		2,006,992

				11,057,071

Wireless Telecommunication Services–1.7%
American Tower Corp., Class A^(a)		79,024		3,703,065

Total Common Stocks–92.2% (Cost $186,347,585)				200,386,491



Money Market Funds–6.2%
Liquid Assets Portfolio–Institutional Class^(c)	6,727,054		6,727,054

Premier Portfolio–Institutional Class^(c)	6,727,054		6,727,054

Total Money Market Funds–6.2% (Cost $13,454,108)			13,454,108

TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–98.4% (Cost $199,801,693)			213,840,599

Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.7%
Liquid Assets Portfolio–Institutional Class^(c)(d)(Cost $3,637,122)	3,637,122		3,637,122

TOTAL INVESTMENTS–100.1% (Cost $203,438,815)			217,477,721

Foreign Currency–0.0% (Cost $4)			4

OTHER ASSETS LESS LIABILITIES–(0.1)%			(103,949	)

NET ASSETS–100.0%		$	217,373,776

Investment Abbreviation:

ADR – American Depositary Receipt

Percentages are calculated as a percentage of net assets.

Notes to Schedule of Investments:


^(a)		Non-income producing security.
^(b)		All or portion of this security was out on loan at August 31, 2010.
^(c)		The money market fund and the Fund are affiliated by having the same investment adviser.
^(d)		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 1(K).

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

10 Invesco Van Kampen American Franchise Fund

Financial Highlights

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.


	Class A Shares
	Year Ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of the period	$	8.87		$	10.23		$	12.19		$	11.41		$	10.17

Net investment income^(a)		0.01			0.13			0.13			0.36			0.15

Net realized and unrealized gain (loss)		1.03			(1.33	)		(1.20	)		0.52			1.15

Total from investment operations		1.04			(1.20	)		(1.07	)		0.88			1.30

Less:
Distributions from net investment income		0.12			0.16			0.31			0.10			0.06

Distributions from net realized gain		-0-			-0-			0.58			-0-	^(b)		-0-

Total distributions		0.12			0.16			0.89			0.10			0.06

Net asset value, end of the period	$	9.79		$	8.87		$	10.23		$	12.19		$	11.41

Total return*		11.75	%^(c)		(11.40	)%^(d)		(9.31	)%^(d)		7.75	%^(d)		12.80	%^(d)

Net assets at end of the period (in millions)	$	168.7		$	200.1		$	241.0		$	394.0		$	173.7

Ratio of expenses to average net assets*		1.30	%^(e)		1.35	%^(f)		1.24	%^(f)		1.19	%^(f)		1.36	%^(f)

Ratio of net investment income to average net assets*		0.11	%^(e)		1.60	%		1.22	%		2.93	%		1.39	%

Portfolio turnover^(g)		101	%		105	%		18	%		39	%		17	%

* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.30	%^(e)		1.41	%^(f)		N/A			N/A			1.46	%^(f)

Ratio of net investment income to average net assets		0.11	%^(e)		1.54	%		N/A			N/A			1.29	%


^(a)		Based on average shares outstanding.
^(b)		Amount is less than $0.01 per share.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or a contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		Ratios are based on average daily net assets (000’s omitted) of $194,409.
^(f)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If this credit was reflected as a reduction of expenses, the ratio would decrease by 0.01% for the year ended August 31, 2006.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A=Not Applicable

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

15 Invesco Van Kampen American Franchise Fund

Financial Highlights—(continued)


	Class B Shares
	Year Ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of the period	$	8.75		$	10.08		$	12.03		$	11.30		$	10.15

Net investment income (loss)^(a)		(0.06	)		0.07			0.05			0.26			0.07

Net realized and unrealized gain (loss)		1.01			(1.31	)		(1.18	)		0.53			1.13

Total from investment operations		0.95			(1.24	)		(1.13	)		0.79			1.20

Less:
Distributions from net investment income		0.06			0.09			0.24			0.06			0.05

Distributions from net realized gain		-0-			-0-			0.58			-0-	^(b)		-0-

Total distributions		0.06			0.09			0.82			0.06			0.05

Net asset value, end of the period	$	9.64		$	8.75		$	10.08		$	12.03		$	11.30

Total return*		10.89	%^(c)		(12.09	)%^(d)		(9.98	)%^(d)		7.01	%^(d)		11.90	%^(d)

Net assets at end of the period (in millions)	$	22.3		$	23.5		$	28.3		$	38.4		$	19.5

Ratio of expenses to average net assets*		2.05	%^(e)		2.10	%^(f)		2.00	%^(f)		1.95	%^(f)		2.11	%^(f)

Ratio of net investment income (loss) to average net assets*		(0.64	)%^(e)		0.86	%		0.45	%		2.15	%		0.65	%

Portfolio turnover^(g)		101	%		105	%		18	%		39	%		17	%

* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		2.05	%^(e)		2.16	%^(f)		N/A			N/A			2.21	%^(f)

Ratio of net investment income (loss) to average net assets		(0.64	)%^(e)		0.80	%		N/A			N/A			0.55	%


^(a)		Based on average shares outstanding.
^(b)		Amount is less than $0.01 per share.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC charge of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		Ratios are based on average daily net assets (000’s omitted) of $24,571.
^(f)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If this credit was reflected as a reduction of expenses, the ratio would decrease by 0.01% for the year ended August 31, 2006.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A=Not Applicable

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

16 Invesco Van Kampen American Franchise Fund

Financial Highlights—(continued)


	Class C Shares
	Year Ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of the period	$	8.76		$	10.10		$	12.02		$	11.30		$	10.15

Net investment income (loss)^(a)		(0.05	)		0.06			0.06			0.26			0.07

Net realized and unrealized gain (loss)		1.03			(1.30	)		(1.18	)		0.53			1.13

Total from investment operations		0.98			(1.24	)		(1.12	)		0.79			1.20

Less:
Distributions from net investment income		0.06			0.10			0.22			0.07			0.05

Distributions from net realized gain		-0-			-0-			0.58			-0-	^(b)		-0-

Total distributions		0.06			0.10			0.80			0.07			0.05

Net asset value, end of the period	$	9.68		$	8.76		$	10.10		$	12.02		$	11.30

Total return*		11.14	%^(c)(d)		(12.11	)%^(e)		(9.89	)%^(e)(g)		6.99	%^(e)		11.91	%^(e)

Net assets at end of the period (in millions)	$	23.7		$	25.1		$	26.6		$	46.4		$	24.8

Ratio of expenses to average net assets*		1.93	%^(d)(f)		2.16	%^(h)		1.92	%^(g)(h)		1.95	%^(h)		2.11	%^(h)

Ratio of net investment income (loss) to average net assets*		(0.52	)%^(d)(f)		0.78	%		0.55	%^(g)		2.15	%		0.64	%

Portfolio turnover⁽ⁱ⁾		101	%		105	%		18	%		39	%		17	%

* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.93	%^(d)(f)		2.22	%^(h)		N/A			N/A			2.21	%^(h)

Ratio of net investment income (loss) to average net assets		(0.52	)%^(d)(f)		0.72	%		N/A			N/A			0.54	%


^(a)		Based on average shares outstanding.
^(b)		Amount is less than $0.01 per share.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income (Loss) to Average Net Assets reflect actual Rule 12b-1 fees of 0.88%.
^(e)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC charge of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(f)		Ratios are based on average daily net assets (000’s omitted) of $25,819.
^(g)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual Rule 12b-1 fees less than 1%.
^(h)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If this credit was reflected as a reduction of expenses, the ratio would decrease by 0.01% for the year ended August 31, 2006.
⁽ⁱ⁾		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A=Not Applicable

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

17 Invesco Van Kampen American Franchise Fund

Financial Highlights—(continued)


	Class Y Shares ^Ù
	Year Ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of the period	$	8.91		$	10.27		$	12.23		$	11.44		$	10.17

Net investment income^(a)		0.04			0.14			0.18			0.42			0.18

Net realized and unrealized gain (loss)		1.02			(1.31	)		(1.22	)		0.48			1.15

Total from investment operations		1.06			(1.17	)		(1.04	)		0.90			1.33

Less:
Distributions from net investment income		0.14			0.19			0.34			0.11			0.06

Distributions from net realized gain		-0-			-0-			0.58			-0-^(b	⁾		-0-

Total distributions		0.14			0.19			0.92			0.11			0.06

Net asset value, end of the period	$	9.83		$	8.91		$	10.27		$	12.23		$	11.44

Total return*		11.95	%^(c)		(11.07	)%^(d)		(9.05	)%^(d)		7.93	%^(d)		13.22	%^(d)

Net assets at end of the period (in millions)	$	2.6		$	1.5		$	0.1		$	1.6		$	1.0

Ratio of expenses to average net assets*		1.05	%^(e)		1.10	%^(f)		1.00	%^(f)		0.93	%^(f)		1.11	%^(f)

Ratio of net investment income to average net assets*		0.35	%^(e)		1.77	%		1.65	%		3.42	%		1.79	%

Portfolio turnover^(g)		101	%		105	%		18	%		39	%		17	%

* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.05	%^(e)		1.18	%^(f)		N/A			N/A^(f	⁾		1.21	%^(f)

Ratio of net investment income to average net assets		0.35	%^(e)		1.69	%		N/A			N/A			1.69	%


^(a)		Based on average shares outstanding.
^(b)		Amount is less than $0.01 per share.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		Ratios are based on average daily net assets (000’s omitted) of $2,571.
^(f)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If this credit was reflected as a reduction of expenses, the ratio would decrease by 0.01% for the year ended August 31, 2006.
^Ù		On June 1, 2010, the Fund’s former Class I Shares were reorganized into Class Y Shares.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A=Not Applicable

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

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

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

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

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

18 Invesco Van Kampen American Franchise Fund

shares and Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
		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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

19 Invesco Van Kampen American Franchise Fund


		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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Repurchase Agreements — The Fund may enter into repurchase agreements. Collateral on repurchase agreements, including the Fund’s pro-rata interest in joint repurchase agreements, is taken into possession by the Fund upon entering into the repurchase agreement. Eligible securities for collateral are securities consistent with the Fund’s investment objectives and may consist of U.S. Government Securities, U.S. Government Sponsored Agency Securities and/or, Investment Grade Debt Securities. Collateral consisting of U.S. Government Securities and U.S. Government Sponsored Agency Securities is marked to market daily to ensure its market value is at least 102% of the sales price of the repurchase agreement. Collateral consisting of Investment Grade Debt Securities is marked to market daily to ensure its market value is at least 105% of the sales price of the repurchase agreement. The investments in some repurchase agreements, pursuant to procedures approved by the Board of Trustees, are through participation with other mutual funds, private accounts and certain non-registered investment companies managed by the investment advisor or its affiliates (“Joint repurchase agreements”). The principal amount of the repurchase agreement is equal to the value at period-end. If the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement, the Fund might incur expenses in enforcing its rights, and could experience losses, including a decline in the value of the collateral and loss of income.
J.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
		The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.		Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities

20 Invesco Van Kampen American Franchise Fund


		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 fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0	.70%

Next $500 million		0	.65%

Over $1 billion		0	.60%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $1,330,258 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets.

Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, and Class Y shares to 1.35%, 2.10%, 2.10%, and 1.10%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

For the period ended August 31, 2010, the Adviser waived advisory fees of $4,049.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $25,604 to VKII. For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

Prior to the Reorganization, under a legal services agreement, VKII provided legal services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $14,285 to VKII.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended August 31, 2010, IIS was paid $118,297 for providing such services. Prior to the Reorganization, the Acquired Fund paid $118,232 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

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

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

21 Invesco Van Kampen American Franchise Fund

For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information


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

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

NOTE 4—Trustees’ and Officers’ Fees and Benefits

For the period ended August 31, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. Prior to the Reorganization, the Acquired Fund recognized expense of $3,883 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

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

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	2,872,305	$	4,690,060

Long-term capital gain		-0-		-0-

Total distributions	$	2,872,305	$	4,690,060

22 Invesco Van Kampen American Franchise Fund

Tax Components of Net Assets at Period-End:


	2010

Net unrealized appreciation — investments	$	13,312,172

Net unrealized appreciation — other investments		12,320

Post-October currency loss deferral		(165,074	)

Capital loss carryforward		(62,299,317	)

Shares of beneficial interest		266,513,675

Total net assets	$	217,373,776

The Fund utilized $0 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2016	$	3,318,019

August 31, 2017		35,915,314

August 31, 2018		23,065,984

Total capital loss carryforward	$	62,299,317


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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $237,682,002 and $313,662,786, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	19,451,251

Aggregate unrealized (depreciation) of investment securities		(6,139,079	)

Net unrealized appreciation of investment securities	$	13,312,172

Cost of investments for tax purposes is $204,165,549

NOTE 8—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, accumulated undistributed net investment income (loss) was decreased by $1,246, accumulated net realized gain (loss) was increased by $197,220 and shares of beneficial interest decreased by $195,974. This reclassification had no effect on the net assets of the Fund.

23 Invesco Van Kampen American Franchise Fund

NOTE 9—Share Information


	For the						For the
	year ended						year ended
	August 31, 2010^(a)						August 31, 2009
	Shares			Value			Shares			Value

Sales:
Class A		2,272,877	^(b)	$	22,481,196	^(b)		10,262,168		$	80,713,964

Class B		278,730			2,757,084			846,247			6,505,002

Class C		251,034			2,484,206			1,254,211			9,691,211

Class Y		316,694			3,116,556			223,949			1,742,847

Total Sales		3,119,335			30,839,042			12,586,575			98,653,024

Dividend reinvestment:
Class A		254,295			2,479,382			505,826			3,743,187

Class B		16,396			158,221			35,704			262,070

Class C		14,122			136,561			34,206			251,415

Class Y		1,781			17,399			3,738			27,700

Total dividend reinvestment		286,594			2,791,563			579,474			4,284,372

Repurchases:
Class A		(7,851,906	)^(b)		(77,885,375	)^(b)		(11,771,734	)		(89,993,407	)

Class B		(660,819	)		(6,509,089	)		(1,011,800	)		(7,700,871	)

Class C		(674,167	)		(6,643,790	)		(1,061,620	)		(8,148,482	)

Class Y		(217,671	)		(2,138,931	)		(75,308	)		(568,636	)

Total Repurchases		(9,404,563	)	$	(93,177,185	)		(13,920,462	)	$	(106,411,396	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 59% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
^(b)		Includes automatic conversion of 46,387 Class B shares into 45,762 Class A shares at a value of $461,494.

NOTE 10—Change in Independent Registered Public Accounting Firm

In connection with the Reorganization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

24 Invesco Van Kampen American Franchise Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Van Kampen American Franchise Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen American Franchise Fund (formerly known as Van Kampen American Franchise Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides reasonable basis for our opinion. The statement of changes in net assets for the year ended August 31, 2009 and the financial highlights of the Fund for the periods ended August 31, 2009 and prior were audited by other independent auditors whose report dated October 26, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

25 Invesco Van Kampen American Franchise Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio³
A	$	1,000.00	$	992.90	$	6.33	$	1,018.85	$	6.41		1.26	%

B		1,000.00		989.73		10.08		1,015.07		10.21		2.01

C		1,000.00		989.76		9.33		1,015.83		9.45		1.86

Y		1,000.00		994.94		5.03		1,020.16		5.09		1.00


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.
³	The expense ratio for Class C reflects actual 12b-1 fees of less than 1%.

26 Invesco Van Kampen American Franchise Fund

Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen American Franchise Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history.

In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.


B.	Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.


C.	Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the

27 Invesco Van Kampen American Franchise Fund

financial resources necessary to fulfill these obligations.


F.	Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

28 Invesco Van Kampen American Franchise Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/ completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-09913 and 333-36074.

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


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

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Van Kampen Core Equity Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Van Kampen Core Equity Fund

Management’s Discussion of Fund Performance

Performance summary

Effective June 25, 2010, Meggan Walsh assumed management of the Invesco Van Kampen Core Equity Fund as the lead portfolio manager along with Jonathan Harrington as portfolio manager and a team of equity analysts. We have extensive industry experience, specifically with strategies that focus on dividend-paying stocks. We appreciate the opportunity to manage your Fund and look forward to a long-term partnership.

For the five months ended August 31, 2010, Invesco Van Kampen Core Equity Fund underperformed its style-specific benchmark, the S&P 500 Index. While we were managing the Fund for only part of this time, our comments will encompass the entire reporting period. The Fund’s underperformance for the period was largely due to an overweight in the consumer discretionary sector relative to the index. The Fund’s holdings in the industrials and financials sectors also detracted from relative results. Holdings in the consumer staples and utilities sectors had a positive effect on the Fund.

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

Fund vs. Indexes

Cumulative total returns, 3/31/10 to 8/31/10, 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	-10.99	%

Class B Shares	-11.32

Class C Shares	-11.32

Class R Shares	-11.11

Class Y Shares	-10.84

S&P 500 Index^▼ (Broad Market Index/Style-Specific Index)	-9.48


^▼		Lipper Inc.

How we invest

Our total return approach focuses on balancing long-term capital appreciation, current income and capital preservation. The Fund can serve as a conservative cornerstone within a well-diversified asset allocation strategy, complementing more aggressive and cyclical investments.

We seek companies that we believe have normalized earnings power greater than that implied by their current market valuation and that also return capital to shareholders via dividends and share repurchases. All stocks in the portfolio pay a dividend, and the Fund pays a quarterly dividend to shareholders. We strive to manage risk utilizing a valuation framework, careful stock selection and a rigorous buy-and-sell discipline.

We look for dividend-paying companies with strong profitability, solid balance sheets and capital allocation policies that support sustained or increasing dividends and share repurchases. We perform extensive fundamental research, incorporating both financial statement analysis and an assessment of the potential reward relative to the downside risk to determine a fair valuation over our two-year investment horizon for each stock. We believe our process can provide the best combination of dividend income, price appreciation and capital preservation.

We maintain a rigorous sell discipline and consider selling or trimming a stock when it no longer meets our investment criteria, including when:

n		A stock reaches its fair valuation (target price).

n		The company’s fundamental business prospects deteriorate.

n		A more attractive investment opportunity presents itself.

Market conditions and your Fund

During the reporting period, equity markets were volatile as the market began to question the sustainability of the recovery. Fears of a double-dip recession arose as the sovereign debt crisis unfolded in the euro zone and economic indicators remained weak domestically. In the U.S., unemployment, consumer spending and the housing market all remained subdued, adding to fears that the recovery was slowing to a sub-normal growth rate.

In this environment, eight out of 10 sectors of the S&P 500 Index declined during the period.¹ The more economically sensitive sectors such as financials, information technology (IT) and health care had the lowest returns, while traditionally defensive telecommunication services and utilities sectors had the highest returns. The health care sector, which historically has been more defensive, interestingly was one of the worst performers during the reporting period, mostly due to U.S. health care reform.

The largest detractor from Fund performance was General Electric in the industrials sector, and we eliminated this position during the period. The Fund’s exposure to the consumer discretionary sector also detracted from Fund performance with Royal Caribbean, Guess? and Best Buy among the top detractors. We eliminated our positions in Royal Caribbean and Guess?, but continued to hold Best Buy at the end of the reporting period.

The Fund owned foreign currency forward transactions during the reporting period. Portfolio managers used these

Portfolio Composition

By sector


Financials	18.7	%

Consumer Staples	17.0

Consumer Discretionary	15.5

Industrials	10.8

Information Technology	7.5

Health Care	5.8

Utilities	5.2

Energy	4.9

Materials	4.3

Telecommunication Services	2.9

Money Market Funds Plus Other Assets Less Liabilities	7.4


Total Net Assets		$34.6 million

Total Number of Holdings*		70

Top 10 Equity Holdings*


1. Philip Morris International, Inc.	3.0	%

2. AT&T, Inc.	2.9

3. Kimberly-Clark Corp.	2.8
4. American Electric Power Co., Inc.	2.1

5. SunTrust Banks, Inc.	2.1

6. Automatic Data Processing, Inc.	2.0

7. Johnson & Johnson	2.0

8. Capital One Financial Corp.	1.7

9. General Dynamics Corp.	1.7

10. Altria Group, Inc.	1.7

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

*Excluding money market fund holdings.

Invesco Van Kampen Core Equity Fund

contracts to hedge exposure to foreign currency depreciation. The contracts detracted slightly from Fund performance for the period, and no contracts were held at the end of the period.

Since taking over management of the Fund, we added new holdings, such as General Mills and Coca-Cola, increasing our overweight exposure to the consumer staples sector. The Fund benefited as these companies delivered positive returns. Other strong contributors during the reporting period included telecommunications holding AT&T and utilities holding Public Service Enterprise Group (PSEG). We continued to hold our AT&T position at the end of the reporting period, but eliminated our exposure to PSEG, as we believed there were better total return opportunities elsewhere within the utilities sector.

We also increased exposure to the financials and industrials sectors during the reporting period, while trimming exposure to the IT, health care and energy sectors. At the end of the period, our largest sector overweights relative to the S&P 500 index were in materials, consumer discretionary and utilities. Our largest underweights were in IT, health care and energy.

The past several months have indeed been challenging for the markets. Although there have been signs of a slowdown in growth, we believe this is a normal part of the economic cycle as we transition out of the recovery phase. There are a number of positives which make us more optimistic about the markets. Corporate operating leverage is strong and profitability remains high given the dramatic cost reductions taken during the market downturn. Balance sheets are flush with cash, which can be used to benefit shareholders through dividends and/ or share repurchases. Dividend-paying stocks are also attractive versus bonds as equity yields remained higher. The removal of many regulatory-related uncertainties also bodes well for equity valuations.

We believe one of our competitive advantages is a disciplined approach to evaluating stocks from a total return perspective; focusing not only on their capital appreciation potential, but also on their current dividend income and capital preservation. This approach can help create a well-diversified fund that can serve as a cornerstone allocation within an overall portfolio.

We thank you for your commitment to Invesco Van Kampen Core Equity Fund.

1 Lipper Inc.

See important Fund and index disclosures later in this report.

Meggan Walsh

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Van Kampen Core Equity Fund.

Ms. Walsh began her investment career in 1987 and joined Invesco in 1991. She earned a B.S. in finance from the University of Maryland and an M.B.A. from Loyola University Maryland.

Jonathan Harrington

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Core Equity Fund.

Mr. Harrington joined Invesco in 2001 in its corporate associate rotation program. He earned a B.A. in history and philosophy from Dartmouth College and an M.B.A. from the Kellogg Graduate School of Management at Northwestern University.

Invesco Van Kampen Core Equity Fund



Average Annual Total Returns
As of 8/31/10, including maximum applicable sales charges
Class A Shares

Inception (8/27/07)	-13.45	%

1 Year	-4.59


Class B Shares

Inception (8/27/07)	-13.28	%

1 Year	-4.76


Class C Shares

Inception (8/27/07)	-12.47	%

1 Year	-0.69


Class R Shares

Inception (8/27/07)	-12.07	%

1 Year	0.79


Class Y Shares

Inception (8/27/07)	-11.62	%

1 Year	1.34

Effective June 1, 2010, Class A, Class B, Class C, Class R and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C, Class R and Class Y shares, respectively, of Invesco Van Kampen Core Equity Fund. Returns shown above for Class A, Class B, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Core Equity Fund. Share class returns will differ from the predecessor fund because of different expenses.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R and Class Y shares was 1.20%, 1.95%, 1.95%, 1.45% and 0.95%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R and Class Y



Average Annual Total Returns
As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.
Class A Shares

Inception (8/27/07)	-14.46	%

1 Year	7.02


Class B Shares

Inception (8/27/07)	-14.19	%

1 Year	7.58


Class C Shares

Inception (8/27/07)	-13.38	%

1 Year	11.49


Class R Shares

Inception (8/27/07)	-12.97	%

1 Year	13.13


Class Y Shares

Inception (8/27/07)	-12.54	%

1 Year	13.56

shares was 1.63%, 2.38%, 2.38%, 1.88% and 1.38%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R and Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco Van Kampen Core Equity Fund

Invesco Van Kampen Core Equity Fund’s investment objective is to seek capital growth and income.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and foreign taxation issues.

n		Investing in REITs makes the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general and may involve duplication of management fees and other expenses. REITs may be less diversified than other pools of securities, may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

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

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

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

About indexes used in this report

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

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

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

Other information

n		The Chartered Financial Analyst^® (CFA^®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n		The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		VCEAX
Class B Shares		VCEBX
Class C Shares		VCECX
Class R Shares		VCERX
Class Y Shares		VCEIX

Invesco Van Kampen Core Equity Fund

Schedule of Investments

August 31, 2010


	Shares		Value

Common Stocks–92.6%
Aerospace & Defense–4.4%
General Dynamics Corp.		10,709	$	598,312

Raytheon Co.		8,772		385,266

United Technologies Corp.		8,200		534,722

				1,518,300

Apparel, Accessories & Luxury Goods–1.3%
VF Corp.		6,371		449,920

Apparel Retail–1.2%
Ross Stores, Inc.		8,021		398,082

Asset Management & Custody Banks–2.5%
Federated Investors, Inc., Class B		21,875		456,094

State Street Corp.		11,563		405,630

				861,724

Auto Parts & Equipment–1.4%
Johnson Controls, Inc.		18,430		488,948

Brewers–1.7%
Heineken NV (Netherlands)		13,049		582,878

Building Products–1.5%
Masco Corp.		49,224		516,360

Casinos & Gaming–1.3%
International Game Technology		31,253		456,294

Communications Equipment–1.1%
Corning, Inc.		24,480		383,846

Computer & Electronics Retail–1.3%
Best Buy Co., Inc.		14,330		449,819

Computer Hardware–1.3%
IBM Corp.		3,520		433,770

Construction & Farm Machinery & Heavy Trucks–1.2%
Caterpillar, Inc.		6,596		429,795

Consumer Finance–3.3%
American Express Co.		13,211		526,723

Capital One Financial Corp.		15,819		598,907

				1,125,630

Data Processing & Outsourced Services–2.0%
Automatic Data Processing, Inc.		18,098		698,764

Distributors–0.7%
Genuine Parts Co.		5,678		238,078

Diversified Banks–1.0%
Societe Generale (France)		7,117		359,911

Diversified Chemicals–1.5%
Du Pont (E.I.) de Nemours & Co.		12,965		528,583

Drug Retail–0.7%
Walgreen Co.		9,322		250,575

Electric Utilities–3.3%
American Electric Power Co., Inc.		20,671		731,960

Entergy Corp.		5,160		406,814

				1,138,774

Electrical Components & Equipment–1.1%
Emerson Electric Co.		8,402		391,953

Food Distributors–1.5%
Sysco Corp.		18,775		516,125

Gas Utilities–0.5%
Southern Union Co.		7,784		175,140

General Merchandise Stores–1.7%
Target Corp.		11,492		587,931

Health Care Equipment–1.4%
Stryker Corp.		11,136		480,964

Household Appliances–2.2%
Snap-On, Inc.		10,878		448,500

Whirlpool Corp.		4,035		299,236

				747,736

Household Products–2.8%
Kimberly-Clark Corp.		15,140		975,016

Industrial Machinery–1.4%
Pentair, Inc.		16,318		491,172

Insurance Brokers–1.4%
Marsh & McLennan Cos., Inc.		20,605		488,751

Integrated Oil & Gas–3.7%
Chevron Corp.		5,822		431,759

ENI SpA (Italy)		20,650		408,118

Exxon Mobil Corp.		2,934		173,575

Total SA (France)		5,823		271,146

				1,284,598

Integrated Telecommunication Services–2.9%
AT&T, Inc.		37,200		1,005,516

Investment Banking & Brokerage–0.8%
Charles Schwab Corp.		20,253		258,428

Leisure Products–0.8%
Mattel, Inc.		13,104		275,053

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

9 Invesco Van Kampen Core Equity Fund


	Shares		Value

Life & Health Insurance–2.4%
Lincoln National Corp.		11,777	$	275,111

MetLife, Inc.		15,170		570,392

				845,503

Lodging/Resorts–0.6%
Marriott International, Inc., Class A		6,561		210,018

Motorcycle Manufacturers–0.5%
Harley-Davidson, Inc.		7,454		181,281

Movies & Entertainment–1.2%
Time Warner, Inc.		14,049		421,189

Multi-Utilities–1.4%
DTE Energy Co.		10,580		495,673

Office Services & Supplies–1.2%
Pitney Bowes, Inc.		20,770		399,615

Oil & Gas Equipment & Services–1.1%
Baker Hughes, Inc.		10,563		396,958

Other Diversified Financial Services–1.0%
JPMorgan Chase & Co.		9,047		328,949

Packaged Foods & Meats–3.9%
Campbell Soup Co.		10,485		390,671

General Mills, Inc.		10,776		389,660

Kraft Foods, Inc., Class A		18,883		565,546

				1,345,877

Paper Products–1.7%
International Paper Co.		28,640		585,974

Pharmaceuticals–4.4%
Bristol-Myers Squibb Co.		19,545		509,734

Johnson & Johnson		12,206		695,986

Mead Johnson Nutrition Co.		2,640		137,781

Pfizer, Inc.		12,245		195,063

				1,538,564

Property & Casualty Insurance–1.6%
Travelers Cos., Inc.		11,290		552,984

Regional Banks–3.4%
Fifth Third Bancorp		41,297		456,332

SunTrust Banks, Inc.		31,697		712,865

				1,169,197

Restaurants–1.4%
Brinker International, Inc.		30,253		476,485

Semiconductors–0.6%
Texas Instruments, Inc.		8,785		202,319

Soft Drinks–1.6%
Coca-Cola Co.		10,176		569,042

Specialty Chemicals–1.1%
Lubrizol Corp.		4,081		380,798

Systems Software–2.5%
Microsoft Corp.		14,291		335,553

Oracle Corp.		24,430		534,528

				870,081

Thrifts & Mortgage Finance–1.4%
Hudson City Bancorp, Inc.		40,994		472,456

Tobacco–4.7%
Altria Group, Inc.		26,779		597,707

Philip Morris International, Inc.		20,250		1,041,660

				1,639,367

Total Common Stocks–92.6% (Cost $31,921,313)				32,070,764

Money Market Funds–7.7%
Liquid Assets Portfolio–Institutional Class^(a)		1,337,142		1,337,142

Premier Portfolio–Institutional Class^(a)		1,337,142		1,337,142

Total Money Market Funds–7.7% (Cost $2,674,284)				2,674,284

TOTAL INVESTMENTS–100.3% (Cost $34,595,597)				34,745,048

FOREIGN CURRENCY–0.0% (Cost $16,032)				16,051

LIABILITIES IN EXCESS OF OTHER ASSETS–(0.3%)				(114,008	)

NET ASSETS–-100.0%			$	34,647,091

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.


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

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

10 Invesco Van Kampen Core Equity Fund

Financial Highlights

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.


	Class A
										August 27, 2007
										(commencement of
	Five months ended			Year ended			Year ended			operations) to
	August 31,			March 31,			March 31,			March 31,
	2010			2010			2009			2008

Net asset value, beginning of the period	$	7.46		$	4.97		$	8.91		$	10.00

Net investment income^(a)		0.03			0.07			0.09			0.06

Net realized and unrealized gain (loss)		(0.85	)		2.50			(4.00	)		(1.01	)

Total from investment operations		(0.82	)		2.57			(3.91	)		(0.95	)

Less:
Distributions from net investment income		-0-			0.08			0.03			0.11

Distributions from net realized gain		-0-			-0-			-0-			0.03

Total distributions		-0-			0.08			0.03			0.14

Net asset value, end of the period	$	6.64		$	7.46		$	4.97		$	8.91

Total return*		(10.99	)%^(b)		51.84	%^(c)		(43.89	)%^(c)		(9.69	)%^(c)**

Net assets at end of the period (in millions)	$	8.7		$	9.4		$	4.4		$	3.4

Ratio of expenses to average net assets*		1.20	%^(d)		1.20	%		1.20	%		1.20	%

Ratio of net investment income to average net assets*		0.96	%^(d)		1.00	%		1.47	%		1.11	%

Portfolio turnover^(e)		61	%		48	%		66	%		14	%

* If certain expenses had not been voluntarily assumed by the Adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.80	%^(d)		1.64	%		3.34	%		4.14	%

Ratio of net investment income (loss) to average net assets		0.36	%^(d)		0.56	%		(0.67	)%		(1.83	)%


**	Non-annualized


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $9,248.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

15 Invesco Van Kampen Core Equity Fund

Financial Highlights—(continued)


	Class B shares
										August 27, 2007
										(commencement of
	Five months ended			Year ended			Year ended			operations) to
	August 31,			March 31,			March 31,			March 31,
	2010			2010			2009			2008

Net asset value, beginning of the period	$	7.42		$	4.95		$	8.92		$	10.00

Net investment income^(a)		0.01			0.01			0.05			0.05

Net realized and unrealized gain (loss)		(0.85	)		2.50			(4.00	)		(1.01	)

Total from investment operations		(0.84	)		2.51			(3.95	)		(0.96	)

Less:
Distributions from net investment income		-0-			0.04			0.02			0.09

Distributions from net realized gain		-0-			-0-			-0-			0.03

Total distributions		-0-			0.04			0.02			0.12

Net asset value, end of the period	$	6.58		$	7.42		$	4.95		$	8.92

Total return*		(11.32	)%^(b)		50.69	%^(c)		(44.35	)%^(c)		(9.79	)%^(c)(d)**

Net assets at end of the period (in millions)	$	0.6		$	0.7		$	0.5		$	0.2

Ratio of expenses to average net assets*		1.95	%^(e)		1.96	%		1.97	%		1.38	%^(d)

Ratio of net investment income to average net assets*		0.23	%^(e)		0.23	%		0.75	%		0.95	%^(d)

Portfolio turnover^(f)		61	%		48	%		66	%		14	%

* If certain expenses had not been voluntarily assumed by the Adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		2.54	%^(e)		2.40	%		4.13	%		4.53	%^(d)

Ratio of net investment income (loss) to average net assets		(0.35	)%^(e)		(0.21	)%		(1.41	)%		(2.20	)%^(d)


**	Non-annualized


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		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 less than 1%.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $698.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

16 Invesco Van Kampen Core Equity Fund

Financial Highlights—(continued)


	Class C shares
										August 27, 2007
										(commencement of
	Five months ended			Year ended			Year ended			operations) to
	August 31,			March 31,			March 31,			March 31,
	2010			2010			2009			2008

Net asset value, beginning of the period	$	7.42		$	4.96		$	8.90		$	10.00

Net investment income^(a)		0.01			0.01			0.05			0.04

Net realized and unrealized gain (loss)		(0.85	)		2.49			(3.99	)		(1.02	)

Total from investment operations		(0.84	)		2.50			(3.94	)		(0.98	)

Less:
Distributions from net investment income		-0-			0.04			-0-			0.09

Distributions from net realized gain		-0-			-0-			-0-			0.03

Total distributions		-0-			0.04			-0-			0.12

Net asset value, end of the period	$	6.58		$	7.42		$	4.96		$	8.90

Total return*		(11.32	)%^(b)		50.51	%^(c)		(44.27	)%^(c)(d)		(9.96	)%^(c)(d)**

Net assets at end of the period (in millions)	$	0.9		$	0.9		$	0.5		$	0.4

Ratio of expenses to average net assets*		1.95	%^(e)		2.01	%		1.90	%^(d)		1.74	%^(d)

Ratio of net investment income to average net assets*		0.21	%^(e)		0.19	%		0.74	%^(d)		0.66	%^(d)

Portfolio turnover^(f)		61	%		48	%		66	%		14	%

* If certain expenses had not been voluntarily assumed by the Adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		2.55	%^(e)		2.45	%		4.00	%^(d)		4.79	%^(d)

Ratio of net investment income (loss) to average net assets		(0.39	%)^(e)		(0.25	)%		(1.36	)%^(d)		(2.39	)%^(d)


**	Non-annualized


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		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 less than 1%.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $962.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

17 Invesco Van Kampen Core Equity Fund

Financial Highlights—(continued)


	Class R shares
										August 27, 2007
										(commencement of
	Five months ended			Year ended			Year ended			operations) to
	August 31,			March 31,			March 31,			March 31,
	2010			2010			2009			2008

Net asset value, beginning of the period	$	7.47		$	4.98		$	8.91		$	10.00

Net investment income^(a)		0.02			0.05			0.07			0.05

Net realized and unrealized gain (loss)		(0.85	)		2.51			(4.00	)		(1.01	)

Total from investment operations		(0.83	)		2.56			(3.93	)		(0.96	)

Less:
Distributions from net investment income		-0-			0.07			-0-(b	)		0.10

Distributions from net realized gain		-0-			-0-			-0-			0.03

Total distributions		-0-			0.07			-0-			0.13

Net asset value, end of the period	$	6.64		$	7.47		$	4.98		$	8.91

Total return*		(11.11	)%^(c)		51.41	%^(d)		(44.08	)%^(d)		(9.80	)%^(d)**

Net assets at end of the period (in millions)	$	0.1		$	0.1		$	0.1		$	0.1

Ratio of expenses to average net assets*		1.45	%^(e)		1.45	%		1.45	%		1.45	%

Ratio of net investment income to average net assets*		0.71	%^(e)		0.74	%		1.03	%		0.85	%

Portfolio turnover^(f)		61	%		48	%		66	%		14	%

* If certain expenses had not been voluntarily assumed by the Adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		2.05	%^(e)		1.89	%		4.09	%		4.61	%

Ratio of net investment income (loss) to average net assets		0.11	%^(e)		0.30	%		(1.61	)%		(2.31	)%


**	Non-annualized


^(a)		Based on average shares outstanding.
^(b)		Amount is less than $0.01.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Assumes reinvestment of all distributions for the period. These returns include combined Rule 12b-1 fees and service fees of up to 0.50% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $71.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

18 Invesco Van Kampen Core Equity Fund

Financial Highlights—(continued)


	Class Y shares^Ù
										August 27, 2007
										(commencement of
	Five months ended			Year ended			Year ended			operations) to
	August 31,			March 31,			March 31,			March 31,
	2010			2010			2009			2008

Net asset value, beginning of the period	$	7.47		$	4.98		$	8.92		$	10.00

Net investment income^(a)		0.04			0.08			0.12			0.08

Net realized and unrealized gain (loss)		(0.85	)		2.50			(4.02	)		(1.02	)

Total from investment operations		(0.81	)		2.58			(3.90	)		(0.94	)

Less:
Distributions from net investment income		-0-			0.09			0.04			0.11

Distributions from net realized gain		-0-			-0-			0			0.03

Total distributions		-0-			0.09			0.04			0.14

Net asset value, end of the period	$	6.66		$	7.47		$	4.98		$	8.92

Total return*		(10.84	)%^(b)		52.01	%^(c)		(43.75	)%^(c)		(9.57	)%^(c)**

Net assets at end of the period (in millions)	$	24.3		$	32.1		$	22.1		$	8.7

Ratio of expenses to average net assets*		0.95	%^(d)		0.95	%		0.95	%		0.95	%

Ratio of net investment income to average net assets*		1.19	%^(d)		1.25	%		2.02	%		1.35	%

Portfolio turnover^(e)		61	%		48	%		66	%		14	%

* If certain expenses had not been voluntarily assumed by the Adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.53	%^(d)		1.39	%		2.44	%		4.11	%

Ratio of net investment income (loss) to average net assets		0.61	%^(d)		0.81	%		0.53	%		(1.81	)%


**	Non-annualized


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period. These do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $28,037.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
^Ù		On June 1, 2010, the Fund’s former Class I shares were reorganized to Class Y shares.

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

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

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

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

On August 31, 2010, the Fund’s fiscal year-end changed from March 31 to August 31.

The Fund’s investment objective is capital growth and income.

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

19 Invesco Van Kampen Core Equity Fund

Class B shares and Class C shares are sold with a CDSC. Class R and Class Y shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
		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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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

20 Invesco Van Kampen Core Equity Fund


		laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
		The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.		Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

21 Invesco Van Kampen Core Equity Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $1 billion		0	.65%

Next $1.5 billion		0	.60%

Over $2.5 billion		0	.55%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $46,595 and $249,665 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period April 1, 2010 to May 31, 2010 and for the year ended March 31, 2010, respectively.

Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class R and Class Y shares to 1.20%, 1.95%, 1.95%, 1.45% and 0.95% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

Prior to the Reorganization, Van Kampen had voluntarily waived $12,380 and $168,178 of advisory fees and/or reimbursed expenses of the Acquired Fund for the period April 1, 2010 to May 31, 2010 and for the year ended March 31, 2010, respectively.

For the period ended August 31, 2010, the Adviser waived advisory fees under of $83,108 under this agreement.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $5,596 and $23,800 to VKII for the period April 1, 2010 to May 31, 2010 and the year ended March 31, 2010, respectively. For the period ended August 31, 2010 and the year ended March 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

Prior to the Reorganization, under a legal services agreement, VKII provided legal services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $4,520 and $18,700 to VKII for the period April 1, 2010 to May 31, 2010 and the year ended March 31, 2010, respectively.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended August 31, 2010, IIS was paid $10,408 for providing such services. Prior to the Reorganization, the Acquired Fund paid $8,569 and $43,800 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent, for the period April 1, 2010 to May 31, 2010 and for the year ended March 31, 2010. For the period ended August 31, 2010 and the year ended March 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares, Class C shares and Class R shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% each of Class B and Class C average daily net assets and up to 0.50% of Class R average daily net assets.

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B, Class C and Class R shares. Pursuant to such agreements, the Acquired Fund paid $6,950 and $33,978 to VKFI for the period April 1, 2010 to May 31, 2010 and the year ended March 31, 2010, respectively.

22 Invesco Van Kampen Core Equity Fund

For the period ended August 31, 2010 and the year ended March 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $646 in front-end sales commissions from the sale of Class A shares and $0, $702 and $54 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period April 1, 2010 to May 31, 2010, VKFI retained $1,742 in front-end sales commissions from the sale of Class A shares and $170, for CDSC imposed on redemptions by shareholders. For the year ended March 31, 2010, VKFI retained $9,200 in front-end sales commissions from the sale of Class A shares and $1,300, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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.

NOTE 4—Trustees’ and Officers’ Fees and Benefits

For the period ended August 31, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. For the period April 1, 2010 to May 31, 2010, the Acquired Fund recognized expenses of $0 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”), of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund. For the year ended March 31, 2010, the Acquired Fund recognized expenses of $1,300 representing legal services provided by Skadden.

NOTE 5—Cash Balances

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

Tax Character of Distributions to Shareholders Paid During the Five Months Ended August 31, 2010 and the Years Ended March 31, 2010 and 2009:


	August 31,		March 31,		March 31,
	2010		2010		2009

Ordinary income	$	-0-	$	527,959	$	274,661

23 Invesco Van Kampen Core Equity Fund

Tax Components of Net Assets at Period-End:


	August 31,
	2010

Undistributed ordinary income	$	232,349

Net unrealized appreciation — investments		137,397

Net unrealized appreciation (depreciation) — other		(5	)

Capital loss carryforward		(3,306,064	)

Shares of beneficial interest		37,583,414

Total net assets	$	34,647,091

The Fund utilized $3,117,488 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	3,306,064


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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund from April 1, 2010 to August 31, 2010 was $22,612,393 and $28,765,254, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	1,492,567

Aggregate unrealized (depreciation) of investment securities		(1,355,170	)

Net unrealized appreciation of investment securities	$	137,397

Cost of investments for tax purposes is $34,607,651.

NOTE 8—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions, on August 31, 2010, undistributed net investment income was decreased by $1,395 and undistributed net realized gain (loss) was increased by $1,395. This reclassification had no effect on the net assets of the Fund.

24 Invesco Van Kampen Core Equity Fund

NOTE 9—Share Information


	For the						For the						For the
	five months ended						year ended						year ended
	August 31, 2010^(a)						March 31, 2010						March 31, 2009
	Shares			Value			Shares			Value			Shares			Value

Sales:
Class A		170,238^(b	⁾	$	1,227,440^(b	⁾		843,375		$	5,213,461			1,152,806		$	6,951,982

Class B		20,992			149,606			71,384			466,217			141,873			928,123

Class C		17,604			131,855			61,559			417,348			183,737			1,178,458

Class R		-0-			-0-			-0-			-0-			-0-			-0-

Class Y		133,592			960,712			1,017,248			6,453,313			5,402,879			31,326,259

Total sales		342,426		$	2,469,613			1,993,566		$	12,550,339			6,881,295		$	40,384,822

Dividend reinvestment:
Class A		-0-		$	-0-			13,393		$	93,480			4,512		$	24,774

Class B		-0-			-0-			512			3,564			264			1,447

Class C		-0-			-0-			505			3,513			-0-			-0-

Class R		-0-			-0-			-0-			-0-			-0-			-0-

Class Y		-0-			-0-			53,349			372,905			37,426			205,467

Total dividend reinvestment		-0-		$	-0-			67,759		$	473,462			42,202		$	231,688

Repurchases:
Class A		(127,084	)	$	(906,215	)		(475,278	)	$	(3,126,163	)		(647,557	)	$	(3,987,742	)

Class B		(16,763	)^(b)		(115,613	)^(b)		(80,299	)		(539,261	)		(58,501	)		(322,823	)

Class C		(8,455	)		(60,874	)		(33,342	)		(208,105	)		(127,752	)		(815,127	)

Class R		-0-			-0-			-0-			-0-			-0-			-0-

Class Y		(775,606	)		(5,397,281	)		(1,219,233	)		(7,910,361	)		(1,968,081	)		(9,273,380	)

Total repurchases		(927,908	)		(6,479,983	)		(1,808,152	)	$	(11,783,890	)		(2,801,891	)	$	(14,399,072	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 89% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
		In addition, 0.2% of the outstanding shares of the Fund are owned by Invesco or an investment advisor under common control with Invesco.
^(b)		Includes automatic conversion of 1,176 Class B shares into 1,167 Class A shares at a value of $7,981.

NOTE 10—Change in Independent Registered Public Accounting Firm

25 Invesco Van Kampen Core Equity Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Van Kampen Core Equity Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Core Equity Fund (formerly known as Van Kampen Core Equity Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended March 31, 2010 and prior were audited by other independent auditors whose report dated May 18, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

26 Invesco Van Kampen Core Equity Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	947.22	$	5.89	$	1,019.16	$	6.11		1.20	%

B		1,000.00		942.69		9.55		1,015.38		9.91		1.95

C		1,000.00		942.69		9.55		1,015.38		9.91		1.95

R		1,000.00		945.87		7.11		1,017.90		7.38		1.45

Y		1,000.00		947.37		4.66		1,020.42		4.84		0.95


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

27 Invesco Van Kampen Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen Core Equity Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

28 Invesco Van Kampen Core Equity Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/ completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov.
The SEC file numbers for the Fund are 811-09913 and 333-36074.


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

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco



2		Invesco Van Kampen Equity and Income Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees



3		Invesco Van Kampen Equity and Income Fund

Management’s Discussion of Fund Performance

Performance summary

For the eight months ended August 31, 2010, Invesco Van Kampen Equity and Income Fund at net asset value (NAV) underperformed the Barclays Capital U.S. Government/Credit Index. As the Fund uses a bottom-up stock selection approach, stock selection in various sectors was the primary reason the Fund underperformed the index.

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

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 8/31/10, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.


Class A Shares	-2.40	%

Class B Shares	-2.40

Class C Shares	-2.81

Class R Shares	-2.51

Class Y Shares	-2.15

Institutional Class Shares*	-2.21

Russell 1000 Value Index ^▼ (Broad Market Index)	-3.03

Barclays Capital U.S. Government/Credit Index ^▼ (Style-Specific Index)	8.67


^▼		Lipper Inc.

*		Share class incepted during the reporting period. For a detailed explanation of Fund performance see page 7.

How we invest

We call our investment philosophy “value with a catalyst.” We believe that undervalued companies which are experiencing positive changes (i.e., catalysts) have the potential to generate long-term stock price growth for shareholders. We generally seek to identify companies that are out of favor with investors, under-earning relative to their potential and attractively valued. For these companies, we attempt to identify catalysts that may improve the financial results and/or correct the undervaluation. Examples of catalysts typically include improved operational efficiency, changing industry dynamics and/or a change in management.

We initially identify potential investments through a series of quantitative screens including, but not limited to, return on capital and enterprise value to sales metrics. We then conduct fundamental research on the most attractive opportunities. The research process includes a thorough review of a company’s financial statements, an evaluation of its competitive position

and stability, and meetings with its executives. During the research process, we also value the company under various scenarios to determine if the investment is an attractive opportunity relative to its risks. This is also where we typically identify the positive catalyst, a pre-requisite for potential investment. Finally, we generally set a price target for a stock based on normalized earnings and historical valuation multiples.

In short, our objective is to exploit negative sentiment toward a company’s stock by analyzing the company’s operations in the context of a cyclical environment and identifying one or more catalysts that may improve the company’s financial performance. Improved financial performance, in turn, has the potential to drive the company’s stock price higher.

We typically sell an investment when it reaches our estimate of fair value or when we identify a more attractive investment opportunity.

The Fund also invests in investment-grade corporate bonds, convertible

securities and U.S. government-issued bonds. The fixed income portion helps to reduce volatility compared to an equity-only portfolio and may be able to provide downside protection in an uncertain market environment.

Market conditions and your Fund

At the beginning of the reporting period, riskier assets, like stocks, were outperforming securities considered safe havens, like U.S. Treasuries. This continued through the middle of April 2010. However, renewed credit problems in Europe and the market corrections that occurred in May, June and August, created a more uncertain environment, which prompted many investors to favor safety over risk. Although recent market volatility created challenges, it also created some investment opportunities, as companies with positive fundamentals became more attractively valued. Also, despite the market finishing lower at the reporting period end, there were also a number of positives, including improved market liquidity, lean corporate infrastructures and merger and acquisition activity.

Within the fixed income markets, the broad U.S. bond market (as measured by the Barclays Capital U.S. Aggregate Index) generated a positive total return for the trailing eight months, as falling interest rates across maturities combined with tighter credit spreads (the difference between the yields of U.S. Treasuries and other types of fixed income securities that carry credit risk) reflected the increased prices of fixed income assets. During the second quarter of 2010, sovereign risks in Europe caused investors to scale back their risk profile and embrace the safe haven of U.S. government-related securities.

In the equity portion of the Fund, an overweight allocation to the consumer discretionary sector was one of the largest contributors to performance of the Fund, as media stocks performed well within this sector due to an increase in advertisement revenue over the reporting period.

Also, stock selection in health care was a contributor to Fund performance.

Portfolio Composition

By security type


Common Stocks	61.5	%

Convertible Corporate Obligations	16.3

Corporate Bonds	10.2

United States Treasury Obligations	6.9

Convertible Preferred Stocks	1.9

Foreign Government Obligations	0.3

Municipal Bonds	0.3

Asset Backed Securities	0.1

Money Markets Plus Other

Assets In Excess of Liabilities	2.5

Top 10 Equity Holdings*


1.	JPMorgan Chase & Co.	3.0	%

2.	Marsh & McLennan Cos., Inc.	2.2

3.	General Electric Co.	2.1

4.	Viacom, Inc., Class B	1.9

5.	eBay, Inc.	1.7

6.	Kraft Foods, Inc., Class A	1.5

7.	American Electric Power Co., Inc.	1.5

8.	Occidental Petroleum Corp.	1.5

9.	Bank of America Corp.	1.4

10.	Bristol-Myers Squibb Co.	1.3


Total Net Assets	$10.7 billion

Total Number of Holdings*		330

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

*Excluding money market fund holdings.



4		Invesco Van Kampen Equity and Income Fund

Notably, Genzyme’s stock price rose on the announcement from Sanofi-aventis Pharmaceuticals of its interest in acquiring Genzyme. We sold Genzyme on the acquisition announcement and resulting run-up in stock price.

One of the largest detractors from relative and absolute performance for the Fund was the financials sector. In general, financial stocks performed strongly over the reporting period. However, the Fund was underweight in the financials sector relative to its broad market benchmark, and our financial stocks did not appreciate as much as those of the index. In general, we focused on what we believed were lower risk financial companies with stronger balance sheets and less credit risk given the systemic risk in most financial stocks. However, the portfolio had no exposure to REITs (real estate investment trusts), which performed well throughout the period. The Fund’s lack of exposure to REIT’s was based on our concern that valuations were high and that the commercial real estate market had weakened.

Technology stocks also adversely affected relative Fund performance. The Fund was overweight in the sector versus the Russell 1000 Value Index and was adversely affected by its exposure to stocks in the hardware and equipment industry. Notably detracting from Fund performance was Hewlett-Packard, as the stock sold off significantly on the announcement that the CEO was leaving.

Finally, stock selection in the energy sector also detracted from relative Fund performance. The Fund had most of its energy sector exposure in exploration and production companies. We had exposure to British Petroleum and Anadarko Petroleum. Each company was negatively affected by the oil spill in the Gulf of Mexico. During the period we eliminated our position in British Petroleum and reduced our exposure to Anadarko Petroleum.

In general, the fixed income portion of the Fund generated positive returns for the reporting period. Sector selection contributed to both positive absolute returns and performance relative to the Fund’s style-specific index. A measured overweight position in investment grade corporate credit and to the financials sector contributed favorably. Compared to the style-specific index, security selection was a slight detractor from overall Fund returns due to the negative effect of holdings within the energy sector, government-related industries and the consumer non-cyclical corporate sub sector.

The contribution to Fund performance from duration positioning was mixed over the period, but overall it had a small negative effect. The Fund maintained a shorter-than-benchmark duration positioning relative to the style-specific index as interest rates trended lower over most of the reporting period. U.S. Treasury note futures, a derivative instrument, were used to actively manage portfolio duration.

The contribution to performance from the Fund’s yield curve positioning was another small detractor from performance relative to the style-specific index. Near the end of the reporting period, the Fund was mainly invested in short-intermediate maturities and did not fully participate in the upside performance from falling yields in the longer end of the yield curve.

Equity markets experienced a strong recovery during the period covered by this report. We believe that market volatility and the market correction that began in the second quarter of 2010 have created opportunities to invest in companies with attractive valuations and strong fundamentals.

As always, we would like to caution investors against making investment decisions based on short-term performance. We recommend that you consult a financial adviser to discuss your individual financial program.

Thank you for your investment in Invesco Van Kampen Equity and Income Fund and for sharing our long-term investment horizon.

See important Fund and index disclosures later in this report.

Thomas Bastian

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity and Income Fund. He joined Invesco in 2010. Mr. Bastian earned a B.A. in accounting from St. John’s University and an M.B.A. in finance from the University of Michigan. He is a member of the CFA Institute and the Houston Society of Financial Analysts.

Cindy Brien

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity and Income Fund. She joined Invesco in 1996. Ms. Brien earned a B.B.A. from The University of Texas at Austin.

Chuck Burge

Portfolio manager, is manager of Invesco Van Kampen Equity and Income Fund. He joined Invesco in 2002. Mr. Burge earned a B.S. in economics from Texas A&M University and an M.B.A. in finance from Rice University.

Mark Laskin

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity and Income Fund. He joined Invesco in 2010. Mr. Laskin earned a B.A. in history from Swarth-more College and an M.B.A. and M.A. from the Wharton School and Lauder Institute, respectively, of the University of Pennsylvania.

Mary Jayne Maly

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity and Income Fund. She joined Invesco in 2010. Ms. Maly earned a B.A. from the University of Pittsburgh and an M.B.A. from the American Graduate School of International Management. She is a member of the Houston Society of Financial Analysts.

Sergio Marcheli

Portfolio manager, is manager of Invesco Van Kampen Equity and Income Fund. He joined Invesco in 2010. Mr. Marcheli earned a B.B.A. from the University of Houston and an M.B.A. from the University of St. Thomas.

James Roeder

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity and Income Fund. He joined Invesco in 2010. Mr. Roeder earned a B.S. in accounting from Clem-son University and an M.B.A. in economics and finance from the University of Chicago Graduate School of Business. He is a member of the CFA Institute and the Houston Society of Financial Analysts.



5		Invesco Van Kampen Equity and Income Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (8/3/60)			10.02	%

	10	Years	3.07

	5	Years	0.37

	1	Year	-0.55


Class B Shares

Inception (5/1/92)			8.92	%

	10	Years	3.12

	5	Years	0.88

	1	Year	0.20


Class C Shares

Inception (7/6/93)			8.14	%

	10	Years	2.90

	5	Years	0.78

	1	Year	3.47


Class R Shares

Inception (10/1/02)			5.97	%

	5	Years	1.28

	1	Year	5.03


Class Y Shares

Inception (12/22/04)			2.62	%

	5	Years	1.79

	1	Year	5.58


Institutional Class Shares

	10	Years	3.68	%

	5	Years	1.56

	1	Year	5.39

Effective June 1, 2010, Class A, Class B, Class C, Class I and Class R shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C, Class Y and Class R shares, respectively, of Invesco Van Kampen Equity and Income Fund. Returns shown above for Class A, Class B, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Equity and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (8/3/60)			10.00	%

	10	Years	3.67

	5	Years	0.58

	1	Year	8.46


Class B Shares

Inception (5/1/92)			8.87	%

	10	Years	3.71

	5	Years	1.07

	1	Year	9.64


Class C Shares

Inception (7/6/93)			8.09	%

	10	Years	3.51

	5	Years	0.97

	1	Year	12.96


Class R Shares

Inception (10/1/02)			5.78	%

	5	Years	1.47

	1	Year	14.42


Class Y Shares

Inception (12/22/04)			2.25	%

	5	Years	1.98

	1	Year	15.06


Institutional Class Shares

	10	Years	4.27	%

	5	Years	1.74

	1	Year	14.85

Institutional Class shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 0.82%, 1.57%, 1.57%, 1.07%, 0.57% and 0.50%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y and Institutional Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

continued from page 8

Other information

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

n		The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally



7		Invesco Van Kampen Equity and Income Fund

Invesco Van Kampen Equity and Income Fund’s investment objective is to seek the highest possible income consistent with safety of principal. Long-term growth of capital is an important secondary investment objective.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

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

Principal risks of investing in the Fund

n		The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and foreign taxation issues.

n		Investing in REITs makes the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general and may involve duplication of management fees and other expenses. REITs may be less diversified than other pools of securities, may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets.

n		The Fund emphasizes a value style of investing, which focuses on undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market.

		Value stocks also may decline in price, even though in theory they are already under priced.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		The ability of the Fund’s equity securities to generate income generally depends on the earnings and the continuing declaration of dividends by the issuers of such securities. The interest income on debt securities generally is affected by prevailing interest rates, which can vary widely over the short-and long-term. If dividends are reduced or discontinues or interest rates drop, distributions to shareholders from the Fund may drop as well.

n		If interest rates fall, it is possible that issuers of callable securities held by the Fund will call or prepay their securities before their maturity dates. In this event, the proceeds from the called securities would most likely be reinvested by the Fund in securities bearing the new, lower interest rates, resulting in a possible decline in the Fund’s income and distributions to shareholders and termination of any conversion option on convertible securities.

Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration of financial health may result in a reduction of the credit rating of the issuer’s securities and may lead to the issuer’s inability to honor its contractual obligations, including making timely payment of interest and principal.

About indexes used in this report

n		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.

n		The Barclays Capital U.S. Government/Credit Index includes Treasuries and agencies that represent the government portion of the index, and includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements to represent the credit interests.

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

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

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

continued on page 7

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		ACEIX
Class B Shares		ACEQX
Class C Shares		ACERX
Class R Shares		ACESX
Class Y Shares		ACETX
Institutional Shares		ACEKX



8		Invesco Van Kampen Equity and Income Fund

Schedule of Investments

August 31, 2010


	Shares		Value

Common Stocks–61.5%
Air Freight & Logistics–0.3%
FedEx Corp.		444,959	$	34,729,050

Apparel Retail–0.3%
Gap, Inc.		1,968,590		33,249,485

Application Software–0.6%
Amdocs Ltd. (Guernsey)^(a)		2,596,104		68,095,808

Asset Management & Custody Banks–0.8%
Janus Capital Group, Inc.		1,854,072		16,834,974

State Street Corp.		1,831,632		64,253,650

				81,088,624

Automobile Manufacturers–0.4%
Ford Motor Co.^(a)		3,965,613		44,771,771

Broadcasting & Cable TV–1.1%
Comcast Corp., Class A		6,559,338		112,295,867

Broadcasting–Diversified–0.8%
Time Warner Cable, Inc.		1,659,513		85,647,466

Communications Equipment–0.8%
Cisco Systems, Inc.^(a)		4,025,808		80,717,450

Computer Hardware–1.7%
Dell, Inc.^(a)		6,005,263		70,681,945

Hewlett-Packard Co.		2,910,098		111,980,571

				182,662,516

Consumer Electronics–0.7%
Sony Corp.–ADR (Japan)		2,623,383		73,428,490

Data Processing & Outsourced Services–0.7%
Western Union Co.		4,652,842		72,956,563

Diversified Banks–0.9%
U.S. Bancorp		1,962,483		40,819,646

Wells Fargo & Co.		2,446,559		57,616,465

				98,436,111

Diversified Chemicals–1.7%
Bayer AG–ADR (Germany)		1,154,003		70,620,945

Dow Chemical Co.		2,207,944		53,807,595

PPG Industries, Inc.		903,646		59,487,016

				183,915,556

Diversified Commercial & Professional Services–0.4%
Cintas Corp.		1,563,219		39,846,452

Drug Retail–0.8%
Walgreen Co.		3,168,081		85,158,017

Electric Utilities–3.0%
American Electric Power Co., Inc.		4,546,533		160,992,733

Edison International		1,292,436		43,619,715

Entergy Corp.		756,489		59,641,593

FirstEnergy Corp.		1,624,307		59,335,935

				323,589,976

Food Distributors–0.6%
Sysco Corp.		2,463,868		67,731,731

Health Care Distributors–0.4%
Cardinal Health, Inc.		1,421,902		42,600,184

Health Care Equipment–0.7%
Covidien PLC (Ireland)		2,204,441		77,904,945

Home Improvement Retail–0.8%
Home Depot, Inc.		3,221,337		89,585,382

Human Resource & Employment Services–0.6%
Manpower, Inc.		878,691		37,344,367

Robert Half International, Inc.		1,360,607		29,361,899

				66,706,266

Hypermarkets & Super Centers–1.3%
Wal-Mart Stores, Inc.		2,704,220		135,589,591

Industrial Conglomerates–3.6%
General Electric Co.		15,425,106		223,355,535

Siemens AG–ADR (Germany)		599,128		54,239,058

Tyco International Ltd. (Switzerland)		2,914,264		108,643,762

				386,238,355

Industrial Machinery–0.9%
Dover Corp.		1,157,790		51,822,680

Ingersoll-Rand PLC (Ireland)		1,519,928		49,443,258

				101,265,938

Insurance Brokers–2.2%
Marsh & McLennan Cos., Inc.		9,793,062		232,291,431

Integrated Oil & Gas–4.8%
ConocoPhillips		1,529,828		80,208,882

Exxon Mobil Corp.		1,174,769		69,499,334

Hess Corp.		1,626,423		81,727,756

Occidental Petroleum Corp.		2,129,763		155,643,080

Royal Dutch Shell PLC–ADR (United Kingdom)		2,436,821		129,273,354

				516,352,406

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

9 Invesco Van Kampen Equity and Income Fund


	Shares		Value

Integrated Telecommunication Services–0.7%
Verizon Communications, Inc.		2,468,701	$	72,851,366

Internet Software & Services–2.4%
eBay, Inc.^(a)		7,870,814		182,917,718

Yahoo!, Inc.^(a)		5,450,103		71,287,347

				254,205,065

Investment Banking & Brokerage–1.1%
Charles Schwab Corp.		6,784,334		86,568,102

Morgan Stanley		1,457,323		35,981,305

				122,549,407

Life & Health Insurance–0.5%
Principal Financial Group, Inc.		2,114,055		48,728,968

Managed Health Care–1.2%
UnitedHealth Group, Inc.		3,946,985		125,198,364

Motorcycle Manufacturers–0.2%
Harley-Davidson, Inc.		989,296		24,059,679

Movies & Entertainment–3.1%
Time Warner, Inc.		4,453,537		133,517,039

Viacom, Inc., Class B		6,308,968		198,227,775

				331,744,814

Office Services & Supplies–0.4%
Avery Dennison Corp.		1,255,183		40,818,551

Oil & Gas Equipment & Services–1.0%
Cameron International Corp.^(a)		597,182		21,964,354

Schlumberger Ltd. (Netherlands Antilles)		1,493,883		79,668,780

				101,633,134

Oil & Gas Exploration & Production–2.0%
Anadarko Petroleum Corp.		2,382,788		109,584,420

Devon Energy Corp.		1,098,862		66,239,402

Noble Energy, Inc.		541,131		37,760,121

				213,583,943

Other Diversified Financial Services–5.0%
Bank of America Corp.		11,587,489		144,264,238

Citigroup, Inc.^(a)		18,328,233		68,181,027

JPMorgan Chase & Co.		8,718,389		317,000,624

				529,445,889

Packaged Foods & Meats–2.3%
Kraft Foods, Inc., Class A		5,396,927		161,637,964

Unilever NV (Netherlands)		3,253,041		87,148,968

				248,786,932

Personal Products–0.7%
Avon Products, Inc.		2,585,060		75,225,246

Pharmaceuticals–4.5%
Abbott Laboratories		1,118,673		55,195,326

Bristol-Myers Squibb Co.		5,225,503		136,281,118

Merck & Co., Inc.		3,219,634		113,202,331

Pfizer, Inc.		6,631,418		105,638,489

Roche Holdings AG–ADR (Switzerland)		2,081,331		70,814,582

				481,131,846

Property & Casualty Insurance–0.7%
Chubb Corp.		1,413,011		77,885,166

Regional Banks–1.8%
BB&T Corp.		1,694,189		37,475,461

Fifth Third Bancorp		3,083,474		34,072,388

PNC Financial Services Group, Inc.		2,386,670		121,624,703

				193,172,552

Semiconductor Equipment–0.2%
Lam Research Corp.^(a)		620,087		22,391,342

Semiconductors–0.7%
Intel Corp.		4,055,551		71,864,364

Soft Drinks–1.0%
Coca-Cola Co.		1,072,089		59,951,217

Coca-Cola Enterprises, Inc.		1,810,760		51,534,229

				111,485,446

Wireless Telecommunication Services–1.1%
Vodafone Group PLC–ADR (United Kingdom)		4,991,513		120,694,784

Total Common Stocks–61.5%				6,584,312,289

Convertible Preferred Stocks–1.9%
Agricultural Products–0.3%
Archer-Daniels-Midland Co., 6.250%		832,350		34,142,997

Electric Utilities–0.4%
Centerpoint Energy, Inc.^(c), 3.074%		1,300,669		37,576,327

Health Care Facilities–0.2%
HEALTHSOUTH Corp., Ser A, 6.500%		27,000		21,404,250

Health Care Services–0.1%
Omnicare Capital Trust II, 4.000%		356,855		11,669,159

Office Services & Supplies–0.2%
Avery Dennison Corp., 7.875%		529,725		20,394,412

Oil & Gas Storage & Transportation–0.3%
El Paso Energy Capital Trust I, 4.750%		875,900		32,714,865

Regional Banks–0.4%
KeyCorp Ser A, 7.750%		427,098		44,200,372

Total Convertible Preferred Stocks–1.9%				202,102,382

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

10 Invesco Van Kampen Equity and Income Fund


						Par
						Amount
	Coupon			Maturity		(000)		Value

Wireless Telecommunication Services–0.2%
SBA Communications Corp.		1.875	%		05/01/13	$	24,081	$	25,495,759

Total Convertible Corporate Obligations–16.3%									1,745,819,179

Corporate Bonds–10.2%
Agency–1.2%
Federal Home Loan Mortgage Corp.		3.000			07/28/14		23,700		25,324,635

Federal Home Loan Mortgage Corp.		4.875			06/13/18		33,000		38,777,557

Federal Home Loan Mortgage Corp.		6.750			03/15/31		7,000		9,920,103

Federal National Mortgage Association		4.375			10/15/15		37,970		43,041,379

Federal National Mortgage Association		6.625			11/15/30		5,970		8,314,357

									125,378,031

Airlines–0.0%
Delta Air Lines, Inc.		6.200			07/02/18		3,200		3,316,000

Automotive–0.0%
DaimlerChrysler NA Holding Corp.		7.750			01/18/11		3,730		3,825,846

Automotive Retail–0.1%
Advance Auto Parts, Inc.		5.750			05/01/20		4,300		4,574,125

AutoZone, Inc.		6.500			01/15/14		5,245		5,942,902

									10,517,027

Banking–3.0%
Abbey National Treasury Services PLC (United Kingdom)^(d)		3.875			11/10/14		4,645		4,755,614

American Express Co.		8.125			05/20/19		3,380		4,370,350

Bank of America Corp., Ser L		5.650			05/01/18		15,855		16,584,854

Bank of America Corp.		5.750			12/01/17		2,575		2,734,450

Barclays Bank PLC (United Kingdom)		6.750			05/22/19		8,290		9,859,420

Capital One Bank USA NA		8.800			07/15/19		8,625		10,954,929

Citibank NA		1.750			12/28/12		18,400		18,833,627

Citigroup, Inc.		2.250			12/10/12		69,000		71,462,635

Citigroup, Inc.		6.125			11/21/17		11,285		12,144,845

Citigroup, Inc.		6.125			05/15/18		6,965		7,603,318

Citigroup, Inc.		8.500			05/22/19		4,075		4,995,059

Commonwealth Bank of Australia (Australia)^(d)		5.000			10/15/19		6,095		6,628,385

Credit Suisse (Switzerland)		5.400			01/14/20		1,775		1,872,206

Credit Suisse New York (Switzerland)		5.300			08/13/19		3,630		4,013,579

GMAC, Inc.		2.200			12/19/12		11,500		11,885,719

Goldman Sachs Group, Inc.		6.150			04/01/18		15,465		16,940,498

Goldman Sachs Group, Inc.		6.750			10/01/37		4,475		4,624,947

HBOS PLC (United Kingdom)^(d)		6.750			05/21/18		8,310		8,354,916

JPMorgan Chase & Co.		6.000			01/15/18		7,335		8,341,598

KeyBank NA		3.200			06/15/12		7,500		7,846,316

Lloyds TSB Bank PLC (United Kingdom)^(d)		5.800			01/13/20		1,360		1,419,877

National Australia Bank Ltd. (Australia)^(d)		3.750			03/02/15		3,250		3,419,652

Nationwide Building Society (United Kingdom)^(d)		6.250			02/25/20		8,640		9,618,102

Nordea Bank AB (Sweden)^(d)		4.875			01/27/20		4,395		4,800,389

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

13 Invesco Van Kampen Equity and Income Fund


						Par
						Amount
	Coupon			Maturity		(000)		Value

Banking–(continued)

PNC Funding Corp.		5.125	%		02/08/20	$	5,185	$	5,616,978

PNC Funding Corp.		6.700			06/10/19		3,555		4,232,594

Rabobank Nederland NV (Netherlands)^(d)		4.750			01/15/20		8,895		9,662,464

Royal Bank of Scotland PLC (United Kingdom)		4.875			03/16/15		7,480		7,839,235

Santander US Debt SA Unipersonal (Spain)^(d)		3.724			01/20/15		3,200		3,234,977

Standard Chartered Bank (United Kingdom)^(d)		6.400			09/26/17		2,310		2,593,571

Standard Chartered PLC (United Kingdom)^(d)		3.850			04/27/15		3,730		3,880,355

UBS AG Stamford Branch (Switzerland)		5.875			12/20/17		5,100		5,747,136

UBS AG Stamford CT (Switzerland)		3.875			01/15/15		1,435		1,491,751

US Bank, NA^(c)		3.778			04/29/20		7,200		7,540,610

Wells Fargo & Co.		5.625			12/11/17		14,445		16,308,757

									322,213,713

Brokerage–0.2%
Bear Stearns Co., Inc.		7.250			02/01/18		7,950		9,596,155

Credit Suisse New York (Switzerland)		6.000			02/15/18		1,647		1,802,840

Merrill Lynch & Co., Inc.		6.875			04/25/18		8,375		9,227,127

									20,626,122

Building Materials–0.0%
Holcim US Finance Sarl & Cie SCS (Luxembourg)^(d)		6.000			12/30/19		1,885		2,085,870

Chemicals–0.0%
Potash Corp. of Saskatchewan, Inc. (Canada)		5.875			12/01/36		2,175		2,426,768

Diversified Banks–0.3%
Bank of Nova Scotia (Canada)		2.375			12/17/13		5,955		6,150,419

HSBC Bank PLC (United Kingdom)^(d)		4.125			08/12/20		6,615		6,844,585

US Bancorp		2.000			06/14/13		7,955		8,154,439

Westpac Banking Corp. (Australia)		2.100			08/02/13		6,465		6,544,941

									27,694,384

Diversified Capital Markets–0.1%
Credit Suisse New York (Switzerland)		4.375			08/05/20		6,350		6,407,229

Diversified Manufacturing–0.1%
Brascan Corp. (Canada)		7.125			06/15/12		1,330		1,428,485

Brookfield Asset Management, Inc. (Canada)		5.800			04/25/17		2,470		2,534,064

General Electric Co.		5.250			12/06/17		4,265		4,799,906

									8,762,455

Electric–0.3%
Electricite de France SA (France)^(d)		4.600			01/27/20		2,100		2,309,317

Enel Finance International SA, (Luxembourg)^(d)		5.125			10/07/19		6,605		6,841,216

FirstEnergy Solutions Corp.		6.050			08/15/21		4,550		4,863,675

Iberdrola Finance Ireland Ltd. (Ireland)^(d)		3.800			09/11/14		2,100		2,155,233

Indianapolis Power & Light Co.^(d)		6.300			07/01/13		1,330		1,487,810

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

14 Invesco Van Kampen Equity and Income Fund


						Par
						Amount
	Coupon			Maturity		(000)		Value

Life Insurance–0.3%
Aegon NV (Netherlands)		4.625	%		12/01/15	$	3,000	$	3,163,184

MetLife, Inc., Ser A		6.817			08/15/18		3,070		3,659,529

Nationwide Financial Services, Inc.		6.250			11/15/11		3,155		3,289,066

Pacific LifeCorp^(d)		6.000			02/10/20		3,350		3,664,922

Platinum Underwriters Finance, Inc., Ser B		7.500			06/01/17		3,100		3,437,344

Prudential Financial, Inc.		4.750			09/17/15		4,910		5,287,635

Prudential Financial, Inc.		6.625			12/01/37		3,395		3,929,751

Prudential Financial, Inc.		7.375			06/15/19		365		443,651

Reinsurance Group of America, Inc.		6.450			11/15/19		3,350		3,686,187

									30,561,269

Managed Health Care–0.1%
Aetna, Inc.		3.950			09/01/20		8,940		8,879,630

WellPoint, Inc.		4.350			08/15/20		5,460		5,645,493

									14,525,123

Media-Cable–0.3%
Comcast Corp.		5.150			03/01/20		3,280		3,580,039

Comcast Corp.		5.700			05/15/18		4,535		5,208,184

Comcast Corp.		6.450			03/15/37		2,000		2,293,801

Cox Communications, Inc.		7.250			11/15/15		5,000		6,022,876

DirecTV Holdings LLC		7.625			05/15/16		6,540		7,243,050

Time Warner Cable, Inc.		6.750			06/15/39		1,725		2,028,197

Time Warner Cable, Inc.		8.750			02/14/19		3,855		5,062,024

Time Warner, Inc.		5.875			11/15/16		2,595		3,007,297

									34,445,468

Media-Noncable–0.1%
Grupo Televisa SA (Mexico)		6.000			05/15/18		1,285		1,445,371

WPP Finance UK (United Kingdom)		8.000			09/15/14		3,125		3,682,710

									5,128,081

Metals–0.3%
Anglo American Capital PLC (United Kingdom)^(d)		9.375			04/08/19		4,085		5,567,691

ArcelorMittal (Luxembourg)		9.850			06/01/19		6,840		8,616,424

Freeport-McMoRan Cooper & Gold, Inc.		8.375			04/01/17		5,365		5,966,886

Rio Tinto Finance USA Ltd. (Australia)		9.000			05/01/19		5,115		7,087,578

Southern Copper Corp.		5.375			04/16/20		1,145		1,200,766

Southern Copper Corp.		6.750			04/16/40		1,655		1,797,133

Vale Overseas Ltd. (Cayman Islands)		5.625			09/15/19		3,570		3,840,713

Vale Overseas Ltd. (Cayman Islands)		6.875			11/10/39		1,040		1,174,017

									35,251,208

Multi-Line Insurance–0.0%
CNA Financial Corp.		5.875			08/15/20		4,785		4,855,141

Noncaptive-Consumer Finance–0.8%
American Express Credit Corp., Ser C		7.300			08/20/13		7,075		8,101,073

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

16 Invesco Van Kampen Equity and Income Fund


						Par
						Amount
	Coupon			Maturity		(000)		Value

Wireline–(continued)

Telefonica Europe (Netherlands)		8.250	%		09/15/30	$	5,750	$	7,596,448

Verizon Communications, Inc.		6.350			04/01/19		3,930		4,763,045

Verizon Communications, Inc.		8.950			03/01/39		3,435		5,192,512

									48,174,298

Total Corporate Bonds–10.2%									1,093,747,223

United States Treasury Obligations–6.9%
United States Treasury Bonds		3.500			02/15/39		30,000		29,840,627

United States Treasury Bonds		4.250			05/15/39		9,700		10,959,485

United States Treasury Bonds		4.375			11/15/39		13,000		14,986,562

United States Treasury Bonds		4.625			02/15/40		17,900		21,479,999

United States Treasury Bonds		6.125			11/15/27		19,000		26,623,749

United States Treasury Bonds		8.000			11/15/21		3,557		5,394,969

United States Treasury Notes		1.375			09/15/12		21,200		21,574,313

United States Treasury Notes		1.500			12/31/13		25,000		25,574,218

United States Treasury Notes		1.750			08/15/12		4,080		4,181,044

United States Treasury Notes		1.750			03/31/14		9,500		9,786,484

United States Treasury Notes		2.000			09/30/10		10,000		10,012,600

United States Treasury Notes		2.125			11/30/14		75,435		78,593,840

United States Treasury Notes		2.250			01/31/15		19,180		20,067,075

United States Treasury Notes		2.375			10/31/14		225,565		237,301,427

United States Treasury Notes		2.625			07/31/14		95,125		101,040,587

United States Treasury Notes		3.375			11/15/19		20,000		21,606,250

United States Treasury Notes		3.625			08/15/19		56,760		62,613,374

United States Treasury Notes		3.750			11/15/18		34,000		38,080,000

Total United States Treasury Obligations–6.9%									739,716,603

Foreign Government Obligations–0.3%
Brazilian Government International Bond (Brazil)		6.000			01/17/17		16,195		18,705,225

Italian Republic (Italy)		6.875			09/27/23		6,235		7,762,844

Republic of Peru (Peru)		7.125			03/30/19		1,615		2,004,457

Total Foreign Government Obligations–0.3%									28,472,526

Municipal Bonds–0.3%
California–0.0%
California St Taxable Var Purp 3		5.950			04/01/16		2,390		2,639,922

Georgia–0.1%
Municipal Elec Auth GA Build America Bonds		6.655			04/01/57		4,980		5,270,583

Municipal Elec Auth GA Build America Bonds Taxable Plt		6.637			04/01/57		2,600		2,787,538

									8,058,121

Illinois–0.1%
Chicago, IL O’Hare Intl Arpt Build America Bonds		6.395			01/01/40		1,480		1,643,792

Chicago, IL Transit Auth Sales Tax Receipts Rev Build America Bonds, Ser B		6.200			12/01/40		3,945		4,000,901

Illinois St Toll Hwy Auth Toll Hwy Rev Build America Bonds Direct Pmt Taxable Sr Priority		6.184			01/01/34		2,970		3,194,086

									8,838,779

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

19 Invesco Van Kampen Equity and Income Fund


Futures Contracts Outstanding as of August 31, 2010
			Unrealized
	Number of		Appreciation/
	Contracts		Depreciation

Long Contracts:
U.S. Treasury Note 2-Year Futures, December 2010
(Current Notional Value of $219,141 per contract)		1,741	$	186,785

Short Contracts:
U.S. Treasury Bond 30-Year Futures, December 2010
(Current Notional Value of $135,031 per contract)		262		(106,988	)

U.S. Treasury Notes 5-Year Futures, December 2010
(Current Notional Value of $120,320 per contract)		1,669		(1,294,364	)

U.S. Treasury Note 10-Year Futures, September 2010
(Current Notional Value of $126,500 per contract)		1,143		(6,892,609	)

Total Short Contracts		3,074		(8,293,961	)

Total Futures Contracts		4,815	$	(8,107,176	)

Fair Value Measurements

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below. (See Note 3 in the Notes to Financial Statements for further information regarding fair value measurements.)

The following is a summary of the inputs used as of August 31, 2010 in valuing the Fund’s investments carried at value.


	Level 1			Level 2		Level 3
				Other Significant		Significant
	Quoted Prices			Observable Inputs		Unobservable Inputs		Total

Investments in an Asset Position
Equity Securities
Common Stocks (excluding ADR securities)	$	5,978,092,108		$	—	$	—	$	5,978,092,108

ADR Securities		464,784,655			141,435,526		—		606,220,181

Convertible Preferred Stocks		143,121,805			58,980,577		—		202,102,382

Money Market Funds		248,809,770			—		—		248,809,770

Convertible Corporate Obligations		—			1,745,819,179		—		1,745,819,179

Corporate Bonds		—			1,093,747,223		—		1,093,747,223

United States Treasury Obligations		—			739,716,603		—		739,716,603

Foreign Government Obligations		—			28,472,526		—		28,472,526

Municipal Bonds		—			27,172,383		—		27,172,383

Asset Backed Securities		—			8,360,239		—		8,360,239

Short-Term Investments		—			3,398,928		—		3,398,928

Futures		186,785			—		—		186,785

Total Investments in an Asset Position	$	6,834,995,123		$	3,847,103,184	$	—	$	10,682,098,307

Investments in a Liability Position
Futures	$	(8,293,961	)	$	—	$	—	$	(8,293,961	)

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

21 Invesco Van Kampen Equity and Income Fund

Statement of Assets and Liabilities

August 31, 2010


Assets:
Investments, at value (Cost $10,643,838,115)	$	10,433,101,752

Investments in affiliated money market funds, at value and cost		248,809,770

Cash		5

Receivables:
Interest		29,212,874

Dividends		19,718,339

Investments sold		15,701,721

Fund shares sold		10,796,805

Other		69,427

Total assets		10,757,410,693

Liabilities:
Payables:
Fund shares repurchased		24,418,674

Investments purchased		21,396,681

Distributor and affiliates		6,325,745

Variation margin on futures		1,139,132

Accrued expenses		3,901,515

Total liabilities		57,181,747

Net assets	$	10,700,228,946

Net assets consist of:
Capital (Par value of $0.01 per share with an unlimited number of shares authorized)	$	11,667,764,220

Accumulated undistributed net investment income		38,387,747

Net unrealized appreciation (depreciation)		(218,843,539	)

Accumulated net realized gain (loss)		(787,079,482	)

Net assets	$	10,700,228,946

Maximum offering price per share:

Class A Shares:
Net asset value and redemption price per share (Based on net assets of $7,560,462,147 and 1,003,430,664 shares of beneficial interest issued and outstanding)	$	7.53

Maximum sales charge (5.50% of offering price)		0.44

Maximum offering price to public	$	7.97

Class B Shares:
Net asset value and offering price per share (Based on net assets of $1,278,734,229 and 173,061,758 shares of beneficial interest issued and outstanding)	$	7.39

Class C Shares:
Net asset value and offering price per share (Based on net assets of $1,211,088,790 and 163,207,905 shares of beneficial interest issued and outstanding)	$	7.42

Class R Shares:
Net asset value and offering price per share (Based on net assets of $172,143,381 and 22,753,587 shares of beneficial interest issued and outstanding)	$	7.57

Class Y Shares:
Net asset value and offering price per share (Based on net assets of $414,202,899 and 54,942,806 shares of beneficial interest issued and outstanding)	$	7.54

Institutional Share Class:
Net asset value and offering price per share (Based on net assets of $63,597,500 and 8,436,538 shares of beneficial interest issued and outstanding)	$	7.54

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

22 Invesco Van Kampen Equity and Income Fund

Statements of Operations

For the period January 1, 2010 through August 31, 2010 and the year ended December 31, 2009


	For the			For the
	eight months ended			year ended
	August 31,			December 31,
	2010			2009

Investment income:
Dividends (net of foreign taxes of $989,792 and $3,859,222)	$	118,287,775		$	192,084,331

Interest		90,705,150			143,064,008

Total income		208,992,925			335,148,339

Expenses:
Investment advisory fee		27,578,844			39,904,669

Distribution fees
Class A		13,669,074			19,676,007

Class B		3,787,038			3,892,009

Class C		8,807,407			12,776,200

Class R		593,631			745,061

Transfer agent fees — A, B, C, R and Y		10,233,551			19,240,793

Transfer agent fees Institutional		5,491			-0-

Reports to shareholders		1,582,123			1,976,225

Administrative services fees		1,026,491			1,487,794

Trustees’ and officers’ fees and benefits		245,424			262,712

Custody		231,319			484,682

Professional fees		209,428			528,502

Registration fees		109,132			149,804

Other		197,788			359,401

Total expenses		68,276,741			101,483,859

Expense reduction		71,576			-0-

Net expenses		68,205,165			101,483,859

Net investment income		140,787,760			233,664,480

Realized and unrealized gain (loss):
Realized gain (loss) on sales of unaffiliated investments		426,910,722			(19,301,613	)

Realized gain (loss) on sales of affiliated investments		-0-			(7,274,392	)

Swap contracts		80,232			150,369,078

Futures contracts		(15,351,081	)		3,235,175

Foreign currency transactions		-0-			(78,923	)

Written options		-0-			(2,340,738	)

Net realized gain		411,639,873			124,608,587

Unrealized appreciation (depreciation):
Beginning of the period		585,509,667			(1,393,959,583	)

End of the period:
Investments		(210,736,363	)		583,835,030

Futures contracts		(8,107,176	)		1,669,337

Swap contracts		-0-			5,300

		(218,843,539	)		585,509,667

Net unrealized appreciation (depreciation) during the period		(804,353,206	)		1,979,469,250

Net realized and unrealized gain (loss)		(392,713,333	)		2,104,077,837

Net increase (decrease) in net assets from operations	$	(251,925,573	)	$	2,337,742,317

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

23 Invesco Van Kampen Equity and Income Fund

Statements of Changes in Net Assets

For the period January 1, 2010 through August 31, 2010 and the years ended December 31, 2009 and 2008


	For the			For the			For the
	eight months ended			year ended			year ended
	August 31,			December 31,			December 31,
	2010			2009			2008

From investment activities:
Operations:
Net investment income	$	140,787,760		$	233,664,480		$	397,313,444

Net realized gain (loss)		411,639,873			124,608,587			(1,232,625,977	)

Net unrealized appreciation (depreciation) during the period		(804,353,206	)		1,979,469,250			(3,550,450,672	)

Change in net assets from operations		(251,925,573	)		2,337,742,317			(4,385,763,205	)

Distributions from net investment income:
Class A		(78,392,006	)		(169,870,784	)		(311,097,826	)

Class B		(13,309,304	)		(34,279,040	)		(67,418,301	)

Class C		(7,935,103	)		(18,888,668	)		(39,897,038	)

Class R		(1,478,570	)		(2,837,918	)		(4,776,162	)

Class Y		(5,662,982	)		(10,397,866	)		(12,268,513	)

Institutional Class		(53	)		-0-			-0-

		(106,778,018	)		(236,274,276	)		(435,457,840	)

Distributions from net realized gain:
Class A		-0-			-0-			(9,737,846	)

Class B		-0-			-0-			(2,204,383	)

Class C		-0-			-0-			(1,736,510	)

Class R		-0-			-0-			(154,420	)

Class Y		-0-			-0-			(327,844	)

Institutional Class		-0-			-0-			-0-

		-0-			-0-			(14,161,003	)

Total distributions		(106,778,018	)		(236,274,276	)		(449,618,843	)

Net change in net assets from investment activities		(358,703,591	)		2,101,468,041			(4,835,382,048	)

From capital transactions:
Proceeds from shares sold		1,129,565,763			1,465,117,527			2,256,739,415

Net asset value of shares issued through dividend reinvestment		98,637,404			217,024,419			410,686,331

Cost of shares repurchased		(2,234,360,492	)		(3,473,291,737	)		(5,308,254,206	)

Net change in net assets from capital transactions		(1,006,157,325	)		(1,791,149,791	)		(2,640,828,460	)

Total increase (decrease) in net assets		(1,364,860,916	)		310,318,250			(7,476,210,508	)

Net assets:
Beginning of the period		12,065,089,862			11,754,771,612			19,230,982,120

End of the period (including accumulated undistributed net investment income (loss) of $38,387,747, $(347,446) and $(26,087,660), respectively)	$	10,700,228,946		$	12,065,089,862		$	11,754,771,612

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

24 Invesco Van Kampen Equity and Income Fund

Financial Highlights

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.


	Class A Shares
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	7.79		$	6.45		$	8.84		$	9.12		$	8.68		$	8.62

Net investment income		0.10	^(a)		0.15	^(a)		0.20	^(a)		0.22	^(a)		0.20	^(a)		0.17

Net realized and unrealized gain (loss)		(0.28	)		1.34			(2.36	)		0.08			0.86			0.49

Total from investment operations		(0.18	)		1.49			(2.16	)		0.30			1.06			0.66

Less:
Distributions from net investment income		0.08			0.15			0.22			0.22			0.20			0.18

Distributions from net realized gain		-0-			-0-			0.01			0.36			0.42			0.42

Total distributions		0.08			0.15			0.23			0.58			0.62			0.60

Net asset value, end of the period	$	7.53		$	7.79		$	6.45		$	8.84		$	9.12		$	8.68

Total return		(2.40	)%^(b)		23.51	%^(c)		(24.78	)%^(c)		3.26	%^(c)		12.53	%^(c)		7.81	%^(c)

Net assets at end of the period (in millions)		$7,560.5			$8,395.7			$8,214.1			$13,332.5			$12,604.9			$10,376.7

Ratio of expenses to average net assets		0.78	%^(d)		0.82	%		0.79	%		0.76	%		0.78	%		0.78	%

Ratio of net investment income to average net assets		1.89	%^(d)		2.15	%		2.59	%		2.32	%		2.29	%		1.98	%

Portfolio turnover^(e)		24	%		78	%		56	%		35	%		39	%		38	%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $8,219,270.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

25 Invesco Van Kampen Equity and Income Fund

Financial Highlights—(continued)


	Class B Shares
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	7.64		$	6.33		$	8.68		$	8.97		$	8.55		$	8.49

Net investment income		0.09	^(a)		0.14	^(a)		0.20	^(a)		0.17	^(a)		0.13	^(a)		0.11

Net realized and unrealized gain (loss)		(0.27	)		1.32			(2.32	)		0.08			0.84			0.49

Total from investment operations		(0.18	)		1.46			(2.12	)		0.25			0.97			0.60

Less:
Distributions from net investment income		0.07			0.15			0.22			0.18			0.13			0.12

Distributions from net realized gain		-0-			-0-			0.01			0.36			0.42			0.42

Total distributions		0.07			0.15			0.23			0.54			0.55			0.54

Net asset value, end of the period	$	7.39		$	7.64		$	6.33		$	8.68		$	8.97		$	8.55

Total return		(2.40	)%^(b)(c)		23.48	%^(d)(f)		(24.78	)%^(d)(f)		2.71	%^(d)(f)		11.66	%^(d)		7.15	%^(d)

Net assets at end of the period (in millions)		$1,278.7			$1,594.1			$1,693.8			$2,978.3			$3,270.4			$3,222.1

Ratio of expenses to average net assets		0.91	%^(c)(e)		0.82	%^(f)		0.79	%^(f)		1.25	%^(f)		1.53	%		1.53	%

Ratio of net investment income to average net assets		1.76	%^(c)(e)		2.16	%^(f)		2.59	%^(f)		1.83	%^(f)		1.54	%		1.22	%

Portfolio turnover^(g)		24	%		78	%		56	%		35	%		39	%		38	%


^(a)		Based on 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)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of 0.38%.
^(d)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $1,479,602.
^(f)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of less than 1%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.


	Class C Shares
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	7.68		$	6.36		$	8.72		$	9.01		$	8.58		$	8.52

Net investment income		0.06	^(a)		0.09	^(a)		0.14	^(a)		0.14	^(a)		0.14	^(a)		0.11

Net realized and unrealized gain (loss)		(0.27	)		1.33			(2.32	)		0.08			0.84			0.49

Total from investment operations		(0.21	)		1.42			(2.18	)		0.22			0.98			0.60

Less:
Distributions from net investment income		0.05			0.10			0.17			0.15			0.13			0.12

Distributions from net realized gain		-0-			-0-			0.01			0.36			0.42			0.42

Total distributions		0.05			0.10			0.18			0.51			0.55			0.54

Net asset value, end of the period	$	7.42		$	7.68		$	6.36		$	8.72		$	9.01		$	8.58

Total return		(2.81	)%^(b)(c)		22.63	%^(d)(f)		(25.33	)%^(d)(f)		2.41	%^(d)		11.73	%^(d)		7.12	%^(d)

Net assets at end of the period (in millions)		$1,211.1			$1,375.5			$1,340.4			$2,333.4			$2,267.4			$1,968.8

Ratio of expenses to average net assets		1.52	%^(c)(e)		1.56	%^(f)		1.50	%^(f)		1.51	%		1.53	%		1.53	%

Ratio of net investment income to average net assets		1.15	%^(c)(e)		1.40	%^(f)		1.88	%^(f)		1.57	%		1.54	%		1.22	%

Portfolio turnover^(g)		24	%		78	%		56	%		35	%		39	%		38	%


^(a)		Based on 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)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of 0.99%.
^(d)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $1,334,831.
^(f)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of less than 1%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

26 Invesco Van Kampen Equity and Income Fund

Financial Highlights—(continued)


	Class R Shares
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	7.83		$	6.48		$	8.87		$	9.16		$	8.72		$	8.65

Net investment income		0.09	^(a)		0.13	^(a)		0.18	^(a)		0.19	^(a)		0.18	^(a)		0.15

Net realized and unrealized gain (loss)		(0.28	)		1.35			(2.36	)		0.08			0.86			0.50

Total from investment operations		(0.19	)		1.48			(2.18	)		0.27			1.04			0.65

Less:
Distributions from net investment income		0.07			0.13			0.20			0.20			0.18			0.16

Distributions from net realized gain		-0-			-0-			0.01			0.36			0.42			0.42

Total distributions		0.07			0.13			0.21			0.56			0.60			0.58

Net asset value, end of the period	$	7.57		$	7.83		$	6.48		$	8.87		$	9.16		$	8.72

Total return		(2.51	)%^(b)		23.25	%^(c)		(24.89	)%^(c)		2.87	%^(c)		12.20	%^(c)		7.65	%^(c)

Net assets at end of the period (in millions)		$172.1			$169.7			$148.4			$192.9			$151.8			$101.8

Ratio of expenses to average net assets		1.03	%^(d)		1.07	%		1.04	%		1.01	%		1.03	%		1.03	%

Ratio of net investment income to average net assets		1.64	%^(d)		1.88	%		2.35	%		2.07	%		2.04	%		1.73	%

Portfolio turnover^(e)		24	%		78	%		56	%		35	%		39	%		38	%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period. These returns include combined Rule 12b-1 fees and service fees of up to 0.50% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $178,333.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.


	Class Y Sharesˆ
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	7.79		$	6.45		$	8.84		$	9.12		$	8.69		$	8.61

Net investment income		0.11	^(a)		0.16	^(a)		0.22	^(a)		0.24	^(a)		0.23	^(a)		0.17

Net realized and unrealized gain (loss)		(0.28	)		1.35			(2.36	)		0.08			0.84			0.53

Total from investment operations		(0.17	)		1.51			(2.14	)		0.32			1.07			0.70

Less:
Distributions from net investment income		0.08			0.17			0.24			0.24			0.22			0.20

Distributions from net realized gain		-0-			-0-			0.01			0.36			0.42			0.42

Total distributions		0.08			0.17			0.25			0.60			0.64			0.62

Net asset value, end of the period	$	7.54		$	7.79		$	6.45		$	8.84		$	9.12		$	8.69

Total return		(2.15	)%^(b)		23.82	%^(c)		(24.60	)%^(c)		3.52	%^(c)		12.68	%^(c)		8.33	%^(c)

Net assets at end of the period (in millions)		$414.2			$530.0			$358.1			$392.8			$154.7			$58.7

Ratio of expenses to average net assets		0.53	%^(d)		0.57	%		0.54	%		0.51	%		0.53	%		0.55	%

Ratio of net investment income to average net assets		2.15	%^(d)		2.34	%		2.85	%		2.57	%		2.53	%		2.17	%

Portfolio turnover^(e)		24	%		78	%		56	%		35	%		39	%		38	%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period. This return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $512,136.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
ˆ		On June 1, 2010, the Fund’s former Class I Shares were reorganized into Class Y Shares.

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

27 Invesco Van Kampen Equity and Income Fund

Financial Highlights—(continued)


	Institutional Class
	June 1, 2010
	(Commencement of
	operations) to
	August 31,
	2010

Net asset value, beginning of the period	$	7.59

Net investment income^(a)		0.03

Net realized and unrealized gain (loss)		(0.04	)

Total from investment operations		(0.01	)

Distributions from net investment income		0.04

Net asset value, end of the period	$	7.54

Total return^(b)		(0.13	)%

Net assets at end of the period (in millions)	$	63.6

Ratio of expenses to average net assets^(c)		0.45	%

Ratio of net investment income to average net assets^(c)		1.79	%

Portfolio turnover^(d)		24	%


^(a)		Based on 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)		Ratios are annualized and based on average daily net assets (000’s omitted) of $44,050.
^(d)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from December 31 to August 31.

Prior to June 1, 2010, the Fund operated as Van Kampen Equity and Income Fund (the “Acquired Fund”). The Acquired Fund was reorganized on June 1, 2010 (The “Reorganization Date”) through the transfer of all its assets and liabilities to the Fund (the “Reorganization”).

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

The Fund’s investment objective is to seek the highest possible income consistent with safety of principal. Long-term growth of capital is an important secondary investment objective.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		A security listed or traded on an exchange (except convertible bonds) 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

28 Invesco Van Kampen Equity And Income Fund


		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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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 income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

29 Invesco Van Kampen Equity And Income Fund


E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in Corporate Loans and Corporate Debt Securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
J.		Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk.
		Interest rate, total return, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
		A CDS is an agreement between two parties (“Counterparties”) to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement.
		Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
		Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the value of the

30 Invesco Van Kampen Equity And Income Fund


		contract. The risk may be mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations.
K.		Dollar Roll and Forward Commitment Transactions — The Fund may engage in dollar roll and forward commitment transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. These transactions are often conducted on a to be announced (“TBA”) basis. In a TBA mortgage-backed transaction, the seller does not specify the particular securities to be delivered. Rather, a Fund agrees to accept any security that meets specified terms, such as an agreed upon issuer, coupon rate and terms of the underlying mortgages. TBA mortgage-backed transactions generally settle once a month on a specific date.
		In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to purchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price and future date. The mortgage-backed securities to be purchased will bear the same coupon as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. Based on the typical structure of dollar roll transactions by the Fund, the dollar roll transactions are accounted for as financing transactions in which the Fund receives compensation as either a “fee” or a “drop”. “Fee” income which is agreed upon amongst the parties at the commencement of the dollar roll and the “drop” which is the difference between the selling price and the repurchase price of the mortgage-backed securities are amortized to income. During the period between the sale and purchase settlement dates, the Fund will not be entitled to receive interest and principal payments on securities purchased and not yet settled. Proceeds of the sale may be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. Dollar roll transactions are considered borrowings under the 1940 Act.
		Forward commitment transactions involve commitments by the Fund to acquire or sell TBA mortgage-backed securities from/to a financial institution, such as a bank or broker-dealer at a specified future date and amount. The TBA mortgage-backed security is marked to market until settlement and the unrealized appreciation or depreciation is recorded in the statement of operations.
		At the time the Fund enters into the dollar roll or forward commitment transaction, mortgage-backed securities or other liquid assets held by the Fund having a dollar value equal to the purchase price or in an amount sufficient to honor the forward commitment will be segregated.
		Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed the return on the securities sold.
		Forward commitment transactions involve the risk that a counter-party to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Settlement dates of forward commitment transactions may be a month or more after entering into these transactions and as a result the market values of the securities may vary from the purchase or sale prices. Therefore, forward commitment transactions may increase the Fund’s overall interest rate exposure.
L.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
M.		Call Options Written — The Fund may write call options. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. Written call options are recorded as a liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently valued to reflect the current market value of the option written. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized gains and losses on these contracts are included in the Statement of Operations. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

31 Invesco Van Kampen Equity And Income Fund


N.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
		The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
O.		Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $150 million		0	.50%

Next $100 million		0	.45%

Next $100 million		0	.40%

Over $350 million		0	.35%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $17,678,037 and $39,904,669 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period January 1, 2010 to May 31, 2010 and for the year ended December 31, 2009, respectively.

Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 0.82%, 1.57%, 1.57%, 1.07%, 0.57% and 0.57% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

For the period ended August 31, 2010, the Adviser waived fees of $71,576.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $299,086 and $770,617 to VKII for the period January 1, 2010 to May 31, 2010 and the year ended December 31, 2009, respectively. For the period ended August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended August 31, 2010, IIS was paid $4,245,770 for providing such services. Prior to the Reorganization, the Acquired Fund paid $2,482,997 and $5,797,296 to Van Kampen Investor Services Inc., which served as the Acquired

32 Invesco Van Kampen Equity And Income Fund

Fund’s transfer agent, for the period January 1, 2010 to May 31, 2010 and for the year ended December 31, 2009. For the period ended August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares, Class C shares and Class R shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% each of Class B and Class C average daily net assets and up to 0.50% of Class R average daily net assets.

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B, Class C and Class R shares. Pursuant to such agreements, the Acquired Fund paid $17,152,807 and $37,089,277 to VKFI for the period January 1, 2010 to May 31, 2010 and the year ended December 31, 2009, respectively.

For the period ended August 31, 2010 and the year ended December 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $281,605 in front-end sales commissions from the sale of Class A shares and $2,505, $451,290 and $12,009 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period January 1, 2010 to May 31, 2010, VKFI retained $850,761 in front-end sales commissions from the sale of Class A shares and $839,804, for CDSC imposed on redemptions by shareholders. For the year ended December 31, 2009, VKFI retained $1,756,500 in front-end sales commissions from the sale of Class A shares and $2,436,500, for CDSC imposed on redemptions by shareholders.

The Acquired Fund paid brokerage commissions to Morgan Stanley & Co., Inc., an affiliate of Van Kampen, totaling $0 and $338,204 for the period January 1, 2010 to May 31, 2010 and the year ended December 31, 2009, respectively.

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

NOTE 3—Additional Valuation Information


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

33 Invesco Van Kampen Equity And Income Fund

NOTE 4—Derivative Investments

Value of Derivative Instruments at Period-End

The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/ Derivative Type	Assets		Liabilities

Interest rate risk
Futures contracts^(a)	$	186,785	$	(8,293,961	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the year ended August 31, 2010

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


	Location of Gain (Loss) on
	Statement of Operations
	Futures*			Swap Agreements*

Realized Gain (Loss)
Credit risk	$	-0-		$	80,232

Interest rate risk		(15,351,081	)		-0-

Total	$	(15,351,081	)	$	80,232

Change in Unrealized Appreciation (Depreciation)
Credit risk	$	-0-		$	(5,300	)

Interest rate risk		(9,776,513	)		-0-

Total	$	(9,776,513	)	$	(5,300	)


*	The average value of futures and swap agreements outstanding during the period was $632,803,551, and $963,000, respectively.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

For the period ended August 31, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. For the period January 1, 2010 to May 31, 2010, the Acquired Fund recognized expenses of $161,427 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”), of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund. For the year ended December 31, 2009, the Acquired Fund recognized expenses of $485,300 representing legal services provided by Skadden.

NOTE 6—Cash Balances

34 Invesco Van Kampen Equity And Income Fund

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Eight Months Ended August 31, 2010 and the Years Ended December 31, 2009 and 2008:


	August 31, 2010		December 31, 2009		December 31, 2008

Ordinary income	$	106,778,018	$	236,274,276	$	435,457,840

Long-term capital gain		-0-		-0-		14,161,003

Total distributions	$	106,778,018	$	236,274,276	$	449,618,843

Tax Components of Net Assets at Period-End:


	August 31, 2010

Undistributed ordinary income	$	48,938,655

Net unrealized appreciation (depreciation) — investments		(225,802,461	)

Capital loss carryforward		(790,671,468	)

Shares of beneficial interest		11,667,764,220

Total net assets	$	10,700,228,946

The Fund utilized $396,662,056 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

08/31/2016	$	352,132,679

08/31/2017		438,538,789

Total capital loss carryforward	$	790,671,468


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund from January 1, 2010 to August 31, 2010 was $2,408,045,187 and $3,041,524,617, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $317,187,820 and $620,377,013. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	530,952,773

Aggregate unrealized (depreciation) of investment securities		(756,755,234	)

Net unrealized appreciation (depreciation) of investment securities	$	(225,802,461	)

Cost of investments for tax purposes is $10,907,713,983.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, accumulated undistributed net investment income (loss) was increased by $4,725,451, accumulated net realized gain (loss) was decreased by $2,983,612 and shares of beneficial interest decreased by $1,741,839. This reclassification had no effect on the net assets of the Fund.

35 Invesco Van Kampen Equity And Income Fund

NOTE 10—Share Information


	For the						For the						For the
	eight months ended						year ended						year ended
	August 31, 2010^(a)						December 31, 2009						December 31, 2008
	Shares			Value			Shares			Value			Shares			Value

Sales:
Class A		98,417,827^(b	⁾	$	775,393,804^(b	⁾		152,455,661		$	1,019,540,444			209,752,460		$	1,632,378,217

Class B		9,862,974			76,560,048			17,040,669			112,317,617			20,444,876			156,684,986

Class C		8,006,841			62,607,051			14,723,990			97,030,036			22,766,621			174,710,806

Class R		5,995,073			47,243,796			7,528,313			50,828,631			11,383,764			90,560,554

Class Y		13,491,946			104,059,515			27,440,102			185,400,799			26,999,012			202,404,852

Institutional Class		8,655,060			63,701,549			-0-			-0-			-0-			-0-

Total Sales		144,429,721		$	1,129,565,763			219,188,735		$	1,465,117,527			291,346,733		$	2,256,739,415

Dividend reinvestment:
Class A		9,608,352		$	74,626,926			24,446,316		$	161,015,444			40,048,573		$	302,283,375

Class B		1,636,496			12,524,790			4,987,667			32,122,352			8,744,988			64,763,050

Class C		870,817			6,684,401			2,469,812			15,782,993			4,593,803			34,171,381

Class R		160,236			1,249,945			346,588			2,295,727			519,488			3,913,802

Class Y		459,192			3,551,289			864,221			5,807,903			743,947			5,554,723

Institutional Class		7			53			-0-			-0-			-0-			-0-

Total Dividend Reinvestment		12,735,100		$	98,637,404			33,114,604		$	217,024,419			54,650,799		$	410,686,331

Repurchases:
Class A		(182,005,149	)	$	(1,429,879,461	)		(373,158,614	)	$	(2,461,244,129	)		(485,002,634	)	$	(3,687,403,278	)

Class B		(46,975,980	)^(b)		(363,246,164	)^(b)		(81,100,246	)		(528,724,358	)		(104,834,921	)		(783,122,460	)

Class C		(24,667,895	)		(191,292,984	)		(48,861,338	)		(317,406,185	)		(84,462,156	)		(633,567,762	)

Class R		(5,083,175	)		(40,217,738	)		(9,103,508	)		(60,374,499	)		(10,732,968	)		(82,103,959	)

Class Y		(27,008,434	)		(208,035,130	)		(15,826,484	)		(105,542,566	)		(16,669,258	)		(122,056,747	)

Institutional Class		(218,529	)		(1,689,015	)		-0-			-0-			-0-			-0-

Total Repurchases		(285,959,162	)	$	(2,234,360,492	)		(528,050,190	)	$	(3,473,291,737	)		(701,701,937	)	$	(5,308,254,206	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 35% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. In addition, 0.6% of the outstanding shares of the Fund are owned by Invesco or an investment advisor under common control with Invesco.
^(b)		Includes automatic conversion of 13,997,523 Class B shares into 13,730,129 Class A shares at a value of $107,228,226.

NOTE 11—Change in Independent Registered Public Accounting Firm

36 Invesco Van Kampen Equity And Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Van Kampen Equity and Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Equity and Income Fund (formerly known as Van Kampen Equity and Income Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended December 31, 2009 and prior were audited by other independent auditors whose report dated February 19, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

37 Invesco Van Kampen Equity and Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. With the exception of the actual ending account values and expenses of the Institutional Class shares, the example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period March 1, 2010, through August 31, 2010. The actual ending account value and expenses of the Institutional Class shares in the example below are based on an investment of $1,000 invested as of close of business June 1, 2010 (commencement date) and held through August 31, 2010.

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 (as of close of business June 1, 2010 through August 31, 2010 for the Institutional Class shares). Because the actual ending account value and expense information in the example is not based upon a six month period for the Institutional Class shares, the ending account value and expense information may not provide a meaningful comparison to mutual funds that provide such information for a full six month period.

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period³		Ratio⁴
A	$	1,000.00	$	967.29	$	3.82	$	1,021.32	$	3.92		0.77	%

B		1,000.00		967.18		4.71		1,020.42		4.84		0.95

C		1,000.00		963.17		7.47		1,017.59		7.68		1.51

R		1,000.00		966.26		5.06		1,020.06		5.19		1.02

Y		1,000.00		968.56		2.58		1,022.58		2.65		0.52

Institutional		1,000.00		998.74		1.12		1,022.94		2.29		0.45


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010, through August 31, 2010 (as of close of business June 1, 2010 through August 31, 2010 for the Institutional Class shares), 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 184/365 to reflect the most recent fiscal half year. For the Institutional Class shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 91 (as of close of business June 1, 2010 through August 31, 2010)/365. Because the Institutional Class shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.
³	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in the Institutional Class shares of the Fund and other funds because such data is based on a full six month period.
⁴	The expense ratios for Class B and C Shares reflect actual 12b-1 fees of less than 1%.

38 Invesco Van Kampen Equity And Income Fund


	Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. And Its Affiliates

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen Equity and Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

39 Invesco Van Kampen Equity and Income Fund

Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

40 Invesco Van Kampen Equity and Income Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


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

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Van Kampen Equity Premium Income Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Van Kampen Equity Premium Income Fund

Management’s Discussion of Fund Performance

Performance summary

As part of Invesco’s June 1, 2010, acquisition of Morgan Stanley’s retail asset management business, Van Kampen Equity Premium Income Fund was reorganized into Invesco Van Kampen Equity Premium Income Fund. Effective June 25, 2010, Anthony Shufflebotham, Glen Murphy, Ralph Coutant, Lawson McWhorter and Anne Unflat managed the Fund. A listing of your Fund’s managers appears later in this report.

For the fiscal year ended August 31, 2010, Class A shares of Invesco Van Kampen Equity Premium Income Fund, at net asset value (NAV), lagged the CBOE S&P 500 BuyWrite Index and the Custom Invesco Van Kampen Equity Premium Income Index (75% CBOE S&P 500 BuyWrite Index/25% S&P 500 Index), but outperformed the broad-based S&P 500 Index. The Fund seeks current income with a secondary investment objective of long-term capital appreciation.

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

Fund vs. Indexes


Class A Shares	5.26	%

Class B Shares	4.40

Class C Shares	4.40

Class Y Shares	5.37

S&P 500 Index^▼ (Broad Market Index)	4.93

Custom Invesco Van Kampen Equity Premium Income Index^§ (Style-Specific Index)	5.99

CBOE S&P 500 BuyWrite Index^s (Style-Specific Index)	6.28

^▼ Lipper Inc.; ^§ Invesco, Lipper Inc.; ^s Bloomberg

How we invest

We manage your Fund to provide exposure to large-cap core equity stocks using both an options portfolio and an underlying stock portfolio. The underlying stock portfolio strives to outperform the S&P 500 Index while potentially minimizing the amount of additional risk relative to the index. The Fund may be used as a long-term allocation to large cap stocks that complements other style-specific strategies within a diversified asset allocation strategy.

Our investment process integrates the following key steps:

n Universe development
n Stock rankings
n Risk assessment

n Portfolio construction
n Trading

While the companies included in the S&P 500 Index are used as a general guide for developing the Fund’s investable universe, non-benchmark stocks may also be considered. Each stock in the universe is evaluated on four factors: company earnings momentum, price trend, management action and relative valuation. The scores from these four factors are combined to arrive at an overall alpha score (excess return forecast) for each stock. Each alpha score is relative to the other securities within the same industry. Stocks are also evaluated on a multitude of other factors to develop a stock-specific risk forecast and transaction cost forecast.

For the options portfolio, the Fund writes CBOE S&P 500 call options. This type of investment is a derivative instrument since the price is derived from one or more underlying assets. The derivative itself is a contract between two or more parties. The call that is sold (or written) will have approximately one month remaining to expiration, with an exercise price just above the prevailing index level (i.e., slightly out of the money). The premium collected from the sale of the call is added to the portfolio’s total value. The call is held until its expiration, at which time a new one-month, near-the-money call is written. The expired option, if exercised, is settled in cash. Near the money is the relationship between an

Portfolio Composition

By sector


Information Technology	20.1	%

Consumer Discretionary	15.8

Financials	13.3

Health Care	12.7

Energy	12.4

Consumer Staples	8.6

Telecommunication Services	5.2

Materials	4.5

Industrials	2.7

Utilities	1.6

Money Market Funds Plus Liabilities in Excess of Other Assets	3.1

Top 10 Equity Holdings*




1.	Exxon Mobil Corp.	4.8	%

2.	Procter & Gamble Co.	3.8

3.	Microsoft Corp.	3.8

4.	AT&T, Inc.	3.7

5.	International Business Machines Corp.	3.6

6.	Chevron Corp.	3.0

7.	Apple, Inc.	2.9

8.	Wal-Mart Stores, Inc.	2.6

9.	American Express Co.	2.4

10.	Hewlett-Packard Co.	2.4


Total Net Assets		$158.8 million

Total Number of Holdings*		76

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

*Excluding money market fund holdings.

Invesco Van Kampen Equity Premium Income Fund

option’s strike price and the value of the underlying instrument, where the strike price is near the underlying instrument’s current market price.

Market conditions and your Fund

At the start of the fiscal year covered by this report, investors were optimistic about the prospect of an improving economy given accommodative monetary policy, fiscal stimulus and improving strength in the manufacturing sector. Optimism turned to pessimism when there was little good news to counter the seeds of economic troubles planted in the first quarter, which were already weighing heavily on the market. In the U.S., waning consumer confidence, a worsening employment outlook and continued pressures in the financial sector con-firmed that economic growth was stalling. Internationally, concerns arose from news of slowing economic growth in China and ongoing concerns about debt burdens in the southern eurozone, despite support from their northern peers. With little positive news to support the market, steady gains became steep losses.

At the beginning of the 12-month period covered by this report, riskier assets outperformed securities considered safe havens, such as U.S. Treasury securities. This trend continued through the middle of April 2010. However, renewed credit problems overseas and the market correction that occurred in May and continued into August created a more uncertain environment — prompting investors to favor potential safety over risk. Although recent market volatility created challenges, it also created some investment opportunities as companies with positive fundamentals became more attractively valued.

All sectors of the market posted positive performance, aside from financials, for the reporting period as equity markets rallied through the first quarter of 2010 and in July 2010.¹ All investment styles posted positive returns, with mid-cap stocks outperforming large-cap stocks and growth stocks outpacing value stocks for the period.¹

The Fund’s performance during the period relative to the Custom Invesco Van Kampen Equity Premium Income Index was attributable to both the options portfolio and the underlying stock portfolio. During the fiscal year, the Fund wrote CBOE S&P 500 call options.

On a sector basis, consumer staples, consumer discretionary, energy, health care and industrials contributed positively to the Fund’s absolute return for the fiscal

year. Stock selection within the health care and energy sectors were primary contributors. Detractors from overall positive Fund performance included stocks in the financials and information technology (IT) sectors.

From an individual stock perspective, AT&T was a top contributor from the telecommunication services sector, and both Merck and Express Scripts contributed positively to the Fund’s relative and absolute performance from the health care sector.

Detractors from Fund performance included Bank of America, from the financials sector, and SanDisk and Micron Technology from the IT sector.

For the fiscal year ended August 31, 2010, a portion of the Fund’s total distributions was characterized as a return of capital for federal income tax purposes. A return of capital occurs when the aggregate amount of the Fund’s distributions exceed the Fund’s aggregate earnings and profits during its fiscal year. It is determined at the end of the fiscal year whether all or a portion of the Fund’s distributions should be characterized as a return of capital. When a return of capital occurs, some of the money an investor invested in the Fund is returned to the investor. Such return of capital distributions may decrease the Fund’s assets and may increase the Fund’s expense ratios.

In a world of moderate but positive economic growth, low inflation and prolonged government liquidity support, we believe the potential for equities may exist. Further, valuations remain reasonable by historical standards, especially after the pullback during the second quarter of 2010.

We welcome new investors who joined the Fund during the fiscal year and would like to thank all of our shareholders for their investment in Invesco Van Kampen Equity Premium Income Fund.

Lipper Inc.

See important Fund and index disclosures later in this report.

Ralph Coutant

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity Premium Income Fund. Mr. Coutant joined Invesco in 1999. He earned a B.S. in business administration from the University of New Hampshire.

Glen Murphy

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity Premium Income Fund. Mr. Murphy joined Invesco in 1995. He earned a B.A. in business administration from the University of Massachusetts at Amherst and an M.S. in finance from Boston College.

Lawson McWhorter

Portfolio manager, is manager of Invesco Van Kampen Equity Premium Income Fund. Mr. McWhorter joined Invesco in 2005. He began his investment career in 1994. Mr. McWhorter earned a B.A. with cum laude honors from Davidson College. He is a Chartered Market Technician.

Anthony Shufflebotham

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Equity Premium Income Fund. Mr. Shufflebotham joined Invesco in 1998. He earned a B.S. in economics, accounting and finance from Oxford Brookes University and an M.S. in finance from Boston College.

Anne Unflat

Portfolio manager, is manager of Invesco Van Kampen Equity Premium Income Fund. Ms. Unflat began her investment career in 1988. She graduated magna cum laude from Queens College with a B.A. in economics. She earned her M.B.A. in finance from St. John’s University.

Invesco Van Kampen Equity Premium Income Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable
sales charges


Class A Shares

Inception (6/26/06)		-2.56	%

1	Year	-0.56


Class B Shares

Inception (6/26/06)		-2.35	%

1	Year	-0.59


Class C Shares

Inception (6/26/06)		-1.97	%

1	Year	3.40


Class Y Shares

Inception (6/26/06)		-1.04	%

1	Year	5.37

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen Equity Premium Income Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Equity Premium Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.24%, 1.99%, 1 .99% and 0.99%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (6/26/06)		-3.55	%

1	Year	6.23


Class B Shares

Inception (6/26/06)		-3.27	%

1	Year	6.66


Class C Shares

Inception (6/26/06)		-2.88	%

1	Year	10.66


Class Y Shares

Inception (6/26/06)		-1.95	%

1	Year	12.82

prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.39%, 2.14%, 2.14% and 1.14%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco Van Kampen Equity Premium Income Fund

Invesco Van Kampen Equity Premium Income Fund’s investment objective is to seek current income and its secondary investment objective is to seek long-term capital appreciation.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and foreign taxation issues.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		During periods in which the equity markets are generally unchanged or falling, a diversified equity portfolio such as that held by the Fund which utilizes a covered call option writing strategy may outperform the same portfolio without a covered call option writing strategy because of the additional premiums received from writing covered call options. Similarly, in a modestly rising market, the Fund may also outperform the same portfolio without a covered call option writing strategy. However, in sharply rising markets, the Fund is expected to underperform the

		same portfolio that does not employ a covered call option writing strategy. This underperformance in a sharply rising market could be significant. The Fund’s covered call option writing strategy may not fully protect it against declines in the value of the market.

n		In adverse or volatile market conditions, a portion or all of the Fund’s monthly distributions may constitute a return of part of your original investment or a return of capital. The adviser believes, given current and past market conditions, that there is a strong likelihood that substantially all, if not all, of the distributions for the fiscal year ended August 31, 2010, may be characterized as a return of capital. Such return of capital distributions will decrease the Fund’s assets and may increase the Fund’s expense ratio.

n		Shares of exchange-traded funds (ETFs) have many of the same risks as direct investments in common stocks or bonds. In addition, certain ETFs involve leverage which may magnify the gains or losses realized from their underlying investments.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

About indexes used in this report

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

The Custom Invesco Van Kampen Equity Premium Index is an unmanaged index created by Invesco to serve as a benchmark for Invesco Van Kampen Equity Premium Income Fund, and is composed of the following indexes: S&P 500 Index (25%) and CBOE BXM Index (75%).

The CBOE S&P 500 BuyWrite Index is an unmanaged index designed to show the hypothetical performance of a portfolio that engages in a buy-write strategy using S&P 500 Index call options.

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

Other information

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

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		VEPAX
Class B Shares		VEPBX
Class C Shares		VEPCX
Class Y Shares		VEPIX

Invesco Van Kampen Equity Premium Income Fund

Schedule of Investments

August 31, 2010


	Shares		Value

Common Stocks–97.9%
Airlines–0.4%
Delta Air Lines, Inc.^(a)		57,000	$	596,220

Apparel, Accessories & Luxury Goods–0.5%
Jones Apparel Group, Inc.		56,100		862,818

Apparel Retail–1.4%
Gap, Inc.		129,700		2,190,633

Auto Parts & Equipment–0.1%
Magna International, Inc. (Canada)		2,500		194,425

Automobile Manufacturers–2.3%
Ford Motor Co.^(a)		324,700		3,665,863

Biotechnology–2.4%
Amgen, Inc.^(a)		74,100		3,782,064

Broadcasting & Cable TV–0.1%
Comcast Corp.		11,700		200,304

Casinos & Gaming–0.3%
Las Vegas Sands Corp.^(a)		16,200		458,946

Communications Equipment–0.2%
Tellabs, Inc.		41,900		297,490

Computer Hardware–9.1%
Apple, Inc.^(a)		19,050		4,636,199

Dell, Inc.^(a)		30,100		354,277

Hewlett-Packard Co.		99,100		3,813,368

IBM Corp.		46,200		5,693,226

				14,497,070

Computer Storage & Peripherals–3.4%
Lexmark International, Inc.^(a)		61,700		2,158,883

SanDisk Corp.^(a)		71,300		2,370,012

Seagate Technology PLC (Ireland)^(a)		89,700		908,661

				5,437,556

Construction & Farm Machinery & Heavy Trucks–1.0%
Joy Global, Inc.		6,200		351,788

Oshkosh Corp.^(a)		49,100		1,221,608

				1,573,396

Consumer Finance–4.1%
American Express Co.		95,900		3,823,533

Capital One Financial Corp.		69,600		2,635,056

				6,458,589

Data Processing & Outsourced Services–0.5%
Visa, Inc., Class A		12,600		869,148

Department Stores–2.0%
Macy’s, Inc.		162,700		3,162,888

Diversified Banks–1.2%
Wells Fargo & Co.		84,300		1,985,265

Diversified Metals & Mining–2.7%
Freeport-McMoRan Copper & Gold, Inc.		26,800		1,929,064

Titanium Metals Corp.^(a)		126,900		2,299,428

				4,228,492

Education Services–0.4%
Career Education Corp.^(a)		36,600		641,598

Electronic Manufacturing Services–0.6%
Flextronics International Ltd. (Singapore)^(a)		208,600		1,028,398

Footwear–0.6%
Crocs, Inc.^(a)		71,300		891,250

General Merchandise Stores–0.5%
Target Corp.		15,700		803,212

Health Care Distributors–0.1%
Cardinal Health, Inc.		6,500		194,740

Home Improvement Retail–1.0%
Home Depot, Inc.		54,500		1,515,645

Homebuilding–3.1%
D.R. Horton, Inc.		271,900		2,789,694

Lennar Corp.		159,700		2,103,249

				4,892,943

Household Products–3.8%
Procter & Gamble Co.		101,300		6,044,571

Hypermarkets & Super Centers–2.5%
Wal-Mart Stores, Inc.		80,900		4,056,326

Independent Power Producers & Energy Traders–1.6%
Constellation Energy Group, Inc.		85,000		2,493,050

Industrial Conglomerates–0.7%
General Electric Co.		76,000		1,100,480

Industrial Machinery–0.7%
Illinois Tool Works, Inc.		11,800		486,868

Ingersoll-Rand PLC (Ireland)		2,600		84,578

Parker Hannifin Corp.		8,400		496,944


				1,068,390

Integrated Oil & Gas–10.7%
Chevron Corp.		63,400		4,701,744

ConocoPhillips		49,200		2,579,556

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

9 Invesco Van Kampen Equity Premium Income Fund


	Shares		Value

Integrated Oil & Gas–(continued)

Exxon Mobil Corp.		129,500	$	7,661,220

Occidental Petroleum Corp.		28,500		2,082,780

				17,025,300

Integrated Telecommunication Services–4.7%
AT&T, Inc.		218,200		5,897,946

Verizon Communications, Inc.		51,100		1,507,961

				7,405,907

Internet Software & Services–0.2%
Akamai Technologies, Inc.^(a)		1,900		87,533

AOL, Inc.^(a)		11,400		253,308

				340,841

Life & Health Insurance–2.7%
Aflac, Inc.		30,600		1,445,850

Prudential Financial, Inc.		55,100		2,786,407

				4,232,257

Managed Health Care–4.0%
Humana, Inc.^(a)		52,100		2,489,859

UnitedHealth Group, Inc.		119,600		3,793,712

				6,283,571

Movies & Entertainment–2.0%
Time Warner, Inc.		107,600		3,225,848

Multi-Line Insurance–0.4%
Assurant, Inc.		19,100		698,296

Oil & Gas Equipment & Services–1.8%
National Oilwell Varco, Inc.		75,700		2,845,563

Other Diversified Financial Services–0.1%
JPMorgan Chase & Co.		3,400		123,624

Packaged Foods & Meats–0.1%
Tyson Foods, Inc.,		13,600		222,768

Paper Products–1.8%
International Paper Co.		128,200		2,622,972

MeadWestvaco Corp.		13,500		293,760

				2,916,732

Pharmaceuticals–6.4%
Bristol-Myers Squibb Co.		12,500		326,000

Eli Lilly & Co.		102,000		3,423,120

Forest Laboratories, Inc.^(a)		18,700		510,323

Johnson & Johnson		56,200		3,204,524

Pfizer, Inc.		170,100		2,709,693

				10,173,660

Property & Casualty Insurance–4.2%
Berkshire Hathaway, Inc., Class B^(a)		27,400		2,158,572

Travelers Cos., Inc.		43,400		2,125,732

XL Group PLC (Ireland)		134,100		2,401,731

				6,686,035

Publishing–1.7%
Gannett Co., Inc.		202,000		2,442,180

McGraw-Hill Cos., Inc.		8,100		223,965


				2,666,145

Regional Banks–0.8%
Fifth Third Bancorp		61,300		677,365

PNC Financial Services Group, Inc.		10,400		529,984

				1,207,349

Semiconductors–2.4%
Intel Corp.		87,600		1,552,272

Micron Technology, Inc.^(a)		349,600		2,260,164

				3,812,436

Systems Software–3.8%
Microsoft Corp.		257,100		6,036,708

Tobacco–2.2%
Philip Morris International, Inc.		66,600		3,425,904

Wireless Telecommunication Services–0.6%
Sprint Nextel Corp.^(a)		244,600		997,968

Total Long-Term Investments^(b)–97.9% (Cost $172,983,707)				155,518,682

Money Market Funds–3.2%
Liquid Assets Portfolio–Institutional Class^(c)		2,508,735		2,508,735

Premier Portfolio–Institutional Class^(c)		2,508,735		2,508,735

Total Money Market Funds 3.2% (Cost $5,017,470)				5,017,470

Total Investments–101.1%
(Cost $178,001,177)				160,536,152

Liabilities in Excess of Other Assets–(0.4%)				(601,553	)

Written Options–(0.7%)				(1,122,590	)

Net Assets–100.0%			$	158,812,009

Percentages are calculated as a percentage of net assets.


^(a)		Non-income producing security.
^(b)		The Fund may designate up to 100% of its common stock investments to cover outstanding call options.
^(c)		The money market fund and the Fund are affiliated by having the same investment adviser.

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

10 Invesco Van Kampen Equity Premium Income Fund

Financial Highlights

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.


	Class A shares
													June 26, 2006
													(Commencement of
	Year ended August 31,												operations) to
	2010			2009			2008			2007			August 31, 2006

Net asset value, beginning of the period	$	7.34		$	9.06		$	10.71		$	10.29		$	10.00

Net investment income^(a)		0.06			0.07			0.06			0.04			0.01

Net realized and unrealized gain (loss)		0.34			(1.39	)		(1.02	)		1.11			0.36

Total from investment operations		0.40			(1.32	)		(0.96	)		1.15			0.37

Less:
Distributions from net investment income		0.03			0.06			0.05			0.03			0.01

Distributions from net realized gain		-0-			0.25			0.64			0.70			0.07

Return of capital distributions		0.38			0.09			-0-			-0-			-0-

Total distributions		0.41			0.40			0.69			0.73			0.08

Net asset value, end of the period	$	7.33		$	7.34		$	9.06		$	10.71		$	10.29

Total return*		5.26	%^(b)		(13.90	)%^(c)		(9.31	)%^(c)		11.31	%^(c)		3.75	%**^(c)

Net assets at end of the period (in millions)	$	82.3		$	112.3		$	230.0		$	290.7		$	31.2

Ratio of expenses to average net assets*		1.19	%^(e)		1.24	%^(d)		1.14	%^(d)		1.25	%^(d)		1.24	%^(d)

Ratio of net investment income to average net assets*		0.75	%^(e)		1.11	%		0.56	%		0.40	%		1.32	%

Portfolio turnover^(f)		131	%		13	%		80	%		73	%		26	%


* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.19	%^(e)		1.40	%^(d)		N/A			1.29	%^(d)		4.35	%^(d)

Ratio of net investment income (loss) to average net assets		0.75	%^(e)		0.95	%		N/A			0.36	%		(1.79	)%


**		Non-Annualized
^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended August 31, 2007.
^(e)		Ratios are based on average daily net assets (000’s omitted) of $101,380.
^(f)		Portfolio Turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A = Not Applicable

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

15 Invesco Van Kampen Equity Premium Income Fund

Financial Highlights—(continued)


	Class B shares
													June 26, 2006
													(Commencement of
	Year ended August 31,												operations) to
	2010			2009			2008			2007			August 31, 2006

Net asset value, beginning of the period	$	7.25		$	8.97		$	10.64		$	10.28		$	10.00

Net Investment income (loss)^(a)		0.00	^(b)		0.02			(0.02	)		(0.04	)		0.01

Net realized and unrealized gain (loss)		0.33			(1.37	)		(1.00	)		1.10			0.34

Total from investment operations		0.33			(1.35	)		(1.02	)		1.06			0.35

Less:
Distributions from net investment income		0.02			0.03			0.01			0.00^(b	⁾		0.00	^(b)

Distributions from net realized gain		0-			0.25			0.64			0.70			0.07

Return of capital distributions		0.33			0.09			-0-			-0-			-0-

Total distributions		0.35			0.37			0.65			0.70			0.07

Net asset value, end of the period	$	7.23		$	7.25		$	8.97		$	10.64		$	10.28

Total return*		4.40	%^(c)		(14.47	)%^(d)		(9.93	)%^(d)		10.45	%^(d)		3.56	%^(d)**

Net assets at end of the period (in millions)	$	14.5		$	17.7		$	26.2		$	31.8		$	5.5

Ratio of expenses to average net assets*		1.94	%^(f)		1.99	%^(e)		1.89	%^(e)		2.00	%^(e)		1.99	%^(e)

Ratio of net investment income (loss) to average net assets*		0.00	%^(f)		0.36	%		(0.19	)%		(0.35	)%		0.37	%

Portfolio turnover^(g)		131	%		13	%		80	%		73	%		26	%


* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.94	%^(f)		2.16	%^(e)		N/A			2.04	%^(e)		5.10	%^(e)

Ratio of net investment income (loss) to average net assets		0.00	%^(f)		0.19	%		N/A			(0.39	)%		(2.74	)%


**		Non-Annualized
^(a)		Based on average shares outstanding.
^(b)		Amount is less than $0.01 per share.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended August 31, 2007.
^(f)		Ratios are based on average daily net assets (000’s omitted) of $16,885.
^(g)		Portfolio Turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A = Not Applicable

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

16 Invesco Van Kampen Equity Premium Income Fund

Financial Highlights—(continued)


	Class C shares
													June 26, 2006
													(Commencement of
	Year ended August 31,												operations) to
	2010			2009			2008			2007			August 31, 2006

Net asset value, beginning of the period	$	7.25		$	8.97		$	10.64		$	10.28		$	10.00

Net investment income (loss)^(a)		0.00	^(b)		0.02			(0.02	)		(0.04	)		0.01

Net realized and unrealized gain (loss)		0.33			(1.37	)		(1.00	)		1.10			0.35

Total from investment operations		0.33			(1.35	)		(1.02	)		1.06			0.36

Less:
Distributions from net investment income		0.02			0.03			0.01			0.00	^(b)		0.01

Distributions from net realized gain		-0-			0.25			0.64			0.70			0.07

Return of capital distributions		0.33			0.09			-0-			-0-			-0-

Total distributions		0.35			0.37			0.65			0.70			0.08

Net asset value, end of the period	$	7.23		$	7.25		$	8.97		$	10.64		$	10.28

Total return*		4.40	%^(c)		(14.47	)%^(d)		(9.93	)%^(d)		10.45	%^(d)		3.57	%^(d)**

Net assets at end of the period (in millions)	$	59.0		$	76.9		$	137.1		$	154.6		$	13.0

Ratio of expenses to average net assets*		1.94	%^(f)		1.99	%^(e)		1.89	%^(e)		2.00	%^(e)		1.99	%^(e)

Ratio of net investment income (loss) to average net assets*		0.00	%^(f)		0.36	%		(0.19	)%		(0.35	)%		0.46	%

Portfolio turnover^(g)		131	%		13	%		80	%		73	%		26	%


* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.94	%^(f)		2.15	%^(e)		N/A			2.04	%^(e)		5.10	%^(e)

Ratio of net investment income (loss) to average net assets		0.00	%^(f)		0.20	%		N/A			(0.39	)%		(2.65	)%


**		Non-Annualized
^(a)		Based on average shares outstanding.
^(b)		Amount is less than $0.01 per share.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and services fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(e)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended August 31, 2007.
^(f)		Ratios are based on average daily net assets (000’s omitted) of $71,805.
^(g)		Portfolio Turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A = Not Applicable

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

17 Invesco Van Kampen Equity Premium Income Fund

Financial Highlights—(continued)


	Class Y sharesˆ
													June 26, 2006
													(Commencement of
	Year ended August 31,												operations) to
	2010			2009			2008			2007			August 31, 2006

Net asset value, beginning of the period	$	7.36		$	9.07		$	10.71		$	10.29		$	10.00

Net Investment income^(a)		0.08			0.10			0.08			0.07			0.02

Net realized and unrealized gain (loss)		0.32			(1.40	)		(1.01	)		1.09			0.35

Total from investment operations		0.40			(1.30	)		(0.93	)		1.16			0.37

Less:
Distributions from net investment income		0.03			0.07			0.07			0.04			0.01

Distributions from net realized gain		-0-			0.25			0.64			0.70			0.07

Return of capital distributions		0.39			0.09			-0-			-0-			-0-

Total distributions		0.42			0.41			0.71			0.74			0.08

Net asset value, end of the period	$	7.34		$	7.36		$	9.07		$	10.71		$	10.29

Total return*		5.37	%^(b)		(13.63	)%^(c)		(9.04	)%^(c)		11.44	%^(c)		3.77	%^(c)**

Net assets at end of the period (in millions)	$	3.0		$	1.6		$	4.1		$	2.7		$	2.7

Ratio of expenses to average net assets*		0.94	%^(e)		0.99	%^(d)		0.89	%^(d)		1.00	%^(d)		0.99	%^(d)

Ratio of net investment income to average net assets*		1.02	%^(e)		1.51	%		0.81	%		0.65	%		1.33	%

Portfolio turnover^(f)		131	%		13	%		80	%		73	%		26	%


* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		0.94	%^(e)		1.12	%^(d)		N/A			1.04	%^(d)		4.10	%^(d)

Ratio of net investment income (loss) to average net assets		1.02	%^(e)		1.38	%		N/A			0.61	%		(1.78	)%


**		Non-Annualize
^(a)		Based on 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)		Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption on Fund shares.
^(d)		The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended August 31, 2007.
^(e)		Ratios are based on average daily net assets (000’s omitted) of $3,150.
^(f)		Portfolio Turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A = Not Applicable


ˆ		On June 1, 2010, the Fund’s former Class I Shares were reorganized into Class Y Shares.

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

18 Invesco Van Kampen Equity Premium Income Fund

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

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

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

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

The Fund’s investment objective is to seek current income and its secondary investment object is to seek long-term capital appreciation.

The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.

19 Invesco Van Kampen Equity Premium Income Fund


		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
		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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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 income are generally declared and paid annually. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Repurchase Agreements — The Fund may enter into repurchase agreements. Collateral on repurchase agreements, including the Fund’s pro-rata interest in joint repurchase agreements, is taken into possession by the Fund upon entering into the repurchase agreement. Eligible securities for collateral are securities consistent with the Fund’s investment objectives and may consist of U.S. Government Securities, U.S. Government Sponsored Agency Securities and/or, Investment Grade Debt Securities. Collateral consisting of U.S. Government Securities and U.S. Government Sponsored Agency Securities is marked to market daily to ensure its market value is at least 102% of the sales price of the repurchase agreement. Collateral consisting of Investment Grade Debt Securities is marked to market daily to ensure its market value is at least 105% of the sales price of the repurchase agreement. The investments in some repurchase agreements, pursuant to procedures approved by the Board of Trustees, are through participation with other mutual funds, private accounts and certain non-registered investment companies managed by the investment advisor or its affiliates (“Joint repurchase agreements”). The principal amount of the repurchase agreement is equal to the value at period-end. If the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement, the Fund might incur expenses in enforcing its rights, and could experience losses, including a decline in the value of the collateral and loss of income.
J.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or

20 Invesco Van Kampen Equity Premium Income Fund


		delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
K.		Call Options Written — The Fund may write call options. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. Written call options are recorded as a liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently valued to reflect the current market value of the option written. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized gains and losses on these contracts are included in the Statement of Operations. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
L.		Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations.
		The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
M.		Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0	.70%

Next $500 million		0	.65%

Over $1 billion		0	.60%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $1,055,607 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets.

Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, and Class Y shares to 1.24%, 1.99%, 1.99%, and 0.99%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to

21 Invesco Van Kampen Equity Premium Income Fund

amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

For the period ended August 31, 2010, the Adviser waived advisory fees of $879.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $22,425 to VKII. For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

Prior to the Reorganization, under a legal services agreement, VKII provided legal services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $17,189 to VKII.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended August 31, 2010, IIS was paid $50,920 for providing such services. Prior to the Reorganization, the Acquired Fund paid $52,182 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees. Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $1,455 in front-end sales commissions from the sale of Class A shares and $0, $14,834 and $623 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. Prior to the Reorganization, VKFI retained $14,360 in front-end sales commissions from the sale of Class A shares and $41,569, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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.

22 Invesco Van Kampen Equity Premium Income Fund

NOTE 4—Derivative Investments

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/ Derivative Type	Assets		Liabilities

Index risk	$	-0-	$	(1,122,590	)

Index risk
Futures contracts^(a)		-0-		(48,279	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the year ended August 31, 2010

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


	Location of Gain (Loss) on
	Statement of Operations
	Futures*			Options*

Realized Gain (Loss)
Index risk	$	348,887		$	2,639,374

Change in Unrealized Appreciation (Depreciation)
Index risk	$	(48,279	)	$	694,281


*	The average value of futures and options outstanding during the period was $10,210 and $(2,267,198), respectively.


Transactions During the Period
	Call Option Contracts
	Number of			Premiums
	Contracts			Received

Beginning of period		1,530		$	2,761,604

Written		19,812			41,592,680

Closed		(12,550	)		(24,362,749	)

Exercised		(1,150	)		(4,941,534	)

Expired		(6,536	)		(12,374,326	)

End of period		1,106		$	2,675,675

NOTE 5—Trustees’ and Officers’ Fees and Benefits

For the period ended August 31, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. Prior to the Reorganization, the Acquired Fund recognized expense of $4,026 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund.

NOTE 6—Cash Balances

23 Invesco Van Kampen Equity Premium Income Fund

earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	607,983	$	8,064,083

Long-term capital gain				2,268,017

Return of capital		8,890,614		2,935,899

Total distributions	$	9,498,597	$	13,267,999

Tax Components of Net Assets at Period-End:


	2010

Net unrealized (depreciation) — investments	$	(17,688,027	)

Post-October deferrals		(74,962,251	)

Capital loss carryforward		(71,325,460	)

Shares of beneficial interest		322,787,747

Total net assets	$	158,812,009

The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses.

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2018	$	71,325,460


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $250,461,826 and $313,632,778, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	803,877

Aggregate unrealized (depreciation) of investment securities		(18,491,904	)

Net unrealized depreciation of investment securities	$	(17,688,027	)

Cost of investments for tax purposes is $178,224,179

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, undistributed net investment income (loss) was increased by $8,890,614 and shares of beneficial interest decreased by $8,890,614. This reclassification had no effect on the net assets of the Fund.

24 Invesco Van Kampen Equity Premium Income Fund

NOTE 10—Share Information


	For the year ended						For the year ended
	August 31, 2010^(a)						August 31, 2009
	Shares			Value			Shares			Value

Sales:
Class A		1,176,321	^(b)	$	9,154,704	^(b)		1,737,444		$	11,576,397

Class B		79,389			610,706			269,048			1,827,439

Class C		461,233			3,522,581			915,501			5,835,518

Class Y		353,239			2,733,930			449,723			2,812,941

Total Sales		2,070,182		$	16,021,921			3,371,716		$	22,052,295

Dividend Reinvestment:
Class A		623,752		$	4,794,997			980,970		$	6,432,419

Class B		81,350			616,110			121,450			785,952

Class C		335,294			2,540,171			528,688			3,424,867

Class Y		10,115			77,842			13,479			87,140

Total Dividend Reinvestment		1,050,511		$	8,029,120			1,644,587		$	10,730,378

Repurchases:
Class A		(5,860,510	)	$	(45,379,804	)		(12,809,381	)	$	(84,024,936	)

Class B		(601,851	)^(b)		(4,588,082	)^(b)		(872,254	)		(5,527,505	)

Class C		(3,240,660	)		(24,724,806	)		(6,119,529	)		(39,623,987	)

Class Y		(173,137	)		(1,357,198	)		(692,893	)		(4,007,665	)

Total Repurchases		(9,876,158	)	$	(76,049,890	)		(20,494,057	)	$	(133,184,093	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
^(b)		Includes automatic conversion of 17,258 Class B shares into 17,017 Class A shares at a value of $129,076.

NOTE 11—Change in Independent Registered Public Accounting Firm

25 Invesco Van Kampen Equity Premium Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Van Kampen Equity Premium Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Equity Premium Income Fund (formerly known as Van Kampen Equity Premium Income Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of changes in net assets for the year ended August 31, 2009 and the financial highlights of the Fund for the periods ended August 31, 2009 and prior were audited by other independent auditors whose report dated October 26, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

26 Invesco Van Kampen Equity Premium Income Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio³
A	$	1,000.00	$	952.08	$	5.61	$	1,019.46	$	5.80		1.14	%

B		1,000.00		948.97		9.28		1,015.68		9.60		1.89

C		1,000.00		948.95		9.33		1,015.63		9.65		1.90

Y		1,000.00		953.30		4.38		1,020.72		4.53		0.89


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.
³	The expense ratios reflect an expense waiver.

27 Invesco Van Kampen Equity Premium Income Fund

Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen Equity Premium Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

28 Invesco Van Kampen Equity Premium Income Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


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

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco



2		Invesco Van Kampen Growth and Income Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees



3		Invesco Van Kampen Growth and Income Fund

Management’s Discussion of Fund Performance

Performance summary

For the nine months ended August 31, 2010, Invesco Van Kampen Growth and Income Fund underperformed its benchmark index, the Russell 1000 Value Index. We apply a bottom-up stock selection process, and due to stock selection in various sectors, the Fund underperformed its benchmark index.

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

Fund vs. Indexes

Cumulative total returns, 11/30/09 to 8/31/10, 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	-5.60	%

Class B Shares	-5.74

Class C Shares	-6.13

Class R Shares	-5.78

Class Y Shares	-5.41

Institutional Class Shares*	-5.48

Russell 1000 Value Index^▼ (Broad Market/Style-Specific Index)	-1.31


^▼		Lipper Inc.

*		Share class incepted during the reporting period. For detailed explanation of Invesco Van Kampen Growth and Income Fund performance see page 7.

How we invest

Our investment philosophy is best described as value with a catalyst. We believe that undervalued companies experiencing positive changes (i.e., “catalysts”) may have the potential to generate long-term stock price growth for shareholders.

We seek companies that are:

n		Out of favor with investors.

n		Underearning relative to their potential.

n		Attractively valued.

Once we identify these companies, we look for catalysts that may improve the financial results and/or correct the undervaluation. Examples of catalysts include improved operational efficiency, changing industry dynamics and/or a change in management.

We run potential investments through a series of quantitative screens including, but not limited to, return on capital and

enterprise value to sales metrics. We then conduct fundamental research on the most attractive opportunities. The research process includes a thorough review of a company’s financial statements, an evaluation of its competitive position and stability and meetings with its executives. We also value the company under various scenarios to determine if the investment is an attractive opportunity relative to its potential risk. At this point in our process, we identify the positive catalyst, which is a prerequisite for potential investment. Finally, we set a price target for a stock based on normalized earnings and historical valuation multiples.

In short, our objective is to exploit negative sentiment toward a company’s stock by analyzing the company’s operations in the context of a cyclical environment and identifying one or

more catalysts that may improve the company’s financial performance. Improved financial performance, in turn, has the potential to drive the company’s stock price higher.

We typically sell an investment when it reaches our estimate of fair value or when we identify a more attractive investment opportunity.

Market conditions and your Fund

At the beginning of the nine month period covered by this report, riskier assets outperformed securities considered safe havens, such as U.S. Treasuries. This trend continued through the middle of April 2010. However, renewed credit problems in Europe and the market correction that occurred in May and continued into August, created a more uncertain environment – prompting investors to favor potential safety over risk. Although recent market volatility created challenges, it also created some investment opportunities because companies with positive fundamentals became more attractively valued. Additionally, despite the market finishing lower at the end of this reporting period, there were a number of positives, including improved market liquidity, lean corporate infrastructures and merger and acquisition activity.

An overweight allocation to consumer discretionary was one of the largest contributors to Fund performance, as media stocks performed well in this sector due to increased advertising revenue. Stock selection in health care was another contributor to performance. Notably, Genzyme‘s stock price rose on the announcement from Sanofi-aventis of its interest in acquiring Genzyme. We sold our Genzyme holdings on the acquisition announcement and resulting increase in stock price.

Portfolio Composition

By sector


Financials	20.2	%

Energy	12.1

Consumer Discretionary	11.5

Information Technology	10.9

Consumer Staples	10.6

Health Care	10.5

Industrials	9.7

Utilities	4.7

Telecommunication Services	2.8

Materials	2.7

Money Market Funds Plus Other Assets
Less Liabilities	4.3

Top 10 Equity Holdings*



1.	JP Morgan Chase & Co.	4.7	%

2.	Marsh & McLennan Cos., Inc.	3.4

3.	General Electric Co.	3.2

4.	Viacom, Inc.	2.9

5.	eBay, Inc.	2.6

6.	Kraft Foods, Inc.	2.3

7.	American Electric Power Co., Inc.	2.3

8.	Occidental Petroleum Corp.	2.3

9.	Bank of America Corp.	2.1

10.	Wal-Mart Stores, Inc.	2.0


Total Net Assets	$5.9 billion

Total Number of Holdings*		78

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

*Excluding money market fund holdings.



4		Invesco Van Kampen Growth and Income Fund

Stock selection in the financials sector was the largest relative detractor. Overall, financial stocks performed strongly over the reporting period. However, the Fund was underweight in the financials sector relative to its benchmark, and our financial stocks did not appreciate as much as those of the index. We focused on what we believed were potentially lower risk financial companies with stronger balance sheets and less credit risk given the systemic risk in most financial stocks. However, the Fund had no exposure to real estate investment trusts (REITs), which outperformed during the period. The Fund’s lack of exposure to REITs was based on our concern that valuations were high and the commercial real estate market has weakened.

Technology stocks also detracted from relative Fund performance. The Fund was overweight in this sector versus the Russell 1000 Value Index and was adversely affected by exposure to stocks in the hardware and equipment industry. On a stock-specific basis, Hewlett-Packard negatively affected Fund performance due to a significant sell off after announcing the impending departure of its CEO.

Finally, Fund holdings in the energy sector detracted from performance due to heavy exposure to exploration and production companies. Fund holdings BP and Anadarko Petroleum were hurt by the oil spill in the Gulf of Mexico. As a result, we eliminated our position in BP and reduced our exposure to Anadarko Petroleum.

Equity markets experienced a strong recovery during the period covered by this report. We believe that market volatility, and the market correction that began in the second quarter of 2010, have created opportunities to invest in companies with attractive valuations and strong fundamentals. We believe that ultimately those valuations and fundamentals may be reflected in companies’ stock prices.

Thank you for your investment in Invesco Van Kampen Growth and Income Fund and for sharing our long-term investment horizon.

See important Fund and index disclosures later in this report.

Thomas Bastian

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Van Kampen Growth and Income Fund. Mr. Bastian joined Invesco in 2010. He earned a B.A. in accounting from St. John’s University and an M.B.A. in finance from the University of Michigan.

Mark Laskin

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Growth and Income Fund. Mr. Laskin joined Invesco in 2010. He earned a B.A. in history from Swarthmore College and an M.B.A. and M.A. from the Wharton School and Lauder Institute, respectively, of the University of Pennsylvania.

Mary Jayne Maly

Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Growth and Income Fund. Ms. Maly joined Invesco in 2010. She earned a B.A. from the University of Pittsburgh and an M.B.A. from the American Graduate School of International Management.

Sergio Marcheli

Portfolio manager, is manager of Invesco Van Kampen Growth and Income Fund. Mr. Marcheli joined Invesco in 2010. He earned a B.B.A. from the University of Houston and an M.B.A. from the University of St. Thomas.

James Roeder

Chartered Financial Analyst, Certified Public Accountant, portfolio manager, is manager of Invesco Van Kampen Growth and Income Fund. Mr. Roeder joined Invesco in 2010. He earned a B.S. in accounting from Clemson University and an M.B.A. in economics and finance from the University of Chicago Graduate School of Business.



5		Invesco Van Kampen Growth and Income Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (8/1/46)			9.04	%

	10	Years	1.60

	5	Years	-1.78

	1	Year	-3.45


Class B Shares

Inception (8/2/93)			8.08	%

	10	Years	1.79

	5	Years	-1.01

	1	Year	-2.70


Class C Shares

Inception (8/2/93)			7.67	%

	10	Years	1.47

	5	Years	-1.33

	1	Year	0.70


Class R Shares

Inception (10/1/02)			5.62	%

	5	Years	-0.85

	1	Year	2.19


Class Y Shares

Inception (10/19/04)			2.60	%

	5	Years	-0.35

	1	Year	2.70


Institutional Class Shares

	10	Years	2.22	%

	5	Years	-0.59

	1	Year	2.58

Effective June 1, 2010, Class A, Class B, Class C, Class R and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C, Class R and Class Y shares, respectively, of Invesco Van Kampen Growth and Income Fund. Returns shown above for Class A, Class B, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Growth and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (8/1/46)			9.03	%

	10	Years	2.31

	5	Years	-1.41

	1	Year	8.68


Class B Shares

Inception (8/2/93)			8.04	%

	10	Years	2.48

	5	Years	-0.66

	1	Year	10.14


Class C Shares

Inception (8/2/93)			7.63	%

	10	Years	2.17

	5	Years	-0.95

	1	Year	13.39


Class R Shares

Inception (10/1/02)			5.48	%

	5	Years	-0.48

	1	Year	14.98


Class Y Shares

Inception (10/19/04)			2.31	%

	5	Years	0.02

	1	Year	15.48


Institutional Class Shares

	10	Years	2.92	%

	5	Years	-0.23

	1	Year	15.29

most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 0.89%, 1.64%, 1.64%, 1.14%, 0.64% and 0.50%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y and Institutional Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.



7		Invesco Van Kampen Growth and Income Fund

Invesco Van Kampen Growth and Income Fund’s investment objective is to seek income and long-term growth of capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

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

Principal risks of investing in the Fund

n		The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and foreign taxation issues.

n		Investing in REITs makes the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general and may involve duplication of management fees and other expenses. REITs may be less diversified than other pools of securities, may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions

		may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

About indexes used in this report

n		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.

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

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

Other information

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

n		CPA^® and Certified Public Accountant^® are trademarks owned by the American Institute of Certified Public Accountants.

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

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		ACGIX
Class B Shares		ACGJX
Class C Shares		ACGKX
Class R Shares		ACGLX
Class Y Shares		ACGMX
Institutional Class Shares		ACGQX



8		Invesco Van Kampen Growth and Income Fund

Schedule of Investments

August 31, 2010


	Shares		Value

Common Stocks–95.7%
Air Freight & Logistics–0.5%
FedEx Corp.		391,601	$	30,564,458

Apparel Retail–0.5%
Gap, Inc.		1,735,931		29,319,875

Application Software–1.0%
Amdocs Ltd. (Guernsey)^(a)		2,253,934		59,120,689

Asset Management & Custody Banks–1.2%
Janus Capital Group, Inc.		1,635,042		14,846,182

State Street Corp.		1,579,642		55,413,841

				70,260,023

Automobile Manufacturers–0.6%
Ford Motor Co.^(a)		3,439,672		38,833,897

Broadcasting & Cable TV–1.6%
Comcast Corp., Class A		5,689,356		97,401,775

Broadcasting–Diversified–1.2%
Time Warner Cable, Inc.		1,434,683		74,043,990

Communications Equipment–1.2%
Cisco Systems, Inc.^(a)		3,547,745		71,132,287

Computer Hardware–2.6%
Dell, Inc.^(a)		5,220,093		61,440,495

Hewlett-Packard Co.		2,524,161		97,129,715

				158,570,210

Consumer Electronics–1.1%
Sony Corp.–ADR (Japan)		2,265,458		63,410,169

Data Processing & Outsourced Services–1.1%
Western Union Co.		4,037,215		63,303,531

Diversified Banks–1.4%
U.S. Bancorp		1,702,489		35,411,771

Wells Fargo & Co.		2,156,208		50,778,699

				86,190,470

Diversified Chemicals–2.7%
Bayer AG–ADR (Germany)		1,010,812		61,858,157

Dow Chemical Co.		1,945,836		47,420,023

PPG Industries, Inc.		777,900		51,209,157

				160,487,337

Diversified Commercial & Professional Services–0.6%
Cintas Corp.		1,355,889		34,561,611

Drug Retail–1.2%
Walgreen Co.		2,774,997		74,591,919

Electric Utilities–4.7%
American Electric Power Co., Inc.		3,944,614		139,678,781

Edison International, Inc.		1,112,892		37,560,105

Entergy Corp.		656,350		51,746,634

FirstEnergy Corp.		1,409,226		51,479,026

				280,464,546

Food Distributors–1.0%
Sysco Corp.		2,172,674		59,726,808

Health Care Distributors–0.6%
Cardinal Health, Inc.		1,233,318		36,950,207

Health Care Equipment–1.1%
Covidien PLC (Ireland)		1,912,079		67,572,872

Home Improvement Retail–1.3%
Home Depot, Inc.		2,774,283		77,152,810

Human Resource & Employment Services–1.0%
Manpower, Inc.		762,159		32,391,758

Robert Half International, Inc.		1,180,154		25,467,723

				57,859,481

Hypermarkets & Super Centers–2.0%
Wal-Mart Stores, Inc.		2,381,605		119,413,675

Industrial Conglomerates–5.6%
General Electric Co.		13,348,133		193,280,966

Siemens AG–ADR (Germany)		515,524		46,670,387

Tyco International Ltd. (Switzerland)		2,527,700		94,232,656

				334,184,009

Industrial Machinery–1.5%
Dover Corp.		1,022,345		45,760,162

Ingersoll-Rand PLC (Ireland)		1,339,437		43,571,886

				89,332,048

Insurance Brokers–3.4%
Marsh & McLennan Cos., Inc.		8,494,131		201,480,787

Integrated Oil & Gas–7.5%
ConocoPhillips		1,330,822		69,774,997

Exxon Mobil Corp.		1,018,972		60,282,384

Hess Corp.		1,433,286		72,022,622

Occidental Petroleum Corp.		1,847,256		134,997,468

Royal Dutch Shell PLC, Class A–ADR (United Kingdom)		2,104,376		111,637,147

				448,714,618

Integrated Telecommunication Services–1.1%
Verizon Communications, Inc.		2,174,183		64,160,140

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

9 Invesco Van Kampen Growth and Income Fund


	Shares		Value

Internet Software & Services–3.7%
eBay, Inc.^(a)		6,826,868	$	158,656,412

Yahoo!, Inc.^(a)		4,772,426		62,423,332

				221,079,744

Investment Banking & Brokerage–1.8%
Charles Schwab Corp.		5,960,383		76,054,487

Morgan Stanley Co.		1,263,792		31,203,024

				107,257,511

Life & Health Insurance–0.7%
Principal Financial Group, Inc.		1,824,197		42,047,741

Managed Health Care–1.8%
UnitedHealth Group, Inc.		3,478,432		110,335,863

Motorcycle Manufacturers–0.4%
Harley-Davidson, Inc.		871,855		21,203,514

Movies & Entertainment–4.8%
Time Warner, Inc.		3,862,823		115,807,434

Viacom, Inc., Class B		5,472,167		171,935,487

				287,742,921

Office Services & Supplies–0.6%
Avery Dennison Corp.		1,088,670		35,403,548

Oil & Gas Equipment & Services–1.5%
Cameron International Corp.^(a)		523,595		19,257,824

Schlumberger Ltd. (Netherlands Antilles)		1,295,734		69,101,494

				88,359,318

Oil & Gas Exploration & Production–3.1%
Anadarko Petroleum Corp.		2,099,036		96,534,666

Devon Energy Corp.		953,132		57,454,797

Noble Energy, Inc.		467,821		32,644,549

				186,634,012

Other Diversified Financial Services–7.7%
Bank of America Corp.		10,052,357		125,151,845

Citigroup, Inc.^(a)		15,900,082		59,148,305

JPMorgan Chase & Co.		7,678,279		279,182,224

				463,482,374

Packaged Foods & Meats–3.6%
Kraft Foods, Inc., Class A		4,681,108		140,199,185

Unilever NV (Netherlands)		2,872,481		76,953,766

				217,152,951

Personal Products–1.1%
Avon Products, Inc.		2,233,248		64,987,517

Pharmaceuticals–7.0%
Abbott Laboratories		970,260		47,872,629

Bristol-Myers Squibb Co.		4,532,402		118,205,044

Merck & Co., Inc.		2,792,637		98,189,117

Pfizer, Inc.		5,751,860		91,627,130

Roche Holdings, Inc.–ADR (Switzerland)		1,797,357		61,152,735

				417,046,655

Property & Casualty Insurance–1.1%
Chubb Corp.		1,225,560		67,552,867

Regional Banks–2.8%
BB&T Corp.		1,485,382		32,856,650

Fifth Third Bancorp		2,717,314		30,026,320

PNC Financial Services Group, Inc.		2,101,939		107,114,811

				169,997,781

Semiconductor Equipment–0.3%
Lam Research Corp.^(a)		537,868		19,422,413

Semiconductors–1.0%
Intel Corp.		3,521,894		62,407,962

Soft Drinks–1.6%
Coca-Cola Co.		929,865		51,998,051

Coca-Cola Enterprises, Inc.		1,594,735		45,386,158

				97,384,209

Wireless Telecommunication Services–1.8%
Vodafone Group PLC–ADR (United Kingdom)		4,396,022		106,295,812

Total Common Stocks–95.7% (Cost $6,004,036,272)				5,734,598,955

Money Market Funds–4.1%
Liquid Assets Portfolio–Institutional Class^(b)		122,605,989		122,605,989

Premier Portfolio–Institutional Class^(b)		122,605,989		122,605,989

Total Money Market Funds–4.1% (Cost $245,211,978)				245,211,978

TOTAL INVESTMENTS–99.8% (Cost $6,249,248,250)				5,979,810,933

OTHER ASSETS IN EXCESS OF LIABILITIES–0.2%				13,913,451

NET ASSETS–100.0%			$	5,993,724,384

Investment Abbreviation:


ADR		– American Depositary Receipt

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.


^(a)		Non-income producing security.
^(b)		The money market fund and the Fund are affiliated by having the same investment adviser.

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

10 Invesco Van Kampen Growth and Income Fund

Statement of Assets and Liabilities

August 31, 2010


Assets:
Investments, at value (Cost $6,004,036,272)	$	5,734,598,955

Investments in affiliated money market funds, at value and cost		245,211,978

Cash		7

Receivables:
Dividends		15,767,760

Fund shares sold		11,042,239

Investments sold		8,083,813

Other		40,760

Total assets		6,014,745,512

Liabilities:
Payables:
Fund shares repurchased		11,168,540

Investments purchased		5,163,262

Distributor and affiliates		3,350,012

Accrued expenses		1,339,314

Total liabilities		21,021,128

Net assets	$	5,993,724,384

Net assets consist of:
Capital (par value of $0.01 per share with an unlimited number of shares authorized)	$	6,999,019,079

Accumulated undistributed net investment income		8,255,246

Net unrealized appreciation (depreciation)		(269,437,317	)

Accumulated net realized gain (loss)		(744,112,624	)

Net assets	$	5,993,724,384

Maximum Offering Price Per Share:
Class A Shares:
Net asset value and redemption price per share (Based on net assets of $4,122,778,944 and 256,657,837 shares of beneficial interest issued and outstanding)	$	16.06

Maximum sales charge (5.50% of offering price)		0.93

Maximum offering price to public	$	16.99

Class B Shares:
Net asset value and offering price per share (Based on net assets of $231,193,427 and 14,510,963 shares of beneficial interest issued and outstanding)	$	15.93

Class C Shares:
Net asset value and offering price per share (Based on net assets of $269,050,645 and 16,909,408 shares of beneficial interest issued and outstanding)	$	15.91

Class R Shares:
Net asset value and offering price per share (Based on net assets of $122,188,293 and 7,605,182 shares of beneficial interest issued and outstanding)	$	16.07

Class Y Shares:
Net asset value and offering price per share (Based on net assets of $1,206,651,820 and 75,061,220 shares of beneficial interest issued and outstanding)	$	16.08

Class Institutional Share Class:
Net asset value and offering price per share (Based on net assets of $41,861,255 and 2,603,590 shares of beneficial interest issued and outstanding)	$	16.08

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

12 Invesco Van Kampen Growth and Income Fund

Statements of Changes in Net Assets

For the period December 1, 2009 to August 31, 2010 and the years ended November 30, 2009 and 2008


	For the			For the			For the
	nine months ended			year ended			year ended
	August 31, 2010			November 30, 2009			November 30, 2008

From investment activities:
Operations:
Net investment income	$	66,058,781		$	87,509,634		$	154,058,675

Net realized gain (loss)		227,794,122			(393,154,825	)		(542,253,071	)

Net unrealized appreciation (depreciation) during the period		(655,291,184	)		1,496,446,937			(3,069,256,509	)

Change in net assets from operations		(361,438,281	)		1,190,801,746			(3,457,450,905	)

Distributions from net investment income:
Class A Shares		(46,288,757	)		(70,464,829	)		(125,600,223	)

Class B Shares		(2,797,501	)		(5,807,436	)		(12,128,555	)

Class C Shares		(1,469,851	)		(3,052,534	)		(5,762,549	)

Class R Shares		(966,152	)		(1,240,399	)		(2,068,289	)

Class Y Shares		(14,834,399	)		(16,453,885	)		(24,032,254	)

Institutional Class Shares		(7,403	)		-0-			-0-

		(66,364,063	)		(97,019,083	)		(169,591,870	)

Distributions from net realized gain:
Class A Shares		-0-			-0-			(326,751,506	)

Class B Shares		-0-			-0-			(32,723,684	)

Class C Shares		-0-			-0-			(24,928,611	)

Class R Shares		-0-			-0-			(5,894,328	)

Class Y Shares		-0-			-0-			(49,700,098	)

Institutional Class Shares		-0-			-0-			-0-

		-0-			-0-			(439,998,227	)

Total distributions		(66,364,063	)		(97,019,083	)		(609,590,097	)

Net change in net assets from investment activities		(427,802,344	)		1,093,782,663			(4,067,041,002	)

From capital transactions:
Proceeds from shares sold		1,333,775,097			1,294,667,962			1,744,714,197

Net asset value of shares issued through dividend reinvestment		60,574,362			88,094,309			560,884,166

Cost of shares repurchased		(1,308,905,547	)		(2,145,677,561	)		(2,720,842,252	)

Net change in net assets from capital transactions		85,443,912			(762,915,290	)		(415,243,889	)

Total increase (decrease) in net assets		(342,358,432	)		330,867,373			(4,482,284,891	)

Net assets:
Beginning of the period		6,336,082,816			6,005,215,443			10,487,500,334

End of the period (including accumulated undistributed net investment income of $8,255,246, $8,560,528, and $18,062,492 respectively)	$	5,993,724,384		$	6,336,082,816		$	6,005,215,443

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

14 Invesco Van Kampen Growth and Income Fund

Financial Highlights

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.


	Class A shares
	Nine months
	ended			Year ended November 30,
	August 31, 2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	17.19		$	13.87		$	22.72		$	22.62		$	21.72		$	19.55

Net investment income^(a)		0.18			0.23			0.33			0.36			0.35			0.26

Net realized and unrealized gain (loss)		(1.13	)		3.34			(7.86	)		1.21			2.43			2.38

Total from investment operations		(0.95	)		3.57			(7.53	)		1.57			2.78			2.64

Less:
Distributions from net investment income		0.18			0.25			0.37			0.39			0.31			0.25

Distributions from net realized gain		-0-			-0-			0.95			1.08			1.57			0.22

Total distributions		0.18			0.25			1.32			1.47			1.88			0.47

Net asset value, end of the period	$	16.06		$	17.19		$	13.87		$	22.72		$	22.62		$	21.72

Total return		(5.60	)%^(b)		26.24	%^(c)		(35.05	)%^(c)		7.26	%^(c)		13.76	%^(c)		13.74	%^(c)

Net assets at end of the period (in millions)	$	4,122.8		$	4,496.2		$	4,416.1		$	7,793.4		$	7,711.9		$	6,439.4

Ratio of expenses to average net assets		0.74	%^(d)		0.88	%		0.79	%		0.77	%		0.79	%		0.80	%

Ratio of net investment income to average net assets		1.36	%^(d)		1.58	%		1.78	%		1.58	%		1.66	%		1.27	%

Portfolio turnover		23	%^(e)		51	%		42	%		26	%		30	%		43	%


^(a)		Based on average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of the Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $4,506,438.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

15 Invesco Van Kampen Growth and Income Fund

Financial Highlights—(continued)


	Class B shares
	Nine months
	ended			Year ended November 30,
	August 31, 2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	17.05		$	13.76		$	22.57		$	22.47		$	21.52		$	19.37

Net investment income^(a)		0.16			0.22			0.32			0.34			0.34			0.10

Net realized and unrealized gain (loss)		(1.12	)		3.32			(7.81	)		1.20			2.41			2.37

Total from investment operations		(0.96	)		3.54			(7.49	)		1.54			2.75			2.47

Less:
Distributions from net investment income		0.16			0.25			0.37			0.36			0.23			0.10

Distributions from net realized gain		-0-			-0-			0.95			1.08			1.57			0.22

Total distributions		0.16			0.25			1.32			1.44			1.80			0.32

Net asset value, end of the period	$	15.93		$	17.05		$	13.76		$	22.57		$	22.47		$	21.52

Total return		(5.69	)%^(b)(f)		26.32	%^(c)(d)		(35.09	)%^(c)(d)		7.18	%^(c)(d)		13.70	%^(c)(d)		12.93	%^(c)

Net assets at end of the period (in millions)	$	231.2		$	320.6		$	365.3		$	777.6		$	869.9		$	916.6

Ratio of expenses to average net assets		0.89	%^(e)(f)		0.89	%^(d)		0.84	%^(d)		0.85	%^(d)		0.84	%^(d)		1.56	%

Ratio of net investment income to average net assets		1.21	%^(e)(f)		1.59	%^(d)		1.72	%^(d)		1.50	%^(d)		1.60	%^(d)		0.50	%

Portfolio turnover		23	%^(g)		51	%		42	%		26	%		30	%		43	%


^(a)		Based on average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of less than 1%.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $289,938.
^(f)		The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.40%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

16 Invesco Van Kampen Growth and Income Fund

Financial Highlights—(continued)


	Class C shares
	Nine months
	ended			Year ended November 30,
	August 31, 2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	17.03		$	13.74		$	22.53		$	22.43		$	21.56		$	19.41

Net investment income^(a)		0.08			0.12			0.20			0.20			0.19			0.10

Net realized and unrealized gain (loss)		(1.12	)		3.32			(7.81	)		1.21			2.41			2.37

Total from investment operations		(1.04	)		3.44			(7.61	)		1.41			2.60			2.47

Less:
Distributions from net investment income		0.08			0.15			0.23			0.23			0.16			0.10

Distributions from net realized gain		-0-			-0-			0.95			1.08			1.57			0.22

Total distributions		0.08			0.15			1.18			1.31			1.73			0.32

Net asset value, end of the period	$	15.91		$	17.03		$	13.74		$	22.53		$	22.43		$	21.56

Total return		(6.13	)%^(b)		25.36	%^(c)(d)		(35.54	)%^(c)(d)		6.53	%^(c)(d)		12.88	%^(c)		12.90	%^(c)

Net assets at end of the period (in millions)	$	269.1		$	316.3		$	301.3		$	591.0		$	620.6		$	557.2

Ratio of expenses to average net assets		1.49	%^(e)		1.62	%^(d)		1.51	%^(d)		1.48	%^(d)		1.54	%		1.56	%

Ratio of net investment income to average net assets		0.61	%^(e)		0.84	%^(d)		1.06	%^(d)		0.87	%^(d)		0.91	%		0.51	%

Portfolio turnover		23	%^(f)		51	%		42	%		26	%		30	%		43	%


^(a)		Based on average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of less than 1%.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $308,015.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

17 Invesco Van Kampen Growth and Income Fund

Financial Highlights—(continued)


	Class R shares
	Nine months
	ended			Year ended November 30,
	August 31, 2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	17.19		$	13.87		$	22.73		$	22.62		$	21.72		$	19.55

Net investment income^(a)		0.14			0.18			0.29			0.30			0.31			0.21

Net realized and unrealized gain (loss)		(1.11	)		3.35			(7.88	)		1.22			2.42			2.38

Total from investment operations		(0.97	)		3.53			(7.59	)		1.52			2.73			2.59

Less:
Distributions from net investment income		0.15			0.21			0.32			0.33			0.26			0.20

Distributions from net realized gain		-0-			-0-			0.95			1.08			1.57			0.22

Total distributions		0.15			0.21			1.27			1.41			1.83			0.42

Net asset value, end of the period	$	16.07		$	17.19		$	13.87		$	22.73		$	22.62		$	21.72

Total return		(5.72	)%^(b)		26.00	%^(c)		(35.25	)%^(c)		7.03	%^(c)		13.48	%^(c)		13.46	%^(c)

Net assets at end of the period (in millions)	$	122.2		$	107.4		$	78.5		$	140.2		$	128.5		$	45.1

Ratio of expenses to average net assets		0.99	%^(d)		1.13	%		1.04	%		1.02	%		1.04	%		1.05	%

Ratio of net investment income to average net assets		1.11	%^(d)		1.29	%		1.53	%		1.33	%		1.46	%		1.02	%

Portfolio turnover		23	%^(e)		51	%		42	%		26	%		30	%		43	%


^(a)		Based on average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets 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)		Assumes reinvestment of all distributions for the period. These returns include combined Rule 12b-1 fees and service fees of up to 0.50% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $118,154.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

18 Invesco Van Kampen Growth and Income Fund

Financial Highlights—(continued)


	Class Y sharesˆ
	Nine months
	ended			Year ended November 30,
	August 31, 2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	17.21		$	13.88		$	22.74		$	22.63		$	21.73		$	19.55

Net investment income^(a)		0.21			0.26			0.38			0.41			0.41			0.28

Net realized and unrealized gain (loss)		(1.13	)		3.35			(7.87	)		1.23			2.43			2.42

Total from investment operations		(0.92	)		3.61			(7.49	)		1.64			2.84			2.70

Less:
Distributions from net investment income		0.21			0.28			0.42			0.45			0.37			0.30

Distributions from net realized gain		-0-			-0-			0.95			1.08			1.57			0.22

Total distributions		0.21			0.28			1.37			1.53			1.94			0.52

Net asset value, end of the period	$	16.08		$	17.21		$	13.88		$	22.74		$	22.63		$	21.73

Total return		(5.41	)%^(b)		26.60	%^(c)		(34.90	)%^(c)		7.57	%^(c)		13.98	%^(c)		14.11	%^(c)

Net assets at end of the period (in millions)	$	1,206.7		$	1,095.7		$	844.1		$	1,185.3		$	881.2		$	781.6

Ratio of expenses to average net assets		0.49	%^(d)		0.63	%		0.54	%		0.52	%		0.54	%		0.57	%

Ratio of net investment income to average net assets		1.61	%^(d)		1.81	%		2.04	%		1.83	%		1.92	%		1.41	%

Portfolio turnover		23	%^(e)		51	%		42	%		26	%		30	%		43	%


^(a)		Based on average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets 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)		Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $1,246,567.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
^ˆ		On June 1, 2010, the Fund’s former Class I shares were reorganized into Class Y shares.


	Institutional Class
	June 1, 2010
	(Commencement of
	operations) to
	August 31, 2010

Net asset value, beginning of the period	$	16.48

Net investment income^(a)		0.05

Net realized and unrealized gain (loss)		(0.39	)

Total from investment operations		(0.34	)

Less:
Distributions from net investment income		0.06

Net asset value, end of the period	$	16.08

Total return^(b)		(2.05	)%

Net assets at end of the period (in millions)	$	41.9

Ratio of expenses to average net assets		0.45	%^(c)

Ratio of net investment income to average net assets		1.31	%^(c)

Portfolio turnover^(d)		23	%


^(a)		Based on average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets 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)		Ratios are annualized and based on average daily net assets (000’s omitted) of $26,846.
^(d)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

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

19 Invesco Van Kampen Growth and Income Fund

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from November 30 to August 31.

Prior to June 1, 2010, the Fund operated as Van Kampen Growth and Income Fund (the “Acquired Fund”). The Acquired Fund was reorganized on June 1, 2010 (The “Reorganization Date”) through the transfer of all its assets and liabilities to the Fund (the “Reorganization”).

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

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

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.

20 Invesco Van Kampen Growth and Income Fund


		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
		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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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 income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a

21 Invesco Van Kampen Growth and Income Fund


		futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
J.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
		The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $150 million		0	.50%

Next $100 million		0	.45%

Next $100 million		0	.40%

Over $350 million		0	.35%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $11,691,295 and $19,805,045 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period December 1, 2009 to May 31, 2010 and for the year ended November 30, 2009, respectively.

Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 0.88%, 1.63%, 1.63%, 1.13%, 0.63% and 0.63% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

For the period ended August 31, 2010, the Adviser waived advisory fees of $37,948.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $191,440 and $393,900 to VKII for the period December 1, 2009 to May 31, 2010 and the year ended November 30, 2009, respectively. For the period ended August 31, 2010 and the year ended November 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

22 Invesco Van Kampen Growth and Income Fund

services. Prior to the Reorganization, the Acquired Fund paid $1,165,909 and $2,576,300 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent, for the period December 1, 2009 to May 31, 2010 and for the year ended November 30, 2009, respectively. For the period ended August 31, 2010 and the year ended November 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares, Class C shares and Class R shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% each of Class B and Class C average daily net assets and up to 0.50% of Class R average daily net assets.

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B, Class C and Class R shares. Pursuant to such agreements, the Acquired Fund paid $8,430,568 and $14,039,628 to VKFI for the period December 1, 2009 to May 31, 2010 and the year ended November 30, 2009, respectively.

For the period ended August 31, 2010 and the year ended November 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $72,122 in front-end sales commissions from the sale of Class A shares and $254, $70,416 and $4,785 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period December 1, 2009 to May 31, 2010, VKFI retained $312,596 in front-end sales commissions from the sale of Class A shares and $154,696, for CDSC imposed on redemptions by shareholders. For the year ended November 30, 2009, VKFI retained $638,500 in front-end sales commissions from the sale of Class A shares and $397,300, for CDSC imposed on redemptions by shareholders.

The Acquired Fund paid brokerage commissions to Morgan Stanley & Co., Inc., an affiliate of Van Kampen, totaling $59,370 and $252,320 for the period December 1, 2009 to May 31, 2010 and the year ended November 31, 2009, respectively.

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

NOTE 3—Additional Valuation Information

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


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

NOTE 4—Trustees’ and Officers’ Fees and Benefits

For the period ended August 31, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. For the period December 1, 2009 to May 31, 2010, the Acquired Fund recognized expenses of $42,545 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”), of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund. For the year ended November 30, 2009, the Acquired Fund recognized expenses of $359,300 representing legal services provided by Skadden.

23 Invesco Van Kampen Growth and Income Fund

NOTE 5—Cash Balances

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

Tax Character of Distributions to Shareholders Paid During the Nine Months Ended August 31, 2010 and the Years Ended November 30, 2009 and 2008:


	August 31,		November 30,		November 30,
	2010		2009		2008

Ordinary income	$	66,364,063	$	97,019,083	$	254,363,995

Long-term capital gain		-0-		-0-		355,226,102

Total distributions	$	66,364,063	$	97,019,083	$	609,590,097

Tax Components of Net Assets at Period-End:


	August 31,
	2010

Undistributed ordinary income	$	8,255,246

Net unrealized appreciation — investments		(281,556,800	)

Capital loss carryforward		(731,993,141	)

Shares of beneficial interest		6,999,019,079

Total net assets	$	5,993,724,384

The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses.

The Fund utilized $226,072,730 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	731,993,141


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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund from December 1, 2009 to August 31, 2010 was $1,471,849,433 and $1,449,771,240, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	288,204,656

Aggregate unrealized (depreciation) of investment securities		(569,761,456	)

Net unrealized appreciation (depreciation) of investment securities	$	(281,556,800	)

Cost of investments for tax purposes is $6,261,367,733.

24 Invesco Van Kampen Growth and Income Fund

NOTE 8—Share Information


	For the						For the						For the
	nine months ended						year ended						year ended
	August 31, 2010^(a)						November 30, 2009						November 30, 2008
	Shares			Value			Shares			Value			Shares			Value

Sales:
Class A		40,694,820^(b	⁾	$	707,176,618^(b	⁾		57,927,682		$	807,430,785			57,825,716		$	1,072,657,142

Class B		934,228			16,167,953			2,148,011			29,667,060			2,086,418			38,343,527

Class C		1,252,711			21,780,200			2,037,857			28,300,443			2,193,348			39,846,518

Class R		2,423,181			42,296,238			2,343,353			33,092,151			1,987,366			37,408,947

Class Y		29,182,798			503,102,992			27,202,880			396,177,523			30,477,708			556,458,063

Institutional Class		2,638,781			43,251,096			-0-			-0-			-0-			-0-

Total sales		77,126,519		$	1,333,775,097			91,659,783		$	1,294,667,962			94,570,556		$	1,744,714,197

Dividend reinvestment:
Class A		2,544,181		$	43,649,414			4,949,122		$	66,221,754			20,369,092		$	426,114,201

Class B		154,168			2,633,398			411,733			5,438,004			1,992,302			41,462,405

Class C		69,351			1,190,861			192,064			2,487,495			1,203,882			25,238,374

Class R		50,681			870,627			82,308			1,099,777			342,385			7,176,954

Class Y		714,655			12,230,024			956,393			12,847,279			2,927,711			60,892,232

Institutional Class		3			38			-0-			-0-			-0-			-0-

Total dividend reinvestment		3,533,039		$	60,574,362			6,591,620		$	88,094,309			26,835,372		$	560,884,166

Repurchases:
Class A		(48,110,313	)	$	(830,378,096	)		(119,809,171	)	$	(1,551,828,446	)		(102,710,778	)	$	(1,871,333,672	)

Class B		(5,374,410	)^(b)		(92,459,113	)^(b)		(10,314,145	)		(141,793,426	)		(11,976,603	)		(217,887,951	)

Class C		(2,985,220	)		(51,124,902	)		(5,586,391	)		(76,216,147	)		(7,702,168	)		(139,886,709	)

Class R		(1,113,115	)		(19,245,650	)		(1,842,190	)		(26,169,909	)		(2,838,704	)		(51,093,200	)

Class Y		(18,516,612	)		(315,105,691	)		(25,304,022	)		(349,669,633	)		(24,704,188	)		(440,640,720	)

Institutional Class		(35,194	)		(592,095	)		-0-			-0-			-0-			-0-

Total repurchases		(76,134,864	)	$	(1,308,905,547	)		(162,855,919	)	$	(2,145,677,561	)		(149,932,441	)	$	(2,720,842,252	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 21% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. In addition, 1% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are mutual funds that are advised by Invesco.
^(b)		Includes automatic conversion of 1,668,282 Class B shares into 1,654,934 Class A shares at a value of $28,323,179.

NOTE 9—Change in Independent Registered Public Accounting Firm

25 Invesco Van Kampen Growth and Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Van Kampen Growth and Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Growth and Income Fund (formerly known as Van Kampen Growth and Income Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended November 30, 2009 and prior were audited by other independent auditors whose report dated January 22, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

26 Invesco Van Kampen Growth and Income Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period ³		Ratio ⁴
A	$	1,000.00	$	929.27	$	3.89	$	1,021.17	$	4.08		0.80	%

B		1,000.00		928.40		4.67		1,020.37		4.89		0.96

C		1,000.00		926.18		7.53		1,017.39		7.88		1.55

R		1,000.00		928.66		5.10		1,019.91		5.35		1.05

Y		1,000.00		931.06		2.68		1,022.43		2.80		0.55

Institutional		1,000.00		979.50		1.11		1,022.94		2.29		0.45


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010, through August 31, 2010 (as of close of business June 1, 2010 through August 31, 2010 for the Institutional Class shares), 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 184/365 to reflect the most recent fiscal half year. For the Institutional Class shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 91 (as of close of business June 1, 2010 through August 31, 2010)/365. Because the Institutional Class shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.
³	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in the Institutional Class shares of the Fund and other funds because such data is based on a full six month period.
⁴	The Class B expense ratio reflects actual 12b-1 fees of less than 1%.

27 Invesco Van Kampen Growth and Income Fund


	Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen Growth and Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers, the Affiliated Sub-Advisers and the MS Sub-Adviser under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed the information provided differently than another Trustee.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

28 Invesco Van Kampen Growth and Income Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information



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

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Near the end of this letter, I’ve provided the number to call if you have Specific questions about your account; I’ve also provided my email address so you can send a general Invesco-related question or comment to me directly.

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Van Kampen Pennsylvania Tax Free Income Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Van Kampen Pennsylvania Tax Free Income Fund

Management’s Discussion of Fund Performance

Performance summary

All share classes of Invesco Van Kampen Pennsylvania Tax Free Income Fund at net asset value (NAV) posted positive returns during the 11-month reporting period ended August 31, 2010. The Fund’s Class A shares at NAV outperformed both the Fund’s broad market benchmark, the Barclays Capital Municipal Bond Index, and the Fund’s style-Specific index, the Barclays Capital Pennsylvania Municipal Index. The Fund’s focus on the long-end of the yield curve, and overweight positions in lower quality securities as well as non-rated securities were the main contributors to relative outperformance versus the Barclays Capital Pennsylvania Municipal Index.

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

Fund vs. Indexes

Total returns, 9/30/09 to 8/31/10, 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	6.74	%

Class B Shares	6.27

Class C Shares	6.01

Class Y Shares*	6.87

Barclays Capital Municipal Bond Index^▼ (Broad Market Index)	5.97

Barclays Capital Pennsylvania Municipal Index^■ (Style-Specific Index)	5.96


^▼		Lipper Inc.: ^■ Invesco, Barclays Capital


*		Share class incepted during reporting period. For detailed explanation of Fund performance, see page 7.

How we invest

Our investment objective is to provide only Pennsylvania investors with a high level of current income exempt from federal and Pennsylvania state income taxes and, where possible under local law, local income and personal property taxes, through investments primarily in a varied portfolio of medium- and lower grade municipal securities.

We seek to invest primarily in medium- and lower grade securities; however, at times the market conditions in the Pennsylvania municipal markets may be such that the Fund may invest in higher grade securities. The Fund’s investment in medium- and lower grade securities involves special risks as compared to investment in higher grade securities. Lower grade securities are commonly

referred to as junk bonds and involve greater risks than investments in higher grade securities. We generally do not purchase securities that are in default or rated in categories lower than B- by Standard and Poor’s (S&P) or B3 by Moody’s Investors Service, Inc. (Moody’s) or unrated securities of comparable quality. Under normal market conditions, the Fund may invest up to 20% of its total assets in municipal securities that are subject to the federal alternative minimum tax.

We actively manage the Fund’s portfolio and adjust the average maturity of portfolio investments based upon expectations about the direction of interest rates and other economic factors. We select securities which we believe offer higher yields with reasonable credit risk considered in relation to

the investment policies of the Fund. In selecting securities for investment, we use our research capabilities to assess potential investments and consider a number of factors, including general market and economic conditions and credit, interest rate and prepayment risks.

Portfolio securities are typically sold when our assessment of any of these factors materially change. At times, the market conditions in the Pennsylvania municipal securities markets may be such that we may invest in higher grade securities. These investments may lessen the decline in the NAV of the Fund but also may affect the amount of current income since yields on higher grade securities are usually lower than yields on medium- or lower grade securities. As a result, we will not necessarily invest in the highest yielding Pennsylvania municipal securities permitted by our investment policies depending on market conditions or if we determine that market risks or credit risks associated with such investments would subject the Fund’s portfolio to undue risk.

Market conditions and your Fund

Market conditions during the 11-month period covered in this report were influenced by two broad themes: private sector recovery and concerns over sovereign creditworthiness. In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at extremely low levels and with few of them withdrawing their quantitative easing measures. This has helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. Recently, however, investor skepticism of global governments’

Portfolio Composition^†

By credit quality, based on total investments


AAA	17.5	%

AA	13.9

A	19.1

BBB	19.5

BB	0.3

Non-Rated	29.7

Top 5 Sectors*


1. Hospital	19.2	%

2. Higher Education	12.1

3. Life Care	9.5

4. General Purpose	8.1

5. Public Buildings	8.1


Total Net Assets		$157.3 million

Total Number of Holdings*		120

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

*Excluding money market fund holdings.

†

Source: Standard and Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non-Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard and Poor’s rating methodology, please visit www.standardandpoors.com and select ‘Understanding Ratings’ under Rating Resources on the homepage.

Invesco Van Kampen Pennsylvania Tax Free Income Fund

abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for Greece and other southern euro zone countries) and became a focal point of investor concern in the first half of 2010.

In the U.S., economic recovery was present, although uneven and possibly slowing, as stubbornly high unemployment continued to weigh on the U.S. economy.¹ Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 1.7% in the second quarter of 2010.¹ In the first quarter, real GDP increased 3.7%.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² The Fed recently described its view of the U.S. economy: “Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.”² Consequently, it was widely expected that the Fed would continue to keep rates low for an extended period.

Sector performance was driven by quality spread tightening, largely a result of continued flows into the municipal market combined with less tax-exempt issuance. As a result, BBB-rated and lower credit quality sectors outperformed. Fund inflows continued to remain strong after an exceptional 2009. In addition, year-to-date issuance through the reporting period was about 1.5% ahead of last year’s pace: $261.0 billion versus 257.3 billion.⁴ However, approximately 30% of supply since the beginning of the year was in the form of taxable Build America Bonds.⁴

Historically, the state of Pennsylvania has a record of good financial management and budgetary balances over the years with a well-controlled debt position.

With the slowdown in the economy, the state faces challenges due to its below average income and a continuing loss of manufacturing jobs. State officials have said they will not meet payments due December 15 on $35.0 million in incinerator bonds.⁴

Pennsylvania was also dealing with dwindling economic stimulus funds from the federal government, forcing the state to find additional areas to cut expenses. We will continue to monitor its economic health and look for opportunities in more stable sectors within the state.

The Fund generated positive absolute and relative returns for the reporting period. In terms of yield curve positioning, a focus on the long-end of the curve contributed to returns relative to the Barclays Capital Pennsylvania Municipal Index, as this part of the curve generated the highest returns over the period.

As discussed earlier, during the reporting period, lower rated tax-exempt bonds experienced greater price increases relative to higher quality issues. An overweight exposure to BBB and non-rated bonds was a positive contributor to relative and absolute returns.

At a sector level, the Fund’s underweight in the tax-supported sector, Specifically state general obligation bonds, was the primary detractor on a relative basis. At the industry level, we were overweight in the life care sector, which contributed to positive relative returns. However, we continued to monitor the health care sector in light of recent health care reform, and we continued to diversify out of the sector by selling weaker issuers on analyst recommendations, including swapping deep discount hospital bonds for new issue higher coupon bonds and university revenue bonds.

Our overweight exposure to industrial development revenue/pollution control revenue bonds also contributed to relative performance during the period.

As noted earlier, the Fund seeks to invest primarily in medium- and lower grade securities; however, at times, conditions in the Pennsylvania municipal markets may be such that the Fund may invest in higher grade securities. During the reporting period, we invested in higher grade securities because of a relatively low supply of lower and medium-grade securities.

We use inverse floating rate securities in Invesco Pennsylvania Tax Free Income Fund to help manage duration, yield curve exposure and credit exposure, and to potentially enhance yield. Over the reporting period, the exposure to inverse floaters within the fund contributed positively to Fund return.

Thank you for investing in Invesco Van Kampen Pennsylvania Tax Free Income Fund and for sharing our long-term investment horizon.

1 Bureau of Economic Analysis
2 U.S. Federal Reserve
3 Morningstar Direct
4 Barclays Capital

See important Fund and index disclosures later in this report.

Mark Paris

Portfolio manager, is manager of Invesco Van Kampen Pennsylvania Tax Free Income Fund. Mr. Paris joined Invesco in 2010. He earned a B.B.A. in finance from the City University of New York.

Julius Williams

Portfolio manager, is manager of Invesco Van Kampen Pennsylvania Tax Free Income Fund. Mr. Williams joined Invesco in 2010. Mr. Williams earned a B.A. in economics and sociology and an M.E. in educational psychology from the University of Virginia.

Robert Wimmel

Portfolio manager, is manager of Invesco Van Kampen Pennsylvania Tax Free Income Fund. Mr. Wimmel joined Invesco in 2010. Mr. Wimmel earned a B.A. in anthropology from the University of Cincinnati and an M.A. in economics from the University of Illinois, Chicago.

Invesco Van Kampen Pennsylvania Tax Free Income Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable
sales charges


Class A Shares

Inception (5/1/87)	5.96	%

10 Years	3.79

5 Years	2.15

1 Year	6.89


Class B Shares

Inception (5/3/93)	4.22	%

10 Years	3.69

5 Years	2.23

1 Year	6.74


Class C Shares

Inception (8/13/93)	3.67	%

10 Years	3.55

5 Years	2.38

1 Year	10.38


Class Y Shares

10 Years	4.31	%

5 Years	3.18

1 Year	12.37

Effective June 1, 2010, Class A, Class B and Class C shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B and Class C shares, respectively, of Invesco Van Kampen Pennsylvania Tax Free Income Fund. Returns shown above for Class A, Class B and Class C shares are blended returns of the predecessor fund and Invesco Van Kampen Pennsylvania Tax Free Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

Class Y shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (5/1/87)	5.85	%

10 Years	3.76

5 Years	1.59

1 Year	7.90


Class B Shares

Inception (5/3/93)	4.07	%

10 Years	3.63

5 Years	1.65

1 Year	7.84


Class C Shares

Inception (8/13/93)	3.51	%

10 Years	3.51

5 Years	1.82

1 Year	11.40


Class Y Shares

10 Years	4.27	%

5 Years	2.59

1 Year	13.28

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.18%, 1.93%, 1.93% and 0.93%, respectively. The expense ratios presented above may vary from the expense ratios

presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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



7		Invesco Van Kampen Pennsylvania Tax Free Income Fund

Invesco Van Kampen Pennsylvania Tax Free Income Fund’s investment objective is to provide only Pennsylvania investors with a high level of current income exempt from federal and Pennsylvania state income taxes and, where possible under local law, local income and personal property taxes, through investment primarily in a varied portfolio of medium- and lower-grade municipal securities.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		Under normal market conditions, the Fund invests primarily in municipal securities. The yields of municipal securities may move differently and adversely compared to the yields of the overall debt securities markets. The Fund may invest up to 20% of its total assets in municipal securities subject to the federal alternative minimum tax. There could be changes in applicable tax laws or tax treatments that adversely affect the current federal or state tax status of municipal securities.

n		The Fund is more susceptible to political, economic, regulatory or other factors affecting issuers of Pennsylvania municipal securities than a fund that does not limit its investments to such issuers.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		Credit risk refers to an issuer’s ability to make timely payments of interest and principal. Credit risk should be low for the Fund because it invests substantially all of its assets in insured municipal securities. In the event that the insurers of the Fund’s insured municipal securities are downgraded in their claims-paying abilities by a nationally recognized statistical rating organization, the Fund would be subject to potential market value declines and increased credit risk on the municipal securities insured by such insurer.

n		The income you receive from the Fund is based primarily on prevailing interest rates, which can vary widely over the short-and long-term. If interest rates drop, your income from the Fund may drop as well.

n		If interest rates fall, it is possible that issuers of callable securities held by the Fund will call or prepay their securities before their maturity dates. In this event, the proceeds from the called securities would most likely be reinvested by the Fund in securities bearing the new, lower interest rates, resulting in a possible decline in the Funds’ income and distributions to shareholders and termination of any conversion option on convertible securities.

About indexes used in this report

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

n		The Barclays Capital Pennsylvania Municipal Index tracks the performance of Pennsylvania issued municipal bonds rated at least Baa or BBB by Moody’s or S&P, respectively, with maturities greater than 2 years.

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

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

Other information

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		VKMPX
Class B Shares		VKPAX
Class C Shares		VKPCX
Class Y Shares		VKPYX

Invesco Van Kampen Pennsylvania Tax Free Income Fund

Schedule of Investments

August 31, 2010


						Par
						Amount
	Coupon			Maturity		(000)		Value

Municipal Bonds–100.1%
Pennsylvania–93.1%
Allegheny Cnty, PA Higher Ed Bldg Auth Univ Rev Duquesne Univ Proj Rfdg (AMBAC Insd)		5.500	%		03/01/20	$	1,750	$	1,994,212

Allegheny Cnty, PA Higher Ed Bldg Auth Univ Rev Robert Morris Univ, Ser A		6.000	%		10/15/38		1,000		1,032,330

Allegheny Cnty, PA Hosp Dev Auth Rev Hlth Sys, Ser A		5.375	%		11/15/40		750		573,345

Allegheny Cnty, PA Hosp Dev Auth Rev OH Vly Gen Hosp Proj, Ser A		5.000	%		04/01/25		1,600		1,508,912

Allegheny Cnty, PA Hosp Dev Auth Rev Univ Pittsburgh Med		5.625	%		08/15/39		1,250		1,315,950

Allegheny Cnty, PA Indl Dev Auth Lease Rev (AMT)		6.625	%		09/01/24		980		884,107

Allegheny Cnty, PA Indl Dev Auth Lease Rev Residential Res Inc Proj		5.100	%		09/01/26		980		928,658

Allegheny Cnty, PA Port Auth Transn (NATL Insd)		5.500	%		03/01/16		1,000		1,028,860

Allegheny Cnty, PA Port Auth Transn (NATL Insd)		5.500	%		03/01/17		1,000		1,028,860

Allegheny Cnty, PA Redev Auth Pittsburgh Mills Proj		5.600	%		07/01/23		1,220		1,186,206

Allegheny Cnty, PA Residential Fin Auth Mtg Rev Single Family, Ser TT (GNMA Collateralized) (AMT)		5.000	%		05/01/35		1,155		1,178,319

Allegheny Cnty, PA, Ser C-61 (AGL Insd)		5.000	%		12/01/33		1,000		1,075,810

Allegheny Valley, PA Sch Dist, Ser A (NATL Insd)		5.000	%		11/01/28		1,500		1,573,395

Beaver Cnty, PA (AGM Insd)		5.550	%		11/15/31		1,390		1,537,646

Berks Cnty, PA Indl Dev Auth First Mtg Rev One Douglassville Proj Rfdg, Ser A (AMT)		6.125	%		11/01/34		490		427,006

Berks Cnty, PA Muni Auth College Albright College Proj		5.500	%		10/01/18		1,895		1,899,700

Bethlehem, PA Area Sch Dist (AGM Insd)		5.250	%		01/15/26		1,000		1,112,970

Bucks Cnty, PA Indl Dev Auth Ann’s Choice Inc Fac, Ser A		5.900	%		01/01/27		1,000		1,000,240

Bucks Cnty, PA Indl Dev Auth Ann’s Choice Inc Fac, Ser A		6.125	%		01/01/25		1,500		1,520,325

Bucks Cnty, PA Indl Dev Auth Rev Lutheran Cmnty Telford Ctr		5.750	%		01/01/37		2,000		1,700,980

Centre Cnty, PA Hosp Auth Rev Hosp Mt Nittany Med Ctr Proj (AGL Insd)		6.125	%		11/15/39		1,000		1,058,650

Chartiers Valley, PA Indl & Coml Dev Auth First Mtg Rev Asbury Hlth Ctr Proj Rfdg		5.250	%		12/01/15		500		504,405

Chartiers Valley, PA Indl & Coml Dev Auth First Mtg Rev Asbury Hlth Ctr Proj Rfdg		5.750	%		12/01/22		900		912,150

Coatesville, PA Sch Dist (AGM Insd)		5.000	%		08/15/30		850		941,681

Cumberland Cnty, PA Muni Auth Rev Diakon Lutheran Ministries Proj		5.000	%		01/01/36		1,000		921,760

Cumberland Cnty, PA Muni Auth Rev Messiah Vlg Proj, Ser A		5.625	%		07/01/28		1,000		967,680

Dauphin Cnty, PA Gen Auth Hlth Sys Rev Pinnacle Hlth Sys Proj, Ser A		6.000	%		06/01/36		2,215		2,375,100

Dauphin Cnty, PA Gen Auth Rev Office & Pkg Riverfront Office		6.000	%		01/01/25		1,200		1,014,576

Delaware Cnty, PA Auth College Rev Cabrini College (Radian Insd)		5.750	%		07/01/23		220		220,222

Delaware Cnty, PA Auth College Rev Haverford College		5.000	%		11/15/40		500		544,690

Delaware Cnty, PA Auth College Rev Neumann College		6.250	%		10/01/38		500		542,845

Delaware Cnty, PA Auth College Rev Neumann College Rfdg		6.000	%		10/01/31		1,500		1,519,020

Delaware Cnty, PA Indl Dev Auth Rev Wtr Fac Aqua PA Inc Proj, Ser A (NATL Insd) (AMT)		5.000	%		11/01/38		1,500		1,528,260

Delaware Cnty, PA Indl Dev Auth Rev Wtr Fac Philadelphia Subn Wtr (AMBAC Insd) (AMT)		5.350	%		10/01/31		2,500		2,546,925

Delaware Riv Port Auth PA & NJ Rev, Ser D		5.000	%		01/01/40		1,000		1,048,590

Delaware Vly, PA Regl Fin Auth Loc Govt Rev		5.750	%		07/01/17		3,535		4,035,238

Delaware Vly, PA Regl Fin Auth Loc Govt Rev		5.750	%		07/01/32		2,000		2,271,300

Erie, PA Higher Ed Bldg Auth College Rev Mercyhurst College		5.500	%		03/15/38		500		514,705

Erie, PA Higher Ed Bldg Auth College Rev Mercyhurst College Proj Rfdg, Ser B		5.000	%		03/15/23		1,000		1,031,010

Greensburg Salem, PA Sch Dist Rfdg (NATL Insd)		5.375	%		09/15/17		1,415		1,538,006

Harrisburg, PA Auth Wtr Rev Rfdg		5.250	%		07/15/31		1,000		1,023,560

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

9 Invesco Van Kampen Pennsylvania Tax Free Income Fund


						Par
						Amount
	Coupon			Maturity		(000)		Value

Pennsylvania–(continued)

Lancaster Cnty, PA Hosp Auth Rev Hlth Ctr Saint Annes Home		6.600	%		04/01/24	$	1,000	$	990,570

Lebanon Cnty, PA Hlth Fac Pleasant View Retirement, Ser A		5.300	%		12/15/26		1,000		966,060

Lehigh Cnty, PA Gen Purp Auth Rev Hosp Saint Lukes Bethlehem (Prerefunded @ 08/15/13)		5.250	%		08/15/23		1,980		2,254,646

Lehigh Cnty, PA Gen Purp Auth Rev Kidspeace Oblig Group Rfdg		6.000	%		11/01/23		1,760		1,356,590

Lehigh Cnty, PA Indl Dev Auth Hlth Fac Rev Lifepath Inc Proj		6.300	%		06/01/28		1,085		879,859

Lycoming Cnty, PA Auth Hlth Sys Rev Susquehanna Hlth Sys Proj, Ser A		5.750	%		07/01/39		1,250		1,295,412

Mercer Cnty, PA (NATL Insd)		5.500	%		10/01/17		1,095		1,152,356

Mifflin Cnty, PA Hosp Auth (Radian Insd) (Prerefunded @ 01/01/11)		6.200	%		07/01/25		1,500		1,544,670

Monroe Cnty, PA Hosp Auth Rev Hosp Pocono Med Ctr		5.125	%		01/01/37		1,500		1,511,580

Monroe Cnty, PA Hosp Auth Rev Hosp Pocono Med Ctr (Prerefunded @ 01/01/14)		6.000	%		01/01/43		1,000		1,174,850

Montgomery Cnty, PA Higher Ed & Hlth Auth Hosp Rev Abington Mem Hosp, Ser A		5.125	%		06/01/32		2,100		2,119,929

Montgomery Cnty, PA Higher Ed & Hlth Auth Rev Hlthcare Holy Redeemer Hlth, Ser A (AMBAC Insd)		5.250	%		10/01/17		1,000		1,000,470

Montgomery Cnty, PA Indl Dev Auth Retirement Cmnty Rev Acts Retirement Life Cmnty, Ser A-1		6.250	%		11/15/29		1,000		1,082,790

Montgomery Cnty, PA Indl Dev Auth Rev Mtg Whitemarsh Cmnty Proj		7.000	%		02/01/36		500		467,150

Montgomery Cnty, PA Indl Dev Auth Rev Mtg Whitemarsh Cont Care Proj		6.125	%		02/01/28		1,100		969,716

Montgomery Cnty, PA Indl Dev Auth Rev Mtg Whitemarsh Cont Care Proj		6.250	%		02/01/35		880		750,112

Mount Lebanon, PA Hosp Auth Saint Clair Mem Hosp, Ser A		5.625	%		07/01/32		2,000		2,022,880

Northampton Cnty, PA Gen Purp Auth Hosp Rev Saint Lukes Hosp Proj, Ser A		5.500	%		08/15/35		1,000		1,029,160

Northampton Cnty, PA Gen Purp Auth Hosp Rev Saint Lukes Hosp Proj, Ser C^(a)		4.500	%		08/15/32		500		518,705

Northampton Cnty, PA Gen Purp Auth Rev Higher Ed Lehigh Univ		5.500	%		11/15/33		1,000		1,123,760

Pennsylvania Econ Dev Fin Auth Exempt Fac Rev Reliant Energy, Ser B (AMT)		6.750	%		12/01/36		1,250		1,296,575

Pennsylvania Econ Dev Fin Auth Exempt Fac Rev Var Allegheny Energy Supply Co		7.000	%		07/15/39		1,830		2,098,022

Pennsylvania Econ Dev Fin Auth Res Recovery Rev Colver Proj Rfdg, Ser G (AMT)		5.125	%		12/01/15		800		774,208

Pennsylvania Econ Dev Fin Auth Sew Sludge Disp Rev Philadelphia Bio Solids Fac		6.250	%		01/01/32		1,000		1,082,930

Pennsylvania Econ Dev Fin Auth Solid Waste Disp Rev Waste Mgmt Inc Proj, Ser A (AMT)		5.100	%		10/01/27		1,150		1,164,605

Pennsylvania St Higher Ed Fac Auth Rev Edinboro Univ		6.000	%		07/01/43		500		521,065

Pennsylvania St Higher Ed Fac Auth Rev La Salle Univ		5.500	%		05/01/34		1,500		1,514,295

Pennsylvania St Higher Ed Fac Auth Rev Thomas Jefferson Univ		5.375	%		01/01/25		645		670,884

Pennsylvania St Higher Ed Fac Auth Rev Thomas Jefferson Univ		5.500	%		01/01/19		355		376,531

Pennsylvania St Higher Ed Fac Auth Rev Trustees Univ PA, Ser C^(b)		5.000	%		07/15/38		4,700		4,921,887

Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth Sys, Ser A (Prerefunded @ 01/15/11)		6.000	%		01/15/31		365		376,476

Pennsylvania St Tpk Commn Tpk Rev Cap Apprec Motor License Spl, Ser A-2^(c)		0.000/5.500	%		12/01/34		750		592,125

Pennsylvania St Tpk Commn Tpk Rev Cap Apprec Sub, Ser E^(c)		0.000/6.375	%		12/01/38		1,435		1,091,246

Pennsylvania St Tpk Commn Tpk Rev Conv Cap Apprec Sub, Ser C (AGM Insd)^(c)		0.000/6.250	%		06/01/33		2,000		1,626,340

Pennsylvania St Tpk Commn Tpk Rev Spl Motor License Fd, Ser A-1		5.000	%		12/01/38		500		535,715

Pennsylvania St Tpk Commn Tpk Rev Subser B-1		5.500	%		06/01/33		1,000		1,077,630

Philadelphia, PA Arpt Rev, Ser A (NATL Insd) (AMT)		5.000	%		06/15/25		1,000		1,025,370

Philadelphia, PA Auth For Indl Dev Rev Coml Dev Rfdg (AMT)		7.750	%		12/01/17		2,505		2,508,457

Philadelphia, PA Auth For Indl Dev Rev Mast Charter Sch		6.000	%		08/01/35		700		725,900

Philadelphia, PA Auth For Indl Dev Rev Please Touch Museum Proj		5.250	%		09/01/31		2,750		2,505,580

Philadelphia, PA Auth For Indl Dev Rev Please Touch Museum Proj		5.250	%		09/01/36		1,000		883,960

Philadelphia, PA Auth For Indl Dev Rev, Ser A		5.500	%		09/15/37		1,235		1,138,942

Philadelphia, PA Hosp & Higher Ed Fac Auth Rev Chester JHS, Ser B		5.000	%		05/15/40		850		872,295

Philadelphia, PA Muni Auth Rev Muni Svcs Bldg Lease Cap Apprec (AGM Insd)		*			03/15/11		3,750		3,729,150

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

10 Invesco Van Kampen Pennsylvania Tax Free Income Fund


						Par
						Amount
	Coupon			Maturity		(000)		Value

Pennsylvania–(continued)

Philadelphia, PA Muni Auth Rev Muni Svcs Bldg Lease Cap Apprec (AGM Insd)		*			03/15/12	$	3,775	$	3,700,859

Philadelphia, PA Muni Auth Rev Muni Svcs Bldg Lease Cap Apprec (AGM Insd)		*			03/15/13		4,400		4,229,588

Philadelphia, PA Rfdg, Ser A (AGL Insd)		5.500	%		08/01/24		2,000		2,306,540

Philadelphia, PA Sch Dist Rfdg, Ser D		5.000	%		09/01/18		1,490		1,708,538

Philadelphia, PA Sch Dist, Ser E (BHAC Insd)		5.125	%		09/01/23		1,500		1,707,150

Philadelphia, PA Wtr & Wastewtr Rev, Ser C (AGM Insd)		5.000	%		08/01/35		1,250		1,324,138

Pittsburgh & Allegheny Cnty, PA Sports & Exhib Auth Regl Asset Dist Ref (AGM Insd)^(d)		5.000	%		02/01/31		1,000		1,060,140

Saint Mary Hosp Auth PA Hlth Sys Rev, Ser B (Prerefunded @ 11/15/14)		5.375	%		11/15/34		2,250		2,642,985

State Pub Sch Bldg Auth PA Sch Rev Harrisburg Sch Dist Proj, Ser A (AGL Insd)		5.000	%		11/15/33		1,000		1,071,710

Sto-Rox Sch Dist PA (NATL Insd) (Prerefunded @ 12/15/10)		5.800	%		06/15/30		2,000		2,032,060

Susquehanna Area Regl Arpt Auth PA Arpt Sys Rev, Ser A (AMBAC Insd) (AMT)		5.500	%		01/01/19		2,500		2,573,900

Susquehanna Area Regl Arpt Auth PA Arpt Sys Rev, Ser D		5.375	%		01/01/18		2,350		2,201,527

Upper Saint Clair Twp PA Sch Dist (AGM Insd)		5.375	%		07/15/17		1,200		1,297,404

Washington Cnty, PA Indl Dev Auth College Rev Washington Jefferson College		5.250	%		11/01/30		500		539,680

Washington Cnty, PA Redev Auth Rev Victory Ctr Proj Tanger, Ser A^(a)		5.450	%		07/01/35		1,495		1,382,142

Washington Cnty, PA, Ser A (AMBAC Insd)		5.125	%		09/01/27		2,150		2,199,794

Washington Cnty, PA, Ser A (AMBAC Insd) (Prerefunded @ 09/01/12)		5.125	%		09/01/27		350		383,264

West Shore, PA Area Hosp Auth Holy Spirit Hosp Proj		6.250	%		01/01/32		2,045		2,063,998

Westmoreland Cnty, PA Indl Dev Auth Rev Retirement Cmnty Redstone, Ser A		5.750	%		01/01/26		2,500		2,356,450

Westmoreland Cnty, PA Indl Dev Auth Rev Retirement Cmnty Redstone, Ser A		5.875	%		01/01/32		900		803,169

									146,474,693

Guam–1.1%
Guam Govt Ltd Oblig Rev Sect 30, Ser A		5.750	%		12/01/34		1,250		1,317,700

Guam Pwr Auth Rev, Ser A		5.500	%		10/01/40		410		412,091

									1,729,791

Puerto Rico–4.1%
Puerto Rico Comwlth Infrastructure Fin Auth Spl Tax Rev Rfdg, Ser C (AMBAC Insd)		5.500	%		07/01/27		600		664,992

Puerto Rico Elec Pwr Auth Rev, Ser WW		5.250	%		07/01/33		1,500		1,573,485

Puerto Rico Elec Pwr Auth Rev, Ser WW		5.500	%		07/01/21		1,000		1,130,460

Puerto Rico Sales Tax Fin Corp Sales Tax Rev Cap Apprec, Ser A		*			08/01/34		3,500		839,195

Puerto Rico Sales Tax Fin Corp Sales Tax Rev Conv Cap Apprec, Ser A^(c)		0.000/6.250	%		08/01/33		1,065		747,363

Puerto Rico Sales Tax Fin Corp Sales Tax Rev First Sub, Ser A		5.375	%		08/01/39		470		496,461

Puerto Rico Sales Tax Fin Corp Sales Tax Rev First Sub, Ser A (Prerefunded @ 08/01/11)^(a)		5.000	%		08/01/39		1,000		1,043,700

									6,495,656

Virgin Islands–1.8%
Virgin Islands Pub Fin Auth Rev Matching Fd Ln Diago, Ser A		6.625	%		10/01/29		750		850,305

Virgin Islands Pub Fin Auth Rev Sr Lien/Cap Proj, Ser A-1		5.000	%		10/01/39		500		506,905

Virgin Islands Wtr & Pwr Auth Elec Sys Rev, Ser A		5.000	%		07/01/25		1,335		1,399,414

									2,756,624

Total Long-Term Investments–100.1% (Cost $152,328,598)									157,456,764

Total Short-Term Investments–2.8% (Cost $4,500,000)									4,500,000

TOTAL INVESTMENTS–102.9% (Cost $156,828,598)									161,956,764

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

11 Invesco Van Kampen Pennsylvania Tax Free Income Fund


	Value

Liability for Floating Rate Note Obligations Related to Securities Held–(2.0%)
(Cost ($3,135,000))
$(3,135) Notes with an interest rate of 0.30% at August 31, 2010 and a contractual maturity of collateral of 2038 (See Note 1(K) in the Notes to Financial Statements)^(e)	$	(3,135,000	)

Total Net Investments–100.9% (Cost $153,693,598)		158,821,764

LIABILITIES IN EXCESS OF OTHER ASSETS–(0.9%)		(1,483,191	)

NET ASSETS–-100.0%	$	157,338,573

Investment Abbreviations:


AGL		– Assured Guaranty Ltd.
AGM		– Assured Guaranty Municipal Corp.
AMBAC		– AMBAC Indemnity Corp.
AMT		– Alternative Minimum Tax
BHAC		– Berkshire Hathaway Assurance Corp.
GNMA		– Government National Mortgage Association
NATL		– National Public Finance Guarantee Corp.
Radian		– Radian Asset Assurance

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.


*		Zero coupon bond
^(a)		Variable Rate Coupon
^(b)		Underlying security related to Inverse Floaters entered into by the Fund. See Note 1(K) in the Notes to Financial Statements for further information.
^(c)		Security is a “step-up” bond where the coupon increases or steps up at a predetermined date.
^(d)		Security purchased on a when-issued or delayed delivery basis.
^(e)		Floating rate note obligations related to securities held. The interest rate shown reflects the rate in effect at August 31, 2010. At August 31, 2010, Fund investments with a value of $4,921,887 are held by the Dealer Trusts and serve as collateral for the $3,135,000 in floating rate note and dealer trust obligations outstanding at that date. Contractual maturities of the floating rate notes and interest rates in effect at August 31, 2010 are presented on the Schedule of Investments.

Fair Value Measurements

The following is a summary of the inputs used as of August 31, 2010 in valuing the Fund’s investments carried at value.


			Level 2		Level 3
	Level 1		Other Significant		Significant
Investments	Quoted Prices		Observable Inputs		Unobservable Inputs		Total

Municipal Securities	$	—	$	161,956,764	$	—	$	161,956,764

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

12 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Financial Highlights

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.


	Class A Shares
	Eleven
	months ended
	August 31,			Year ended September 30,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	15.93		$	14.76		$	16.84		$	17.43		$	17.44		$	17.41

Net investment income		0.66	^(a)		0.73	^(a)		0.72	^(a)		0.70	^(a)		0.69	^(a)		0.70

Net realized and unrealized gain (loss)		0.38			1.18			(2.03	)		(0.53	)		0.04			0.04

Total from investment operations		1.04			1.91			(1.31	)		0.17			0.73			0.74

Less:
Distributions from net investment income		0.68			0.74			0.73			0.68			0.68			0.71

Distributions from net realized gain		-0-			-0-			0.04			0.08			0.06			-0-

Total distributions		0.68			0.74			0.77			0.76			0.74			0.71

Net asset value, end of the period	$	16.29		$	15.93		$	14.76		$	16.84		$	17.43		$	17.44

Total return		6.74	%^(b)		13.60	%^(c)		(8.02	)%^(c)		0.95	%^(c)		4.39	%^(c)		4.30	%^(c)

Net assets at end of the period (in millions)	$	141.4		$	141.2		$	137.4		$	160.5		$	170.1		$	176.3

Ratio of expenses to average net assets		1.14	%^(d)		1.21	%		1.32	%		1.44	%		1.06	%		1.09	%

Ratio of net investment income to average net assets		4.54	%^(d)		5.05	%		4.43	%		4.08	%		4.02	%		3.98	%

Portfolio turnover^(e)		15	%		17	%		25	%		25	%		28	%		24	%


Supplemental ratio:
Ratio of expenses to average net assets (excluding interest and residual trust expenses)		1.10	%^(d)		1.13	%		1.06	%		1.08	%		1.06	%		1.09	%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 4.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $139,251.
^(e)		Portfolio turnover is calculated at the fund level and is not annualized for period less than a year.

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

16 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Financial Highlights—(continued)


	Class B Shares
	Eleven
	months ended
	August 31,			Year ended September 30,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	15.89		$	14.72		$	16.78		$	17.38		$	17.38		$	17.36

Net investment income		0.59	^(a)		0.68	^(a)		0.63	^(a)		0.57	^(a)		0.57	^(a)		0.55

Net realized and unrealized gain (loss)		0.38			1.18			(2.01	)		(0.54	)		0.05			0.05

Total from investment operations		0.97			1.86			(1.38	)		0.03			0.62			0.60

Less:
Distributions from net investment income		0.63			0.69			0.64			0.55			0.56			0.58

Distributions from net realized gain		-0-			-0-			0.04			0.08			0.06			-0-

Total distributions		0.63			0.69			0.68			0.63			0.62			0.58

Net asset value, end of the period	$	16.23		$	15.89		$	14.72		$	16.78		$	17.38		$	17.38

Total return		6.27	%^(b)(d)		13.21	%^(c)(f)		(8.46	)%^(c)(f)		0.20	%^(c)		3.63	%^(c)		3.50	%^(c)

Net assets at end of the period (in millions)	$	4.7		$	5.4		$	6.2		$	8.9		$	12.2		$	15.8

Ratio of expenses to average net assets		1.64	%^(d)(e)		1.57	%^(f)		1.81	%^(f)		2.19	%		1.81	%		1.83	%

Ratio of net investment income to average net assets		4.05	%^(d)(e)		4.70	%^(f)		3.94	%^(f)		3.32	%		3.26	%		3.23	%

Portfolio turnover^(g)		15	%		17	%		25	%		25	%		28	%		24	%


Supplemental ratio:
Ratio of expenses to average net assets (excluding interest and residual trust expenses)		1.60	%^(d)(e)		1.49	%^(f)		1.55	%^(f)		1.83	%		1.81	%		1.83	%


^(a)		Based on 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. Des not include sale charges and is not annualized for periods less than one year, if applicable.
^(c)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of 0.74%.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $5,003.
^(f)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of less than 1%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for period less than a year.

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

17 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Financial Highlights—(continued)


	Class C Shares
	Eleven
	months ended
	August 31,			Year ended September 30,
	2010			2009			2008			2007			2006			2005

Net asset value, beginning of the period	$	15.95		$	14.78		$	16.86		$	17.45		$	17.45		$	17.41

Net investment income		0.55	^(a)		0.62	^(a)		0.59	^(a)		0.58	^(a)		0.57	^(a)		0.58

Net realized and unrealized gain (loss)		0.38			1.18			(2.02	)		(0.54	)		0.05			0.04

Total from investment operations		0.93			1.80			(1.43	)		0.04			0.62			0.62

Less:
Distributions from net investment income		0.57			0.63			0.61			0.55			0.56			0.58

Distributions from net realized gain		-0-			-0-			0.04			0.08			0.06			-0-

Total distributions		0.57			0.63			0.65			0.63			0.62			0.58

Net asset value, end of the period	$	16.31		$	15.95		$	14.78		$	16.86		$	17.45		$	17.45

Total return		6.01	%^(b)		12.74	%^(c)		(8.71	)%^(c)		0.19	%^(c)		3.68	%^(c)(e)		3.60	%^(c)(e)

Net assets at end of the period (in millions)	$	11.1		$	6.8		$	4.5		$	4.8		$	5.2		$	5.2

Ratio of expenses to average net assets		1.89	%^(d)		1.96	%		2.07	%		2.19	%		1.80	%^(e)		1.75	%^(e)

Ratio of net investment income to average net assets		3.79	%^(d)		4.28	%		3.68	%		3.33	%		3.27	%^(e)		3.31	%^(e)

Portfolio turnover^(f)		15	%		17	%		25	%		25	%		28	%		24	%

Supplemental ratio:
Ratio of expenses to average net assets (excluding interest and residual trust expenses)		1.85	%^(d)		1.89	%		1.81	%		1.83	%		1.80	%^(e)		1.75	%^(e)


^(a)		Based on 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. Des not include sale charges and is not annualized for periods less than one year, if applicable.
^(c)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $9,035.
^(e)		The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of less than 1%.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for period less than a year.

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

18 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Financial Highlights—(continued)


	Class Y Shares
	June 1, 2010
	(Commencement of
	operations) to
	August 31,
	2010

Net asset value, beginning of the period	$	15.94

Net investment income^(a)		0.19

Net realized and unrealized gain (loss)		0.36

Total from investment operations		0.55

Less:
Distributions from net investment income		0.19

Distributions from net realized gain		-0-

Total distributions		0.19

Net asset value, end of the period	$	16.30

Total return^(b)		3.49	%

Net assets at end of the period (in millions)	$	0.2

Ratio of expenses to average net assets^(c)		0.85	%

Ratio of net investment income to average net assets^(c)		4.75	%

Portfolio turnover^(d)		15	%


Supplemental ratio:
Ratio of expenses to average net assets (excluding interest and residual trust expenses)^(c)		0.81	%


^(a)		Based on 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. Des not include sale charges and is not annualized for periods less than one year, if applicable.
^(c)		Ratios are annualized and based on average daily net assets (000’s omitted) of $90.
^(d)		Portfolio turnover is calculated at the fund level and is not annualized for period less than a year.

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from September 30 to August 31.

Prior to June 1, 2010, the Fund operated as Van Kampen Pennsylvania Tax Free Income Fund (the “Acquired Fund”). The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

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

The Fund’s investment objective is to provide only Pennsylvania investors with a high level of current income exempt from federal and Pennsylvania state income taxes and, where possible under local law, local income and personal property taxes, through investment primarily in a varied portfolio of medium- and lower-grade municipal securities.

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.

19 Invesco Van Kampen Pennsylvania Tax Free Income Fund


		Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices and may reflect appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
		Securities for which market quotations either are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C.		Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these

20 Invesco Van Kampen Pennsylvania Tax Free Income Fund


		arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
J.		Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
		Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
		There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
K.		Floating Rate Obligations Related to Securities Held — The Fund enters into transactions in which it transfers to Special Purpose Trusts established by a Broker Dealer (“Dealer Trusts”) fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The Fund may enter into shortfall agreements with the Dealer Trusts which commit the Fund to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption “Floating rate note obligations” on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption “Interest” and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts under the caption “Interest, credit line and residual trust expenses” on the Statement of Operations. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The average floating rate notes outstanding and average annual interest and fee rate related to residual interests during the eleven months ended August 31, 2010 were $6,780,831 and 0.91%, respectively.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0	.60%

Over $500 million		0	.50%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $610,016 and $832,639 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period October 1, 2009 to May 31, 2010 and for the year ended September 30, 2009, respectively.

Effective on the Reorganization date, the Adviser has contractually agreed, through June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 1.13%, 1.88%, 1.88% and 0.88% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waivers to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under the expense limitation.

For the period ended August 31, 2010, the Adviser did not waive advisory fees under this agreement.

21 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $16,248 and $25,244 to VKII for the period October 1, 2009 to May 31, 2010 and the year ended September 30, 2009, respectively. For the period ended August 31, 2010 and the year ended September 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

Prior to the Reorganization, under a legal services agreement, VKII provided legal services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $20,754 and $21,826 to VKII for the period October 1, 2009 to May 31, 2010 and the year ended September 30, 2009, respectively.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended August 31, 2010, IIS was paid $20,980 for providing such services. Prior to the Reorganization, the Acquired Fund paid $36,681 and $62,820 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent, for the period October 1, 2009 to May 31, 2010 and for the year ended September 30, 2009, respectively. For the period ended August 31, 2010 and the year ended September 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B and Class C shares. Pursuant to such agreements, the Acquired Fund paid $313,284 and $403,337 to VKFI for the period October 1, 2009 to May 31, 2010 and the year ended September 30, 2009, respectively.

For the period ended August 31, 2010 and the year ended September 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $2,950 in front-end sales commissions from the sale of Class A shares and $0, $495 and $868 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period October 1, 2009 to May 31, 2010, VKFI retained $15,075 in front-end sales commissions from the sale of Class A shares and $1,704, for CDSC imposed on redemptions by shareholders. For the year ended September 30, 2009, VKFI retained $21,900 in front-end sales commissions from the sale of Class A shares and $11,400, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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.

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of custodian credits which result from periodic overnight cash balances at the custodian. For the period October 1, 2009 to May 31, 2010 and the year ended August 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $0 and $573, respectively.

22 Invesco Van Kampen Pennsylvania Tax Free Income Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

For the period ended August 31, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. For the period October 1, 2009 to May 31, 2010, the Acquired Fund recognized expenses of $3,676 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”), of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund. For the year ended September 30, 2009, the Acquired Fund recognized expenses of $17,241 representing legal services provided by Skadden.

NOTE 6—Cash Balances

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Eleven Months Ended August 31, 2010 and the Years Ended September 30, 2009 and 2008:


	August 31, 2010		September 30, 2009		September 30, 2008

Ordinary income	$	1,034	$	2,133	$	2,084

Tax-exempt income		6,515,166		7,080,623		7,345,532

Long-term capital gain		-0-		-0-		393,785

Total distributions	$	6,516,200	$	7,082,756	$	7,741,401

Tax Components of Net Assets at Period-End:


	August 31, 2010

Undistributed ordinary income	$	85,409

Net unrealized appreciation — investments		5,063,632

Net unrealized appreciation — other investments		232,954

Temporary book/tax differences		(125,869	)

Capital loss carryforward		(7,135,146	)

Shares of beneficial interest		159,217,593

Total net assets	$	157,338,573

23 Invesco Van Kampen Pennsylvania Tax Free Income Fund


	Capital Loss
Expiration	Carryforward*

08/31/2016	$	113,623

08/31/2017		5,935,990

08/31/2018		1,085,533

Total capital loss carryforward	$	7,135,146


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund from October 1, 2009 to August 31, 2010 was $23,060,465 and $28,719,398, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	7,691,489

Aggregate unrealized (depreciation) of investment securities		(2,627,857	)

Net unrealized appreciation of investment securities	$	5,063,632

Cost of investments for tax purposes is $156,893,132.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, undistributed net investment income (loss) was increased by $8,251, undistributed net realized gain (loss) was decreased by $8,249 and shares of beneficial interest decreased by $2. This reclassification had no effect on the net assets of the Fund.

NOTE 10—Share Information


	For the						For the						For the
	eleven months ended						year ended						year ended
	August 31, 2010^(a)						September 30, 2009						September 30, 2008
	Shares			Value			Shares			Value			Shares			Value

Sales:
Class A		462,492^(b	⁾	$	7,292,351^(b	⁾		624,550		$	9,069,094			546,523		$	8,860,692

Class B		42,501			666,876			63,620			900,403			36,941			592,429

Class C		275,203			4,345,188			163,118			2,375,341			94,165			1,512,900

Class Y		10,234			163,408			-0-			-0-			-0-			-0-

Total Sales		790,430		$	12,467,823			851,288		$	12,344,838			677,629		$	10,966,021

Dividend reinvestment:
Class A		293,314		$	4,635,383			349,405		$	5,048,650			342,240		$	5,443,803

Class B		10,806			170,137			15,260			219,136			15,050			238,564

Class C		15,684			248,771			10,533			153,108			8,027			127,648

Class Y		25			409			-0-			-0-			-0-			-0-

Total Dividend Reinvestment		319,829		$	5,054,700			375,198		$	5,420,894			365,317		$	5,810,015

Repurchases:
Class A		(938,577	)	$	(14,830,876	)		(1,424,586	)	$	(20,394,055	)		(1,108,342	)	$	(17,875,079	)

Class B		(102,344	)^(b)		(1,610,266	)^(b)		(159,949	)		(2,299,976	)		(164,835	)		(2,650,866	)

Class C		(36,252	)		(576,620	)		(56,561	)		(789,000	)		(78,837	)		(1,280,321	)

Class Y		-0-			-0-			-0-			-0-			-0-			-0-

Total Repurchases		(1,077,173	)	$	(17,017,762	)		(1,641,096	)	$	(23,483,031	)		(1,352,014	)	$	(21,806,266	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 27% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
		In addition, 0.1% of the outstanding shares of the Fund are owned by Invesco or an investment advisor under common control with Invesco.
^(b)		Includes automatic conversion of 42,014 Class B shares into 41,896 Class A shares at a value of $663,119.

24 Invesco Van Kampen Pennsylvania Tax Free Income Fund

NOTE 11—Purposes of and Risks Relating to Certain Financial Instruments

The Fund may invest a portion of its assets in inverse floating rate municipal securities, which are variable debt instruments that pay interest at rates that move in the opposite direction of prevailing interest rates. These investments are typically used by the Fund in seeking to enhance the yield of the portfolio. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Inverse floating rate investments have varying degrees of liquidity. Inverse floating rate securities in which the Fund may invest include derivative instruments such as residual interest bonds (“RIBs”) or tender option bonds (“TOBs”). Such instruments are typically created by a special purpose trust that holds long-term fixed rate bonds (which may be tendered by the Fund in certain instances) and sells two classes of beneficial interests: short-term floating rate interests, which are sold to third party investors, and inverse floating residual interests, which are purchased by the Fund. The short-term floating rate interests have first priority on the cash flow from the bonds held by the special purpose trust and the Fund is paid the residual cash flow from the bonds held by the special purpose trust.

The Fund generally invests in inverse floating rate investments that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The market value of a “leveraged” inverse floating rate investment generally will fluctuate in response to changes in market rates of interest to a greater extent than the value of an unleveraged investment. The extent of increases and decreases in the value of inverse floating rate investments generally will be larger than changes in an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity, which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate investments.

In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.

The Fund may also invest in private placement securities. TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities.

NOTE 12—Borrowings

During the period ended August 31, 2010, the Acquired Fund entered into a $150,000,000 joint revolving bank credit facility. The Fund terminated its participation in the facility on May 31, 2010.

NOTE 13—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

25 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Van Kampen Pennsylvania Tax Free Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Pennsylvania Tax Free Income Fund (formerly known as Van Kampen Pennsylvania Tax Free Income Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights for the year ended September 30, 2009 and prior were audited by other independent auditors whose report dated November 20, 2009 expressed an unqualified opinion on those financial statements.

PricewaterhouseCoopers LLP

October 20, 2010

Houston, Texas

26 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. With the exception of the actual ending account values and expenses of Class Y shares, the example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2009, through August 31, 2010. The actual ending account value and expenses of Class Y shares in the example below are based on an investment of $1,000 invested as of close of business June 1, 2010 (commencement date) and held through August 31, 2010.

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 (as of close of business June 1, 2010 through August 31, 2010 for Class Y shares). Because the actual ending account value and expense information in the example is not based upon a six month period for Class Y shares, the ending account value and expense information may not provide a meaningful comparison to mutual funds that provide such information for a full six month period.

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period³		Ratio
A	$	1,000.00	$	1,057.91	$	5.76	$	1,019.61	$	5.65		1.11	%

B		1,000.00		1,053.63		9.89		1,015.58		9.70		1.91

C		1,000.00		1,053.25		9.63		1,015.83		9.45		1.86

Y		1,000.00		1,034.92		2.18		1,020.87		4.38		0.86


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010, through August 31, 2010 (as of close of business June 1, 2010 through August 31, 2010 for the Class Y shares), 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 184/365 to reflect the most recent fiscal half year. For Class Y shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 91 (as of close of business June 1, 2010 through August 31, 2010)/365. Because Class Y shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.
³	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in Class Y shares of the Fund and other funds because such data is based on a full six month period.

27 Invesco Van Kampen Pennsylvania Tax Free Income Fund


	Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen Pennsylvania Tax Free Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

28 Invesco Van Kampen Pennsylvania Tax Free Income Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


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

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

2 Invesco Van Kampen Small Cap Growth Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

3 Invesco Van Kampen Small Cap Growth Fund

Management’s Discussion of Fund Performance

Performance summary

As part of Invesco’s June 1, 2010, acquisition of Morgan Stanley’s retail asset management business, Van Kampen Small Cap Growth Fund was reorganized into Invesco Van Kampen Small Cap Growth Fund.

For the five-month reporting period ended August 31, 2010, Invesco Van Kampen Small Cap Growth Fund had negative returns but, at net asset value, held up better than its broad market/style-specific benchmark, the Russell 2000 Growth Index. Outperformance was driven primarily by stock selection in several sectors.

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

Fund vs. Indexes


Class A Shares	-9.15	%

Class B Shares	-9.41

Class C Shares	-9.50

Class Y Shares	-9.15

Russell 2000 Growth Index^▼ (Broad Market/Style Specific Index)	-10.27

^▼ Lipper Inc.

How we invest

We believe a growth investment strategy is an essential component of a diversified portfolio.

Our investment process seeks to identify small cap companies with growth rates that are higher and/or potentially more sustainable than what is implied by current valuations and market expectations.

We begin with a quantitative model that ranks all stock candidates based on a set of variables we believe are leading indicators of change and are common in those companies that have the potential for sustainable growth, competitive advantage and ability to execute. This proprietary model provides an objective approach to identifying new investment opportunities. The highest ranked stocks become the primary focus of our research efforts.

Our stock selection process includes the development and analysis of a fully integrated financial model, which allows

our team members to build a more complete understanding of the financial health of each investment candidate. The second step in our security research involves due diligence of the company, which includes in-depth discussions with members of company management teams. We also leverage Porter’s Five Forces Analysis, a theoretical tool that carefully examines a company on five dimensions (supplier power, threat of substitutes, barriers to entry, buying power and degree of rivalry). This tool is used to further measure and define the potential sustainability of a company’s earnings growth and whether there is upside to expectations already embedded in the price of the security.

Risk management plays an important role in portfolio construction, as our target portfolio attempts to maximize the relationship between risk and return.

We consider selling a stock for any of the following reasons:

Our investment thesis plays out or is no longer valid

Fundamentals deteriorate

Macroeconomic conditions change

Risk/reward becomes unfavorable or a higher conviction investment idea arises with better risk/reward.

Market conditions and your Fund

Despite increased conviction that the domestic financial crisis has been contained, investors continued to worry about the slope and duration of the economic recovery. Following a brief positive swing in sentiment pertaining to a generally better-than-expected earnings season, combined with positive response to the European bank “stress tests” in July, risk aversion once again returned to the market in August.

Investors continued to contemplate decelerating leading economic indicators, a still-fragile employment situation, eurozone sovereign debt woes, increased regulatory scrutiny and China’s self-imposed slow down given signs of overheating earlier in the year. The sea change in sentiment from month to month highlighted that uncertainty concerning the global macroeconomy remained elevated, resulting in increased volatility in the marketplace during the reporting period.

In this environment, all 10 sectors of the Russell 2000 Growth Index declined during the reporting period. While the consumer discretionary, health care and energy sectors all had double-digit negative returns, traditionally defensive sectors such as consumer staples, telecommunication services and utilities generally had the highest returns.

While the Fund had negative absolute returns during the reporting period, at net asset value, it held up slightly better than its style-specific benchmark, the

Portfolio Composition

By Sector


Information Technology	23.3	%

Health Care	20.2

Consumer Discretionary	18.0

Industrials	11.7

Financials	6.8

Materials	5.2

Energy	4.9

Consumer Staples	1.6

Telecommunication Services	1.6

Utilities	0.9

Money Market Funds
Plus Other Assets Less Liabilities	5.8

Top 10 Equity Holdings*


1. iShares Russell 2000
Growth Index Fund	2.0	%

2. GSI Commerce Inc.	1.2

3. TransDigm Group Inc.	1.2

4. IESI-BFC Ltd.	1.1

5. Jarden Corp.	1.0

6. Esterline Technologies Corp.	1.0

7. Netscout Systems Inc.	1.0

8. MICROS Systems Inc.	0.9

9. TIBCO Software Inc.	0.9

10. Maidenform Brands Inc.	0.9

Top Five Industries


1. Application Software	5.8	%

2. Health Care Equipment	4.2

3. Health Care Services	3.2

4. Electronic Equipment Manufacturers	3.1

5. Semiconductors	2.8


Total Net Assets		$964.0 million

Total Number of Holdings*		133

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

*Excluding money market fund holdings.

4 Invesco Van Kampen Small Cap Growth Fund

Russell 2000 Growth Index. The Fund outperformed the index by the widest margins in the consumer discretionary, health care and energy sectors. Outperformance in each of these sectors was driven largely by stock selection.

The Fund outperformed the Russell 2000 Growth Index most significantly in the consumer discretionary sector, driven by stock selection. Examples of holdings that made key contributions to performance included automotive components and systems supplier TRW Automotive, intimate apparel maker Maidenform Brands and restaurant operator Buffalo Wild Wings.

Outperformance in the health care sector was driven primarily by stock selection. In this sector, holdings that contributed to the Fund’s performance included vascular disease and disorder technology provider ev3, skin medication developer Medicis Pharmaceutical and pharmaceutical products maker Human Genome Sciences. An underweight position in the health care sector also contributed to outperformance. Before the end of the fiscal year, we sold our holdings in Human Genome Sciences.

The Fund also outperformed in the energy sector, largely due to stock selection. Two energy holdings that contributed to performance included oil and gas exploration services provider Complete Production Services and drilling contractor Patterson UTI. Before the end of the fiscal year, we sold our holdings in Complete Production Services.

Some of the Fund’s outperformance was offset by underperformance in other sectors, including information technology (IT) and financials. The Fund underperformed by the widest margin in the IT sector, driven by stock selection. In this sector, examples of holdings that detracted from performance included Fairchild Semiconductor International, electronic manufacturing services provider Plexus and network infrastructure solutions provider Ciena. In the financials sector, detractors from performance included asset management firm Affiliated Managers Group and financial services provider SVB Financial.

As we’ve discussed, the stock market experienced volatility during the reporting period. We would like to caution investors against making investment decisions based on short-term performance. As always, we recommend that you consult your financial adviser to discuss your individual financial program.

We thank you for your commitment to Invesco Van Kampen Small Cap Growth Fund.

See important Fund and index disclosures later in this report.

Matthew Hart

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Van Kampen Small Cap Growth Fund. He joined Invesco in 2010. Mr. Hart earned a B.B.A. from Southern Methodist University.

Justin Speer

Portfolio manager, is manager of Invesco Van Kampen Small Cap Growth Fund. He joined Invesco in 2010. Mr. Speer earned a B.S. in finance and accounting from Texas Christian University.

5 Invesco Van Kampen Small Cap Growth Fund



Average Annual Total Returns
As of 8/31/10, including maximum applicable sales charges

Class A Shares

Inception (11/27/00)	-1.33	%

5 Years	0.01

1 Year	2.82


Class B Shares

Inception (11/27/00)	-1.34	%

5 Years	0.20

1 Year	3.49


Class C Shares

Inception (11/27/00)	-1.49	%

5 Years	0.39

1 Year	6.86


Class Y Shares

Inception (2/2/06)	-1.37	%

1 Year	9.00

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen Small Cap Growth Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Small Cap Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.



Average Annual Total Returns
As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.

Class A Shares

Inception (11/27/00)	-1.28	%

5 Years	1.38

1 Year	9.45


Class B Shares

Inception (11/27/00)	-1.29	%

5 Years	1.59

1 Year	10.55


Class C Shares

Inception (11/27/00)	-1.43	%

5 Years	1.77

1 Year	13.91


Class Y Shares

Inception (2/2/06)	-1.24	%

1 Year	16.17

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.40%, 2.15%, 2.15% and 1.15%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

7 Invesco Van Kampen Small Cap Growth Fund

Invesco Van Kampen Small Cap Growth Fund’s investment objective is to seek capital appreciation.

Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		Investing in REITs (real estate investment trusts) makes a Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general and may involve duplication of management fees and other expenses. REITs may be less diversified than other pools of securities, may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		Small capitalization companies often have less predictable earnings, more limited product lines, markets, distribution channels or financial resources, and the management of such companies may be dependent upon one or a few key people. The market movements of equity securities of small capitalization companies may be more abrupt and volatile than the market movements of equity securities of larger, more established companies or the stock market in general and are generally less liquid than equity securities of larger companies.

n		Investments in growth-oriented equity securities may have above-average volatility of price movement. The returns on growth securities may or may not move in tandem with the returns on other styles of investing or the overall stock markets.

n		The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation, and trading and foreign taxation issues.

About indexes used in this report

n		The Russell 2000^{^®} Growth Index is an unmanaged index considered representative of small-cap growth stocks. The Russell 2000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

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

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

Other information

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

n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE


Fund Nasdaq Symbols
Class A Shares		VASCX
Class B Shares		VBSCX
Class C Shares		VCSCX
Class Y Shares		VISCX

8 Invesco Van Kampen Small Cap Growth Fund

Schedule of Investments

August 31, 2010


	Number of
Description	Shares		Value

Common Stocks–92.2%
Advertising–0.6%
National CineMedia, Inc.		370,043	$	5,879,983

Aerospace & Defense–2.2%
Esterline Technologies Corp.^(a)		213,116		9,803,336

TransDigm Group, Inc.		190,911		11,051,838

				20,855,174

Alternative Carriers–0.7%
AboveNet, Inc.^(a)		134,943		6,965,758

Apparel, Accessories & Luxury Goods–2.2%
Carter’s, Inc.^(a)		264,433		5,907,433

Maidenform Brands, Inc.^(a)		329,029		8,775,204

Warnaco Group, Inc.^(a)		155,025		6,492,447

				21,175,084

Apparel Retail–2.2%
Children’s Place Retail Stores, Inc.^(a)		143,001		6,243,424

Foot Locker, Inc.		621,400		7,295,236

J. Crew Group, Inc.^(a)		244,812		7,464,318

				21,002,978

Application Software–5.8%
Blackboard, Inc.^(a)(b)		243,720		8,064,695

Bottomline Technologies, Inc.^(a)		501,200		7,021,812

Informatica Corp.^(a)		214,837		6,909,158

Netscout Systems, Inc.^(a)		577,158		9,136,411

QLIK Technologies, Inc.^(a)		159,112		2,964,256

SFN Group, Inc.^(a)		719,886		3,916,180

Solera Holdings, Inc.		118,982		4,721,206

SS&C Technologies Holdings, Inc.^(a)		330,108		4,651,222

TIBCO Software, Inc.^(a)		615,072		8,912,393

				56,297,333

Asset Management & Custody Banks–0.5%
Affiliated Managers Group, Inc.^(a)		72,744		4,670,892

Auto Parts & Equipment–0.8%
TRW Automotive Holdings Corp.^(a)		222,484		7,733,544

Automotive Retail–0.6%
Asbury Automotive Group, Inc.^(a)		516,530		6,162,203

Biotechnology–2.7%
Acorda Therapeutics, Inc.^(a)		163,001		4,909,590

BioMarin Pharmaceuticals, Inc.^(a)		405,574		8,229,097

Incyte Corp., Ltd.^(a)		383,318		4,799,141

United Therapeutics Corp.^(a)		173,577		8,022,729

				25,960,557

Building Products–0.6%
Owens Corning^(a)		220,339		5,993,221

Catalog Retail–0.6%
HSN, Inc.^(a)		234,018		6,152,333

Communications Equipment–1.8%
Arris Group, Inc.^(a)		536,806		4,385,705

Ciena Corp.^(a)		675,968		8,429,321

Finisar Corp.^(a)(b)		336,474		4,303,502

				17,118,528

Computer & Electronics Retail–1.4%
hhgregg, Inc.^(a)		297,091		5,615,020

RadioShack Corp.		430,099		7,948,229

				13,563,249

Computer Storage & Peripherals–0.8%
QLogic Corp.^(a)		484,649		7,218,847

Construction & Engineering–0.5%
Dycom Industries, Inc.^(a)		620,959		4,992,510

Consumer Finance–0.7%
Cardtronics, Inc.^(a)		452,157		6,262,374

Data Processing & Outsourced Services–0.6%
VeriFone Systems, Inc.^(a)		252,401		6,103,056

Distributors–0.8%
LKQ Corp.^(a)		423,471		7,876,561

Electric Utilities–0.9%
ITC Holdings Corp.		148,009		8,578,602

Electrical Components & Equipment–2.0%
EnerSys^(a)		219,305		4,840,061

Fushi Copperweld, Inc.^(a)		721,000		5,912,200

Regal-Beloit Corp.		144,618		8,000,268

				18,752,529

Electronic Equipment Manufacturers–3.1%
Checkpoint Systems, Inc.^(a)		463,995		8,509,668

Cogent, Inc.^(a)		667,248		7,339,728

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

9 Invesco Van Kampen Small Cap Growth Fund


	Number of
Description	Shares		Value

Electronic Equipment Manufacturers–(continued)

Coherent, Inc.^(a)		228,752	$	8,498,137

Vishay Intertechnology, Inc.^(a)		749,568		5,764,178

				30,111,711

Electronic Manufacturing Services–1.1%
Multi-Fineline Electronix, Inc.^(a)		101,083		2,106,570

Plexus Corp.^(a)		366,444		8,435,541

				10,542,111

Environmental & Facilities Services–2.0%
IESI-BFC Ltd. (Canada)		466,959		11,034,241

Waste Connections, Inc.^(a)		217,935		8,227,046

				19,261,287

Fertilizers & Agricultural Chemicals–0.7%
Scotts Miracle-Gro Co., Class A		137,250		6,482,318

Footwear–0.6%
Steven Madden Ltd.^(a)		171,195		5,894,244

General Merchandise Stores–1.3%
Big Lots, Inc.^(a)		199,886		6,248,436

Dollar Tree, Inc.^(a)		143,811		6,518,953

				12,767,389

Health Care Distributors–0.7%
PSS World Medical, Inc.^(a)		384,217		7,054,224

Health Care Equipment–4.2%
American Medical Systems Holdings, Inc.^(a)		410,901		7,486,616

Arthrocare Corp.^(a)		245,301		6,368,014

NuVasive, Inc.^(a)(b)		267,888		7,862,513

Sirona Dental Systems, Inc.^(a)		247,704		7,807,630

Thoratec Corp.^(a)		86,876		2,797,407

Volcano Corp.^(a)		385,408		8,517,517

				40,839,697

Health Care Facilities–0.8%
Health Management Associates, Inc., Class A^(a)		1,286,604		8,041,275

Health Care Services–3.2%
Emergency Medical Services Corp., Class A^(a)		177,310		8,519,745

Genoptix, Inc.^(a)		313,480		5,394,991

Gentiva Health Services, Inc.^(a)		407,601		8,376,201

HMS Holdings Corp.^(a)		162,510		8,479,772

				30,770,709

Health Care Supplies–1.7%
Cooper Cos., Inc.		211,371		8,526,706

Haemonetics Corp.^(a)		157,218		8,187,914

				16,714,620

Health Care Technology–1.3%
MedAssets, Inc.^(a)(b)		296,694		5,880,475

SXC Health Solutions Corp. (Canada)^(a)		83,078		6,463,468

				12,343,943

Healthcare–0.8%
Brookdale Senior Living, Inc.^(a)		592,639		7,941,363

Homebuilding–0.7%
Meritage Homes Corp.^(a)		387,532		6,921,322

Housewares & Specialties–1.9%
Jarden Corp.		366,649		9,877,524

Tupperware Brands Corp.		220,570		8,677,224

				18,554,748

Industrial Machinery–2.2%
Actuant Corp.		318,093		6,304,603

Albany International Corp.		133,050		2,361,637

Barnes Group, Inc.		404,485		6,152,217

CLARCOR, Inc.		188,845		6,352,746

				21,171,203

Internet Retail–1.2%
GSI Commerce, Inc.^(a)		486,908		11,086,895

Internet Software & Services–2.1%
Infospace, Inc.^(a)		531,313		3,724,504

Open Text Corp. (Canada)^(a)(b)		169,369		7,452,236

VistaPrint NV (Netherlands)^(a)		104,873		3,217,503

Websense, Inc.^(a)		277,117		5,389,926

				19,784,169

Investment Banking & Brokerage–2.1%
Evercore Partners, Inc., Class A		327,124		8,011,267

Knight Capital Group, Inc., Class A^(a)		591,983		7,032,758

Stifel Financial Corp.^(a)		107,768		4,664,199

				19,708,224

IT Consulting & Other Services–2.1%
Acxiom Corp.^(a)		629,231		7,799,318

Lender Processing Services, Inc.		206,241		6,049,048

Sapient Corp.		632,871		6,600,845

				20,449,211

Life Sciences Tools & Services–1.5%
Bruker Corp.^(a)(b)		493,536		5,868,143

Parexel International Corp.^(a)		412,170		8,198,061

				14,066,204

Managed Health Care–0.8%
AMERIGROUP Corp.^(a)		204,246		7,536,677

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

10 Invesco Van Kampen Small Cap Growth Fund


	Number of
Description	Shares		Value

Marine–0.7%
Kirby Corp.^(a)		174,000	$	6,408,420

Marine Ports & Services–0.4%
Aegean Marine Petroleum Network, Inc. (Marshall Islands)		246,665		3,672,842

Metal & Glass Containers–0.9%
Greif, Inc., Class A		151,111		8,590,660

Oil & Gas Drilling–0.8%
Patterson–UTI Energy, Inc.		506,487		7,475,748

Oil & Gas Equipment & Services–1.4%
Newpark Resources, Inc.^(a)		818,918		7,149,154

Oil States International, Inc.^(a)		154,187		6,357,130

				13,506,284

Oil & Gas Exploration & Production–2.1%
Brigham Exploration Co.^(a)		379,796		5,818,475

Comstock Resources, Inc.^(a)		369,791		8,050,350

Whiting Petroleum Corp.^(a)		72,922		6,186,702

				20,055,527

Oil & Gas Refining & Marketing–0.7%
World Fuel Services Corp.		245,223		6,262,995

Packaged Foods & Meats–1.4%
Diamond Foods, Inc.^(b)		119,429		5,043,487

TreeHouse Foods, Inc.^(a)		206,468		8,568,422

				13,611,909

Paper Packaging–1.2%
Packaging Corp. of America		245,300		5,467,737

Rock-Tenn Co., Class A		131,369		6,329,358

				11,797,095

Paper Products–0.7%
Domtar Corp.		110,624		6,639,652

Personal Products–0.2%
Inter Parfums, Inc.		117,759		1,933,603

Pharmaceuticals–2.4%
Auxilium Pharmaceuticals, Inc.^(a)(b)		202,181		5,238,510

MAP Pharmaceuticals, Inc.^(a)		121,628		1,315,407

Medicis Pharmaceutical Corp., Class A		315,582		8,678,505

Salix Pharmaceuticals Ltd.^(a)		211,749		8,016,817

				23,249,239

Property & Casualty Insurance–0.8%
ProAssurance Corp.^(a)		148,269		7,850,844

Regional Banks–0.8%
SVB Financial Group^(a)		204,952		7,618,066

Restaurants–1.3%
BJ’s Restaurants, Inc.^(a)		261,384		6,257,533

Buffalo Wild Wings, Inc.^(a)		151,249		6,325,233

				12,582,766

Semiconductor Equipment–0.8%
Cymer, Inc.^(a)		255,906		7,531,314

Semiconductors–2.8%
Cavium Networks, Inc.^(a)(b)		274,828		6,634,348

Cypress Semiconductor Corp.^(a)		818,995		8,669,062

Fairchild Semiconductor International, Inc.^(a)		746,180		5,767,971

Microsemi Corp.^(a)		441,656		6,183,184

				27,254,565

Specialized Consumer Services–0.8%
Coinstar, Inc.^(a)(b)		185,579		8,072,687

Specialty Chemicals–1.7%
Cytec Industries, Inc.		133,236		6,319,384

Rockwood Holdings, Inc.^(a)		222,372		5,748,316

Stepan Co.		81,176		4,501,209

				16,568,909

Specialty Stores–0.8%
Tractor Supply Co.		116,856		7,943,871

Systems Software–2.7%
CommVault Systems, Inc.^(a)		339,667		8,338,825

Fortinet, Inc.^(a)		105,064		2,142,255

MICROS Systems, Inc.^(a)		237,802		9,060,256

Rovi Corp.^(a)		157,543		6,854,696

				26,396,032

Trucking–0.8%
Landstar System, Inc.		223,489		8,041,134

Wireless Telecommunication Services–0.9%
Syniverse Holdings, Inc.^(a)		411,648		8,467,599

Total Common Stocks 92.2%				888,890,621

Investment Company–2.0%
iShares Russell 2000 Growth Index Fund^(b)		297,400		19,521,336

Total Long-Term Investments 94.2% (Cost $903,272,802)				908,411,957

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

11 Invesco Van Kampen Small Cap Growth Fund

Financial Highlights

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.


	Class A Shares
	Five months ended			Year ended March 31,
	August 31, 2010			2010			2009			2008			2007			2006

Net asset value, beginning of the period	$	9.62		$	6.93		$	10.15		$	10.70		$	10.80		$	7.98

Net investment income (loss)^(a)		(0.04	)		(0.09	)		(0.09	)		(0.10	)		(0.09	)		(0.10	)

Net realized and unrealized gain (loss)		(0.84	)		2.78			(3.13	)		0.29			(0.01	)		2.92

Total from investment operations		(0.88	)		2.69			(3.22	)		0.19			(0.10	)		2.82

Less distributions from net realized gain		-0-			-0-			-0-			0.74			-0-			-0-

Net asset value, end of the period	$	8.74		$	9.62		$	6.93		$	10.15		$	10.70		$	10.80

Total return*		(9.15	)%^(b)		38.82	%^(c)		(31.72	)%^(c)		0.79	%^(c)		(0.83	)%^(c)		35.21	%^(c)

Net assets at end of the period (in millions)	$	691.5		$	749.0		$	402.6		$	317.6		$	226.6		$	146.9

Ratio of expenses to average net assets*		1.34	%^(e)		1.39	%^(d)		1.40	%^(d)		1.38	%^(d)		1.47	%^(d)		1.61	%^(d)

Ratio of net investment income (loss) to average net assets*		(1.04	)%^(e)		(1.04	)%		(1.00	)%		(0.92	)%		(0.92	)%		(1.06	)%

Portfolio turnover		63	%^(f)		234	%		219	%		194	%		321	%		277	%

* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.34	%^(e)		N/A			N/A			N/A			N/A			1.63	%^(d)

Ratio of net investment income (loss) to average net assets		(1.04	)%^(e)		N/A			N/A			N/A			N/A			(1.09	)%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		The ratio of expenses to average net assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended March 31, 2006.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $739,669.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A = Not Applicable

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

16 Invesco Van Kampen Small Cap Growth Fund

Financial Highlights—(continued)


	Class B Shares
	Five months ended			Year ended March 31,
	August 31, 2010			2010			2009			2008			2007			2006

Net asset value, beginning of the period	$	9.03		$	6.51		$	9.59		$	10.22		$	10.39		$	7.74

Net investment income (loss)^(a)		(0.05	)		(0.09	)		(0.14	)		(0.18	)		(0.16	)		(0.16	)

Net realized and unrealized gain (loss)		(0.80	)		2.61			(2.94	)		0.29			(0.01	)		2.81

Total from investment operations		(0.85	)		2.52			(3.08	)		0.11			(0.17	)		2.65

Less distributions from net realized gain		-0-			-0-			-0-			0.74			-0-			-0-

Net asset value, end of the period	$	8.18		$	9.03		$	6.51		$	9.59		$	10.22		$	10.39

Total return*		(9.41	)%^(b)(d)		38.71	%^(c)(e)		(32.12	)%^(c)(e)		0.03	%^(c)		(1.64	)%^(c)		34.24	%^(c)

Net assets at end of the period (In millions)	$	19.2		$	23.2		$	22.0		$	42.7		$	50.6		$	59.1

Ratio of expenses to average net assets*		1.63	^(d)(g)		1.53	%^(e)(f)		2.04	%^(e)(f)		2.14	%^(f)		2.22	%^(f)		2.36	%^(f)

Ratio of net investment income (loss) to average net assets*		(1.33	)%^(d)(g)		(1.19	)%^(e)		(1.65	)%^(e)		(1.68	)%		(1.68	)%		(1.83	)%

Portfolio turnover		63	%^(h)		234	%		219	%		194	%		321	%		277	%

* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.63	%^(d)(g)		N/A			N/A			N/A			N/A			2.39	%^(f)

Ratio of net investment income (loss) to average net assets		(1.33	)%^(d)(g)		N/A			N/A			N/A			N/A			(1.86	)%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		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 0.54%.
^(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 less than 1%.
^(f)		The ratio of expenses to average net assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended March 31, 2006.
^(g)		Ratios are annualized and based on average daily net assets (000’s omitted) of $21,835.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A = Not Applicable

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

17 Invesco Van Kampen Small Cap Growth Fund

Financial Highlights—(continued)


	Class C Shares
	Five months ended			Year ended March 31,
	August 31, 2010			2010			2009			2008			2007			2006

Net asset value, beginning of the period	$	8.95		$	6.50		$	9.58		$	10.21		$	10.38		$	7.73

Net investment income (loss)^(a)		(0.07	)		(0.14	)		(0.14	)		(0.18	)		(0.16	)		(0.16	)

Net realized and unrealized gain (loss)		(0.78	)		2.59			(2.94	)		0.29			(0.01	)		2.81

Total from investment operations		(0.85	)		2.45			(3.08	)		0.11			(0.17	)		2.65

Less distributions from net realized gain		-0-			-0-			-0-			0.74			-0-			-0-

Net asset value, end of the period	$	8.10		$	8.95		$	6.50		$	9.58		$	10.21		$	10.38

Total return*		(9.50	)%^(b)		37.69	%^(c)		(32.15	)%^(c)		0.03	%^(c)		(1.64	)%^(c)		34.28	%^(c)

Net assets at end of the period (in millions)	$	53.7		$	62.5		$	39.1		$	42.4		$	31.7		$	28.0

Ratio of expenses to average net assets*		2.09	%^(e)		2.14	%^(d)		2.14	%^(d)		2.14	%^(d)		2.22	%^(d)		2.36	%^(d)

Ratio of net investment income (loss) to average net assets*		(1.79	)%^(e)		(1.79	)%		(1.75	)%		(1.67	)%		(1.68	)%		(1.83	)%

Portfolio turnover		63	%^(f)		234	%		219	%		194	%		321	%		277	%

* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		2.09	%^(e)		N/A			N/A			N/A			N/A			2.39	%^(d)

Ratio of net investment income (loss) to average net assets		(1.79	)%^(e)		N/A			N/A			N/A			N/A			(1.86	)%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		The ratio of expenses to average net assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended March 31, 2006.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $59,780.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.

N/A = Not Applicable

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

18 Invesco Van Kampen Small Cap Growth Fund

Financial Highlights—(continued)


	Class Y Sharesˆ
																February 2, 2006
																(commencement of
	Five months ended			Year ended March 31,												operations) to
	August 31, 2010			2010			2009			2008			2007			March 31, 2006

Net asset value, beginning of the period	$	9.73		$	6.99		$	10.20		$	10.74		$	10.80		$	10.00

Net investment income (loss)^(a)		(0.03	)		(0.06	)		(0.07	)		(0.07	)		(0.07	)		(0.01	)

Net realized and unrealized gain (loss)		(0.86	)		2.80			(3.14	)		0.27			0.01			0.81

Total from investment operations		(0.89	)		2.74			(3.21	)		0.20			(0.06	)		0.80

Less distributions from net realized gain		-0-			-0-			-0-			0.74			-0-			-0-

Net asset value, end of the period	$	8.84		$	9.73		$	6.99		$	10.20		$	10.74		$	10.80

Total return*		(9.15	)%^(b)		39.20	%^(c)		(31.47	)%^(c)		0.88	%^(c)		(0.56	)%^(c)		8.00	%^(c)**

Net assets at end of the period (In millions)	$	199.6		$	267.6		$	91.6		$	81.0		$	15.5		$	0.1

Ratio of expenses to average net assets*		1.09	%^(e)		1.14	%^(d)		1.15	%^(d)		1.14	%^(d)		1.22	%^(d)		1.36	%^(d)

Ratio of net investment income (loss) to average net assets*		(0.80	)%^(e)		(0.76	)%		(0.75	)%		(0.63	)%		(0.67	)%		(0.68	)%

Portfolio turnover		63	%^(f)		234	%		219	%		194	%		321	%		277	%^(f)

* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		1.09	%^(e)		N/A			N/A			N/A			N/A			1.42	%^(d)

Ratio of net investment income (loss) to average net assets		(0.80	)%^(e)		N/A			N/A			N/A			N/A			(0.75	)%


^(a)		Based on 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)		Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
^(d)		The ratio of expenses to average net assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratios would decrease by 0.01% for the year ended March 31, 2006.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $244,679.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.
^ˆ		On June 1, 2010, the Fund’s former Class I Shares were reorganized into Class Y Shares.
^**		Non-Annualized

N/A = Not Applicable

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

19 Invesco Van Kampen Small Cap Growth Fund

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from March 31 to August 31.

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

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

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

The Fund’s investment objective is capital appreciation.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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.

20 Invesco Van Kampen Small Cap Growth Fund


		Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
		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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
J.		Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the

21 Invesco Van Kampen Small Cap Growth Fund


		collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
K.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
		The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
L.		Expense Offset Arrangements — The expense offset arrangement is comprised of custodian credits which result from periodic overnight cash balances at the custodian. For the period ended August 31, 2010 and the years ended March 31, 2010 and 2009, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $0, $236 and $9,715, respectively.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0	.80%

Next $500 million		0	.75%

Over $1 billion		0	.70%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $1,442,770 and $6,682,320 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period April 1, 2010 to May 31, 2010 and for the year ended March 31, 2010, respectively.

Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, and Class Y shares to 1.38%, 2.13%, 2.13% and 1.13%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

For the period ended August 31, 2010, the Adviser waived advisory fees of $21,841.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $12,017 and $68,300 to VKII for the period April 1, 2010 to May 31, 2010 and the year ended March 31, 2010, respectively. For the period ended August 31, 2010 and the year ended March 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

22 Invesco Van Kampen Small Cap Growth Fund

Prior to the Reorganization, under a legal services agreement, VKII provided legal services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $11,582 and $36,300 to VKII for the period April 1, 2010 to May 31, 2010 and the year ended March 31, 2010, respectively.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended August 31, 2010, IIS was paid $581,905 for providing such services. Prior to the Reorganization, the Acquired Fund paid $103,404 and approximately $494,000 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent, for the period April 1, 2010 to May 31, 2010 and for the year ended March 31, 2010, respectively. For the period ended August 31, 2010 and the year ended March 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B and Class C shares. Pursuant to such agreements, the Acquired Fund paid $455,620 and $2,117,156 to VKFI for the period April 1, 2010 to May 31, 2010 and the year ended March 31, 2010, respectively.

For the period ended August 31, 2010 and the year ended March 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $8,873 in front-end sales commissions from the sale of Class A shares and $644, $7,057 and $2,650 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period April 1, 2010 to May 31, 2010, VKFI retained $19,613 in front-end sales commissions from the sale of Class A shares and $10,839, for CDSC imposed on redemptions by shareholders. For the year ended March 31, 2010, VKFI retained approximately $120,500 in front-end sales commissions from the sale of Class A shares and approximately $61,100, for CDSC imposed on redemptions by shareholders.

The Acquired Fund paid brokerage commissions to Morgan Stanley & Co., Inc., an affiliate of Van Kampen, totaling $30,080 and $564,616 for the period April 1, 2010 to May 31, 2010 and the year ended March 31, 2010, respectively.

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

NOTE 3—Additional Valuation Information


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

NOTE 4—Trustees’ and Officers’ Fees and Benefits

23 Invesco Van Kampen Small Cap Growth Fund

and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

For the period ended August 31, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. For the period April 1, 2010 to May 31, 2010, the Acquired Fund recognized expenses of $6,396 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”), of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund. For the year ended March 31, 2010, the Acquired Fund recognized expenses of $26,850 representing legal services provided by Skadden.

NOTE 5—Cash Balances

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

Tax Character of Distributions to Shareholders Paid During the Period Ended August 31, 2010 and the Years Ended March 31, 2010 and March 31, 2009:

There were no ordinary income or long-term distributions during the period ended August 31, 2010 and the years ended March 31, 2010 and March 31, 2009.

Tax Components of Net Assets at Period-End:


	August 31, 2010

Undistributed ordinary income	$	-0-

Net unrealized appreciation — investments		3,519,478

Capital loss carryforward		(36,401,316	)

Shares of beneficial interest		996,863,305

Total net assets	$	963,981,467

The Fund utilized $67,017,288 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	36,401,316


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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund from April 1, 2010 to August 31, 2010 was $625,793,753 and $665,916,355, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	75,273,651

Aggregate unrealized (depreciation) of investment securities		(71,754,173	)

Net unrealized appreciation of investment securities	$	3,519,478

Cost of investments for tax purposes is $1,014,139,112.

24 Invesco Van Kampen Small Cap Growth Fund

NOTE 8—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, undistributed net investment income (loss) was increased by $4,845,550, undistributed net realized gain (loss) was decreased by $726 and shares of beneficial interest decreased by $4,844,824. This reclassification had no effect on the net assets of the Fund.

NOTE 9—Share Information


	For the five months ended						For the year ended March 31,
	August 31, 2010^(a)						2010						2009
	Shares			Value			Shares			Value			Shares			Value

Sales:
Class A		12,491,916	^(b)	$	117,534,320	^(b)		46,177,393		$	374,644,838			44,536,423		$	388,680,396

Class B		160,701			1,436,516			600,025			4,541,319			962,362			8,307,076

Class C		417,676			3,715,035			2,604,739			19,506,872			3,243,039			27,265,519

Class Y		2,430,630			23,295,049			21,184,423			175,208,673			10,009,228			88,241,549

Total Sales		15,500,923		$	145,980,920			70,566,580		$	573,901,702			58,751,052		$	512,494,540

Repurchases:^(c)
Class A		(11,170,029	)	$	(103,884,733	)		(26,403,632	)	$	(221,138,510	)		(17,778,305	)	$	(150,526,244	)

Class B		(375,529	)^(b)		(3,330,797	)^(b)		(1,417,790	)		(10,894,866	)		(2,034,594	)		(16,191,623	)

Class C		(775,941	)		(6,746,780	)		(1,630,764	)		(12,662,550	)		(1,659,017	)		(12,996,548	)

Class Y		(7,352,354	)		(69,486,105	)		(6,790,411	)		(57,773,753	)		(4,855,719	)		(40,302,357	)

Total Repurchases		(19,673,853	)	$	(183,448,415	)		(36,242,597	)	$	(302,469,679	)		(26,327,635	)	$	(220,016,772	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 30% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
^(b)		Includes automatic conversion of 225,007 Class B shares into 210,988 Class A shares at a value of $1,929,978.
^(c)		Net of redemption fees of $7,585 allocated among the classes based on relative net assets of each class for the period ended August 31, 2010.

NOTE 10—Change in Independent Registered Public Accounting Firm

25 Invesco Van Kampen Small Cap Growth Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Van Kampen Small Cap Growth Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Small Cap Growth Fund (formerly known as Van Kampen Small Cap Growth Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended March 31, 2010 and prior were audited by other independent auditors whose report dated May 18, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

26 Invesco Van Kampen Small Cap Growth Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio³
A	$	1,000.00	$	975.45		6.62	$	1,018.50		6.77		1.33	%

B		1,000.00		972.65		8.05		1,017.04		8.24		1.62	%

C		1,000.00		971.22		10.28		1,014.77		10.51		2.08	%

Y		1,000.00		975.72		5.33		1,019.81		5.45		1.08	%


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.
³	The expense ratios reflect an expense waiver. The Class B expense ratio reflects actual 12b-1 fees of less than 1%.

27 Invesco Van Kampen Small Cap Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen Small Cap Growth Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

28 Invesco Van Kampen Small Cap Growth Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information

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

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco



2		Invesco California Tax-Free Income Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees



3		Invesco California Tax-Free Income Fund

Management’s Discussion of Fund Performance

Performance summary

All share classes of Invesco California Tax-Free Income Fund at net asset value (NAV) posted positive returns during the eight-month reporting period ended August 31, 2010. The Fund’s Class A shares at net asset value (NAV) underperformed the Fund’s broad market and style-specific benchmark, the Barclays Capital California Municipal Index, and slightly underperformed the Fund’s peer group index, the Lipper California Municipal Debt Funds Index. The Fund’s underweight exposure to the more than 20-year maturity portion of the yield curve and an underweight position in state general obligation bonds, were the primary detractors from performance versus the Barclays Capital California Municipal Index.

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

Fund vs. Indexes


Class A Shares	8.01	%

Class B Shares	8.06

Class C Shares	7.72

Class Y Shares	8.16

Barclays Capital California Municipal Index^▼ (Broad Market/Style-Specific Index)	8.75

Lipper CA Municipal Debt Funds Index^■ (Peer Group Index)	8.11


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

How we invest

The Fund will normally invest at least 80% of its assets in securities that pay interest exempt from federal and California state income taxes. We generally invest the Fund’s assets in investment grade California municipal obligations. These municipal obligations will have the following ratings at the time of purchase:

Municipal bonds–within the four highest grades by Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s Ratings Group (S&P) or Fitch Ratings (Fitch)

n		Municipal notes–within the two highest grades or, if not rated, have outstanding bonds within the four highest grades by Moody’s, S&P or Fitch

n		Municipal commercial paper–within the highest grade by Moody’s, S&P or Fitch

We may also invest in unrated securities, which we judge to be of comparable quality to the securities described above. Additionally, we may invest up to 5% of the Fund’s net assets in municipal obligations rated below investment grade (commonly known as junk bonds) or, if unrated, of comparable quality as we determine.

We buy and sell California municipal securities with a view toward seeking a high level of current income exempt from federal and California income taxes or other local income taxes. In selecting securities for purchase and sale, we use our research capabilities to identify and monitor investment opportunities. In conducting research and analysis, we consider a number of factors, including general market and economic conditions and credit and interest rate risk.

Portfolio securities are typically sold when our assessments of any of these factors materially change. Measures of interest rate risk that we evaluate include duration, coupon, maturity and call protection. Measures of credit risk evaluated include individual issuer analysis, sector weightings, geographic distribution and quality spreads.

Market conditions and your Fund

Market conditions during the eight-month reporting period were influenced by two broad themes: private sector recovery and concerns over sovereign creditworthiness. In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This has helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. Recently, however, investor skepticism of global governments’ abilities to retire huge amounts of debt

Portfolio Composition^†

By credit quality, based on total investments


AAA	31.9	%

AA	5.5

AA-	6.1

A+	6.1

A	13.6

A-	3.1

BBB+	1.6

BBB	4.2

BBB-	6.0

BB-	0.5

N/A	10.8

NR	11.4

Cash	(0.8	)

Top 10 Fixed Income Issuers*


1.	Long Beach Bond Finance Authority	6.8	%

2.	California State Department of Water Resources	4.1

3.	Los Angeles Department of Water & Power	3.9

4.	City of San Jose	3.1

5.	University of California	2.7

6.	City & County of San Francisco	2.6

7.	County of Madera	2.5

8.	Antelope Valley Healthcare District	2.2

9.	City of Los Angeles	1.7

10.	State of California	1.7


Total Net Assets		$325.3 million

Total Number of Holdings*		130

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


*		Excluding cash equivalent holdings.


†		Source: Standard and Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non-Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard and Poor’s rating methodology, please visit www.standardandpoors.com and select ‘Understanding Ratings’ under Rating Resources on the homepage.



4		Invesco California Tax-Free Income Fund

without affecting economic growth rates caused sovereign debt distress (especially for Greece and other southern euro zone countries) and became a focal point of investor concern in the first half of 2010.

In the U.S., economic recovery was present, although uneven and possibly slowing, as stubbornly high unemployment continued to weigh on the economy.¹ Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 1.7% in the second quarter of 2010. In the first quarter, real GDP increased 3.7%.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² The Fed recently described its view of the U.S. economy: “Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.”² Consequently, it was widely expected that the Fed would continue to keep rates low for an extended period.

Sector performance was driven by quality spread tightening, largely a result of continued flows into the municipal market combined with less tax-exempt issuance. As a result, BBB-rated and lower credit quality sectors outperformed. Fund flows have continued to remain strong after an exceptional 2009. In addition, new issuance during the reporting period was about 1.5% ahead of last year’s pace, at $261.0 billion versus 257.3 billion.³ However, approximately 30% of supply since the beginning of the year was in the form of taxable Build American Bonds.³

While many states are currently facing budgetary challenges, California has perhaps received more press than most. The state still benefits from its large and diverse economic base and above-average wealth levels. However, its large exposure to the housing crisis, falling tax revenues and recent budgetary shortfalls pose considerable challenges. Although the rating agencies have downgraded the state’s credit rating and the market has reacted accordingly, the negative impact has been tempered somewhat by the increasing issuance of taxable Build America Bonds and the continued decrease in supply of tax-exempt debt.

On the whole, the Fund generated positive absolute returns for the period. In terms of yield curve positioning, an overweight in 12- to 20-year bonds contributed to returns, while an underweight in the 20-plus year end of the curve detracted from returns on a

relative basis versus the Barclays Capital California Municipal Index.

As discussed earlier, during the reporting period, lower rated tax-exempt bonds experienced significant price increases relative to higher quality issues. An overweight exposure to BBB and non-rated bonds was a positive contributor to relative and absolute Fund returns.

At the sector level, the Fund’s underweight position in the tax-supported sector, specifically state general obligation bonds, and, to a lesser extent, the dedicated tax sector, was the primary detractor on a relative basis. At the industry level, we were overweight in hospital revenue bonds, which contributed to positive relative returns. However, we continued to monitor the health care sector in light of recent health care reform, and we continued to diversify out of the sector by selling weaker issuers on analyst recommendations, including swapping deep discount hospital bonds for new issue higher coupon bonds and university revenue bonds.

Our overweight exposure to tobacco over the reporting period also contributed to relative performance. However, due to the gradual decline in credit fundamentals, we reduced our exposure to the tobacco industry. In addition, our overweight exposure to toll roads contributed to relative performance.

We use inverse floating rate issues in Invesco California Tax-Free Income Fund to help manage duration, yield curve exposure and credit exposure and to potentially enhance yield. Over the reporting period, the exposure to inverse floating rate issues within the Fund contributed positively to Fund return.

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

1 Bureau of Economic Analysis
2 U.S. Federal Reserve
3 Barclays Capital

See important Fund and index disclosures later in this report.

Thomas Byron

Portfolio manager, is manager of Invesco California Tax-Free Income Fund. Mr. Byron joined Invesco in 2010. He earned a B.S. in finance from Marquette University and an M.B.A. in finance from DePaul University.

Robert Stryker

Chartered Financial Analyst, portfolio manager, is manager of Invesco California Tax-Free Income Fund. Mr. Stryker joined Invesco in 2010. He earned a B.S. in finance from the University of Illinois, Chicago.

Robert Wimmel

Portfolio manager, is manager of Invesco California Tax-Free Income Fund. Mr. Wimmel joined Invesco in 2010. Mr. Wimmel earned a B.A. in anthropology from the University of Cincinnati and an M.A. in economics from the University of Illinois, Chicago.



5		Invesco California Tax-Free Income Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable
sales charges


Class A Shares

Inception (7/28/97)			4.07	%

	10	Years	4.08

	5	Years	2.65

	1	Year	6.64


Class B Shares

Inception (7/11/84)			6.47	%

	10	Years	4.59

	5	Years	3.38

	1	Year	6.92


Class C Shares

Inception (7/28/97)			3.96	%

	10	Years	4.04

	5	Years	3.14

	1	Year	10.38


Class Y Shares

Inception (7/28/97)			4.72	%

	10	Years	4.82

	5	Years	3.91

	1	Year	12.23

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco California Tax-Free Income Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco California Tax-Free Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee comparable future

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (7/28/97)			3.80	%

	10	Years	3.98

	5	Years	1.90

	1	Year	6.44


Class B Shares

Inception (7/11/84)			6.34	%

	10	Years	4.48

	5	Years	2.65

	1	Year	6.71


Class C Shares

Inception (7/28/97)			3.68	%

	10	Years	3.93

	5	Years	2.38

	1	Year	10.15


Class Y Shares

Inception (7/28/97)			4.44	%

	10	Years	4.71

	5	Years	3.16

	1	Year	11.90

results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.85%, 0.84%, 1.35% and 0.60%, respectively.¹ The total annual Fund operating

expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.87%, 0.86%, 1.37% and 0.62%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y 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.


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.



7		Invesco California Tax-Free Income Fund

Invesco California Tax-Free Income Fund’s investment objective is to provide a high level of current income exempt from federal and California income tax, consistent with the preservation of capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		The Fund may invest up to 20% of its total assets in securities subject to the federal alternative minimum tax.

n		Credit risk refers to the possibility that the issuer of a security will be unable or unwilling to make interest payments and/or repay the principal on its debt. In the case of revenue bonds, notes or commercial paper, for example, the credit risk is the possibility that the user fees from a project or other specified revenue sources are insufficient to meet interest and/or principal payment obligations. Private activity bonds used to finance projects, such as industrial development and pollution control, may also be negatively impacted by the general credit of the user of the project.

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

n		The inverse floating rate municipal obligations in which the Fund may invest include derivative instruments such as residual interest bonds (RIBs) or tender option bonds (TOBs). Such instruments are typically created by a special purpose trust that holds long-term fixed rate bonds and sells two classes of beneficial interests: short-term floating rate interests,

		which are sold to third-party investors, and inverse floating residual interests, which are purchased by the Fund. Their short-term floating rate interests have first priority on the cash flow from the bond held by the special purpose trust and the Fund is paid the residual cash flow from the bond held by the special purpose trust.

n		Leases and installment purchase or conditional sale contract (which may provide for title to be leased asset to pass eventually to the issuer) have developed as a means for governmental issuers to acquire property and equipment without the necessity of complying with the constitutional and statutory requirements generally applicable for the issuance of debt. Certain lease obligations contain non-appropriation for the issuance of debt. Certain lease obligations contain non-appropriation clauses that provide that the governmental issuer has no obligation to make future payments under the lease or contract unless money is appropriated for that purpose by the appropriate legislative body on an annual or other periodic basis. Consequently, continued lease payments on those lease obligations containing non-appropriation clauses are dependent on future legislative actions. If these legislative actions do not occur, the holders of the lease obligation may experience difficulty in exercising their rights, including deposition of the property.

n		The issuers of private activity bonds in which the Fund may invest may be negatively impacted by conditions affecting either the general credit of the user of the private activity project or the project itself. Conditions such as regulatory and environmental restrictions and economic downturns may lower the need for these facilities and the ability of the uses of the project to pay for the facilities. This could cause a decline in the Fund’s value.

About indexes used in this report

n		The Barclays Capital California Municipal Index is an index of California investment grade municipal bonds.

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

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

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

Other information

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

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		CLFAX
Class B Shares		CLFBX
Class C Shares		CLFCX
Class Y Shares		CLFDX

Invesco California Tax-Free Income Fund

Schedule of Investments

August 31, 2010


						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value

Municipal Obligations–(103.4%)
California–(98.9%)
Adelanto Public Utility Authority, Ser 2009 A		6.75	%		07/01/39	$	1,500	$	1,581,885

Alameda County Joint Powers Authority, Ser 2008 A (AGM)^(a)		5.00	%		12/01/25		750		813,450

Alameda County Joint Powers Authority, Ser 2008 A (AGM)^(a)		5.00	%		12/01/26		1,325		1,424,865

Alvord Unified School District, Ser 2008 A (AGM)^(a)		5.00	%		08/01/28		1,590		1,714,274

Anaheim Public Financing Authority, Ser 1997 C (AGM)^(a)		6.00	%		09/01/16		4,000		4,585,880

Antelope Valley Healthcare District, Refg Ser 1997 A (AGM)^(a)		5.20	%		01/01/20		7,000		7,006,440

Bay Area Toll Authority, San Francisco Bay Area Ser 2009 F-1^(b)		5.25	%		04/01/26		4,685		5,417,875

Bay Area Toll Authority, San Francisco Bay Area Ser 2009 F-1^(b)		5.25	%		04/01/29		5,205		5,914,389

Bay Area Toll Authority, San Francisco Bay Area Toll Bridge Ser 2008 F-1		5.00	%		04/01/39		2,500		2,674,725

Beverly Hills Unified School District, Election of 2008 Ser 2009^(c)		0.00	%		08/01/26		1,465		727,109

Beverly Hills Unified School District, Election of 2008 Ser 2009^(c)		0.00	%		08/01/32		3,045		1,031,646

California County Tobacco Securitization Agency, Los Angeles County Securitization Corp. Ser 2006^(d)		0.00	%		06/01/28		5,000		4,064,650

California Educational Facilities Authority, California College of the Arts Ser 2005		5.00	%		06/01/35		2,000		1,807,960

California Educational Facilities Authority, Pitzer College Ser 2005 A		5.00	%		04/01/35		2,000		2,007,640

California Educational Facilities Authority, Pitzer College Ser 2009		6.00	%		04/01/40		2,000		2,230,540

California Educational Facilities Authority, University of San Diego Ser 1998 (AMBAC)^(a)		5.00	%		10/01/22		5,000		5,006,000

California Health Facilities Financing Authority, Cedars-Sinai Medical Center Ser 2005		5.00	%		11/15/27		2,000		2,051,420

California Health Facilities Financing Authority, Childrens Hospital, Ser 2010 A (AGM)^(a)		5.25	%		07/01/38		1,250		1,291,125

California Health Facilities Financing Authority, Kaiser Permanente Ser 2006 A		5.25	%		04/01/39		2,000		2,030,820

California Health Facilities Financing Authority, Scripps Memorial Hospital Ser 2010 A		5.00	%		11/15/36		3,500		3,585,365

California Infrastructure & Economic Development Bank, California Science Center Phase II Ser 2006 C (NATL-RE & FGIC)^(a)		5.00	%		05/01/31		2,000		1,960,720

California Infrastructure & Economic Development Bank, Kaiser Hospital Assistance Ser 2001 A		5.55	%		08/01/31		5,000		5,114,350

California Municipal Finance Authority, American Heritage Educational Foundation Ser 2006 A		5.25	%		06/01/26		1,000		974,820

California Municipal Finance Authority, Community Hospitals Central California (COPs)		5.00	%		02/01/20		2,055		2,113,937

California Municipal Finance Authority, Eisenhower Med Ctr Ser 2010 A		5.50	%		07/01/30		500		511,780

California Municipal Finance Authority, Eisenhower Med Ctr Ser 2010 A		5.75	%		07/01/40		1,500		1,538,370

California Pollution Control Financing Authority, Solid Waste Disposal Ser 2002 A (AMT)		5.00	%		01/01/22		2,000		2,045,440

California State Department of Water Resources, Ser 2003 Y (NATL-RE & FGIC)^(a)		5.00	%		12/01/25		12,730		13,425,949

California State Public Works Board, Department of Corrections Refg Ser 1993 A (AMBAC)^(a)		5.00	%		12/01/19		2,000		2,112,980

California State Public Works Board, Department of Mental Health Coaling Ser 2004 A		5.00	%		06/01/25		515		522,251

California State University, Systemwide Ser 2008 A (AGM)^(a)		5.00	%		11/01/39		3,000		3,130,770

California Statewide Communities Development Authority, Adventist Health Ser 2005 A		5.00	%		03/01/30		5,000		5,058,200

California Statewide Communities Development Authority, American Baptist Homes West Ser 2010		6.25	%		10/01/39		1,500		1,542,780

California Statewide Communities Development Authority, Baptist University Ser 2007 A		5.40	%		11/01/27		1,785		1,629,991

California Statewide Communities Development Authority, Cedars-Sinai Medical Center Ser 1992 (COPs)		6.50	%		08/01/12		570		599,828

California Statewide Communities Development Authority, Sutter Health Ser 2005 A		5.00	%		11/15/43		1,000		1,001,700

Chino Basin Regional Financing Authority, Ser A (AMBAC)^(a)		5.00	%		11/01/33		725		755,523

City & County of San Francisco, Laguna Honda Hospital Ser 2005 I (AGM)^(a)		5.00	%		06/15/30		8,000		8,320,000

City of Alhambra, Atherton Baptist Homes Ser 2010 A		7.625	%		01/01/40		1,575		1,690,715

City of Duarte, Ser 1999 A (COPs)		5.25	%		04/01/19		3,000		3,022,320

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

9 Invesco California Tax-Free Income Fund


						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)			Value

City of Los Angeles, Ser 2004 A (NATL-RE)^(a)		5.00	%		09/01/24	$	5,000		$	5,627,200

City of Los Angeles, Wastewater Refg Ser 2003 B (AGM)^(a)		5.00	%		06/01/22		5,000			5,445,450

City of San Jose, Airport Ser 2001 (NATL-RE & FGIC)^(a)		5.00	%		03/01/25		10,000			10,067,000

City of Vernon, Ser 2009 A		5.125	%		08/01/21		2,000			2,163,700

Clovis Unified School District, Election of 2004 Ser A (NATL-RE & FGIC)^(a)(c)		0.00	%		08/01/29		735			266,283

Corona-Norco Unified School District, Election of 2006 Ser 2009 B (AGC)^(a)(c)		0.00	%		08/01/28		360			136,660

Corona-Norco Unified School District, Election of 2006 Ser B (AGC)^(a)(c)		0.00	%		08/01/24		1,000			502,530

Corona-Norco Unified School District, Election of 2006 Ser B (AGC)^(a)(c)		0.00	%		08/01/25		1,000			470,420

Corona-Norco Unified School District, Election of 2006 Ser B (AGC)^(a)(c)		0.00	%		08/01/26		1,525			666,349

Corona-Norco Unified School District, Election of 2006 Ser B (AGC)^(a)(c)		0.00	%		08/01/27		1,500			611,025

County of Madera, Valley Children’s Hospital Ser 1995 (COPs) (NATL-RE)^(a)		6.50	%		03/15/15		7,500			8,136,675

County of Sacramento, Airport Systems Ser 2010		5.00	%		07/01/40		2,200			2,265,340

County of San Diego, Burnham Institute for Medical Research Ser 2006 (COP)		5.00	%		09/01/34		2,000			1,823,000

Eden Township Healthcare District, Ser 2010 (COPs)		6.125	%		06/01/34		1,000			1,027,580

El Segundo Unified School District, Election of 2008 Ser 2009 A^(c)		0.00	%		08/01/33		4,430			1,194,993

Fontana Public Financing Authority, Tax Allocation Ser 2003 A (AMBAC)^(a)		5.375	%		09/01/25		1,500			1,520,400

Fontana Unified School District, Ser 2008 B (AGM)^(a)(c)		0.00	%		02/01/33		9,445			2,554,022

Foothill/Eastern Transportation Corridor Agency, Toll Road Ser 1999^(c)		0.00	%		01/15/23		5,000			5,134,950

Foothill/Eastern Transportation Corridor Agency, Toll Road Ser 1999 (NATL-RE)^(a)		5.125	%		01/15/19		4,000			4,005,120

Gilroy Unified School District, Election of 2008 Ser 2009 A (AGC)^(a)(c)		0.00	%		08/01/29		5,350			1,892,402

Gilroy Unified School District, Election of 2008 Ser 2009 A (AGC)^(a)(c)		0.00	%		08/01/31		3,650			1,099,380

Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2005 A		5.00	%		06/01/45		2,500			2,415,900

Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2007 A-1		5.125	%		06/01/47		4,000			2,706,680

Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2007 A-1		5.75	%		06/01/47		4,425			3,314,635

Grossmont Union High School District, Ser 2006 (NATL-RE)^(a)(c)		0.00	%		08/01/24		6,750			3,443,175

Huntington Beach Union High School District, Ser 2004 (AGM)^(a)		5.00	%		08/01/27		1,750			1,895,757

Independent Cities Lease Finance Authority, San Juan Mobile Estates Ser 2006 A		5.125	%		05/15/41		2,000			1,768,340

Indio Redevelopment Agency, Tax Allocation Ser 2008 A		5.25			08/15/27		780	%		800,116

Indio Redevelopment Agency, Tax Allocation Ser 2008 A		5.25	%		08/15/28		470			479,015

Irvine Unified School District, Community Facilities District		6.70	%		09/01/35		1,000			1,055,150

Kern County Water Agency Improvement District No. 4, Ser 2008 A (COP) (AGC)^(a)		5.00	%		05/01/28		1,700			1,809,463

Long Beach Bond Finance Authority, Ser 1992 (AMBAC)^(a)		6.00	%		11/01/17		20,000			22,229,000

Los Angeles Department of Airports, Los Angeles International Airport Ser A		5.00	%		05/15/35		1,500			1,577,640

Los Angeles Department of Water & Power, Ser 2001 A		5.125	%		07/01/41		3,000			3,022,740

Los Angeles Department of Water & Power, Ser 2001 A-1 (AGM)^(a)(e)		5.25	%		07/01/11		935			974,738

Los Angeles Department of Water & Power, Ser 2001 A-1 (AGM)^(a)		5.25	%		07/01/22		12,365			12,804,081

Los Angeles Department of Water & Power, Ser 2008 A-1		5.25	%		07/01/38		2,000			2,182,740

Menifee Union School District, 2008 Election Ser C (AGC)^(a)(c)		0.00	%		08/01/35		940			217,572

Menifee Union School District, Election of 2008 Ser C (AGC)^(a)(c)		0.00	%		08/01/37		1,050			211,082

Metropolitan Water District of Southern California, Ser B^(b)		5.00	%		07/01/27		8,585			9,811,711

Moorpark Unified School District, Election of 2008 Ser 2009 A (AGC)^(a)(c)		0.00	%		08/01/31		840			253,008

Oakland Joint Powers Financing Authority, Oakland Administration Buildings Refg 2008 B (AGC)^(a)		5.00	%		08/01/26		1,215			1,302,674

Oakland Joint Powers Financing Authority, Oakland Administration Buildings Ser 2008 B (AGC)^(a)		5.00	%		08/01/25		850			919,751

Palomar Pomerado Health, Ser 2009 (COPs)		6.75	%		11/01/39		2,000			2,232,860

Patterson Joint Unified School District, 2008 Election Ser 2009 B (AGM)^(a)(c)		0.00	%		08/01/47		1,700			167,076

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

10 Invesco California Tax-Free Income Fund


						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value

Patterson Joint Unified School District, 2008 Election Ser B (AGM)^(a)(c)		0.00	%		08/01/44	$	6,250	$	747,563

Patterson Joint Unified School District, 2008 Election Ser B (AGM)^(a)(c)		0.00	%		08/01/45		6,715		754,430

Patterson Joint Unified School District, 2008 Election Ser B (AGM)^(a)(c)		0.00	%		08/01/46		7,050		741,660

Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC)^(a)e)		5.00	%		11/01/12		110		120,924

Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC)^(a)		5.00	%		11/01/21		890		907,337

Poway Unified School District, School Facilities Improvement District No. 07-1, 2008 Election Ser A^(c)		0.00	%		08/01/32		6,460		1,813,968

Poway Unified School District, Ser 2007 (AMBAC)^(a)		4.625	%		09/15/42		2,530		2,276,266

Roseville Joint Union High School District, Election of 2004 Ser 2007 C (AGM)^(a)(c)		0.00	%		08/01/24		2,515		1,363,859

Roseville Joint Union High School District, Election of 2004 Ser 2007 C (AGM)^(a)(c)		0.00	%		08/01/25		1,970		972,057

Roseville Joint Union High School District, Election of 2004 Ser 2007 C (AGM)^(a)(c)		0.00	%		08/01/26		1,350		621,743

Sacramento County Sanitation Districts Financing Authority, Ser D^(f)(g)		0.23	%		12/01/39		2,500		2,500,000

San Francisco City & County Airports Commission, San Francisco Int’l Airport Second Ser 2001 Refg Issue 27B (NATL-RE & FGIC)^(a)		5.125	%		05/01/26		5,000		5,048,200

San Joaquin Hills Transportation Corridor Agency, Toll Road Refg Ser 1997 A (NATL-RE)^(a)(c)		0.00	%		01/15/15		6,000		4,649,160

San Joaquin Hills Transportation Corridor Agency, Toll Road Senior Lien Ser 1993		5.00	%		01/01/33		2,000		1,651,340

Santa Monica Community College District, 2002 Election, Ser 2007 A (NATL-RE & FGIC)^(a)(c)		0.00	%		08/01/22		1,385		855,695

Santa Monica Community College District, 2002 Election, Ser 2007 A (NATL-RE & FGIC)^(a)(c)		0.00	%		08/01/23		1,385		807,372

Santa Monica Community College District, 2002 Election, Ser 2007 A (NATL-RE & FGIC)^(a)(c)		0.00	%		08/01/24		1,385		740,920

Santa Monica Community College District, 2002 Election, Ser 2007 A (NATL-RE & FGIC)^(a)(c)		0.00	%		08/01/25		1,380		691,132

School Facilities Financing Authority, Grant Joint Union High School District Ser 2008 A (AGM)^(a)(c)		0.00	%		08/01/30		1,745		553,409

School Facilities Financing Authority, Grant Joint Union High School District Ser 2008 A (AGM)^(a)(c)		0.00	%		08/01/31		2,040		601,351

School Facilities Financing Authority, Grant Joint Union High School District Ser 2008 A (AGM)^(a)(c)		0.00	%		08/01/32		6,395		1,748,201

Simi Valley Unified School District, Election of 2004 Ser 2007 C (AGM)^(a)(c)		0.00	%		08/01/28		3,480		1,312,517

Simi Valley Unified School District, Election of 2004 Ser 2007 C (AGM)^(a)(c)		0.00	%		08/01/30		2,765		875,869

Southern California Public Power Authority, Mead-Adelanto 1994 Ser A (AMBAC)^(a)(h)		8.565	%		07/01/15		3,500		4,638,830

Southern California Public Power Authority, Mead-Phoenix 1994 Ser A (AMBAC)^(a)(h)		8.565	%		07/01/15		2,500		3,313,450

Southern California Public Power Authority, Ser A^(f)(g)		0.24	%		07/01/20		1,400		1,400,000

Southern California Public Power Authority, Windy Flats Project Ser 2010-1		5.00	%		07/01/30		1,500		1,652,295

State of California, Various Purpose Dtd 04/01/09		5.75	%		04/01/31		5,000		5,536,400

Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corp. Ser 2005 A-1		5.50	%		06/01/45		2,150		1,529,360

Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corp. Ser 2006 A-1		5.00	%		06/01/37		3,000		2,326,200

Tustin Unified School District, No. 2002-1 Election of 2002 Ser 2008 C (AGM)^(a)		5.00	%		06/01/28		1,750		1,898,907

Twin Rivers Unified School District, Ser 2009 (BANs)^(c)		0.00	%		04/01/14		1,700		1,556,571

University of California, Ser 2007 J (AGM)^(a)		4.50	%		05/15/31		8,500		8,703,575

University of California, Ser 2009 E		5.50	%		05/15/27		2,500		2,755,500

University of California, Ser 2009 Q^(b)(i)		5.00	%		05/15/34		920		994,465

Walnut Energy Center Authority, Ser 2010 A		5.00	%		01/01/35		2,000		2,095,600

Yosemite Community College District, Election of 2004 Ser 2008 C (AGM)^(a)(c)		0.00	%		08/01/24		4,685		2,540,629

									321,542,620

Guam–(0.2%)
Territory of Guam Section 30, Ser A		5.625	%		12/01/29		660		701,752

Puerto Rico–(3.2%)
Puerto Rico Electric Power Authority, Ser 2007 TT		5.00	%		07/01/37		2,000		2,049,860

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

11 Invesco California Tax-Free Income Fund


						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value

Puerto Rico–(continued)

Puerto Rico Public Buildings Authority, Ser 2002 D (AMBAC)^(a)(d)(e)		0.00	%		07/01/17	$	3,680	$	4,055,691

Puerto Rico Public Buildings Authority, Ser 2002 D (AMBAC)^(a)(d)(e)		0.00	%		07/01/31		1,320		1,143,965

Puerto Rico Sales Tax Financing Corp., Ser 2009 A^(e)		5.00	%		08/01/11		1,685		1,758,634

Puerto Rico Sales Tax Financing Corp., Ser 2010 C		5.00	%		08/01/35		1,500		1,556,970

									10,565,120

Virgin Islands–(1.1%)
Virgin Islands Public Finance Authority, Matching Fund Loan Diago A		6.625	%		10/01/29		1,675		1,899,014

Virgin Islands Public Finance Authority, Ser 2010 A		5.00	%		10/01/25		1,600		1,688,112

									3,587,126

TOTAL INVESTMENTS–103.4% (Cost $321,163,631)									336,396,618

OTHER ASSETS LESS LIABILITIES–0.6%									1,819,703

Floating Rate Note and Dealer Trusts Obligations Related to Securities Held–(4.0%)
Notes with interest rates of 0.27% to 0.31% at 08/31/10 and contractual maturities of collateral ranging from 05/01/28 to 06/15/38 (See Note 11)^(j)									(12,930,000	)

NET ASSETS–100.0%								$	325,286,321

Investment Abbreviations:


AGC		– Assured Guaranty Corp.
AGM		– Assured Guaranty Municipal Corp.
AMBAC		– AMBAC Assurance Corp.
AMT		– Alternative Minimum Tax
BANs		– Bond Anticipation Notes
COP		– Certificates of Participation
FGIC		– Financial Guaranty Insurance Co.
NATL-RE		– National Public Finance Guarantee Corp.

Notes to Schedule of Investments:


^(a)		Principal and/or interest payments are secured by the bond insurance company listed.
^(b)		Underlying security related to inverse floater entered into by the Fund (See Note 1I).
^(c)		Capital appreciation bond.
^(d)		Security is a “step-up” bond where the coupon increases on a predetermined future date.
^(e)		Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
^(f)		Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2010.
^(g)		Security is considered a cash equivalent.
^(h)		Current coupon rate for an inverse floating rate municipal obligation. This rate resets periodically as the auction rate on the related security changes. Position in an inverse floating rate municipal obligation has a total value of $7,952,280 which represents 2.4% of net assets.
⁽ⁱ⁾		Security is subject to a shortfall agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $615,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
^(j)		Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at August 31, 2010. At August 31, 2010, the Fund’s investments with a value of $22,138,439 are held by the Dealer Trusts and serve as collateral for the $12,930,000 in floating rate note and dealer trust obligations outstanding at that date.

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

12 Invesco California Tax-Free Income Fund

Statements of Changes in Net Assets

For the eight months ended August 31, 2010 and the years ended December 31, 2009 and December 31, 2008


	Eight months ended			Year ended			Year ended
	August 31,			December 31,			December 31,
	2010			2009			2008

Operations:
Net investment income	$	10,514,315		$	15,794,946		$	17,524,287

Net realized gain (loss)		(2,623,315	)		(2,671,016	)		(1,951,662	)

Change in net unrealized appreciation (depreciation)		17,229,887			33,565,363			(52,662,162	)

Net increase (decrease) in net assets resulting from operations		25,120,887			46,689,293			(37,089,537	)

Distributions to shareholders from net investment income:
Class A shares		(1,378,626	)		(1,074,299	)		(1,061,145	)

Class B shares		(7,178,057	)		(12,491,580	)		(13,803,126	)

Class C shares		(463,014	)		(718,214	)		(803,091	)

Class Y shares		(851,291	)		(1,394,249	)		(1,989,266	)

Total dividends from net investment income		(9,870,988	)		(15,678,342	)		(17,656,628	)

Distributions to shareholders from net realized gains:
Class A shares		—			—			(93,086	)

Class B shares		—			—			(1,104,557	)

Class C shares		—			—			(71,031	)

Class Y shares		—			—			(127,822	)

Total distributions from net realized gains		—			—			(1,396,496	)

Net increase (decrease) from in net assets resulting from share transactions		(25,243,879	)		(31,392,896	)		(49,269,967	)

Net increase (decrease) in net assets		(9,993,980	)		(381,945	)		(105,412,628	)

Net assets:
Beginning of period		335,280,301			335,662,246			441,074,874

End of period (Includes undistributed net investment income of $1,183,458, $364,824 and $248,271, respectively)	$	325,286,321		$	335,280,301		$	335,662,246

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from December 31 to August 31.

Prior to June 1, 2010, the Fund operated as Morgan Stanley California Tax-Free Income Fund (the “Acquired Fund”). The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

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

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

The Fund’s investment objective is to provide as high a level of current income exempt from federal and California income tax, as is consistent with the preservation of capital.

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

15 Invesco California Tax-Free Income Fund


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices and may reflect appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
		Securities for which market quotations either are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C.		Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

16 Invesco California Tax-Free Income Fund


I.		Floating Rate Obligations Related to Securities Held — The Fund enters into transactions in which it transfers to Special Purpose Trusts established by a Broker Dealer (“Dealer Trusts”) fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The Fund may enter into shortfall agreements with the Dealer Trusts which commit the Fund to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption “Floating rate note and dealer trust obligations” on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption “Interest” and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts under the caption “Interest and residual trust expenses” on the Statement of Operations. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The average floating rate notes outstanding and average annual interest and fee rate related to residual interests during the period ended August 31, 2010 were $12,930,000 and 0.63%, respectively.
J.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
K.		Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
		Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
		There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0	.47%

Next $250 million		0	.445%

Next $250 million		0	.42%

Next $250 million		0	.395%

Over $1.25 billion		0	.37%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $638,425 to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

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

17 Invesco California Tax-Free Income Fund

following expenses are not taken into account, and could cause the net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and the Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

Prior to the Reorganization, MSIA and Morgan Stanley Services Company Inc. (“MSSC”) had voluntarily agreed to cap the Acquired Fund’s operating expenses at 0.60% of the average daily net assets of the Acquired Fund.

Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

For period January 1, 2010 to August 31, 2010, the Adviser and MSIA waived advisory fees of $0 and $68,548, respectively. For the year ended December 31, 2009, MSIA waived advisory fees of $190,391.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, the Acquired Fund paid an administration fee of $108,668 to MSSC. For the period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

Also, the Trust has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian, fund accountant and provides certain administrative services to the Fund.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Prior to the Reorganization, the Acquired Fund paid $36,671 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”), an affiliate of the Adviser. The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates; (1) Class A — up to 0.25% of the average daily net assets of Class A shares; (2) Class B — up to 1.00% of the average daily net assets of Class B shares and (3) Class C — up to 1.00% of the average daily net assets of Class C shares.

In the case of Class B shares, provided that the Plan continues in effect, any cumulative expenses incurred by IDI, but not yet reimbursed to IDI may be recovered through the payment of future distribution fees from the Fund pursuant to the Plan and contingent deferred sales charges paid by investors upon redemption of Class B shares.

For the period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $481 in front-end sales commissions from the sale of Class A shares and $0, $8,094 and $0 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period January 1 to May 31, 2010, MSDI retained $275 in front-end sales commissions from the sale of Class A shares and $1,137, $13,546 and $0 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the year ended December 31, 2009, MSDI retained $16,072 in front-end sales commissions from the sale of Class A shares and $137, $30,684 and $77 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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

18 Invesco California Tax-Free Income Fund


		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.


	Level 1		Level 2		Level 3		Total

Municipal Obligations	$	—	$	336,396,618	$	—	$	336,396,618

NOTE 4—Derivative Investments

Effect of Derivative Instruments for the eight months ended August 31, 2010 and the year ended December 31, 2009, respectively.

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


	Location of Gain (Loss) on
	Statement of Operations
	Eight months ended			Year ended
	August 31, 2010			December 31, 2009
	Futures			Futures

Realized Gain
Interest rate risk	$	472,396		$	976,900

Change in Unrealized Appreciation (Depreciation)
Interest rate risk		(432,227	)		842,956

Total	$	40,169		$	1,819,856

NOTE 5—Trustees’ and Officers’ Fees and Benefits

NOTE 6—Cash Balances

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the eight months Ended August 31, 2010 and Years Ended December 31, 2009 and 2008:


	August 31,		December 31,		December 31,
	2010		2009		2008

Tax-exempt income	$	9,724,416	$	15,678,323	$	17,608,980

Ordinary income		146,572		19		47,648

Long-term capital gain		—		—		1,396,496

Total distributions	$	9,870,988	$	15,678,342	$	19,053,124

19 Invesco California Tax-Free Income Fund

Tax Components of Net Assets at Period-End:


	August 31,
	2010

Undistributed income	$	31,127

Net unrealized appreciation — investments		16,487,960

Temporary book/tax differences		(102,818	)

Capital loss carryforward		(8,106,244	)

Shares of beneficial interest		316,976,296

Total net assets	$	325,286,321

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

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2016		2,435,320

August 31, 2018		5,670,924

Total Capital Loss Carryforward	$	8,106,244


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the eight months ended August 31, 2010 was $49,674,849 and $78,292,155, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	20,907,988

Aggregate unrealized (depreciation) of investment securities		(4,420,028	)

Net unrealized appreciation of investment securities	$	16,487,960

Cost of investments for tax purposes is $319,908,658.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of bond premium amortizations on August 31, 2010, undistributed net investment income was increased by $175,307 and undistributed net realized gain (loss) was decreased by $175,307. This reclassification had no effect on the net assets of the Fund.

20 Invesco California Tax-Free Income Fund

NOTE 10—Share Information


	Eight months ended August 31, 2010^(a)						Year ended December 31, 2009						Year ended December 31, 2008
	Shares			Amount			Shares			Amount			Shares			Amount

Class A

Sold		16,592,673		$	188,126,111			240,802		$	2,646,138			447,693		$	5,000,255

Reinvestment of dividends and distributions		107,362			1,226,512			94,573			1,032,819			98,336			1,090,089

Redeemed		(16,660,323	)		(190,732,160	)		(389,291	)		(4,208,218	)		(400,956	)		(4,492,926	)

Net increase (decrease)		39,712			(1,379,537	)		(53,916	)		(529,261	)		145,073			1,597,418

Class B

Sold		16,273,049			187,452,860			476,617			5,223,297			369,153			4,193,781

Reinvestment of dividends and distributions		502,966			5,768,076			1,066,514			11,724,571			1,234,380			13,801,430

Redeemed		(18,818,269	)		(214,764,082	)		(3,903,492	)		(42,665,852	)		(4,579,774	)		(51,381,817	)

Net increase (decrease)		(2,042,254	)		(21,543,146	)		(2,360,361	)		(25,717,984	)		(2,976,241	)		(33,386,606	)

Class C

Sold		90,112			1,035,827			78,373			864,886			136,300			1,594,645

Reinvestment of dividends and distributions		34,647			397,150			63,528			697,878			73,788			824,051

Redeemed		(171,039	)		(1,953,476	)		(274,857	)		(3,014,877	)		(463,698	)		(5,211,440	)

Net increase (decrease)		(46,280	)		(520,499	)		(132,956	)		(1,452,113	)		(253,610	)		(2,792,744	)

Class Y

Sold		9,681			114,432			6,220			70,350			137,098			1,599,917

Reinvestment of dividends and distributions		61,690			705,418			120,543			1,320,593			177,369			1,984,420

Redeemed		(229,966	)		(2,620,547	)		(463,743	)		(5,084,481	)		(1,674,119	)		(18,272,372	)

Net increase (decrease)		(158,595	)		(1,800,697	)		(336,980	)		(3,693,538	)		(1,359,652	)		(14,688,035	)

Net increase in (decrease) in share activity		(2,207,417	)	$	(25,243,879	)		(2,884,213	)	$	(31,392,896	)		(4,444,430	)	$	(49,269,967	)


^(a)		There is an entity that is a record owners of more than 5% of the outstanding shares of the Fund and owns 84% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco and or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity are also owned beneficially.

NOTE 11—Purposes and Risks Relating to Certain Financial Instruments

21 Invesco California Tax-Free Income Fund

NOTE 12—Financial Highlights

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


	Class A
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected Per Share Data:
Net asset value, beginning of period	$	11.21		$	10.23		$	11.83		$	12.16		$	12.16		$	12.46

Income (loss) from investment operations:
Net investment income		0.37			0.51			0.49			0.50			0.49			0.52

Net realized and unrealized gain (loss)		0.52			0.97			(1.56	)		(0.31	)		0.06			(0.10	)

Total income (loss) from investment operations		0.89			1.48			(1.07	)		0.19			0.55			0.42

Less dividends and distributions from:
Net investment income		(0.35	)		(0.50	)		(0.49	)		(0.49	)		(0.49	)		(0.51	)

Net realized gain		—			—			(0.04	)		(0.03	)		(0.06	)		(0.21	)

Total dividends and distributions		(0.35	)		(0.50	)		(0.53	)		(0.52	)		(0.55	)		(0.72	)

Net asset value, end of period	$	11.75		$	11.21		$	10.23		$	11.83		$	12.16		$	12.16

Total Return^(a)		8.05	%		14.74	%		(9.28	)%		1.62	%		4.64	%		3.44	%

Net assets, end of period, (000’s omitted)	$	26,015		$	24,377		$	22,799		$	24,645		$	299,414		$	329,938

Ratios to Average Net Assets:
Total expenses
With fee waivers and/or expense reimbursements		0.88	%^(b)		0.86	%		0.86	%		1.00	%		0.86	%		0.86	%

Without fee waivers and/or expense reimbursements		0.91	%^(b)		0.92	%		0.90	%		1.04	%		0.89	%		0.87	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		0.84	%^(b)		0.85	%		0.86	%		0.84	%		0.85	%		0.86	%

Net investment income		4.88	%^(b)		4.65	%		4.33	%		4.12	%		4.06	%		4.11	%

Supplemental Data:
Portfolio turnover^(c)		15	%		19	%		10	%		5	%		5	%		23	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $41,293.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

22 Invesco California Tax-Free Income Fund

NOTE 12—Financial Highlights—(continued)


	Class B
	Eight months
	ended
	August 31			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected Per Share Data:
Net asset value, beginning of period	$	11.28		$	10.30		$	11.91		$	12.24		$	12.24		$	12.52

Income (loss) from investment operations:
Net investment income		0.37			0.51			0.50			0.50			0.52			0.54

Net realized and unrealized gain (loss)		0.53			0.98			(1.57	)		(0.30	)		0.05			(0.08	)

Total income (loss) from investment operations		0.90			1.49			(1.07	)		0.20			0.57			0.46

Less dividends and distributions from:
Net investment income		(0.35	)		(0.51	)		(0.50	)		(0.50	)		(0.51	)		(0.53	)

Net realized gain		—			—			(0.04	)		(0.03	)		(0.06	)		(0.21	)

Total dividends and distributions		(0.35	)		(0.51	)		(0.54	)		(0.53	)		(0.57	)		(0.74	)

Net asset value, end of period	$	11.83		$	11.28		$	10.30		$	11.91		$	12.24		$	12.24

Total return^(a)		8.10	%		14.68	%		(9.23	)%		1.65	%		4.81	%		3.74	%

Net assets, end of period, (000’s omitted)	$	254,907		$	266,270		$	267,308		$	344,606		$	132,162		$	159,221

Ratios to average net assets:
Total expenses
With fee waivers and/or expense reimbursements		0.88	%^(b)		0.85	%		0.85	%		0.97	%		0.69	%		0.68	%

Without fee waivers and/or expense reimbursements		0.91	%^(b)		0.94	%		0.89	%		1.01	%		0.72	%		0.69	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		0.84	%^(b)		0.84	%		0.85	%		0.81	%		0.68	%		0.68	%

Net investment income		4.88	%^(b)		4.66	%		4.34	%		4.15	%		4.23	%		4.29	%

Supplemental data:
Portfolio turnover^(c)		15	%		19	%		10	%		5	%		5	%		23	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $241,064.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

23 Invesco California Tax-Free Income Fund

NOTE 12—Financial Highlights—(continued)


	Class C
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected Per Share Data:
Net asset value, beginning of period	$	11.27		$	10.29		$	11.90		$	12.23		$	12.23		$	12.52

Income (loss) from investment operations:
Net investment income		0.34			0.46			0.44			0.44			0.43			0.45

Net realized and unrealized gain (loss)		0.52			0.97			(1.57	)		(0.30	)		0.06			(0.08	)

Total income (loss) from investment operations		0.86			1.43			(1.13	)		0.14			0.49			0.37

Less dividends and distributions from:
Net investment income		(0.31	)		(0.45	)		(0.44	)		(0.44	)		(0.43	)		(0.45	)

Net realized gain		—			—			(0.04	)		(0.03	)		(0.06	)		(0.21	)

Total dividends and distributions		(0.31	)		(0.45	)		(0.48	)		(0.47	)		(0.49	)		(0.66	)

Net asset value, end of period	$	11.82		$	11.27		$	10.29		$	11.90		$	12.23		$	12.23

Total return^(a)		7.76	%		14.11	%		(9.74	)%		1.14	%		4.12	%		2.97	%

Net assets, end of period, (000’s omitted)	$	17,528		$	17,245		$	17,105		$	22,800		$	23,320		$	26,385

Ratios to average net assets:
Total expenses
With fee waivers and/or expense reimbursements		1.38	%^(b)		1.36	%		1.36	%		1.50	%		1.36	%		1.36	%

Without fee waivers and/or expense reimbursements		1.41	%^(b)		1.42	%		1.40	%		1.54	%		1.39	%		1.37	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		1.34	%^(b)		1.35	%		1.36	%		1.34	%		1.35	%		1.36	%

Net investment income		4.38	%^(b)		4.15	%		3.83	%		3.62	%		3.56	%		3.61	%

Supplemental data:
Portfolio turnover^(c)		15	%		19	%		10	%		5	%		5	%		23	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $17,059.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

24 Invesco California Tax-Free Income Fund

NOTE 12—Financial Highlights—(continued)


	Class Y
	Eight months
	ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected Per Share Data:
Net asset value, beginning of period	$	11.25		$	10.26		$	11.86		$	12.20		$	12.20		$	12.49

Income (loss) from investment operations:
Net investment income		0.39			0.54			0.52			0.53			0.53			0.54

Net realized and unrealized gain (loss)		0.52			0.98			(1.56	)		(0.32	)		0.05			(0.08	)

Total income (loss) from investment operations		0.91			1.52			(1.04	)		0.21			0.58			0.46

Less dividends and distributions from:
Net investment income		(0.37	)		(0.53	)		(0.52	)		(0.52	)		(0.52	)		(0.54	)

Net realized gain		—			—			(0.04	)		(0.03	)		(0.06	)		(0.21	)

Total dividends and distributions		(0.37	)		(0.53	)		(0.56	)		(0.55	)		(0.58	)		(0.75	)

Net asset value, end of period	$	11.79		$	11.25		$	10.26		$	11.86		$	12.20		$	12.20

Total return^(a)		8.21	%		15.10	%		(9.02	)%		1.80	%		4.90	%		3.74	%

Net assets, end of period, (000’s omitted)	$	26,837		$	27,388		$	28,450		$	49,024		$	53,954		$	53,857

Ratios to average net assets:
Total expenses
With fee waivers and/or expense reimbursements		0.63	%^(b)		0.61	%		0.61	%		0.76	%		0.61	%		0.61	%

Without fee waivers and/or expense reimbursements		0.66	%^(b)		0.67	%		0.65	%		0.80	%		0.64	%		0.62	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		0.59	%^(b)		0.60	%		0.61	%		0.60	%		0.60	%		0.61	%

Net investment income		5.13	%^(b)		4.90	%		4.58	%		4.36	%		4.31	%		4.36	%

Supplemental data:
Portfolio turnover^(c)		15	%		19	%		10	%		5	%		5	%		23	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $26,482.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 13—Change in Independent Registered Public Accounting Firm

25 Invesco California Tax-Free Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco California Tax-Free Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco California Tax-Free Income Fund (formerly known as Morgan Stanley California Tax-Free Income Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended December 31, 2009 and prior were audited by other independent auditors whose report dated February 25, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

26 Invesco California Tax-Free Income Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	1,063.00	$	4.37	$	1,020.97	$	4.28		0.84	%

B		1,000.00		1,062.60		4.37		1,020.97		4.28		0.84

C		1,000.00		1,060.10		6.96		1,018.45		6.82		1.34

Y		1,000.00		1,064.20		3.07		1,022.23		3.01		0.59


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

27 Invesco California Tax-Free Income Fund

Approval of Investment Advisory and Sub-Advisory Agreements
with Invesco Advisers, Inc. and its Affiliates

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco California Tax-Free Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Morgan Stanley retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed the information provided differently than another Trustee.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

28 Invesco California Tax-Free Income Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information

Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.


		MS-CTFI-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do. We direct all of our Intellectual capital and global resources toward helping investors achieve their long-term financial objectives.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco



2		Invesco Dividend Growth Securities Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees



3		Invesco Dividend Growth Securities Fund

Management’s Discussion of Fund Performance

Performance summary

Effective June 25, 2010, Meggan Walsh assumed management of Invesco Dividend Growth Securities Fund as lead portfolio manager along with Jonathan Harrington as portfolio manager and a team of equity analysts. Our team has extensive industry experience specifically with strategies that focus on dividend-paying stocks. We appreciate the opportunity to manage your Fund and look forward to a long-term partnership.

For the six months ended August 31, 2010, Invesco Dividend Growth Securities Fund underperformed its benchmark, the S&P 500 Index. While we were managing the Fund for only part of this time, our comments will encompass the entire reporting period. The Fund’s underperformance for the period was largely due to an overweight in the consumer discretionary sector relative to the index. The Fund’s holdings in the industrials and telecommunication services sectors also detracted from relative results. Holdings in the consumer staples and utilities sectors had a positive effect on the Fund.

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

Fund vs. Indexes

Cumulative total returns, 2/28/10 to 8/31/10, 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	-5.57	%

Class B Shares	-5.66

Class C Shares	-5.93

Class Y Shares	-5.44

S&P 500 Index^▼ (Broad Market Index/Style-Specific Index)	-4.02

Lipper Large-Cap Core Funds index^▼ (Peer Group Index)	-5.26


^▼		Lipper Inc.

How we invest

We seek companies that we believe have normalized earnings power greater than that implied by their current market valuation and that also return capital to shareholders through dividends and share repurchases. All stocks in the portfolio pay a dividend, and the Fund pays a quarterly dividend to shareholders. We strive to manage risk utilizing a valuation

framework, careful stock selection and a rigorous buy-and-sell discipline.

We look for dividend-paying companies with strong profitability, solid balance sheets and capital allocation policies that may support sustained or increasing dividends and share repurchases.

We perform extensive fundamental research, incorporating both financial statement analysis and an assessment of the potential reward relative to the downside risk to determine a fair valuation over our two-year investment horizon for each stock. We believe our process can provide the best combination of dividend income, price appreciation and capital preservation.

We maintain a rigorous sell discipline and consider selling or trimming a stock when it no longer meets our investment criteria, including when:

n		A stock reaches its fair valuation (target price).

n		The company’s fundamental business prospects deteriorate.

n		A more attractive investment opportunity presents itself.

Market conditions and your Fund

During the reporting period, equity markets were volatile as the market began to question the sustainability of the recovery. Fears of a double-dip recession arose as the sovereign debt crisis unfolded in the eurozone and economic Indicators remained weak domestically. In the U.S., unemployment, consumer spending and the housing market all remained subdued, adding to fears that the recovery was slowing to a sub-normal growth rate.

In this environment, eight out of 10 sectors of the S&P 500 Index declined during the period.¹ The more economically sensitive sectors such as financials, health care and energy had the lowest returns, while the traditionally defensive telecommunication services and utilities sectors had the highest returns.¹ The health care sector, which historically has been more defensive, was interestingly the worst performer during this reporting period mostly due to U.S. health care reform.¹

The largest detractor from the Fund’s absolute performance was Microsoft in the information technology (IT) sector, due to uncertain consumer and enterprise PC demand and the success of Apple’s iPad tablet computer, which is a potential threat to Microsoft’s franchise. The Fund’s exposure to the consumer discretionary sector also detracted from Fund performance, with Royal Caribbean and Best Buy among the top detractors.

Portfolio Composition

By sector


Consumer Staples	18.7	%

Financials	18.6

Consumer Discretionary	15.8

Industrials	11.6

Information Technology	7.4

Energy	6.0

Health Care	5.4

Utilities	5.3

Materials	4.8

Telecommunication Services	1.4

Money Market Funds Plus Other Assets

Less Liabilities	5.0

Top 10 Holdings*


1.	Philip Morris International, Inc.	3.2	%

2.	Kimberly-Clark Corp.	2.9

3.	American Electric Power Co., Inc.	2.1

4.	SunTrust Banks, Inc.	2.1

5.	Automatic Data Processing, Inc.	2.0

6.	United Technologies Corp.	1.9

7.	Johnson & Johnson	1.9

8.	Altria Group, Inc.	1.8

9.	Capital One Financial Corp.	1.7

10.	General Dynamics Corp.	1.7


Total Net Assets	$1.2 billion

Total Number of Holdings*		71

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

*Excluding money market fund holdings.



4		Invesco Dividend Growth Securities Fund

We eliminated our position in Royal Caribbean, but continued to hold Best Buy at the end of the period.

The Fund engaged in derivatives transactions during the reporting period. Portfolio managers wrote call options in order to generate income from the option premiums. The options generated a positive return, but they were not a significant contributor to Fund performance.

Since taking over the Fund, we added new holdings, such as General Mills and Coca-Cola, increasing our overweight exposure to the consumer staples sector. The Fund benefited from these moves as these companies delivered positive returns. Other strong contributors during the reporting period included holdings such as Lubrizol and Philip Morris. We continued to hold our Lubrizol and Philip Morris positions at the end of the period.

We also increased our exposure to the financials and industrials sectors during the reporting period, while trimming exposure to the energy, health care and IT sectors. At the end of the period, our largest sector overweights relative to the S&P 500 index were in consumer staples, consumer discretionary and financials. Our largest underweights were in IT, health care, and energy.

The past several months have indeed been challenging for the markets. Although there have been signs of a slowdown in growth, we believe this is a normal part of the economic cycle as we transition out of the recovery phase. There are a number of positives which make us more optimistic about the markets. Corporate operating leverage is strong and profitability remained high given the dramatic cost reductions taken during the market downturn. Balance sheets are flush with cash, which can be used to benefit shareholders through dividends and/or share repurchases. Dividend-paying stocks are also attractive relative to bonds as equity yields remained higher. The removal of many regulatory-related uncertainties also bodes well for equity valuations.

We believe one of our competitive advantages is a disciplined approach to evaluating stocks from a total return perspective; focusing not only on their capital appreciation potential, but also on their current dividend income and capital preservation. This approach helps create a well-diversified Fund that can serve as a cornerstone allocation within an overall portfolio.

As always, we thank you for your continued investment in Invesco Dividend Growth Securities Fund.

1 Lipper Inc.

See important Fund and index disclosures later in this report.

Meggan Walsh

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Dividend Growth Securities Fund. Ms. Walsh began her investment career in 1987 and joined Invesco in 1991. She earned a B.S. in finance from the University of Maryland and an M.B.A. from Loyola University Maryland.

Jonathan Harrington

Chartered Financial Analyst, portfolio manager, is manager of Invesco Dividend Growth Securities Fund. Mr. Harrington joined Invesco in 2001 in its corporate associate rotation program. He earned a B.A. in history and philosophy from Dartmouth College and an M.B.A. from the Kellogg Graduate School of Management at Northwestern University.



5		Invesco Dividend Growth Securities Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (7/28/97)			0.76	%

	10	Years	-0.70

	5	Years	-3.82

	1	Year	-4.76


Class B Shares

Inception (3/30/81)			9.14	%

	10	Years	-0.34

	5	Years	-2.85

	1	Year	-4.13


Class C Shares

Inception (7/28/97)			0.45	%

	10	Years	-0.87

	5	Years	-3.44

	1	Year	-0.93


Class Y Shares

Inception (7/28/97)			1.44	%

	10	Years	0.11

	5	Years	-2.47

	1	Year	1.03

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Dividend Growth Securities Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Dividend Growth Securities Fund. Share class returns will differ from the predecessor fund because of different expenses.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, and Class Y shares was 0.95%, 0.94%, 1.70% and 0.70%, respectively.¹ The

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (7/28/97)			0.72	%

	10	Years	-0.26

	5	Years	-3.51

	1	Year	5.74


Class B Shares

Inception (3/30/81)			9.18	%

	10	Years	0.08

	5	Years	-2.53

	1	Year	6.89


Class C Shares

Inception (7/28/97)			0.41	%

	10	Years	-0.44

	5	Years	-3.14

	1	Year	10.10


Class Y Shares

Inception (7/28/97)			1.41	%

	10	Years	0.56

	5	Years	-2.15

	1	Year	12.24

total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, and Class Y shares was 0.98%, 0.97%, 1.73% and 0.73%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y 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.


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.



7		Invesco Dividend Growth Securities Fund

Invesco Dividend Growth Securities Fund’s investment objective is to provide reasonable current income and long-term growth of income and capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		In general, stock and other equity security values fluctuate, and sometimes widely fluctuate, in response to activities specific to the company as well as general market, economic and political conditions. Investments in convertible securities subject the Fund to the risks associated with both fixed income securities, including credit risk and interest rate risk, and common stocks.

n		The values of convertible securities in which the Fund invests may be affected by market interest rates, the risk that the issuer may default on interest or principal payments, and the value of the underlying common stock into which these securities may be converted.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in

		losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and foreign taxation issues.

About indexes used in this report

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

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

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

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

Other information

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

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

n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		DIVAX
Class B Shares		DIVBX
Class C Shares		DIVCX
Class Y Shares		DIVDX



8		Invesco Dividend Growth Securities Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks–95.0%
Aerospace & Defense–4.8%
General Dynamics Corp.		359,482	$	20,084,259

Raytheon Co.		294,456		12,932,508

United Technologies Corp.		343,404		22,393,375

				55,410,142

Apparel Retail–1.2%
Ross Stores, Inc.		273,906		13,593,955

Apparel, Accessories & Luxury Goods–1.2%
VF Corp.		193,116		13,637,852

Asset Management & Custody Banks–2.5%
Federated Investors, Inc.–Class B^(b)		747,771		15,591,025

State Street Corp.		395,506		13,874,351

				29,465,376

Auto Parts & Equipment–1.4%
Johnson Controls, Inc.		598,120		15,868,124

Brewers–1.7%
Heineken N.V. (Netherlands)^(b)		438,016		19,565,480

Building Products–1.5%
Masco Corp.		1,659,516		17,408,323

Casinos & Gaming–1.3%
International Game Technology		1,065,020		15,549,292

Communications Equipment–1.4%
Corning, Inc.		1,039,790		16,303,907

Computer & Electronics Retail–1.3%
Best Buy Co., Inc.		494,961		15,536,826

Computer Hardware–1.3%
International Business Machines Corp.		120,406		14,837,631

Construction & Farm Machinery & Heavy Trucks–1.3%
Caterpillar, Inc.		225,173		14,672,273

Consumer Finance–3.3%
American Express Co.		446,294		17,793,742

Capital One Financial Corp.		531,011		20,104,076

				37,897,818

Data Processing & Outsourced Services–2.0%
Automatic Data Processing, Inc.		607,510		23,455,961

Distributors–0.7%
Genuine Parts Co.		194,098		8,138,529

Diversified Banks–1.0%
Societe Generale (France)		240,258		12,149,993

Diversified Chemicals–1.5%
EI Du Pont de Nemours & Co.		440,770		17,970,193

Drug Retail–0.7%
Walgreen Co.		318,827		8,570,070

Electric Utilities–3.3%
American Electric Power Co., Inc.		693,860		24,569,583

Entergy Corp.		176,767		13,936,310

				38,505,893

Electrical Components & Equipment–1.5%
Emerson Electric Co.		381,859		17,813,722

Food Distributors–1.7%
Sysco Corp.		723,886		19,899,626

Gas Utilities–0.5%
Southern Union Co.		263,143		5,920,718

General Merchandise Stores–1.7%
Target Corp.		389,416		19,922,523

Health Care Equipment–1.4%
Stryker Corp.		370,610		16,006,646

Hotels, Resorts & Cruise Lines–0.7%
Marriott International, Inc.–Class A		256,928		8,224,265

Household Appliances–2.3%
Snap-On, Inc.		365,515		15,070,184

Whirlpool Corp.		151,796		11,257,191

				26,327,375

Household Products–3.9%
Kimberly-Clark Corp.		520,122		33,495,857

Procter & Gamble Co. (The)		198,042		11,817,166

				45,313,023

Industrial Machinery–1.4%
Pentair, Inc.		552,444		16,628,564

Insurance Brokers–1.4%
Marsh & McLennan Cos., Inc.		706,582		16,760,125

Integrated Oil & Gas–4.8%
Chevron Corp.		195,559		14,502,655

Eni SpA (Italy)		697,579		13,786,651

Exxon Mobil Corp.		311,043		18,401,304

Total SA (France)		196,691		9,158,841

				55,849,451

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

9 Invesco Dividend Growth Securities Fund


	Shares		Value

Integrated Telecommunication Services–1.4%
AT&T, Inc.		610,916	$	16,513,059

Investment Banking & Brokerage–0.7%
Charles Schwab Corp. (The)		679,826		8,674,580

Leisure Products–0.8%
Mattel, Inc.		439,875		9,232,976

Life & Health Insurance–2.3%
Lincoln National Corp.		397,590		9,287,702

MetLife, Inc.		451,403		16,972,753

				26,260,455

Motorcycle Manufacturers–0.5%
Harley-Davidson, Inc.		249,802		6,075,185

Movies & Entertainment–1.3%
Time Warner, Inc.		491,228		14,727,015

Multi-Utilities–1.5%
DTE Energy Co.		383,020		17,944,487

Office Services & Supplies–1.1%
Pitney Bowes, Inc.		634,550		12,208,742

Oil & Gas Equipment & Services–1.2%
Baker Hughes, Inc.		355,542		13,361,268

Other Diversified Financial Services–1.0%
JPMorgan Chase & Co.		304,858		11,084,637

Packaged Foods & Meats–4.4%
Campbell Soup Co.		351,946		13,113,508

General Mills, Inc.		410,595		14,847,115

Kraft Foods, Inc.–Class A		633,845		18,983,658

Mead Johnson Nutrition Co.		89,182		4,654,409

				51,598,690

Paper Products–1.6%
International Paper Co.		891,820		18,246,637

Pharmaceuticals–4.0%
Bristol-Myers Squibb Co.		666,839		17,391,161

Johnson & Johnson		386,694		22,049,292

Pfizer, Inc.		411,297		6,551,961

				45,992,414

Property & Casualty Insurance–1.6%
Travelers Cos., Inc. (The)		380,950		18,658,931

Regional Banks–3.4%
Fifth Third Bancorp		1,408,954		15,568,942

SunTrust Banks, Inc.		1,063,958		23,928,415

				39,497,357

Restaurants–1.4%
Brinker International, Inc.		1,021,344		16,086,168

Semiconductors–0.6%
Texas Instruments, Inc.		294,886		6,791,225

Soft Drinks–1.4%
Coca-Cola Co. (The)		301,218		16,844,111

Specialty Chemicals–1.7%
Lubrizol Corp. (The)		209,888		19,584,649

Systems Software–2.1%
Microsoft Corp.		482,035		11,318,182

Oracle Corp.		582,680		12,749,038

				24,067,220

Thrifts & Mortgage Finance–1.4%
Hudson City Bancorp, Inc.		1,378,605		15,888,423

Tobacco–4.9%
Altria Group, Inc.		913,620		20,391,998

Philip Morris International, Inc.		714,841		36,771,421

				57,163,419

Total Common Stocks (Cost $1,037,433,901)				1,103,705,324

Money Market Funds–4.4%
Liquid Assets Portfolio–Institutional Class^(c)		25,551,635		25,551,635

Premier Portfolio–Institutional Class^(c)		25,551,635		25,551,635

Total Money Market Funds (Cost $51,103,270)				51,103,270

TOTAL INVESTMENTS (excluding investments purchased with cash from securities on loan–99.4% (Cost $1,088,537,171)				1,154,808,594

Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–2.1%
Liquid Assets Portfolio–Institutional Class (Cost $25,014,384)^(c)(d)		25,014,384		25,014,384

TOTAL INVESTMENTS–101.5% (Cost $1,113,551,555)				1,179,822,978

OTHER ASSETS LESS LIABILITIES–(1.5)%				(17,975,428	)

NET ASSETS–100.0%			$	1,161,847,550

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 August 31, 2010.
^(c)		The money market fund and the Fund are affiliated by having the same investment adviser.
^(d)		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.

10 Invesco Dividend Growth Securities Fund

Statements of Changes in Net Assets

For the period March 1, 2010 through August 31, 2010 and the years ended February 28, 2010 and 2009, respectively


	Six months ended			For the year ended			For the year ended
	August 31, 2010			February 28, 2010			February 28, 2009

Operations:
Net investment income	$	8,628,277		$	16,502,985		$	29,796,769

Net realized gain (loss)		131,432,030			114,832,276			(65,082,253	)

Change in net unrealized appreciation (depreciation)		(205,859,095	)		390,530,068			(914,678,355	)

Net increase (decrease) in net assets resulting from operations		(65,798,788	)		521,865,329			(949,963,839	)

Distributions to shareholders from net investment income:
Class A shares		(240,567	)		(652,947	)		(762,753	)

Class B shares		(7,447,974	)		(20,107,994	)		(28,675,669	)

Class C shares		(49,742	)		(196,960	)		(255,760	)

Class Y shares		(119,698	)		(307,798	)		(1,228,001	)

Total distributions to shareholders from net investment income		(7,857,981	)		(21,265,699	)		(30,922,183	)

Distributions to shareholders from net realized gains:
Class A shares		(502,982	)		—			(2,206,572	)

Class B shares		(15,558,772	)		—			(83,432,405	)

Class C shares		(279,283	)		—			(1,566,716	)

Class Y shares		(208,816	)		—			(4,098,059	)

Total distributions to shareholders from net realized gains		(16,549,853	)		—			(91,303,752	)

Net increase (decrease) from capital stock transactions		(120,853,500	)		(221,613,254	)		(355,627,490	)

Net increase (decrease) in net assets		(211,060,122	)		278,986,376			(1,427,817,264	)

Net Assets:
Beginning of year		1,372,907,672			1,093,921,296			2,521,738,560

End of year (Includes undistributed net investment income of $4,227,004, $3,606,211 and $8,369,449, respectively)	$	1,161,847,550		$	1,372,907,672		$	1,093,921,296

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from February 28 to August 31.

Prior to June 1, 2010, the Fund operated as Morgan Stanley Dividend Growth Securities, Inc. (the “Acquired Fund”), as a diversified, open-end management investment company. The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

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

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

The Fund’s investment objective is to provide reasonable current income and long-term growth of income and capital.

13 Invesco Dividend Growth Securities Fund

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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

14 Invesco Dividend Growth Securities Fund


		evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.		Call Options Written — The Fund may write call options. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. Written call options are recorded as a liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized gains and losses on these contracts are included in the Statement of Operations. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
K.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

15 Invesco Dividend Growth Securities Fund


		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.
L.		Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into 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. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of 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 foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $250 million		0	.545%

Next $750 million		0	.42%

Next $1 billion		0	.395%

Next $1 billion		0	.37%

Next $1 billion		0	.345%

Next $1 billion		0	.32%

Next $1 billion		0	.295%

Next $2 billion		0	.27%

Next $2 billion		0	.245%

Next $5 billion		0	.22%

Over $15 billion		0	.195%

Prior to the Reorganization, the Acquired Fund paid at advisory fee of $1,535,396 to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

Effective on the date of Reorganization, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 0.95%, 1.70%, 1.70% and 0.70%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

For the period March 1, 2010 to August 31, 2010, the Adviser and MSIA waived advisory fees of $13,767 and $2,338, respectively. For the year ended February 28, 2010, MSIA waived advisory fees of $11,128.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, the Acquired Fund paid an administration fee of $282,251 to Morgan Stanley Services Company, Inc. For the period March 1, 2010 to August 31, 2010 and the year ended February 28, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

16 Invesco Dividend Growth Securities Fund

providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Prior to the Reorganization, the Acquired Fund paid $537,167 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the period March 1, 2010 to August 31, 2010 and the year ended February 28, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Morgan Stanley Distributors Inc. (“MSDI”) to serve as the distributor for the Class A, Class B and Class C shares. MSDI had agreed to waive the 12b-1 fee on Class B shares to the extent it exceeds 0.24% of the average daily net assets of such shares on an annualized basis. Pursuant to such agreements, for the period March 1, 2010 through May 31, 2010 the Acquired Fund paid $890,959 to MSDI.

For the period March 1, 2010 to August 31, 2010 and the year ended February 28, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees. For the year ended February 28, 2010, MSDI waived Class B distribution fees of $62,069.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $284 in front-end sales commissions from the sale of Class A shares and $32,384, $36,975 and $258 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period March 1 to May 31, 2010, MSDI retained $7,039 in front-end sales commissions from the sale of Class A shares and $4,069, $27,674 and $333 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the year ended February 28, 2010, MSDI retained $7,680 in front-end sales commissions from the sale of Class A shares and $9,169, $140,331 and $1,879 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


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

During the period March 1, 2010 to August 31, 2010, there were no significant transfers between investment levels.


	Level 1		Level 2		Level 3		Total

Equity Securities	$	1,125,162,013	$	54,660,965	$	—	$	1,179,822,978

NOTE 4—Derivative Investments

17 Invesco Dividend Growth Securities Fund

Effect of Derivative Instruments for the six months ended August 31, 2010 and the year ended February 28, 2010, respectively.

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


	Location of Gain (Loss) on
	Statement of Operations
	Six months ended			For the year ended
	August 31, 2010			February 28, 2010
	Options			Options

Realized Gain
Equity risk	$	226,425		$	1,377,320

Change in Unrealized Appreciation (Depreciation)
Equity risk		(95,837	)		95,837

Total	$	130,588		$	1,473,157

Transactions in options for the six months ended August 31, 2010, were as follows:


	Number of
	Contracts			Premium

Options written, outstanding at beginning of period		1,365		$	192,527

Options written		1,160			360,157

Options expired		(1,160	)		(242,399	)

Options closed		(1,365	)		(310,285	)

Options written, outstanding at end of period		—		$	—

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the period ended August 31, 2010, the Fund engaged in securities purchases of $12,469,821 and securities sales of $65,167,106, which resulted in net realized gains of $29,367,310.

NOTE 6—Expense Offset Arrangement

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the period ended August 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $122.

NOTE 7—Trustees’ and Officers’ Fees and Benefits

NOTE 8—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) 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.

18 Invesco Dividend Growth Securities Fund

NOTE 9—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Period Ended August 31, 2010 and years ended February 28, 2010 and 2009:


	August 31, 2010		February 28, 2010		February 28, 2009

Ordinary income	$	7,857,981	$	21,265,699	$	30,922,183

Long-term capital gain		16,549,853		—		91,303,752

Total distributions	$	24,407,834	$	21,265,699	$	122,225,935

Tax Components of Net Assets at Period-End:


	August 31, 2010

Undistributed ordinary income	$	8,128,902

Undistributed long-term gain		119,452,997

Net unrealized appreciation — investments		66,256,266

Net unrealized appreciation (depreciation) — other investments		(344	)

Temporary book/tax differences		(66,418	)

Shares of beneficial interest		968,076,147

Total net assets	$	1,161,847,550

The Fund utilized $4,815,939 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund does not have a capital loss carryforward at period-end.

NOTE 10—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the period ended August 31, 2010 was $749,655,961 and $932,373,152, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	120,627,108

Aggregate unrealized (depreciation) of investment securities		(54,370,842	)

Net unrealized appreciation of investment securities	$	66,256,266

Cost of investments for tax purposes is $1,113,566,712.

NOTE 11—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on August 31, 2010, undistributed net investment income was decreased by $149,503, undistributed net realized gain was increased by $149,493 and shares of beneficial interest increased by $10. This reclassification had no effect on the net assets of the Fund.

19 Invesco Dividend Growth Securities Fund

NOTE 12—Share Information


	Summary of Share Activity

	Six months ended						For the years ended February 28,
	August 31, 2010^(a)						2010						2009
	Shares			Amount			Shares			Amount			Shares			Amount

Class A Shares
Sold		65,780,971		$	859,627,511			136,093		$	1,677,854			914,162		$	10,782,218

Reinvestment of dividends and distributions		52,264			709,513			55,201			636,422			180,847			2,874,607

Redeemed		(66,093,179	)		(856,677,656	)		(707,016	)		(8,747,373	)		(1,036,670	)		(14,999,359	)

Net increase (decrease) — Class A		(259,944	)		3,659,368			(515,722	)		(6,433,097	)		58,339			(1,342,534	)

Class B Shares
Sold		64,207,654			837,627,834			419,998			5,119,934			662,272			9,264,799

Reinvestment of dividends and distributions		1,625,653			22,245,980			1,696,800			19,707,658			6,881,569			110,634,758

Redeemed		(73,989,998	)		(981,974,862	)		(19,013,548	)		(232,509,233	)		(27,921,198	)		(402,642,135	)

Net increase (decrease) — Class B		(8,156,691	)		(122,101,048	)		(16,896,750	)		(207,681,641	)		(20,377,357	)		(282,742,578	)

Class C Shares
Sold		31,099			436,565			79,592			996,499			81,528			1,107,333

Reinvestment of dividends and distributions		23,677			318,283			17,061			190,978			112,310			1,801,238

Redeemed		(194,501	)		(2,666,517	)		(467,509	)		(5,693,843	)		(650,622	)		(9,479,034	)

Net increase (decrease) — Class C		(139,725	)		(1,911,669	)		(370,856	)		(4,506,366	)		(456,784	)		(6,570,463	)

Class Y Shares
Sold		14,853			200,938			35,249			414,675			189,525			3,093,230

Reinvestment of dividends and distributions		23,449			319,096			26,153			303,025			323,910			5,310,205

Redeemed		(73,311	)		(1,020,185	)		(301,983	)		(3,709,850	)		(5,462,806	)		(73,375,350	)

Net increase (decrease) — Class Y		(35,009	)		(500,151	)		(240,581	)		(2,992,150	)		(4,949,371	)		(64,971,915	)

Net increase in (decrease) in share activity		(8,591,369	)	$	(120,853,500	)		(18,023,909	)	$	(221,613,254	)		(25,725,173	)	$	(355,627,490	)


^(a)		There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund that owns 78% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity are owned beneficially.

20 Invesco Dividend Growth Securities Fund

NOTE 13—Financial Highlights

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


	Class A Shares
	Six months
	ended
	August 31,			For the year ended February 28,
	2010			2010			2009			2008^(a)			2007			2006

Selected per share data:
Net asset value, beginning of period	$	13.65		$	9.22		$	17.45		$	20.78		$	33.51		$	37.21

Income (loss) from investment operations:
Net investment income^(b)		0.09			0.15			0.23			0.14			0.29			0.39

Net realized and unrealized gain (loss)		(0.83	)		4.47			(7.55	)		(0.80	)		2.07			1.69

Total income (loss) from investment operations		(0.74	)		4.62			(7.32	)		(0.66	)		2.36			2.08

Less dividends and distributions from:
Net investment income		(0.08	)		(0.19	)		(0.23	)		(0.25	)		(0.34	)		(0.47	)

Net realized gain		(0.18	)		—			(0.68	)		(2.42	)		(14.75	)		(5.31	)

Total dividends and distributions		(0.26	)		(0.19	)		(0.91	)		(2.67	)		(15.09	)		(5.78	)

Net asset value, end of period	$	12.65		$	13.65		$	9.22		$	17.45		$	20.78		$	33.51

Total Return^(c)		(5.57	)%		50.54	%		(44.10	)%		(4.42	)%		8.55	%		5.94	%

Net assets, end of period, in millions^(d)	$	35,315		$	42		$	33		$	61		$	2,502		$	3,412

Ratios to Average Net Assets:
Total expenses		0.89	%^(e)(f)		1.01	%^(f)		0.95	%^(f)		0.88	%^(f)		0.88	%		0.85	%

Net investment income		1.30	%^(e)(f)		1.23	%^(f)		1.52	%^(f)		1.00	%^(f)		1.04	%		1.05	%

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—			—

Supplemental Data:
Portfolio turnover^(h)		59	%		42	%		67	%		34	%		105	%		44	%


^(a)		For the year ended February 29.
^(b)		Calculated using average shares outstanding.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Net assets, end of period, for the six months ended August 31, 2010 is stated in thousands.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $143,546.
^(f)		The ratios reflect the rebate of certain Portfolio expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

21 Invesco Dividend Growth Securities Fund

NOTE 13—Financial Highlights—(continued)


	Class B Shares
	Six months
	ended
	August 31,			For the year ended February 28,
	2010			2010			2009			2008^(a)			2007			2006

Selected per share data:
Net asset value, beginning of period	$	13.76		$	9.29		$	17.58		$	20.92		$	33.65		$	37.34

Income (loss) from investment operations:
Net investment income^(b)		0.09			0.15			0.23			0.22			0.33			0.39

Net realized and unrealized gain (loss)		(0.84	)		4.52			(7.60	)		(0.87	)		2.08			1.72

Total income (loss) from investment operations		(0.75	)		4.67			(7.37	)		(0.65	)		2.41			2.11

Less dividends and distributions from:
Net investment income		(0.08	)		(0.20	)		(0.24	)		(0.27	)		(0.39	)		(0.49	)

Net realized gain		(0.18	)		—			(0.68	)		(2.42	)		(14.75	)		(5.31	)

Total dividends and distributions		(0.26	)		(0.20	)		(0.92	)		(2.69	)		(15.14	)		(5.80	)

Net asset value, end of period	$	12.75		$	13.76		$	9.29		$	17.58		$	20.92		$	33.65

Total Return^(c)		(5.59	)%		50.71	%		(44.12	)%		(4.39	)%		8.66	%		6.03	%

Net assets, end of period, in millions^(d)	$	1,091,986		$	1,291		$	1,029		$	2,305		$	848		$	1,320

Ratios to average net assets:
Total expenses		0.88	%^(e)(f)		1.00	%^(f)		0.94	%^(f)		0.86	%^(f)		0.75	%		0.75	%

Net investment income		1.31	%^(e)(f)		1.24	%^(f)		1.53	%^(f)		1.02	%^(f)		1.17	%		1.15	%

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—			—

Supplemental data:
Portfolio turnover^(h)		59	%		42	%		67	%		34	%		105	%		44	%


^(a)		For the year ended February 29.
^(b)		Calculated using average shares outstanding.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Net assets, end of period, for the six months ended August 31, 2010 is stated in thousands.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $1,137,011.
^(f)		The ratios reflect the rebate of certain Portfolio expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

22 Invesco Dividend Growth Securities Fund

NOTE 13—Financial Highlights—(continued)


	Class C Shares
	Six months
	ended
	August 31,			For the year ended February 28,
	2010			2010			2009			2008^(a)			2007			2006

Selected per share data:
Net asset value, beginning of period	$	13.61		$	9.18		$	17.38		$	20.71		$	33.42		$	37.11

Income (loss) from investment operations:
Net investment income^(b)		0.04			0.06			0.11			0.05			0.08			0.11

Net realized and unrealized gain (loss)		(0.84	)		4.47			(7.52	)		(0.87	)		2.06			1.71

Total income (loss) from investment operations		(0.80	)		4.53			(7.41	)		(0.82	)		2.14			1.82

Less dividends and distributions from:
Net investment income		(0.03	)		(0.10	)		(0.11	)		(0.09	)		(0.10	)		(0.20	)

Net realized gain		(0.18	)		—			(0.68	)		(2.42	)		(14.75	)		(5.31	)

Total dividends and distributions		(0.21	)		(0.10	)		(0.79	)		(2.51	)		(14.85	)		(5.51	)

Net asset value, end of period	$	12.60		$	13.61		$	9.18		$	17.38		$	20.71		$	33.42

Total Return^(c)		(6.00	)%		49.62	%		(44.56	)%		(5.17	)%		7.74	%		5.21	%

Net assets, end of period, in millions^(d)	$	19,445		$	23		$	19		$	44		$	60		$	80

Ratios to average net assets:
Total expenses		1.64	%^(e)(f)		1.76	%^(f)		1.70	%^(f)		1.63	%^(f)		1.64	%		1.59	%

Net investment income		0.55	%^(e)(f)		0.48	%^(f)		0.77	%^(f)		0.25	%^(f)		0.28	%		0.31	%

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—			—

Supplemental data:
Portfolio turnover^(h)		59	%		42	%		67	%		34	%		105	%		44	%


^(a)		For the year ended February 29.
^(b)		Calculated using average shares outstanding.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Net assets, end of period, for the six months ended August 31, 2010 is stated in thousands.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $21,996.
^(f)		The ratios reflect the rebate of certain Portfolio expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

23 Invesco Dividend Growth Securities Fund

NOTE 13—Financial Highlights—(continued)


	Class Y Shares
	Six months
	ended
	August 31,			For the year ended February 28,
	2010			2010			2009			2008^(a)			2007			2006

Selected per share data:
Net asset value, beginning of period	$	13.67		$	9.23		$	17.47		$	20.81		$	33.54		$	37.23

Income (loss) from investment operations:
Net investment income^(b)		0.11			0.18			0.25			0.26			0.38			0.46

Net realized and unrealized gain (loss)		(0.84	)		4.48			(7.54	)		(0.87	)		2.06			1.71

Total income (loss) from investment operations		(0.73	)		4.66			(7.29	)		(0.61	)		2.44			2.17

Less dividends and distributions from:
Net investment income		(0.09	)		(0.22	)		(0.27	)		(0.31	)		(0.42	)		(0.55	)

Net realized gain		(0.18	)		—			(0.68	)		(2.42	)		(14.75	)		(5.31	)

Total dividends and distributions		(0.27	)		(0.22	)		(0.95	)		(2.73	)		(15.17	)		(5.86	)

Net asset value, end of period	$	12.67		$	13.67		$	9.23		$	17.47		$	20.81		$	33.54

Total Return^(c)		(5.44	)%		50.97	%		(43.96	)%		(4.19	)%		8.84	%		6.22	%

Net assets, end of period, in millions^(d)	$	15,102		$	17		$	14		$	112		$	247		$	511

Ratios to average net assets:
Total expenses		0.64	%^(e)(f)		0.76	%^(f)		0.70	%^(f)		0.63	%^(f)		0.64	%		0.60	%

Net investment income		1.55	%^(e)(f)		1.48	%^(f)		1.77	%^(f)		1.25	%^(f)		1.28	%		1.30	%

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—			—

Supplemental data:
Portfolio turnover^(h)		59	%		42	%		67	%		34	%		105	%		44	%


^(a)		For the year ended February 29.
^(b)		Calculated using average shares outstanding.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(d)		Net assets, end of period, for the six months ended August 31, 2010 is stated in thousands.
^(e)		Ratios are annualized and based on average daily net assets (000’s omitted) of $16,617.
^(f)		The ratios reflect the rebate of certain Portfolio expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 14—Change in Independent Registered Public Accounting Firm

24 Invesco Dividend Growth Securities Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Dividend Growth Securities Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Dividend Growth Securities Fund (formerly known as Morgan Stanley Dividend Growth Securities Inc.; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended February 28, 2010 and prior were audited by other independent auditors whose report dated April 26, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

25 Invesco Dividend Growth Securities Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	944.30	$	4.36	$	1,020.72	$	4.53		0.89	%

B		1,000.00		943.40		4.31		1,020.77		4.48		0.88

C		1,000.00		940.70		8.02		1,016.94		8.34		1.64

Y		1,000.00		945.60		3.14		1,021.98		3.26		0.64


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

26 Invesco Dividend Growth Securities Fund


	Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Dividend Growth Securities Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed the information provided differently than another Trustee.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

27 Invesco Dividend Growth Securities Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information



		MS-DGS-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

-s- Philip Taylor

Philip Taylor
Senior Managing Director, Invesco

Invesco Equally-Weighted S&P 500 Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

-s- Bruce L. Crockett

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Equally-Weighted S&P 500 Fund

Management’s Discussion of Fund Performance

Performance summary

As part of Invesco’s June 1, 2010, acquisition of Morgan Stanley’s retail asset management business, Morgan Stanley Equally-Weighted S&P 500 Index Fund was renamed Invesco Equally-Weighted S&P 500 Fund. A listing of your Fund’s managers appears later in this report.

For the reporting period ended August 31, 2010, Class A shares of Invesco Equally-Weighted S&P 500 Fund at net asset value outperformed the S&P 500 Equal Weight Index and the Lipper Multi-Cap Core Funds Index. The Fund seeks to achieve a high level of total return on its assets through a combination of capital appreciation and current income.

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

Fund vs. Indexes

Cumulative total returns, 6/30/10 to 8/31/10, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.


Class A Shares	2.23	%

Class B Shares	2.12

Class C Shares	2.10

Class R Shares	2.24

Class Y Shares	2.29

S&P 500 Equal Weight Index^▼ (Broad Market /Style-Specific Index)	2.18

Lipper Multi-Cap Core Funds Index^■ (Peer Group Index)	1.72


^▼	Invesco, Bloomberg L.P.; ^■ Lipper Inc.

How we invest

The Fund invests in a diversified portfolio of common stocks represented in the S&P 500 Index. The S&P 500 is a well known stock market index that includes common stocks of 500 companies. The Fund generally invests in each stock included in the S&P 500 in approximately equal proportions. This approach differs from the S&P 500 because stocks in the S&P 500 are represented in proportion to their market value or market capitalization. For example, the 50 largest companies in the S&P 500 represent approximately 50 percent of the S&P 500’s value; however, these same 50 companies represent roughly 10 percent of the Fund’s value. The Fund may invest in foreign securities represented in the

S&P 500, including depositary receipts. Sale of a security in the Fund is a function of the Standard & Poor’s either adding or deleting a security from the S&P 500 Index. Securities that are added or deleted are driven by the index, not a stock selection model.

Market conditions and your Fund

The S&P 500 Index rebounded sharply in July 2010, followed by a decline in August. Despite a welcome rebound in the stock market in July, the more recent trend has been decidedly negative. Investors’ concerns about the pace of economic recovery continued, and many worried about a double-dip recession. Disappointing employment figures were a considerable overhang on the market

during the month of August. Signs of economic slowdowns in China and Japan were also cause for concern, since U.S. exporters have largely been seen as leading the recovery. In response to these troublesome signs, there was a flight to quality. Treasuries, gold and the U.S. dollar (except versus the yen) all rallied.

The Fund stayed true to its process by maintaining the same proportion to all constituents of the S&P 500 Index. On an absolute basis, all sectors in the Fund except for health care posted positive returns for the reporting period. Sectors that contributed most to overall Fund performance were the utilities, materials, information technology, consumer discretionary and consumer staples sectors. The health care sector was a detractor from the Fund’s overall positive performance.

Within the consumer discretionary sector, Priceline.com was a top contributor. Priceline.com is an online travel company, which offers a range of travel services, including hotel rooms, car rentals, airline tickets, vacation packages, cruises and destination services. Internationally, the company offers customers hotel room reservations in over 90 countries and in 32 languages. In the United States, Priceline. com offers customers the ability to purchase travel services in a price-disclosed manner or the opportunity to use the “Name Your Own Price” service, which allows customers to make offers for travel services at discounted prices.

Also contributing to the Fund’s positive performance was information technology and software and programming company, McAfee. McAfee is a security technology company. It engages in developing, marketing, distributing and supporting computer security solutions

Portfolio Composition

By sector


Financials	15.6	%

Consumer Discretionary	15.4

Information Technology	14.6

Industrials	11.1

Health Care	9.9

Consumer Staples	8.4

Energy	7.4

Utilities	7.3

Materials	6.5

Telecommunication Services	2.0

Money Market Funds Plus Other Assets Less Liabilities	1.8

Top 10 Equity Holdings*


1. Priceline.com, Inc.	0.3	%

2. CF Industries Holdings, Inc.	0.3

3. McAfee, Inc.	0.3

4. Genzyme Corp.	0.3

5. Citrix Systems, Inc.	0.3

6. Salesforce.com, Inc.	0.2

7. Intuit, Inc.	0.2

8. Archer-Daniels-Midland Co.	0.2

9. CMS Energy Corp.	0.2

10. FMC Technologies, Inc.	0.2



Total Net Assets	$878.8 million

Total Number of Holdings*		500

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

*Excluding money market fund holdings.

Invesco Equally-Weighted S&P 500 Fund

for enterprises, governments, small- and medium-sized businesses and consumers either directly or through a network of distribution partners. On August 19, 2010, Intel agreed to buy McAfee. Intel’s acquisition of McAfee is subject to regulatory and McAfee shareholder approval. The boards of both companies have already agreed to the deal.

Detracting from Fund performance were holdings in health care sector companies, Intuitive Surgical and Medco Health Solutions. Medco Health Solutions provides clinically driven pharmacy services designed to improve the quality of care and lower total health care costs for private and public employers, health plans, labor unions and government agencies of all sizes, and for individuals served by Medicare Part D Prescription Drug Plans.

As part of implementing the Fund’s strategy, the Fund may use derivatives, such as futures contracts to better manage our market exposure. The use of derivatives during the reporting period was successful.

While the global economy appeared more stable entering 2010 than it did the prior year, forecasting the future direction of the economy remained highly challenging. The bursting of the U.S. housing bubble, rising unemployment and rising taxation seemed likely to impede future economic growth, while massive fiscal and monetary stimulus seemed likely to promote economic growth.

During the fiscal year, we were cautiously optimistic about the prospects for equities. In a world of moderate but positive economic growth, low inflation and prolonged government liquidity support, we believed equities could achieve gains. Further, valuations remained reasonable by historic standards, especially after the pullback during the second quarter of 2010.

We welcome new investors who joined the Fund during the reporting period and thank all of our shareholders for your investment in Invesco Equally-Weighted S&P 500 Index Fund.

See important Fund and index disclosures later in this report.

Anthony Munchak

Chartered Financial Analyst, portfolio manager, is manager of Invesco Equally-Weighted S&P 500 Fund. He joined Invesco in 2000. Mr. Munchak earned a B.S. and M.S. in finance from Boston College and an M.B.A. from Bentley College.

Glen Murphy

Chartered Financial Analyst, portfolio manager, is manager of Invesco Equally-Weighted S&P 500 Fund. He joined Invesco in 1995. Mr. Murphy earned a B.B.A. from the University of Massachusetts and an M.S. in finance from Boston College.

Francis Orlando

Chartered Financial Analyst, portfolio manager, is manager of Invesco Equally-Weighted S&P 500 Fund. He joined Invesco in 1987. Mr. Orlando earned a B.A. in business administration from Merrimack College and an M.B.A. from Boston University.

Daniel Tsai

Chartered Financial Analyst, portfolio manager, is manager of Invesco Equally-Weighted S&P 500 Fund. He joined Invesco in 2000. Mr. Tsai earned a B.S. in mechanical engineering from National Taiwan University and an M.S. in mechanical engineering from the University of Michigan. He also earned an M.S. in computer science from Wayne State University.

Anne Unflat

Portfolio manager, is manager of Invesco Equally-Weighted S&P 500 Fund. She joined Invesco in 1988. Ms. Unflat graduated magna cum laude from Queens College with a B.A. in economics. She earned an M.B.A. in finance from St. John’s University.

Invesco Equally-Weighted S&P 500 Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (7/28/97)	4.95	%

10 Years	3.18

5 Years	-0.76

1 Year	3.85


Class B Shares

Inception (12/1/87)	9.85	%

10 Years	3.13

5 Years	-0.65

1 Year	4.04


Class C Shares

Inception (7/28/97)	4.63	%

10 Years	3.00

5 Years	-0.36

1 Year	8.07


Class R Shares

Inception (3/31/08)	-3.15	%

1 Year	9.60


Class Y Shares

Inception (7/28/97)	5.65	%

10 Years	4.01

5 Years	0.61

1 Year	10.14

Effective June 1, 2010, Class A, Class B, Class C, Class R, Class W and Class I shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C, Class R, Class A and Class Y shares, respectively, of Invesco Equally-Weighted S&P 500 Fund. Returns shown above for Class A, Class B, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Equally-Weighted S&P 500 Fund. Share class returns will differ from the predecessor fund because of different expenses.

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.



Class A Shares

Inception (7/28/97)	4.83	%

10 Years	3.67

5 Years	-0.45

1 Year	17.13


Class B Shares

Inception (12/1/87)	9.82	%

10 Years	3.63

5 Years	-0.34

1 Year	17.94


Class C Shares

Inception (7/28/97)	4.52	%

10 Years	3.49

5 Years	-0.05

1 Year	21.99


Class R Shares

Inception (3/31/08)	-4.33	%

1 Year	23.58


Class Y Shares

Inception (7/28/97)	5.54	%

10 Years	4.51

5 Years	0.93

1 Year	24.19

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R and Class Y shares was 0.71%, 1.46%, 1.46%, 0.96% and 0.46%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R and Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

Invesco Equally-Weighted S&P 500 Fund

Invesco Equally-Weighted S&P 500 Fund’s investment objective is to achieve a high level of total return on its assets through a combination of capital appreciation and current income.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

n		Class R shares are available only to certain retirement plans. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		In general, stock and other equity security values fluctuate, and sometimes widely fluctuate, in response to activities specific to the company as well as general market, economic and political conditions. Investments in convertible securities subject the fund to the risks associated with both fixed income securities, including credit risk and interest rate risk, and common stocks.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

About indexes used in this report

n		The S&P 500 Equal Weight Index is the equally weighted version of the S&P 500^® Index.

n		The Lipper Multi-Cap Core Funds Index is an unmanaged index considered representative of multi-cap core funds tracked by Lipper.

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

Other information

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

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

n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE



Fund Nasdaq Symbols
Class A Shares		VADAX
Class B Shares		VADBX
Class C Shares		VADCX
Class R Shares		VADRX
Class Y Shares		VADDX

Invesco Equally-Weighted S&P 500 Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks & Other Equity Interests–98.2%
Advertising–0.4%
Interpublic Group of Cos., Inc.^(b)		223,047	$	1,902,591

Omnicom Group, Inc.		48,745		1,706,562

				3,609,153

Aerospace & Defense–2.3%
Boeing Co. (The)		27,306		1,669,216

General Dynamics Corp.		27,738		1,549,722

Goodrich Corp.		26,074		1,785,547

Honeywell International, Inc.		43,237		1,690,134

ITT Corp.		38,238		1,625,115

L-3 Communications Holdings, Inc.		22,738		1,514,351

Lockheed Martin Corp.		22,998		1,598,821

Northrop Grumman Corp.		29,892		1,617,755

Precision Castparts Corp.		16,170		1,830,121

Raytheon Co.		34,849		1,530,568

Rockwell Collins, Inc.		31,683		1,708,664

United Technologies Corp.		26,824		1,749,193

				19,869,207

Agricultural Products–0.2%
Archer-Daniels-Midland Co.		68,250		2,100,735

Air Freight & Logistics–0.9%
C.H. Robinson Worldwide, Inc.		31,420		2,041,986

Expeditors International of Washington, Inc.		48,051		1,902,339

FedEx Corp.		23,579		1,840,341

United Parcel Service, Inc. (Class B)		29,691		1,894,286

				7,678,952

Airlines–0.2%
Southwest Airlines Co.		151,366		1,672,594

Aluminum–0.2%
Alcoa, Inc.		167,035		1,705,427

Apparel Retail–1.1%
Abercrombie & Fitch Co. (Class A)		52,526		1,817,400

Gap, Inc. (The)		87,370		1,475,679

Limited Brands, Inc.		75,253		1,775,971

Ross Stores, Inc.		32,380		1,607,019

TJX Cos., Inc.		40,376		1,602,524

Urban Outfitters, Inc.^(b)		50,800		1,540,256

				9,818,849

Apparel, Accessories & Luxury Goods–0.6%
Coach, Inc.		43,047		1,542,804

Polo Ralph Lauren Corp.		23,066		1,747,019

VF Corp.		23,442		1,655,474

				4,945,297

Application Software–1.3%
Adobe Systems, Inc.^(b)		55,362		1,536,849

Autodesk, Inc.^(b)		63,465		1,761,154

Citrix Systems, Inc.^(b)		40,262		2,332,780

Compuware Corp.^(b)		214,043		1,536,829

Intuit, Inc.^(b)		49,420		2,115,176

Salesforce.com, Inc.^(b)		19,386		2,130,134

				11,412,922

Asset Management & Custody Banks–2.0%
Ameriprise Financial, Inc.		46,673		2,034,009

Bank of New York Mellon Corp. (The)		69,817		1,694,459

Federated Investors, Inc. (Class B)		83,781		1,746,834

Franklin Resources, Inc.		19,889		1,919,487

Invesco Ltd.		96,603		1,748,514

Janus Capital Group, Inc.		181,580		1,648,747

Legg Mason, Inc.		57,992		1,468,937

Northern Trust Corp.		36,892		1,702,197

State Street Corp.		49,885		1,749,966

T. Rowe Price Group, Inc.		37,610		1,646,566

				17,359,716

Auto Parts & Equipment–0.2%
Johnson Controls, Inc.		64,279		1,705,322

Automobile Manufacturers–0.2%
Ford Motor Co.^(b)		161,932		1,828,212

Automotive Retail–0.6%
AutoNation, Inc.^(b)		87,618		1,978,414

AutoZone, Inc.^(b)		9,501		1,993,120

O’Reilly Automotive, Inc.^(b)		37,166		1,756,837

				5,728,371

Biotechnology–1.3%
Amgen, Inc.^(b)		33,618		1,715,863

Biogen Idec, Inc.^(b)		37,218		2,002,328

Celgene Corp.^(b)		33,526		1,727,260

Cephalon, Inc.^(b)		30,995		1,754,627

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

9 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Biotechnology–(continued)

Genzyme Corp.^(b)		35,146	$	2,464,086

Gilead Sciences, Inc.^(b)		51,562		1,642,765

				11,306,929

Brewers–0.2%
Molson Coors Brewing Co. (Class B)		41,655		1,814,492

Broadcasting–0.4%
CBS Corp. (Class B)		124,296		1,717,771

Discovery Communications, Inc. (Class A)^(b)		47,268		1,784,367

				3,502,138

Building Products–0.2%
Masco Corp.		150,629		1,580,098

Cable & Satellite–0.8%
Comcast Corp. (Class A)		100,256		1,716,383

DirecTV (Class A)^(b)		49,579		1,880,036

Scripps Networks Interactive, Inc. (Class A)		40,946		1,645,210

Time Warner Cable, Inc.		33,642		1,736,263

				6,977,892

Casinos & Gaming–0.4%
International Game Technology		101,130		1,476,498

Wynn Resorts Ltd.		21,824		1,759,233

				3,235,731

Coal & Consumable Fuels–0.6%
Consol Energy, Inc.		47,449		1,527,858

Massey Energy Co.		59,289		1,704,559

Peabody Energy Corp.		44,977		1,925,015

				5,157,432

Commercial Printing–0.2%
RR Donnelley & Sons Co.		101,964		1,544,245

Communications Equipment–1.6%
Cisco Systems, Inc.^(b)		79,001		1,583,970

Corning, Inc.		101,796		1,596,161

Harris Corp.		38,270		1,610,019

JDS Uniphase Corp.^(b)		159,703		1,467,671

Juniper Networks, Inc.^(b)		72,774		1,979,453

Motorola, Inc.^(b)		255,614		1,924,773

QUALCOMM, Inc.		51,996		1,991,967

Tellabs, Inc.		266,249		1,890,368

				14,044,382

Computer & Electronics Retail–0.5%
Best Buy Co., Inc.		49,055		1,539,836

GameStop Corp. (Class A)^(b)		96,603		1,732,092

RadioShack Corp.		84,123		1,554,593

				4,826,521

Computer Hardware–0.9%
Apple, Inc.^(b)		6,768		1,647,128

Dell, Inc.^(b)		132,176		1,555,712

Hewlett-Packard Co.		38,676		1,488,252

International Business Machines Corp.		14,258		1,757,013

Teradata Corp.^(b)		54,613		1,788,030

				8,236,135

Computer Storage & Peripherals–1.1%
EMC Corp.^(b)		95,904		1,749,289

Lexmark International, Inc.^(b)		48,503		1,697,120

NetApp, Inc.^(b)		45,020		1,820,609

QLogic Corp.^(b)		102,641		1,528,838

SanDisk Corp.^(b)		37,856		1,258,333

Western Digital Corp.^(b)		53,006		1,280,095

				9,334,284

Construction & Engineering–0.5%
Fluor Corp.		39,933		1,783,408

Jacobs Engineering Group, Inc.^(b)		44,588		1,546,312

Quanta Services, Inc.^(b)		81,213		1,456,961

				4,786,681

Construction & Farm Machinery & Heavy Trucks–0.8%
Caterpillar, Inc.		28,180		1,836,209

Cummins, Inc.		24,975		1,858,389

Deere & Co.		31,314		1,981,237

PACCAR, Inc.		42,514		1,742,649

				7,418,484

Construction Materials–0.2%
Vulcan Materials Co.		39,043		1,435,221

Consumer Electronics–0.2%
Harman International Industries, Inc.^(b)		54,261		1,691,315

Consumer Finance–0.8%
American Express Co.		44,153		1,760,380

Capital One Financial Corp.		43,521		1,647,705

Discover Financial Services		132,554		1,923,359

SLM Corp.^(b)		155,683		1,720,297

				7,051,741

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

10 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Data Processing & Outsourced Services–1.7%
Automatic Data Processing, Inc.		43,892	$	1,694,670

Computer Sciences Corp.		36,725		1,462,022

Fidelity National Information Services, Inc.		67,530		1,744,975

Fiserv, Inc.^(b)		37,964		1,899,339

Mastercard, Inc. (Class A)		8,661		1,717,996

Paychex, Inc.		65,504		1,630,395

Total System Services, Inc.		124,967		1,774,532

Visa, Inc. (Class A)		24,087		1,661,521

Western Union Co. (The)		114,552		1,796,175

				15,381,625

Department Stores–0.9%
JC Penney Co., Inc.		70,938		1,418,760

Kohl’s Corp.^(b)		35,212		1,654,260

Macy’s, Inc.		86,475		1,681,074

Nordstrom, Inc.		48,001		1,388,189

Sears Holdings Corp.^(b)		24,465		1,514,383

				7,656,666

Distillers & Vintners–0.4%
Brown-Forman Corp. (Class B)		31,204		1,912,493

Constellation Brands, Inc.^(b)		113,849		1,896,725

				3,809,218

Distributors–0.2%
Genuine Parts Co.		44,523		1,866,849

Diversified Banks–0.5%
Comerica, Inc.		47,316		1,628,144

US Bancorp		78,733		1,637,646

Wells Fargo & Co.		66,111		1,556,914

				4,822,704

Diversified Chemicals–1.0%
Dow Chemical Co. (The)		68,731		1,674,974

Eastman Chemical Co.		29,610		1,822,496

EI Du Pont de Nemours & Co.		48,377		1,972,330

FMC Corp.		29,719		1,850,899

PPG Industries, Inc.		27,838		1,832,576

				9,153,275

Diversified Metals & Mining–0.4%
Freeport-McMoRan Copper & Gold, Inc.		28,159		2,026,885

Titanium Metals Corp.^(b)		92,787		1,681,300

				3,708,185

Diversified Support Services–0.4%
Cintas Corp.		71,101		1,812,364

Iron Mountain, Inc.		76,242		1,546,188

				3,358,552

Drug Retail–0.4%
CVS Caremark Corp.		57,223		1,545,021

Walgreen Co.		61,673		1,657,770

				3,202,791

Education Services–0.3%
Apollo Group, Inc. (Class A)^(b)		38,349		1,629,065

DeVry, Inc.		32,425		1,235,717

				2,864,782

Electric Utilities–3.0%
Allegheny Energy, Inc.		83,292		1,878,235

American Electric Power Co., Inc.		54,484		1,929,278

Duke Energy Corp.		111,523		1,917,080

Edison International		54,024		1,823,310

Entergy Corp.		23,760		1,873,238

Exelon Corp.		44,998		1,832,318

FirstEnergy Corp.		48,239		1,762,171

NextEra Energy, Inc.		35,340		1,898,818

Northeast Utilities		69,063		2,000,755

Pepco Holdings, Inc.		110,857		1,989,883

Pinnacle West Capital Corp.		49,315		1,965,203

PPL Corp.		71,210		1,934,064

Progress Energy, Inc.		46,002		1,973,946

Southern Co.		54,404		1,996,083

				26,774,382

Electrical Components & Equipment–0.6%
Emerson Electric Co.		39,092		1,823,642

First Solar, Inc.^(b)		15,004		1,918,261

Rockwell Automation, Inc.		34,473		1,762,949

				5,504,852

Electronic Components–0.2%
Amphenol Corp. (Class A)		43,521		1,772,175

Electronic Equipment & Instruments–0.4%
Agilent Technologies, Inc.^(b)		56,907		1,534,782

FLIR Systems, Inc.^(b)		64,346		1,616,371

				3,151,153

Electronic Manufacturing Services–0.3%
Jabil Circuit, Inc.		132,933		1,362,563

Molex, Inc.		89,434		1,578,510

				2,941,073

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

11 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Environmental & Facilities Services–0.6%
Republic Services, Inc.		58,875	$	1,732,691

Stericycle, Inc.^(b)		28,357		1,857,384

Waste Management, Inc.		55,345		1,831,366

				5,421,441

Fertilizers & Agricultural Chemicals–0.5%
CF Industries Holdings, Inc.		28,882		2,671,585

Monsanto Co.		36,827		1,938,942

				4,610,527

Food–Retail–0.7%
Kroger Co. (The)		92,510		1,825,222

Safeway, Inc.		89,090		1,674,892

SUPERVALU, Inc.		144,304		1,402,635

Whole Foods Market, Inc.^(b)		45,980		1,599,644

				6,502,393

Food Distributors–0.2%
Sysco Corp.		59,651		1,639,806

Footwear–0.2%
NIKE, Inc. (Class B)		24,762		1,733,340

Forest Products–0.1%
Weyerhaeuser Co.		47,280		742,296

Gas Utilities–0.4%
EQT Corp.		45,295		1,476,617

Nicor, Inc.		43,217		1,827,647

				3,304,264

General Merchandise Stores–0.6%
Big Lots, Inc.^(b)		53,696		1,678,537

Family Dollar Stores, Inc.		47,100		2,015,409

Target Corp.		34,576		1,768,908

				5,462,854

Gold–0.2%
Newmont Mining Corp.		30,297		1,857,812

Health Care Distributors–0.7%
AmerisourceBergen Corp.		56,994		1,554,796

Cardinal Health, Inc.		51,880		1,554,325

McKesson Corp.		26,476		1,536,932

Patterson Cos., Inc.		60,349		1,526,226

				6,172,279

Health Care Equipment–2.3%
Baxter International, Inc.		44,174		1,880,045

Becton Dickinson and Co.		26,019		1,774,236

Boston Scientific Corp.^(b)		293,169		1,521,547

C.R. Bard, Inc.		23,109		1,775,465

CareFusion Corp.^(b)		75,192		1,622,643

Hospira, Inc.^(b)		32,908		1,690,155

Intuitive Surgical, Inc.^(b)		5,303		1,405,454

Medtronic, Inc.		47,742		1,502,918

St Jude Medical, Inc.^(b)		49,632		1,715,778

Stryker Corp.		35,810		1,546,634

Varian Medical Systems, Inc.^(b)		34,764		1,850,835

Zimmer Holdings, Inc.^(b)		33,709		1,590,054

				19,875,764

Health Care Facilities–0.2%
Tenet Healthcare Corp.^(b)		378,726		1,484,606

Health Care Services–1.1%
Cerner Corp^(b)		23,018		1,676,861

DaVita, Inc.^(b)		27,851		1,799,732

Express Scripts, Inc.^(b)		35,673		1,519,670

Laboratory Corp. of America Holdings^(b)		23,124		1,679,265

Medco Health Solutions, Inc.^(b)		30,902		1,343,619

Quest Diagnostics, Inc.		34,954		1,520,499

				9,539,646

Health Care Supplies–0.2%
DENTSPLY International, Inc.		58,504		1,627,581

Home Building–0.6%
DR Horton, Inc.		172,628		1,771,163

Lennar Corp. (Class A)		125,899		1,658,090

Pulte Group, Inc.^(b)		198,264		1,592,060

				5,021,313

Home Entertainment Software–0.2%
Electronic Arts, Inc.^(b)		115,767		1,764,289

Home Furnishings–0.2%
Leggett & Platt, Inc.		82,440		1,580,375

Home Improvement Retail–0.6%
Home Depot, Inc.		58,101		1,615,789

Lowe’s Cos., Inc.		82,039		1,665,392

Sherwin-Williams Co. (The)		24,359		1,714,386

				4,995,567

Homefurnishing Retail–0.2%
Bed Bath & Beyond, Inc.^(b)		43,634		1,569,515

Hotels, Resorts & Cruise Lines–0.8%
Carnival Corp. (Units)		52,407		1,634,050

Marriott International, Inc. (Class A)		52,570		1,682,766

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

12 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Hotels, Resorts & Cruise Lines–(continued)

Starwood Hotels & Resorts Worldwide, Inc.		38,428	$	1,795,741

Wyndham Worldwide Corp.		76,969		1,784,911

				6,897,468

Household Appliances–0.5%
Snap-On, Inc.		42,397		1,748,028

Stanley Black & Decker, Inc.		33,143		1,777,791

Whirlpool Corp.		18,308		1,357,721

				4,883,540

Household Products–0.8%
Clorox Co.		28,518		1,848,537

Colgate-Palmolive Co.		23,026		1,700,240

Kimberly-Clark Corp.		29,559		1,903,599

Procter & Gamble Co. (The)		30,272		1,806,330

				7,258,706

Housewares & Specialties–0.4%
Fortune Brands, Inc.		41,101		1,840,914

Newell Rubbermaid, Inc.		109,226		1,640,574

				3,481,488

Human Resource & Employment Services–0.4%
Monster Worldwide, Inc.^(b)		140,268		1,547,156

Robert Half International, Inc.		75,070		1,620,011

				3,167,167

Hypermarkets & Super Centers–0.4%
Costco Wholesale Corp.		31,879		1,802,757

Wal-Mart Stores, Inc.		35,998		1,804,940

				3,607,697

Independent Power Producers & Energy Traders–0.5%
AES Corp. (The)^(b)		176,570		1,808,077

Constellation Energy Group, Inc.		50,648		1,485,506

NRG Energy, Inc.^(b)		78,499		1,595,099

				4,888,682

Industrial Conglomerates–0.8%
3M Co.		22,859		1,795,575

General Electric Co.^(c)		116,347		1,684,705

Textron, Inc.		92,648		1,581,501

Tyco International Ltd. (Luxembourg)		43,723		1,629,993

				6,691,774

Industrial Gases–0.4%
Air Products & Chemicals, Inc.		25,939		1,920,264

Praxair, Inc.		22,862		1,966,818

				3,887,082

Industrial Machinery–1.6%
Danaher Corp.		45,584		1,656,067

Dover Corp.		40,668		1,820,300

Eaton Corp.		24,969		1,734,846

Flowserve Corp.		19,614		1,753,099

Illinois Tool Works, Inc.		41,001		1,691,701

Pall Corp.		49,818		1,703,277

Parker Hannifin Corp.		30,491		1,803,848

Roper Industries, Inc.		30,612		1,777,945

				13,941,083

Industrial REIT’s–0.2%
ProLogis		160,810		1,744,789

Insurance Brokers–0.4%
AON Corp.		46,697		1,692,299

Marsh & McLennan Cos., Inc.		80,196		1,902,249

				3,594,548

Integrated Oil & Gas–1.4%
Chevron Corp.		24,572		1,822,260

ConocoPhillips		33,131		1,737,058

Exxon Mobil Corp.		29,409		1,739,836

Hess Corp.		33,031		1,659,808

Marathon Oil Corp.		54,920		1,674,511

Murphy Oil Corp.		33,316		1,784,405

Occidental Petroleum Corp.		21,334		1,559,089

				11,976,967

Integrated Telecommunication Services–1.3%
AT&T, Inc.		72,974		1,972,487

CenturyTel, Inc.		53,066		1,918,866

Frontier Communications Corp.		237,005		1,832,049

Qwest Communications International, Inc.		343,659		1,941,673

Verizon Communications, Inc.		68,153		2,011,195

Windstream Corp.		163,790		1,889,318

				11,565,588

Internet Retail–0.8%
Amazon.com, Inc.^(b)		14,747		1,840,868

Expedia, Inc.		88,495		2,022,996

Priceline.com, Inc.^(b)		9,610		2,801,123

				6,664,987

Internet Software & Services–1.0%
Akamai Technologies, Inc.^(b)		40,588		1,869,889

eBay, Inc.^(b)		83,743		1,946,187

Google, Inc. (Class A)^(b)		3,711		1,670,024

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

13 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Internet Software & Services–(continued)

VeriSign, Inc.^(b)		63,142	$	1,839,327

Yahoo!, Inc.^(b)		119,417		1,561,975

				8,887,402

Investment Banking & Brokerage–0.8%
Charles Schwab Corp. (The)		120,113		1,532,642

E*Trade Financial Corp.^(b)		134,183		1,665,211

Goldman Sachs Group, Inc. (The)		13,429		1,838,967

Morgan Stanley		72,207		1,782,791

				6,819,611

IT Consulting & Other Services–0.4%
Cognizant Technology Solutions Corp. (Class A)^(b)		34,640		1,995,437

SAIC, Inc.^(b)		103,154		1,534,932

				3,530,369

Leisure Products–0.4%
Hasbro, Inc.		43,277		1,746,660

Mattel, Inc.		82,477		1,731,192

				3,477,852

Life & Health Insurance–1.3%
Aflac, Inc.		41,796		1,974,861

Lincoln National Corp.		66,729		1,558,789

MetLife, Inc.		45,273		1,702,265

Principal Financial Group, Inc.		70,426		1,623,319

Prudential Financial, Inc.		31,426		1,589,213

Torchmark Corp.		35,106		1,732,481

Unum Group		78,699		1,577,915

				11,758,843

Life Sciences Tools & Services–0.7%
Life Technologies Corp.^(b)		35,970		1,538,437

PerkinElmer, Inc.		81,678		1,716,055

Thermo Fisher Scientific, Inc.^(b)		34,582		1,456,594

Waters Corp.^(b)		25,878		1,566,136

				6,277,222

Managed Health Care–1.2%
Aetna, Inc.		60,984		1,629,493

CIGNA Corp.		52,705		1,698,155

Coventry Health Care, Inc.^(b)		91,102		1,762,824

Humana, Inc.^(b)		37,679		1,800,679

UnitedHealth Group, Inc.		59,232		1,878,839

WellPoint, Inc.^(b)		33,605		1,669,496

				10,439,486

Metal & Glass Containers–0.6%
Ball Corp.		33,654		1,887,316

Owens-Illinois, Inc.^(b)		61,407		1,538,860

Pactiv Corp.^(b)		62,778		2,013,918

				5,440,094

Motorcycle Manufacturers–0.2%
Harley-Davidson, Inc.		69,218		1,683,382

Movies & Entertainment–0.8%
News Corp. (Class A)		132,554		1,666,204

Time Warner, Inc.		56,303		1,687,964

Viacom, Inc. (Class B)		52,113		1,637,390

Walt Disney Co. (The)		52,795		1,720,589

				6,712,147

Multi-line Insurance–0.9%
American International Group, Inc.^(b)		48,951		1,660,907

Assurant, Inc.		50,087		1,831,181

Genworth Financial, Inc. (Class A)^(b)		121,449		1,315,293

Hartford Financial Services Group, Inc.		73,875		1,489,320

Loews Corp.		54,741		1,923,599

				8,220,300

Multi-Sector Holdings–0.2%
Leucadia National Corp.^(b)		85,875		1,833,431

Multi-Utilities–3.5%
Ameren Corp.		72,660		2,039,566

Centerpoint Energy, Inc.		132,459		1,959,069

CMS Energy Corp.		119,417		2,089,797

Consolidated Edison, Inc.		41,339		1,964,843

Dominion Resources, Inc.		44,184		1,889,308

DTE Energy Co.		38,380		1,798,103

Integrys Energy Group, Inc.		39,685		1,922,738

NiSource, Inc.		119,417		2,070,691

Oneok, Inc.		39,483		1,694,216

PG&E Corp.		42,977		2,009,604

Public Service Enterprise Group, Inc.		55,197		1,764,096

SCANA Corp.		49,342		1,925,818

Sempra Energy		37,040		1,886,077

TECO Energy, Inc.		114,623		1,934,836

Wisconsin Energy Corp.		35,845		1,998,000

Xcel Energy, Inc.		86,034		1,919,419

				30,866,181

Office Electronics–0.2%
Xerox Corp.		196,792		1,660,924

Office REIT’s–0.2%
Boston Properties, Inc.		23,170		1,886,038

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

14 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Office Services & Supplies–0.4%
Avery Dennison Corp.		52,735	$	1,714,942

Pitney Bowes, Inc.		79,885		1,536,988

				3,251,930

Oil & Gas Drilling–0.7%
Diamond Offshore Drilling, Inc.		29,054		1,690,362

Helmerich & Payne, Inc.		43,654		1,616,944

Nabors Industries Ltd. (Bermuda)^(b)		86,274		1,352,776

Rowan Cos., Inc.^(b)		73,465		1,888,785

				6,548,867

Oil & Gas Equipment & Services–1.2%
Baker Hughes, Inc.		41,543		1,561,186

Cameron International Corp.^(b)		48,874		1,797,586

FMC Technologies, Inc.^(b)		33,648		2,081,129

Halliburton Co.		68,782		1,940,340

National Oilwell Varco, Inc.		48,707		1,830,896

Schlumberger Ltd. (Netherlands Antilles)		30,657		1,634,938

				10,846,075

Oil & Gas Exploration & Production–2.2%
Anadarko Petroleum Corp.		43,593		2,004,842

Apache Corp.		19,019		1,708,857

Cabot Oil & Gas Corp.		50,940		1,418,170

Chesapeake Energy Corp.		75,405		1,559,376

Denbury Resources, Inc.^(b)		106,164		1,564,857

Devon Energy Corp.		26,540		1,599,831

EOG Resources, Inc.		16,836		1,462,543

Noble Energy, Inc.		28,125		1,962,563

Pioneer Natural Resources Co.		25,899		1,497,480

QEP Resources		55,227		1,603,240

Range Resources Corp.		37,956		1,283,292

Southwestern Energy Co.^(b)		42,099		1,377,479

				19,042,530

Oil & Gas Refining & Marketing–0.6%
Sunoco, Inc.		53,006		1,785,242

Tesoro Corp.		150,874		1,694,315

Valero Energy Corp.		103,154		1,626,739

				5,106,296

Oil & Gas Storage & Transportation–0.6%
El Paso Corp.		146,352		1,666,949

Spectra Energy Corp.		85,558		1,740,250

Williams Cos., Inc. (The)		86,636		1,570,711

				4,977,910

Other Diversified Financial Services–0.6%
Bank of America Corp.		117,303		1,460,422

Citigroup, Inc.^(b)		462,783		1,721,553

JPMorgan Chase & Co.		47,364		1,722,155

				4,904,130

Packaged Foods & Meats–2.8%
Campbell Soup Co.		49,952		1,861,212

ConAgra Foods, Inc.		74,318		1,604,526

Dean Foods Co.^(b)		171,829		1,757,811

General Mills, Inc.		48,151		1,741,140

Hershey Co. (The)		36,951		1,717,113

HJ Heinz Co.		40,123		1,855,288

Hormel Foods Corp.		44,027		1,899,765

JM Smucker Co. (The)		29,882		1,747,499

Kellogg Co.		34,068		1,692,498

Kraft Foods, Inc. (Class A)		61,837		1,852,018

McCormick & Co., Inc.		45,775		1,825,049

Mead Johnson Nutrition Co.		34,118		1,780,618

Sara Lee Corp.		125,558		1,813,058

Tyson Foods, Inc. (Class A)		101,296		1,659,228

				24,806,823

Paper Packaging–0.4%
Bemis Co., Inc.		63,228		1,825,393

Sealed Air Corp.		86,234		1,768,659

				3,594,052

Paper Products–0.4%
International Paper Co.		72,123		1,475,637

MeadWestvaco Corp.		76,242		1,659,026

				3,134,663

Personal Products–0.4%
Avon Products, Inc.		64,570		1,878,987

Estee Lauder Cos., Inc. (The) (Class A)		30,959		1,735,871

				3,614,858

Pharmaceuticals–2.3%
Abbott Laboratories		38,050		1,877,387

Allergan, Inc.		30,287		1,860,227

Bristol-Myers Squibb Co.		71,983		1,877,317

Eli Lilly & Co.		53,618		1,799,420

Forest Laboratories, Inc.^(b)		67,975		1,855,038

Johnson & Johnson		31,357		1,787,976

King Pharmaceuticals, Inc.^(b)		227,979		1,985,697

Merck & Co., Inc.		52,025		1,829,199

Mylan, Inc.^(b)		99,611		1,709,325

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

15 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Pharmaceuticals–(continued)

Pfizer, Inc.^(c)		122,008	$	1,943,587

Watson Pharmaceuticals, Inc.^(b)		42,166		1,816,090

				20,341,263

Photographic Products–0.1%
Eastman Kodak Co.^(b)		346,870		1,210,576

Property & Casualty Insurance–1.6%
ACE Ltd. (Switzerland)		33,725		1,803,276

Allstate Corp. (The)		60,764		1,677,086

Berkshire Hathaway, Inc. (Class B)^(b)		23,216		1,828,957

Chubb Corp.		35,033		1,931,019

Cincinnati Financial Corp.		65,597		1,750,128

Progressive Corp. (The)		92,097		1,823,521

Travelers Cos., Inc. (The)		36,138		1,770,039

XL Group PLC (Cayman Islands)		103,154		1,847,488

				14,431,514

Publishing–0.8%
Gannett Co., Inc.		111,456		1,347,503

McGraw-Hill Cos., Inc. (The)		61,652		1,704,678

Meredith Corp.		52,496		1,536,033

New York Times Co. (The) (Class A)^(b)		189,750		1,362,405

Washington Post Co. (The) (Class B)		4,052		1,459,652

				7,410,271

Railroads–0.6%
CSX Corp.		33,770		1,684,785

Norfolk Southern Corp.		31,404		1,685,767

Union Pacific Corp.		24,299		1,772,369

				5,142,921

Real Estate Services–0.2%
CB Richard Ellis Group, Inc. (Class A)^(b)		119,263		1,958,298

Regional Banks–2.0%
BB&T Corp.		62,757		1,388,185

Fifth Third Bancorp		136,653		1,510,016

First Horizon National Corp.^(b)		154,774		1,560,122

Huntington Bancshares, Inc.		306,736		1,622,633

KeyCorp		221,715		1,634,039

M&T Bank Corp.		20,457		1,751,937

Marshall & Ilsley Corp.		235,501		1,542,532

PNC Financial Services Group, Inc.		29,559		1,506,327

Regions Financial Corp.		259,546		1,668,881

SunTrust Banks, Inc.		70,829		1,592,944

Zions BanCorp.		77,386		1,426,224

				17,203,840

REIT–Diversified–0.2%
Vornado Realty Trust		23,377		1,894,940

Research & Consulting Services–0.4%
Dun & Bradstreet Corp.		25,340		1,669,906

Equifax, Inc.		61,225		1,804,301

				3,474,207

Residential REIT’s–0.6%
Apartment Investment & Management Co.		83,404		1,704,778

AvalonBay Communities, Inc.		17,843		1,877,440

Equity Residential		40,553		1,858,544

				5,440,762

Restaurants–0.8%
Darden Restaurants, Inc.		41,721		1,721,408

McDonald’s Corp.		26,555		1,940,108

Starbucks Corp.		65,993		1,517,179

Yum! Brands, Inc.		43,675		1,821,248

				6,999,943

Retail REIT’s–0.4%
Kimco Realty Corp.		122,330		1,823,940

Simon Property Group, Inc.		20,755		1,877,290

				3,701,230

Semiconductor Equipment–0.9%
Applied Materials, Inc.		139,112		1,445,374

KLA-Tencor Corp.		60,251		1,687,630

MEMC Electronic Materials, Inc.^(b)		157,801		1,623,772

Novellus Systems, Inc.^(b)		65,251		1,520,348

Teradyne, Inc.^(b)		157,267		1,412,258

				7,689,382

Semiconductors–2.3%
Advanced Micro Devices, Inc.^(b)		210,165		1,181,127

Altera Corp.		71,484		1,763,510

Analog Devices, Inc.		60,804		1,695,216

Broadcom Corp. (Class A)		52,407		1,570,638

Intel Corp.^(c)		86,677		1,535,916

Linear Technology Corp.		62,885		1,801,655

LSI Corp.^(b)		352,136		1,415,587

Microchip Technology, Inc.		62,483		1,730,154

Micron Technology, Inc.^(b)		185,575		1,199,742

National Semiconductor Corp.		125,985		1,588,671

Nvidia Corp.^(b)		150,874		1,407,654

Texas Instruments, Inc.		72,917		1,679,279

Xilinx, Inc.		69,244		1,672,243

				20,241,392

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

16 Invesco Equally-Weighted S&P 500 Fund


	Shares		Value

Soft Drinks–0.9%
Coca-Cola Co. (The)		35,475	$	1,983,762

Coca-Cola Enterprises, Inc.		68,629		1,953,181

Dr Pepper Snapple Group, Inc.		48,887		1,800,019

PepsiCo, Inc.		28,959		1,858,589

				7,595,551

Specialized Consumer Services–0.2%
H&R Block, Inc.		117,452		1,509,258

Specialized Finance–0.9%
CME Group, Inc.		6,041		1,498,651

IntercontinentalExchange, Inc.^(b)		15,189		1,451,461

Moody’s Corp.		87,950		1,859,263

NASDAQ OMX Group, Inc. (The)^(b)		96,805		1,733,778

NYSE Euronext		62,189		1,725,123

				8,268,276

Specialized REIT’s–1.3%
HCP, Inc.		56,716		1,997,538

Health Care REIT, Inc.		42,828		1,967,518

Host Hotels & Resorts, Inc.		119,648		1,570,978

Plum Creek Timber Co., Inc.		49,752		1,714,951

Public Storage		19,779		1,938,738

Ventas, Inc.		37,458		1,892,004

				11,081,727

Specialty Chemicals–0.8%
Airgas, Inc.		29,104		1,915,043

Ecolab, Inc.		39,483		1,871,494

International Flavors & Fragrances, Inc.		39,933		1,824,539

Sigma-Aldrich Corp.		34,842		1,852,549

				7,463,625

Specialty Stores–0.7%
CarMax, Inc.^(b)		81,263		1,619,572

Office Depot, Inc.^(b)		358,254		1,221,646

Staples, Inc.		84,429		1,500,303

Tiffany & Co.		41,758		1,654,870

				5,996,391

Steel–1.0%
AK Steel Holding Corp.		133,507		1,700,879

Allegheny Technologies, Inc.		35,638		1,451,179

Cliffs Natural Resources, Inc.		33,008		2,019,760

Nucor Corp.		44,727		1,645,059

United States Steel Corp.		42,749		1,817,260

				8,634,137

Systems Software–1.7%
BMC Software, Inc.^(b)		49,211		1,774,549

CA, Inc.		92,280		1,661,963

McAfee, Inc.^(b)		56,371		2,652,256

Microsoft Corp.^(c)		70,186		1,647,967

Novell, Inc.^(b)		303,228		1,704,141

Oracle Corp.		79,988		1,750,138

Red Hat, Inc.^(b)		58,137		2,008,633

Symantec Corp.^(b)		122,410		1,668,448

				14,868,095

Thrifts & Mortgage Finance–0.4%
Hudson City Bancorp, Inc.		138,696		1,598,472

People’s United Financial, Inc.		127,631		1,623,466

				3,221,938

Tires & Rubber–0.2%
Goodyear Tire & Rubber Co. (The)^(b)		154,774		1,430,112

Tobacco–0.9%
Altria Group, Inc.		92,695		2,068,952

Lorillard, Inc.		24,746		1,880,944

Philip Morris International, Inc.		40,420		2,079,205

Reynolds American, Inc.		35,172		1,918,281

				7,947,382

Trading Companies & Distributors–0.4%
Fastenal Co.		33,943		1,536,600

WW Grainger, Inc.		17,141		1,813,346

				3,349,946

Trucking–0.2%
Ryder System, Inc.		41,711		1,600,451

Wireless Telecommunication Services–0.6%
American Tower Corp. (Class A)^(b)		41,174		1,929,414

MetroPCS Communications, Inc.^(b)		203,704		1,821,114

Sprint Nextel Corp.^(b)		404,304		1,649,560

				5,400,088

Total Common Stocks & Other Equity Interests (Cost $501,263,855)				863,332,926

Money Market Funds–0.3%
Liquid Assets Portfolio–Institutional Class^(d)		1,265,412		1,265,412

Premier Portfolio–Institutional Class^(d)		1,265,412		1,265,412

Total Money Market Funds (Cost $2,530,824)				2,530,824

TOTAL INVESTMENTS–98.5% (Cost $503,794,679)				865,863,750

OTHER ASSETS LESS LIABILITIES–1.5%				12,966,044

NET ASSETS–100.0%			$	878,829,794

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

17 Invesco Equally-Weighted S&P 500 Fund

Statement of Changes in Net Assets

For the two months ended August 31, 2010 and the years ended June 30, 2010 and 2009


	Two months ended			Year ended			Year ended
	August 31, 2010			June 30, 2010			June 30, 2009

Operations:
Net investment income	$	2,656,524		$	10,126,037		$	15,015,212

Net realized gain (loss)		2,252,815			71,238,173			(194,994,133	)

Change in net unrealized appreciation (depreciation)		13,919,070			120,955,977			(228,731,855	)

Net increase (decrease) in net assets resulting from operations		18,828,409			202,320,187			(408,710,776	)

Distributions to shareholders from net investment income:
Class A		—			(5,859,977	)		(9,686,685	)

Class B		—			(1,053,529	)		(1,212,927	)

Class C		—			(469,837	)		(457,070	)

Class R		—			(1,726	)		(1,244	)

Class Y		—			(1,887,353	)		(4,307,220	)

Total Distributions from net investment income		—			(9,272,422	)		(15,665,146	)

Distributions to shareholders from net realized gains:
Class A		—			—			(80,882,027	)

Class B		—			—			(31,786,758	)

Class C		—			—			(8,825,968	)

Class R		—			—			(11,021	)

Class Y		—			—			(30,237,030	)

Total Distributions from net realized gains		—			—			(151,742,804	)

Net increase (decrease) in net assets resulting from share transactions		(19,801,062	)		(155,254,964	)		(173,859,398	)

Net increase (decrease) in net assets		(972,653	)		37,792,801			(749,978,124	)

Net Assets:
Beginning of period		879,802,447			842,009,646			1,591,987,770

End of period (Includes undistributed net investment income of $12,316,840, $9,670,755 and $9,344,620, respectively)	$	878,829,794		$	879,802,447		$	842,009,646

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

Invesco Equally-Weighted S&P 500 Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust), formerly AIM Counselor Series Trust, (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of twenty-two separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

On August 31, 2010, the Fund’s fiscal year-end changed from June 30 to August 31.

Prior to June 1, 2010, the Fund operated as Morgan Stanley Equally-Weighted S&P 500 Fund (the “Acquired Fund”). The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

Upon closing of the Reorganization, holders of the Acquired Fund’s Class A and Class W shares received Class A shares of the Fund; holders of the Acquired Fund’s Class B, Class C and Class R shares received the corresponding class of shares of the Fund and holders of the Acquired Fund’s Class I shares received Class Y shares of the Fund. Information for the Acquired Fund’s — Class W and Class I shares prior to the Reorganization is included with Class A and Class Y shares, respectively, throughout this report.

The Fund’s investment objective is to achieve a high level of total return on its assets through a combination of capital appreciation and current income.

21 Invesco Equally-Weighted S&P 500 Fund

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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

22 Invesco Equally-Weighted S&P 500 Fund


		laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
J.		Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $2 billion		0	.12%

Over $2 billion		0	.10%

Prior to the Reorganization, the Acquired Fund paid at advisory fee of $1,067,650 to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

23 Invesco Equally-Weighted S&P 500 Fund

The Adviser has contractually agreed, through June 30, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Class A, Class B, Class C, Class R and Class Y shares to 0.75%, 1.50%, 1.50%, 1.00% and 0.50% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the fiscal year under this expense limitation.

For the period July 1, 2010 to August 31, 2010, the Adviser waived advisory fees of $1,073. For the year ended June 30, 2010, MSIA waived advisory fees of $6,210.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, the Acquired Fund paid an administration fee of $711,767 to Morgan Stanley Services Company, Inc. For the period July 1, 2010 to August 31, 2010 and the year ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Prior to the Reorganization, the Acquired Fund paid $1,423,943 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer Agent. For the period July 1, 2010 to August 31, 2010 and the year ended June 30, 2010, the expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”), an affiliate of the Adviser. The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates; (1) Class A — up to 0.25% of the average daily net assets of Class A shares; (2) Class B — up to 1.00% of the average daily net assets of Class B shares; (3) Class C — up to 1.00% of the average daily net assets of Class C shares and (4) Class R — up to 0.50% of the average daily net assets of Class R shares .

In the case of Class B shares, provided that the Plan continues in effect, any cumulative expenses incurred by IDI, but not yet reimbursed to IDI may be recovered through the payment of future distribution fees from the Fund pursuant to the plan and contingent deferred sales charges paid by investors upon redemption of Class B shares.

For the period July 1, 2010 to August 31, 2010 and the year ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period July 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $1,924 in front-end sales commissions from the sale of Class A shares and $1,039, $12,502 and $706 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period June 1, 2010 to June 30, 2010, IDI advised the Fund that IDI retained $1,217 in front-end sales commissions from the sale of Class A shares and $0, $7,613 and $0 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period July 1, 2009 to May 31, 2010, MSDI retained $125,669 in front-end sales commissions from the sale of Class A shares and $19,413, $149,206 and $4,799 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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

24 Invesco Equally-Weighted S&P 500 Fund


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

During the period July 1, 2010 to August 31, 2010, there were no significant transfers between Level 1 and Level 2.


	Level 1			Level 2		Level 3		Total

Equity Securities	$	865,863,750		$	—	$	—	$	865,863,750

Futures*		(300,710	)		—		—		(300,710	)

Total Investments	$	865,563,040		$	—	$	—	$	865,563,040


*	Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/ Derivative Type	Assets		Liabilities

Equity risk
Futures contracts^(a)		—	$	(300,710	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the two months ended August 31, 2010 and the year ended June 30, 2010, respectively.

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


	Location of Gain (Loss) on
	Statement of Operations
	Two months ended			Year ended
	August 31, 2010			June 30, 2010
	Futures*			Futures*

Realized Gain (Loss)
Equity risk	$	(278,760	)	$	1,760,195

Change in Unrealized Appreciation (Depreciation)
Equity risk		432,539			(840,332	)

Total	$	153,779		$	919,863


*	The average value of futures outstanding for the two months ended August 31, 2010 and year ended June 30, 2010 were $11,558,970 and $7,468,474, respectively.

Open Futures Contracts

Unrealized

Number of

Month/

Appreciation

Contract

Contracts

Commitment

Value

(Depreciation)

S&P 500 E-Mini

330

September-2010/Long

17,296,950

(300,710

)

NOTE 5—Trustees’ and Officers’ Fees and Benefits

25 Invesco Equally-Weighted S&P 500 Fund

NOTE 6—Cash Balances

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the two months ended August 31, 2010 and the Years Ended June 30, 2010 and 2009:


	August 31,		June 30,
	2010		2010		2009

Ordinary income	$	—	$	9,272,422	$	15,850,578

Long-term capital gain		—		—		151,557,372

Total distributions	$	—	$	9,272,422	$	167,407,950

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	12,234,015

Net unrealized appreciation — investments		320,762,474

Temporary book/tax differences		(75,199	)

Capital loss carryforward		(92,682,698	)

Shares of beneficial interest		638,591,202

Total net assets	$	878,829,794

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

The Fund utilized $2,248,161 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2016	$	22,990,899

August 31, 2017		69,691,799

Total capital loss carryforward	$	92,682,698


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the two months ended August 31, 2010 was $3,713,112 and $27,147,141, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	339,816,871

Aggregate unrealized (depreciation) of investment securities		(19,054,397	)

Net unrealized appreciation of investment securities	$	320,762,474

Cost of investments for tax purposes is $545,101,276.

26 Invesco Equally-Weighted S&P 500 Fund

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of sales adjustments on real estate investment trusts, on August 31, 2010, undistributed net investment income was decreased by $10,439 and undistributed net realized gain (loss) was increased by $10,439. This reclassification had no effect on the net assets of the Fund.

NOTE 10—Share Information


	Summary of Share Activity

	Two months ended						Years ended June 30,
	August 31, 2010^(a)						2010						2009
	Shares			Amount			Shares			Amount			Shares			Amount

Class A
Sold		169,578		$	4,450,136			2,724,971		$	69,929,082			3,346,719		$	70,520,141

Conversion from Class B		226,963			5,965,412			129,389			3,510,993			286,924			6,105,494

Reinvestment of dividends and distributions		—			—			224,579			5,695,319			5,234,182			88,562,343

Redeemed		(686,526	)		(17,839,000	)		(4,918,358	)		(123,914,889	)		(8,642,625	)		(182,921,358	)

Net increase (decrease) — Class A		(289,985	)		(7,423,452	)		(1,839,419	)		(44,779,495	)		225,200			(17,733,380	)

Class B
Sold		12,287			319,874			175,476			4,444,539			384,883			8,289,012

Conversion to Class A		(228,827	)		(5,965,412	)		(130,102	)		(3,510,993	)		(288,462	)		(6,105,494	)

Reinvestment of dividends and distributions		—			—			40,171			1,015,527			1,888,263			31,987,183

Redeemed		(203,247	)		(5,282,607	)		(2,996,031	)		(75,680,661	)		(4,912,016	)		(106,937,915	)

Net increase (decrease) — Class B		(419,787	)		(10,928,145	)		(2,910,486	)		(73,731,588	)		(2,927,332	)		(72,767,214	)

Class C
Sold		17,659			446,294			186,847			4,577,184			279,958			5,793,644

Reinvestment of dividends and distributions		—			—			18,629			456,604			555,627			9,134,509

Redeemed		(90,618	)		(2,278,711	)		(479,138	)		(11,635,394	)		(934,237	)		(20,232,820	)

Net increase (decrease) — Class C		(72,959	)		(1,832,417	)		(273,662	)		(6,601,606	)		(98,652	)		(5,304,667	)

Class R
Sold		384			9,924			5,381			137,925			10			200

Reinvestment of dividends and distributions		—			—			31			792			725			12,265

Redeemed		(685	)		(17,703	)		(630	)		(17,386	)		—			—

Net increase (decrease) — Class R		(301	)		(7,779	)		4,782			121,331			735			12,465

Class Y
Sold		249,691			6,529,012			549,168			13,969,777			670,632			15,381,741

Reinvestment of dividends and distributions		—			—			73,263			1,869,683			2,025,936			34,461,165

Redeemed		(233,702	)		(6,138,281	)		(1,835,049	)		(46,103,066	)		(5,843,447	)		(127,909,508	)

Net increase (decrease) — Class Y		15,989			390,731			(1,212,618	)		(30,263,606	)		(3,146,879	)		(78,066,602	)

Net increase in (decrease) in share activity		(767,043	)	$	(19,801,062	)		(6,231,403	)	$	(155,254,964	)		(5,946,928	)	$	(173,859,398	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 80% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

27 Invesco Equally-Weighted S&P 500 Fund

NOTE 11—Financial Highlights

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


	Class A
	Two months ended			Year ended June 30,
	August 31, 2010			2010			2009			2008			2007			2006

Selected per share data:
Net asset value, beginning of period	$	24.74		$	20.14		$	33.39		$	45.39		$	40.04		$	37.58

Income (loss) from investment operations:
Net investment income^(a)		0.08			0.30			0.37			0.48			0.45			0.39

Net realized and unrealized gain (loss)		0.44			4.56			(9.39	)		(7.81	)		7.54			3.79

Total income (loss) from investment operations		0.52			4.86			(9.02	)		(7.33	)		7.99			4.18

Less dividends and distributions from:
Net investment income		—			(0.26	)		(0.46	)		(0.48	)		(0.40	)		(0.36	)

Net realized gain		—			—			(3.77	)		(4.19	)		(2.24	)		(1.36	)

Total dividends and distributions		—			(0.26	)		(4.23	)		(4.67	)		(2.64	)		(1.72	)

Net asset value, end of period	$	25.26		$	24.74		$	20.14		$	33.39		$	45.39		$	40.04

Total return^(b)		2.10	%		24.08	%		(24.61	)%		(17.31	)%		20.44	%		11.22	%

Net assets, end of period, (000’s)	$	556,910		$	552,673		$	486,937		$	799,622		$	1,070,820		$	850,678

Ratios to average net assets:
Total expenses		0.65	%^(c)		0.64	%		0.75	%^(d)		0.62	%^(d)		0.62	%^(d)		0.63	%

Net investment income		1.81	%^(c)		1.17	%		1.62	%^(d)		1.22	%^(d)		1.05	%^(d)		0.98	%

Rebate from affiliates		—			—			0.00	%^(e)		0.00	%^(e)		0.00	%^(e)		—

Supplemental data:
Portfolio turnover^(f)		0	%^(g)		24	%		39	%		25	%		14	%		16	%


^(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)		Ratios are annualized and based on average daily net assets (000’s omitted) of $577,013.
^(d)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(e)		Amount is less than 0.005%.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
^(g)		Amount is less than 0.5%.

28 Invesco Equally-Weighted S&P 500 Fund

NOTE 11—Financial Highlights—(continued)


	Class B
	Two months ended			Year ended June 30,
	August 31, 2010			2010			2009			2008			2007			2006

Selected per share data:
Net asset value, beginning of period	$	24.56		$	20.08		$	33.02		$	44.85		$	39.57		$	37.10

Income (loss) from investment operations:
Net investment income^(a)		0.05			0.10			0.20			0.18			0.12			0.09

Net realized and unrealized gain (loss)		0.44			4.54			(9.22	)		(7.74	)		7.45			3.74

Total income (loss) from investment operations		0.49			4.64			(9.02	)		(7.56	)		7.57			3.83

Less dividends and distributions from:
Net investment income		—			(0.16	)		(0.15	)		(0.08	)		(0.05	)		0.00

Net realized gain		—			—			(3.77	)		(4.19	)		(2.24	)		(1.36	)

Total dividends and distributions		—			(0.16	)		(3.92	)		(4.27	)		(2.29	)		(1.36	)

Net asset value, end of period	$	25.05		$	24.56		$	20.08		$	33.02		$	44.85		$	39.57

Total return^(b)		2.00	%		23.09	%		(25.14	)%		(17.96	)%		19.54	%		10.38	%

Net assets, end of period, (000’s)	$	110,367		$	118,559		$	155,328		$	352,174		$	630,489		$	674,371

Ratios to average net assets:
Total expenses		1.40	%^(c)		1.39	%		1.50	%^(d)		1.37	%^(d)		1.38	%^(d)		1.38	%

Net investment income		1.06	%^(c)		0.42	%		0.87	%^(d)		0.47	%^(d)		0.29	%^(d)		0.23	%

Rebate from affiliates		—			—			0.00	%^(e)		0.00	%^(e)		0.00	%^(e)		—

Supplemental data:
Portfolio turnover^(f)		0	%^(g)		24	%		39	%		25	%		14	%		16	%


^(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)		Ratios are annualized and based on average daily net assets (000’s omitted) of $120,375.
^(d)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(e)		Amount is less than 0.005%.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
^(g)		Amount is less than 0.5%

29 Invesco Equally-Weighted S&P 500 Fund

NOTE 11—Financial Highlights—(continued)


	Class C
	Two months ended			Year ended June 30,
	August 31, 2010			2010			2009			2008			2007			2006

Selected per share data:
Net asset value, beginning of period	$	23.82		$	19.49		$	32.33		$	44.08		$	38.97		$	36.60

Income (loss) from investment operations:
Net investment income^(a)		0.04			0.10			0.19			0.19			0.14			0.11

Net realized and unrealized gain (loss)		0.43			4.42			(9.06	)		(7.58	)		7.33			3.69

Total income (loss) from investment operations		0.47			4.52			(8.87	)		(7.39	)		7.47			3.80

Less dividends and distributions from:
Net investment income		—			(0.19	)		(0.20	)		(0.17	)		(0.12	)		(0.07	)

Net realized gain		—			—			(3.77	)		(4.19	)		(2.24	)		(1.36	)

Total dividends and distributions		—			(0.19	)		(3.97	)		(4.36	)		(2.36	)		(1.43	)

Net asset value, end of period	$	24.29		$	23.82		$	19.49		$	32.33		$	44.08		$	38.97

Total return^(b)		1.97	%		23.15	%		(25.17	)%		(17.89	)%		19.53	%		10.44	%

Net assets, end of period, (000’s)	$	55,797		$	56,462		$	51,534		$	88,658		$	124,080		$	101,809

Ratios to average net assets:
Total expenses		1.40	%^(c)		1.39	%		1.50	%^(d)		1.35	%^(d)		1.34	%^(d)		1.33	%

Net investment income		1.06	%^(c)		0.42	%		0.87	%^(d)		0.49	%^(d)		0.33	%^(d)		0.28	%

Rebate from affiliates		—			—			0.00	%^(e)		0.00	%^(e)		0.00	%^(e)		—

Supplemental data:
Portfolio turnover^(f)		0	%^(g)		24	%		39	%		25	%		14	%		16	%


^(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)		Ratios are annualized and based on average daily net assets (000’s omitted) of $58,444.
^(d)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(e)		Amount is less than 0.005%.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
^(g)		Amount is less than 0.5%.

30 Invesco Equally-Weighted S&P 500 Fund

NOTE 11—Financial Highlights—(continued)


	Class R
	Two months ended			Year ended June 30,
	August 31, 2010			2010			2009			2008^(a)

Selected per share data:
Net asset value, beginning of period	$	24.63		$	20.10		$	33.36		$	34.26

Income (loss) from investment operations:
Net investment income^(b)		0.07			0.23			0.30			0.09

Net realized and unrealized gain (loss)		0.44			4.56			(9.35	)		(0.99	)

Total income (loss) from investment operations		0.51			4.79			(9.05	)		(0.90	)

Less dividends and distributions from:
Net investment income		—			(0.26	)		(0.44	)		—

Net realized gain		—			—			(3.77	)		—

Total dividends and distributions		—			(0.26	)		(4.21	)		—

Net asset value, end of period	$	25.14		$	24.63		$	20.10		$	33.36

Total return^(c)		2.07	%		23.78	%		(24.78	)%		(2.63	)%

Net assets, end of period, (000’s)	$	205		$	208		$	73		$	97

Ratios to average net assets:
Total expenses		0.90	%^(d)		0.89	%		1.00	%^(e)		0.86	%^(e)(f)

Net investment income		1.56	%^(d)		0.92	%		1.37	%^(e)		0.98	%^(e)(f)

Rebate from affiliates		—			—			0.00	%^(g)		0.00	%^(f)(g)

Supplemental data:
Portfolio turnover^(h)		0	%⁽ⁱ⁾		24	%		39	%		25	%


^(a)		Commencement date of March 31, 2008 for Class R shares.
^(b)		Calculated using average shares outstanding.
^(c)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $208.
^(e)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(f)		Annualized.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
⁽ⁱ⁾		Amount is less than 0.5%

31 Invesco Equally-Weighted S&P 500 Fund

NOTE 11—Financial Highlights—(continued)


	Class Y
	Two months ended			Year ended June 30,
	August 31, 2010			2010			2009			2008			2007			2006

Selected per share data:
Net asset value, beginning of period	$	24.94		$	20.27		$	33.62		$	45.68		$	40.28		$	37.77

Income (loss) from investment operations:
Net investment income^(a)		0.09			0.36			0.43			0.59			0.56			0.49

Net realized and unrealized gain (loss)		0.44			4.59			(9.46	)		(7.87	)		7.58			3.81

Total income (loss) from investment operations		0.53			4.95			(9.03	)		(7.28	)		8.14			4.30

Less dividends and distributions from:
Net investment income		—			(0.28	)		(0.55	)		(0.59	)		(0.50	)		(0.43	)

Net realized gain		—			—			(3.77	)		(4.19	)		(2.24	)		(1.36	)

Total dividends and distributions		—			(0.28	)		(4.32	)		(4.78	)		(2.74	)		(1.79	)

Net asset value, end of period	$	25.47		$	24.94		$	20.27		$	33.62		$	45.68		$	40.28

Total return^(b)		2.12	%		24.39	%		(24.41	)%		(17.11	)%		20.72	%		11.49	%

Net assets, end of period, (000’s)	$	155,551		$	151,901		$	148,051		$	351,338		$	537,295		$	508,494

Ratios to average net assets:
Total expenses		0.40	%^(c)		0.39	%		0.50	%^(d)		0.37	%^(d)		0.38	%^(d)		0.38	%

Net investment income		2.06	%^(c)		1.42	%		1.87	%^(d)		1.47	%^(d)		1.29	%^(d)		1.23	%

Rebate from affiliates		—			—			0.00	%^(e)		0.00	%^(e)		0.00	%^(e)		—

Supplemental data:
Portfolio turnover^(f)		0	%^(g)		24	%		39	%		25	%		14	%		16	%


^(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. Not annualized for periods less than one year, if applicable.
^(c)		Ratios are annualized and based on average daily net assets (000’s omitted) of $161,615.
^(d)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(e)		Amount is less than 0.005%.
^(f)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
^(g)		Amount is less than 0.5%.

NOTE 12—Change in Independent Registered Public Accounting Firm

32 Invesco Equally-Weighted S&P 500 Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Equally-Weighted S&P 500 Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Equally-Weighted S&P 500 Fund (one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period ended August 31, 2010 and the year ended June 30, 2010, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended June 30, 2009 and the financial highlights of the Fund for the periods ended June 30, 2009 and prior were audited by other independent auditors whose report dated August 24, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

33 Invesco Equally-Weighted S&P 500 Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	974.20	$	2.94	$	1,022.23	$	3.01		0.59	%

B		1,000.00		970.60		6.66		1,018.45		6.82		1.34

C		1,000.00		970.40		6.66		1,018.45		6.82		1.34

R		1,000.00		973.30		4.18		1,020.97		4.28		0.84

Y		1,000.00		975.50		1.69		1,023.49		1.73		0.34


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

34 Invesco Equally-Weighted S&P 500 Fund


	Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. And Its Affiliates

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Equally-Weighted S&P 500 Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed the information provided differently than another Trustee.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

35 Invesco Equally-Weighted S&P 500 Fund

36 Invesco Equally-Weighted S&P 500 Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


MS-EWSP-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the period covered by this
report. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our
June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen
Investments, I’m glad you’re part of the Invesco family.

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco



2		Invesco Fundamental Value Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees



3		Invesco Fundamental Value Fund

Management’s Discussion of Fund Performance

Performance summary

For the 11 months ended August 31, 2010, Invesco Fundamental Value Fund underperformed the Russell 1000 Value Index, the Fund’s benchmark. As the Fund uses a bottom-up stock selection approach, stock selection in various sectors was the primary reason the Fund underperformed its benchmark.

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

Fund vs. Indexes

Cumulative total returns, 9/30/09 to 8/31/10, 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	-3.52	%

Class B Shares	-3.70

Class C Shares	-4.20

Class Y Shares	-3.30

Russell 1000 Value Index^▼ (Broad Market/Style-Specific Index)	1.06

Lipper Large-Cap Value Funds Index^▼ (Peer Group Index)	-0.65


^▼		Lipper Inc.

How we invest

We call our investment philosophy value with a catalyst. We believe that undervalued companies which are experiencing positive changes (i.e., catalysts) have the potential to generate long-term stock price growth for shareholders. We generally seek to identify companies that are out of favor with investors, under-earning relative to their potential and attractively valued. For these companies, we attempt to identify catalysts that may improve the financial results and/or correct the under-valuation. Examples of catalysts typically include improved operational efficiency, changing industry dynamics and/or a change in management.

financial statements, an evaluation of its competitive position and stability, and meetings with its executives. During the research process, we also value the company under various scenarios to determine if the investment is an attractive opportunity relative to its risks. This is also where we typically identify the positive catalyst, a prerequisite for potential investment. Finally, we generally set a price target for a stock based on normalized earnings and historical valuation multiples.

We typically sell an investment when it reaches our estimate of fair value or when we identify a more attractive investment opportunity.

Market conditions and your Fund

At the beginning of the 11-month period covered by this report, riskier assets were outperforming securities considered safe havens, like U.S. Treasuries. This continued through the middle of April 2010. However, renewed credit problems in Europe and the market correction that occurred in May, June and into August, created a more uncertain environment which prompted many investors to favor safety over risk. Although recent market volatility created challenges, it also created some investment opportunities, as companies with positive fundamentals became more attractively valued. Also, despite the market finishing lower at the end of the reporting period, there were also a number of positives, including improved market liquidity, lean corporate infrastructures and merger and acquisition activity.

An overweight allocation to consumer discretionary was one of the largest contributors to performance of the Fund, as media stocks performed well within this sector due to an increase in advertising revenue over the reporting period.

Stock selection in the energy sector was the largest relative detractor during the reporting period. The Fund had most of its energy sector exposure in exploration and production companies. We had exposure to British Petroleum and Anadarko Petroleum. Each company was negatively affected by the oil spill in the Gulf of Mexico. During the period we eliminated our position in British Petroleum and significantly reduced our exposure to Anadarko Petroleum.

Stock selection in the financials sector also was a detractor from Fund performance. In general, we focused on what we believed were lower risk financial companies with stronger balance sheets and less credit risk given the systemic risk in most financial stocks. However, the

Portfolio Composition

By sector


Financials	19.1	%

Health Care	16.4

Consumer Discretionary	12.5

Energy	11.8

Information Technology	10.8

Industrials	10.1

Consumer Staples	8.5

Utilities	6.5

Telecommunication Services	2.3

Materials	0.7

Money Market Funds
Plus Other Assets Less Liabilities	1.3

Top 10 Equity Holdings*


1.	JP Morgan Chase & Co.	4.6	%

2.	Marsh & McLennan Cos., Inc.	3.6

3.	General Electric Co.	3.2

4.	Viacom, Inc.	3.1

5.	Time Warner Cable, Inc.	3.1

6.	Occidental Petroleum Corp.	2.8

7.	Kraft Foods, Inc.	2.6

8.	American Electric Power Co., Inc.	2.5

9.	eBay, Inc.	2.4

10.	Time Warner, Inc.	2.3


Total Net Assets	$38.9 million

Total Number of Holdings*		66

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

*Excluding money market fund holdings.



4		Invesco Fundamental Value Fund

Fund had no exposure to REITs (real estate investment trusts), which performed well throughout the period. The Fund’s lack of exposure to REITs was based on our concern that valuations were high and that the commercial real estate market had weakened.

Finally, technology stocks adversely affected relative performance. The Fund was overweight this sector versus the Russell 1000 Value Index and was adversely affected by exposure to stocks in the hardware and equipment industry. Notably detracting from Fund performance was Hewlett-Packard, as the stock sold off significantly on the announcement that the CEO was leaving.

Thank you for your investment in Invesco Fundamental Value Fund and for sharing our long-term investment horizon.

See important Fund and index disclosures later in this report.

Thomas Bastian

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Fundamental Value Fund. He joined Invesco in 2010. Mr. Bastian earned a B.A. in accounting from St. John’s University and an M.B.A. in finance from the University of Michigan. He is a member of the CFA Institute and the Houston Society of Financial Analysts.

Mark Laskin

Chartered Financial Analyst, portfolio manager, is manager of Invesco Fundamental Value Fund. He joined Invesco in 2010. Mr. Laskin earned a B.A. in history from Swarthmore College and an M.B.A. and M.A. from the Wharton School and Lauder Institute, respectively, of the University of Pennsylvania.

Mary Jayne Maly

Chartered Financial Analyst, portfolio manager, is manager of Invesco Fundamental Value Fund. She joined Invesco in 2010. Ms. Maly earned a B.A. from the University of Pittsburgh and an M.B.A. from the American Graduate School of International Management. She is a member of the Houston Society of Financial Analysts.

Sergio Marcheli

Portfolio manager, is manager of Invesco Fundamental Value Fund. He joined Invesco in 2010. Mr. Marcheli earned a B.B.A. from the University of Houston and an M.B.A. from the University of St. Thomas.

James Roeder

Chartered Financial Analyst, portfolio manager, is manager of Invesco Fundamental Value Fund. He joined Invesco in 2010. Mr. Roeder earned a B.S. in accounting from Clemson University and an M.B.A. in economics and finance from the University of Chicago Graduate School of Business. He is a member of the CFA Institute and the Houston Society of Financial Analysts. He is also a Certified Public Accountant.



5		Invesco Fundamental Value Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (10/29/02)			4.96	%

	5	Years	-1.39

	1	Year	-3.52


Class B Shares

Inception (10/29/02)			5.48	%

	5	Years	-0.47

	1	Year	-2.96


Class C Shares

Inception (10/29/02)			4.95	%

	5	Years	-1.01

	1	Year	0.34


Class Y Shares

Inception (10/29/02)			5.97	%

	5	Years	-0.05

	1	Year	2.31

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Fundamental Value Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Fundamental Value Fund. Share class returns will differ from the predecessor fund because of different expenses.

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (10/29/02)			4.94	%

	5	Years	-0.90

	1	Year	8.57


Class B Shares

Inception (10/29/02)			5.48	%

	5	Years	0.03

	1	Year	9.98


Class C Shares

Inception (10/29/02)			4.94	%

	5	Years	-0.52

	1	Year	13.00


Class Y Shares

Inception (10/29/02)			5.97	%

	5	Years	0.47

	1	Year	15.33

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, and Class Y shares was 1.65%, 1.57%, 2.40% and 1.40%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, and Class Y shares was 1.70%, 1.62%, 2.45% and 1.45%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.



7		Invesco Fundamental Value Fund

Invesco Fundamental Value Fund’s investment objective is to provide total return.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		In general, stock and other equity security values fluctuate, and sometimes widely fluctuate, in response to activities specific to the company as well as general market, economic and political conditions. Investments in convertible securities subject the Fund to the risks associated with both fixed income securities, including credit risk and interest rate risk, and common stocks.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		All fixed income securities are subject to two types of risk: credit risk and interest rate risk. When the general level of interest rates goes up, the prices of most fixed income securities go down. When the general level of interest rates goes down, the prices of most fixed income securities go up.

n		Investing in the securities of foreign issuers, particularly those located in emerging market or developing countries entails the risk that news and events unique to a country or region

		will affect those markets and their issuers. In addition, the Fund’s investments in foreign issuers generally will be denominated in foreign currencies. As a result, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Fund’s investments.

n		Lower rated securities may be more susceptible to real or perceived adverse economic and competitive industry conditions.

n		REITs (real estate investment trusts) are susceptible to risk associated with the ownership of real estate and the real estate industry in general. In addition, REITs depend on specialized management skills, may not be diversified, may have less trading volume and may be subject to more abrupt or erratic price movements than the overall securities market. Investments in REITs may involve duplication of management fees and certain other expenses.

n		Value stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. Value stocks can continue to be undervalued for long periods of time and may not ever realize their full value.

About indexes used in this report

n		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.

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

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

Other information

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

n		CPA^® and Certified Public Accountant^® are trademarks owned by the American Institute of Certified Public Accountants.

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

n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE



Fund Nasdaq Symbols
Class A Shares		FVFAX
Class B Shares		FVFBX
Class C Shares		FVFCX
Class Y Shares		FVFDX



8		Invesco Fundamental Value Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks & Other Equity Interests–88.2%
Asset Management & Custody Banks–0.7%
State Street Corp.		7,855	$	275,553

Cable & Satellite–3.1%
Time Warner Cable, Inc.		23,471		1,211,338

Communications Equipment–2.1%
Cisco Systems, Inc.^(b)		41,126		824,576

Computer Hardware–3.0%
Dell, Inc.^(b)		31,550		371,344

Hewlett-Packard Co.		20,478		787,993

				1,159,337

Consumer Electronics–1.4%
Sony Corp. (ADR) (Japan)		19,895		556,861

Diversified Banks–1.1%
Wells Fargo & Co.		17,579		413,985

Diversified Chemicals–0.8%
Dow Chemical Co. (The)		12,624		307,647

Drug Retail–1.1%
Walgreen Co.		16,472		442,767

Electric Utilities–4.4%
American Electric Power Co., Inc.		27,953		989,816

Entergy Corp.		4,663		367,631

FirstEnergy Corp.		9,847		359,711

				1,717,158

Food Distributors–1.3%
Sysco Corp.		17,860		490,971

Health Care Distributors–0.8%
Cardinal Health, Inc.		10,848		325,006

Health Care Equipment–1.6%
Covidien PLC (Ireland)		17,725		626,402

Home Improvement Retail–2.0%
Home Depot, Inc.		28,481		792,057

Human Resource & Employment Services–0.8%
Manpower, Inc.		7,574		321,895

Hypermarkets & Super Centers–2.2%
Wal-Mart Stores, Inc.		17,393		872,085

Industrial Conglomerates–6.0%
General Electric Co.		86,508		1,252,636

Siemens AG (ADR) (Germany)		4,511		408,381

Tyco International Ltd. (Switzerland)		18,422		686,772

				2,347,789

Industrial Machinery–1.6%
Dover Corp.		14,026		627,804

Insurance Brokers–3.6%
Marsh & McLennan Cos., Inc.		58,529		1,388,308

Integrated Oil & Gas–7.2%
Exxon Mobil Corp.		9,164		542,142

Hess Corp.		5,768		289,842

Occidental Petroleum Corp.		14,990		1,095,469

Royal Dutch Shell PLC (ADR) (United Kingdom)		16,512		875,962

				2,803,415

Internet Software & Services–2.4%
eBay, Inc.^(b)		39,630		921,001

Investment Banking & Brokerage–1.4%
Charles Schwab Corp. (The)		43,601		556,349

Managed Health Care–1.2%
UnitedHealth Group, Inc.		14,682		465,713

Movies & Entertainment–5.4%
Time Warner, Inc.		30,180		904,796

Viacom, Inc. (Class B)		38,640		1,214,069

				2,118,865

Office Services & Supplies–1.1%
Avery Dennison Corp.		12,997		422,662

Oil & Gas Equipment & Services–1.3%
Schlumberger Ltd. (Netherlands Antilles)		9,126		486,690

Oil & Gas Exploration & Production–3.0%
Anadarko Petroleum Corp.		15,506		713,121

Devon Energy Corp.		7,667		462,167

				1,175,288

Other Diversified Financial Services–7.5%
Bank of America Corp.		58,071		722,984

Citigroup, Inc.^(b)		107,916		401,448

JPMorgan Chase & Co.		49,109		1,785,603

				2,910,035

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

9 Invesco Fundamental Value Fund


	Shares		Value

Packaged Foods & Meats–2.6%
Kraft Foods, Inc. (Class A)		33,757	$	1,011,022

Personal Products–1.2%
Avon Products, Inc.		16,489		479,830

Pharmaceuticals–7.9%
Abbott Laboratories		6,882		339,558

Bayer AG (ADR) (Germany)		9,688		592,872

Bristol-Myers Squibb Co.		32,009		834,795

Merck & Co., Inc.		9,887		347,627

Pfizer, Inc.		23,284		370,914

Roche Holding AG (ADR) (Switzerland)		16,946		576,565

				3,062,331

Property & Casualty Insurance–1.2%
Chubb Corp.		8,308		457,937

Regional Banks–3.7%
BB&T Corp.		10,567		233,742

Fifth Third Bancorp		36,188		399,878

PNC Financial Services Group, Inc.		15,666		798,339

				1,431,959

Semiconductors–1.2%
Intel Corp.		25,247		447,377

Wireless Telecommunication Services–2.3%
Vodafone Group PLC (ADR) (United Kingdom)		36,630		885,713

Total Common Stocks & Other Equity Interests (Cost $33,719,787)				34,337,726


	Principal
	Amount
Convertible Bonds–7.4%
Advertising–0.4%
Interpublic Group of Cos., Inc., 4.25%, 03/15/23	$	146,000		154,395

Biotechnology–2.5%
Amgen, Inc., 0.375%, 02/01/13^(c)		500,000		498,750

Amgen, Inc., 0.375%, 02/01/13		500,000		498,750

				997,500

Communications Equipment–1.2%
JDS Uniphase Corp., 1.00%, 05/15/26^(c)		500,000		459,375

Computer Storage & Peripherals–0.7%
SanDisk Corp., 1.00%, 05/15/13		293,000		270,292

Construction & Farm Machinery & Heavy Trucks–0.1%
Navistar International Corp., 3.00%, 10/15/14		39,000		42,754

Health Care Services–0.7%
Omnicare, Inc., (Series OCR), 3.25%, 12/15/35		334,000		279,725

Life Sciences Tools & Services–1.1%
Life Technologies Corp., 1.50%, 02/15/24		400,000		442,000

Oil & Gas Equipment & Services–0.4%
Helix Energy Solutions Group, Inc., 3.25%, 12/15/25		163,000		149,145

Semiconductors–0.3%
Micron Technology, Inc., 1.875%, 06/01/14		122,000		105,683

Total Convertible Bonds (Cost $2,816,335)				2,900,869


	Shares
Convertible Preferred Stocks–3.1%
Electric Utilities–2.1%
CenterPoint Energy, Inc., 3.07%, Pfd.		28,000		808,920

Health Care Facilities–0.5%
HealthSouth Corp., 6.50%, Pfd.^(c)		250		198,188

Office Services & Supplies–0.5%
Avery Dennison Corp., 7.88%, Pfd.		5,325		205,012

Total Convertible Preferred Stocks (Cost $1,146,894)				1,212,120

Money Market Funds–1.5%
Liquid Assets Portfolio–Institutional Class^(d)		286,663		286,663

Premier Portfolio–Institutional Class^(d)		286,663		286,663

Total Money Market Funds (Cost $573,326)				573,326

TOTAL INVESTMENTS (Cost $38,256,342)–100.2%				39,024,041

OTHER ASSETS LESS LIABILITIES–(0.2)%				(69,354	)

NET ASSETs–100.0%			$	38,954,687

Investment Abbreviation:


ADR		– American Depositary Receipt

Notes to Schedule of Investments:


^(a)		Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
^(b)		Non-income producing security.
^(c)		Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at August 31, 2010 was $1,156,313 which represented 3.0% of the Fund’s Net Assets.
^(d)		The money market fund and the Fund are affiliated by having the same investment adviser.

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

10 Invesco Fundamental Value Fund

Statements of Changes in Net Assets

For the period October 1, 2009 through August 31, 2010 and the years ended September 30, 2009 and 2008


	For the eleven			For the			For the
	months ended			year ended			year ended
	August 31,			September 30,			September 30,
	2010			2009			2008

Operations:
Net investment income	$	265,523		$	558,342		$	910,539

Net realized gain (loss)		2,607,749			(5,913,268	)		2,709,560

Change in net unrealized appreciation (depreciation)		(4,161,805	)		673,423			(17,972,524	)

Net increase (decrease) in net assets resulting from operations		(1,288,533	)		(4,681,503	)		(14,352,425	)

Distributions to shareholders from net investment income:
Class A shares		(182,411	)		(305,854	)		(351,043	)

Class B shares		(362,022	)		(651,479	)		(861,972	)

Class C shares		(15,905	)		(52,518	)		(36,509	)

Class Y shares		(4,507	)		(5,596	)		(8,309	)

Total Distributions from net investment income		(564,845	)		(1,015,447	)		(1,257,833	)

Distributions to shareholders from net realized gains:
Class A shares		—			(817,700	)		(2,169,807	)

Class B shares		—			(1,623,014	)		(4,808,062	)

Class C shares		—			(214,173	)		(503,923	)

Class Y shares		—			(13,107	)		(41,521	)

Total Distributions from net realized gains		—			(2,667,994	)		(7,523,313	)

Net increase (decrease) from in net assets resulting from share transactions		(8,552,702	)		(6,377,388	)		(15,350,664	)

Net increase (decrease) in net assets		(10,406,080	)		(14,742,332	)		(38,484,235	)

Net Assets:
Beginning of year		49,360,767			64,103,099			102,587,334

End of year (includes undistributed net investment income of $263,939, $563,261 and $1,007,830, respectively)	$	38,954,687		$	49,360,767		$	64,103,099

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year changed from September 30 to August 31.

Prior to June 1, 2010, the Fund operated as Morgan Stanley Fundamental Value Fund (the “Acquired Fund”), as a diversified, open-end management investment company. The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

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

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

The Fund’s investment objective is to provide total return.

13 Invesco Fundamental Value Fund

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income 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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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

14 Invesco Fundamental Value Fund


		evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		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.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.
G.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
H.		Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
		The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
I.		Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into 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. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of 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 foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0.67	%

Over $500 million		0.62	%

Prior to the Reorganization, the Acquired Fund paid at advisory fee of $215,842 to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

15 Invesco Fundamental Value Fund

Effective on the date of Reorganization, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 1.65%, 2.40%, 2.40% and 1.40%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco Advisers, Inc. mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

For the period October 1, 2009 to August 31, 2010, the Adviser and MSIA waived advisory fees of $1,237.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, the Acquired Fund paid an administration fee of $25,772 to Morgan Stanley Services Company, Inc. For the period October 1, 2009 to August 31, 2010 and the year ended September 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Prior to the Reorganization, the Acquired Fund paid $54,469 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the period October 1, 2009 to August 31, 2010 and the year ended September 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

For the period October 1, 2009 to August 31, 2010 and the year ended September 30, 2009, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information


	Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
	Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
	Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs

16 Invesco Fundamental Value Fund


		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.


	Level 1		Level 2		Level 3		Total

Equity Securities	$	33,946,627	$	2,176,545	$	—	$	36,123,172

Corporate Debt Securities		—		2,900,869		—		2,900,869

Total Investments	$	33,946,627	$	5,077,414	$	—	$	39,024,041

NOTE 4—Trustees’ and Officers’ Fees and Benefits

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

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

Tax Character of Distributions to Shareholders Paid During the eleven months Ended August 31, 2010 and Year Ended September 30, 2009:


	August 31,		September 30,		September 30,
	2010		2009		2008

Ordinary income	$	564,845	$	1,015,494	$	1,257,833

Long-term capital gain		—		2,667,947		7,523,313

Total distributions	$	564,845	$	3,683,441	$	8,781,146

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	264,341

Net unrealized appreciation — investments		734,426

Temporary book/tax differences		(402	)

Capital loss carryforward		(3,452,731	)

Shares of beneficial interest		41,409,053

Total net assets	$	38,954,687

17 Invesco Fundamental Value Fund

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	920,802

August 31, 2018		2,531,929

Total capital loss carryforward	$	3,452,731


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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the eleven months ended August 31, 2010 was $7,263,456 and $14,895,007, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	3,647,310

Aggregate unrealized (depreciation) of investment securities		(2,912,884	)

Net unrealized appreciation of investment securities	$	734,426

Cost of investments for tax purposes is $38,289,615.

NOTE 8—Share Information


	Summary of Share Activity

	For the eleven
	months ended						For the years ended September 30,
	August 31, 2010^(a)						2009						2008
	Shares			Amount			Shares			Amount			Shares			Amount

Class A Shares
Sold		1,357,993		$	12,990,847			285,610		$	2,306,144			247,998		$	3,207,911

Reinvestment of dividends and distributions		18,337			179,701			144,994			1,113,553			179,633			2,263,375

Redeemed		(1,613,951	)		(15,317,124	)		(597,635	)		(4,710,120	)		(774,513	)		(9,596,253	)

Net increase (decrease) — Class A		(237,621	)		(2,146,576	)		(167,031	)		(1,290,423	)		(346,882	)		(4,124,967	)

Class B Shares
Sold		1,300,362			12,184,831			291,917			2,294,118			152,455			1,817,366

Reinvestment of dividends and distributions		36,383			354,006			293,648			2,237,597			412,580			5,165,500

Redeemed		(1,918,187	)		(18,352,790	)		(1,177,436	)		(9,357,976	)		(1,410,144	)		(16,848,366	)

Net increase (decrease) — Class B		(581,442	)		(5,813,953	)		(591,871	)		(4,826,261	)		(845,109	)		(9,865,500	)

Class C Shares
Sold		28,761			284,911			62,444			497,765			28,400			339,178

Reinvestment of dividends and distributions		1,585			15,389			34,579			263,144			40,469			505,864

Redeemed		(100,487	)		(984,950	)		(128,874	)		(994,683	)		(91,505	)		(1,096,654	)

Net increase (decrease) — Class C		(70,141	)		(684,650	)		(31,851	)		(233,774	)		(22,636	)		(251,612	)

Class Y Shares
Sold		15,486			155,453			3,307			26,642			—			—

Reinvestment of dividends and distributions		461			4,507			2,438			18,703			3,479			43,796

Redeemed		(6,676	)		(67,483	)		(10,444	)		(72,275	)		(81,944	)		(1,152,381	)

Net increase (decrease) — Class Y		9,271			92,477			(4,699	)		(26,930	)		(78,465	)		(1,108,585	)

Net increase in (decrease) in share activity		(879,933	)	$	(8,552,702	)		(795,452	)	$	(6,377,388	)		(1,293,092	)	$	(15,350,664	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 81% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

18 Invesco Fundamental Value Fund

NOTE 9—Financial Highlights

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


	Class A Shares
	For the eleven
	months ended
	August 31,			For the year ended September 30,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	9.66		$	10.85		$	14.25		$	14.29		$	14.32		$	13.10

Income (loss) from investment operations:
Net investment income^(a)		0.06			0.10			0.13			0.17			0.15			0.13

Net realized and unrealized gain (loss)		(0.39	)		(0.66	)		(2.24	)		1.43			1.29			2.14

Total income (loss) from investment operations		(0.33	)		(0.56	)		(2.11	)		1.60			1.44			2.27

Less dividends and distributions from:
Net investment income		(0.12	)		(0.17	)		(0.18	)		(0.16	)		(0.12	)		(0.11	)

Net realized gain		—			(0.46	)		(1.11	)		(1.48	)		(1.35	)		(0.94	)

Total dividends and distributions		(0.12	)		(0.63	)		(1.29	)		(1.64	)		(1.47	)		(1.05	)

Net asset value, end of period	$	9.21		$	9.66		$	10.85		$	14.25		$	14.29		$	14.32

Total return^(b)		(3.52	)%		(3.61	)%		(16.08	)%		11.81	%		10.95	%		17.99	%

Net assets, end of period^(c)	$	12,509		$	15,418		$	19,137		$	30,067		$	36,955		$	36,759

Ratios to average net assets:
Total expenses

With fee waivers and/or expense reimbursements		1.51	%^(d)(e)		1.65	%^(e)		1.38	%^(e)		1.30	%^(e)		1.34	%		1.36	%

Net investment income		0.69	%^(d)(e)		1.23	%^(e)		1.09	%^(e)		1.24	%^(e)		1.06	%		0.93	%

Rebate from affiliates		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		—			—

Supplemental Data:
Portfolio turnover^(g)		16	%		57	%		16	%		25	%		28	%		37	%


^(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)		Net assets, end of period, is stated in thousands.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $15,872.
^(e)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(f)		Amount is less than 0.005%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

19 Invesco Fundamental Value Fund

NOTE 9—Financial Highlights—(continued)


	Class B Shares
	For the eleven
	months ended
	August 31,			For the year ended September 30,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	9.60		$	10.79		$	14.19		$	14.23		$	14.17		$	12.98

Income (loss) from investment operations:
Net investment income^(a)		0.06			0.11			0.14			0.19			0.16			0.03

Net realized and unrealized gain (loss)		(0.41	)		(0.65	)		(2.23	)		1.42			1.29			2.13

Total income (loss) from investment operations		(0.35	)		(0.54	)		(2.09	)		1.61			1.45			2.16

Less dividends and distributions from:
Net investment income		(0.12	)		(0.19	)		(0.20	)		(0.17	)		(0.04	)		(0.03	)

Net realized gain		—			(0.46	)		(1.11	)		(1.48	)		(1.35	)		(0.94	)

Total dividends and distributions		(0.12	)		(0.65	)		(1.31	)		(1.65	)		(1.39	)		(0.97	)

Net asset value, end of period	$	9.13		$	9.60		$	10.79		$	14.19		$	14.23		$	14.17

Total return^(b)		(3.70	)%		(3.47	)%		(16.03	)%		11.98	%		11.07	%		17.27	%

Net assets, end of period^(c)	$	23,065		$	29,818		$	39,935		$	64,470		$	59,807		$	67,448

Ratios to average net assets:
Total expenses

With fee waivers and/or expense reimbursements		1.54	%^(d)(e)		1.57	%^(e)		1.28	%^(e)		1.20	%^(e)		1.19	%		2.03	%

Net investment income		0.66	%^(d)(e)		1.31	%^(e)		1.19	%^(e)		1.34	%^(e)		1.21	%		0.26	%

Rebate from affiliates		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		—			—

Supplemental data:
Portfolio turnover^(g)		16	%		57	%		16	%		25	%		28	%		37	%


^(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)		Net assets, end of period, is stated in thousands.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $26,925.
^(e)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(f)		Amount is less than 0.005%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

20 Invesco Fundamental Value Fund

NOTE 9—Financial Highlights—(continued)


	Class C Shares
	For the eleven
	months ended
	August 31,			For the year ended September 30,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	9.52		$	10.71		$	14.07		$	14.13		$	14.19		$	12.99

Income (loss) from investment operations:
Net investment income (loss)^(a)		(0.01	)		0.04			0.04			0.07			0.05			0.04

Net realized and unrealized gain (loss)		(0.39	)		(0.66	)		(2.21	)		1.41			1.27			2.13

Total income (loss) from investment operations		(0.40	)		(0.62	)		(2.17	)		1.48			1.32			2.17

Less dividends and distributions from:
Net investment income		(0.04	)		(0.11	)		(0.08	)		(0.06	)		(0.03	)		(0.03	)

Net realized gain		—			(0.46	)		(1.11	)		(1.48	)		(1.35	)		(0.94	)

Total dividends and distributions		(0.04	)		(0.57	)		(1.19	)		(1.54	)		(1.38	)		(0.97	)

Net asset value, end of period	$	9.08		$	9.52		$	10.71		$	14.07		$	14.13		$	14.19

Total return^(b)		(4.20	)%		(4.39	)%		(16.64	)%		11.03	%		10.08	%		17.29	%

Net assets, end of period^(c)	$	3,095		$	3,914		$	4,743		$	6,551		$	7,195		$	6,024

Ratios to average net assets:
Total expenses

With fee waivers and/or expense reimbursements		2.26	%^(d)(e)		2.40	%^(e)		2.11	%^(e)		2.02	%^(e)		2.05	%		1.98	%

Net investment income (loss)		(0.06	)%^(d)(e)		0.48	%^(e)		0.36	%^(e)		0.52	%^(e)		0.35	%		0.31	%

Rebate from affiliates		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		—			—

Supplemental data:
Portfolio turnover^(g)		16	%		57	%		16	%		25	%		28	%		37	%


^(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)		Net assets, end of period, is stated in thousands.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $3,556.
^(e)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(f)		Amount is less than 0.005%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

21 Invesco Fundamental Value Fund

NOTE 9—Financial Highlights—(continued)


	Class Y Shares
	For the eleven
	months
	ended
	August 31,			For the year ended September 30,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	9.66		$	10.86		$	14.28		$	14.31		$	14.34		$	13.13

Income (loss) from investment operations:
Net investment income^(a)		0.09			0.12			0.17			0.21			0.18			0.16

Net realized and unrealized gain (loss)		(0.40	)		(0.66	)		(2.26	)		1.43			1.29			2.15

Total income (loss) from investment operations		(0.31	)		(0.54	)		(2.09	)		1.64			1.47			2.31

Less dividends and distributions from:
Net investment income		(0.14	)		(0.20	)		(0.22	)		(0.19	)		(0.15	)		(0.16	)

Net realized gain		—			(0.46	)		(1.11	)		(1.48	)		(1.35	)		(0.94	)

Total dividends and distributions		(0.14	)		(0.66	)		(1.33	)		(1.67	)		(1.50	)		(1.10	)

Net asset value, end of period	$	9.21		$	9.66		$	10.86		$	14.28		$	14.31		$	14.34

Total return^(b)		(3.30	)%		(3.40	)%		(15.92	)%		12.12	%		11.17	%		18.31	%

Net assets, end of period^(c)	$	287		$	211		$	288		$	1,499		$	1,565		$	1,548

Ratios to average net assets:
Total expenses

With fee waivers and/or expense reimbursements		1.26	%^(d)(e)		1.40	%^(e)		1.13	%^(e)		1.06	%^(e)		1.10	%		1.11	%

Net investment income		0.94	%^(d)(e)		1.48	%^(e)		1.34	%^(e)		1.48	%^(e)		1.30	%		1.18	%

Rebate from affiliates		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		0.00	%^(f)		—			—

Supplemental data:
Portfolio turnover^(g)		16	%		57	%		16	%		25	%		28	%		37	%


^(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)		Net assets, end of period, is stated in thousands.
^(d)		Ratios are annualized and based on average daily net assets (000’s omitted) of $306.
^(e)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
^(f)		Amount is less than 0.005%.
^(g)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 10—Change in Independent Registered Public Accounting Firm

22 Invesco Fundamental Value Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Fundamental Value Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Fundamental Value Fund (formerly known as Morgan Stanley Fundamental Value Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended September 30, 2009 and prior were audited by other independent auditors whose report dated November 25, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

23 Invesco Fundamental Value Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	932.20	$	6.92	$	1,018.05	$	7.22		1.42	%

B		1,000.00		930.70		7.15		1,017.80		7.48		1.47

C		1,000.00		928.40		10.55		1,014.27		11.02		2.17

Y		1,000.00		933.10		5.70		1,019.31		5.96		1.17


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

24 Invesco Fundamental Value Fund


	Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Fundamental Value Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed the information provided differently than another Trustee.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

25 Invesco Fundamental Value Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


		MS-FVAL-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco Large Cap Relative Value Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco Large Cap Relative Value Fund

Management’s Discussion of Fund Performance

Performance summary

For the eight months ended August 31, 2010, Invesco Large Cap Relative Value Fund underperformed the Russell 1000 Value Index, the Fund’s benchmark. As the Fund uses a bottom-up stock selection approach, stock selection in various sectors was the primary reason the Fund underperformed its benchmark.

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

Fund vs. Indexes


Class A Shares	-6.53	%

Class B Shares*	-7.06

Class C Shares*	-7.06

Class Y Shares	-6.41

Russell 1000 Value Index^▼ (Broad Market/Style-Specific Index)	-3.03

Lipper Large-Cap Value Funds Index^▼ (Peer Group Index)	-5.40

^▼Lipper Inc.

*Share class incepted during the reporting period. For a detailed explanation of Fund performance see page 7.

How we invest

We initially identify potential investments through a series of quantitative screens including, but not limited to, return on capital and enterprise value-to-

sales metrics. We then conduct fundamental research on the most attractive opportunities. The research process includes a thorough review of a company’s financial statements, an evaluation of its competitive position and stability, and meetings with its executives. During the research process, we also value the company under various scenarios to determine if the investment is an attractive opportunity relative to its risks. This is also where we typically identify the positive catalyst, a prerequisite for potential investment. Finally, we generally set a price target for a stock based on normalized earnings and historical valuation multiples.

In short, our objective is to exploit negative sentiment toward a company’s stock by analyzing the company’s operations in the context of a cyclical environment and identifying one or more

catalysts that may improve the company’s financial performance. Improved financial performance, in turn, has the potential to drive the company’s stock price higher.

We typically sell an investment when it reaches our estimate of fair value or when we identify a more attractive investment opportunity.

Market conditions and your Fund

At the beginning of the eight-month period covered by this report, riskier assets were outperforming securities considered safe havens, like U.S. Treasuries. This continued through the middle of April 2010. However, renewed credit problems in Europe and the market correction that occurred in May, June and into August, created a more uncertain environment which prompted many investors to favor safety over risk. Although recent market volatility created challenges, it also created some investment opportunities, as companies with positive fundamentals became more attractively valued. Also, despite the market finishing lower at the reporting period end, there were also a number of positives, including improved market liquidity, lean corporate infrastructures and merger and acquisition activity.

An overweight allocation to the consumer discretionary sector was one of the largest contributors to performance of the Fund, as media stocks performed well due to an increase in advertising revenue over the reporting period.

Stock selection in the health care sector was also one of the contributors to Fund performance. Notably, Genzyme’s stock price rose on the announcement from Sanofi-Aventis of their interest in

Portfolio Composition

By sector


Financials	20.1	%

Energy	12.0

Health Care	11.4

Consumer Discretionary	11.3

Information Technology	10.8

Consumer Staples	10.5

Industrials	9.6

Utilities	4.6

Telecommunication Services	2.9

Materials	1.7

Money Market Funds Plus Other Assets Less Liabilities	5.1

Top 10 Equity Holdings*


1.	JPMorgan Chase & Co.	4.6	%

2.	Marsh & McLennan Cos., Inc.	3.3

3.	General Electric Co.	3.2

4.	Viacom, Inc.	2.8

5.	eBay, Inc.	2.6

6.	Kraft Foods, Inc.	2.3

7.	American Electric Power Co., Inc.	2.3

8.	Occidental Petroleum Corp.	2.2

9.	Bank of America Corp.	2.1

10.	Wal-Mart Stores, Inc.	2.0


Total Net Assets	$225.8 million

Total Number of Holdings*		78

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

*Excluding money market fund holdings.

Invesco Large Cap Relative Value Fund

acquiring Genzyme. We sold Genzyme on the acquisition announcement and resulting run-up in stock price.

The information technology sector was the largest relative detractor from performance during the reporting period. The Fund was overweight the sector versus the Russell 1000 Value Index and was adversely affected by exposure to stocks in the hardware and equipment industry. Notably detracting from Fund performance was Hewlett-Packard, as the stock sold off significantly on the announcement that the CEO was leaving.

Stock selection in the financials sector also detracted from Fund performance. In general, we focused on what we believed were lower risk financial companies with stronger balance sheets and less credit risk given the systemic risk in most financial stocks. However, the Fund had no exposure to REITs (real estate investment trusts), which performed well throughout the period. The Fund’s lack of exposure to REITs was based on our concern that valuations were high and that the commercial real estate market had weakened.

Finally, stock selection in the energy sector also detracted from Fund performance. The Fund had most of its energy sector exposure in exploration and production companies. We had exposure to BP and Anadarko Petroleum. Each company was negatively affected by the oil spill in the Gulf of Mexico. During the period we eliminated our position in BP and significantly reduced our exposure to Anadarko Petroleum.

Thank you for your investment in Invesco Large Cap Relative Value Fund and for sharing our long-term investment horizon.

See important Fund and index disclosures later in this report.

Thomas Bastian

Chartered Financial Analyst, portfolio manager, is manager of Invesco Large Cap Relative Value Fund. He joined Invesco in 2010. Mr. Bastian earned a B.A. in accounting from St. John’s University and an M.B.A. in finance from the University of Michigan. He is a member of the CFA Institute and the Houston Society of Financial Analysts.

Mark Laskin

Chartered Financial Analyst, portfolio manager, is manager of Invesco Large Cap Relative Value Fund. He joined Invesco in 2010. Mr. Laskin earned a B.A. in history from Swarthmore College and an M.B.A. and M.A. from the Wharton School and Lauder Institute, respectively, of the University of Pennsylvania.

Mary Jayne Maly

Chartered Financial Analyst, portfolio manager, is manager of Invesco Large Cap Relative Value Fund. She joined Invesco in 2010. Ms. Maly earned a B.A. from the University of Pittsburgh and an M.B.A. from the American Graduate School of International Management. She is a member of the Houston Society of Financial Analysts.

Sergio Marcheli

Portfolio manager, is manager of Invesco Large Cap Relative Value Fund. He joined Invesco in 2010. Mr. Marcheli earned a B.B.A. from the University of Houston and an M.B.A. from the University of St. Thomas.

James Roeder

Chartered Financial Analyst, portfolio manager, is manager of Invesco Large Cap Relative Value Fund. He joined Invesco in 2010. Mr. Roeder earned a B.S. in accounting from Clemson University and an M.B.A. in economics and finance from the University of Chicago Graduate School of Business. He is a member of the CFA Institute and the Houston Society of Financial Analysts. He is also a Certified Public Accountant.

Invesco Large Cap Relative Value Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Class without Sales Charges since Inception

Fund and index data from 1/31/90

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

Index data from 12/31/95, Fund data from 1/2/96

Past performance cannot guarantee comparable future results.

The performance data shown in the first chart above is that of the Fund’s Class Y shares. The performance of the Fund’s other share classes will differ primarily due to different sales charge structures and class expenses and may be greater than or less than the performance of the Fund’s Class Y shares. The data shown in this chart includes reinvested distributions, Fund expenses and management fees. Index results include reinvested dividends.

The performance data shown in the second chart above is that of the Fund’s

Class A shares. The performance of the Fund’s other share classes will differ primarily due to different sales charge structures and class expenses and may be greater than or less than the performance of the Fund’s Class A shares. The data shown in the second chart above includes reinvested distributions, Fund expenses and management fees. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group reflects fund expenses and management fees; performance of a market index does not. Performance shown in the charts and table does not reflect deduction of taxes

a shareholder would pay on Fund distributions or sale of Fund shares.

Both charts above are logarithmic charts, which present the fluctuations in the value of the Fund’s share class and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In both charts, each segment represents a doubling, or 100% change, in the value of the investment.

Invesco Large Cap Relative Value Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable
sales charges


Class A Shares

Inception (1/2/96)	5.99	%

10 Years	1.18

5 Years	-1.72

1 Year	-3.51


Class B Shares

10 Years	1.15	%

5 Years	-1.69

1 Year	-3.77


Class C Shares

10 Years	0.99	%

5 Years	-1.35

1 Year	0.23


Class Y Shares

Inception (1/31/90)	8.18	%

10 Years	2.00

5 Years	-0.35

1 Year	2.30

Effective June 1, 2010, Class I and Class P shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class Y and Class A shares, respectively, of Invesco Large Cap Relative Value Fund. Returns shown above for Class Y and Class A shares are blended returns of the predecessor fund and Invesco Large Cap Relative Value Fund. Share class returns will differ from the predecessor fund because of different expenses.

Class B and Class C shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class P shares restated to reflect the higher 12b-1 fees applicable to Class B and Class C shares, respectively. Class B and Class C shares performance reflects any applicable fee waivers or expense reimbursements. The inception date of the predecessor fund’s Class P shares was January 2, 1996.

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (1/2/96)	5.91	%

10 Years	1.95

5 Years	-1.35

1 Year	8.14


Class B Shares

10 Years	1.91	%

5 Years	-1.33

1 Year	8.51


Class C Shares

10 Years	1.76	%

5 Years	-0.99

1 Year	12.51


Class Y Shares

Inception (1/31/90)	8.13	%

10 Years	2.78

5 Years	0.00

1 Year	14.69

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

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.96%, 1.71%, 1.71% and 0.71%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.01%, 1.76%, 1.76% and 0.76%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y

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.

Invesco Large Cap Relative Value Fund

Invesco Large Cap Relative Value Fund’s investment objective is to seek high total return by investing primarily in equity securities that the Adviser believes to be undervalued relative to the stock market in general at the time of purchase.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and foreign taxation issues.

n		REITs are susceptible to risk associated with the ownership of real estate and the real estate industry in general. In addition, REITs depends on specialized management skills, may not be diversified, may have less trading volume and may be subject to more abrupt or erratic price movements than the overall securities market. Investments in REITs may involve duplication of management fees and certain other expenses.

n		Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to the transaction; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.

n		Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in common stocks and other equity securities generally are affected by changes in the stock markets, which fluctuate substantially over time, sometimes suddenly and sharply.

n		Value stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. Value stocks can continue to be undervalued for long periods of time and may not ever realize their full value.

About indexes used in this report

n		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.

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

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

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

Other information

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

n		CPA^® and Certified Public Accountant^{^®}are trademarks owned by the American Institute of Certified Public Accountants.

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

n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		IVABX
Class B Shares		IVAHX
Class C Shares		IVAKX
Class Y Shares		MSIVX

Invesco Large Cap Relative Value Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks & Other Equity Interests–94.9%
Air Freight & Logistics–0.5%
FedEx Corp.		14,793	$	1,154,594

Apparel Retail–0.5%
Gap, Inc. (The)		65,324		1,103,322

Asset Management & Custody Banks–1.2%
Janus Capital Group, Inc.		61,726		560,472

State Street Corp.		64,372		2,258,170

				2,818,642

Automobile Manufacturers–0.6%
Ford Motor Co.^(b)		127,027		1,434,135

Cable & Satellite–2.8%
Comcast Corp. (Class A)		210,183		3,598,333

Time Warner Cable, Inc.		52,945		2,732,491

				6,330,824

Communications Equipment–1.2%
Cisco Systems, Inc.^(b)		133,735		2,681,387

Computer Hardware–2.6%
Dell, Inc.^(b)		193,898		2,282,180

Hewlett-Packard Co.		93,219		3,587,067

				5,869,247

Consumer Electronics–1.0%
Sony Corp. (ADR) (Japan)		83,634		2,340,916

Data Processing & Outsourced Services–1.1%
Western Union Co. (The)		156,240		2,449,843

Diversified Banks–1.4%
US Bancorp		63,264		1,315,891

Wells Fargo & Co.		81,295		1,914,497

				3,230,388

Diversified Chemicals–1.6%
Dow Chemical Co. (The)		73,378		1,788,222

PPG Industries, Inc.		29,084		1,914,600

				3,702,822

Diversified Support Services–0.6%
Cintas Corp.		50,068		1,276,233

Drug Retail–1.2%
Walgreen Co.		104,399		2,806,245

Electric Utilities–4.6%
American Electric Power Co., Inc.		146,034		5,171,064

Edison International		41,700		1,407,375

Entergy Corp.		24,306		1,916,285

FirstEnergy Corp.		52,125		1,904,126

				10,398,850

Food Distributors–1.0%
Sysco Corp.		81,758		2,247,527

Health Care Distributors–0.6%
Cardinal Health, Inc.		45,584		1,365,697

Health Care Equipment–1.1%
Covidien PLC (Ireland)		70,622		2,495,782

Home Improvement Retail–1.3%
Home Depot, Inc.		104,203		2,897,885

Human Resource & Employment Services–0.9%
Manpower, Inc.		28,134		1,195,695

Robert Half International, Inc.		43,583		940,521

				2,136,216

Hypermarkets & Super Centers–2.0%
Wal-Mart Stores, Inc.		89,831		4,504,126

Industrial Conglomerates–5.5%
General Electric Co.		498,622		7,220,047

Siemens AG (ADR) (Germany)		19,232		1,741,073

Tyco International Ltd. (Switzerland)		93,405		3,482,138

				12,443,258

Industrial Machinery–1.5%
Dover Corp.		38,502		1,723,350

Ingersoll-Rand PLC (Ireland)		50,491		1,642,472

				3,365,822

Insurance Brokers–3.3%
Marsh & McLennan Cos., Inc.		313,700		7,440,964

Integrated Oil & Gas–7.4%
ConocoPhillips		49,535		2,597,120

Exxon Mobil Corp.		37,669		2,228,498

Hess Corp.		54,029		2,714,957

Occidental Petroleum Corp.		68,244		4,987,272

Royal Dutch Shell PLC (ADR) (United Kingdom)		77,770		4,125,698

				16,653,545

Integrated Telecommunication Services–1.1%
Verizon Communications, Inc.		82,008		2,420,056

Internet Software & Services–3.6%
eBay, Inc.^(b)		252,136		5,859,640

Yahoo!, Inc.^(b)		178,347		2,332,779

				8,192,419

Investment Banking & Brokerage–1.8%
Charles Schwab Corp. (The)		224,158		2,860,256

Morgan Stanley		46,874		1,157,319

				4,017,575

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

9 Invesco Large Cap Relative Value Fund


	Shares		Value

IT Consulting & Other Services–1.0%
Amdocs Ltd.^(b)		83,721	$	2,196,002

Life & Health Insurance–0.7%
Principal Financial Group, Inc.		67,435		1,554,377

Managed Health Care–1.8%
UnitedHealth Group, Inc.		131,172		4,160,776

Motorcycle Manufacturers–0.4%
Harley-Davidson, Inc.		32,878		799,593

Movies & Entertainment–4.7%
Time Warner, Inc.		142,690		4,277,846

Viacom, Inc. (Class B)		202,166		6,352,056

				10,629,902

Office Services & Supplies–0.6%
Avery Dennison Corp.		40,244		1,308,735

Oil & Gas Equipment & Services–1.5%
Cameron International Corp.^(b)		19,898		731,849

Schlumberger Ltd. (Netherlands Antilles)		47,816		2,550,027

				3,281,876

Oil & Gas Exploration & Production–3.2%
Anadarko Petroleum Corp.		78,960		3,631,370

Devon Energy Corp.		35,199		2,121,796

Noble Energy, Inc.		19,691		1,374,038

				7,127,204

Other Diversified Financial Services–7.7%
Bank of America Corp.		373,544		4,650,623

Citigroup, Inc.^(b)		590,850		2,197,962

JPMorgan Chase & Co.		288,487		10,489,387

				17,337,972

Packaged Foods & Meats–3.6%
Kraft Foods, Inc. (Class A)		172,897		5,178,265

Unilever N.V. (NY Registered Shares) (Netherlands)		108,180		2,898,142

				8,076,407

Personal Products–1.1%
Avon Products, Inc.		83,127		2,418,996

Pharmaceuticals–7.9%
Abbott Laboratories		35,856		1,769,135

Bayer AG (ADR) (Germany)		38,030		2,327,303

Bristol-Myers Squibb Co.		167,443		4,366,913

Merck & Co., Inc.		103,185		3,627,985

Pfizer, Inc.		212,474		3,384,711

Roche Holding AG (ADR) (Switzerland)		66,375		2,258,323

				17,734,370

Property & Casualty Insurance–1.1%
Chubb Corp.		45,676		2,517,661

Regional Banks–2.8%
BB&T Corp.		55,690		1,231,863

Fifth Third Bancorp		102,432		1,131,873

PNC Financial Services Group, Inc.		79,283		4,040,262

				6,403,998

Semiconductor Equipment–0.3%
Lam Research Corp.^(b)		20,047		723,897

Semiconductors–1.0%
Intel Corp.		130,743		2,316,766

Soft Drinks–1.6%
Coca-Cola Co. (The)		34,369		1,921,915

Coca-Cola Enterprises, Inc.		60,151		1,711,897

				3,633,812

Wireless Telecommunication Services–1.9%
Vodafone Group PLC (ADR) (United Kingdom)		174,136		4,210,609

Total Common Stocks & Other Equity Interests (Cost $236,021,523)				214,211,273

Money Market Funds–4.8%
Liquid Assets Portfolio–Institutional Class^(c)		5,451,329		5,451,329

Premier Portfolio–Institutional Class^(c)		5,451,329		5,451,329

Total Money Market Funds (Cost $10,902,658)				10,902,658

TOTAL INVESTMENTS-99.7% (Cost $246,924,181)				225,113,931

OTHER ASSETS LESS LIABILITIES–0.3%				652,020

NET ASSETS–100.0%			$	225,765,951

Investment Abbreviation:


ADR		– American Depositary Receipt

Notes to Schedule of Investments:


^(a)		Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
^(b)		Non-income producing security.
^(c)		The money market fund and the Fund are affiliated by having the same investment adviser.

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

10 Invesco Large Cap Relative Value Fund

Statement of Changes in Net Assets

For the period January 1, 2010 through August 31, 2010 and years ended December 31, 2009 and 2008


	Eight
	months ended			Year ended			Year ended
	August 31,			December 31,			December 31,
	2010			2009			2008

Operations:
Net investment income	$	2,373,524		$	3,557,016		$	4,841,723

Net realized gain (loss)		13,747,427			(7,649,091	)		(13,816,204	)

Change in net unrealized appreciation (depreciation)		(32,466,179	)		58,943,307			(81,221,714	)

Net increase (decrease) in net assets resulting from operations		(16,345,228	)		54,851,232			(90,196,195	)

Distributions to shareholders from net investment income:
Class A		(302,493	)		(540,679	)		(751,903	)

Class B		(29	)		—			—

Class C		(29	)		—			—

Class Y		(1,543,619	)		(3,012,868	)		(4,045,874	)

Total distributions from net investment income		(1,846,170	)		(3,553,547	)		(4,797,777	)

Distributions to shareholders from net realized gains:
Class A		—			—			(205,494	)

Class Y		—			—			(1,014,350	)

Total distributions from net realized gains		—			—			(1,219,844	)

Share transactions–net:
Class A		(11,653,435	)		6,292,646			995,628

Class B		10,029			—			—

Class C		10,278			—			—

Class Y		(8,569,624	)		21,688,989			(6,971,865	)

Net increase (decrease) in net assets resulting from share transactions		(20,202,752	)		27,981,635			(5,976,237	)

Net increase (decrease) in net assets		(38,394,150	)		79,279,320			(102,190,053	)

Net assets:
Beginning of year		264,160,101			184,880,781			287,070,834

End of year (includes undistributed net investment income of $516,935, $(10,419) and $22,177, respectively)	$	225,765,951		$	264,160,101		$	184,880,781

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from December 31 to August 31.

Prior to June 1, 2010, the Fund operated as Morgan Stanley Large Cap Relative Value Fund (the “Acquired Fund”), an investment portfolio of Morgan Stanley Institutional Fund Inc. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

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

Information for the Acquired Fund’s — Class P and Class I shares prior to the Reorganization is included with Class A and Class Y shares, respectively, throughout this report.

13 Invesco Large Cap Relative Value Fund

The Fund’s investment objective is to seek high total return by investing primarily in equity securities that the Adviser believes to be undervalued relative to the stock market in general at the time of purchase.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income 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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net 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

14 Invesco Large Cap Relative Value Fund


		the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $150 million		0	.50%

Next $100 million		0	.45%

Next $100 million		0	.40%

Over $350 million		0	.35%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $541,712 to Morgan Stanley Investment Management Inc. (“MSIM”) based on the annual rates above of the Acquired Fund’s average daily net assets.

Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, and Class Y shares to 0.95%, 1.70%, 1.70% and 0.70%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

Prior to June 1, 2010, MSIM had voluntarily agreed 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 of Class I and Class P shares to 0.70% and 0.95%, respectively, of the Acquired Fund’s average daily net assets.

15 Invesco Large Cap Relative Value Fund

funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

For the period January 1, 2010 to August 31, 2010, the Adviser and MSIM waived advisory fees of $1,417 and $88,171, respectively. For the year ended December 31, 2009, MSIM waived advisory fees of $36,041.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, the Acquired Fund paid an administration fee of $91,733 to MSIM and JPMorgan Investor Services Co. For the period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian, fund accountant and provides certain administrative services to the Fund.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Prior to the Reorganization, the Acquired Fund paid $145,415 to Morgan Stanley Services Company Inc., which served as the Acquired Fund’s transfer agent. For the period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

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

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Morgan Stanley Distribution Inc. (“MSDI”) to serve as the distributor for the Class I and Class P shares. Pursuant to such agreements, for the period January 1, 2010 to August 31, 2010 the Acquired Fund paid $43,225 to MSDI.

For the period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information


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

During the period January 1, 2010 to August 31, 2010, there were no significant transfers between investment levels.


	Level 1		Level 2		Level 3		Total

Equity Securities	$	220,528,305	$	4,585,626	$	—	$	225,113,931

16 Invesco Large Cap Relative Value Fund

NOTE 4—Trustees’ and Officers’ Fees and Benefits

NOTE 5—Cash Balances

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

Tax Character of Distributions to Shareholders Paid During the Period January 1, 2010 to August 31, 2010 and the years ended December 31, 2009 and 2008:


	2010		2009		2008

Ordinary income	$	1,846,170	$	3,553,547	$	4,797,777

Long-term capital gain		—		—		1,219,844

Total distributions	$	1,846,170	$	3,553,547	$	6,017,621

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	516,935

Net unrealized appreciation (depreciation) — investments		(21,808,166	)

Capital loss carryforward		(17,107,199	)

Shares of beneficial interest		264,164,381

Total net assets	$	225,765,951

The Fund utilized $13,741,318 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	17,107,199


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

17 Invesco Large Cap Relative Value Fund

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the period January 1, 2010 to August 31, 2010 was $60,459,985 and $83,571,662, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	5,214,118

Aggregate unrealized (depreciation) of investment securities		(27,022,284	)

Net unrealized appreciation (depreciation) of investment securities	$	(21,808,166	)

Cost of investments for tax purposes is $246,922,097.

NOTE 8—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of expired capital loss carryforward, on August 31, 2010, undistributed net realized gain (loss) was increased by $23,591,242 and shares of beneficial interest decreased by $23,591,242. This reclassification had no effect on the net assets of the Fund.

NOTE 9—Share Information


	Summary of Share Activity

	Eight months ended						Years ended December 31,
	August 31, 2010^(a)						2009						2008
	Shares			Amount			Shares			Amount			Shares			Amount

Sold:
Class A		436,507		$	4,252,649			1,123,981		$	8,975,796			841,574		$	7,908,399

Class B^(b)		1,098			10,000			—			—			—			—

Class C^(b)		1,902			17,622			—			—			—			—

Class Y		3,039,187			29,758,628			8,322,250			66,094,588			3,121,756			32,040,380

Issued as reinvestment of dividends:
Class A		15,960			143,795			66,694			538,599			100,860			953,017

Class B^(b)		3			29			—			—			—			—

Class C^(b)		3			29			—			—			—			—

Class Y		82,064			740,212			371,731			3,003,453			528,952			5,041,743

Reacquired:
Class A		(1,702,393	)		(16,049,879	)		(405,848	)		(3,221,749	)		(742,491	)		(7,865,788	)

Class C^(b)		(804	)		(7,373	)		—			—			—			—

Class Y		(4,072,356	)		(39,068,464	)		(5,510,984	)		(47,409,052	)		(4,503,187	)		(44,053,988	)

Net increase (decrease) in share activity		(2,198,829	)	$	(20,202,752	)		3,967,824		$	27,981,635			(652,536	)	$	(5,976,237	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 95% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
^(b)		Commencement date of June 1, 2010.

18 Invesco Large Cap Relative Value Fund

NOTE 10—Financial Highlights

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


																														Ratio of			Ratio of
					Net gains																									expenses			expenses			Ratio of
					(losses) on																									to average			to average net			expenses			Ratio of net
	Net asset				securities						Dividends			Distributions																net assets			assets without			to average net			investment
	value,		Net		(both			Total from			from net			from net									Net asset					Net assets,		with fee waivers			fee waivers			assets excluding			income
	beginning		investment		realized and			investment			investment			realized			Total			Redemption			value, end		Total			end of period		and/or expenses			and/or expenses			non operating			to average			Portfolio
	of period		income^(a)		unrealized)			operations			income			gains			Distributions			Fees			of period		Return^(b)			(000s omitted)		absorbed			absorbed			expenses			net assets			turnover^(c)

Class A
Eight months ended 08/31/10	$	9.59	$	0.07	$	(0.69	)	$	(0.62	)	$	(0.06	)	$	—		$	(0.06	)	$	—		$	8.91		(6.53	)%	$	35,442		0.91	%^(d)		0.96	%^(d)		—	%		1.14	%^(d)		24	%
Year ended 12/31/09		7.84		0.11		1.75			1.86			(0.11	)		—			(0.11	)		0.00	^(e)		9.59		24.00	^(f)		50,149		0.94	^(g)		0.95	^(g)		0.94	^(g)		1.36	^(g)(h)		59
Year ended 12/31/08		11.85		0.18		(3.96	)		(3.78	)		(0.18	)		(0.05	)		(0.23	)		0.00	^(e)		7.84		(32.21	)		34,856		0.92	^(g)		0.92	^(g)		0.92	^(g)		1.81	^(g)		50
Year ended 12/31/07		12.18		0.19		0.15			0.34			(0.18	)		(0.49	)		(0.67	)		0.00	^(e)		11.85		2.72			50,287		0.92	^(g)		0.92	^(g)		0.92	^(g)		1.48	^(g)		31
Year ended 12/31/06		11.09		0.17		1.61			1.78			(0.17	)		(0.52	)		(0.69	)		0.00	^(e)		12.18		16.38			63,300		0.93			0.93			0.93			1.44			33
Year ended 12/31/05		10.51		0.12		0.91			1.03			(0.12	)		(0.33	)		(0.45	)		—			11.09		9.81			101,499		0.93			0.93			0.93			1.10			46

Class B
Eight months ended 08/31/10⁽ⁱ⁾		9.11		0.01		(0.20	)		(0.19	)		(0.03	)		—			(0.03	)		—			8.89		(2.13	)		10		1.62	^(d)		1.62	^(d)		—			0.43	^(d)		24

Class C
Eight months ended 08/31/10⁽ⁱ⁾		9.11		0.01		(0.20	)		(0.19	)		(0.03	)		—			(0.03	)		—			8.89		(2.13	)		10		1.62	^(d)		1.62	^(d)		—			0.43	^(d)		24

Class Y
Eight months ended 08/31/10		9.60		0.09		(0.70	)		(0.61	)		(0.07	)		—			(0.07	)		—			8.92		(6.41	)		190,305		0.66	^(d)		0.71	^(d)		—			1.39	^(d)		24
Year ended 12/31/09		7.85		0.13		1.75			1.88			(0.13	)		—			(0.13	)		0.00	^(e)		9.60		24.28	^(f)		214,011		0.69	^(g)		0.70	^(g)		0.69	^(g)		1.61	^(g)(h)		59
Year ended 12/31/08		11.86		0.21		(3.96	)		(3.75	)		(0.21	)		(0.05	)		(0.26	)		0.00	^(e)		7.85		(32.01	)		150,025		0.67	^(g)		0.67	^(g)		0.67	^(g)		2.06	^(g)		50
Year ended 12/31/07		12.20		0.21		0.16			0.37			(0.22	)		(0.49	)		(0.71	)		0.00	^(e)		11.86		2.90			236,784		0.67	^(g)		0.67	^(g)		0.67	^(g)		1.71	^(g)		31
Year ended 12/31/06		11.10		0.20		1.62			1.82			(0.20	)		(0.52	)		(0.72	)		0.00	^(e)		12.20		16.47			211,904		0.68			0.68			0.68			1.71			33
Year ended 12/31/05		10.52		0.15		0.90			1.05			(0.14	)		(0.33	)		(0.47	)		—			11.10		10.07			102,973		0.68			0.68			0.68			1.36			46


^(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)		Ratios are annualized and based on average daily net assets (000’s omitted) of $49,438, $10, $12 and $215,879 for Class A, Class B, Class C and Class Y shares, respectively.
^(e)		Amount is less than $0.005 per share.
^(f)		Performance was positively impacted by approximately 0.26% due to the receipt of proceeds from the settlements of class action suits involving primarily two of the Fund’s past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A and Class Y shares would have been approximately 23.74% and 24.02%, respectively.
^(g)		The ratios reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is 0.01%, 0.01% and less than 0.005% for the years ended December 31, 2009, 2008 and 2007, respectively.
^(h)		Ratio of net investment income to average net assets without fee waivers and/or expenses absorbed was 1.35% and 1.60% for the year ended December 31, 2009 for Class A and Class Y shares, respectively.
⁽ⁱ⁾		Commencement date of June 1, 2010.

NOTE 11—Change in Independent Registered Public Accounting Firm

19 Invesco Large Cap Relative Value Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco Large Cap Relative Value Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Large Cap Relative Value Fund (formerly known as Morgan Stanley Large Cap Relative Value Fund, an investment portfolio of Morgan Stanley Institutional Fund, Inc.; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended December 31, 2009 and prior were audited by other independent auditors whose report dated February 25, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

20 Invesco Large Cap Relative Value Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period^2,3		Ratio
A	$	1,000.00	$	928.00	$	4.37	$	1,020.67	$	4.58		0.90	%

B		1,000.00		978.70		4.04		1,017.04		8.24		1.62

C		1,000.00		978.70		4.04		1,017.04		8.24		1.62

Y		1,000.00		929.10		3.16		1,021.93		3.31		0.65


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010 (as of close of business June 1, 2010 through August 31, 2010 for the Class B and Class C shares), 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 184/365 to reflect the most recent fiscal half year. For the Class B and Class C shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 92 (as of close of business June 1, 2010 through August 31, 2010)/365. Because the Class B and Class C shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.
³	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in Class B and Class C shares of the Fund and other funds because such data is based on a full six month period.

21 Invesco Large Cap Relative Value Fund


	Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Large Cap Relative Value Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

22 Invesco Large Cap Relative Value Fund

The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

23 Invesco Large Cap Relative Value Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


		MS-LCRV-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

Invesco New York Tax-Free Income Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Invesco New York Tax-Free Income Fund

Management’s Discussion of Fund Performance

Performance summary

All share classes of Invesco New York Tax-Free Income Fund posted positive returns during the eight-month reporting period ended August 31, 2010. The Fund’s Class A shares, at net asset value (NAV), outperformed both the Fund’s broad market and style-specific benchmark, the Barclays Capital New York Exempt Index, and the Fund’s peer group index, the Lipper New York Municipal Debt Funds Index. The Fund’s focus on the long-end of the yield curve and overweight positions in lower quality securities as well as non-rated issues were the main contributors to relative outperformance at NAV versus the Barclays Capital New York Exempt Index.

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

Fund vs. Indexes


Class A Shares	7.52	%

Class B Shares	7.52

Class C Shares	7.20

Class Y Shares	7.74

Barclays Capital New York Exempt Index^▼ (Broad Market/Style-Specific Index)	6.65

Lipper New York Municipal Debt Funds Index^■ (Peer Group Index)	7.12


^▼	Invesco, IDC via FactSet; ^■Lipper Inc.

How we invest

The Fund will normally invest at least 80% of its assets in securities that pay interest exempt from federal, New York state and New York City income taxes or other local income taxes. We generally invest the Fund’s assets in investment grade, New York municipal obligations. These municipal obligations will have the following ratings at the time of purchase:

n		Municipal bonds–within the four highest grades by Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s Ratings Group (S&P), or Fitch Ratings (Fitch)

n		Municipal notes–within the two highest grades or, if not rated, have outstanding bonds within the four highest grades by Moody’s, S&P or Fitch

Municipal commercial paper–within the highest grade by Moody’s, S&P or Fitch We may also invest in unrated securities, which we judge to be of comparable quality to the securities described above. Additionally, we may invest up to 5% of the Fund’s net assets in municipal obligations rated below investment grade (commonly known as junk bonds) or, if unrated, of comparable quality based on our determination.

We buy and sell New York municipal securities with a view toward seeking a high level of current income exempt from federal and New York state and New York city income taxes or other local income taxes. In selecting securities for purchase and sale, we use our research capabilities to identify and monitor investment

opportunities. In conducting research and analysis, we consider a number of factors, including general market and economic conditions and credit and interest rate risk.

Portfolio securities are typically sold when our assessment of any of these factors materially change. Measures of interest rate risk that we evaluate include duration, coupon, maturity and call protection. Measures of credit risk evaluated include individual issuer analysis, sector weightings, geographic distribution and quality spreads.

Market conditions and your Fund

Market conditions during the eight-month period covered in this report were influenced by two broad themes: private sector recovery and concerns over sovereign creditworthiness. In the U.S. and most of the developed world, a gradual and somewhat lackluster economic recovery continued, with central banks keeping interest rates at extremely low levels, and few of them withdrawing their quantitative easing measures. This has helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. Recently, however, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for

Portfolio Composition^†

By credit quality, based on total investments


AAA	13.7	%

AA+	4.6

AA	9.2

AA-	13.8

A+	13.4

A	4.2

A-	0.8

BBB+	9.0

BBB	7.6

BBB-	5.6

BB+	3.8

BB-	0.5

N/A	13.0

Non-Rated	1.8

Cash	-1.0

Top 10 Holdings*


1.	New York State Dormitory Authority – Cornell University	7.0	%

2.	New York State Dormitory Authority – State University	3.2

3.	Puerto Rico Highway & Transportation Authority	3.1

4.	New York City Transitional Finance Authority	3.0

5.	New York City Health & Hospital Corp.	3.0

6.	New York City Industrial Development Agency	2.9

7.	New York State Dormitory Authority – Suffolk County	2.8

8.	City of New York	2.4

9.	Long Island Power Authority	2.3

10.	New York City Housing Development Corp.	2.0



Total Net Assets	$72.2 million

Total Number of Holdings*		97

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


†		Source: Standard and Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non-Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard and Poor’s rating methodology, please visit www.standardandpoors.com and select ‘Understanding Ratings’ under Rating Resources on the homepage.

*		Excluding cash equivalent holdings.

Invesco New York Tax-Free Income Fund

Greece and other southern euro zone countries) and became a focal point of investor concern in the first half of 2010.

In the U.S., economic recovery was present, although uneven and possibly slowing, as stubbornly high unemployment continued to weigh on the U.S. economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 1.7% in the second quarter of 2010. In the first quarter, real GDP increased 3.7%.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² The Fed recently described its view of the U.S. economy: “Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.”² Consequently, it was widely expected that the Fed would continue to keep rates low for an extended period.

Sector performance was driven by credit quality spread tightening largely a result of continued flows into the municipal market combined with less tax-exempt issuance. As a result, BBB-rated and lower credit quality bonds outperformed. Fund flows continued to remain strong after a record 2009. In addition, the new issuance during the reporting period was about 1.5% ahead of last year’s pace: at $261.0 billion versus 257.3 billion.³ However, approximately 30% of supply since the beginning of the year was in the form of taxable Build America Bonds.³

Historically, the state of New York has benefited from its broad-based and wealthy economy. However, the economic slowdown and concerns on Wall Street, as well as the volatility in the financial markets posed challenges for the state and its financial position. Like many states, New York is currently looking for solutions to compensate for declines in revenues, particularly falling personal income taxes.

The Fund generated positive absolute returns for the period. In terms of yield curve positioning, an overweight to the long-end of the curve contributed to relative returns versus the Barclays Capital New York Exempt Index as this part of the curve generated the highest returns over the reporting period.

As discussed earlier, during the reporting period lower rated tax-exempt bonds experienced significant price increases relative to high quality issues. An overweight exposure to BBB and non-rated bonds was a positive contributor to relative and absolute returns.

At a sector level, the Fund’s underweight position in the tax-supported sector, specifically local general obligation bonds, and, to a lesser extent, the dedicated tax sector, was the primary performance detractor on a relative basis. At the industry level, we were overweight hospital revenue bonds, which contributed to positive relative returns. However, we continued to monitor the health care sector in light of recent health care reform, and we continued to diversify out of the sector by selling weaker issuers on analyst recommendations, including swapping deep discount hospital bonds for new issue higher coupon bonds and university revenue bonds.

Our overweight exposure to industrial development revenue/pollution control revenue bonds over the reporting period also contributed to relative performance. However, our underweight in the transportation sector dampened relative returns.

We use inverse floating rate securities in Invesco New York Tax-Free Income Fund to help manage duration, yield curve exposure and credit exposure, and to potentially enhance yield. Over the reporting period, the exposure to inverse floating rate securities within the fund contributed positively to the Fund return.

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

1		Bureau of Economic Analysis

2		U.S. Federal Reserve

3		Barclays Capital

See important Fund and index disclosures later in this report.

Mark Paris

Portfolio manager, is manager of Invesco New York Tax-Free Income Fund. Mr. Paris joined Invesco in 2010. He earned a B.B.A. in finance from the City University of New York.

Robert Stryker

Chartered Financial Analyst, portfolio manager, is manager of Invesco New York Tax-Free Income Fund. Mr. Stryker joined Invesco in 2010. He earned a B.S. in finance from the University of Illinois, Chicago.

Julius Williams

Portfolio manager, is manager of Invesco New York Tax-Free Income Fund. Mr. Williams joined Invesco in 2010. Mr.

Williams earned a B.A. in economics and sociology and an M.E. in educational psychology from the University of Virginia.

Invesco New York Tax-Free Income Fund



Average Annual Total Returns
As of 8/31/10, including maximum applicable sales charges

Class A Shares

Inception (7/28/97)	4.66	%

10 Years	4.99

5 Years	3.88

1 Year	6.25


Class B Shares

Inception (4/25/85)	6.49	%

10 Years	5.16

5 Years	4.63

1 Year	6.53


Class C Shares

Inception (7/28/97)	4.43	%

10 Years	4.85

5 Years	4.33

1 Year	9.91


Class Y Shares

Inception (7/28/97)	5.20	%

10 Years	5.62

5 Years	5.15

1 Year	11.76

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco New York Tax-Free Income Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco New York Tax-Free Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.90%, 0.89%, 1.40% and 0.65%, respectively.¹ The total annual Fund



Average Annual Total Returns
As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.

Class A Shares

Inception (7/28/97)	4.42	%

10 Years	4.89

5 Years	3.23

1 Year	6.44


Class B Shares

Inception (4/25/85)	6.38	%

10 Years	5.05

5 Years	4.01

1 Year	6.75


Class C Shares

Inception (7/28/97)	4.20	%

10 Years	4.75

5 Years	3.67

1 Year	10.17


Class Y Shares

Inception (7/28/97)	4.97	%

10 Years	5.51

5 Years	4.51

1 Year	12.03

operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.13%, 1.12%, 1.63% and 0.88%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y 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.

Invesco New York Tax-Free Income Fund

Invesco New York Tax-Free Income Fund’s investment objective is to provide a high level of current income exempt from federal, New York state and New York city income tax or other local income taxes, consistent with the preservation of capital.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund.

		Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration of financial health may result in a reduction of the credit rating of the issuer’s securities and may lead to the issuer’s inability to honor its contractual obligations, including making timely payment of interest and principal.

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

n		Leases and installment purchase or conditional sale contract (which may provide for title to be leased asset to pass eventually to the issuer) have developed as a means for governmental issuers to acquire property and equipment without the necessity of complying with the constitutional and statutory requirements generally applicable for the issuance of debt. Certain lease obligations contain non-appropriation for the issuance of debt. Certain lease obligations contain non-appropriation clauses that provide that the governmental issuer has no obligation to make future payments under the lease or contract unless money is appropriated for that purpose by the appropriate legislative body on an annual or other

		periodic basis. Consequently, continued lease payments on those lease obligations containing non-appropriation clauses are dependent on future legislative actions. If these legislative actions do not occur, the holders of the lease obligation may experience difficulty in exercising their rights, including deposition of the property.

n		The issuers of private activity bonds in which the Fund may invest may be negatively impacted by conditions affecting either the general credit of the user of the private activity project or the project itself. Conditions such as regulatory and environmental restrictions and economic downturns may lower the need for these facilities and the ability of the uses of the project to pay for the facilities. This could cause a decline in the Fund’s value.

n		The inverse floating rate municipal obligations in which the fund may invest include derivative instruments such as residual interest bonds (RIBs) or tender option bonds (TOBs). Such instruments are typically created by a special purpose trust that holds long-term fixed rate bonds and sells two classes of beneficial interests: short-term floating rate interests, which are sold to third-party investors, and inverse floating residual interests, which are purchased by the Fund. There short-term floating rate interests have first priority on the cash flow from the bond held by the special purpose trust and the fund is paid the residual cash flow from the bond held by the special purpose trust.

n		The Fund may invest up to 20% of its total assets in securities subject to the federal alternative minimum tax.

About indexes used in this report

n		The Barclays Capital New York Exempt Index an unmanaged index that tracks the performance of New York issued municipal bonds rated at least Baa or BBB by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation, respectively and with maturities of 2 years or greater.

n		The Lipper New York Municipal Debt Fund Index is an unmanaged index considered representative of New York municipal debt funds tracked by Lipper.

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

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

Other information

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

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		NYFAX
Class B Shares		NYFBX
Class C Shares		NYFCX
Class Y Shares		NYFDX

Invesco New York Tax-Free Income Fund

Schedule of Investments

August 31, 2010


						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value

Municipal Obligations–(106.6%)
Guam–(0.4%)
Guam Power Authority, Ser 2010 A		5.50	%		10/01/40	$	185	$	185,944

Territory of Guam Section 30, Ser A		5.625	%		12/01/29		135		143,540

									329,484

New York–(96.7%)
Albany County Airport Authority, Ser 2010 A (AGM Insd)^(a)		5.00	%		12/15/25		500		550,785

Brooklyn Arena Local Development Corp., Ser 2009^(b)		0.00			07/15/34		1,510		346,273

Brooklyn Arena Local Development Corp., Ser 2009		6.25	%		07/15/40		200		214,656

Brooklyn Arena Local Development Corp., Ser 2009		6.375	%		07/15/43		200		214,804

Chautauqua County Industrial Development Agency, Dunkirk Power Project		5.875	%		04/01/42		425		444,129

City of New York, Ser 2008 F1		5.50	%		11/15/28		750		865,687

City of New York, Subser 1993 A-10^(c)(d)(e)		0.24	%		08/01/16		180		180,000

City of New York, Subser 2005 E-2^(c)(d)(e)		0.25	%		08/01/34		600		600,000

City of New York, Subser 2006 I-8^(c)(d)(e)		0.25	%		04/01/36		1,700		1,700,000

City of New York, Subser 2008 G-1		6.25	%		12/15/35		400		477,064

City of New York, Subser 2008 I-1		5.00	%		02/01/25		405		456,054

City of New York, Subser 2009 I-1		5.25	%		04/01/32		900		1,002,807

City of Troy Capital Resource Corp., Rensselaer Polytechnic Ser 2010 A		5.00	%		09/01/30		500		524,060

County of Nassau, Ser 2009 (AGC Insd)^(a)		5.00	%		10/01/27		675		766,962

Essex County Industrial Development Agency, Ser A (AMT)		5.20	%		12/01/23		500		500,415

Long Island Power Authority, Ser 2000 A (AGM Insd)^(a)(b)		0.00	%		06/01/18		2,000		1,653,500

Long Island Power Authority, Ser 2003 C (CIFG Insd)^(a)		5.25	%		09/01/29		405		479,702

Madison County Industrial Development Agency, Colgate University Project Ser 2003 B		5.00	%		07/01/33		1,000		1,028,510

Metropolitan Transportation Authority, Dedicated Tax Refg Ser 2002 A (AGM Insd)^(a)		5.25	%		11/15/24		500		539,665

Metropolitan Transportation Authority, Dedicated Tax Ser 2009 B		5.00	%		11/15/34		500		539,760

Metropolitan Transportation Authority, Ser 2009 B		5.25	%		11/15/27		615		711,094

Nassau County Industrial Development Agency, Ser A		5.875	%		01/01/18		500		511,510

Nassau County Tobacco Settlement Corp., Ser 2006		5.25	%		06/01/26		1,000		955,540

New York City Health & Hospital Corp., Health Ser 2003 A (AMBAC Insd)^(a)		5.25	%		02/15/22		2,000		2,159,380

New York City Housing Development Corp., East Midtown Project Ser 1978		6.50	%		11/15/18		1,327		1,331,223

New York City Housing Development Corp., Ruppert Project Project Ser 1978		6.50	%		11/15/18		1,384		1,457,947

New York City Industrial Development Agency, 7 World Trade Center, LLC Ser 2005 A		6.25	%		03/01/15		425		426,551

New York City Industrial Development Agency, Airis JFK I LLC Ser 2001 A (AMT)		5.50	%		07/01/28		1,000		905,790

New York City Industrial Development Agency, IAC/Interactive Corp., Ser 2005		5.00	%		09/01/35		625		588,475

New York City Industrial Development Agency, New York Stock Exchange Refg Ser 2009		5.00	%		05/01/25		500		548,185

New York City Industrial Development Agency, Polytechnic University Refg Ser 2007 (ACA Insd)^(a)		5.25	%		11/01/37		500		486,560

New York City Industrial Development Agency, Queens Baseball Stadium Ser 2006 (AMBAC Insd)^(a)		5.00	%		01/01/46		1,250		1,172,337

New York City Industrial Development Agency, Staten Island University Hospital		6.375	%		07/01/31		420		424,683

New York City Industrial Development Agency, Terminal One Group Association Ser 2005 (AMT)		5.50	%		01/01/24		2,000		2,085,100

New York City Municipal Water Finance Authority, Water and Sewer System Second General Resolution Ser 2009 FF		5.50	%		06/15/40		1,000		1,139,990

New York City Transitional Finance Authority, 2010 Subser A-1^(f)		5.00	%		05/01/30		1,965		2,199,187

New York City Transitional Finance Authority, Building Aid, Ser 2009 S-3		5.25	%		01/15/27		500		565,525

New York City Transitional Finance Authority, Building Aid, Ser 2009 S-3		5.25	%		01/15/39		500		545,745

New York City Transitional Finance Authority, Ser 2009 2		6.00	%		07/15/33		350		410,393

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

9 Invesco New York Tax-Free Income Fund


						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value

New York–(continued)

New York City Transitional Finance Authority, Ser 2009 S-5		5.00	%		01/15/31	$	595	$	635,859

New York Counties Tobacco Trust IV, Ser 2005 A		5.00	%		06/01/45		1,000		753,730

New York Liberty Development Corp., Ser 2010 3		6.375	%		07/15/49		500		537,350

New York Mortgage Agency, Homeowner Ser 143 (AMT)		4.90	%		10/01/37		975		976,043

New York State Dormitory Authority, Brooklyn Law School Ser 2009		5.75	%		07/01/33		660		729,934

New York State Dormitory Authority, Catholic Health Long Island–St Francis Hospital Ser 2004		5.00	%		07/01/27		1,000		1,020,890

New York State Dormitory Authority, Cornell University–Ser 2009 A^(f)		5.00	%		07/01/35		4,725		5,053,340

New York State Dormitory Authority, Court Facilities Lease Ser 2005 A (AMBAC Insd)^(a)		5.50	%		05/15/27		710		860,200

New York State Dormitory Authority, Court Facilities Lease Ser 2005 A (AMBAC Insd)^(a)		5.50	%		05/15/31		555		649,861

New York State Dormitory Authority, Fordham University Ser 2008 B (AGC Insd)^(a)		5.00	%		07/01/33		500		537,665

New York State Dormitory Authority, Manhattan College Ser 2007 A (RADIAN Insd)^(a)		5.00	%		07/01/41		400		394,400

New York State Dormitory Authority, Manhattan Marymount 2009		5.25	%		07/01/29		500		519,475

New York State Dormitory Authority, Mental Health Services Facilities Improvement Ser A (AGM Insd)^(a)		5.00	%		02/15/27		500		546,465

New York State Dormitory Authority, Montefiore Hospital–FHA Insured Mtge Ser 2004 (NATL-RE & FGIC Insd)^(a)		5.00	%		08/01/29		1,000		1,037,620

New York State Dormitory Authority, New York School District Ser 2008 D (AGC Insd)^(a)		5.75	%		10/01/24		500		585,890

New York State Dormitory Authority, New York School District Ser 2009 C (AGC Insd)^(a)		5.00	%		10/01/24		500		568,330

New York State Dormitory Authority, New York University Ser 1 (CR) (BHAC & AMBAC Insd)^(a)		5.50	%		07/01/31		680		820,189

New York State Dormitory Authority, New York University Ser 2008		5.00	%		07/01/38		660		703,289

New York State Dormitory Authority, North Shore Long Island Jewish, Ser 2009 A		5.50	%		05/01/37		500		528,900

New York State Dormitory Authority, Orange Regional Medical Center Ser 2008		6.125	%		12/01/29		500		517,770

New York State Dormitory Authority, School District Ser 2002 C (NATL-RE Insd)^(a)		5.25	%		04/01/21		1,000		1,085,450

New York State Dormitory Authority, School District Ser 2002 E (NATL-RE Insd)^(a)		5.50	%		10/01/17		1,000		1,081,880

New York State Dormitory Authority, St Francis College Ser 2010		5.00	%		10/01/40		350		356,934

New York State Dormitory Authority, St Josephs College Ser 2010		5.25	%		07/01/35		500		517,440

New York State Dormitory Authority, State University Ser 1993 A		5.25	%		05/15/15		2,000		2,292,500

New York State Dormitory Authority, Suffolk County Judicial Ser 1986 (ETM)		7.375	%		07/01/16		1,665		1,990,524

New York State Dormitory Authority, Winthrop South Nassau University Health Ser 2003 B		5.50	%		07/01/23		750		774,022

New York State Energy Research & Development Authority, Ser 1991 B^(c)(d)(g)		13.076	%		07/01/26		700		702,968

New York State Environmental Facilities Corp., Ser 2010 C		5.00	%		10/15/39		400		438,536

New York State Environmental Facilities Corp., State Clean Water and Drinking Water, Ser 2005 B		5.50	%		04/15/35		310		387,178

New York State Environmental Facilities Corp., State Clean Water and Drinking Water, Ser 2009 A^(f)		5.13	%		06/15/38		900		985,878

New York State Thruway Authority, Ser 2007 H (NATL-RE & FGIC Insd)^(a)		5.00	%		01/01/29		1,000		1,074,470

New York State Thruway Authority, Ser 2009 B		5.00	%		04/01/29		500		551,860

New York State Urban Development Corp., Service Contract Ref Ser 2008 B		5.25	%		01/01/24		750		843,585

North Syracuse Central School District, Onondaga County Ref Ser 2009 A (NATL-RE & FGIC Insd)^(a)		5.00	%		06/15/23		935		1,105,058

Oneida County Industrial Development Agency, St. Elizabeth Medical Center, Ser A		5.875	%		12/01/29		425		425,081

Onondaga Civic Development Corp., Le Moyne College Project Ser 2010		5.375	%		07/01/40		440		453,006

Seneca County Industrial Development Agency, Seneca Meadows, Inc. Ser 2008 (AMT)^(h)		6.625	%		10/01/35		350		354,564

Suffolk County Industrial Development Agency, Jeffersons Ferry Ser 2006		5.00	%		11/01/28		1,000		970,880

Town of Hempstead Local Development Corp., Molloy College, Ser 2009		5.75	%		07/01/39		545		584,720

Triborough Bridge & Tunnel Authority, Ser 2008		4.75	%		11/15/29		200		215,836

Triborough Bridge & Tunnel Authority, Ser 2008		5.00	%		11/15/37		500		534,385

Trust for Cultural Resources, Carnegie Hall Ser A		5.00	%		12/01/39		350		369,061

TSASC, Inc., Tobacco Settlement Ser 2006-1		5.125	%		06/01/42		475		384,964

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

10 Invesco New York Tax-Free Income Fund


						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value

New York–(continued)

United Nations Development Corp., Ser 2009 A		5.00	%		07/01/26	$	810	$	898,023

Westchester Tobacco Asset Securitization, Ser 2005		5.125	%		06/01/45		1,000		763,840

									69,829,891

Puerto Rico–(8.2%)
Puerto Rico Commonwealth Infrastructure Financing Authority, Ser 2005 C (AMBAC Insd)^(a)		5.50	%		07/01/27		275		304,788

Puerto Rico Electric Power Authority, Ser 2007 TT		5.00	%		07/01/37		1,000		1,024,930

Puerto Rico Electric Power Authority, Ser WW		5.25	%		07/01/33		500		524,495

Puerto Rico Highway & Transportation Authority, Refg Ser 1993 X		5.50	%		07/01/15		2,000		2,219,140

Puerto Rico Infrastructure Financing Authority, Ser 2000 A⁽ⁱ⁾		5.375	%		10/01/10		1,000		1,014,320

Puerto Rico Sales Tax Financing Corp., Ser 2009 A⁽ⁱ⁾		5.00	%		08/01/39		345		360,076

Puerto Rico Sales Tax Financing Corp., Ser 2010 A^(b)		0.00	%		08/01/34		1,000		239,770

Puerto Rico Sales Tax Financing Corp., Ser 2010 A		5.375	%		08/01/39		215		227,105

									5,914,624

Virgin Islands–(1.3%)
Virgin Islands Public Finance Authority, Matching Fund Loan Diago A		6.625	%		10/01/29		345		391,140

Virgin Islands Public Finance Authority, Matching Fund Loan Note-Senior Lien A		5.00	%		10/01/29		500		516,380

									907,520

TOTAL INVESTMENTS–106.6% (Cost $72,170,313)									76,981,519

OTHER ASSETS LESS LIABILITIES–0.4%									316,396

Floating Rate Note and Dealer Trusts Obligations Related to Securities Held–(7.0)
Notes with interest rates of 0.31% at 08/31/10 and contractual maturities of collateral ranging from 05/01/28 to 06/15/38 (See Note 1I)^(j)									(5,065,000	)

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS–100.0%								$	72,232,915

Investment Abbreviations:


ACA		– ACA Financial Guaranty Corp.
AGC		– Assured Guaranty Corp.
AGM		– Assured Guaranty Municipal Corp.
AMBAC		– AMBAC Assurance Corp.
AMT		– Alternative Minimum Tax
BHAC		– Berkshire Hathaway Assurance Corp.
CIFG		– CIFG Assurance North America, Inc.
CR		– Custodial Receipts
ETM		– Escrowed to Maturity
FGIC		– Financial Guaranty Insurance Co.
FHA		– Federal Housing Administration
NATL-RE		– National Public Finance Guarantee Corp.

Notes to Schedule of Investments:


^(a)		Principal and/or interest payments are secured by the bond insurance company listed.
^(b)		Capital appreciation bond.
^(c)		Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2010.
^(d)		Security is considered a cash equivalent.
^(e)		Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
^(f)		Underlying security related to Special Purpose Trusts entered into by the Fund (See Note 1I).
^(g)		Current coupon rate for inverse floating rate municipal obligations (See Note 9). This rate resets periodically as the auction rate on the related security changes. Positions in inverse floating rate municipal obligations have a total value of $702,968 which represents 1.0% of net assets applicable to common shareholders.
^(h)		Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at August 31, 2010 was $354,564 which represented 0.5% of the Fund’s Net Assets.
⁽ⁱ⁾		Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
^(j)		Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at August 31, 2010. At August 31, 2010, the Fund’s investments with a value of $8,238,405 are held by the Dealer Trusts and serve as collateral for the $5,065,000 in floating rate note and dealer trust obligations outstanding at that date.

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

11 Invesco New York Tax-Free Income Fund

Statements of Changes in Net Assets

For the period ended January 1, 2010 through August 31, 2010 and the years ended December 31, 2009 and 2008, respectively.


	Eight Months Ended			Year ended			Year ended
	August 31,			December 31,			December 31,
	2010			2009			2008

Operations:
Net investment income	$	2,046,892		$	3,229,417		$	3,461,845

Net realized gain (loss)		366,947			(956,363	)		1,788,426

Change in net unrealized appreciation (depreciation)		2,704,990			7,884,639			(8,753,239	)

Net increase (decrease) in net assets resulting from operations		5,118,829			10,157,693			(3,502,968	)

Distributions to shareholders from net investment income:
Class A shares		(1,348,666	)		(2,069,014	)		(2,147,722	)

Class B shares		(399,841	)		(691,933	)		(726,603	)

Class C shares		(82,371	)		(128,410	)		(113,961	)

Class Y shares		(186,410	)		(305,375	)		(449,044	)

Total Dividends		(2,017,288	)		(3,194,732	)		(3,437,330	)

Distributions to shareholders from net realized gains:
Class A shares		—			(999,885	)		(562,640	)

Class B shares		—			(334,293	)		(189,157	)

Class C shares		—			(72,059	)		(33,640	)

Class Y shares		—			(139,005	)		(97,233	)

Total Distributions from net realized gains		—			(1,545,242	)		(882,670	)

Net increase (decrease) from in net assets resulting from share transactions		(1,215,025	)		(1,870,657	)		(4,956,603	)

Net increase (decrease) in net assets		1,886,516			3,547,062			(12,779,571	)

Net Assets:
Beginning of year		70,346,399			66,799,337			79,578,908

End of year (Includes undistributed net investment income of $240,927, $212,455 and $191,563, respectively)	$	72,232,915		$	70,346,399		$	66,799,337

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

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

On August 31, 2010, the Fund’s fiscal year-end changed from December 31 to August 31.

Prior to June 1, 2010, the Fund operated as Morgan Stanley New York Tax-Free Income Fund (the “Acquired Fund”). The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

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

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

The Fund’s investment objective is to provide as high a level of current income exempt from federal and California income tax, as is consistent with the preservation of capital.

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

14 Invesco New York Tax-Free Income Fund


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices and may reflect appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
		Securities for which market quotations either are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
		The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
		Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C.		Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.		Distributions — Distributions from income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

15 Invesco New York Tax-Free Income Fund


I.		Floating Rate Obligations Related to Securities Held — The Fund enters into transactions in which it transfers to Special Purpose Trusts established by a Broker Dealer (“Dealer Trusts”) fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The Fund may enter into shortfall agreements with the Dealer Trusts which commit the Fund to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption “Floating rate note and dealer trust obligations” on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption “Interest” and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts under the caption “Interest and residual trust expenses” on the Statement of Operations. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The average floating rate notes outstanding and average annual interest and fee rate related to residual interests during the eight months ended August 31, 2010 were $4,993,333 and 0.96%, respectively.
J.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
K.		Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
		Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
		There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $500 million		0	.47%

Over $500 million		0	.445%

Prior to the Reorganization, the Acquired Fund paid an advisory fee of $135,466 to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

Effective on the Reorganization date, the Adviser has contractually agreed, through June 30, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 0.90%, 1.40%, 1.40% and 0.65% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay

16 Invesco New York Tax-Free Income Fund

because of an expense offset arrangement. Unless the Board of Trustees and the Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

Prior to the Reorganization, MSIA and Morgan Stanley Services Company Inc. (“MSSC”) had voluntarily agreed to cap the Acquired Fund’s operating expenses at 0.65% of the average daily net assets of the Acquired Fund.

For period January 1, 2010 to August 31, 2010, the Adviser and MSIA waived advisory fees of $29,770 and $49,108, respectively. For the year ended December 31, 2009, MSIA waived advisory fees of $146,552.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, the Acquired Fund paid an administration fee of $22,904 to MSSC. For the period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Prior to the Reorganization, the Acquired Fund paid $11,653 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Morgan Stanley Distributors Inc. (“MSDI”) to serve as the distributor for the Class A, Class B and Class C shares. Pursuant to such agreements, for the period January 1, 2010 to August 31, 2010 the Acquired Fund paid $14,447 to MSDI.

For the period January 1, 2010 to August 31, 2010 and the year ended December 31, 2009, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees. For the year ended December 31, 2009, MSDI waived $21,251.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $901 in front-end sales commissions from the sale of Class A shares and $5, $418 and $0 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period January 1 to May 31, 2010, MSDI retained $4,825 in front-end sales commissions from the sale of Class A shares and $58, $254 and $2,696 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the year ended December 31, 2009, MSDI retained $19,797 in front-end sales commissions from the sale of Class A shares and $94, $5,033 and $56 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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.

17 Invesco New York Tax-Free Income Fund


	Level 1		Level 2		Level 3		Total

Municipal Obligations	$	—	$	76,981,519	$	—	$	76,981,519

NOTE 4—Trustees’ and Officers’ Fees and Benefits

NOTE 5—Cash Balances

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

Tax Character of Distributions to Shareholders Paid During the Period Ended August 31, 2010 and Years Ended December 31, 2009 and 2008:


	August 31,		December 31,		December 31,
	2010		2009		2008

Tax-exempt income	$	2,017,288	$	3,194,706	$	3,436,931

Ordinary income		—		617,351		35,803

Long-term capital gain		—		927,917		847,266

Total distributions	$	2,017,288	$	4,739,974	$	4,320,000

Tax Components of Net Assets at Period-End:


	August 31,
	2010

Undistributed tax-exempt income	$	87,745

Net unrealized appreciation — investments		5,044,874

Temporary book/tax differences		(65,575	)

Capital loss carryforward		(954,559	)

Shares of beneficial interest		68,120,430

Total net assets	$	72,232,915

The Fund utilized $231,342 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2017	$	954,559


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

18 Invesco New York Tax-Free Income Fund

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the period ended August 31, 2010 was $12,754,345 and $15,256,672, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	5,819,986

Aggregate unrealized (depreciation) of investment securities		(775,112	)

Net unrealized appreciation of investment securities	$	5,044,874

Cost of investments for tax purposes is $71,936,645.

NOTE 8—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of bond premium amortization on August 31, 2010, undistributed net investment income was decreased by $1,132 and undistributed net realized gain (loss) was increased by $1,132. This reclassification had no effect on the net assets of the Fund.

NOTE 9—Share Information


	Summary of Share Activity

	Eight months ended						Year ended						Year ended
	August 31, 2010^(a)						December 31, 2009						December 31, 2008
	Shares			Amount			Shares			Amount			Shares			Amount

Class A
Sold		720,511		$	7,840,290			109,018		$	1,153,786			186,121		$	2,035,163

Reinvestment of dividends and distributions		110,526			1,198,724			279,522			2,897,033			242,197			2,524,353

Redeemed		(950,248	)		(10,394,840	)		(470,342	)		(4,909,047	)		(525,591	)		(5,551,683	)

Net increase (decrease)		(119,211	)		(1,355,826	)		(81,802	)		(858,228	)		(97,273	)		(992,167	)

Class B
Sold		665,555			7,245,923			104,467			1,087,201			113,003			1,167,995

Reinvestment of dividends and distributions		31,379			337,366			92,244			949,194			78,843			816,229

Redeemed		(759,706	)		(8,197,338	)		(249,422	)		(2,589,834	)		(325,269	)		(3,410,069	)

Net increase (decrease)		(62,772	)		(614,049	)		(52,711	)		(553,439	)		(133,423	)		(1,425,845	)

Class C
Sold		77,020			836,095			60,818			625,415			13,198			140,328

Reinvestment of dividends and distributions		6,819			73,317			18,265			187,685			11,658			120,716

Redeemed		(52,507	)		(564,116	)		(24,224	)		(252,825	)		(31,379	)		(312,781	)

Net increase (decrease)		31,332			345,296			54,859			560,275			(6,523	)		(51,737	)

Class Y
Sold		113,389			1,243,241			27,511			284,961			15,372			165,878

Reinvestment of dividends and distributions		14,831			159,082			37,684			386,211			49,704			514,638

Redeemed		(92,217	)		(992,769	)		(164,291	)		(1,690,437	)		(313,472	)		(3,167,370	)

Net increase (decrease)		36,003			409,554			(99,096	)		(1,019,265	)		(248,396	)		(2,486,854	)

Net increase (decrease) in share activity		(114,648	)	$	(1,215,025	)		(178,750	)	$	(1,870,657	)		(485,615	)	$	(4,956,603	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 81% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

19 Invesco New York Tax-Free Income Fund

NOTE 10—Purposes and Risks Relating to Certain Financial Instruments

20 Invesco New York Tax-Free Income Fund

NOTE 11—Financial Highlights

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


	Class A
	Eight months ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	10.73		$	9.92		$	11.03		$	11.29		$	11.31		$	11.67

Income (loss) from investment operations:
Net investment income		0.32			0.49			0.49			0.50			0.49			0.52

Net realized and unrealized gain (loss)		0.48			1.04			(0.99	)		(0.26	)		0.03			(0.17	)

Total income (loss) from investment operations		0.80			1.53			(0.50	)		0.24			0.52			0.35

Less dividends and distributions from:
Net investment income		(0.32	)		(0.48	)		(0.48	)		(0.49	)		(0.48	)		(0.51	)

Net realized gain		—			(0.24	)		(0.13	)		(0.01	)		(0.06	)		(0.20	)

Total dividends and distributions		(0.32	)		(0.72	)		(0.61	)		(0.50	)		(0.54	)		(0.71	)

Net asset value, end of period	$	11.21		$	10.73		$	9.92		$	11.03		$	11.29		$	11.31

Total return^(a)		7.55	%		15.91	%		(4.63	)%		2.33	%		4.63	%		3.10	%

Net assets, end of period, (000’s omitted)	$	46,528		$	45,803		$	43,152		$	49,048		$	57,776		$	63,437

Ratios to average net assets:
Total expenses
With fee waivers and/or expense reimbursements		0.97	%^(b)		0.92	%		0.91	%		1.00	%		0.91	%		0.90	%

Without fee waivers and/or expense reimbursements		1.14	%^(b)		1.13	%		1.06	%		1.16	%		1.03	%		1.00	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		0.90	%^(b)		0.90	%		0.91	%		0.90	%		0.91	%		0.90	%

Net investment income		4.44	%^(b)		4.67	%		4.58	%		4.49	%		4.32	%		4.37	%

Supplemental data:
Portfolio turnover^(c)		19	%		41	%		9	%		4	%		12	%		15	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $46,088.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

21 Invesco New York Tax-Free Income Fund

NOTE 11—Financial Highlights—(continued)


	Class B
	Eight months ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	10.65		$	9.85		$	10.95		$	11.21		$	11.24		$	11.59

Income (loss) from investment operations:
Net investment income		0.31			0.49			0.49			0.51			0.51			0.48

Net realized and unrealized gain (loss)		0.48			1.03			(0.98	)		(0.26	)		0.02			(0.15	)

Total income (loss) from investment operations		0.79			1.52			(0.49	)		0.25			0.53			0.33

Less dividends and distributions from:
Net investment income		(0.30	)		(0.48	)		(0.48	)		(0.50	)		(0.50	)		(0.48	)

Net realized gain		—			(0.24	)		(0.13	)		(0.01	)		(0.06	)		(0.20	)

Total dividends and distributions		(0.30	)		(0.72	)		(0.61	)		(0.51	)		(0.56	)		(0.68	)

Net asset value, end of period	$	11.14		$	10.65		$	9.85		$	10.95		$	11.21		$	11.24

Total return^(a)		7.55	%		15.90	%		(4.60	)%		2.36	%		4.84	%		2.93	%

Net assets, end of period, (000’s omitted)	$	14,952		$	14,970		$	14,360		$	17,424		$	22,629		$	26,952

Ratios to average net assets:
Total expenses
With fee waivers and/or expense reimbursements		1.08	%^(b)		0.91	%		0.90	%		0.87	%		0.72	%		1.21	%

Without fee waivers and/or expense reimbursements		1.25	%^(b)		1.26	%		1.05	%		1.03	%		0.84	%		1.31	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		1.01	%^(b)		0.89	%		0.90	%		0.77	%		0.72	%		1.21	%

Net investment income		4.33	%^(b)		4.68	%		4.59	%		4.62	%		4.51	%		4.06	%

Supplemental data:
Portfolio turnover^(c)		19	%		41	%		9	%		4	%		12	%		15	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $14,223.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

22 Invesco New York Tax-Free Income Fund

NOTE 11—Financial Highlights—(continued)


	Class C
	Eight months ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	10.64		$	9.86		$	10.96		$	11.22		$	11.25		$	11.60

Income (loss) from investment operations:
Net investment income		0.28			0.43			0.43			0.44			0.43			0.45

Net realized and unrealized gain (loss)		0.48			1.02			(0.97	)		(0.26	)		0.03			(0.16	)

Total income (loss) from investment operations		0.76			1.45			(0.54	)		0.18			0.46			0.29

Less dividends and distributions from:
Net investment income		(0.28	)		(0.43	)		(0.43	)		(0.43	)		(0.43	)		(0.44	)

Net realized gain		—			(0.24	)		(0.13	)		(0.01	)		(0.06	)		(0.20	)

Total dividends and distributions		(0.28	)		(0.67	)		(0.56	)		(0.44	)		(0.49	)		(0.64	)

Net asset value, end of period	$	11.12		$	10.64		$	9.86		$	10.96		$	11.22		$	11.25

Total return^(a)		7.23	%		15.09	%		(5.07	)%		1.80	%		4.11	%		2.51	%

Net assets, end of period, (000’s omitted)	$	3,809		$	3,311		$	2,526		$	2,881		$	2,832		$	4,152

Ratios to average net assets:
Total expenses
With fee waivers and/or expense reimbursements		1.47	%^(b)		1.42	%		1.41	%		1.51	%		1.41	%		1.41	%

Without fee waivers and/or expense reimbursements		1.64	%^(b)		1.63	%		1.56	%		1.67	%		1.53	%		1.51	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		1.40	%^(b)		1.40	%		1.41	%		1.41	%		1.41	%		1.41	%

Net investment income		3.94	%^(b)		4.17	%		4.08	%		3.98	%		3.82	%		3.86	%

Supplemental data:
Portfolio turnover^(c)		19	%		41	%		9	%		4	%		12	%		15	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $3,204.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

23 Invesco New York Tax-Free Income Fund

NOTE 11—Financial Highlights—(continued)


	Class Y
	Eight months ended
	August 31,			Year ended December 31,
	2010			2009			2008			2007			2006			2005

Selected per share data:
Net asset value, beginning of period	$	10.61		$	9.81		$	10.91		$	11.16		$	11.19		$	11.55

Income (loss) from investment operations:
Net investment income		0.34			0.51			0.51			0.52			0.51			0.53

Net realized and unrealized gain (loss)		0.47			1.03			(0.97	)		(0.25	)		0.03			(0.16	)

Total income (loss) from investment operations		0.81			1.54			(0.46	)		0.27			0.54			0.37

Less dividends and distributions from:
Net investment income		(0.33	)		(0.50	)		(0.51	)		(0.51	)		(0.51	)		(0.53	)

Net realized gain		—			(0.24	)		(0.13	)		(0.01	)		(0.06	)		(0.20	)

Total dividends and distributions		(0.33	)		(0.74	)		(0.64	)		(0.52	)		(0.57	)		(0.73	)

Net asset value, end of period	$	11.09		$	10.61		$	9.81		$	10.91		$	11.16		$	11.19

Total return^(a)		7.78	%		16.22	%		(4.40	)%		2.56	%		4.89	%		3.27	%

Net assets, end of period, (000’s omitted)	$	6,944		$	6,262		$	6,761		$	10,226		$	10,824		$	9,483

Ratios to average net assets:
Total expenses
With fee waivers and/or expense reimbursements		0.72	%^(b)		0.67	%		0.66	%		0.76	%		0.66	%		0.66	%

Without fee waivers and/or expense reimbursements		0.89	%^(b)		0.88	%		0.81	%		0.92	%		0.78	%		0.76	%

With fee waivers and/or expense reimbursements, exclusive of interest and residual trust expense		0.65	%^(b)		0.65	%		0.66	%		0.66	%		0.66	%		0.66	%

Net investment income		4.69	%^(b)		4.92	%		4.83	%		4.73	%		4.57	%		4.61	%

Supplemental data:
Portfolio turnover^(c)		19	%		41	%		9	%		4	%		12	%		15	%


^(a)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
^(b)		Ratios are annualized and based on average daily net assets (000’s omitted) of $6,060.
^(c)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 12—Change in Independent Registered Public Accounting Firm

24 Invesco New York Tax-Free Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco New York Tax-Free Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco New York Tax-Free Income Fund (formerly known as Morgan Stanley New York Tax-Free Income Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of operations, the statement of changes in net assets and the financial highlights of the Fund for the periods ended December 31, 2009 and prior were audited by other independent auditors whose report dated February 25, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

25 Invesco New York Tax-Free Income Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	1,058.00	$	4.67	$	1,020.67	$	4.58		0.90	%

B		1,000.00		1,057.90		5.45		1,019.91		5.35		1.05

C		1,000.00		1,055.60		7.25		1,018.15		7.12		1.40

Y		1,000.00		1,059.70		3.37		1,021.93		3.31		0.65


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

26 Invesco New York Tax-Free Income Fund

Approval of Investment Advisory and Sub-Advisory Agreements with Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco New York Tax-Free Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

27 Invesco New York Tax-Free Income Fund

28 Invesco New York Tax-Free Income Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


		MS-NYTFI-AR-1		Invesco Distributors, Inc.

Letters to Shareholders

Philip Taylor

Dear Shareholders:

The benefits of Invesco

As a leading global investment manager, Invesco is committed to helping investors worldwide achieve their financial objectives. I believe Invesco is uniquely positioned to serve your needs.

Our customer focus

Sincerely,

Philip Taylor
Senior Managing Director, Invesco



2		Invesco S&P 500 Index Fund

Bruce Crockett

Dear Fellow Shareholders:

As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees



3		Invesco S&P 500 Index Fund

Management’s Discussion of Fund Performance

Performance summary

As part of Invesco’s June 1, 2010, acquisition of Morgan Stanley’s retail asset management business, Morgan Stanley S&P 500 Index Fund was reorganized into Invesco S&P 500 Index Fund. Effective June 25, 2010, Glen Murphy, Daniel Tsai, and Anne Unflat managed the Fund. Effective August 20, 2010, Anthony Munchak and Francis Orlando were added to the team. A listing of your Fund’s managers appears later in this report.

For the fiscal year ended August 31, 2010, Class A shares of Invesco S&P 500 Index Fund at net asset value (NAV) performed in line with the S&P 500 Index and the Lipper S&P 500 Index Objective Funds Index. The Fund seeks to provide investment results that, before expenses, correspond to the total return (i.e., the combination of capital changes and income) of the S&P 500 Index.

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

Fund vs. Indexes


Class A Shares	4.45	%

Class B Shares	3.68

Class C Shares	3.71

Class Y Shares	4.72

S&P 500 Index^▼ (Broad Market/Style-Specific Index)	4.93

Lipper S&P 500 Objective Funds Index^▼ (Peer Group Index)	4.67


^▼		Lipper Inc.

How we invest

The Fund will normally invest at least 80 percent of its assets in common stocks of companies included in the S&P 500 Index. The Fund’s assets are managed by investing in stocks in approximately the same proportion as they are represented in the S&P 500 Index. For example, if the common stock of a specific company represents five percent of the S&P 500 Index, the Fund typically will invest the same percentage of the Fund’s assets in that stock. The S&P 500 Index is a well known stock market index that includes common stocks of 500 companies representing a significant portion of the market value of all common stocks publicly traded in the United States. The Fund may invest in foreign companies, including those that are in

emerging market countries, that are included in the S&P 500 Index. Buy and sell decisions for the Fund are a function of changes in the S&P 500 Index rather than independent decisions made by the investment team.

Market conditions and your Fund

Over the past year investors have been optimistic about the prospect of an improving economy given accommodative monetary policy, fiscal stimulus and increased strength in the manufacturing sector. Sentiment turned pessimistic when there was little good news to counter the seeds of economic troubles planted in the first quarter of 2010 that were already weighing heavily on the market. Within the U.S., waning consumer confidence, worsening

employment outlook and continued pressures in the financial sector confirmed to most that economic growth was stalling. Internationally, concerns sprang from news of slowing economic growth in China and ongoing concerns about debt burdens in the southern eurozone, despite support from their northern peers. With little good news to support the market, steady gains became steep losses.

At the beginning of the 12-month period covered by this report, riskier assets were outperforming securities considered safe havens, like U.S. Treasury securities. This trend continued through the middle of April 2010. However, renewed credit problems overseas and the market corrections that occurred in May, June and August created a more uncertain environment, which prompted many investors to favor safety over risk.

The Fund stayed true to its process by maintaining the same proportion to all constituents of the S&P 500 Index as the index itself. On an absolute basis, all sectors in the Fund, except financials, posted positive returns during the fiscal year. The sectors that contributed most to overall Fund performance were the consumer discretionary, consumer staples, information technology and industrial sectors. The financials sector was the primary detractor at the sector level.

Within the consumer discretionary sector, Procter & Gamble, Coca-Cola and McDonalds were top contributors. Procter & Gamble is focused on providing consumer packaged goods. The company’s products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and neighborhood stores, which serve many

Portfolio Composition

By sector


Information Technology	18.1	%

Financials	15.8

Consumer Staples	11.7

Health Care	11.6

Energy	10.8

Industrials	10.5

Consumer Discretionary	10.2

Utilities	3.8

Materials	3.6

Telecommunication Services	3.2

Money Market Funds
Plus Other Assets Less Liabilities	0.7

Top 10 Equity Holdings*



1.	Exxon Mobil Corp.	3.2	%

2.	Apple, Inc.	2.3

3.	Microsoft Corp.	1.9

4.	Procter & Gamble Co. (The)	1.8

5.	AT&T, Inc.	1.7

6.	International Business Machines Corp.	1.6

7.	Johnson & Johnson	1.6

8.	General Electric Co.	1.6

9.	Chevron Corp.	1.6

10.	JPMorgan Chase & Co.	1.5


Total Net Assets	$489.8 million

Total Number of Holdings*		500

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

*Excluding money market fund holdings.



4		Invesco S&P 500 Index Fund

consumers in developing markets. Sales to Wal-Mart and its affiliates represented approximately 16% of Procter & Gamble’s total revenue for the year ended June 30, 2010. In October 2009, Warner Chilcott (not a fund holding) completed the acquisition of Procter & Gamble’s global branded prescription pharmaceutical business. In July 2010, Sara Lee completed the sale of its air care business to Procter & Gamble.

Detracting from performance were several financial sector companies, including Wells Fargo, JP Morgan Chase and Bank of America.

As part of implementing the Fund’s strategy, the Fund may use derivatives, such as futures contracts to better manage our market exposure. The use of derivatives during the period was successful.

While the global economy appeared more stable entering 2010 than it did the prior year, forecasting the future direction of the economy remained highly challenging. The bursting of the U.S. housing bubble, rising unemployment and rising taxation could impede future economic growth, while massive fiscal and monetary stimulus could promote economic growth.

During the fiscal year, we were cautiously optimistic about the prospects for equities. In a world of moderate but positive economic growth, low inflation and prolonged government liquidity support, we believe equities can achieve gains. Further, valuations remained reasonable by historic standards, especially after the pullback during the second quarter of 2010.

We welcome new investors who joined the Fund during the fiscal year and would like to thank all of our shareholders for your investment in Invesco S&P 500 Index Fund.

See important Fund and index disclosures later in this report.

Anthony Munchak

Chartered Financial Analyst, portfolio manager, is manager of Invesco S&P 500 Index Fund. He joined Invesco in 2000. Mr. Munchak earned a B.S. and M.S. in finance from Boston College and an M.B.A. from Bentley College.

Glen Murphy

Chartered Financial Analyst, portfolio manager, is manager of Invesco S&P 500 Index Fund. He joined Invesco in 1995. Mr. Murphy earned a B.B.A. from the University of Massachusetts and an M.S. in finance from Boston College.

Francis Orlando

Chartered Financial Analyst, portfolio manager, is manager of Invesco S&P 500 Index Fund. He joined Invesco in 1987. Mr. Orlando earned a B.A. in business administration from Merrimack College and an M.B.A. from Boston University.

Daniel Tsai

Chartered Financial Analyst, portfolio manager, is manager of Invesco S&P 500 Index Fund. He joined Invesco in 2000. Mr. Tsai earned a B.S. in mechanical engineering from National Taiwan University and an M.S. in mechanical engineering from the University of Michigan. He also earned an M.S. in computer science from Wayne State University.

Anne Unflat

Portfolio manager, is manager of Invesco S&P 500 Index Fund. She joined Invesco in 1988. Ms. Unflat graduated magna cum laude from Queens College with a B.A. in economics. She earned an M.B.A. in finance from St. John’s University.



5		Invesco S&P 500 Index Fund

Average Annual Total Returns

As of 8/31/10, including maximum applicable sales charges


Class A Shares

Inception (9/26/97)			1.55	%

	10	Years	-2.90

	5	Years	-2.45

	1	Year	-1.34


Class B Shares

Inception (9/26/97)			1.51	%

	10	Years	-2.95

	5	Years	-2.47

	1	Year	-1.32


Class C Shares

Inception (9/26/97)			1.23	%

	10	Years	-3.08

	5	Years	-2.07

	1	Year	2.71


Class Y Shares

Inception (9/26/97)			2.23	%

	10	Years	-2.12

	5	Years	-1.10

	1	Year	4.72

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco S&P 500 Index Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco S&P 500 Index Fund. Share class returns will differ from the predecessor fund because of different expenses.

Average Annual Total Returns

As of 6/30/10, the most recent calendar quarter-end including maximum applicable sales charges.


Class A Shares

Inception (9/26/97)			1.40	%

	10	Years	-2.68

	5	Years	-2.34

	1	Year	7.67


Class B Shares

Inception (9/26/97)			1.37	%

	10	Years	-2.73

	5	Years	-2.35

	1	Year	8.11


Class C Shares

Inception (9/26/97)			1.09	%

	10	Years	-2.86

	5	Years	-1.96

	1	Year	12.10


Class Y Shares

Inception (9/26/97)			2.09	%

	10	Years	-1.90

	5	Years	-0.99

	1	Year	14.15

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, and Class Y shares was 0.65%, 1.40%, 1.40% and 0.40%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, and Class Y shares was 0.70%, 1.45%, 1.45% and 0.45%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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


1		Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.



7		Invesco S&P 500 Index Fund

Invesco S&P 500 Index Fund’s investment objective is to provide investment results that, before expenses, correspond to the total return (i.e., the combination of capital changes and income) of the Standard & Poor’s 500 Composite Stock Price Index.

n		Unless otherwise stated, information presented in this report is as of August 31, 2010, and is based on total net assets.

n		Unless otherwise noted, all data provided by Invesco.

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

About share classes

n		Effective September 30, 2003, for qualified plans only, those previously established are eligible to purchase Class B shares of any Invesco fund. Please see the prospectus for more information.

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

Principal risks of investing in the Fund

n		In general, prices of equity securities are more volatile than those of fixed income securities. Prices of equity securities will rise and fall in response to events that affect entire financial markets or industries and to events that affect particular issuers. Investing in convertible securities may subject the portfolio to the risks associated with both fixed income securities and common stocks.

n		The Fund is operated as a passively managed index fund. As such, the adverse performance of a particular stock ordinarily will not result in the elimination of the stock from the Fund’s portfolio. The Fund will remain invested in common stocks even when stock prices are generally falling. Ordinarily, the adviser will not sell the Fund’s portfolio securities except to reflect additions or deletions of the stocks that comprise the S&P 500 Index, or as may be necessary to raise cash to pay Fund shareholders who sell Fund shares.

		The Fund’s ability to correlate its performance, before expenses, with the S&P 500 Index may be affected by, among other things, changes in securities markets, the manner in which the S&P 500 Index is calculated and the timing of the purchases and sales, and also depends to some extent on the size of the Fund’s portfolio, the size of cash flows into and out of the Fund and differences between how and when the Fund and the index are valued.

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

About indexes used in this report

n		The S&P 500^{^®} Index is an unmanaged index considered representative of the U.S. stock market.

n		The Lipper S&P 500 Objective Funds Index is an unmanaged index considered representative of S&P 500 objective funds tracked by Lipper.

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

Other information

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

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

n		Industry 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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols


Class A Shares		SPIAX
Class B Shares		SPIBX
Class C Shares		SPICX
Class Y Shares		SPIDX



8		Invesco S&P 500 Index Fund

Schedule of Investments^(a)

August 31, 2010


	Shares		Value

Common Stocks & Other Equity Interests–99.3%
Advertising–0.2%
Interpublic Group of Cos., Inc.^(b)		25,027	$	213,480

Omnicom Group, Inc.		15,700		549,657

				763,137

Aerospace & Defense–2.7%
Boeing Co. (The)		38,824		2,373,311

General Dynamics Corp.		19,729		1,102,259

Goodrich Corp.		6,390		437,587

Honeywell International, Inc.		39,189		1,531,898

ITT Corp.		9,361		397,843

L-3 Communications Holdings, Inc.		5,893		392,474

Lockheed Martin Corp.		15,939		1,108,079

Northrop Grumman Corp.		15,405		833,719

Precision Castparts Corp.		7,272		823,045

Raytheon Co.		19,490		856,001

Rockwell Collins, Inc.		8,087		436,132

United Technologies Corp.		47,725		3,112,147

				13,404,495

Agricultural Products–0.2%
Archer-Daniels-Midland Co.		32,890		1,012,354

Air Freight & Logistics–1.1%
C.H. Robinson Worldwide, Inc.		8,534		554,624

Expeditors International of Washington, Inc.		10,888		431,056

FedEx Corp.		16,019		1,250,283

United Parcel Service, Inc. (Class B)		50,661		3,232,172

				5,468,135

Airlines–0.1%
Southwest Airlines Co.		38,076		420,740

Aluminum–0.1%
Alcoa, Inc.		52,224		533,207

Apparel Retail–0.5%
Abercrombie & Fitch Co. (Class A)		4,543		157,188

Gap, Inc. (The)		22,960		387,795

Limited Brands, Inc.		13,805		325,798

Ross Stores, Inc.		6,251		310,237

TJX Cos., Inc.		20,867		828,211

Urban Outfitters, Inc.^(b)		6,657		201,840

				2,211,069

Apparel, Accessories & Luxury Goods–0.2%
Coach, Inc.		15,605		559,283

Polo Ralph Lauren Corp.		3,363		254,714

VF Corp.		4,537		320,403

				1,134,400

Application Software–0.6%
Adobe Systems, Inc.^(b)		26,926		747,466

Autodesk, Inc.^(b)		11,735		325,646

Citrix Systems, Inc.^(b)		9,480		549,271

Compuware Corp.^(b)		11,509		82,635

Intuit, Inc.^(b)		16,066		687,625

Salesforce.com, Inc.^(b)		5,757		632,579

				3,025,222

Asset Management & Custody Banks–1.2%
Ameriprise Financial, Inc.		13,081		570,070

Bank of New York Mellon Corp. (The)		62,040		1,505,711

Federated Investors, Inc. (Class B)		4,573		95,347

Franklin Resources, Inc.		7,603		733,765

Invesco Ltd.		23,895		432,499

Janus Capital Group, Inc.		9,373		85,107

Legg Mason, Inc.		7,954		201,475

Northern Trust Corp.		12,369		570,706

State Street Corp.		25,661		900,188

T. Rowe Price Group, Inc.		13,276		581,223

				5,676,091

Auto Parts & Equipment–0.2%
Johnson Controls, Inc.		34,407		912,818

Automobile Manufacturers–0.4%
Ford Motor Co.^(b)		174,243		1,967,203

Automotive Retail–0.2%
AutoNation, Inc.^(b)		3,984		89,959

AutoZone, Inc.^(b)		1,489		312,362

O’Reilly Automotive, Inc.^(b)		7,064		333,915

				736,236

Biotechnology–1.4%
Amgen, Inc.^(b)		48,997		2,500,807

Biogen Idec, Inc.^(b)		12,372		665,614

Celgene Corp.^(b)		23,571		1,214,378

Cephalon, Inc.^(b)		3,858		218,401

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

9 Invesco S&P 500 Index Fund


	Shares		Value

Biotechnology–(continued)

Genzyme Corp.^(b)		13,650	$	957,001

Gilead Sciences, Inc.^(b)		42,895		1,366,635

				6,922,836

Brewers–0.1%
Molson Coors Brewing Co. (Class B)		8,107		353,141

Broadcasting–0.2%
CBS Corp. (Class B)		34,778		480,632

Discovery Communications, Inc. (Class A)^(b)		14,541		548,923

				1,029,555

Building Products–0.0%
Masco Corp.		18,346		192,450

Cable & Satellite–1.1%
Comcast Corp. (Class A)		144,323		2,470,810

DirecTV (Class A)^(b)		46,483		1,762,635

Scripps Networks Interactive, Inc. (Class A)		4,627		185,913

Time Warner Cable, Inc.		18,106		934,451

				5,353,809

Casinos & Gaming–0.1%
International Game Technology		15,247		222,606

Wynn Resorts Ltd.		3,535		284,957

				507,563

Coal & Consumable Fuels–0.2%
Consol Energy, Inc.		11,544		371,717

Massey Energy Co.		5,220		150,075

Peabody Energy Corp.		13,748		588,414

				1,110,206

Commercial Printing–0.0%
RR Donnelley & Sons Co.		10,551		159,795

Communications Equipment–2.5%
Cisco Systems, Inc.^(b)		292,120		5,857,006

Corning, Inc.		79,831		1,251,750

Harris Corp.		6,635		279,134

JDS Uniphase Corp.^(b)		11,484		105,538

Juniper Networks, Inc.^(b)		26,911		731,979

Motorola, Inc.^(b)		118,875		895,129

QUALCOMM, Inc.		83,903		3,214,324

Tellabs, Inc.		19,705		139,906

				12,474,766

Computer & Electronics Retail–0.2%
Best Buy Co., Inc.		17,695		555,446

GameStop Corp. (Class A)^(b)		7,846		140,679

RadioShack Corp.		6,401		118,290

				814,415

Computer Hardware–5.2%
Apple, Inc.^(b)		46,542		11,326,927

Dell, Inc.^(b)		88,136		1,037,361

Hewlett-Packard Co.		119,407		4,594,781

International Business Machines Corp.		65,591		8,082,779

Teradata Corp.^(b)		8,487		277,864

				25,319,712

Computer Storage & Peripherals–0.7%
EMC Corp.^(b)		105,142		1,917,790

Lexmark International, Inc.^(b)		4,032		141,080

NetApp, Inc.^(b)		17,627		712,836

QLogic Corp.^(b)		5,672		84,484

SanDisk Corp.^(b)		11,762		390,969

Western Digital Corp.^(b)		11,721		283,062

				3,530,221

Construction & Engineering–0.2%
Fluor Corp.		9,110		406,852

Jacobs Engineering Group, Inc.^(b)		6,382		221,328

Quanta Services, Inc.^(b)		10,787		193,519

				821,699

Construction & Farm Machinery & Heavy Trucks–1.0%
Caterpillar, Inc.		32,108		2,092,157

Cummins, Inc.		10,258		763,298

Deere & Co.		21,729		1,374,794

PACCAR, Inc.		18,663		764,996

				4,995,245

Construction Materials–0.1%
Vulcan Materials Co.		6,523		239,785

Consumer Electronics–0.0%
Harman International Industries, Inc.^(b)		3,560		110,965

Consumer Finance–0.8%
American Express Co.		61,442		2,449,693

Capital One Financial Corp.		23,350		884,031

Discover Financial Services		27,816		403,610

SLM Corp.^(b)		24,845		274,537

				4,011,871

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

10 Invesco S&P 500 Index Fund


	Shares		Value

Data Processing & Outsourced Services–1.2%
Automatic Data Processing, Inc.		25,727	$	993,319

Computer Sciences Corp.		7,888		314,021

Fidelity National Information Services, Inc.		13,065		337,600

Fiserv, Inc.^(b)		7,835		391,985

Mastercard, Inc. (Class A)		4,948		981,485

Paychex, Inc.		16,452		409,490

Total System Services, Inc.		10,093		143,321

Visa, Inc. (Class A)		23,148		1,596,749

Western Union Co. (The)		34,379		539,063

				5,707,033

Department Stores–0.4%
JC Penney Co., Inc.		12,082		241,640

Kohl’s Corp.^(b)		15,749		739,888

Macy’s, Inc.		21,589		419,690

Nordstrom, Inc.		8,467		244,866

Sears Holdings Corp.^(b)		2,439		150,974

				1,797,058

Distillers & Vintners–0.1%
Brown-Forman Corp. (Class B)		5,522		338,444

Constellation Brands, Inc.^(b)		9,799		163,251

				501,695

Distributors–0.1%
Genuine Parts Co.		8,160		342,149

Diversified Banks–1.8%
Comerica, Inc.		8,983		309,105

US Bancorp		98,047		2,039,377

Wells Fargo & Co.		266,494		6,275,934

				8,624,416

Diversified Chemicals–0.9%
Dow Chemical Co. (The)		59,071		1,439,560

Eastman Chemical Co.		3,711		228,412

EI Du Pont de Nemours & Co.		46,342		1,889,364

FMC Corp.		3,727		232,118

PPG Industries, Inc.		8,457		556,724

				4,346,178

Diversified Metals & Mining–0.4%
Freeport-McMoRan Copper & Gold, Inc.		24,127		1,736,662

Titanium Metals Corp.^(b)		4,342		78,677

				1,815,339

Diversified Support Services–0.1%
Cintas Corp.		6,721		171,319

Iron Mountain, Inc.		9,226		187,103

				358,422

Drug Retail–0.7%
CVS Caremark Corp.		69,607		1,879,389

Walgreen Co.		50,045		1,345,210

				3,224,599

Education Services–0.1%
Apollo Group, Inc. (Class A)^(b)		6,424		272,891

DeVry, Inc.		3,162		120,504

				393,395

Electric Utilities–2.1%
Allegheny Energy, Inc.		8,628		194,561

American Electric Power Co., Inc.		24,493		867,297

Duke Energy Corp.		67,165		1,154,566

Edison International		16,664		562,410

Entergy Corp.		9,667		762,146

Exelon Corp.		33,787		1,375,807

FirstEnergy Corp.		15,591		569,539

NextEra Energy, Inc.		21,209		1,139,560

Northeast Utilities		8,966		259,745

Pepco Holdings, Inc.		11,416		204,917

Pinnacle West Capital Corp.		5,509		219,534

PPL Corp.		23,967		650,944

Progress Energy, Inc.		14,688		630,262

Southern Co.		42,174		1,547,364

				10,138,652

Electrical Components & Equipment–0.5%
Emerson Electric Co.		38,523		1,797,098

First Solar, Inc.^(b)		2,511		321,031

Rockwell Automation, Inc.		7,293		372,964

				2,491,093

Electronic Components–0.1%
Amphenol Corp. (Class A)		8,851		360,413

Electronic Equipment & Instruments–0.1%
Agilent Technologies, Inc.^(b)		17,802		480,120

FLIR Systems, Inc.^(b)		7,873		197,770

				677,890

Electronic Manufacturing Services–0.0%
Jabil Circuit, Inc.		9,901		101,485

Molex, Inc.		6,942		122,527

				224,012

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

11 Invesco S&P 500 Index Fund


	Shares		Value

Environmental & Facilities Services–0.3%
Republic Services, Inc.		16,600	$	488,538

Stericycle, Inc.^(b)		4,355		285,253

Waste Management, Inc.		24,705		817,488

				1,591,279

Fertilizers & Agricultural Chemicals–0.4%
CF Industries Holdings, Inc.		3,640		336,700

Monsanto Co.		27,904		1,469,146

				1,805,846

Food–Retail–0.3%
Kroger Co. (The)		33,053		652,136

Safeway, Inc.		19,876		373,669

SUPERVALU, Inc.		10,854		105,501

Whole Foods Market, Inc.^(b)		8,727		303,612

				1,434,918

Food Distributors–0.2%
Sysco Corp.		30,258		831,792

Footwear–0.3%
NIKE, Inc. (Class B)		19,874		1,391,180

Forest Products–0.0%
Weyerhaeuser Co.		10,822		169,905

Gas Utilities–0.1%
EQT Corp.		7,358		239,871

Nicor, Inc.		2,282		96,506

				336,377

General Merchandise Stores–0.5%
Big Lots, Inc.^(b)		4,133		129,198

Family Dollar Stores, Inc.		6,908		295,593

Target Corp.		37,669		1,927,146

				2,351,937

Gold–0.3%
Newmont Mining Corp.		25,128		1,540,849

Health Care Distributors–0.4%
AmerisourceBergen Corp.		14,450		394,196

Cardinal Health, Inc.		18,519		554,829

McKesson Corp.		13,881		805,792

Patterson Cos., Inc.		4,811		121,670

				1,876,487

Health Care Equipment–1.6%
Baxter International, Inc.		30,507		1,298,378

Becton Dickinson and Co.		11,933		813,711

Boston Scientific Corp.^(b)		77,558		402,526

C.R. Bard, Inc.		4,906		376,928

CareFusion Corp.^(b)		9,063		195,580

Hospira, Inc.^(b)		8,534		438,306

Intuitive Surgical, Inc.^(b)		2,001		530,325

Medtronic, Inc.		56,342		1,773,646

St Jude Medical, Inc.^(b)		16,714		577,803

Stryker Corp.		14,406		622,195

Varian Medical Systems, Inc.^(b)		6,304		335,625

Zimmer Holdings, Inc.^(b)		10,372		489,247

				7,854,270

Health Care Facilities–0.0%
Tenet Healthcare Corp.^(b)		22,288		87,369

Health Care Services–0.7%
Cerner Corp^(b)		3,448		251,187

DaVita, Inc.^(b)		5,270		340,547

Express Scripts, Inc.^(b)		28,034		1,194,249

Laboratory Corp. of America Holdings^(b)		5,275		383,071

Medco Health Solutions, Inc.^(b)		22,180		964,386

Quest Diagnostics, Inc.		7,730		336,255

				3,469,695

Health Care Supplies–0.0%
DENTSPLY International, Inc.		7,485		208,233

Home Building–0.1%
DR Horton, Inc.		14,159		145,271

Lennar Corp. (Class A)		8,368		110,207

Pulte Group, Inc.^(b)		16,242		130,423

				385,901

Home Entertainment Software–0.1%
Electronic Arts, Inc.^(b)		16,768		255,544

Home Furnishings–0.0%
Leggett & Platt, Inc.		7,573		145,174

Home Improvement Retail–0.9%
Home Depot, Inc.		85,948		2,390,214

Lowe’s Cos., Inc.		73,101		1,483,950

Sherwin-Williams Co. (The)		4,707		331,279

				4,205,443

Homefurnishing Retail–0.1%
Bed Bath & Beyond, Inc.^(b)		13,465		484,336

Hotels, Resorts & Cruise Lines–0.4%
Carnival Corp. (Units)		22,142		690,388

Marriott International, Inc. (Class A)		13,122		420,035

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

12 Invesco S&P 500 Index Fund


	Shares		Value

Hotels, Resorts & Cruise Lines–(continued)

Starwood Hotels & Resorts Worldwide, Inc.		9,677	$	452,206

Wyndham Worldwide Corp.		9,176		212,791

				1,775,420

Household Appliances–0.2%
Snap-On, Inc.		2,943		121,340

Stanley Black & Decker, Inc.		8,245		442,262

Whirlpool Corp.		3,854		285,812

				849,414

Household Products–2.5%
Clorox Co.		7,203		466,899

Colgate-Palmolive Co.		25,085		1,852,276

Kimberly-Clark Corp.		21,173		1,363,541

Procter & Gamble Co. (The)		147,304		8,789,630

				12,472,346

Housewares & Specialties–0.1%
Fortune Brands, Inc.		7,820		350,258

Newell Rubbermaid, Inc.		14,229		213,719

				563,977

Human Resource & Employment Services–0.1%
Monster Worldwide, Inc.^(b)		6,440		71,033

Robert Half International, Inc.		7,673		165,584

				236,617

Hypermarkets & Super Centers–1.3%
Costco Wholesale Corp.		22,554		1,275,429

Wal-Mart Stores, Inc.		106,257		5,327,726

				6,603,155

Independent Power Producers & Energy Traders–0.2%
AES Corp. (The)^(b)		34,173		349,931

Constellation Energy Group, Inc.		10,315		302,539

NRG Energy, Inc.^(b)		13,059		265,359

				917,829

Industrial Conglomerates–2.4%
3M Co.		36,472		2,864,876

General Electric Co.^(c)		546,095		7,907,456

Textron, Inc.		13,979		238,621

Tyco International Ltd. (Luxembourg)		26,103		973,120

				11,984,073

Industrial Gases–0.4%
Air Products & Chemicals, Inc.		10,860		803,966

Praxair, Inc.		15,648		1,346,197

				2,150,163

Industrial Machinery–0.8%
Danaher Corp.		26,900		977,277

Dover Corp.		9,540		427,010

Eaton Corp.		8,524		592,248

Flowserve Corp.		2,851		254,822

Illinois Tool Works, Inc.		19,789		816,494

Pall Corp.		5,955		203,602

Parker Hannifin Corp.		8,278		489,727

Roper Industries, Inc.		4,842		281,223

				4,042,403

Industrial REIT’s–0.1%
ProLogis		24,375		264,469

Insurance Brokers–0.2%
AON Corp.		13,780		499,387

Marsh & McLennan Cos., Inc.		27,683		656,641

				1,156,028

Integrated Oil & Gas–6.6%
Chevron Corp.		102,740		7,619,198

ConocoPhillips		76,125		3,991,234

Exxon Mobil Corp.		261,480		15,469,157

Hess Corp.		14,946		751,036

Marathon Oil Corp.		36,289		1,106,452

Murphy Oil Corp.		9,782		523,924

Occidental Petroleum Corp.		41,541		3,035,816

				32,496,817

Integrated Telecommunication Services–2.9%
AT&T, Inc.		302,240		8,169,547

CenturyTel, Inc.		15,365		555,599

Frontier Communications Corp.		50,680		391,756

Qwest Communications International, Inc.		76,372		431,502

Verizon Communications, Inc.		144,585		4,266,703

Windstream Corp.		24,709		285,018

				14,100,125

Internet Retail–0.6%
Amazon.com, Inc.^(b)		17,552		2,191,016

Expedia, Inc.		10,604		242,407

Priceline.com, Inc.^(b)		2,422		705,965

				3,139,388

Internet Software & Services–1.7%
Akamai Technologies, Inc.^(b)		9,250		426,148

eBay, Inc.^(b)		58,159		1,351,615

Google, Inc. (Class A)^(b)		12,379		5,570,798

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

13 Invesco S&P 500 Index Fund


	Shares		Value

Internet Software & Services–(continued)

VeriSign, Inc.^(b)		9,309	$	271,171

Yahoo!, Inc.^(b)		60,217		787,638

				8,407,370

Investment Banking & Brokerage–1.3%
Charles Schwab Corp. (The)		50,057		638,728

E*Trade Financial Corp.^(b)		10,127		125,676

Goldman Sachs Group, Inc. (The)		26,331		3,605,767

Morgan Stanley		71,496		1,765,236

				6,135,407

IT Consulting & Other Services–0.2%
Cognizant Technology Solutions Corp. (Class A)^(b)		15,314		882,163

SAIC, Inc.^(b)		14,965		222,679

				1,104,842

Leisure Products–0.1%
Hasbro, Inc.		6,692		270,089

Mattel, Inc.		18,655		391,569

				661,658

Life & Health Insurance–1.1%
Aflac, Inc.		24,016		1,134,756

Lincoln National Corp.		15,471		361,403

MetLife, Inc.		45,785		1,721,516

Principal Financial Group, Inc.		16,353		376,937

Prudential Financial, Inc.		23,834		1,205,285

Torchmark Corp.		4,244		209,441

Unum Group		17,023		341,311

				5,350,649

Life Sciences Tools & Services–0.3%
Life Technologies Corp.^(b)		9,324		398,788

PerkinElmer, Inc.		6,002		126,102

Thermo Fisher Scientific, Inc.^(b)		20,991		884,141

Waters Corp.^(b)		4,793		290,072

				1,699,103

Managed Health Care–0.9%
Aetna, Inc.		21,732		580,679

CIGNA Corp.		14,151		455,945

Coventry Health Care, Inc.^(b)		7,566		146,402

Humana, Inc.^(b)		8,661		413,909

UnitedHealth Group, Inc.		58,139		1,844,169

WellPoint, Inc.^(b)		20,445		1,015,708

				4,456,812

Metal & Glass Containers–0.1%
Ball Corp.		4,760		266,941

Owens-Illinois, Inc.^(b)		8,485		212,634

Pactiv Corp.^(b)		6,796		218,016

				697,591

Motorcycle Manufacturers–0.1%
Harley-Davidson, Inc.		12,042		292,861

Movies & Entertainment–1.5%
News Corp. (Class A)		115,279		1,449,057

Time Warner, Inc.		58,295		1,747,684

Viacom, Inc. (Class B)		31,066		976,094

Walt Disney Co. (The)		100,178		3,264,801

				7,437,636

Multi-line Insurance–0.4%
American International Group, Inc.^(b)		6,908		234,388

Assurant, Inc.		5,687		207,917

Genworth Financial, Inc. (Class A)^(b)		25,015		270,913

Hartford Financial Services Group, Inc.		22,714		457,914

Loews Corp.		17,980		631,817

				1,802,949

Multi-Sector Holdings–0.0%
Leucadia National Corp.^(b)		9,692		206,924

Multi-Utilities–1.5%
Ameren Corp.		12,187		342,089

Centerpoint Energy, Inc.		21,298		314,997

CMS Energy Corp.		11,758		205,765

Consolidated Edison, Inc.		14,422		685,478

Dominion Resources, Inc.		30,487		1,303,624

DTE Energy Co.		8,567		401,364

Integrys Energy Group, Inc.		3,954		191,571

NiSource, Inc.		14,190		246,055

Oneok, Inc.		5,396		231,542

PG&E Corp.		19,044		890,498

Public Service Enterprise Group, Inc.		25,879		827,093

SCANA Corp.		5,770		225,203

Sempra Energy		12,660		644,647

TECO Energy, Inc.		10,940		184,667

Wisconsin Energy Corp.		5,954		331,876

Xcel Energy, Inc.		23,505		524,397

				7,550,866

Office Electronics–0.1%
Xerox Corp.		70,536		595,324

Office REIT’s–0.1%
Boston Properties, Inc.		7,110		578,754

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

14 Invesco S&P 500 Index Fund


	Shares		Value

Office Services & Supplies–0.1%
Avery Dennison Corp.		5,614	$	182,567

Pitney Bowes, Inc.		10,614		204,214

				386,781

Oil & Gas Drilling–0.2%
Diamond Offshore Drilling, Inc.		3,559		207,062

Helmerich & Payne, Inc.		5,366		198,757

Nabors Industries Ltd. (Bermuda)^(b)		14,588		228,740

Rowan Cos., Inc.^(b)		5,824		149,735

				784,294

Oil & Gas Equipment & Services–1.5%
Baker Hughes, Inc.		21,944		824,655

Cameron International Corp.^(b)		12,489		459,345

FMC Technologies, Inc.^(b)		6,201		383,532

Halliburton Co.		46,303		1,306,208

National Oilwell Varco, Inc.		21,431		805,591

Schlumberger Ltd. (Netherlands Antilles)		69,864		3,725,836

				7,505,167

Oil & Gas Exploration & Production–1.7%
Anadarko Petroleum Corp.		25,304		1,163,731

Apache Corp.		18,427		1,655,666

Cabot Oil & Gas Corp.		5,270		146,717

Chesapeake Energy Corp.		33,293		688,499

Denbury Resources, Inc.^(b)		20,420		300,991

Devon Energy Corp.		22,857		1,377,820

EOG Resources, Inc.		12,948		1,124,793

Noble Energy, Inc.		8,894		620,623

Pioneer Natural Resources Co.		5,903		341,311

QEP Resources		8,919		258,919

Range Resources Corp.		8,193		277,005

Southwestern Energy Co.^(b)		17,707		579,373

				8,535,448

Oil & Gas Refining & Marketing–0.2%
Sunoco, Inc.		6,147		207,031

Tesoro Corp.		7,223		81,114

Valero Energy Corp.		28,923		456,116

				744,261

Oil & Gas Storage & Transportation–0.3%
El Paso Corp.		35,995		409,983

Spectra Energy Corp.		33,143		674,129

Williams Cos., Inc. (The)		29,884		541,797

				1,625,909

Other Diversified Financial Services–3.7%
Bank of America Corp.		513,177		6,389,053

Citigroup, Inc.^(b)		1,156,194		4,301,042

JPMorgan Chase & Co.		203,506		7,399,478

				18,089,573

Packaged Foods & Meats–1.8%
Campbell Soup Co.		9,553		355,945

ConAgra Foods, Inc.		22,789		492,015

Dean Foods Co.^(b)		9,257		94,699

General Mills, Inc.		33,939		1,227,234

Hershey Co. (The)		8,534		396,575

HJ Heinz Co.		16,174		747,886

Hormel Foods Corp.		3,547		153,053

JM Smucker Co. (The)		6,071		355,032

Kellogg Co.		13,045		648,076

Kraft Foods, Inc. (Class A)		89,177		2,670,851

McCormick & Co., Inc.		6,775		270,119

Mead Johnson Nutrition Co.		10,460		545,907

Sara Lee Corp.		33,822		488,390

Tyson Foods, Inc. (Class A)		15,617		255,806

				8,701,588

Paper Packaging–0.1%
Bemis Co., Inc.		5,542		159,998

Sealed Air Corp.		8,196		168,100

				328,098

Paper Products–0.1%
International Paper Co.		22,330		456,872

MeadWestvaco Corp.		8,695		189,203

				646,075

Personal Products–0.2%
Avon Products, Inc.		21,911		637,610

Estee Lauder Cos., Inc. (The) (Class A)		6,100		342,027

				979,637

Pharmaceuticals–6.2%
Abbott Laboratories		78,952		3,895,492

Allergan, Inc.		15,728		966,014

Bristol-Myers Squibb Co.		87,959		2,293,971

Eli Lilly & Co.		51,904		1,741,898

Forest Laboratories, Inc.^(b)		14,605		398,570

Johnson & Johnson		141,072		8,043,925

King Pharmaceuticals, Inc.^(b)		12,767		111,201

Merck & Co., Inc.		159,495		5,607,844

Mylan, Inc.^(b)		15,796		271,059

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

15 Invesco S&P 500 Index Fund


	Shares		Value

Pharmaceuticals–(continued)

Pfizer, Inc.		412,576	$	6,572,336

Watson Pharmaceuticals, Inc.^(b)		5,440		234,301

				30,136,611

Photographic Products–0.0%
Eastman Kodak Co.^(b)		13,742		47,960

Property & Casualty Insurance–2.4%
ACE Ltd. (Switzerland)		17,214		920,433

Allstate Corp. (The)		27,513		759,359

Berkshire Hathaway, Inc. (Class B)^(b)		84,670		6,670,303

Chubb Corp.		16,713		921,220

Cincinnati Financial Corp.		8,381		223,605

Progressive Corp. (The)		34,290		678,942

Travelers Cos., Inc. (The)		24,038		1,177,381

XL Group PLC (Cayman Islands)		17,496		313,353

				11,664,596

Publishing–0.2%
Gannett Co., Inc.		12,181		147,268

McGraw-Hill Cos., Inc. (The)		16,137		446,188

Meredith Corp.		1,835		53,692

New York Times Co. (The) (Class A)^(b)		5,932		42,592

Washington Post Co. (The) (Class B)		318		114,553

				804,293

Railroads–0.8%
CSX Corp.		19,908		993,210

Norfolk Southern Corp.		18,927		1,016,001

Union Pacific Corp.		25,887		1,888,198

				3,897,409

Real Estate Services–0.0%
CB Richard Ellis Group, Inc. (Class A)^(b)		13,825		227,007

Regional Banks–1.0%
BB&T Corp.		35,399		783,026

Fifth Third Bancorp		40,654		449,227

First Horizon National Corp.^(b)		11,691		117,845

Huntington Bancshares, Inc.		36,651		193,884

KeyCorp		44,967		331,407

M&T Bank Corp.		4,228		362,086

Marshall & Ilsley Corp.		26,968		176,640

PNC Financial Services Group, Inc.		26,906		1,371,130

Regions Financial Corp.		64,240		413,063

SunTrust Banks, Inc.		25,567		575,002

Zions BanCorp.		8,789		161,981

				4,935,291

REIT–Diversified–0.1%
Vornado Realty Trust		8,133		659,261

Research & Consulting Services–0.1%
Dun & Bradstreet Corp.		2,552		168,177

Equifax, Inc.		6,466		190,553

				358,730

Residential REIT’s–0.3%
Apartment Investment & Management Co.		5,951		121,638

AvalonBay Communities, Inc.		4,268		449,079

Equity Residential		14,472		663,252

				1,233,969

Restaurants–1.3%
Darden Restaurants, Inc.		7,190		296,659

McDonald’s Corp.		55,025		4,020,126

Starbucks Corp.		38,110		876,149

Yum! Brands, Inc.		23,908		996,964

				6,189,898

Retail REIT’s–0.3%
Kimco Realty Corp.		20,746		309,323

Simon Property Group, Inc.		14,970		1,354,036

				1,663,359

Semiconductor Equipment–0.3%
Applied Materials, Inc.		68,706		713,855

KLA-Tencor Corp.		8,650		242,287

MEMC Electronic Materials, Inc.^(b)		11,631		119,683

Novellus Systems, Inc.^(b)		4,956		115,475

Teradyne, Inc.^(b)		9,190		82,526

				1,273,826

Semiconductors–2.0%
Advanced Micro Devices, Inc.^(b)		28,931		162,592

Altera Corp.		15,429		380,633

Analog Devices, Inc.		15,241		424,919

Broadcom Corp. (Class A)		22,089		662,007

Intel Corp.		284,594		5,043,006

Linear Technology Corp.		11,463		328,415

LSI Corp.^(b)		33,431		134,393

Microchip Technology, Inc.		9,469		262,197

Micron Technology, Inc.^(b)		43,695		282,488

National Semiconductor Corp.		12,175		153,527

Nvidia Corp.^(b)		29,267		273,061

Texas Instruments, Inc.		62,515		1,439,720

Xilinx, Inc.		13,238		319,698

				9,866,656

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

16 Invesco S&P 500 Index Fund


	Shares		Value

Soft Drinks–2.6%
Coca-Cola Co. (The)		118,003	$	6,598,728

Coca-Cola Enterprises, Inc.		16,637		473,489

Dr Pepper Snapple Group, Inc.		12,565		462,643

PepsiCo, Inc.		82,489		5,294,144

				12,829,004

Specialized Consumer Services–0.0%
H&R Block, Inc.		16,839		216,381

Specialized Finance–0.4%
CME Group, Inc.		3,359		833,301

IntercontinentalExchange, Inc.^(b)		3,809		363,988

Moody’s Corp.		10,057		212,605

NASDAQ OMX Group, Inc. (The)^(b)		7,455		133,519

NYSE Euronext		13,349		370,301

				1,913,714

Specialized REIT’s–0.5%
HCP, Inc.		15,859		558,554

Health Care REIT, Inc.		6,334		290,984

Host Hotels & Resorts, Inc.		33,666		442,034

Plum Creek Timber Co., Inc.		8,380		288,859

Public Storage		6,948		681,043

Ventas, Inc.		8,059		407,060

				2,668,534

Specialty Chemicals–0.3%
Airgas, Inc.		4,294		282,545

Ecolab, Inc.		11,935		565,719

International Flavors & Fragrances, Inc.		4,086		186,689

Sigma-Aldrich Corp.		6,191		329,176

				1,364,129

Specialty Stores–0.2%
CarMax, Inc.^(b)		11,411		227,421

Office Depot, Inc.^(b)		14,091		48,050

Staples, Inc.		37,333		663,408

Tiffany & Co.		6,494		257,357

				1,196,236

Steel–0.3%
AK Steel Holding Corp.		5,586		71,166

Allegheny Technologies, Inc.		5,088		207,183

Cliffs Natural Resources, Inc.		6,926		423,802

Nucor Corp.		16,118		592,820

United States Steel Corp.		7,333		311,726

				1,606,697

Systems Software–3.2%
BMC Software, Inc.^(b)		9,257		333,807

CA, Inc.		19,975		359,750

McAfee, Inc.^(b)		8,014		377,059

Microsoft Corp.		389,989		9,156,942

Novell, Inc.^(b)		17,895		100,570

Oracle Corp.		200,243		4,381,317

Red Hat, Inc.^(b)		9,632		332,785

Symantec Corp.^(b)		40,862		556,949

				15,599,179

Thrifts & Mortgage Finance–0.1%
Hudson City Bancorp, Inc.		24,240		279,366

People’s United Financial, Inc.		19,167		243,804

				523,170

Tires & Rubber–0.0%
Goodyear Tire & Rubber Co. (The)^(b)		12,424		114,798

Tobacco–1.7%
Altria Group, Inc.		106,521		2,377,549

Lorillard, Inc.		7,848		596,526

Philip Morris International, Inc.		94,721		4,872,448

Reynolds American, Inc.		8,600		469,044

				8,315,567

Trading Companies & Distributors–0.1%
Fastenal Co.		6,708		303,671

WW Grainger, Inc.		3,184		336,836

				640,507

Trucking–0.0%
Ryder System, Inc.		2,689		103,177

Wireless Telecommunication Services–0.4%
American Tower Corp. (Class A)^(b)		20,634		966,909

MetroPCS Communications, Inc.^(b)		13,368		119,510

Sprint Nextel Corp.^(b)		152,476		622,102

				1,708,521

Total Common Stocks & Other Equity Interests (Cost $490,050,906)				486,458,301

Money Market Funds–0.7%
Liquid Assets Portfolio–Institutional Class^(d)		1,565,248		1,565,248

Premier Portfolio–Institutional Class^(d)		1,565,248		1,565,248

Total Money Market Funds (Cost $3,130,496)				3,130,496

TOTAL INVESTMENTS–100.0% (Cost $493,181,402)				489,588,797

OTHER ASSETS LESS LIABILITIES–0.0%				197,383

NET ASSETS–100.0%			$	489,786,180

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

17 Invesco S&P 500 Index Fund

Statement of Changes in Net Assets

For the years ended August 31, 2010 and 2009


	2010			2009

Operations:
Net investment income	$	7,024,327		$	10,052,427

Net realized gain (loss)		(2,587,089	)		(36,570,308	)

Change in net unrealized appreciation (depreciation)		23,329,673			(146,799,390	)

Net increase (decrease) in net assets resulting from operations		27,766,911			(173,317,271	)

Distributions to shareholders from net investment income:
Class A shares		(7,210,852	)		(7,399,930	)

Class B shares		(1,207,325	)		(1,543,020	)

Class C shares		(1,049,628	)		(998,587	)

Class Y shares		(532,217	)		(558,487	)

Total distributions from net investment income		(10,000,022	)		(10,500,024	)

Net decrease from transactions in shares of beneficial interest		(84,953,972	)		(98,923,340	)

Net decrease in net assets		(67,187,083	)		(282,740,635	)

Net assets:
Beginning of year		556,973,263			839,713,898

End of year (includes undistributed net investment income of $5,387,492 and $8,473,456, respectively)	$	489,786,180		$	556,973,263

Notes to Financial Statements

August 31, 2010

NOTE 1—Significant Accounting Policies

Invesco S&P 500 Index Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust), formerly AIM Counselor Series Trust (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of twenty-two separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

Prior to June 1, 2010, the Fund operated as Morgan Stanley S&P 500 Index Fund (the “Acquired Fund”). The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

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

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

The Fund’s investment objective is to provide investment results that, before expenses, correspond to the total return (i.e., the combination of capital changes and income) of the Standard & Poor’s^® 500 Composite Stock Price Index.

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


A.		Security Valuations — Securities, including restricted securities, are valued according to the following policy.
		A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

21 Invesco S&P 500 Index Fund


		Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
		Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
		Foreign securities (including foreign exchange contracts) 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 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 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 economical 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 are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask 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.
		Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.		Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income 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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
		The Fund allocates 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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.		Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

22 Invesco S&P 500 Index Fund


		The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.		Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.		Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.		Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.		Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
J.		Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Net Assets	Rate

First $2 billion		0	.12%

Over $2 billion		0	.10%

Prior to the Reorganization, the Acquired Fund paid at advisory fee of $512,574 to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

Effective at the date of Reorganization, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, and Class Y shares to 0.65%, 1.40%, 1.40% and 0.40%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

Prior to the Reorganization, MSIA had voluntarily agreed to cap operating expenses (except for brokerage and 12b-1 fees) by assuming the Acquired Fund’s “other expenses” and/or waiving the Acquired Fund’s advisory fees, and Morgan Stanly Services Company Inc. (the “Administrator”) had agreed to waive the Acquired Fund’s administrative fees, to the extent such operating expenses exceed 0.34% of the average daily net assets of the Acquired Fund on an annualized basis.

23 Invesco S&P 500 Index Fund

For the year ended August 31, 2010, the Adviser and MSIA waived advisory fees of $1,057 and $522,738, respectively.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, the Acquired Fund paid an administration fee of $341,615 to Morgan Stanley Services Company, Inc. For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Prior to the Reorganization, the Acquired Fund paid $751,575 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates; (1) Class A — up to 0.25% of the average daily net assets of Class A shares; (2) Class B — up to 1.00% of the average daily net assets of Class B shares and (3) Class C — up to 1.00% of the average daily net assets of Class C shares.

For the year ended August 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period June 1, 2010 to August 31, 2010, IDI advised the Fund that IDI retained $4,074 in front-end sales commissions from the sale of Class A shares and $28, $29,438 and $1,212 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period September 1, 2009 to May 31, 2010, MSDI retained $63,474 in front-end sales commissions from the sale of Class A shares and $10,258, $79,703 and $6,643 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information


	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.


	Level 1			Level 2		Level 3		Total

Equity Securities	$	489,588,797		$	—	$	—	$	489,588,797

Futures*		(76,956	)		—		—		(76,956	)

Total Investments	$	489,511,841		$	—	$	—	$	489,511,841


*	Unrealized appreciation (depreciation).

24 Invesco S&P 500 Index Fund

NOTE 4—Derivative Investments

Value of Derivative Instruments at Period-End

The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of August 31, 2010:


	Value
Risk Exposure/ Derivative Type	Assets		Liabilities

Equity risk
Futures contracts^(a)	$	—	$	(76,956	)


^(a)		Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the year ended August 31, 2010

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


	Location of Gain (Loss) on
	Statement of Operations
	Futures*

Realized Gain
Equity risk	$	242,810

Change in Unrealized Appreciation (Depreciation)
Equity risk		(317,913	)

Total	$	(75,103	)


*	The average value of futures outstanding during the period was $4,879,547.

Open Futures Contracts

Unrealized

Number of

Month/

Appreciation

Contract

Contracts

Commitment

Value

(Depreciation)

S&P 500 E-Mini

September 2010

4,612,520

(76,956

)

NOTE 5—Trustees’ and Officers’ Fees and Benefits

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

25 Invesco S&P 500 Index Fund

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended August 31, 2010 and 2009:


	2010		2009

Ordinary income	$	10,000,022	$	10,500,024

Tax Components of Net Assets at Period-End:


	2010

Undistributed ordinary income	$	5,307,916

Net unrealized appreciation (depreciation) — investments		(32,328,582	)

Post-October deferrals		(1,256,773	)

Capital loss carryforward		(52,464,539	)

Shares of beneficial interest		570,528,158

Total net assets	$	489,786,180

The Fund has a capital loss carryforward as of August 31, 2010 which expires as follows:


	Capital Loss
Expiration	Carryforward*

August 31, 2012	$	20,294,770

August 31, 2017		12,322,416

August 31, 2018		19,847,353

Total capital loss carryforward	$	52,464,539


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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended August 31, 2010 was $40,437,527 and $125,287,807, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	99,368,475

Aggregate unrealized (depreciation) of investment securities		(131,697,057	)

Net unrealized appreciation (depreciation) of investment securities	$	(32,328,582	)

Cost of investments for tax purposes is $521,917,379.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of real estate investment trust investments, on August 31, 2010, undistributed net investment income was decreased by $110,035, undistributed net realized gain (loss) was increased by $107,240 and shares of beneficial interest increased by $2,795. This reclassification had no effect on the net assets of the Fund.

26 Invesco S&P 500 Index Fund

NOTE 10—Share Information


	Summary of Share Activity

	For the years ended August 31,
	2010^(a)						2009
	Shares			Amount			Shares			Amount

Class A
Sold		3,738,277		$	44,680,433			6,646,915		$	64,439,524

Conversion from Class B		645,541			7,705,077			436,272			4,262,377

Reinvestment of dividends		588,507			7,062,080			788,953			7,274,152

Redeemed		(6,942,030	)		(82,784,512	)		(8,240,060	)		(80,705,634	)

Net increase (decrease) — Class A		(1,969,705	)		(23,336,922	)		(367,920	)		(4,729,581	)

Class B
Sold		156,856			1,823,526			616,503			5,827,518

Conversion to Class A		(660,060	)		(7,705,077	)		(446,198	)		(4,262,377	)

Reinvestment of dividends		97,614			1,150,870			164,097			1,485,074

Redeemed		(3,997,776	)		(46,771,647	)		(6,211,635	)		(59,812,812	)

Net increase (decrease) — Class B		(4,403,366	)		(51,502,328	)		(5,877,233	)		(56,762,597	)

Class C
Sold		324,099			3,728,918			838,920			7,834,836

Reinvestment of dividends		87,603			1,022,327			108,883			976,681

Redeemed		(1,229,575	)		(14,262,349	)		(1,767,363	)		(16,865,136	)

Net increase (decrease) — Class C		(817,873	)		(9,511,104	)		(819,560	)		(8,053,619	)

Class Y
Sold		164,078			1,976,792			382,657			3,893,883

Reinvestment of dividends		43,861			531,151			59,756			555,732

Redeemed		(257,580	)		(3,111,561	)		(3,630,056	)		(33,827,158	)

Net increase (decrease) — Class Y		(49,641	)		(603,618	)		(3,187,643	)		(29,377,543	)

Net increase (decrease) in share activity		(7,240,585	)	$	(84,953,972	)		(10,252,356	)	$	(98,923,340	)


^(a)		There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 77% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

27 Invesco S&P 500 Index Fund

NOTE 11—Financial Highlights

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


	Class A
	Year ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of period	$	11.09		$	13.94		$	16.01		$	14.17		$	13.27

Income (loss) from investment operations:
Net investment income^(a)		0.18			0.21			0.23			0.21			0.18

Net realized and unrealized gain (loss)		0.33			(2.83	)		(2.05	)		1.85			0.91

Total income (loss) from investment operations		0.51			(2.62	)		(1.82	)		2.06			1.09

Less dividends from net investment income		(0.24	)		(0.23	)		(0.25	)		(0.22	)		(0.19	)

Net asset value, end of period	$	11.36		$	11.09		$	13.94		$	16.01		$	14.17

Total return^(b)		4.44	%		(18.43	)%		(11.55	)%		14.60	%		8.24	%

Net assets, end of period, in millions^(c)	$	335,583		$	349		$	444		$	521		$	452

Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements		0.60	%^(d)		0.59	%^(e)		0.59	%^(e)		0.58	%^(e)		0.62	%

Without fee waivers and/or expense reimbursements		0.69	%^(d)		0.74	%^(e)		0.66	%^(e)		0.65	%^(e)		0.66	%

Ratio of net investment income to average net assets		1.47	%^(d)		2.11	%^(e)(f)		1.50	%^(e)(f)		1.37	%^(e)(f)		1.32	%^(f)

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—

Supplemental data:
Portfolio turnover^(h)		7	%		7	%		10	%		3	%		4	%


^(a)		Calculated using average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges.
^(c)		Net assets, end of period, for the year ended August 31, 2010 is stated in thousands.
^(d)		Ratios are based on average daily net assets (000’s omitted) of $365,074.
^(e)		The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(f)		Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 1.96%, 1.43%, 1.30% and 1.28% for the years ended August 31, 2009 through August 31, 2006, respectively.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

28 Invesco S&P 500 Index Fund

NOTE 11—Financial Highlights—(continued)


	Class B
	Year ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of period	$	10.83		$	13.54		$	15.52		$	13.72		$	12.83

Income (loss) from investment operations:
Net investment income^(a)		0.08			0.13			0.11			0.09			0.07

Net realized and unrealized gain (loss)		0.33			(2.73	)		(1.99	)		1.79			0.87

Total income (loss) from investment operations		0.41			(2.60	)		(1.88	)		1.88			0.94

Less dividends from net investment income		(0.14	)		(0.11	)		(0.10	)		(0.08	)		(0.05	)

Net asset value, end of period	$	11.10		$	10.83		$	13.54		$	15.52		$	13.72

Total return^(b)		3.68	%		(19.06	)%		(12.20	)%		13.76	%		7.35	%

Net assets, end of period, in millions^(c)	$	64,102		$	110		$	217		$	377		$	534

Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements		1.35	%^(d)		1.34	%^(e)		1.34	%^(e)		1.34	%^(e)		1.38	%

Without fee waivers and/or expense reimbursements		1.44	%^(d)		1.49	%^(e)		1.41	%^(e)		1.41	%^(e)		1.42	%

Ratio of net investment income to average net assets		0.72	%^(d)		1.36	%^(e)(f)		0.75	%^(e)(f)		0.61	%^(e)(f)		0.56	%^(f)

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—

Supplemental data:
Portfolio turnover^(h)		7	%		7	%		10	%		3	%		4	%


^(a)		Calculated using average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges.
^(c)		Net assets, end of period, for the year ended August 31, 2010 is stated in thousands.
^(d)		Ratios are based on average daily net assets (000’s omitted) of $92,032.
^(e)		The ratios reflect the rebate of certain Portfolio expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(f)		Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 1.21%, 0.68%, 0.54% and 0.52% for the years ended August 31, 2009 through August 31, 2006, respectively.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

29 Invesco S&P 500 Index Fund

NOTE 11—Financial Highlights—(continued)


	Class C
	Year ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of period	$	10.74		$	13.46		$	15.46		$	13.70		$	12.83

Income (loss) from investment operations:
Net investment income^(a)		0.08			0.13			0.11			0.09			0.08

Net realized and unrealized gain (loss)		0.33			(2.72	)		(1.98	)		1.78			0.87

Total income (loss) from investment operations		0.41			(2.59	)		(1.87	)		1.87			0.95

Less dividends from net investment income		(0.16	)		(0.13	)		(0.13	)		(0.11	)		(0.08	)

Net asset value, end of period	$	10.99		$	10.74		$	13.46		$	15.46		$	13.70

Total return^(b)		3.71	%		(19.01	)%		(12.21	)%		13.68	%		7.45	%

Net assets, end of period, in millions^(c)	$	66,933		$	74		$	104		$	132		$	132

Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements		1.35	%^(d)		1.34	%^(e)		1.33	%^(e)		1.33	%^(e)		1.34	%

Without fee waivers and/or expense reimbursements		1.44	%^(d)		1.49	%^(e)		1.40	%^(e)		1.40	%^(e)		1.38	%

Ratio of net investment income to average net assets		0.72	%^(d)		1.36	%^(e)(f)		0.76	%^(e)(f)		0.62	%^(e)(f)		0.60	%^(f)

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—

Supplemental data:
Portfolio turnover^(h)		7	%		7	%		10	%		3	%		4	%


^(a)		Calculated using average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges.
^(c)		Net assets, end of period, for the year ended August 31, 2010 is stated in thousands.
^(d)		Ratios are based on average daily net assets (000’s omitted) of $75,542.
^(e)		The ratios reflect the rebate of certain Portfolio expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(f)		Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 1.21%, 0.69%, 0.55% and 0.56% for the years ended August 31, 2009 through August 31, 2006, respectively.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

30 Invesco S&P 500 Index Fund

NOTE 11—Financial Highlights—(continued)


	Class Y
	Year ended August 31,
	2010			2009			2008			2007			2006

Net asset value, beginning of period	$	11.20		$	14.09		$	16.17		$	14.31		$	13.40

Income (loss) from investment operations:
Net investment income^(a)		0.21			0.25			0.27			0.25			0.21

Net realized and unrealized gain (loss)		0.33			(2.87	)		(2.06	)		1.86			0.92

Total income (loss) from investment operations		0.54			(2.62	)		(1.79	)		2.11			1.13

Less dividends from net investment income		(0.26	)		(0.27	)		(0.29	)		(0.25	)		(0.22	)

Net asset value, end of period	$	11.48		$	11.20		$	14.09		$	16.17		$	14.31

Total return^(b)		4.72	%		(18.22	)%		(11.28	)%		14.86	%		8.46	%

Net assets, end of period, in millions^(c)	$	23,168		$	23		$	74		$	96		$	99

Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements		0.35	%^(d)		0.34	%^(e)		0.34	%^(e)		0.34	%^(e)		0.38	%

Without fee waivers and/or expense reimbursements		0.44	%^(d)		0.49	%^(e)		0.41	%^(e)		0.41	%^(e)		0.42	%

Ratio of net investment income to average net assets		1.72	%^(d)		2.36	%^(e)(f)		1.75	%^(e)(f)		1.61	%^(e)(f)		1.56	%^(f)

Rebate from affiliates		—			0.00	%^(g)		0.00	%^(g)		0.00	%^(g)		—

Supplemental data:
Portfolio turnover^(h)		7	%		7	%		10	%		3	%		4	%


^(a)		Calculated using average shares outstanding.
^(b)		Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.
^(c)		Net assets, end of period, for the year ended August 31, 2010 is stated in thousands.
^(d)		Ratios are based on average daily net assets (000’s omitted) of $24,567.
^(e)		The ratios reflect the rebate of certain Portfolio expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliates”.
^(f)		Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 2.21%, 1.68%, 1.54% and 1.52% for the years ended August 31, 2009 through August 31, 2006, respectively.
^(g)		Amount is less than 0.005%.
^(h)		Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 12—Change in Independent Registered Public Accounting Firm

31 Invesco S&P 500 Index Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Counselor Series Trust (Invesco Counselor Series Trust)

and Shareholders of Invesco S&P 500 Index Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco S&P 500 Index Fund (formerly known as Morgan Stanley S&P 500 Index Fund; one of the funds constituting AIM Counselor Series Trust (Invesco Counselor Series Trust), hereafter referred to as the “Fund”) at August 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of changes in net assets for the year ended August 31, 2009 and the financial highlights of the Fund for the periods ended August 31, 2009 and prior were audited by other independent auditors whose report dated October 27, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

October 20, 2010

Houston, Texas

32 Invesco S&P 500 Index Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(03/01/10)		(08/31/10)¹		Period²		(08/31/10)		Period²		Ratio
A	$	1,000.00	$	957.00	$	2.91	$	1,022.23	$	3.01		0.59	%

B		1,000.00		953.60		6.60		1,018.45		6.82		1.34

C		1,000.00		954.00		6.60		1,018.45		6.82		1.34

I		1,000.00		958.30		1.68		1,023.49		1.73		0.34


¹	The actual ending account value is based on the actual total return of the Fund for the period March 1, 2010 through August 31, 2010, 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 184/365 to reflect the most recent fiscal half year.

33 Invesco S&P 500 Index Fund


	Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the Board) of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco S&P 500 Index Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements


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


B.	Fund Performance


C.	Advisory and Sub-Advisory Fees and Fee Waivers


D.	Economies of Scale and Breakpoints

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


E.	Profitability and Financial Resources


F.	Collateral Benefits to Invesco Advisers and its Affiliates

34 Invesco S&P 500 Index Fund

Trustees and Officers

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Interested Persons

Martin L. Flanagan¹ — 1960
Trustee

2007

214

None

Philip A. Taylor² — 1954
Trustee, President and Principal
Executive Officer

2006

214

None

Wayne M. Whalen³ — 1939 Trustee

2010

Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

232

Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett — 1944
Trustee and Chair

2003

Chairman, Crockett Technology Associates (technology consulting company)

214

ACE Limited (insurance company); and Investment Company Institute

David C. Arch — 1945
Trustee

2010

Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.

232


¹		Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.

²		Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.

³		Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Bob R. Baker — 1936
Trustee

1983

Retired

Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

214

None

Frank S. Bayley — 1939
Trustee

2003

Retired

Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

214

None

James T. Bunch — 1942
Trustee

2003

Founder, Green, Manning & Bunch Ltd. (investment banking firm)

Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

214

Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer — 1940
Trustee

2010

232

Albert R. Dowden — 1941
Trustee

2003

214

Board of Nature’s Sunshine Products, Inc.

Jack M. Fields — 1952
Trustee

2003

214

Administaff

Carl Frischling — 1937
Trustee

2003

Partner, law firm of Kramer Levin Naftalis and Frankel LLP

214

Director, Reich &
Tang Funds (16
portfolios)

Prema Mathai-Davis — 1950
Trustee

2003

Retired

Formerly: Chief Executive Officer, YWCA of the U.S.A.

214

None

Lewis F. Pennock — 1942
Trustee

2003

Partner, law firm of Pennock & Cooper

214

None

Larry Soll — 1942
Trustee

1997

Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

214

None

T-2

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Independent Trustees

Hugo F. Sonnenschein — 1940
Trustee

2010

232

Raymond Stickel, Jr. — 1944
Trustee

2005

Retired

Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

214

None

Other Officers

Russell C. Burk — 1958
Senior Vice President and
Senior Officer

2005

Senior Vice President and Senior Officer of Invesco Funds

N/A

John M. Zerr — 1962
Senior Vice President, Chief
Legal Officer and Secretary

2006

N/A

Lisa O. Brinkley — 1959
Vice President

2004

N/A

Sheri Morris — 1964
Vice President, Treasurer and
Principal Financial Officer

2003

N/A

T-3

Trustees and Officers — (continued)

Number of

Funds in

Fund Complex

Name, Year of Birth and

Trustee and/

Principal Occupation(s)

Overseen by

Other Directorship(s)

Position(s) Held with the Trust

or Officer Since

During Past 5 Years

Trustee

Held by Trustee

Other Officers

Karen Dunn Kelley — 1960
Vice President

2003

N/A

Lance A. Rejsek — 1967
Anti-Money Laundering
Compliance Officer

2005

N/A

Todd L. Spillane — 1958
Chief Compliance Officer

2006

N/A


Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678

Counsel to the Fund	Counsel to the Independent	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Trustees	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	P.O. Box 4739	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77210-4739	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

Invesco privacy policy

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information



		MS-SPI-AR-1		Invesco Distributors, Inc.


ITEM 2.		CODE OF ETHICS.

As of the end of the period covered by this report, the Registrant had adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer (“PEO”) and principal financial officer (“PFO”). The Code was amended in June, 2010, to (i) add an individual to Exhibit A and (ii) update the names of certain legal entities. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.


ITEM 3.		AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee. The Audit Committee financial expert is Raymond Stickel, Jr. Mr. Stickel is “independent” within the meaning of that term as used in Form N-CSR.


ITEM 4.		PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Fees Billed by PWC Related to the Registrant

The following information relates to the series funds of the Registrant covered by this report and includes information pertaining to principal accountant fees and services rendered to such funds for the two most recently completed fiscal years or, if shorter, since a fund’s commencement of operations:


			Percentage of Fees
			Billed Applicable					Percentage of Fees
			to Non-Audit					Billed Applicable to
			Services Provided					Non-Audit Services
	Fees Billed for		for fiscal year end					Provided for fiscal
	Services Rendered		2010 Pursuant to			Fees Billed for		year end 2009
	to the Registrant		Waiver of Pre-			Services Rendered		Pursuant to Waiver
	for fiscal year end		Approval			to the Registrant for		of Pre-Approval
	2010		Requirement⁽¹⁾			fiscal year end 2009		Requirement⁽¹⁾

Audit Fees	$	557,050		N/A		$	296,296		N/A
Audit-Related Fees⁽²⁾	$	0		0	%	$	6,000		0	%
Tax Fees⁽³⁾	$	121,874		0	%	$	59,206		0	%
All Other Fees	$	0		0	%	$	0		0	%

Total Fees	$	678,924		0	%	$	361,502		0	%

PWC billed the Registrant aggregate non-audit fees of $121,874 for the fiscal year ended 2010, and $65,206 for the fiscal year ended 2009, for non-audit services rendered to the Registrant.


(1)		With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.

(2)		Audit-Related Fees for the fiscal year ended August 31, 2009 includes fees billed for completing agreed-upon procedures related to fund mergers.

(3)		Tax fees for the fiscal year end August 31, 2010 includes fees billed for reviewing tax returns. Tax fees for the fiscal year end August 31, 2009 includes fees billed for reviewing tax returns and consultation services.

Fees Billed by PWC Related to Invesco and Invesco Affiliates

PWC billed Invesco Advisers, Inc. (“Invesco”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Invesco Affiliates”) aggregate fees for pre-approved non-audit services rendered to Invesco and Invesco Affiliates for the last two fiscal years or, if shorter, since a fund’s commencement of operations as follows:


	Fees Billed for Non-					Fees Billed for Non-
	Audit Services					Audit Services
	Rendered to Invesco		Percentage of Fees			Rendered to Invesco		Percentage of Fees
	and Invesco		Billed Applicable to			and Invesco		Billed Applicable to
	Affiliates for fiscal		Non-Audit Services			Affiliates for fiscal		Non-Audit Services
	year end 2010 That		Provided for fiscal			year end 2009 That		Provided for fiscal
	Were Required		year end 2010			Were Required		year end 2009
	to be Pre-Approved		Pursuant to Waiver			to be Pre-Approved		Pursuant to Waiver
	by the Registrant’s		of Pre-Approval			by the Registrant’s		of Pre-Approval
	Audit Committee		Requirement⁽¹⁾			Audit Committee		Requirement⁽¹⁾

Audit-Related Fees	$	0		0	%	$	0		0	%
Tax Fees	$	0		0	%	$	0		0	%
All Other Fees	$	0		0	%	$	0		0	%

Total Fees⁽²⁾	$	0		0	%	$	0		0	%


(1)		With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant, Invesco and Invesco Affiliates to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.

(2)		Including the fees for services not required to be pre-approved by the registrant’s audit committee, PWC billed Invesco and Invesco Affiliates aggregate non-audit fees of $0 for the fiscal year ended 2010, and $0 for the fiscal year ended 2009, for non-audit services rendered to Invesco and Invesco Affiliates.

		The Audit Committee also has considered whether the provision of non-audit services that were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved pursuant to SEC regulations, if any, is compatible with maintaining PWC’s independence. To the extent that such services were provided, the Audit Committee determined that the provision of such services is compatible with PWC maintaining independence with respect to the Registrant.

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the Invesco Funds (the “Funds”)
Last Amended May 4, 2010

Statement of Principles

Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committees of the Funds’ (the “Audit Committees”) Board of Trustees (the “Board”) are responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committees pre-approve the audit and non-audit services provided to the Funds by each Auditor, as well as all non-audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.

Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committees (“general pre-approval”) or require the specific pre-approval of the Audit Committees (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committees. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committees before payment is made. The Audit Committees will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.

The Audit Committees will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee generally on an annual basis. The term of any general pre-approval runs from the date of such pre-approval through September 30^th of the following year, unless the Audit Committees consider a different period and state otherwise. The Audit Committees will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committees in fulfilling their responsibilities.

Delegation

The Audit Committees may from time to time delegate pre-approval authority to one or more of its members who are Independent Trustees. All decisions to pre-approve a service by a delegated member shall be reported to the Audit Committees at the next quarterly meeting.

Audit Services

The annual audit services engagement terms will be subject to specific pre-approval of the Audit Committees. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committees will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.

In addition to the annual Audit services engagement, the Audit Committees may grant either general or specific pre-approval of other audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the

inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

Non-Audit Services

The Audit Committees may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committees believe that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committees’ general principles and policies as set forth herein.

Audit-Related Services

“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; and agreed-upon procedures related to mergers, compliance with ratings agency requirements and interfund lending activities.

Tax Services

“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committees will scrutinize carefully the retention of the Auditor in connection with a transaction initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committees will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.

No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.

Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committees’ pre-approval of permissible Tax services, the Auditor shall:

Describe in writing to the Audit Committees, which writing may be in the form of the proposed engagement letter:

	a.		The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and

	b.		Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service;

	2.		Discuss with the Audit Committees the potential effects of the services on the independence of the Auditor; and

	3.		Document the substance of its discussion with the Audit Committees.

All Other Auditor Services

The Audit Committees may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.

Pre-Approval Fee Levels or Established Amounts

Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committees. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committees at the quarterly Audit Committees meeting and will require specific approval by the Audit Committees before payment is made. The Audit Committees will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.

Procedures

Generally on an annual basis, Invesco Advisers, Inc. (“Invesco”) will submit to the Audit Committees for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.

Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committees will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committees. The Audit Committees will be informed at the next quarterly scheduled Audit Committees meeting of any such services for which the Auditor rendered an invoice and whether such services and fees had been pre-approved and if so, by what means.

Each request to provide services that require specific approval by the Audit Committees shall be submitted to the Audit Committees jointly by the Fund’s Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the policies and procedures and the SEC Rules.

Each request to provide tax services under either the general or specific pre-approval of the Audit Committees will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will discuss with the Audit Committees the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.

Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committees for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.

On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.

The Audit Committees have designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committees on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management of Invesco will immediately report to the chairman of the Audit Committees any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management of Invesco.

Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures

Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)

	•		Bookkeeping or other services related to the accounting records or financial statements of the audit client

	•		Financial information systems design and implementation

	•		Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

	•		Actuarial services

	•		Internal audit outsourcing services

Categorically Prohibited Non-Audit Services

	•		Management functions

	•		Human resources

	•		Broker-dealer, investment adviser, or investment banking services

	•		Legal services

	•		Expert services unrelated to the audit

	•		Any service or product provided for a contingent fee or a commission

	•		Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance

	•		Tax services for persons in financial reporting oversight roles at the Fund

	•		Any other service that the Public Company Oversight Board determines by regulation is impermissible.


ITEM 5.		AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.


ITEM 6.		SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.


ITEM 7.		DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 8.		PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES.

Not applicable.


ITEM 9.		PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.


ITEM 10.		SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None


ITEM 11.		CONTROLS AND PROCEDURES.

(a)

As of September 16, 2010, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess


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Federal and State Income Tax

Qualified Dividend Income*			0.00%
Corporate Dividends Received Deduction*			0.00%
U.S. Treasury Obligations*			10.72%


*		Funds included are: Invesco California Tax-Free Income Fund, Invesco Core Plus Bond Fund, Invesco Dividend Growth Securities Fund, Invesco Equally-Weighted S&P 500 Fund, Invesco Floating Rate Fund, Invesco Fundamental Value Fund, Invesco Large Cap Relative Value Fund, Invesco Multi-Sector Fund, Invesco New York Tax-Free Income Fund, Invesco S&P 500 Index Fund, Invesco Select Real Estate Income Fund, Invesco Structured Core Fund, Invesco Structured Growth Fund, Invesco Structured Value Fund, Invesco Van Kampen American Franchise Fund, Invesco Van Kampen Core Equity Fund, Invesco Van Kampen Equity and Income Fund, Invesco Van Kampen Equity Premium Income Fund, Invesco Van Kampen Growth and Income Fund, Invesco Van Kampen Pennsylvania Tax Free Income Fund and Invesco Van Kampen Small Cap Growth Fund.



2		Letters to Shareholders
4		Performance Summary
4		Management Discussion
6		Long-Term Fund Performance
8		Supplemental Information
9		Schedule of Investments
16		Financial Statements
18		Notes to Financial Statements
26		Financial Highlights
27		Auditor’s Report
28		Fund Expenses
31		Tax Information
31		Approval of Investment Advisory and Sub-Advisory Agreements
T-1		Trustees and Officers


Assets:
Investments, at value (Cost $9,482,058)	$	9,811,792

Investments in affiliated money market funds, at value and cost		2,048,228

Total investments, at value (Cost $11,530,286)		11,860,020

Cash		10,609

Receivables for:
Investments sold		13,251

Variation margin		3,406

Fund shares sold		14,126

Dividends and interest		75,740

Fund expenses absorbed		36,858

Investment for trustee deferred compensation and retirement plans		1,953

Other assets		22,722

Total assets		12,038,685

Liabilities:
Payables for:
Investments purchased		2,530,220

Fund shares reacquired		637

Dividends		1,150

Accrued fees to affiliates		17,993

Accrued other operating expenses		58,235

Trustee deferred compensation and retirement plans		1,953

Total liabilities		2,610,188

Net assets applicable to shares outstanding	$	9,428,497

Net assets consist of:
Shares of beneficial interest	$	8,997,800

Undistributed net investment income		(2,086	)

Undistributed net realized gain		118,971

Unrealized appreciation		313,812

	$	9,428,497

Net Assets:
Class A	$	7,219,238

Class B	$	954,222

Class C	$	844,348

Class R	$	152,642

Class Y	$	143,544

Institutional Class	$	114,503

Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		671,867

Class B		88,831

Class C		78,581

Class R		14,207

Class Y		13,360

Institutional Class		10,657

Class A:
Net asset value per share	$	10.75

Maximum offering price per share
(Net asset value of $10.75 divided by 95.25%)	$	11.29

Class B:
Net asset value and offering price per share	$	10.74

Class C:
Net asset value and offering price per share	$	10.74

Class R:
Net asset value and offering price per share	$	10.74

Class Y:
Net asset value and offering price per share	$	10.74

Institutional Class:
Net asset value and offering price per share	$	10.74


Investment income:
Interest	$	254,280

Dividends from affiliated money market funds		1,890

Total investment income		256,170

Expenses:
Advisory fees		26,080

Administrative services fees		50,000

Custodian fees		10,446

Distribution fees:
Class A		10,999

Class B		5,730

Class C		4,523

Class R		715

Transfer agent fees — A, B, C, R and Y		6,719

Transfer agent fees — Institutional		57

Trustees’ and officers’ fees and benefits		22,996

Registration and filing fees		100,974

Reports to shareholders		23,237

Professional services fees		53,909

Other		15,931

Total expenses		332,316

Less: Fees waived and expenses reimbursed		(274,547	)

Net expenses		57,769

Net investment income		198,401

Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		122,667

Futures contracts		30,025

		152,692

Change in net unrealized appreciation (depreciation) of:
Investment securities		237,635

Futures contracts		(5,591	)

		232,044

Net realized and unrealized gain		384,736

Net increase in net assets resulting from operations	$	583,137


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


	Shares		Value

Industrial Machinery–0.00%
Xerium Technologies, Inc.^(g)		1,766	$	17,766

Leisure Products–0.00%
True Temper Sports Inc.^(g)		2,971		10,400

Marine–0.01%
US Shipping LLC^(g)		93,994		70,244

Oil & Gas Storage & Transportation–0.02%
Sem Group L.P.^(g)		6,668		157,532

Publishing–0.06%
F&W Publications, Inc.^(g)		288		0

F&W Publications, Inc.–Wts., expiring 12/09/17^(g)		496		0

MediaNews Group, Inc.^(g)		1		16

Reader’s Digest Association, Inc. (The)^(g)		22,917		441,152

				441,168

Total Domestic Common Stocks & Other Equity Interests (Cost $22,412,265)				15,152,434


	Shares

Money Market Funds–8.61%
Liquid Assets Portfolio–Institutional Class^(k)		29,336,483		29,336,483

Premier Portfolio–Institutional Class^(k)		29,336,483		29,336,483

Total Money Market Funds (Cost $58,672,966)				58,672,966

TOTAL INVESTMENTS–107.23% (Cost $744,759,406)				730,858,494

OTHER ASSETS LESS LIABILITIES–(7.23)%				(49,278,089	)

NET ASSETS–100.00%			$	681,580,405


Assets:
Investments, at value (Cost $686,086,440)	$	672,185,528

Investments in affiliated money market funds, at value and cost		58,672,966

Total investments, at value (Cost $744,759,406)		730,858,494

Receivables for:
Investments sold		73,005,486

Investments matured		459,419

Fund shares sold		4,511,892

Dividends and interest		2,745,515

Investment for trustee deferred compensation and retirement plans		17,979

Other assets		61,581

Total assets		811,660,366

Liabilities:
Payables for:
Investments purchased		126,681,478

Fund shares reacquired		1,921,306

Amount due custodian		37,497

Dividends		879,164

Accrued fees to affiliates		305,679

Accrued other operating expenses		207,985

Trustee deferred compensation and retirement plans		46,852

Total liabilities		130,079,961

Net assets applicable to shares outstanding	$	681,580,405

Net assets consist of:
Shares of beneficial interest	$	733,700,897

Undistributed net investment income		185,047

Undistributed net realized gain (loss)		(38,404,627	)

Unrealized appreciation (depreciation)		(13,900,912	)

	$	681,580,405

Net Assets:
Class A	$	359,475,622

Class C	$	189,966,196

Class R	$	1,079,796

Class Y	$	93,478,638

Institutional Class	$	37,580,153

Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		48,102,110

Class C		25,532,631

Class R		144,176

Class Y		12,528,787

Institutional Class		5,027,951

Class A:
Net asset value per share	$	7.47

Maximum offering price per share
(Net asset value of $7.47 divided by 97.50%)	$	7.66

Class C:
Net asset value and offering price per share	$	7.44

Class R:
Net asset value and offering price per share	$	7.49

Class Y:
Net asset value and offering price per share	$	7.46

Institutional Class:
Net asset value and offering price per share	$	7.47


Investment income:
Interest	$	33,865,577

Dividends from affiliated money market funds		70,653

Total investment income		33,936,230

Expenses:
Advisory fees		3,400,237

Administrative services fees		160,759

Custodian fees		32,642

Distribution fees:
Class A		751,483

Class C		1,093,528

Class R		3,544

Transfer agent fees — A, C, R and Y		445,485

Transfer agent fees — Institutional		4,389

Trustees’ and officers’ fees and benefits		30,901

Other		562,233

Total expenses		6,485,201

Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(86,605	)

Net expenses		6,398,596

Net investment income		27,537,634

Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		9,257,683

Foreign currencies		(6	)

		9,257,677

Change in net unrealized appreciation of investment securities		10,038,366

Net realized and unrealized gain		19,296,043

Net increase in net assets resulting from operations	$	46,833,677


	Shares		Value

Systems Software–3.69%
Ariba Inc.^(b)		157,417	$	2,435,241

Microsoft Corp.		124,723		2,928,496

Oracle Corp.		104,215		2,280,224

Red Hat, Inc.^(b)		37,840		1,307,372

Rovi Corp.^(b)		29,119		1,266,968

				10,218,301

Technology Distributors–0.58%
Anixter International Inc.^(b)		35,329		1,620,895

Thrifts & Mortgage Finance–0.83%
Hudson City Bancorp, Inc.		199,776		2,302,418

Total Common Stocks & Other Equity Interests (Cost $293,378,871)				268,683,220

Money Market Funds–3.01%
Liquid Assets Portfolio–Institutional Class^(d)		4,172,253		4,172,253

Premier Portfolio–Institutional Class^(d)		4,172,203		4,172,203

Total Money Market Funds (Cost $8,344,456)				8,344,456

TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–99.98% (Cost $301,723,327)				277,027,676

Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–2.54%
Liquid Assets Portfolio–Institutional Class (Cost $7,028,130)^(d)(e)		7,028,130		7,028,130

TOTAL INVESTMENTS–102.52% (Cost $308,751,457)				284,055,806

OTHER ASSETS LESS LIABILITIES–(2.52)%				(6,979,786	)

NET ASSETS–100.00%			$	277,076,020


Assets:
Investments, at value (Cost $293,378,871)*	$	268,683,220

Investments in affiliated money market funds, at value and cost		15,372,586

Total investments, at value (Cost $308,751,457)		284,055,806

Receivables for:
Investments sold		8,321,581

Fund shares sold		48,464

Dividends		293,717

Investment for trustee deferred compensation and retirement plans		13,178

Other assets		31,291

Total assets		292,764,037

Liabilities:
Payables for:
Investments purchased		7,339,133

Fund shares reacquired		953,965

Collateral upon return of securities loaned		7,028,130

Accrued fees to affiliates		242,670

Accrued other operating expenses		71,761

Trustee deferred compensation and retirement plans		52,358

Total liabilities		15,688,017

Net assets applicable to shares outstanding	$	277,076,020

Net assets consist of:
Shares of beneficial interest	$	463,529,425

Undistributed net investment income (loss)		(89,332	)

Undistributed net realized gain (loss)		(161,670,494	)

Unrealized appreciation (depreciation)		(24,693,579	)

	$	277,076,020

Net Assets:
Class A	$	149,389,297

Class B	$	25,273,931

Class C	$	34,376,654

Class Y	$	829,567

Institutional Class	$	67,206,571

Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		8,118,785

Class B		1,448,448

Class C		1,971,389

Class Y		44,991

Institutional Class		3,580,793

Class A:
Net asset value per share	$	18.40

Maximum offering price per share (Net asset value of $18.40 divided by 94.50%)	$	19.47

Class B:
Net asset value and offering price per share	$	17.45

Class C:
Net asset value and offering price per share	$	17.44

Class Y:
Net asset value and offering price per share	$	18.44

Institutional Class:
Net asset value and offering price per share	$	18.77


*	At August 31, 2010, securities with an aggregate value of $6,787,174 were on loan to brokers.


Investment income:
Dividends (net of foreign withholding taxes of $116,473)	$	3,567,174

Dividends from affiliated money market funds (includes securities lending income of $40,095)		47,867

Total investment income		3,615,041

Expenses:
Advisory fees		2,403,576

Administrative services fees		120,365

Custodian fees		31,321

Distribution fees:
Class A		487,280

Class B		329,355

Class C		425,250

Transfer agent fees — A, B, C and Y		767,390

Transfer agent fees — Institutional		2,599

Trustees’ and officers’ fees and benefits		29,544

Other		171,289

Total expenses		4,767,969

Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(16,776	)

Net expenses		4,751,193

Net investment income (loss)		(1,136,152	)

Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $105,671)		(1,476,821	)

Foreign currencies		(28,761	)

		(1,505,582	)

Change in net unrealized appreciation of:
Investment securities		6,162,059

Foreign currencies		1,258

		6,163,317

Net realized and unrealized gain		4,657,735

Net increase in net assets resulting from operations	$	3,521,583


Federal and State Income Tax

Qualified Dividend Income*			99.43%
Corporate Dividends Received Deduction*			99.43%


Assets:
Investments, at value (Cost $197,115,905)	$	221,111,100

Investments in affiliated money market funds, at value and cost		6,911,986

Total investments, at value (Cost $204,027,891)		228,023,086

Receivables for:
Investments sold		2,301,776

Fund shares sold		604,903

Dividends and interest		323,622

Investment for trustee deferred compensation and retirement plans		20,298

Other assets		24,787

Total assets		231,298,472

Liabilities:
Payables for:
Investments purchased		5,031,642

Fund shares reacquired		282,990

Accrued fees to affiliates		152,103

Accrued other operating expenses		62,955

Trustee deferred compensation and retirement plans		74,906

Total liabilities		5,604,596

Net assets applicable to shares outstanding	$	225,693,876

Net assets consist of:
Shares of beneficial interest	$	238,089,563

Undistributed net investment income		1,135,981

Undistributed net realized gain (loss)		(37,526,863	)

Unrealized appreciation		23,995,195

	$	225,693,876

Net Assets:
Class A	$	147,568,004

Class B	$	1,675,775

Class C	$	16,691,898

Class Y	$	22,046,917

Institutional Class	$	37,711,282

Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		18,992,990

Class B		216,242

Class C		2,154,061

Class Y		2,845,044

Institutional Class		4,857,721

Class A:
Net asset value per share	$	7.77

Maximum offering price per share
(Net asset value of $7.75 divided by 94.50%)	$	8.22

Class B:
Net asset value and offering price per share	$	7.75

Class C:
Net asset value and offering price per share	$	7.75

Class Y:
Net asset value and offering price per share	$	7.75

Institutional Class:
Net asset value and offering price per share	$	7.76


Investment income:
Dividends	$	8,639,731

Dividends from affiliated money market funds		11,667

Interest		1,533,290

Total investment income		10,184,688

Expenses:
Advisory fees		1,439,691

Administrative services fees		50,000

Custodian fees		21,327

Distribution fees:
Class A		319,185

Class B		10,823

Class C		115,551

Transfer agent fees — A, B, C and Y		373,323

Transfer agent fees — Institutional		13,087

Trustees’ and officers’ fees and benefits		24,367

Other		174,273

Total expenses		2,541,627

Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(14,743	)

Net expenses		2,526,884

Net investment income		7,657,804

Realized and unrealized gain (loss) from:
Net realized gain from investment securities		12,627,123

Change in net unrealized appreciation of investment securities		16,465,933

Net realized and unrealized gain		29,093,056

Net increase in net assets resulting from operations	$	36,750,860


Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities	$	26,293,228

Aggregate unrealized (depreciation) of investment securities		(5,001,570	)

Net unrealized appreciation of investment securities	$	21,291,658

Cost of investments for tax purposes is $206,731,428.


	Shares		Value

Money Market Funds–1.87%
Liquid Assets Portfolio–Institutional Class^(e)		790,367	$	790,367

Premier Portfolio–Institutional Class^(e)		790,367		790,367

Total Money Market Funds (Cost $1,580,734)				1,580,734

TOTAL INVESTMENTS–99.82% (Cost $83,630,121)				84,412,690

OTHER ASSETS LESS LIABILITIES–0.18%				150,038

NET ASSETS–100.00%			$	84,562,728


Assets:
Investments, at value (Cost $82,049,387)	$	82,831,956

Investments in affiliated money market funds, at value and cost		1,580,734

Total investments, at value (Cost $83,630,121)		84,412,690

Receivables for:
Variation margin		6,375

Fund shares sold		17,772

Dividends		246,627

Fund expenses absorbed		19,066

Investment for trustee deferred compensation and retirement plans		16,697

Other assets		29,141

Total assets		84,748,368

Liabilities:
Payables for:
Fund shares reacquired		9,108

Accrued fees to affiliates		89,626

Accrued other operating expenses		51,258

Trustee deferred compensation and retirement plans		35,648

Total liabilities		185,640

Net assets applicable to shares outstanding	$	84,562,728

Net assets consist of:
Shares of beneficial interest	$	118,176,474

Undistributed net investment income		1,010,448

Undistributed net realized gain (loss)		(35,333,171	)

Unrealized appreciation		708,977

	$	84,562,728

Net Assets:
Class A	$	1,265,394

Class B	$	173,427

Class C	$	218,928

Class R	$	1,334,730

Class Y	$	142,318

Investor Class	$	69,634,559

Institutional Class	$	11,793,372

Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		201,071

Class B		27,862

Class C		35,216

Class R		212,853

Class Y		22,520

Investor Class		11,025,674

Institutional Class		1,865,523

Class A:
Net asset value per share	$	6.29

Maximum offering price per share
(Net asset value of $6.29 divided by 94.50%)	$	6.66

Class B:
Net asset value and offering price per share	$	6.22

Class C:
Net asset value and offering price per share	$	6.22

Class R:
Net asset value and offering price per share	$	6.27

Class Y:
Net asset value and offering price per share	$	6.32

Investor Class:
Net asset value and offering price per share	$	6.32

Institutional Class:
Net asset value and offering price per share	$	6.32


Investment income:
Dividends (net of foreign withholding taxes of $784)	$	2,083,861

Dividends from affiliated money market funds		3,011

Interest		4,264

Total investment income		2,091,136

Expenses:
Advisory fees		648,644

Administrative services fees		50,000

Custodian fees		8,264

Distribution fees:
Class A		4,405

Class B		1,953

Class C		3,120

Class R		5,098

Investor Class		211,200

Transfer agent fees — A, B, C, R, Y and Investor		200,799

Transfer agent fees — Institutional		15,150

Trustees’ and officers’ fees and benefits		23,400

Registration and filing fees		80,027

Other		91,865

Total expenses		1,343,925

Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(311,070	)

Net expenses		1,032,855

Net investment income		1,058,281

Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		3,018,197

Futures contracts		472,575

		3,490,772

Change in net unrealized appreciation (depreciation) of:
Investment securities		(3,698,593	)

Futures contracts		(329,253	)

		(4,027,846	)

Net realized and unrealized gain (loss)		(537,074	)

Net increase in net assets resulting from operations	$	521,207


Federal and State Income Tax

Qualified Dividend Income*			100%
Corporate Dividends Received Deduction*			100%
U.S. Treasury Obligations*			0.03%


	Shares		Value

Money Market Funds–1.26%
Liquid Assets Portfolio–Institutional Class^(e)		429,563	$	429,563

Premier Portfolio–Institutional Class^(e)		429,563		429,563

Total Money Market Funds (Cost $859,126)				859,126

TOTAL INVESTMENTS–99.93% (Cost $70,643,667)				68,282,527

OTHER ASSETS LESS LIABILITIES–0.07%				45,718

NET ASSETS–100.00%			$	68,328,245


Assets:
Investments, at value (Cost $69,784,541)	$	67,423,401

Investments in affiliated money market funds, at value and cost		859,126

Total investments, at value (Cost $70,643,667)		68,282,527

Receivables for:
Variation margin		3,200

Fund shares sold		5,939

Dividends		156,039

Investment for trustee deferred compensation and retirement plans		7,159

Other assets		25,025

Total assets		68,479,889

Liabilities:
Payables for:
Fund shares reacquired		81,364

Accrued fees to affiliates		4,261

Accrued other operating expenses		52,326

Trustee deferred compensation and retirement plans		13,693

Total liabilities		151,644

Net assets applicable to shares outstanding	$	68,328,245

Net assets consist of:
Shares of beneficial interest	$	114,882,449

Undistributed net investment income		704,863

Undistributed net realized gain (loss)		(44,870,381	)

Unrealized appreciation (depreciation)		(2,388,686	)

	$	68,328,245

Net Assets:
Class A	$	1,625,041

Class B	$	217,285

Class C	$	616,519

Class R	$	38,334

Class Y	$	94,661

Institutional Class	$	65,736,405

Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		211,246

Class B		28,802

Class C		81,771

Class R		4,993

Class Y		12,294

Institutional Class		8,526,291

Class A:
Net asset value per share	$	7.69

Maximum offering price per share
(Net asset value of $7.69 divided by 94.50%)	$	8.14

Class B:
Net asset value and offering price per share	$	7.54

Class C:
Net asset value and offering price per share	$	7.54

Class R:
Net asset value and offering price per share	$	7.68

Class Y:
Net asset value and offering price per share	$	7.70

Institutional Class:
Net asset value and offering price per share	$	7.71


Investment income:
Dividends	$	1,342,147

Dividends from affiliated money market funds		1,708

Total investment income		1,343,855

Expenses:
Advisory fees		482,051

Administrative services fees		50,000

Custodian fees		10,019

Distribution fees:
Class A		5,414

Class B		2,812

Class C		8,287

Class R		191

Transfer agent fees — A, B, C, R and Y		14,995

Transfer agent fees — Institutional		3,148

Trustees’ and officers’ fees and benefits		22,408

Registration and filing fees		68,074

Professional services fees		55,087

Other		25,834

Total expenses		748,320

Less: Fees waived and expenses reimbursed		(130,519	)

Net expenses		617,801

Net investment income		726,054

Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		6,959,000

Futures contracts		146,935

		7,105,935

Change in net unrealized appreciation (depreciation) of:
Investment securities		(7,545,451	)

Futures contracts		(108,803	)

		(7,654,254	)

Net realized and unrealized gain (loss)		(548,319	)

Net increase in net assets resulting from operations	$	177,735


Assets:
Investments, at value (Cost $59,416,757)	$	58,506,491

Investments in affiliated money market funds, at value and cost		513,556

Total investments, at value (Cost $59,930,313)		59,020,047

Receivables for:
Variation margin		2,080

Fund shares sold		24,116

Dividends		148,852

Fund expenses absorbed		8,625

Investment for trustee deferred compensation and retirement plans		7,058

Other assets		24,385

Total assets		59,235,163

Liabilities:
Payables for:
Fund shares reacquired		60,743

Accrued fees to affiliates		3,071

Accrued other operating expenses		51,403

Trustee deferred compensation and retirement plans		12,476

Total liabilities		127,693

Net assets applicable to shares outstanding	$	59,107,470

Net assets consist of:
Shares of beneficial interest	$	106,042,127

Undistributed net investment income		979,696

Undistributed net realized gain (loss)		(46,985,852	)

Unrealized appreciation (depreciation)		(928,501	)

	$	59,107,470

Net Assets:
Class A	$	1,796,458

Class B	$	420,221

Class C	$	203,616

Class R	$	50,816

Class Y	$	64,269

Institutional Class	$	56,572,090

Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		231,561

Class B		54,511

Class C		26,425

Class R		6,567

Class Y		8,271

Institutional Class		7,278,584

Class A:
Net asset value per share	$	7.76

Maximum offering price per share (Net asset value of $7.76 divided by 94.50%)	$	8.21

Class B:
Net asset value and offering price per share	$	7.71

Class C:
Net asset value and offering price per share	$	7.71

Class R:
Net asset value and offering price per share	$	7.74

Class Y:
Net asset value and offering price per share	$	7.77

Institutional Class:
Net asset value and offering price per share	$	7.77


Investment income:
Dividends (net of foreign withholding taxes of $-38)	$	1,568,450

Dividends from affiliated money market funds		(1,576	)

Total investment income		1,566,874

Expenses:
Advisory fees		415,143

Administrative services fees		50,000

Custodian fees		11,955

Distribution fees:
Class A		4,626

Class B		5,115

Class C		2,354

Class R		244

Transfer agent fees — A, B, C, R and Y		10,528

Transfer agent fees — Institutional		3,230

Trustees’ and officers’ fees and benefits		21,605

Registration and filing fees		68,537

Professional services fees		55,948

Other		27,435

Total expenses		676,720

Less: Fees waived and expenses reimbursed		(147,598	)

Net expenses		529,122

Net investment income		1,037,752

Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		2,724,352

Futures contracts		118,399

		2,842,751

Change in net unrealized appreciation (depreciation) of:
Investment securities		(1,876,846	)

Futures contracts		(90,465	)

		(1,967,311	)

Net realized and unrealized gain		875,440

Net increase in net assets resulting from operations	$	1,913,192


Assets:
Investments, at value (Cost $186,347,585)*	$	200,386,491

Investments in affiliated money market funds, at value and cost		17,091,230

Total investments, at value (Cost $203,438,815)		217,477,721

Foreign currency (Cost $4)		4

Receivables:
Investments sold		4,686,097

Dividends		505,813

Fund shares sold		356,684

Other		1,291

Total assets		223,027,610

Liabilities:
Payables:
Collateral upon return of securities loaned		3,637,122

Investments purchased		1,110,216

Fund shares repurchased		486,339

Distributor and affiliates		158,126

Accrued expenses		262,031

Total liabilities		5,653,834

Net assets	$	217,373,776

Net assets consist of:
Capital (Par value of $0.01 per share with an unlimited number of shares authorized)	$	266,513,675

Net unrealized appreciation		14,051,226

Accumulated undistributed net investment income (loss)		(165,074	)

Accumulated net realized gain (loss)		(63,026,051	)

Net assets	$	217,373,776

Maximum offering price per share:
Class A shares:
Net asset value and redemption price per share (Based on net assets of $168,731,338 and 17,228,118 shares of beneficial interest issued and outstanding)	$	9.79

Maximum sales charge (5.50% of offering price)		0.57

Maximum offering price to public	$	10.36

Class B shares:
Net asset value and offering price per share (Based on net assets of $22,332,151 and 2,315,491 shares of beneficial interest issued and outstanding)	$	9.64

Class C shares:
Net asset value and offering price per share (Based on net assets of $23,717,877 and 2,451,344 shares of beneficial interest issued and outstanding)	$	9.68

Class Y shares:
Net asset value and offering price per share (Based on net assets of $2,592,410 and 263,713 shares of beneficial interest issued and outstanding)	$	9.83


Investment Income:
Dividends (net of foreign withholding taxes of $106,359)	$	3,479,845

Dividends from affiliated money market funds		6,800

Interest		5,561

Total income		3,492,206

Expenses:
Investment advisory fee		1,729,791

Distribution fees
Class A		486,023

Class B		245,709

Class C		227,004

Transfer agent fees —		503,227

Reports to shareholders		124,133

Administrative services fees		73,397

Professional fees		56,905

Registration fees		50,832

Trustees and officers’ fees and benefits		27,700

Custody		23,322

Other		24,297

Total expenses		3,572,340

Expense reduction		4,049

Net expense		3,568,291

Net investment income (loss)		(76,085	)

Realized and unrealized gain (loss):
Realized gain (loss):
Investments		45,892,763

Foreign currency transactions		(197,220	)

Net realized gain		45,695,543

Unrealized appreciation (depreciation):
Beginning of the period		29,984,322

End of the period:
Investments		14,038,906

Foreign currency translation		12,320

		14,051,226

Net unrealized appreciation (depreciation) during the period		(15,933,096	)

Net realized and unrealized gain		29,762,447

Net increase in net assets from operations	$	29,686,362


Federal and State Income Tax

Qualified Dividend Income*			99.94%
Corporate Dividends Received Deduction*			99.94%
U.S. Treasury Obligations*			0%


Assets:
Investments, at value (Cost $31,921,313)	$	32,070,764

Investments in affiliated money market funds, at value and cost		2,674,284

Foreign currency (Cost $16,032)		16,051

Receivables:
Investments sold		1,379,238

Dividends		79,581

Expense reimbursement from adviser		27,792

Fund shares sold		16,236

Other assets		223

Total assets		36,264,169

Liabilities:
Payables:
Investments purchased		1,467,339

Fund shares repurchased		38,159

Distributor and affiliates		22,433

Accrued expenses		89,147

Total liabilities		1,617,078

Net assets	$	34,647,091

Net assets consist of:
Capital (par value of $0.01 per share with an unlimited number of shares authorized)	$	37,583,414

Accumulated undistributed net investment income		232,349

Net unrealized appreciation		149,446

Accumulated net realized gain (loss)		(3,318,118	)

Net assets	$	34,647,091

Maximum offering price per share:
Class A Shares:
Net asset value and redemption price per share (Based on net assets of $8,696,812 and 1,310,557 shares of beneficial interest issued and outstanding)	$	6.64

Maximum sales charge (5.50% of offering price)		0.39

Maximum offering price to public	$	7.03

Class B Shares:
Net asset value and offering price per share (Based on net assets of $641,815 and 97,537 shares of beneficial interest issued and outstanding)	$	6.58

Class C Shares:
Net asset value and offering price per share (Based on net assets of $901,988 and 137,125 shares of beneficial interest issued and outstanding)	$	6.58

Class R Shares:
Net asset value and offering price per share (Based on net assets of $66,381 and 10,000 shares of beneficial interest issued and outstanding)	$	6.64

Class Y Shares:
Net asset value and offering price per share (Based on net assets of $24,340,095 and 3,655,796 shares of beneficial interest issued and outstanding)	$	6.66