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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-09913
AIM Counselor Series Trust
(Invesco Counselor Series Trust)
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Address of principal executive offices) (Zip code)
Philip A. Taylor 11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Name and address of agent for service)
Registrant’s telephone number, including area code: (713) 626-1919
Date of fiscal year end: 8/31
Date of reporting period: 05/31/13
Item 1. Schedule of Investments.
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco American Franchise Fund
See accompanying notes which are an integral part of this schedule.
Invesco American Franchise Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco American Franchise 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 (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and 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. | 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 affiliated money market funds 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. |
E. | 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 |
Invesco American Franchise Fund
E. | Foreign Currency Translations – (continued) |
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.
F. | 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 -- 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 May 31, 2013. 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 |
$ | 5,693,143,338 | $ | 31,997,321 | $ | -- | $ | 5,725,140,659 |
Invesco American Franchise Fund
NOTE 3 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $2,787,357,926 and $3,424,002,149, 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 |
$ | 1,396,733,515 | ||
Aggregate unrealized (depreciation) of investment securities |
(70,956,142) | |||
Net unrealized appreciation of investment securities |
$ | 1,325,777,373 | ||
Cost of investments for tax purposes is $4,399,363,286. |
NOTE 4 -- Subsequent Event
The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which Invesco American Franchise Fund (the “Fund”) would acquire all of the assets and liabilities of Invesco Constellation Fund and Invesco Leisure Fund (the “Target Funds”) in exchange for shares of the Fund.
The Agreement was approved by the Fund’s shareholders on April 24, 2013 and the reorganization was closed on July 15, 2013. Upon closing of the reorganization, shareholders of the Target Funds will receive a corresponding class of shares of the Fund in exchange for their shares of the Target Funds and the Target Funds will liquidate and cease operations.
Invesco American Franchise Fund
Invesco California Tax-Free Income Fund Quarterly Schedule of Portfolio Holdings May 31, 2013 |
invesco.com/us | MS-CTFI-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments
May 31, 2013
(Unaudited)
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||
Municipal Obligations–105.04%* |
||||||||||||
California–98.27% |
||||||||||||
ABAG Finance Authority for Non-profit Corps. (Episcopal Senior Communities); Series 2012, Ref. RB |
5.00% | 07/01/32 | $ | 2,000 | $ | 2,139,200 | ||||||
ABAG Finance Authority for Non-profit Corps. (Sharp Healthcare); Series 2012 A, RB |
5.00% | 08/01/28 | 900 | 1,005,480 | ||||||||
Adelanto (City of) Public Utility Authority (Utility System); Series 2009 A, Ref. RB |
6.75% | 07/01/39 | 1,500 | 1,643,550 | ||||||||
Alameda (County of) Corridor Transportation Authority; Series 2013 A, Ref. Sr. Lien
RB |
5.00% | 10/01/29 | 1,500 | 1,720,965 | ||||||||
Alameda (County of) Joint Powers Authority (Juvenile Justice Refunding); Series 2008 A, Lease RB (INS-AGM) (a) |
5.00% | 12/01/25 | 750 | 852,848 | ||||||||
Alhambra (City of) (Atherton Baptist Homes); Series 2010 A, RB |
7.63% | 01/01/40 | 1,575 | 1,723,585 | ||||||||
Alhambra Unified School District (Election of 1999); Series 1999 A, Unlimited Tax CAB GO Bonds (INS-AGM) (a)(b) |
0.00% | 09/01/20 | 1,925 | 1,583,486 | ||||||||
Anaheim (City of) Public Financing Authority (Anaheim Public Improvements); Series 1997 C, Sub. Lease RB (INS-AGM) (a) |
6.00% | 09/01/16 | 4,000 | 4,515,320 | ||||||||
Anaheim (City of) Public Financing Authority (Electric System Distribution Facilities); Series 2011 A, RB |
5.38% | 10/01/36 | 2,500 | 2,893,875 | ||||||||
Antelope Valley Healthcare District; Series 1997 A, Ref. RB (INS-AGM) (a) |
5.20% | 01/01/20 | 3,000 | 3,008,160 | ||||||||
Arcadia Unified School District (Election of 2006); Series 2007 A, Unlimited Tax GO
Bonds |
5.00% | 08/01/37 | 1,500 | 1,653,375 | ||||||||
Bakersfield (City of); Series 2007 A, Wastewater RB (INS-AGM) (a) |
5.00% | 09/15/32 | 2,215 | 2,440,598 | ||||||||
Bay Area Governments Association (California Capital); Series 2001 A, Lease RB (INS-AMBAC) (a) |
5.25% | 07/01/17 | 1,430 | 1,485,756 | ||||||||
Bay Area Governments Association (West Sacramento); Series 2004 A, Lease RB (c)(d) |
5.00% | 09/01/14 | 2,735 | 2,895,654 | ||||||||
Bay Area Toll Authority (San Francisco Bay Area); |
||||||||||||
Series 2008 F-1, Toll Bridge RB (e) |
5.00% | 04/01/39 | 1,250 | 1,368,550 | ||||||||
Series 2008 F-1, Toll Bridge RB |
5.00% | 04/01/39 | 2,500 | 2,737,100 | ||||||||
Series 2009 F-1, Toll Bridge RB (e) |
5.25% | 04/01/26 | 4,685 | 5,561,095 | ||||||||
Series 2009 F-1, Toll Bridge RB (e) |
5.25% | 04/01/29 | 5,205 | 6,161,783 | ||||||||
Series 2009 F-1, Toll Bridge RB (e) |
5.13% | 04/01/39 | 1,500 | 1,681,380 | ||||||||
Beverly Hills Unified School District (Election of 2008); |
||||||||||||
Series 2009, Unlimited Tax CAB GO Bonds (b) |
0.00% | 08/01/26 | 1,465 | 953,217 | ||||||||
Series 2009, Unlimited Tax CAB GO Bonds (b) |
0.00% | 08/01/32 | 3,045 | 1,413,337 | ||||||||
Bonita Unified School District (Election of 2004); Series 2004 A, Unlimited Tax GO Bonds (c)(d) |
5.00% | 08/01/14 | 1,000 | 1,055,300 | ||||||||
Brea Olinda Unified School District; Series 2002 A, Ref. COP (INS-AGM) (a) |
5.50% | 08/01/18 | 1,850 | 1,857,770 | ||||||||
California (State of) Educational Facilities Authority (California College of the Arts); Series 2005, RB |
5.00% | 06/01/35 | 2,000 | 2,027,320 | ||||||||
California (State of) Educational Facilities Authority (Chapman University); Series 2011, RB |
5.00% | 04/01/31 | 1,250 | 1,383,300 | ||||||||
California (State of) Educational Facilities Authority (Claremont McKenna College); Series
2007, |
5.00% | 01/01/38 | 2,100 | 2,270,604 | ||||||||
California (State of) Educational Facilities Authority (Pitzer College); |
||||||||||||
Series 2005 A, RB |
5.00% | 04/01/35 | 2,000 | 2,046,120 | ||||||||
Series 2009, RB |
6.00% | 04/01/40 | 2,000 | 2,325,840 | ||||||||
California (State of) Educational Facilities Authority (University of Southern California); Series 2009 B, RB (e) |
5.25% | 10/01/39 | 1,800 | 2,075,526 | ||||||||
California (State of) Health Facilities Financing Authority (Adventist Health System West); Series 2009 A, RB |
5.75% | 09/01/39 | 500 | 574,580 | ||||||||
California (State of) Health Facilities Financing Authority (Catholic Healthcare West); |
||||||||||||
Series 2009 A, RB |
6.00% | 07/01/39 | 500 | 594,605 | ||||||||
Series 2011 A, RB |
5.25% | 03/01/41 | 2,500 | 2,752,675 | ||||||||
California (State of) Health Facilities Financing Authority (Children’s Hospital Los Angeles); Series 2010, RB (INS-AGM) (a) |
5.25% | 07/01/38 | 2,950 | 3,118,533 | ||||||||
California (State of) Health Facilities Financing Authority (City of Hope); Series 2012 A, RB |
5.00% | 11/15/35 | 1,000 | 1,127,150 | ||||||||
California (State of) Health Facilities Financing Authority (Kaiser Permanente); Series 2006 A, RB |
5.25% | 04/01/39 | 2,000 | 2,164,880 |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
California–(continued) |
||||||||||||||||
California (State of) Health Facilities Financing Authority |
||||||||||||||||
Series 2008, RB (c)(d) |
6.50 | % | 10/01/18 | $ | 20 | $ | 25,582 | |||||||||
Series 2008, RB |
6.50 | % | 10/01/38 | 980 | 1,176,039 | |||||||||||
California (State of) Health Facilities Financing Authority (Scripps Health); Series 2010 A, RB |
5.00 | % | 11/15/36 | 4,000 | 4,348,760 | |||||||||||
California (State of) Health Facilities Financing Authority (Stanford Hospital); Series
2008 |
5.25 | % | 11/15/40 | 2,000 | 2,255,000 | |||||||||||
California (State of) Health Facilities Financing Authority (Sutter Health); Series 2011 B, RB |
5.50 | % | 08/15/26 | 1,000 | 1,174,060 | |||||||||||
California (State of) Municipal Finance Authority (American Heritage Education Foundation); Series 2006 A, Education RB |
5.25 | % | 06/01/26 | 1,000 | 965,300 | |||||||||||
California (State of) Municipal Finance Authority (Caritas); Series 2012 A, Mobile Home Park RB |
5.50 | % | 08/15/47 | 1,500 | 1,591,035 | |||||||||||
California (State of) Municipal Finance Authority (Community Hospitals of Central California Obligated Group); |
||||||||||||||||
Series 2007, COP |
5.00 | % | 02/01/20 | 2,385 | 2,587,057 | |||||||||||
Series 2007, COP |
5.25 | % | 02/01/37 | 500 | 521,180 | |||||||||||
California (State of) Municipal Finance Authority (Eisenhower Medical Center); |
||||||||||||||||
Series 2010 A, RB |
5.50 | % | 07/01/30 | 1,000 | 1,084,320 | |||||||||||
Series 2010 A, RB |
5.75 | % | 07/01/40 | 1,500 | 1,634,880 | |||||||||||
California (State of) Municipal Finance Authority (Emerson College); Series 2011, RB |
5.75 | % | 01/01/33 | 1,315 | 1,522,652 | |||||||||||
California (State of) Municipal Finance Authority (University of La Verne); Series 2010 A, RB |
6.13 | % | 06/01/30 | 1,000 | 1,150,010 | |||||||||||
California (State of) Pollution Control Finance Authority; |
||||||||||||||||
Series 2012, Water Furnishing RB (f)(g) |
5.00 | % | 07/01/27 | 1,000 | 1,039,930 | |||||||||||
Series 2012, Water Furnishing RB (f)(g) |
5.00 | % | 07/01/37 | 2,500 | 2,523,525 | |||||||||||
California (State of) Pollution Control Financing Authority (Waste Management Inc.); Series 2002 A, Ref. Solid Waste Disposal RB (f) |
5.00 | % | 01/01/22 | 2,000 | 2,187,760 | |||||||||||
California (State of) Public Works Board (Various Capital); Series 2011 A, Lease RB |
5.13 | % | 10/01/31 | 2,000 | 2,201,920 | |||||||||||
California (State of) Statewide Communities Development Authority |
5.00 | % | 03/01/30 | 5,000 | 5,272,750 | |||||||||||
California (State of) Statewide Communities Development Authority |
6.10 | % | 07/01/32 | 820 | 872,611 | |||||||||||
California (State of) Statewide Communities Development Authority |
6.25 | % | 10/01/39 | 2,000 | 2,239,360 | |||||||||||
California (State of) Statewide Communities Development Authority |
5.40 | % | 11/01/27 | 1,785 | 1,901,668 | |||||||||||
California (State of) Statewide Communities Development Authority |
5.25 | % | 11/01/30 | 1,675 | 1,900,656 | |||||||||||
California (State of) Statewide Communities Development Authority |
6.75 | % | 02/01/38 | 445 | 542,348 | |||||||||||
California (State of) Statewide Communities Development Authority |
||||||||||||||||
Series 2009, Senior Living RB |
6.25 | % | 11/15/19 | 2,000 | 2,254,240 | |||||||||||
Series 2009, Senior Living RB |
7.25 | % | 11/15/41 | 500 | 577,645 | |||||||||||
California (State of) Statewide Communities Development Authority |
5.63 | % | 10/01/32 | 1,000 | 1,063,340 | |||||||||||
California (State of) Statewide Communities Development Authority (University of California - Irvine East Campus Apartments); Series 2012, Ref. Student Housing RB |
5.38 | % | 05/15/38 | 2,000 | 2,177,240 | |||||||||||
California (State of); |
||||||||||||||||
Series 2004 B-1, VRD Unlimited Tax GO Bonds (LOC-Citibank, N.A.) (h)(i) |
0.05 | % | 05/01/34 | 1,500 | 1,500,000 | |||||||||||
Series 2009, Various Purpose Unlimited Tax GO Bonds |
5.75 | % | 04/01/31 | 5,000 | 5,819,250 | |||||||||||
Series 2009, Various Purpose Unlimited Tax GO Bonds |
6.00 | % | 11/01/35 | 1,750 | 2,111,567 | |||||||||||
Series 2009, Various Purpose Unlimited Tax GO Bonds |
6.00 | % | 04/01/38 | 1,250 | 1,481,213 | |||||||||||
Series 2010, Unlimited Tax GO Bonds |
5.25 | % | 11/01/40 | 3,000 | 3,414,780 | |||||||||||
Series 2011, Various Purpose Unlimited Tax GO Bonds |
5.00 | % | 09/01/32 | 2,450 | 2,751,374 | |||||||||||
Series 2011, Various Purpose Unlimited Tax GO Bonds |
5.00 | % | 10/01/41 | 2,500 | 2,713,375 | |||||||||||
Series 2012, Ref. Unlimited Tax GO Bonds |
5.25 | % | 02/01/30 | 2,000 | 2,295,860 | |||||||||||
Series 2013, Ref. Unlimited Tax GO Bonds |
5.00 | % | 10/01/25 | 1,000 | 1,132,840 |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||
California–(continued) |
||||||||||||
Series 2013, Various Purpose Unlimited Tax GO Bonds |
5.00% | 02/01/38 | $ | 1,000 | $ | 1,105,220 | ||||||
Series 2013, Various Purpose Unlimited Tax GO Bonds |
5.00% | 02/01/43 | 1,000 | 1,094,160 | ||||||||
California Infrastructure & Economic Development Bank (Broad Museum); Series 2011 A, RB |
5.00% | 06/01/21 | 3,000 | 3,656,580 | ||||||||
California Special Districts Association Finance Corp. (Special Districts Finance Program); Series 1997 DD, COP (INS-AGM) (a) |
5.63% | 01/01/27 | 1,050 | 1,051,628 | ||||||||
California State University; Series 2009 A, Systemwide RB (INS-AGC) (a) |
5.25% | 11/01/38 | 1,000 | 1,104,290 | ||||||||
Chino Basin Regional Financing Authority (Inland Empire Utilities Agency); Series 2008 A, RB (INS-AMBAC) (a) |
5.00% | 11/01/33 | 725 | 793,244 | ||||||||
Clovis Unified School District (Election of 2004); Series 2004 A, Unlimited Tax CAB GO Bonds (INS-NATL) (a)(b) |
0.00% | 08/01/29 | 735 | 369,764 | ||||||||
Corona-Norco Unified School District (Election of 2006); |
||||||||||||
Series 2009, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/24 | 1,000 | 663,140 | ||||||||
Series 2009, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/25 | 1,000 | 629,350 | ||||||||
Desert Community College District (Election of 2004); Series 2007 C, Unlimited Tax GO Bonds (INS-AGM) (a) |
5.00% | 08/01/37 | 2,500 | 2,755,875 | ||||||||
East Bay Municipal Utility District; Series 2010 A, Ref. Sub. Water System RB |
5.00% | 06/01/36 | 2,000 | 2,307,600 | ||||||||
Eden (Township of) Healthcare District; Series 2010, COP |
6.13% | 06/01/34 | 1,000 | 1,093,830 | ||||||||
El Dorado (County of) Irrigation District; Series 2009 A, COP (INS-AGC) (a) |
5.75% | 08/01/39 | 1,000 | 1,050,560 | ||||||||
El Monte Union High School District (Election of 2008); Series 2009 A, Unlimited Tax GO Bonds (INS-AGC) (a) |
5.50% | 06/01/34 | 1,000 | 1,133,120 | ||||||||
El Segundo Unified School District (Election of 2008); Series 2009 A, Unlimited Tax CAB GO Bonds (b) |
0.00% | 08/01/33 | 4,430 | 1,687,033 | ||||||||
Fairfield (City of) Community Facilities District No. 3 (North Cordelia General Improvements); Series 2008, Special Tax RB |
6.00% | 09/01/32 | 1,800 | 1,976,418 | ||||||||
Fontana (City of) Public Financing Authority (North Fontana Redevelopment); Series 2003 A, Tax Allocation RB (INS-AMBAC) (a) |
5.38% | 09/01/25 | 1,500 | 1,502,475 | ||||||||
Fontana (City of) Redevelopment Agency (Downtown Redevelopment); Series 2000, Ref. Tax Allocation RB (INS-NATL) (a) |
5.00% | 09/01/21 | 1,480 | 1,481,465 | ||||||||
Foothill-Eastern Transportation Corridor Agency; Series 1999, Ref. Toll Road RB (INS-NATL) (a) |
5.13% | 01/15/19 | 4,000 | 4,005,720 | ||||||||
Fullerton (City of) Community Facilities District No. 1 (Amerige Heights); |
||||||||||||
Series 2012, Ref. Special Tax RB |
5.00% | 09/01/26 | 960 | 1,047,130 | ||||||||
Series 2012, Ref. Special Tax RB |
5.00% | 09/01/32 | 1,090 | 1,162,659 | ||||||||
Gilroy Unified School District (Election of 2008); |
||||||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/29 | 615 | 372,530 | ||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/29 | 4,735 | 2,278,908 | ||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/31 | 2,235 | 1,243,174 | ||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/31 | 1,415 | 609,002 | ||||||||
Glendora (City of) Public Finance Authority; Series 2003 A, Project No. One Tax Allocation RB (INS-NATL) (a) |
5.00% | 09/01/24 | 2,425 | 2,452,451 | ||||||||
Golden State Tobacco Securitization Corp.; Series 2013 A, Enhanced Tobacco Settlement Asset-Backed RB |
5.00% | 06/01/30 | 1,000 | 1,106,520 | ||||||||
Hanford Joint Union High School District (Election of 1998); Series 2004 C, Unlimited Tax GO Bonds (INS-NATL) (a) |
5.70% | 08/01/28 | 2,230 | 2,309,388 | ||||||||
Inglewood (City of) Redevelopment Agency (Merged Redevelopment); Series 1998 A, Ref. Tax Allocation RB (INS-AMBAC) (a) |
5.25% | 05/01/23 | 1,000 | 1,116,220 | ||||||||
Irvine (City of) (Reassessment District No. 12-1); Series 2012, Limited Obligation Improvement Bonds |
4.00% | 09/02/22 | 2,150 | 2,343,930 | ||||||||
Irvine Unified School District (Community Facilities District No. 06-1- Portola Springs); Series 2010, Special Tax RB |
6.70% | 09/01/35 | 515 | 589,175 | ||||||||
Kern (County of) (Capital Improvments); Series 2009 A, COP (INS-AGC) (a) |
5.75% | 08/01/35 | 1,000 | 1,156,100 | ||||||||
Kern (County of) Water Agency Improvement District No. 4; Series 2008 A, COP (INS-AGC) (a) |
5.00% | 05/01/28 | 1,700 | 1,847,424 | ||||||||
Lodi (City of); Series 2007 A, Wastewater System Revenue COP (INS-AGM) (a) |
5.00% | 10/01/37 | 1,000 | 1,058,750 | ||||||||
Long Beach (City of) Bond Finance Authority (Aquarium of the Pacific); Series 2012, Ref. RB |
5.00% | 11/01/29 | 2,000 | 2,230,140 | ||||||||
Long Beach (City of) Financing Authority; Series 1992, RB (INS-AMBAC) (a) |
6.00% | 11/01/17 | 15,095 | 15,887,186 | ||||||||
Long Beach (City of); Series 2010 A, Sr. Airport RB |
5.00% | 06/01/40 | 2,500 | 2,656,825 |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||
California–(continued) |
||||||||||||||
Los Angeles (City of) (FHA Insured Mortgage Loans - Section 8 Assisted); Series 1997 A, Ref. Mortgage RB (INS-NATL) (a) |
6.10% | 07/01/25 | $ | 475 | $ | 476,021 | ||||||||
Los Angeles (City of) Department of Airports (Los Angeles International Airport); |
||||||||||||||
Series 2010 A, Sr. RB |
5.00% | 05/15/35 | 2,500 | 2,786,000 | ||||||||||
Series 2010 B, Sub. RB |
5.00% | 05/15/40 | 1,000 | 1,089,620 | ||||||||||
Series 2012, Sr. RB (f) |
5.00% | 05/15/25 | 2,275 | 2,633,904 | ||||||||||
Los Angeles (City of) Department of Water & Power; |
||||||||||||||
Series 2004 C, Water System RB (c)(d) |
5.00% | 07/01/14 | 1,000 | 1,051,070 | ||||||||||
Series 2011 A, Power System RB (e) |
5.00% | 07/01/22 | 1,800 | 2,189,970 | ||||||||||
Series 2011 A, Water System RB |
5.25% | 07/01/39 | 1,500 | 1,698,540 | ||||||||||
Series 2012 A, Water System RB |
5.00% | 07/01/43 | 2,000 | 2,222,600 | ||||||||||
Subseries 2006 A-1, Water System RB (INS-AMBAC) (a) |
5.00% | 07/01/36 | 1,485 | 1,633,931 | ||||||||||
Subseries 2007 A-1, Power System RB (INS-AMBAC) (a) |
5.00% | 07/01/37 | 1,000 | 1,102,180 | ||||||||||
Subseries 2008 A-1, Power System RB |
5.25% | 07/01/38 | 2,000 | 2,242,800 | ||||||||||
Los Angeles (City of); |
||||||||||||||
Series 2003 B, Ref. Wastewater System RB (INS-AGM) (a) |
5.00% | 06/01/22 | 5,000 | 5,019,550 | ||||||||||
Series 2012 B, Ref. Sub. Wastewater System RB |
5.00% | 06/01/32 | 4,000 | 4,530,760 | ||||||||||
Los Angeles (County of) Metropolitan Transportation Authority; Series 2005 A, Proposition A First Tier Sr. Sales Tax RB (INS-AMBAC) (a) |
5.00% | 07/01/35 | 1,000 | 1,071,420 | ||||||||||
Los Angeles Community College District (Election of 2003); Series 2008 F-1, Unlimited Tax GO Bonds (e) |
5.00% | 08/01/33 | 2,000 | 2,247,880 | ||||||||||
Los Angeles County Schools Regionalized Business Services Corp. (Los Angeles County Schools Pooled Financing Program); Series 1999 A, CAB COP (INS-AMBAC) (a)(b) |
0.00% | 08/01/24 | 1,265 | 738,570 | ||||||||||
Los Angeles Unified School District (Election of 2004); |
||||||||||||||
Series 2007 H, Unlimited Tax GO Bonds (INS-AGM) (a) |
5.00% | 07/01/32 | 1,000 | 1,111,460 | ||||||||||
Series 2009-I, Unlimited Tax GO Bonds (INS-AGC) (a) |
5.00% | 01/01/34 | 3,000 | 3,332,880 | ||||||||||
Madera (County of) (Valley Children’s Hospital); Series 1995, COP (INS-NATL) (a) |
6.50% | 03/15/15 | 3,285 | 3,466,529 | ||||||||||
Menifee Union School District (Election of 2008); Series 2009 C, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/35 | 940 | 307,502 | ||||||||||
Montclair (City of) Redevelopment Agency (Montclair Redevelopment Project No. V); Series 2001, Ref. Tax Allocation RB (INS-NATL) (a) |
5.00% | 10/01/20 | 1,670 | 1,673,173 | ||||||||||
Montebello Unified School District (Election of 2004); Series 2009 A-1, Unlimited Tax GO Bonds (INS-AGC) (a) |
5.25% | 08/01/34 | 1,000 | 1,090,180 | ||||||||||
Moorpark Unified School District (Election of 2008); Series 2009 A, Unlimited Tax CAB GO Bonds (INS-AGC) (a)(b) |
0.00% | 08/01/31 | 840 | 339,772 | ||||||||||
Morongo Band of Mission Indians (The) (Enterprise Casino); Series 2008 B, RB (g) |
6.50% | 03/01/28 | 1,000 | 1,125,510 | ||||||||||
Mountain View (City of) Shoreline Regional Park Community; Series 2001 A, Tax Allocation RB (INS-NATL) (a) |
5.25% | 08/01/16 | 1,570 | 1,574,333 | ||||||||||
National City (City of) Community Development Commission (National City Redevelopment); Series 2011, Tax Allocation RB |
7.00% | 08/01/32 | 1,500 | 1,857,390 | ||||||||||
Norco (City of) Financing Authority; Series 2009, Ref. Enterprise RB (INS-AGM) (a) |
5.63% | 10/01/34 | 1,000 | 1,116,410 | ||||||||||
Oakland (Port of); Series 2012 P, Ref. Sr. Lien RB (f) |
5.00% | 05/01/26 | 1,000 | 1,134,100 | ||||||||||
Palomar Pomerado Health; Series 2009, COP |
6.75% | 11/01/39 | 2,000 | 2,231,200 | ||||||||||
Panama-Buena Vista Union School District (School Construction); Series 2006, COP (INS-NATL) (a) |
5.00% | 09/01/30 | 1,045 | 1,090,249 | ||||||||||
Paramount Unified School District (Election of 2006); Series 2007, Unlimited Tax GO
Bonds |
5.25% | 08/01/30 | 1,600 | 1,723,360 | ||||||||||
Pittsburg Unified School District (Election of 2006); Series 2009 B, Unlimited Tax GO
Bonds |
5.50% | 08/01/31 | 1,000 | 1,152,160 | ||||||||||
Pomona (City of) Public Financing Authority (Merged Redevelopment); |
||||||||||||||
Series 2001 AD, Tax Allocation RB (INS-NATL) (a) |
5.00% | 02/01/15 | 2,020 | 2,024,686 | ||||||||||
Series 2001 AD, Tax Allocation RB (INS-NATL) (a) |
5.00% | 02/01/16 | 1,110 | 1,112,309 | ||||||||||
Series 2007 AW, Sub. RB |
5.13% | 02/01/33 | 1,075 | 1,075,032 | ||||||||||
Port Hueneme (City of) (Capital Improvement Program); Series 1992, Ref. COP |
6.00% | 04/01/19 | 1,195 | 1,380,643 | ||||||||||
Poway Unified School District (Election of 2008 - School Facilities Improvement District
No. 2007-1); |
0.00% | 08/01/32 | 6,460 | 2,694,272 | ||||||||||
Rancho Cordova (City of) Community Facilities District No. 2003-1 (Sunridge Anatolia); |
||||||||||||||
Series 2012, Ref. Special Tax RB |
5.00% | 09/01/24 | 730 | 769,186 | ||||||||||
Series 2012, Ref. Special Tax RB |
5.00% | 09/01/27 | 1,000 | 1,047,450 |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||||
California–(continued) |
||||||||||||||||
Rancho Cucamonga (City of) Redevelopment Agency (Rancho Redevelopment Housing Set Aside) Series 2007 A, Tax Allocation RB (INS-NATL) (a) |
5.00 | % | 09/01/34 | $ | 1,000 | $ | 1,020,240 | |||||||||
Rancho Cucamonga (City of) Redevelopment Agency (Rancho Redevelopment); Series 2001, Tax Allocation RB (INS-NATL) (a) |
5.38 | % | 09/01/25 | 3,000 | 3,003,090 | |||||||||||
Redding (City of) Redevelopment Agency (Canby-Hilltop-Cypress Redevelopment); Series 2003 A, Tax Allocation RB (INS-NATL) (a) |
5.00 | % | 09/01/23 | 1,400 | 1,413,244 | |||||||||||
Regents of the University of California; |
||||||||||||||||
Series 2009 E, Medical Center Pooled RB |
5.50 | % | 05/15/27 | 2,500 | 2,846,625 | |||||||||||
Series 2009 O, General RB (e) |
5.75 | % | 05/15/23 | 705 | 860,206 | |||||||||||
Series 2009 O, General RB (e) |
5.75 | % | 05/15/25 | 1,050 | 1,281,158 | |||||||||||
Series 2009 Q, General RB (e)(j) |
5.00 | % | 05/15/34 | 920 | 1,037,971 | |||||||||||
Series 2012 G, Limited Project RB |
5.00 | % | 05/15/37 | 1,500 | 1,674,735 | |||||||||||
Riverside (City of); |
||||||||||||||||
Series 2008 B, Water RB (INS-AGM) (a) |
5.00 | % | 10/01/33 | 1,000 | 1,088,850 | |||||||||||
Series 2008 D, Electric RB (INS-AGM) (a) |
5.00 | % | 10/01/28 | 500 | 550,870 | |||||||||||
Series 2008 D, Electric RB (INS-AGM) (a) |
5.00 | % | 10/01/38 | 1,800 | 1,949,814 | |||||||||||
Riverside (County of) Transportation Commission; Series 2010 A, Limited Sales Tax RB |
5.00 | % | 06/01/32 | 1,500 | 1,651,830 | |||||||||||
Sacramento (City of) Municipal Utility District; Series 2011 X, Ref. Electric RB |
5.00 | % | 08/15/27 | 2,150 | 2,486,432 | |||||||||||
Sacramento (County of) Sanitation Districts Financing Authority (Sacramento Regional County Sanitation District); |
||||||||||||||||
Series 2006, RB (INS-NATL) (a) |
5.00 | % | 12/01/29 | 2,000 | 2,195,280 | |||||||||||
Series 2011 A, Ref. RB |
5.00 | % | 12/01/26 | 1,500 | 1,760,055 | |||||||||||
Sacramento (County of); |
||||||||||||||||
Series 2008 A, Sr. Airport System RB (INS-AGM) (a) |
5.00 | % | 07/01/32 | 1,000 | 1,087,620 | |||||||||||
Series 2008 A, Sr. Airport System RB (INS-AGM) (a) |
5.00 | % | 07/01/41 | 1,015 | 1,078,163 | |||||||||||
Series 2010, Sr. Airport System RB |
5.00 | % | 07/01/40 | 2,200 | 2,373,162 | |||||||||||
San Buenaventura (City of) (Community Memorial Health System); Series 2011, RB |
7.50 | % | 12/01/41 | 2,000 | 2,436,520 | |||||||||||
San Diego (City of) Public Facilities Financing Authority (Southcrest & Central Imperial Redevelopment); Series 2007 B, Pooled Financing Tax Allocation RB (INS-Radian) (a) |
5.25 | % | 10/01/27 | 2,535 | 2,624,080 | |||||||||||
San Diego (City of) Public Facilities Financing Authority; Subseries 2012 A, Ref. Water RB |
5.00 | % | 08/01/32 | 2,215 | 2,534,226 | |||||||||||
San Diego (County of) Regional Airport Authority; Series 2013 B, Sr. RB (f) |
5.00 | % | 07/01/29 | 1,270 | 1,417,485 | |||||||||||
San Diego Community College District (Election of 2002); Series 2009, Unlimited Tax GO |
5.25 | % | 08/01/33 | 1,500 | 1,780,020 | |||||||||||
San Diego Community College District (Election of 2006); Series 2011, Unlimited Tax GO Bonds |
5.00 | % | 08/01/31 | 2,500 | 2,854,825 | |||||||||||
San Francisco (City & County of) Airport Commission (San Francisco International Airport); |
||||||||||||||||
Series 2009 E, Second Series RB |
6.00 | % | 05/01/39 | 1,000 | 1,210,640 | |||||||||||
Series 2011 C, Ref. Second Series RB (f) |
5.00 | % | 05/01/23 | 5,000 | 5,792,250 | |||||||||||
Series 2011 G, Second Series RB |
5.25 | % | 05/01/28 | 2,000 | 2,291,460 | |||||||||||
San Francisco (City & County of) Public Utilities Commission (Water System Improvement Program); Subseries 2011 A, Water RB |
5.00 | % | 11/01/36 | 4,000 | 4,500,760 | |||||||||||
San Francisco (City & County of) Public Utilities Commission; Series 2012, Water RB |
5.00 | % | 11/01/33 | 3,000 | 3,394,800 | |||||||||||
San Francisco (City & County of) Redevelopment Financing Authority (Mission Bay North Redevelopment); Series 2011 C, Tax Allocation RB |
6.75 | % | 08/01/41 | 1,000 | 1,185,410 | |||||||||||
San Francisco (City & County of) Redevelopment Financing Authority (Mission Bay South Redevelopment); Series 2011 D, Tax Allocation RB |
7.00 | % | 08/01/33 | 500 | 581,455 | |||||||||||
San Francisco (City & County of) Successor Agency to the Redevelopment Agency Community Facilities District No. 6 (Mission Bay South Public Improvements); Series 2013 A, Ref. Special Tax RB |
5.00 | % | 08/01/33 | 335 | 366,396 | |||||||||||
San Francisco (City of) Bay Area Rapid Transit District; Series 2012 A, RB |
5.00 | % | 07/01/32 | 1,000 | 1,151,520 | |||||||||||
San Jose Evergreen Community College District (Election of 2004); Series 2008 B, Unlimited Tax CAB GO Bonds (INS-AGM) (a)(b) |
0.00 | % | 09/01/31 | 3,110 | 1,414,210 | |||||||||||
San Luis Obispo (County of) Financing Authority (Lopez Dam Improvement); Series 2011 A, Ref. RB (INS-AGM) (a) |
5.00 | % | 08/01/30 | 1,500 | 1,666,995 | |||||||||||
San Mateo (City of) Community Facilities District No. 2008-1 (Bay Meadows); |
||||||||||||||||
Series 2013, Special Tax RB |
5.00 | % | 09/01/33 | 200 | 206,262 | |||||||||||
Series 2013, Special Tax RB |
5.00 | % | 09/01/42 | 1,000 | 1,016,970 |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||||
California–(continued) |
||||||||||||||||
Santa Clara (County of) Financing Authority (Multiple Facilities); Series 2008 L, Ref. Lease RB |
5.25 | % | 05/15/36 | $ | 3,000 | $ | 3,407,400 | |||||||||
Santaluz Community Facilities District No. 2 (Improvement Area No. 1); |
||||||||||||||||
Series 2011 A, Ref. Special Tax RB (d) |
5.00 | % | 09/01/28 | 825 | 899,077 | |||||||||||
Series 2011 A, Ref. Special Tax RB (d) |
5.00 | % | 09/01/29 | 715 | 773,916 | |||||||||||
Series 2011 A, Ref. Special Tax RB (d) |
5.10 | % | 09/01/30 | 465 | 503,502 | |||||||||||
Sierra View Local Health Care District; Series 2007, RB |
5.25 | % | 07/01/32 | 1,500 | 1,548,540 | |||||||||||
Simi Valley Unified School District (Election of 2004); |
||||||||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS-AGM) (a)(b) |
0.00 | % | 08/01/28 | 3,480 | 1,851,290 | |||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS-AGM) (a)(b) |
0.00 | % | 08/01/30 | 2,765 | 1,286,942 | |||||||||||
Sonoma-Marin Area Rail Transit District; Series 2012 A, Measure Q Sales Tax RB |
5.00 | % | 03/01/29 | 2,000 | 2,278,480 | |||||||||||
South Gate (City of) Public Financing Authority (South Gate Redevelopment Project No. 1); Series 2002, Tax Allocation RB (INS-SGI) (a) |
5.75 | % | 09/01/22 | 1,000 | 1,015,420 | |||||||||||
Southern California Metropolitan Water District; |
||||||||||||||||
Series 2005 A, RB (INS-AGM) (a) |
5.00 | % | 07/01/35 | 1,520 | 1,629,531 | |||||||||||
Series 2009 B, Ref. RB (e) |
5.00 | % | 07/01/27 | 8,585 | 10,009,852 | |||||||||||
Southern California Public Power Authority (Mead-Adelanto); Series 1994 A, RB |
9.33 | % | 07/01/15 | 3,500 | 3,871,490 | |||||||||||
Southern California Public Power Authority (Mead-Phoenix); Series 1994 A, RB |
9.33 | % | 07/01/15 | 2,500 | 2,767,050 | |||||||||||
Southern California Public Power Authority (Milford Wind Corridor Phase II); |
||||||||||||||||
Series 2011-1, RB (e) |
5.25 | % | 07/01/29 | 2,100 | 2,457,399 | |||||||||||
Series 2011-1, RB (e) |
5.25 | % | 07/01/31 | 2,100 | 2,439,318 | |||||||||||
Tejon Ranch Public Facilities Financing Authority Community Facilities District No. 2008-1 (Tejon Industrial Complex Public Improvements - East); |
||||||||||||||||
Series 2012 A, Ref. Special Tax RB |
5.00 | % | 09/01/32 | 750 | 740,813 | |||||||||||
Series 2012 B, Special Tax RB |
5.00 | % | 09/01/32 | 750 | 740,813 | |||||||||||
Temecula (City of) Redevelopment Agency (Temecula Redevelopment Project No. 1); |
5.13 | % | 08/01/27 | 2,150 | 2,182,916 | |||||||||||
Tustin (City of) Public Financing Authority; Series 2011 A, Water RB |
5.00 | % | 04/01/41 | 1,000 | 1,105,920 | |||||||||||
Tustin Unified School District (School Facilities Improvement District No. 2002-1- Election of 2002); Series 2008 C, Unlimited Tax GO Bonds (INS-AGM) (a) |
5.00 | % | 06/01/28 | 750 | 839,408 | |||||||||||
Twin Rivers Unified School District; Series 2009, Unlimited Tax CAB GO BAN (b) |
0.00 | % | 04/01/14 | 1,700 | 1,689,018 | |||||||||||
Val Verde Unified School District; Series 2009 A, Ref. COP (INS-AGC) (a) |
5.13 | % | 03/01/36 | 1,475 | 1,570,698 | |||||||||||
Vernon (City of); Series 2009 A, Electric System RB |
5.13 | % | 08/01/21 | 2,000 | 2,256,880 | |||||||||||
Walnut (City of) Energy Center Authority; Series 2010 A, Ref. RB |
5.00 | % | 01/01/35 | 3,000 | 3,208,740 | |||||||||||
West Contra Costa Unified School District; Series 2005, Unlimited Tax CAB GO Bonds |
0.00 | % | 08/01/25 | 2,500 | 1,484,100 | |||||||||||
Western Riverside (County of) Water & Wastewater Financing Authority (Eastern Municipal Water District Improvement); Series 2009, RB (INS-AGC) (a) |
5.63 | % | 09/01/39 | 1,000 | 1,111,490 | |||||||||||
Yosemite Community College District (Election of 2004); Series 2008 C, Unlimited Tax CAB GO Bonds (INS-AGM) (a)(b) |
0.00 | % | 08/01/24 | 4,685 | 3,106,811 | |||||||||||
407,479,673 | ||||||||||||||||
Guam–1.25% |
||||||||||||||||
Guam (Territory of) (Section 30); |
||||||||||||||||
Series 2009 A, Limited Obligation RB |
5.38 | % | 12/01/24 | 1,000 | 1,086,910 | |||||||||||
Series 2009 A, Limited Obligation RB |
5.63 | % | 12/01/29 | 660 | 721,842 | |||||||||||
Guam (Territory of) Power Authority; Series 2012 A, Ref. RB (INS-AGM) (a) |
5.00 | % | 10/01/25 | 1,500 | 1,739,265 | |||||||||||
Guam (Territory of); Series 2011 A, Business Privilege Tax RB |
5.13 | % | 01/01/42 | 1,500 | 1,630,050 | |||||||||||
5,178,067 | ||||||||||||||||
Puerto Rico–4.62% |
||||||||||||||||
Puerto Rico (Commonwealth of) Electric Power Authority; |
||||||||||||||||
Series 2007 TT, RB |
5.00 | % | 07/01/37 | 2,000 | 1,941,320 | |||||||||||
Series 2010 AAA, RB |
5.25 | % | 07/01/29 | 2,000 | 2,016,960 | |||||||||||
Puerto Rico (Commonwealth of) Industrial Tourist Educational, Medical & Environmental Control Facilities Financing Authority (Ana G. Mendez University System); Series 2012, Ref. RB |
5.38 | % | 04/01/42 | 2,000 | 2,015,920 |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||||
Puerto Rico–(continued) |
||||||||||||||||
Puerto Rico (Commonwealth of) Public Buildings Authority; Series 2002 D, RB (c)(d) |
5.45 | % | 07/01/17 | $ | 3,680 | $ | 4,351,453 | |||||||||
Puerto Rico Sales Tax Financing Corp.; |
||||||||||||||||
First Subseries 2010 C, RB |
5.00 | % | 08/01/35 | 1,500 | 1,540,335 | |||||||||||
First Subseries 2011 A-1, RB |
5.00 | % | 08/01/43 | 3,000 | 3,092,070 | |||||||||||
Series 2011 C, RB |
5.00 | % | 08/01/40 | 4,000 | 4,223,320 | |||||||||||
19,181,378 | ||||||||||||||||
Virgin Islands–0.90% |
||||||||||||||||
Virgin Islands (Government of) Public Finance Authority |
6.63 | % | 10/01/29 | 1,675 | 1,945,663 | |||||||||||
Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note); |
5.00 | % | 10/01/25 | 1,600 | 1,780,768 | |||||||||||
3,726,431 | ||||||||||||||||
TOTAL INVESTMENTS(l)–105.04% (Cost $396,730,302) |
435,565,549 | |||||||||||||||
FLOATING RATE NOTE OBLIGATIONS–(5.94)% |
||||||||||||||||
Notes with interest rates ranging from 0.11% to 0.15% at 05/31/13 and contractual maturites of collateral ranging from 07/01/22 to 10/01/39 (See Note 1D)(m) |
(24,620,000) | |||||||||||||||
OTHER ASSETS LESS LIABILITIES–0.90% |
3,720,651 | |||||||||||||||
NET ASSETS–100.00% |
$ | 414,666,200 |
Investment Abbreviations: | ||
AGC | —Assured Guaranty Corp. | |
AGM | —Assured Guaranty Municipal Corp. | |
AMBAC | —American Municipal Bond Assurance Corp. | |
BAN | —Bond Anticipation Notes | |
CAB | —Capital Appreciation Bonds | |
COP | —Certificates of Participation | |
FHA | —Federal Housing Administration | |
GO | —General Obligation | |
IDR | —Industrial Development Revenue Bonds | |
INS | —Insurer | |
LOC | —Letter of Credit | |
NATL | —National Public Finance Guarantee Corp. | |
Radian | —Radian Asset Assurance, Inc. | |
RB | —Revenue Bonds | |
Ref. | —Refunding | |
SGI | —Syncora Guarantee, Inc. | |
Sr. | —Senior | |
Sub. | —Subordinated | |
VRD | —Variable Rate Demand |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Notes to Schedule of Investments:
* | Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Fund’s use of leverage. |
(a) | Principal and/or interest payments are secured by the bond insurance company listed. |
(b) | Zero coupon bond issued at a discount. |
(c) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(d) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. |
(e) | Underlying security related to Dealer Trusts entered into by the Fund. See Note 1D. |
(f) | Security subject to the alternative minimum tax. |
(g) | Securities purchased or received in a transaction exempt from registration under the Securities Act of 1933 (the “1933 Act”), as amended. These securities may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of these securities at May 31, 2013 represented 1.10% of the Fund’s Net Assets. |
(h) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. |
(i) | 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 May 31, 2013. |
(j) | 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. |
(k) | Current coupon rate for inverse floating rate municipal obligations. This rate resets periodically as the rate on the related security changes. Positions in inverse floating rate municipal obligations have a total value of $6,638,540 which represents 1.60% of the Fund’s Net Assets. |
(l) | This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations. |
Entities | Percentage | |||
Assured Guaranty Municipal Corp. |
12.6% | |||
National Public Finance Guarantee Corp. |
8.0 | |||
American Municipal Bond Assurance Corp. |
7.3 |
(m) | Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at May 31, 2013. At May 31, 2013, the Fund’s investments with a value of $43,422,712 are held by Dealer Trusts and serve as collateral for the $24,620,000 in the floating rate note obligations outstanding at that date. |
See accompanying notes which are an integral part of this schedule.
Invesco California Tax-Free Income Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
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, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Securities for which market quotations either are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
Invesco California Tax-Free Income Fund
D. | Floating Rate Note Obligations – The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interests in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. |
TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended, or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities.
The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
E. | 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.
Invesco California Tax-Free Income Fund
NOTE 2 -- Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
As of May 31, 2013, all of the securities in this Fund were valued based on Level 2 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
NOTE 3 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $40,502,093 and $51,472,302, 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 |
$ | 39,452,452 | ||||||
Aggregate unrealized (depreciation) of investment securities |
(443,243) | |||||||
Net unrealized appreciation of investment securities |
$ | 39,009,209 | ||||||
Cost of investments for tax purposes is $396,556,340. |
Invesco California Tax-Free Income Fund
Invesco Core Plus Bond Fund Quarterly Schedule of Portfolio Holdings May 31, 2013
| ||||||
invesco.com/us | CPB-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
See accompanying notes which are an integral part of this schedule.
Invesco Core Plus Bond Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 — Significant Accounting Policies
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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
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) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco Core Plus Bond Fund
A. | Security Valuations – (continued) |
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 net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Dollar Rolls and Forward Commitment Transactions - The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date. |
The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments. Dollar roll transactions are considered borrowings under the 1940 Act.
Dollar roll 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. Dollar rolls transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.
E. | 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 |
Invesco Core Plus Bond Fund
E. | Foreign Currency Translations – (continued) |
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.
F. | 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. |
G. | 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. |
H. | 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. Such transactions are agreements between two parties (“Counterparties”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency 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 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
Invesco Core Plus Bond Fund
H. | Swap Agreements – (continued) |
upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the counterparty and by the designation of collateral by the counterparty to cover the Fund’s exposure to the counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
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. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.
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. | Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
K. | Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
Invesco Core Plus Bond Fund
NOTE 2 — Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. | |||
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |||
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of May 31, 2013. 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 |
$ | 84,255,458 | $ | 2,160,372 | $ | — | $ | 86,415,830 | ||||||||
U.S. Treasury Securities |
— | 56,934,142 | — | 56,934,142 | ||||||||||||
U.S Government Sponsored Agency Securities |
— | 164,882,608 | — | 164,882,608 | ||||||||||||
Corporate Debt Securities |
— | 284,810,907 | 0 | 284,810,907 | ||||||||||||
Asset-Backed Securities |
— | 84,050,118 | — | 84,050,118 | ||||||||||||
Municipal Obligations |
— | 2,622,344 | — | 2,622,344 | ||||||||||||
Foreign Securities Debt |
— | 2,261,201 | — | 2,261,201 | ||||||||||||
Foreign Sovereign Debt |
— | 25,929,427 | — | 25,929,427 | ||||||||||||
$ | 84,255,458 | $ | 623,651,119 | $ | 0 | $ | 707,906,577 | |||||||||
Foreign Currency Contracts* |
— | 18,153 | — | 18,153 | ||||||||||||
Futures* |
11,596 | — | — | 11,596 | ||||||||||||
Swap Agreements* |
— | (410,600) | — | (410,600) | ||||||||||||
Total Investments |
$ | 84,267,054 | $ | 623,258,672 | $ | 0 | $ | 707,525,726 |
* Unrealized appreciation (depreciation)
NOTE 3 — Derivative Investments
Open Foreign Currency Contracts | ||||||||||||||
Settlement |
Contract to | Notional | Unrealized | |||||||||||
Date |
Counterparty | Deliver | Receive | Value | Appreciation | |||||||||
08/08/13 |
RBC Dain Rauscher | EUR | 381,000 | USD | 498,329 | $ 495,333 | $ 2,996 | |||||||
08/08/13 |
RBC Dain Rauscher | GBP | 441,000 | USD | 684,857 | 669,700 | 15,157 | |||||||
Total open foreign currency contracts |
$ 18,153 |
Currency Abbreviations:
EUR — Euro | GBP — British Pound Sterling | USD — U.S. Dollar |
Invesco Core Plus Bond Fund
Open Futures Contracts | ||||||||
Short Contracts | Number of Contracts |
Expiration Month |
Notional Value |
Unrealized Appreciation | ||||
U.S. 10 Year Treasury Notes |
170 | September-2013 | $ 21,967,188 | $ 11,596 |
Open Credit Default Swap Agreements
Counterparty | Reference Entity |
Buy/Sell Protection |
Pay/Receive Fixed Rate |
Expiration Date |
Implied Credit |
Notional Value |
Upfront Payments |
Unrealized Appreciation (Depreciation) | ||||||||
Bank of America |
Citigroup Inc. | Buy | (1.00)% | 06/20/17 | 0.72% | $5,500,000 | $349,614 | $(410,600) |
(a) | Implied credit spreads represent the current level as of May 31, 2013 at which protection could be bought or sold given the terms of the existing credit default swap contract and serve as an indicator of the current status of the payment/performance risk of the credit default swap contract. An implied credit 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 generally. |
NOTE 4 — Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $1,037,954,501 and $941,238,330, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $8,602,508 and $20,919,963, 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 |
$ | 27,991,026 | ||
Aggregate unrealized (depreciation) of investment securities |
(5,155,445) | |||
Net unrealized appreciation of investment securities |
$ | 22,835,581 | ||
Cost of investments for tax purposes is $685,070,996. |
Invesco Core Plus Bond Fund
| ||
Invesco Equally-Weighted S&P 500 Fund Quarterly Schedule of Portfolio Holdings May 31, 2013 |
|
||||||
invesco.com/us | MS-EWSP-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equally-Weighted S&P 500 Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco Equally-Weighted S&P 500 Fund
A. | Security Valuations – (continued) |
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 net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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. | 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 affiliated money market funds 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. |
E. | 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 |
Invesco Equally-Weighted S&P 500 Fund
E. | Futures Contracts – (continued) |
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.
F. | Collateral – To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions. |
NOTE 2 -- Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of May 31, 2013. 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 |
$ | 1,566,641,020 | $-- | $-- | $ | 1,566,641,020 | ||||||
Futures* |
(310,806 | ) | -- | -- | (310,806 | ) | ||||||
Total Investments |
$ | 1,566,330,214 | $-- | $-- | $ | 1,566,330,214 |
* Unrealized appreciation (depreciation).
Invesco Equally-Weighted S&P 500 Fund
NOTE 3 -- Derivative Investments
Open Futures Contracts | ||||||||
Long Contracts | Number of Contracts |
Expiration Month |
Notional Value |
Unrealized Appreciation (Depreciation) | ||||
E-Mini S&P 500 |
275 | June-2013 | $22,398,750 | $(310,806) |
NOTE 4 -- Investments in Affiliates
The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The following is a summary of the transactions in and earnings from investments in Invesco Ltd. for the nine months ended May 31, 2013.
Value 08/31/12 |
Purchases at Cost |
Proceeds from Sales |
Change in Unrealized Appreciation |
Realized Gain (Loss) |
Value 05/31/13 |
Dividend Income |
||||||||||||||||||||||
Invesco Ltd. |
$ | 2,262,766 | $ | 235,073 | $ | (60,072) | $ | 986,514 | $ | (211) | $ | 3,424,070 | $ | 55,587 |
NOTE 5 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $282,796,304 and $187,642,940, 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 |
$ | 727,438,657 | ||
Aggregate unrealized (depreciation) of investment securities |
(11,384,658 | ) | ||
Net unrealized appreciation of investment securities |
$ | 716,053,999 | ||
Cost of investments for tax purposes is $850,587,021. |
Invesco Equally-Weighted S&P 500 Fund
Invesco Equity and Income Fund | ||
Quarterly Schedule of Portfolio Holdings May 31, 2013 |
invesco.com/us |
VK-EQI-QTR-1 05/13 |
Invesco Advisers, Inc. |
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Equity and Income Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
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.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco Equity and Income Fund
A. | Security Valuations – (continued) |
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 net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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. | 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.
E. | 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 |
Invesco Equity and Income Fund
E. | Foreign Currency Contracts – (continued) |
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.
F. | 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. |
G. | Call Options Written – The Fund may write covered call options. A covered 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 covered 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 covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized gains and losses on these contracts are included in the Statement of Operations. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. |
H. | Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
Invesco Equity and Income Fund
NOTE 2 -- Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | – Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 | – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 | – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of May 31, 2013. 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 |
$ | 7,863,181,870 | $ | 130,196,708 | $ | -- | $ | 7,993,378,578 | ||||||||
U.S. Treasury Securities |
-- | 850,295,744 | -- | 850,295,744 | ||||||||||||
Corporate Debt Securities |
-- | 2,457,043,891 | -- | 2,457,043,891 | ||||||||||||
U.S Government Sponsored Securities |
-- | 126,758,944 | -- | 126,758,944 | ||||||||||||
Asset-Backed Securities |
-- | 2,007 | -- | 2,007 | ||||||||||||
Municipal Obligations |
-- | 12,723,571 | -- | 12,723,571 | ||||||||||||
Foreign Government Debt Securities |
-- | 21,812,831 | -- | 21,812,831 | ||||||||||||
$ | 7,863,181,870 | $ | 3,598,833,696 | -- | $ | 11,462,015,566 | ||||||||||
Foreign Currency Contracts* |
-- | (1,094,272) | -- | (1,094,272) | ||||||||||||
Futures* |
211,710 | -- | -- | 211,710 | ||||||||||||
Options* |
50,879 | -- | -- | 50,879 | ||||||||||||
Total Investments |
$ | 7,863,444,459 | $ | 3,597,739,424 | $ | -- | $ | 11,461,183,883 |
* Unrealized appreciation (depreciation).
Invesco Equity and Income Fund
NOTE 3 -- Derivative Investments
Open Foreign Currency Contracts | ||||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||||
Settlement | Contract to | Notional | Appreciation | |||||||||||||||||||||||||||
Date | Counterparty | Deliver | Receive | Value | (Depreciation) | |||||||||||||||||||||||||
06/21/13 |
State Street | CHF | 27,529,389 | USD | 28,372,916 | 28,792,562 | (419,646) | |||||||||||||||||||||||
06/21/13 |
Bank of New York | CHF | 40,501,506 | USD | 41,773,208 | 42,359,898 | (586,690) | |||||||||||||||||||||||
06/21/13 |
Bank of New York | EUR | 40,866,639 | USD | 52,574,645 | 53,114,747 | (540,102) | |||||||||||||||||||||||
06/21/13 |
State Street | GBP | 67,421,512 | USD | 102,045,829 | 102,418,306 | (372,477) | |||||||||||||||||||||||
$ | (1,918,915) | |||||||||||||||||||||||||||||
Settlement | Contract to | Notional | Unrealized | |||||||||||||||||||||||||||
Date | Counterparty | Deliver | Receive | Value | Appreciation | |||||||||||||||||||||||||
06/21/13 |
Bank of New York | CAD | 48,427,398 | USD | 47,068,301 | $ | 46,687,059 | $ | 381,242 | |||||||||||||||||||||
06/21/13 |
State Street | CAD | 58,313,691 | USD | 56,649,884 | 56,218,067 | 431,817 | |||||||||||||||||||||||
06/21/13 |
State Street | USD | 3,173,728 | GBP | 2,096,877 | $ | 3,185,312 | $ | 824,643 | |||||||||||||||||||||
Total foreign currency contracts |
|
$ | (1,094,272) |
Currency Abbreviations: | ||||||||||||||
CAD -- Canadian Dollar | ||||||||||||||
CHF – Swiss Franc | ||||||||||||||
EUR -- Euro | ||||||||||||||
GBP -- British Pound Sterling | ||||||||||||||
USD -- U.S. Dollar |
Open Futures Contracts | ||||||||||||||||||||||
Short Contracts | Number of Contracts |
Expiration Month |
Notional Value |
Unrealized Appreciation |
||||||||||||||||||
U.S. Treasury 5 Year Notes |
881 | September-2013 | $ | (107,846,790 | ) | $ | 122,041 | |||||||||||||||
U.S. Treasury 10 Year Notes |
686 | September-2013 | (88,644,062 | ) | 89,669 | |||||||||||||||||
Total |
$ | (196,490,852 | ) | $ | 211,710 |
Invesco Equity and Income Fund
Open Options Written | ||||||||||||||||||||||||||
Contract Month |
Strike Price |
Number of Contracts |
Premiums Received |
Value | Unrealized Appreciation (Depreciation) |
|||||||||||||||||||||
Calls |
||||||||||||||||||||||||||
Avon Products, Inc. |
July-2013 | $24 | 14,740 | $891,305 | $958,100 | $(66,795) | ||||||||||||||||||||
eBay Inc. |
October-2013 | 65 | 2,814 | 342,794 | 225,120 | 117,674 | ||||||||||||||||||||
17,554 | $1,234,099 | $1,183,220 | $50,879 |
Transactions During the Period | ||||||||
Call Option Contracts | ||||||||
Number of Contracts |
Premiums Received |
|||||||
Beginning of period |
-- | $ | -- | |||||
Written |
17,554 | 1,234,099 | ||||||
End of period |
17,554 | $ | 1,234,099 |
NOTE 4 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $2,028,281,716 and $2,429,702,314, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $0 and $40,099,996, 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 |
$ | 2,155,885,372 | ||
Aggregate unrealized (depreciation) of investment securities |
(49,272,970) | |||
Net unrealized appreciation of investment securities |
$ | 2,106,612,402 | ||
Cost of investments for tax purposes is $9,355,403,164. |
Invesco Equity and Income Fund
Invesco Floating Rate Fund | ||
Quarterly Schedule of Portfolio Holdings | ||
May 31, 2013 |
invesco.com/us | FLR-QTR-1 | 05/13 | Invesco Advisers, Inc. |
Schedule of Investments
May 31, 2013
(Unaudited)
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Variable Rate Senior Loan Interests–86.03%(a)(b) |
||||||||||||||||
Aerospace & Defense–1.78% |
||||||||||||||||
ARINC Inc., Second Lien Term Loan |
6.20 | % | 10/25/15 | $ | 354 | $ | 348,295 | |||||||||
Aveos Fleet Performance Inc. (Canada), |
0.00 | % | 03/12/15 | 1,375 | 1,264,607 | |||||||||||
Revolver Loan (c)(d) |
0.00 | % | 06/28/13 | 583 | 581,878 | |||||||||||
Term Loan Cost (c)(d) |
0.00 | % | 06/28/13 | 508 | 515,873 | |||||||||||
Booz Allen Hamilton Inc., Term Loan B |
4.50 | % | 07/31/19 | 945 | 954,053 | |||||||||||
Camp International Holding Co., First Lien Term Loan |
5.25 | % | 05/31/19 | 2,684 | 2,717,958 | |||||||||||
DAE Aviation Holdings, Inc., |
6.25 | % | 11/02/18 | 1,724 | 1,756,685 | |||||||||||
Term Loan B2 (Acquired 11/07/12; Cost $767,468) |
6.25 | % | 11/02/18 | 782 | 796,364 | |||||||||||
DigitalGlobe, Inc., Term Loan B |
3.75 | % | 01/31/20 | 1,146 | 1,155,177 | |||||||||||
DynCorp International LLC, Term Loan B |
6.25 | % | 07/07/16 | 391 | 394,394 | |||||||||||
IAP Worldwide Services, Inc., Term Loan |
10.00 | % | 12/31/15 | 4,009 | 2,759,756 | |||||||||||
Landmark U.S. Holdings LLC, |
5.75 | % | 10/25/19 | 192 | 193,262 | |||||||||||
First Lien Term Loan |
5.75 | % | 10/25/19 | 2,261 | 2,280,496 | |||||||||||
LMI Aerospace, Inc., Term Loan |
4.75 | % | 12/28/18 | 473 | 477,480 | |||||||||||
PRV Aerospace LLC, Term Loan B |
6.50 | % | 05/09/18 | 1,930 | 1,944,763 | |||||||||||
Sequa Corp., Term Loan B |
5.25 | % | 06/19/17 | 2,866 | 2,902,869 | |||||||||||
TASC, Inc., Term Loan B |
4.50 | % | 12/18/15 | 1,810 | 1,816,447 | |||||||||||
Transdigm, Inc., Term Loan C |
3.75 | % | 02/28/20 | 4,940 | 5,007,130 | |||||||||||
27,867,487 | ||||||||||||||||
Air Transport–1.65% |
||||||||||||||||
Delta Air Lines, Inc., |
4.00 | % | 10/18/18 | 4,503 | 4,525,791 | |||||||||||
Revolver Loan (f) |
0.00 | % | 04/20/16 | 7,785 | 7,424,972 | |||||||||||
Revolver Loan (f) |
0.00 | % | 10/18/17 | 1,145 | 1,053,269 | |||||||||||
United Airlines, Inc., Term Loan B |
4.00 | % | 04/01/19 | 1,850 | 1,873,967 | |||||||||||
US Airways Group Inc., |
4.25 | % | 05/23/19 | 2,312 | 2,316,157 | |||||||||||
Term Loan B2 |
3.50 | % | 11/23/16 | 8,698 | 8,722,063 | |||||||||||
25,916,219 | ||||||||||||||||
Automotive–3.45% |
||||||||||||||||
Affinia Group Intermediate Holdings Inc., Term Loan B2 |
4.75 | % | 04/25/20 | 1,715 | 1,725,601 | |||||||||||
August U.S. Holding Co., Inc., |
10.50 | % | 04/26/19 | 256 | 259,378 | |||||||||||
Luxco Term Loan |
5.00 | % | 04/27/18 | 549 | 553,775 | |||||||||||
Second Lien Term Loan (Acquired 05/04/12; Cost $81,904) |
10.50 | % | 04/26/19 | 84 | 84,929 | |||||||||||
Term Loan B |
5.00 | % | 04/27/18 | 422 | 425,989 | |||||||||||
BBB Industries, LLC, Term Loan |
5.50 | % | 03/27/19 | 2,640 | 2,653,001 | |||||||||||
Federal-Mogul Corp., |
2.14 | % | 12/29/14 | 6,137 | 6,022,824 | |||||||||||
Term Loan C |
2.14 | % | 12/28/15 | 1,803 | 1,769,509 | |||||||||||
Goodyear Tire & Rubber Company (The), Second Lien Term Loan |
4.75 | % | 04/30/19 | 2,569 | 2,591,768 | |||||||||||
Hertz Corp., |
3.75 | % | 03/09/18 | 552 | 544,694 | |||||||||||
Term Loan B |
3.75 | % | 03/11/18 | 910 | 917,717 | |||||||||||
Term Loan B2 |
3.00 | % | 03/11/18 | 908 | 912,085 | |||||||||||
KAR Auction Services, Inc., Term Loan B |
3.75 | % | 05/19/17 | 6,064 | 6,159,794 | |||||||||||
Key Safety Systems, Inc., Term Loan B |
4.75 | % | 05/10/18 | 3,385 | 3,406,172 | |||||||||||
Metaldyne Co., LLC, Term Loan B |
5.00 | % | 12/18/18 | 3,066 | 3,139,027 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Automotive–(continued) |
||||||||||||||||
Schaeffler AG (Germany), Term Loan C |
4.25 | % | 01/27/17 | $ | 7,287 | $ | 7,392,924 | |||||||||
TI Group Automotive Systems, LLC, Term Loan B |
5.50 | % | 03/28/19 | 7,343 | 7,425,703 | |||||||||||
Tomkins Inc., Term Loan B2 |
3.75 | % | 09/29/16 | 44 | 44,645 | |||||||||||
Tower International Inc., Term Loan |
5.75 | % | 04/23/20 | 4,048 | 4,102,055 | |||||||||||
Transtar Holding Co., |
5.50 | % | 10/09/18 | 3,353 | 3,403,751 | |||||||||||
Second Lien Term Loan |
9.75 | % | 10/09/19 | 524 | 541,365 | |||||||||||
54,076,706 | ||||||||||||||||
Beverage and Tobacco–0.31% |
||||||||||||||||
DS Waters Enterprises, L.P., First Lien Term Loan (Acquired 02/27/12-03/26/12; |
10.50 | % | 08/29/17 | 1,639 | 1,679,646 | |||||||||||
North American Breweries, Inc., Term Loan B |
7.50 | % | 12/11/18 | 3,159 | 3,174,814 | |||||||||||
4,854,460 | ||||||||||||||||
Building & Development–2.67% |
||||||||||||||||
ABC Supply Co., Inc., Term Loan |
3.50 | % | 04/16/20 | 4,700 | 4,725,253 | |||||||||||
Building Materials Holding Corp., PIK Second Lien Term Loan (e) |
8.00 | % | 01/05/15 | 2,278 | 2,244,380 | |||||||||||
Capital Automotive L.P., |
6.00 | % | 04/30/20 | 2,668 | 2,774,963 | |||||||||||
Term Loan B |
4.00 | % | 04/10/19 | 8,837 | 8,909,023 | |||||||||||
CB Richard Ellis Services, Inc., Term Loan B |
2.95 | % | 03/28/21 | 1,351 | 1,354,998 | |||||||||||
CPG International Inc., Term Loan |
5.75 | % | 09/21/19 | 437 | 440,775 | |||||||||||
Custom Building Products, Inc., Term Loan B |
6.00 | % | 12/14/19 | 3,498 | 3,541,692 | |||||||||||
HD Supply, Inc., Term Loan B |
4.50 | % | 10/12/17 | 3,976 | 4,016,448 | |||||||||||
Lake at Las Vegas Joint Venture, LLC, |
0.00 | % | 02/28/17 | 11 | 4,101 | |||||||||||
PIK Exit Revolver Loan (Acquired 05/15/12-01/29/13; Cost $133,223) (e) |
5.00 | % | 02/28/17 | 133 | 50,625 | |||||||||||
Nortek, Inc., Term Loan |
5.25 | % | 04/26/17 | 456 | 461,385 | |||||||||||
Re/Max International, Inc., Term Loan |
5.50 | % | 04/16/16 | 2,646 | 2,678,661 | |||||||||||
Realogy Corp., |
4.44 | % | 10/10/16 | 1 | 641 | |||||||||||
Extended Term Loan |
4.50 | % | 03/05/20 | 9,259 | 9,367,267 | |||||||||||
United Subcontractors, Inc., PIK Term Loan (Acquired 02/15/06-03/28/13; |
6.29 | % | 06/30/15 | 125 | 121,462 | |||||||||||
WireCo WorldGroup, Inc., Term Loan |
6.00 | % | 02/15/17 | 1,161 | 1,170,768 | |||||||||||
41,862,442 | ||||||||||||||||
Business Equipment & Services–6.07% |
||||||||||||||||
Advantage Sales & Marketing, Inc., |
4.25 | % | 12/18/17 | 1,451 | 1,465,865 | |||||||||||
Second Lien Term Loan |
8.25 | % | 06/17/18 | 273 | 277,262 | |||||||||||
Asurion LLC, Term Loan B1 |
4.50 | % | 05/24/19 | 14,489 | 14,595,124 | |||||||||||
Audio Visual Services Group, Inc., Term Loan (Acquired 11/09/12-01/14/13; |
6.75 | % | 11/09/18 | 2,695 | 2,742,130 | |||||||||||
Brock Holdings III, Inc., Term Loan B |
6.01 | % | 03/16/17 | 233 | 236,033 | |||||||||||
Connolly Holdings, Inc., First Lien Term Loan |
6.50 | % | 07/13/18 | 1,998 | 2,021,803 | |||||||||||
Duff & Phelps Investment Management Co., Term Loan B |
4.50 | % | 04/23/20 | 2,179 | 2,203,750 | |||||||||||
Emdeon Business Services, LLC, Term Loan B2 |
3.75 | % | 11/02/18 | 1,655 | 1,669,869 | |||||||||||
Expert Global Solutions, Inc., Term Loan B |
8.50 | % | 04/03/18 | 4,492 | 4,562,466 | |||||||||||
First Data Corp., |
4.20 | % | 03/23/18 | 8,199 | 8,182,924 | |||||||||||
Term Loan |
4.20 | % | 03/24/17 | 6,540 | 6,537,547 | |||||||||||
Term Loan |
4.20 | % | 09/24/18 | 641 | 639,104 | |||||||||||
Garda World Security Corp., Term Loan B |
4.50 | % | 11/13/19 | 466 | 472,499 | |||||||||||
iPayment, Inc., Term Loan B |
5.75 | % | 05/08/17 | 3,978 | 3,953,030 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Business Equipment & Services–(continued) |
||||||||||||||||
ISS Holdings A/S (Denmark), Term Loan B12 |
3.75 | % | 04/30/18 | $ | 1,307 | $ | 1,319,032 | |||||||||
Koosharem Corp. (Select Remedy), |
10.25 | % | 06/30/14 | 739 | 666,547 | |||||||||||
PIK Second Lien Term Loan (c)(d)(e) |
0.00 | % | 12/31/14 | 362 | 36,230 | |||||||||||
Kronos Inc., |
4.50 | % | 10/30/19 | 4,696 | 4,744,034 | |||||||||||
Second Lien Term Loan |
9.75 | % | 04/30/20 | 808 | 847,942 | |||||||||||
Lonestar Intermediate Super Holdings, LLC, Term Loan B |
11.00 | % | 09/02/19 | 2,788 | 2,999,839 | |||||||||||
Nielsen Finance LLC, Term Loan E |
2.95 | % | 05/01/16 | 3,387 | 3,425,532 | |||||||||||
Sabre, Inc., |
5.25 | % | 02/19/19 | 3,283 | 3,330,945 | |||||||||||
Term Loan C |
4.00 | % | 02/19/18 | 2,778 | 2,804,863 | |||||||||||
SkillSoft Corp., Term Loan B |
5.00 | % | 05/26/17 | 3,426 | 3,472,463 | |||||||||||
SourceHov LLC, |
5.25 | % | 04/30/18 | 883 | 895,330 | |||||||||||
Second Lien Term Loan |
8.75 | % | 04/30/19 | 355 | 363,021 | |||||||||||
Spin Holdco Inc., Term Loan B |
4.25 | % | 11/14/19 | 3,544 | 3,576,375 | |||||||||||
Sungard Data Systems, Inc., |
3.95 | % | 02/28/17 | 843 | 849,679 | |||||||||||
Term Loan D |
4.50 | % | 01/31/20 | 1,071 | 1,087,223 | |||||||||||
Term Loan E |
4.00 | % | 03/08/20 | 9,320 | 9,457,878 | |||||||||||
SymphonyIRI Group, Inc., Term Loan B |
4.50 | % | 12/01/17 | 911 | 920,838 | |||||||||||
Total Safety US Inc., |
5.75 | % | 03/13/20 | 490 | 495,196 | |||||||||||
Second Lien Term Loan |
9.25 | % | 09/13/20 | 186 | 190,641 | |||||||||||
Trans Union, LLC, Term Loan |
4.25 | % | 02/10/19 | 758 | 765,009 | |||||||||||
WASH Multifamily Laundry Systems, LLC, Term Loan |
5.25 | % | 02/21/19 | 1,605 | 1,617,089 | |||||||||||
West Corp., Revolver Loan (f) |
0.00 | % | 01/15/16 | 1,748 | 1,573,039 | |||||||||||
94,998,151 | ||||||||||||||||
Cable & Satellite Television–3.98% |
||||||||||||||||
Atlantic Broadband Finance, LLC, Term Loan B |
3.25 | % | 11/30/19 | 973 | 976,868 | |||||||||||
Cequel Communications, LLC, Term Loan B |
3.50 | % | 02/14/19 | 3,634 | 3,658,167 | |||||||||||
CSC Holdings, Inc., Term Loan B |
2.69 | % | 04/17/20 | 13,878 | 13,861,781 | |||||||||||
Harron Communications Corp., Term Loan B |
5.00 | % | 10/06/17 | 4,045 | 4,093,446 | |||||||||||
Kabel Deutschland GmbH, (Germany), Term Loan F |
3.25 | % | 02/01/19 | 2,674 | 2,680,393 | |||||||||||
MCC Illinois, LLC, Term Loan E |
4.50 | % | 10/23/17 | 1,958 | 1,973,885 | |||||||||||
MCC Iowa LLC, |
1.91 | % | 01/30/15 | 1,945 | 1,953,256 | |||||||||||
Term Loan D-2 |
1.91 | % | 01/31/15 | 269 | 270,149 | |||||||||||
Term Loan H |
3.25 | % | 01/29/21 | 4,310 | 4,322,851 | |||||||||||
Telecommunications Management, LLC, First Lien Term Loan |
5.00 | % | 04/30/20 | 1,837 | 1,850,620 | |||||||||||
TWCC Holding Corp., Term Loan B |
3.50 | % | 02/13/17 | 1,994 | 2,015,995 | |||||||||||
UPC Financing Partnership, Term Loan AH |
3.25 | % | 06/30/21 | 7,930 | 7,943,210 | |||||||||||
WaveDivision Holdings, LLC, Term Loan B |
4.00 | % | 08/09/19 | 3,179 | 3,210,803 | |||||||||||
WideOpenWest Finance LLC, |
4.75 | % | 04/01/19 | 3,990 | 4,031,584 | |||||||||||
Term Loan B1 |
4.25 | % | 07/17/17 | 4,883 | 4,933,182 | |||||||||||
Yankee Cable Acquisition, LLC, Term Loan B |
5.25 | % | 03/01/20 | 4,500 | 4,560,678 | |||||||||||
62,336,868 | ||||||||||||||||
Chemicals & Plastics–3.88% |
||||||||||||||||
AI Chem & Cy S.C.A., Second Lien Term Loan |
8.25 | % | 04/03/20 | 338 | 348,600 | |||||||||||
Term Loan B1 |
4.50 | % | 10/04/19 | 972 | 980,573 | |||||||||||
Term Loan B2 |
4.50 | % | 10/04/19 | 504 | 508,772 | |||||||||||
Arysta LifeScience Corp., |
4.50 | % | 05/29/20 | 6,321 | 6,358,766 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Chemicals & Plastics–(continued) |
||||||||||||||||
Second Lien Term Loan |
8.25 | % | 11/30/20 | $ | 1,038 | $ | 1,052,237 | |||||||||
Ascend Performance Materials LLC, Term Loan B |
6.75 | % | 04/10/18 | 3,568 | 3,604,151 | |||||||||||
Aster Zweite Beteiligungs GmbH (Germany), |
6.53 | % | 12/31/16 | 721 | 729,595 | |||||||||||
Extended Term Loan C5 |
6.53 | % | 12/31/14 | 738 | 747,056 | |||||||||||
DuPont Performance Coatings, Inc., Term Loan B |
4.75 | % | 02/01/20 | 9,655 | 9,750,107 | |||||||||||
Emerald Performance Materials, LLC, Term Loan B (Acquired 05/15/12; Cost $1,161,304) |
6.75 | % | 05/18/18 | 1,171 | 1,179,814 | |||||||||||
Houghton International, Inc., Term Loan B |
4.00 | % | 12/20/19 | 2,326 | 2,334,808 | |||||||||||
INEOS Holdings Ltd., Term Loan |
4.00 | % | 05/04/18 | 12,770 | 12,789,926 | |||||||||||
Kronos Worldwide, Inc., Term Loan B |
7.00 | % | 06/13/18 | 1,065 | 1,072,997 | |||||||||||
Nusil Technology, LLC, Term Loan |
5.25 | % | 04/07/17 | 321 | 322,587 | |||||||||||
Omnova Solutions Inc., Term Loan B1 |
4.25 | % | 05/31/18 | 3,727 | 3,775,811 | |||||||||||
Phillips Plastics Corp., Term Loan B |
4.75 | % | 02/12/17 | 741 | 746,892 | |||||||||||
PQ Corp., Term Loan |
4.50 | % | 08/07/17 | 7,040 | 7,107,082 | |||||||||||
Taminco N.V., Term Loan B2 |
4.25 | % | 02/15/19 | 1,284 | 1,297,223 | |||||||||||
TricorBraun, Inc., Term Loan B |
4.00 | % | 05/03/18 | 2,002 | 2,015,757 | |||||||||||
Univar Inc., Term Loan B |
5.00 | % | 06/30/17 | 3,999 | 3,978,999 | |||||||||||
60,701,753 | ||||||||||||||||
Clothing & Textiles–0.79% |
||||||||||||||||
Calceus Acquisition, Inc., Term Loan |
5.75 | % | 01/31/20 | 1,961 | 1,984,863 | |||||||||||
PVH Corp., Term Loan B |
3.25 | % | 02/13/20 | 9,657 | 9,727,762 | |||||||||||
Wolverine World Wide, Inc., Term Loan B |
4.00 | % | 07/31/19 | 686 | 694,394 | |||||||||||
12,407,019 | ||||||||||||||||
Conglomerates–0.87% |
||||||||||||||||
Jarden Corp., |
2.19 | % | 03/31/16 | 6,440 | 6,496,384 | |||||||||||
Term Loan B |
2.69 | % | 03/30/18 | 2,940 | 2,974,752 | |||||||||||
Rexnord LLC, Term Loan B |
3.75 | % | 04/01/18 | 987 | 1,000,560 | |||||||||||
RGIS Services, LLC, Term Loan C |
5.50 | % | 10/18/17 | 1,293 | 1,301,536 | |||||||||||
Spectrum Brands, Inc., Term Loan |
4.51 | % | 12/17/19 | 1,805 | 1,830,665 | |||||||||||
13,603,897 | ||||||||||||||||
Containers & Glass Products–2.45% |
||||||||||||||||
Berlin Packaging LLC, |
4.75 | % | 04/02/19 | 2,323 | 2,353,040 | |||||||||||
Second Lien Term Loan |
8.75 | % | 04/02/20 | 845 | 861,846 | |||||||||||
Berry Plastics Holding Corp., Term Loan D |
3.50 | % | 02/08/20 | 10,788 | 10,810,747 | |||||||||||
BWAY Corp., Term Loan B |
4.50 | % | 08/06/17 | 3,417 | 3,461,815 | |||||||||||
Caraustar Industries, Inc., Term Loan |
7.50 | % | 05/01/19 | 1,177 | 1,194,509 | |||||||||||
Consolidated Container Co. LLC, Term Loan |
5.00 | % | 07/03/19 | 1,382 | 1,397,995 | |||||||||||
Exopack, LLC, Term Loan |
5.00 | % | 05/31/17 | 2,782 | 2,799,193 | |||||||||||
Hoffmaster Group, Inc., First Lien Term Loan |
6.50 | % | 01/03/18 | 2,787 | 2,801,389 | |||||||||||
Pact Group Pty Ltd., Term Loan B |
3.75 | % | 05/29/20 | 5,597 | 5,632,232 | |||||||||||
Pertus Sechszehnte GmbH (Germany), |
2.57 | % | 06/12/15 | 500 | 500,548 | |||||||||||
Term Loan C2 |
2.82 | % | 06/13/16 | 500 | 503,047 | |||||||||||
Ranpak Corp., |
4.50 | % | 04/23/19 | 578 | 585,470 | |||||||||||
Second Lien Term Loan |
8.50 | % | 04/23/20 | 650 | 666,102 | |||||||||||
Reynolds Group Holdings Inc., |
0.00 | % | 11/05/14 | 3,987 | 3,984,019 | |||||||||||
Term Loan |
4.75 | % | 09/28/18 | 805 | 813,964 | |||||||||||
38,365,916 | ||||||||||||||||
Cosmetics & Toiletries–0.65% |
||||||||||||||||
Bausch & Lomb, Inc., Term Loan |
4.00 | % | 05/18/19 | 6,307 | 6,336,431 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Cosmetics & Toiletries–(continued) |
||||||||||||||||
Nice-Pak Products, Inc., Term Loan |
8.75 | % | 06/18/14 | $ | 544 | $ | 517,140 | |||||||||
Revlon, Inc., Term Loan B |
4.00 | % | 11/20/17 | 3,297 | 3,342,325 | |||||||||||
10,195,896 | ||||||||||||||||
Drugs–2.01% |
||||||||||||||||
Grifols Inc., Term Loan B |
4.25 | % | 06/01/17 | 4,302 | 4,345,336 | |||||||||||
Harlan Laboratories, Inc., Term Loan B |
3.74 | % | 07/11/14 | 2,249 | 1,998,095 | |||||||||||
IMS Health Inc., Term Loan B1 |
3.75 | % | 09/01/17 | 4,350 | 4,383,557 | |||||||||||
Medpace, Inc., Term Loan |
5.50 | % | 06/16/17 | 2,526 | 2,544,811 | |||||||||||
RPI Finance Trust, Term Loan |
3.50 | % | 05/09/18 | 690 | 698,334 | |||||||||||
Valeant Pharmaceuticals International, Inc., Term Loan C1 |
3.50 | % | 12/11/19 | 11,286 | 11,378,886 | |||||||||||
Warner Chilcott PLC, |
4.25 | % | 03/15/18 | 2,327 | 2,348,954 | |||||||||||
Term Loan B1 |
4.25 | % | 03/15/18 | 1,013 | 1,022,516 | |||||||||||
Term Loan B2 |
4.25 | % | 03/15/18 | 825 | 832,351 | |||||||||||
Term Loan B3 |
4.25 | % | 03/15/18 | 1,834 | 1,851,003 | |||||||||||
31,403,843 | ||||||||||||||||
Ecological Services & Equipment–1.23% |
||||||||||||||||
ADS Waste Holdings, Inc., Term Loan B |
4.25 | % | 10/09/19 | 4,433 | 4,472,068 | |||||||||||
Sensus USA, Inc., First Lien Term Loan |
4.75 | % | 05/09/17 | 1,247 | 1,253,060 | |||||||||||
ServiceMaster Co. (The), |
4.56 | % | 01/31/17 | 3,750 | 3,753,750 | |||||||||||
Extended Term Loan |
4.45 | % | 01/31/17 | 3,070 | 3,074,757 | |||||||||||
Term Loan |
4.25 | % | 01/31/17 | 5,788 | 5,804,533 | |||||||||||
WCA Waste Systems, Inc., Term Loan |
4.00 | % | 03/23/18 | 950 | 956,932 | |||||||||||
19,315,100 | ||||||||||||||||
Electronics & Electrical–4.74% |
||||||||||||||||
Aeroflex Inc., Term Loan B |
4.50 | % | 11/09/19 | 6,251 | 6,302,707 | |||||||||||
Blackboard, Inc., |
11.50 | % | 04/04/19 | 1,095 | 1,120,149 | |||||||||||
Term Loan B2 |
6.25 | % | 10/04/18 | 9,225 | 9,409,740 | |||||||||||
Dealer Computer Services, Inc., Term Loan B |
2.19 | % | 04/21/16 | 789 | 796,799 | |||||||||||
DEI Sales, Inc., Term Loan B |
5.75 | % | 07/13/17 | 2,141 | 2,145,481 | |||||||||||
Deltek, Inc., First Lien Term Loan |
5.00 | % | 10/10/18 | 2,483 | 2,516,125 | |||||||||||
DG FastChannel, Inc., Term Loan B |
7.25 | % | 07/26/18 | 4,373 | 4,318,339 | |||||||||||
Edwards (Cayman Islands II) Ltd., (Cayman Islands), Term Loan B |
4.75 | % | 03/26/20 | 367 | 370,269 | |||||||||||
Freescale Semiconductor, Inc., Term Loan B4 |
5.00 | % | 02/28/20 | 9,471 | 9,544,137 | |||||||||||
Infor (US), Inc., |
5.34 | % | 04/05/18 | 5,678 | 5,748,126 | |||||||||||
Term Loan B3 |
3.75 | % | 05/30/20 | 3,534 | 3,548,543 | |||||||||||
ION Trading Technologies S.a.r.l., (Luxembourg), First Lien Term Loan |
4.50 | % | 05/22/20 | 2,276 | 2,300,264 | |||||||||||
Microsemi Corp., Repriced Term Loan |
3.75 | % | 02/19/20 | 885 | 893,177 | |||||||||||
Mirion Technologies, Inc., Term Loan |
5.75 | % | 03/30/18 | 2,788 | 2,812,170 | |||||||||||
Riverbed Technology, Inc., Term Loan |
4.00 | % | 12/18/19 | 1,767 | 1,793,423 | |||||||||||
RP Crown Parent, LLC, |
6.75 | % | 12/21/18 | 3,572 | 3,632,142 | |||||||||||
Second Lien Term Loan |
11.25 | % | 12/21/19 | 602 | 639,579 | |||||||||||
Ship US Bidco, Inc. (Luxembourg), |
5.25 | % | 11/30/17 | 986 | 994,580 | |||||||||||
Term Loan C (g) |
— | 05/02/22 | 2,915 | 2,952,205 | ||||||||||||
Sophia, L.P., Term Loan B |
4.50 | % | 07/19/18 | 6,740 | 6,804,092 | |||||||||||
SS&C Technologies Inc., |
5.00 | % | 06/07/19 | 2,363 | 2,383,456 | |||||||||||
Term Loan B-2 |
5.00 | % | 06/07/19 | 244 | 246,564 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Electronics & Electrical–(continued) |
||||||||||||||||
Verint Systems Inc., Term Loan B |
4.00 | % | 09/06/19 | $ | 2,836 | $ | 2,874,133 | |||||||||
74,146,200 | ||||||||||||||||
Equipment Leasing–0.18% |
||||||||||||||||
Flying Fortress Inc., Term Loan |
3.50 | % | 06/30/17 | 2,804 | 2,833,110 | |||||||||||
Financial Intermediaries–1.95% |
||||||||||||||||
Bankruptcy Management Solutions, Inc., |
7.50 | % | 08/20/14 | 46 | 31,083 | |||||||||||
PIK Second Lien Term Loan (e) |
8.43 | % | 08/20/15 | 21 | 779 | |||||||||||
Geo Group, Inc. (The), Term Loan B |
3.25 | % | 04/03/20 | 503 | 507,001 | |||||||||||
LPL Holdings, Inc., Term Loan B |
3.25 | % | 03/29/19 | 1,472 | 1,475,185 | |||||||||||
MIP Delaware, LLC, Term Loan |
4.00 | % | 03/09/20 | 1,568 | 1,581,472 | |||||||||||
Moneygram International, Inc., Term Loan B |
4.25 | % | 03/27/20 | 8,158 | 8,204,472 | |||||||||||
Nuveen Investments, Inc., First Lien Term Loan |
4.19 | % | 05/13/17 | 13,348 | 13,429,620 | |||||||||||
RJO Holdings Corp., Term Loan B |
6.95 | % | 12/10/15 | 1,646 | 1,324,896 | |||||||||||
Transfirst Holdings, Inc., |
4.75 | % | 12/27/17 | 2,558 | 2,576,839 | |||||||||||
Second Lien Term Loan |
11.00 | % | 06/27/18 | 1,393 | 1,426,791 | |||||||||||
30,558,138 | ||||||||||||||||
Food & Drug Retailers–0.87% |
||||||||||||||||
Pantry, Inc. (The), Term Loan B |
5.75 | % | 08/03/19 | 1,276 | 1,294,981 | |||||||||||
Rite Aid Corp., |
5.75 | % | 08/21/20 | 1,353 | 1,403,808 | |||||||||||
Term Loan 6 |
4.00 | % | 02/21/20 | 2,650 | 2,672,600 | |||||||||||
Roundy’s Supermarkets, Inc., Term Loan B |
5.75 | % | 02/13/19 | 2,853 | 2,803,369 | |||||||||||
Sprouts Farmers Markets Holdings, LLC, Term Loan |
4.50 | % | 04/23/20 | 2,613 | 2,626,033 | |||||||||||
Supervalu Inc., Refi Term Loan B |
5.00 | % | 03/21/19 | 2,854 | 2,850,255 | |||||||||||
13,651,046 | ||||||||||||||||
Food Products–2.22% |
||||||||||||||||
AdvancePierre Foods, Inc., |
9.50 | % | 10/10/17 | 524 | 539,236 | |||||||||||
First Lien Term Loan |
5.75 | % | 07/10/17 | 5,939 | 5,989,876 | |||||||||||
Candy Intermediate Holdings, Inc., Term Loan |
7.51 | % | 06/18/18 | 2,017 | 2,033,809 | |||||||||||
Del Monte Corp., Term Loan |
4.00 | % | 03/08/18 | 3,420 | 3,442,766 | |||||||||||
Dole Food Company Inc., Term Loan B |
3.75 | % | 04/01/20 | 3,531 | 3,546,588 | |||||||||||
Hostess Brands, Inc., Term Loan B |
6.75 | % | 04/09/20 | 863 | 888,183 | |||||||||||
JBS USA Holdings, Inc., Term Loan |
3.75 | % | 05/25/18 | 7,877 | 7,940,736 | |||||||||||
Pinnacle Foods Finance LLC, Term Loan G |
3.25 | % | 04/29/20 | 6,939 | 6,956,981 | |||||||||||
QCE, LLC, First Lien Term Loan |
9.00 | % | 01/24/17 | 11 | 5,646 | |||||||||||
Smart Balance, Inc., Term Loan |
7.00 | % | 07/02/18 | 3,441 | 3,494,872 | |||||||||||
34,838,693 | ||||||||||||||||
Food Service–3.74% |
||||||||||||||||
Aramark Corp., |
3.69 | % | 07/26/16 | 147 | 148,620 | |||||||||||
Extended Term Loan B |
3.78 | % | 07/26/16 | 2,232 | 2,259,867 | |||||||||||
Term Loan C |
3.75 | % | 07/26/16 | 8,807 | 8,916,539 | |||||||||||
Term Loan D |
4.00 | % | 08/22/19 | 5,414 | 5,490,326 | |||||||||||
Burger King Corp., Term Loan B |
3.75 | % | 09/27/19 | 3,525 | 3,563,236 | |||||||||||
Crossmark Holdings, Inc., |
8.75 | % | 12/21/20 | 576 | 578,592 | |||||||||||
Term Loan |
4.50 | % | 12/20/19 | 1,992 | 1,997,448 | |||||||||||
Dunkin’ Brands, Inc., Term Loan B3 |
3.75 | % | 02/14/20 | 694 | 698,454 | |||||||||||
Focus Brands, Inc., Refi Term Loan |
4.26 | % | 02/21/18 | 2,090 | 2,109,267 | |||||||||||
Landry’s, Inc., Term Loan B |
4.75 | % | 04/24/18 | 5,950 | 6,033,619 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Food Service–(continued) |
||||||||||||||||
OSI Restaurant Partners, LLC, Term Loan |
3.50 | % | 10/28/19 | $ | 2,132 | $ | 2,136,098 | |||||||||
Restaurant Holding Co., LLC, Term Loan B (Acquired 02/28/12-01/15/13; Cost $1,132,106) |
9.00 | % | 02/17/17 | 1,125 | 1,141,946 | |||||||||||
Seminole Hard Rock Entertainment, Inc., Term Loan B |
3.50 | % | 05/15/20 | 1,177 | 1,183,228 | |||||||||||
Weight Watchers International, Inc., |
3.04 | % | 04/02/16 | 2,435 | 2,456,018 | |||||||||||
Term Loan B2 |
3.75 | % | 04/02/20 | 17,802 | 17,842,889 | |||||||||||
Wendy’s International, Inc., Term Loan B |
3.25 | % | 05/15/19 | 1,952 | 1,969,063 | |||||||||||
58,525,210 | ||||||||||||||||
Forest Products–0.20% |
||||||||||||||||
John Henry Holdings, Inc., Term Loan B |
6.00 | % | 12/06/18 | 1,959 | 2,005,371 | |||||||||||
Xerium Technologies, Inc., Term Loan |
7.25 | % | 05/17/19 | 1,107 | 1,120,039 | |||||||||||
3,125,410 | ||||||||||||||||
Healthcare–6.61% |
||||||||||||||||
Alere, Inc., |
4.25 | % | 06/30/17 | 515 | 521,734 | |||||||||||
Term Loan B |
4.25 | % | 06/30/17 | 1,738 | 1,761,702 | |||||||||||
Term Loan B1 |
4.25 | % | 06/30/17 | 1,142 | 1,158,194 | |||||||||||
AMN Healthcare, Inc., Term Loan B |
3.75 | % | 04/05/18 | 915 | 924,269 | |||||||||||
Apria Healthcare Group I, Term Loan |
6.75 | % | 04/05/20 | 11,352 | 11,455,970 | |||||||||||
ATI Holdings, Inc., Term Loan |
5.75 | % | 12/20/19 | 954 | 970,491 | |||||||||||
Biomet Inc., Extended Term Loan B |
3.97 | % | 07/25/17 | 9,901 | 9,983,718 | |||||||||||
CareStream Health, Inc., Term Loan B |
5.00 | % | 02/25/17 | 4,903 | 4,918,939 | |||||||||||
Community Health Systems, Inc., Extended Term Loan B |
3.77 | % | 01/25/17 | 239 | 241,094 | |||||||||||
DaVita, Inc., |
2.70 | % | 11/01/17 | 4,938 | 4,964,360 | |||||||||||
Term Loan B |
4.50 | % | 10/20/16 | 4,930 | 4,989,873 | |||||||||||
DJO Finance LLC, Term Loan B3 |
4.75 | % | 09/15/17 | 7,603 | 7,725,065 | |||||||||||
Drumm Investors, LLC, Term Loan |
5.00 | % | 05/04/18 | 3,370 | 3,260,017 | |||||||||||
Genoa Healthcare Group, LLC, |
14.00 | % | 02/10/15 | 772 | 663,933 | |||||||||||
Term Loan B (Acquired 12/30/11; Cost $47,552) |
7.25 | % | 08/08/14 | 48 | 45,174 | |||||||||||
HCA, Inc., |
2.94 | % | 05/01/18 | 4,274 | 4,296,122 | |||||||||||
Term Loan B5 |
3.03 | % | 03/31/17 | 10,083 | 10,131,467 | |||||||||||
HCR Healthcare, LLC, Term Loan |
5.00 | % | 04/06/18 | 549 | 546,157 | |||||||||||
Health Management Associates, Inc., Term Loan B |
3.50 | % | 11/16/18 | 2,441 | 2,463,485 | |||||||||||
Hologic Inc., Term Loan B |
4.50 | % | 08/01/19 | 2,119 | 2,137,389 | |||||||||||
Intertrust Group Holding S.A., (Netherlands), Term Loan B (Acquired 02/07/13; |
4.70 | % | 02/04/20 | 1,340 | 1,348,853 | |||||||||||
Kindred Healthcare, Inc., Term Loan B |
4.25 | % | 06/01/18 | 4,864 | 4,888,697 | |||||||||||
Kinetic Concepts, Inc., Term Loan C1 |
5.50 | % | 05/04/18 | 12,877 | 13,078,646 | |||||||||||
Pharmaceutical Product Development, Inc., Term Loan B |
4.25 | % | 12/05/18 | 663 | 669,224 | |||||||||||
Sage Products Holdings, LLC, Term Loan B |
4.25 | % | 12/13/19 | 1,286 | 1,296,484 | |||||||||||
Surgical Care Affiliates, Inc., Delayed Draw Term Loan B (g) |
— | 05/08/18 | 2,118 | 2,131,659 | ||||||||||||
TriZetto Group, Inc., |
8.50 | % | 03/28/19 | 1,968 | 1,987,859 | |||||||||||
Term Loan B |
4.75 | % | 05/02/18 | 2,582 | 2,594,482 | |||||||||||
Universal Health Services, Inc., Term Loan B |
2.44 | % | 11/15/16 | 500 | 504,497 | |||||||||||
Western Dental Services, Inc., Term Loan B |
8.25 | % | 11/01/18 | 1,890 | 1,911,726 | |||||||||||
103,571,280 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Home Furnishings–0.63% |
||||||||||||||||
Serta Simmons Holdings, LLC, Term Loan |
5.00 | % | 10/01/19 | $ | 4,634 | $ | 4,674,103 | |||||||||
Springs Windows Fashions, LLC, Term Loan B |
6.00 | % | 05/31/17 | 1,425 | 1,434,863 | |||||||||||
Tempur-Pedic International Inc., Refi Term Loan B |
3.50 | % | 12/12/19 | 2,808 | 2,817,062 | |||||||||||
Yankee Candle Co., Inc. (The), Term Loan B |
5.25 | % | 04/02/19 | 1,016 | 1,019,521 | |||||||||||
9,945,549 | ||||||||||||||||
Industrial Equipment–1.91% |
||||||||||||||||
Alliance Laundry Systems LLC, Second Lien Term Loan |
9.50 | % | 12/10/19 | 535 | 548,751 | |||||||||||
Ameriforge Group, Inc., |
5.00 | % | 12/19/19 | 1,445 | 1,465,151 | |||||||||||
Second Lien Term Loan |
8.75 | % | 12/21/20 | 429 | 440,701 | |||||||||||
Apex Tool Group, LLC, Term Loan B |
4.50 | % | 02/01/20 | 3,155 | 3,185,793 | |||||||||||
Dundee Holdco 4 Ltd., Term Loan |
5.50 | % | 04/09/20 | 3,770 | 3,807,767 | |||||||||||
Generac Power Systems, Inc., Term Loan B |
3.50 | % | 05/31/20 | 1,133 | 1,135,581 | |||||||||||
Grede LLC, Term Loan B |
4.50 | % | 05/02/18 | 3,117 | 3,137,353 | |||||||||||
Husky Injection Molding Systems Ltd., Term Loan B |
4.25 | % | 07/02/18 | 2,980 | 3,006,240 | |||||||||||
Manitowoc Co., Inc. (The), Term Loan B |
4.25 | % | 11/13/17 | 380 | 385,183 | |||||||||||
Milacron LLC, Term Loan |
4.25 | % | 03/28/20 | 3,173 | 3,204,211 | |||||||||||
Tank Holding Corp., Term Loan |
4.25 | % | 07/09/19 | 2,932 | 2,946,344 | |||||||||||
Terex Corp., Term Loan B |
4.50 | % | 04/28/17 | 1,463 | 1,490,593 | |||||||||||
Tomkins Air Distributions, First Lien Term Loan |
5.00 | % | 11/09/18 | 2,049 | 2,073,558 | |||||||||||
Unifrax Corp., Term Loan |
4.25 | % | 11/28/18 | 544 | 549,190 | |||||||||||
WESCO Distribution, Inc., Term Loan B |
4.50 | % | 12/12/19 | 2,441 | 2,463,179 | |||||||||||
29,839,595 | ||||||||||||||||
Insurance–0.34% |
||||||||||||||||
Compass Investors Inc., Term Loan |
5.25 | % | 12/27/19 | 941 | 950,749 | |||||||||||
Cooper Gay Swett & Crawford Ltd., |
5.00 | % | 04/16/20 | 1,950 | 1,978,811 | |||||||||||
Second Lien Term Loan |
8.25 | % | 10/16/20 | 1,300 | 1,325,706 | |||||||||||
Hub International Limited, 2017 Extended Term Loan |
3.69 | % | 06/13/17 | 1,000 | 1,008,390 | |||||||||||
5,263,656 | ||||||||||||||||
Leisure Goods, Activities & Movies–3.10% |
||||||||||||||||
24 Hour Fitness Worldwide, Inc., Term Loan |
5.25 | % | 04/22/16 | 4,133 | 4,190,312 | |||||||||||
Alpha Topco Ltd., (United Kingdom), Extended Term Loan B2 |
6.00 | % | 04/30/19 | 10,168 | 10,318,751 | |||||||||||
AMF Bowling Worldwide, Inc., |
7.58 | % | 06/28/13 | 332 | 330,672 | |||||||||||
DIP Delayed Draw Term Loan (Acquired 12/14/12; Cost $142,429) (f) |
0.00 | % | 06/28/13 | 142 | 141,717 | |||||||||||
Second Lien Term Loan (c)(d) |
0.00 | % | 12/06/13 | 67 | 21,091 | |||||||||||
Term Loan B (c)(d) |
0.00 | % | 06/07/13 | 1,273 | 1,232,587 | |||||||||||
Bright Horizons Family Solutions, Inc., Term Loan B |
4.00 | % | 01/30/20 | 3,578 | 3,611,078 | |||||||||||
Cedar Fair, L.P., Term Loan B |
3.25 | % | 03/06/20 | 4,184 | 4,225,927 | |||||||||||
Equinox Holdings, Inc., First Lien Term Loan |
4.50 | % | 01/31/20 | 2,093 | 2,114,034 | |||||||||||
Fender Musical Instruments Corp., Term Loan B |
5.75 | % | 04/03/19 | 591 | 593,122 | |||||||||||
IMG Worldwide, Inc., Term Loan B |
5.50 | % | 06/16/16 | 4,788 | 4,831,659 | |||||||||||
Kasima, LLC, Term Loan B |
3.25 | % | 05/17/21 | 3,448 | 3,469,504 | |||||||||||
Live Nation Entertainment, Inc., Term Loan B |
4.50 | % | 11/07/16 | 2,174 | 2,200,138 | |||||||||||
Otter Products, LLC, Term Loan B |
5.25 | % | 04/29/19 | 1,149 | 1,156,139 | |||||||||||
SeaWorld Parks & Entertainment, Inc., Term Loan B2 |
3.00 | % | 05/14/20 | 1,941 | 1,942,086 | |||||||||||
Six Flags Theme Parks, Inc., Term Loan B |
4.00 | % | 12/20/18 | 587 | 595,310 | |||||||||||
SRAM, LLC, Term Loan B |
4.01 | % | 04/10/20 | 1,251 | 1,255,230 | |||||||||||
Topps Company, Inc. (The), Term Loan |
2.95 | % | 10/13/14 | 1,542 | 1,534,414 | |||||||||||
WMG Acquisition Corp., |
— | 07/01/20 | 580 | 578,551 | ||||||||||||
Delayed Draw Term Loan 2 (g) |
— | 07/01/20 | 90 | 89,635 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Leisure Goods, Activities & Movies –(continued) |
||||||||||||||||
Zuffa LLC, Term Loan B |
4.50 | % | 02/25/20 | $ | 4,023 | $ | 4,047,926 | |||||||||
48,479,883 | ||||||||||||||||
Lodging & Casinos–2.65% |
||||||||||||||||
Boyd Gaming Corp., |
0.00 | % | 12/17/15 | 937 | 921,560 | |||||||||||
Class A Revolver Loan |
3.66 | % | 12/17/15 | 1,708 | 1,680,491 | |||||||||||
Class A Revolver Loan |
3.66 | % | 12/17/15 | 201 | 202,060 | |||||||||||
Caesars Entertainment Operating Co., |
4.44 | % | 01/26/18 | 117 | 103,192 | |||||||||||
Extended Term Loan B6 |
5.44 | % | 01/26/18 | 16,505 | 14,796,734 | |||||||||||
Cannery Casino Resorts, LLC, |
10.00 | % | 10/02/19 | 515 | 507,295 | |||||||||||
Term Loan B |
6.00 | % | 10/02/18 | 2,766 | 2,810,994 | |||||||||||
Centaur Acquisition, LLC, First Lien Term Loan |
5.25 | % | 02/20/19 | 2,404 | 2,432,460 | |||||||||||
Golden Nugget, Inc., Second Lien Term Loan |
3.45 | % | 11/03/14 | 117 | 106,391 | |||||||||||
Las Vegas Sands, LLC, Extended Term Loan B |
2.70 | % | 11/23/16 | 1,341 | 1,343,711 | |||||||||||
MGM Resorts International, Term Loan B |
3.50 | % | 12/20/19 | 3,789 | 3,805,392 | |||||||||||
Peninsula Gaming LLC, Term Loan |
4.25 | % | 11/20/17 | 156 | 157,880 | |||||||||||
Seminole Tribe of Florida, Term Loan |
3.00 | % | 04/29/20 | 5,000 | 5,016,250 | |||||||||||
Station Casinos, Inc., Term Loan B |
5.00 | % | 03/02/20 | 833 | 843,451 | |||||||||||
Tropicana Entertainment Inc., Term Loan B |
7.50 | % | 03/16/18 | 1,639 | 1,656,434 | |||||||||||
Twin River Management Group, Inc., Term Loan B |
6.50 | % | 11/09/18 | 4,987 | 5,061,384 | |||||||||||
41,445,679 | ||||||||||||||||
Nonferrous Metals & Minerals–1.76% |
||||||||||||||||
Alpha Natural Resources, LLC, Term Loan B |
3.50 | % | 05/22/20 | 3,448 | 3,441,489 | |||||||||||
AMC Entertainment, Inc., Term Loan |
3.50 | % | 04/30/20 | 2,951 | 2,966,666 | |||||||||||
Arch Coal, Inc., Term Loan B |
5.75 | % | 05/16/18 | 9,565 | 9,675,690 | |||||||||||
Noranda Aluminum Acquisition Corp., Term Loan B |
5.75 | % | 02/28/19 | 2,958 | 2,973,144 | |||||||||||
Novelis, Inc., Term Loan |
3.75 | % | 03/10/17 | 3,109 | 3,161,014 | |||||||||||
Walter Energy, Inc., Term Loan B |
5.75 | % | 04/02/18 | 5,250 | 5,287,694 | |||||||||||
27,505,697 | ||||||||||||||||
Oil & Gas–2.82% |
||||||||||||||||
Buffalo Gulf Coast Terminals LLC, Term Loan (Acquired 10/31/11-10/23/12; Cost $4,657,512) |
5.25 | % | 10/31/17 | 4,646 | 4,738,996 | |||||||||||
Chesapeake Energy Corp., Term Loan |
5.75 | % | 12/01/17 | 5,222 | 5,370,340 | |||||||||||
CITGO Petroleum Corp., Term Loan B |
8.00 | % | 06/24/15 | 768 | 775,353 | |||||||||||
EMG Utica, LLC, Term Loan |
4.75 | % | 03/27/20 | 1,820 | 1,833,550 | |||||||||||
Energy Transfer Equity, L.P., Term Loan B |
3.75 | % | 03/24/17 | 1,125 | 1,137,971 | |||||||||||
Glenn Pool Oil & Gas Trust, Term Loan (Acquired 06/18/11; Cost $1,074,418) |
4.50 | % | 05/02/16 | 1,074 | 1,079,790 | |||||||||||
NGPL PipeCo LLC, Term Loan B |
6.75 | % | 09/15/17 | 5,356 | 5,418,584 | |||||||||||
Obsidian Natural Gas Trust (United Kingdom), Term Loan (Acquired
12/09/10-05/05/11; |
7.00 | % | 11/02/15 | 1,203 | 1,214,653 | |||||||||||
Ruby Western Pipeline Holdings, LLC, Term Loan B |
3.50 | % | 03/27/20 | 1,931 | 1,945,564 | |||||||||||
Samson Investment Co., Second Lien Term Loan |
6.00 | % | 09/25/18 | 5,262 | 5,309,333 | |||||||||||
Saxon Enterprises, LLC, Term Loan B |
5.50 | % | 02/15/19 | 2,441 | 2,473,778 | |||||||||||
Tallgrass Operations, LLC, Term Loan |
5.25 | % | 11/13/18 | 2,825 | 2,852,760 | |||||||||||
Tervita Corp., (Canada), Term Loan |
6.25 | % | 05/15/18 | 5,579 | 5,656,139 | |||||||||||
Utex Industries Inc., |
4.75 | % | 04/10/20 | 1,300 | 1,310,538 | |||||||||||
Second Lien Term Loan |
8.75 | % | 04/09/21 | 390 | 396,413 | |||||||||||
Willbros United States Holdings, Inc., Term Loan B |
9.50 | % | 06/30/14 | 2,571 | 2,579,632 | |||||||||||
44,093,394 | ||||||||||||||||
Publishing–3.00% |
||||||||||||||||
Affiliated Media, Inc., Term Loan |
8.50 | % | 03/19/14 | 744 | 745,855 | |||||||||||
Cenveo Corp., Term Loan |
6.25 | % | 02/13/17 | 4,814 | 4,875,877 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Publishing–(continued) |
||||||||||||||||
EMI Music Publishing Ltd., Term Loan B |
4.25 | % | 06/29/18 | $ | 4,646 | $ | 4,689,979 | |||||||||
Endurance Business Media, Inc., First Lien Term Loan (Acquired 07/26/06; Cost $81,396) |
6.50 | % | 12/15/14 | 62 | 12,442 | |||||||||||
F&W Media, Inc., Term Loan |
7.75 | % | 06/09/14 | 47 | 46,184 | |||||||||||
Getty Images, Inc., |
— | 10/18/17 | 1,478 | 1,370,810 | ||||||||||||
Term Loan B |
4.75 | % | 10/18/19 | 11,254 | 11,342,754 | |||||||||||
Harland Clarke Holdings Corp., Extended Term Loan B2 |
5.44 | % | 06/30/17 | 380 | 375,742 | |||||||||||
Interactive Data Corp., Term Loan B |
3.75 | % | 02/11/18 | 898 | 902,305 | |||||||||||
Lamar Media Corp., Term Loan B |
4.00 | % | 12/30/16 | 9 | 9,071 | |||||||||||
MediMedia USA, Inc., Term Loan |
8.00 | % | 11/20/18 | 3,948 | 3,923,801 | |||||||||||
Merrill Communications, LLC, First Lien Term Loan |
7.25 | % | 03/08/18 | 4,997 | 5,046,864 | |||||||||||
Newsday LLC, Term Loan |
3.69 | % | 10/12/16 | 4,895 | 4,900,840 | |||||||||||
ProQuest LLC, Term Loan B |
6.00 | % | 04/13/18 | 1,797 | 1,811,637 | |||||||||||
Southern Graphics, Inc., Term Loan |
5.00 | % | 10/17/19 | 3,030 | 3,064,479 | |||||||||||
Tribune Co., Term Loan B |
4.00 | % | 12/31/19 | 3,789 | 3,837,521 | |||||||||||
46,956,161 | ||||||||||||||||
Radio & Television–3.86% |
||||||||||||||||
ASP NEP/NCP Holdco, Inc., |
9.50 | % | 07/22/20 | 132 | 137,201 | |||||||||||
Term Loan |
4.75 | % | 01/22/20 | 2,492 | 2,526,457 | |||||||||||
Barrington Broadcasting Group LLC, Term Loan B |
7.50 | % | 06/14/17 | 267 | 268,557 | |||||||||||
Clear Channel Communications, Inc., Term Loan B |
3.84 | % | 01/29/16 | 25,203 | 23,481,116 | |||||||||||
FoxCo Acquisition Sub, LLC, Term Loan B |
5.50 | % | 07/14/17 | 2,584 | 2,625,006 | |||||||||||
Granite Broadcasting Corp., Term Loan B |
8.50 | % | 05/23/18 | 1,711 | 1,730,726 | |||||||||||
Gray Television, Inc., Term Loan B |
4.75 | % | 10/15/19 | 2,224 | 2,258,071 | |||||||||||
LIN Television Corp., Term Loan B |
4.00 | % | 12/21/18 | 692 | 699,199 | |||||||||||
Local TV Finance, LLC, Extended Term Loan B2 |
4.20 | % | 05/07/15 | 1,174 | 1,184,767 | |||||||||||
Media Holdco, L.P., Term Loan B |
7.25 | % | 07/24/18 | 2,344 | 2,379,592 | |||||||||||
Mission Broadcasting, Inc., Term Loan B |
4.25 | % | 12/03/19 | 138 | 140,695 | |||||||||||
Nexstar Broadcasting, Inc., Term Loan |
4.25 | % | 12/03/19 | 327 | 332,798 | |||||||||||
Nine Entertainment Co., Term Loan B |
3.50 | % | 02/05/20 | 4,600 | 4,631,993 | |||||||||||
Raycom TV Broadcasting, Inc., Term Loan B |
4.25 | % | 05/31/17 | 2,097 | 2,107,385 | |||||||||||
Sinclair Television Group Inc., Term Loan B |
3.00 | % | 04/09/20 | 2,046 | 2,062,370 | |||||||||||
Univision Communications Inc., |
4.50 | % | 03/02/20 | 7,230 | 7,226,467 | |||||||||||
Refi Term Loan C2 |
4.50 | % | 03/02/20 | 3,500 | 3,500,000 | |||||||||||
Term Loan C3 |
4.00 | % | 03/02/20 | 3,147 | 3,129,591 | |||||||||||
60,421,991 | ||||||||||||||||
Retailers (except Food & Drug)–3.55% |
||||||||||||||||
Academy, Ltd., Term Loan |
4.50 | % | 08/03/18 | 2,282 | 2,308,568 | |||||||||||
CDW LLC, Term Loan |
3.50 | % | 04/29/20 | 7,061 | 7,049,801 | |||||||||||
Collective Brands, Inc., Term Loan |
7.25 | % | 10/09/19 | 2,795 | 2,833,175 | |||||||||||
David’s Bridal, Inc., |
0.25 | % | 10/11/17 | 1,573 | 1,478,634 | |||||||||||
Term Loan B |
5.00 | % | 10/11/19 | 1,227 | 1,237,748 | |||||||||||
FTD, Inc., Term Loan (Acquired 06/13/11; Cost $2,091,775) |
4.75 | % | 06/11/18 | 2,099 | 2,120,475 | |||||||||||
Guitar Center Inc., Extended Term Loan |
5.54 | % | 04/10/17 | 5,378 | 5,379,872 | |||||||||||
JC Penney Corp Inc., First Lien Term Loan |
6.00 | % | 05/21/18 | 5,417 | 5,503,013 | |||||||||||
Michaels Stores, Inc., Term Loan |
3.75 | % | 01/28/20 | 9,268 | 9,330,293 | |||||||||||
National Vision, Inc., Term Loan B |
7.00 | % | 08/02/18 | 2,760 | 2,815,704 | |||||||||||
Neiman Marcus Group, Inc. (The), Term Loan B |
4.00 | % | 05/16/18 | 1,969 | 1,972,197 | |||||||||||
OSP Group, Inc., Term Loan |
5.50 | % | 02/05/20 | 3,544 | 3,579,073 | |||||||||||
Pep Boys - Manny, Moe & Jack (The), Term Loan B (Acquired 09/27/12; Cost $1,471,236) |
5.00 | % | 10/11/18 | 1,481 | 1,501,584 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Retailers (except Food & Drug)–(continued) |
||||||||||||||||
Savers Inc., Term Loan |
5.00 | % | 07/09/19 | $ | 4,927 | $ | 4,967,517 | |||||||||
Toys ‘R’ Us-Delaware, Inc., |
6.00 | % | 09/01/16 | 1,021 | 1,025,901 | |||||||||||
Term Loan B3 |
5.25 | % | 05/25/18 | 518 | 515,320 | |||||||||||
Wilton Brands LLC, Term Loan |
7.50 | % | 08/30/18 | 2,002 | 2,022,662 | |||||||||||
55,641,537 | ||||||||||||||||
Steel–0.45% |
||||||||||||||||
JFB Firth Rixson Inc., Term Loan |
4.25 | % | 06/30/17 | 672 | 678,273 | |||||||||||
JMC Steel Group, Inc., Term Loan |
4.75 | % | 04/03/17 | 1,090 | 1,106,448 | |||||||||||
Tube City IMS Corp., Term Loan |
4.75 | % | 03/20/19 | 2,986 | 3,028,522 | |||||||||||
Waupaca Foundry, Inc., Term Loan |
4.50 | % | 06/29/17 | 2,156 | 2,165,104 | |||||||||||
6,978,347 | ||||||||||||||||
Surface Transport–0.98% |
||||||||||||||||
American Petroleum Tankers LLC, Term Loan B |
4.75 | % | 10/02/19 | 2,419 | 2,455,364 | |||||||||||
Avis Budget Car Rental, LLC, Term Loan B |
3.00 | % | 03/15/19 | 611 | 613,169 | |||||||||||
CEVA Group PLC (United Kingdom), |
0.18 | % | 08/31/16 | 216 | 207,203 | |||||||||||
Extended Term Loan B |
5.28 | % | 08/31/16 | 1,260 | 1,232,635 | |||||||||||
JHCI Acquisition, Inc., First Lien Term Loan |
2.70 | % | 06/19/14 | 2,341 | 2,325,667 | |||||||||||
Kenan Advantage Group, Inc., Term Loan |
3.75 | % | 06/10/16 | 783 | 788,897 | |||||||||||
Lineage Logistics Holdings, LLC, Term Loan |
4.50 | % | 04/26/19 | 282 | 283,521 | |||||||||||
Swift Transportation Co. Inc., |
2.95 | % | 12/21/16 | 804 | 813,050 | |||||||||||
Term Loan B2 |
4.00 | % | 12/21/17 | 1,075 | 1,090,933 | |||||||||||
U.S. Shipping Corp., Term Loan |
9.00 | % | 04/30/18 | 5,603 | 5,618,995 | |||||||||||
15,429,434 | ||||||||||||||||
Telecommunications–6.78% |
||||||||||||||||
Arris Group, Inc., Term Loan B |
3.50 | % | 04/17/20 | 4,318 | 4,328,376 | |||||||||||
Avaya, Inc., |
4.77 | % | 10/26/17 | 13,319 | 11,999,075 | |||||||||||
Term Loan B5 |
8.00 | % | 03/30/18 | 5,500 | 5,277,273 | |||||||||||
Cellular South, Inc., Term Loan |
3.25 | % | 05/22/20 | 2,299 | 2,310,118 | |||||||||||
Consolidated Communications, Inc., |
4.20 | % | 12/31/17 | 997 | 1,005,893 | |||||||||||
Term Loan B3 |
5.25 | % | 12/31/18 | 7,149 | 7,238,394 | |||||||||||
Cricket Communications, Inc., |
4.75 | % | 10/10/19 | 2,587 | 2,605,187 | |||||||||||
Term Loan C |
4.75 | % | 03/09/20 | 4,276 | 4,312,949 | |||||||||||
Crown Castle International Corp., Term Loan |
3.25 | % | 01/31/19 | 595 | 597,791 | |||||||||||
Fairpoint Communications, Inc., Term Loan |
7.50 | % | 02/14/19 | 6,047 | 5,998,966 | |||||||||||
Genesys Telecom Holdings, U.S., Inc., Term Loan B |
4.00 | % | 02/07/20 | 803 | 809,573 | |||||||||||
Global Tel*Link Corp., First Lien Term Loan |
5.00 | % | 05/22/20 | 3,725 | 3,740,075 | |||||||||||
Intelsat Jackson Holdings Ltd. (Bermuda), Term Loan |
5.25 | % | 02/01/14 | 15,787 | 15,811,322 | |||||||||||
Intelsat Jackson Holdings S.A., Term Loan B1 |
4.25 | % | 04/02/18 | 6,952 | 7,019,397 | |||||||||||
Level 3 Communications, Inc., |
4.75 | % | 08/01/19 | 181 | 182,495 | |||||||||||
Term Loan B |
5.25 | % | 08/01/19 | 9,328 | 9,470,848 | |||||||||||
Light Tower Fiber LLC, |
4.50 | % | 04/13/20 | 3,087 | 3,119,521 | |||||||||||
Second Lien Term Loan |
8.00 | % | 04/12/21 | 130 | 132,896 | |||||||||||
NTELOS Inc., Term Loan B |
5.75 | % | 11/08/19 | 4,381 | 4,337,629 | |||||||||||
Securus Technologies Holdings, Inc., Term Loan |
4.75 | % | 04/30/20 | 248 | 248,495 | |||||||||||
Syniverse Holdings, Inc., |
4.00 | % | 04/23/19 | 6,111 | 6,149,369 | |||||||||||
Term Loan |
5.00 | % | 04/23/19 | 2,043 | 2,062,912 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Telecommunications–(continued) |
||||||||||||||||
Time Warner Telecom Holdings Inc., Term Loan B |
2.70 | % | 04/17/20 | $ | 1,545 | $ | 1,554,520 | |||||||||
TNS, Inc., |
5.00 | % | 02/14/20 | 1,287 | 1,306,194 | |||||||||||
Second Lien Term Loan |
9.00 | % | 08/14/20 | 115 | 115,502 | |||||||||||
U.S. TelePacific Corp., Term Loan B |
5.75 | % | 02/23/17 | 2,278 | 2,282,194 | |||||||||||
Windstream Corp., Term Loan B4 |
3.50 | % | 01/23/20 | 2,085 | 2,098,721 | |||||||||||
106,115,685 | ||||||||||||||||
Utilities–1.90% |
||||||||||||||||
AES Corp. (The), Term Loan B |
3.75 | % | 06/01/18 | 1,007 | 1,018,848 | |||||||||||
Calpine Corp., |
4.00 | % | 04/01/18 | 792 | 799,922 | |||||||||||
Term Loan B1 |
3.00 | % | 05/04/20 | 4,146 | 4,130,571 | |||||||||||
Term Loan B2 |
3.25 | % | 01/31/22 | 2,073 | 2,073,868 | |||||||||||
Term Loan B3 |
4.00 | % | 10/09/19 | 6,604 | 6,676,977 | |||||||||||
Dynegy Holdings Inc., Term Loan B2 |
4.00 | % | 04/23/20 | 1,779 | 1,789,214 | |||||||||||
La Frontera Generation, LLC, Term Loan |
1.00 | % | 09/30/20 | 669 | 675,993 | |||||||||||
LSP Madison Funding LLC, Term Loan |
5.50 | % | 06/28/19 | 1,059 | 1,070,663 | |||||||||||
NRG Energy Inc., Term Loan B |
3.25 | % | 07/02/18 | 978 | 973,328 | |||||||||||
NSG Holdings LLC, Term Loan |
4.75 | % | 12/11/19 | 615 | 624,718 | |||||||||||
Texas Competitive Electric Holdings Co., LLC, |
4.72 | % | 10/10/17 | 5,010 | 3,637,974 | |||||||||||
Term Loan |
3.72 | % | 10/10/14 | 8,006 | 6,220,000 | |||||||||||
29,692,076 | ||||||||||||||||
Total Variable Rate Senior Loan Interests |
1,346,963,528 | |||||||||||||||
Bonds and Notes–4.86% |
||||||||||||||||
Air Transport–0.31% |
||||||||||||||||
Air Lease Corp. |
7.38 | % | 01/30/19 | 3,757 | 4,301,342 | |||||||||||
Continental Airlines, Inc. (h) |
6.75 | % | 09/15/15 | 460 | 483,000 | |||||||||||
4,784,342 | ||||||||||||||||
Auto Parts & Equipment–0.11% |
||||||||||||||||
Gestamp Funding Luxembourg S.A. (Luxembourg) (h) |
5.63 | % | 05/31/20 | 1,747 | 1,713,655 | |||||||||||
Automotive–0.16% |
||||||||||||||||
Goodyear Tire & Rubber Co. (The) |
6.50 | % | 03/01/21 | 1,418 | 1,499,535 | |||||||||||
Schaeffler Finance B.V. (Netherlands) (h) |
4.75 | % | 05/15/21 | 1,042 | 1,038,211 | |||||||||||
2,537,746 | ||||||||||||||||
Cable & Satellite Television–0.10% |
||||||||||||||||
Lynx I Corp. (United Kingdom) (h) |
5.38 | % | 04/15/21 | 200 | 208,500 | |||||||||||
UPC Broadband Holdings, B.V. (Netherlands) (h) |
7.25 | % | 11/15/21 | 1,074 | 1,208,250 | |||||||||||
UPC Broadband Holdings, B.V. (Netherlands) (h) |
6.88 | % | 01/15/22 | 173 | 188,955 | |||||||||||
1,605,705 | ||||||||||||||||
Chemicals & Plastics–0.40% |
||||||||||||||||
Hexion Specialty Chemicals, Inc. (h) |
6.63 | % | 04/15/20 | 5,355 | 5,582,587 | |||||||||||
Ineos Holdings Ltd. (h) |
8.38 | % | 02/15/19 | 241 | 270,522 | |||||||||||
Ineos Holdings Ltd. (h) |
7.50 | % | 05/01/20 | 157 | 173,093 | |||||||||||
Taminco Global Chemical Corp. (h) |
9.75 | % | 03/31/20 | 226 | 257,640 | |||||||||||
6,283,842 | ||||||||||||||||
Containers & Glass Products–0.86% |
||||||||||||||||
Ardagh Glass Finance (Ireland) (h) |
7.00 | % | 11/15/20 | 858 | 896,610 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Containers & Glass Products –(continued) |
||||||||||||||||
Reynolds Group Holdings Inc. |
7.88 | % | 08/15/19 | $ | 1,854 | $ | 2,039,400 | |||||||||
Reynolds Group Holdings Inc. |
9.88 | % | 08/15/19 | 1,879 | 2,057,505 | |||||||||||
Reynolds Group Holdings Inc. |
5.75 | % | 10/15/20 | 8,318 | 8,525,950 | |||||||||||
13,519,465 | ||||||||||||||||
Data Processing & Outsourced Services–0.22% |
||||||||||||||||
First Data Corp. (h) |
6.75 | % | 11/01/20 | 3,207 | 3,371,359 | |||||||||||
Diversified Chemicals–0.01% |
||||||||||||||||
Ineos Group Holdings PLC (h) |
6.13 | % | 08/15/18 | 200 | 199,500 | |||||||||||
Food Products–0.03% |
||||||||||||||||
Chiquita Brands LLC (h) |
7.88 | % | 02/01/21 | 422 | 455,232 | |||||||||||
Forest Products–0.11% |
||||||||||||||||
Verso Paper Holding LLC |
11.75 | % | 01/15/19 | 1,626 | 1,731,690 | |||||||||||
Health Care Equipment–0.03% |
||||||||||||||||
Biomet Inc. (h) |
6.50 | % | 08/01/20 | 469 | 495,967 | |||||||||||
Health Care Facilities–0.06% |
||||||||||||||||
Community Health Systems, Inc. |
5.13 | % | 08/15/18 | 940 | 989,350 | |||||||||||
Healthcare–0.41% |
||||||||||||||||
Accellent Inc. |
8.38 | % | 02/01/17 | 2,878 | 3,065,070 | |||||||||||
DJO Finance LLC |
8.75 | % | 03/15/18 | 1,386 | 1,538,460 | |||||||||||
Kindred Healthcare, Inc. |
8.25 | % | 06/01/19 | 542 | 571,810 | |||||||||||
Kinetic Concepts, Inc., |
10.50 | % | 11/01/18 | 1,140 | 1,254,000 | |||||||||||
6,429,340 | ||||||||||||||||
Independent Power Producers & Energy Traders–0.06% |
||||||||||||||||
NRG Energy Inc. (h) |
6.63 | % | 03/15/23 | 880 | 946,000 | |||||||||||
Lodging & Casinos–0.02% |
||||||||||||||||
Chester Downs & Marina LLC (h) |
9.25 | % | 01/15/20 | 331 | 324,380 | |||||||||||
Nonferrous Metals & Minerals–0.07% |
||||||||||||||||
TiZir Ltd. (United Kingdom) |
9.00 | % | 09/28/17 | 1,000 | 1,027,500 | |||||||||||
Oil & Gas–0.38% |
||||||||||||||||
NGPL PipeCo LLC (h) |
9.63 | % | 06/01/19 | 786 | 880,320 | |||||||||||
Pacific Drilling S.A. (Luxembourg) (h) |
5.38 | % | 06/01/20 | 2,798 | 2,783,402 | |||||||||||
Tervita Corp. (Canada) (h) |
8.00 | % | 11/15/18 | 1,949 | 2,060,678 | |||||||||||
Western Refining, Inc. (h) |
6.25 | % | 04/01/21 | 190 | 197,600 | |||||||||||
5,922,000 | ||||||||||||||||
Publishing–0.06% |
||||||||||||||||
Merrill Communications, LLC |
10.00 | % | 03/08/23 | 1,010 | 863,888 | |||||||||||
Radio & Television–0.50% |
||||||||||||||||
Clear Channel Communications, Inc. (h) |
9.00 | % | 12/15/19 | 1,713 | 1,738,695 | |||||||||||
Univision Communications Inc. (h) |
6.75 | % | 09/15/22 | 4,645 | 4,993,375 | |||||||||||
Univision Communications Inc. (h) |
6.88 | % | 05/15/19 | 1,000 | 1,070,000 | |||||||||||
7,802,070 | ||||||||||||||||
Retailers (except Food & Drug)–0.09% |
||||||||||||||||
Claire’s Stores, Inc. (h) |
9.00 | % | 03/15/19 | 1,202 | 1,361,265 | |||||||||||
Telecommunications–0.56% |
||||||||||||||||
GNET Escrow Corp. (h) |
12.13 | % | 07/01/18 | 2,154 | 2,331,705 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value | |||||||||||||
Telecommunications–(continued) |
||||||||||||||||
Goodman Networks, Inc. (h) |
13.13 | % | 07/01/18 | $ | 2,600 | $ | 2,899,000 | |||||||||
Wind Acquisition Finance S.A. (Italy) (h) |
6.50 | % | 04/30/20 | 256 | 270,080 | |||||||||||
Wind Acquisition Finance S.A. (Italy) (h) |
7.25 | % | 02/15/18 | 1,612 | 1,688,570 | |||||||||||
Windstream Corp. |
7.50 | % | 06/01/22 | 1,484 | 1,580,460 | |||||||||||
Windstream Corp. |
6.38 | % | 08/01/23 | 17 | 16,915 | |||||||||||
8,786,730 | ||||||||||||||||
Utilities–0.31% |
||||||||||||||||
Calpine Corp. (h) |
7.50 | % | 02/15/21 | 3,185 | 3,471,318 | |||||||||||
Calpine Corp. (h) |
7.88 | % | 01/15/23 | — | 286 | |||||||||||
NRG Energy Inc. |
7.63 | % | 05/15/19 | 1,366 | 1,461,620 | |||||||||||
4,933,224 | ||||||||||||||||
Total Bonds and Notes |
76,084,250 | |||||||||||||||
Structured Products–3.31% |
||||||||||||||||
Apidos Cinco CDO Ltd. (Cayman Islands) (h)(i) |
4.53 | % | 05/14/20 | 345 | 331,230 | |||||||||||
Apidos CLO II (Cayman Islands) (h)(i) |
5.03 | % | 12/21/18 | 919 | 916,905 | |||||||||||
Apidos CLO X Ltd. (Cayman Islands) (h)(i) |
6.53 | % | 10/30/22 | 1,750 | 1,756,846 | |||||||||||
Apidos IX CDO Ltd. (Cayman Islands) (h)(i) |
6.78 | % | 07/15/23 | 958 | 966,626 | |||||||||||
Apidos Quattro CDO Ltd. (Cayman Islands) (h)(i) |
3.88 | % | 01/20/19 | 408 | 381,786 | |||||||||||
Apidos X CDO Ltd. (Cayman Islands) (h)(i) |
6.53 | % | 10/30/22 | 1,367 | 1,372,348 | |||||||||||
Apidos XI CDO Ltd. (h)(i) |
5.25 | % | 01/17/23 | 2,070 | 2,011,899 | |||||||||||
Ares XI CLO Ltd. (h)(i) |
3.28 | % | 10/11/21 | 724 | 713,710 | |||||||||||
Atrium CDO Corp. (Acquired 04/25/13; Cost $3,388,381) (h)(i) |
4.50 | % | 07/16/25 | 3,742 | 3,388,381 | |||||||||||
Atrium IV CDO Corp. (h) |
9.18 | % | 06/08/19 | 205 | 213,145 | |||||||||||
Banc of America Large Loan Trust |
3.70 | % | 11/12/15 | 10,570 | 10,517,536 | |||||||||||
Columbus Nova CLO Ltd. (h)(i) |
3.87 | % | 05/16/19 | 1,093 | 1,005,462 | |||||||||||
Columbus Nova CLO Ltd. (h)(i) |
3.87 | % | 05/16/19 | 429 | 394,641 | |||||||||||
Flagship CLO VI Corp. (h)(i) |
5.03 | % | 06/10/21 | 987 | 944,691 | |||||||||||
Flagship CLO VI Corp. (h)(i) |
5.03 | % | 06/10/21 | 3,254 | 3,115,275 | |||||||||||
Four Corners CLO II, Ltd. (h)(i) |
2.13 | % | 01/26/20 | 103 | 99,312 | |||||||||||
Four Corners CLO II, Ltd. (h)(i) |
2.15 | % | 01/26/20 | 310 | 298,902 | |||||||||||
Gramercy Park CLO Ltd. (h)(i) |
5.78 | % | 07/17/23 | 1,336 | 1,347,489 | |||||||||||
Halcyon Loan Investors CLO II, Ltd. (Cayman Islands) (h)(i) |
3.88 | % | 04/24/21 | 917 | 848,035 | |||||||||||
ING Investment Management CLO I Ltd. (h)(i) |
6.04 | % | 04/15/24 | 4,808 | 4,697,304 | |||||||||||
ING Investment Management CLO III, Ltd. (h)(i) |
3.78 | % | 12/13/20 | 1,188 | 1,103,329 | |||||||||||
ING Investment Management CLO III, Ltd. (h)(i) |
6.13 | % | 10/15/22 | 1,243 | 1,254,223 | |||||||||||
ING Investment Management CLO IV, Ltd. (Cayman Islands) (h)(i) |
4.53 | % | 06/14/22 | 293 | 274,158 | |||||||||||
ING Investment Management CLO IV, Ltd. (h)(i) |
6.03 | % | 10/15/23 | 1,861 | 1,877,748 | |||||||||||
KKR Financial CLO Ltd. (h)(i) |
5.50 | % | 12/15/24 | 2,100 | 2,074,188 | |||||||||||
Madison Park Funding IV Ltd. (h)(i) |
3.88 | % | 03/22/21 | 1,344 | 1,296,662 | |||||||||||
Pacifica CDO VI, Ltd. (h)(i) |
4.03 | % | 08/15/21 | 565 | 513,485 | |||||||||||
Sierra CLO II Ltd. (i) |
3.78 | % | 01/22/21 | 733 | 639,703 | |||||||||||
Silverado CLO II Ltd. (h)(i) |
4.03 | % | 10/16/20 | 886 | 812,134 | |||||||||||
Slater Mill Loan Fund, L.P. (h)(i) |
5.77 | % | 08/17/22 | 1,108 | 1,107,959 | |||||||||||
Symphony CLO IX, Ltd. (h)(i) |
5.28 | % | 04/16/22 | 1,901 | 1,848,092 | |||||||||||
Symphony CLO VIII, Ltd. (h)(i) |
6.03 | % | 01/09/23 | 1,035 | 1,037,795 | |||||||||||
Symphony CLO XI, Ltd. (h)(i) |
5.31 | % | 01/17/25 | 2,640 | 2,590,772 | |||||||||||
Total Structured Products |
51,751,771 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Shares | Value | |||||||
Common Stocks & Other Equity Interests–0.48% |
||||||||
Aerospace & Defense–0.00% |
||||||||
ACTS Aero Technical Support & Services, Inc. (h)(j) |
122,977 | $ | 1,231 | |||||
Automotive–0.01% |
||||||||
Dayco Products, LLC (h)(j) |
3,261 | 112,506 | ||||||
Dayco Products, LLC (h)(j) |
856 | 29,532 | ||||||
142,038 | ||||||||
Building & Development–0.00% |
||||||||
Lake at Las Vegas Joint Venture, LLC, Class A, (Acquired 04/28/10-7/15/10; |
518 | 0 | ||||||
Lake at Las Vegas Joint Venture, LLC, Class B, (Acquired 06/30/10; |
4 | 0 | ||||||
Lake at Las Vegas Joint Venture, LLC, Class C, Wts. expiring 07/15/15, |
17 | 0 | ||||||
Lake at Las Vegas Joint Venture, LLC, Class D, Wts. expiring 07/15/15, |
24 | 0 | ||||||
Lake at Las Vegas Joint Venture, LLC, Class E, Wts. expiring 07/15/15, |
27 | 0 | ||||||
Lake at Las Vegas Joint Venture, LLC, Class F, Wts. expiring 07/15/15, |
30 | 0 | ||||||
Lake at Las Vegas Joint Venture, LLC, Class G, Wts. expiring 07/15/15, |
34 | 0 | ||||||
0 | ||||||||
Building Products–0.18% |
||||||||
Masonite Worldwide Holdings, Inc. (Canada) (h)(j) |
53,093 | 2,874,986 | ||||||
Chemicals & Plastics–0.01% |
||||||||
Metokote Corp., Wts. expiring 11/22/23 (Acquired 12/05/11; Cost $0) (h)(j) |
61 | 106,598 | ||||||
Construction & Engineering–0.00% |
||||||||
United Subcontractors, Inc., (h)(j) |
4,840 | 4,840 | ||||||
Electric Utilities–0.00% |
||||||||
Bicent Power, LLC -Series A, -Wts. expiring 08/21/22, (Acquired 08/21/12; |
101 | 0 | ||||||
Bicent Power, LLC -Series B, -Wts. expiring 08/21/22, (Acquired 08/21/12; |
164 | 0 | ||||||
0 | ||||||||
Financial Intermediaries–0.00% |
||||||||
Bankruptcy Management Solutions, Inc., (h)(k) |
214 | 4 | ||||||
Bankruptcy Management Solutions, Inc., -Wts. expiring 10/01/17, |
18 | 0 | ||||||
4 | ||||||||
Lodging & Casinos–0.03% |
||||||||
Twin River Worldwide Holdings, Inc., Class A (h)(j) |
18,663 | 440,913 | ||||||
Paper Products–0.00% |
||||||||
Xerium Technologies, Inc. (j) |
1,766 | 17,430 | ||||||
Publishing–0.05% |
||||||||
Endurance Business Media, Inc., Class A (h)(j) |
124 | 12 | ||||||
F&W Media, Inc. (h)(k) |
288 | 14 | ||||||
F&W Media, Inc., Wts. expiring 06/09/14 (h)(k) |
559 | 28 | ||||||
Merrill Communications LLC |
133,776 | 277,585 |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Shares | Value | |||||||
Publishing–(continued) |
||||||||
Tribune Co. Class A |
9,050 | $ | 513,588 | |||||
791,227 | ||||||||
Radio & Television–0.18% |
||||||||
Ion Media Networks, Inc. (h)(j) |
4,471 | 2,749,665 | ||||||
Surface Transport–0.00% |
||||||||
U.S. Shipping Corp. (Acquired 09/28/07-09/30/09; Cost $87,805) (h)(j) |
87,805 | 0 | ||||||
U.S. Shipping Corp. (Acquired 09/28/07-09/30/09; Cost $0) (h)(j) |
6,189 | 0 | ||||||
0 | ||||||||
Telecommunications–0.02% |
||||||||
FairPoint Communications, Inc. (j) |
44,928 | 381,888 | ||||||
Total Common Stocks & Other Equity Interests |
7,510,820 | |||||||
Money Market Funds–9.50% |
||||||||
Liquid Assets Portfolio –Institutional Class (l) |
74,349 | 74,349,320 | ||||||
Premier Portfolio –Institutional Class (l) |
74,349 | 74,349,320 | ||||||
Total Money Market Funds |
148,698,640 | |||||||
TOTAL INVESTMENTS–104.18% (Cost $1,619,515,617) |
1,631,009,009 | |||||||
OTHER ASSETS LESS LIABILITIES–(4.18)% |
(65,414,416 | ) | ||||||
NET ASSETS–100.00% |
$ | 1,565,594,593 |
Investment Abbreviations: | ||
CDO | —Collateralized Debt Obligation | |
CLO | —Collateralized Loan Obligation | |
DIP | —Debtor-in-possession | |
LOC | —Letter of Credit | |
PIK | —Payment in Kind | |
Syn LOC | —Synthetic Letter of Credit | |
Wts. | —Warrants |
Notes to Schedule of Investments:
(a) | Variable rate senior loan 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 an expected average life of three to five years. |
(b) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended (the “1933 Act”), 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) | Defaulted security. Currently, the issuer is in default with respect to principal and interest payments. The aggregate value of these securities at May 31, 2013 was $3,652,266, which represented less than 1% of the Fund’s Net Assets. |
(d) | The borrower has filed for protection in federal bankruptcy court. |
(e) | All or a portion of this security is Payment-in-Kind. |
(f) | All or a portion of this holding is subject to unfunded loan commitments. Interest rate will be determined at the time of funding. See Note 3. |
(g) | This floating rate interest will settle after May 31, 2013, at which time the interest rate will be determined. |
(h) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at May 31, 2013 was $90,474,616, which represented 5.78% of the Fund’s Net Assets. |
(i) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on May 31, 2013. |
(j) | Non-income producing securities acquired through the restructuring of senior loans. |
(k) | Acquired as part of a bankruptcy restructuring. |
(l) | The money market fund and the Fund are affiliated by having the same investment adviser. |
See accompanying notes which are an integral part of this schedule.
Invesco Floating Rate Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 — Significant Accounting Policies
A. | Security Valuations – Variable rate senior loan interests 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 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
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) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Invesco Floating Rate Fund
A. | Security Valuations – (continued) |
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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 the settlement date. Facility fees received may be amortized over the life of the loan. 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 net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | 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”.
Invesco Floating Rate Fund
E. | Bank Loan Risk Disclosures – Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and number of market participants, there is no organized exchange or board of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods. Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund manages counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. |
F. | 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. |
NOTE 2 — Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level | 1 – Prices are determined using quoted prices in an active market for identical assets. |
Level | 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
Level | 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of May 31, 2013. 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 |
$ | 152,486,533 | $ | 3,616,329 | $ | 106,598 | $ | 156,209,460 | ||||||||
Variable Rate Senior Loan Interests |
— | 1,287,734,419 | 59,229,109 | 1,346,963,528 | ||||||||||||
Bonds and Notes |
— | 76,084,250 | — | 76,084,250 | ||||||||||||
Structured Products |
— | 48,363,390 | 3,388,381 | 51,751,771 | ||||||||||||
Total Investments |
$ | 152,486,533 | $ | 1,415,798,388 | $ | 62,724,088 | $ | 1,631,009,009 |
Invesco Floating Rate Fund
A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Variable Rate Senior Loan Interests during the nine months ended May 31, 2013:
Beginning Balance, as August 31, |
Purchases | Sales | Accrued discounts/ premiums |
Net realized gain |
Net change in unrealized appreciation |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance, as of May 31, 2013 |
||||||||||||||||||||||||||||
Variable Rate Senior Loan Interests |
$- | $33,016,627 | $ | (524,370) | $20,193 | $9,289 | $650,747 | $26,056,623 | $- | $59,229,109 |
The Variable Rate Senior Loan Interests determined to be level 3 at the end of the reporting period were valued utilizing quotes from a third-party vendor pricing service. Investments in Variable Rate Senior Loan Interests were transferred from Level 2 to Level 3 due to third-party vendor quotations utilizing single market quotes and was assumed to have occurred at the end of the reporting period. A significant change in third-party pricing information could result in a significantly lower or higher value in Level 3 investments.
NOTE 3 — Unfunded Loan Commitments
The Fund invests in participations, assignments, or acts as a party to the primary lending syndicate of a Senior Loan interest to corporations, partnerships, and other entities. When the Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Fund and the borrower.
At the nine months ended May 31, 2013, there were no interests in Senior Loans purchased by the Fund on a participation basis.
As of May 31, 2013, the Fund had unfunded loan commitments, which could be extended at the option of the borrower, pursuant to the following loan agreements with the following borrowers:
Borrower | Principal Amount |
Value | ||||||||
AMF Bowling Worldwide |
Delayed Draw Term Loan | $142,429 | $141,717 | |||||||
Boyd Gaming Corp. |
Revolver Loan | 936,783 | 921,560 | |||||||
Delta Air Lines, Inc. |
Revolver Loan | 1,144,857 | 1,053,269 | |||||||
Delta Air Lines, Inc. |
Revolver Loan | 7,785,030 | 7,424,972 | |||||||
Lake at Las Vegas Joint Venture, LLC |
Revolver Loan | 10,794 | 4,101 | |||||||
Reynolds Group Holdings Inc. |
Revolver Loan | 3,986,510 | 3,984,019 | |||||||
West Corp. |
Revolver Loan | 1,747,822 | 1,573,039 | |||||||
$15,754,225 | $15,102,677 |
Invesco Floating Rate Fund
NOTE 4 — Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $1,518,764,112 and $985,048,326, 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 |
$ | 24,337,041 | ||
Aggregate unrealized (depreciation) of investment securities |
(14,762,661 | ) | ||
Net unrealized appreciation of investment securities |
$ | 9,574,380 | ||
Cost of investments for tax purposes is $1,621,434,629. |
Invesco Floating Rate Fund
Invesco Global Real Estate Income Fund Quarterly Schedule of Portfolio Holdings May 31, 2013 |
invesco.com/us | GREI-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco Global Real Estate Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Global Real Estate Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Global Real Estate Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Global Real Estate Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Global Real Estate Income Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices will be used to value debt obligations and corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco Global Real Estate Income Fund
A. Security Valuations –(continued)
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 net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund 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 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. | 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.
Invesco Global Real Estate Income Fund
E. | 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. |
F. | Other Risks – The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly. |
Because, the Fund concentrates its assets in the real estate industry, an investment in the Fund will be closely linked to the performance of the real estate markets. Property values may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments.
NOTE 2 -- Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | – Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 | – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 | – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of May 31, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
During the nine months ended May 31, 2013, there were transfers from Level 1 to Level 2 of $131,451,472 and from Level 2 to Level 1 of $7,302,591, due to foreign fair value adjustments, additionally, there were transfers from Level 2 to Level 1 of $8,888,774, due to securities trading on an exchange.
Invesco Global Real Estate Income Fund
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Australia |
$ | 5,683,110 | $ | 84,986,697 | $ | — | $ | 90,669,807 | ||||||||
Brazil |
— | 1,969,120 | — | 1,969,120 | ||||||||||||
Canada |
52,807,818 | — | — | 52,807,818 | ||||||||||||
China |
— | 15,986,215 | — | 15,986,215 | ||||||||||||
France |
18,229,762 | 11,997,065 | — | 30,226,827 | ||||||||||||
Germany |
— | 5,429,100 | — | 5,429,100 | ||||||||||||
Hong Kong |
3,012,139 | 18,798,064 | — | 21,810,203 | ||||||||||||
Ireland |
— | 8,227,667 | — | 8,227,667 | ||||||||||||
Japan |
827,341 | 58,876,422 | — | 59,703,763 | ||||||||||||
Netherlands |
— | 2,951,780 | — | 2,951,780 | ||||||||||||
New Zealand |
— | 4,154,318 | — | 4,154,318 | ||||||||||||
Singapore |
7,302,591 | 31,246,793 | — | 38,549,384 | ||||||||||||
South Africa |
6,704,393 | 3,614,508 | — | 10,318,901 | ||||||||||||
Sweden |
2,075,830 | 4,315,377 | — | 6,391,207 | ||||||||||||
United Kingdom |
5,492,296 | 70,993,992 | — | 76,486,288 | ||||||||||||
United States |
489,285,546 | 150,102,160 | — | 639,387,706 | ||||||||||||
Total Investments |
$ | 591,420,826 | $ | 473,649,278 | $ | — | $ | 1,065,070,104 |
NOTE 3 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $808,722,370 and $328,047,689, 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 |
$ | 42,663,289 | ||
Aggregate unrealized (depreciation) of investment securities |
(17,911,651) | |||
Net unrealized appreciation of investment securities |
$ | 24,751,638 | ||
Cost of investments for tax purposes is $1,040,318,466. |
Invesco Global Real Estate Income Fund
Invesco Growth and Income Fund | ||
Quarterly Schedule of Portfolio Holdings | ||
May 31, 2013 |
invesco.com/us | VK-GRI-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco Growth and Income Fund
See accompanying notes which are an integral part of this schedule.
Invesco Growth and Income Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 — Significant Accounting Policies
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco Growth and Income Fund
A. | Security Valuations – (continued) |
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 net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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. | 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.
E. | 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 |
Invesco Growth and Income Fund
E. | Foreign Currency Contracts – (continued) |
value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
F. | Call Options Written – The Fund may write covered call options. A covered 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 covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized gains and losses on these contracts are included in the Statement of Operations. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. |
G. | Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
NOTE 2 — 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 May 31, 2013. 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 |
$ | 8,028,918,361 | $ | 84,446,811 | $ | — | $ | 8,113,365,172 | ||||||||
Foreign Currency Contracts* |
— | (1,119,839) | — | (1,119,839) | ||||||||||||
Options* |
55,589 | — | — | 55,589 | ||||||||||||
Total Investments |
$ | 8,028,973,950 | $ | 83,326,972 | $ | — | $ | 8,112,300,922 |
* Unrealized appreciation (depreciation).
Invesco Growth and Income Fund
NOTE 3 — Derivative Investments
Open Foreign Currency Contracts | ||||||||||||||||||||||
|
||||||||||||||||||||||
Settlement Date |
Contract to | Notional | Unrealized | |||||||||||||||||||
Counterparty | Deliver | Receive | Value | (Depreciation) | ||||||||||||||||||
|
||||||||||||||||||||||
6/21/13 |
State Street | CHF | 28,526,733 | USD | 29,400,820 | $ | 29,835,669 | $ (434,849) | ||||||||||||||
|
||||||||||||||||||||||
6/21/13 |
Bank of New York | CHF | 41,462,300 | USD | 42,764,170 | 43,364,778 | (600,608) | |||||||||||||||
|
||||||||||||||||||||||
6/21/13 |
Bank of New York | EUR | 41,908,244 | USD | 53,914,662 | 54,468,530 | (553,868) | |||||||||||||||
|
||||||||||||||||||||||
6/21/13 |
State Street | GBP | 69,052,263 | USD | 104,514,053 | 104,895,539 | (381,486) | |||||||||||||||
|
||||||||||||||||||||||
$ (1,970,811) | ||||||||||||||||||||||
|
||||||||||||||||||||||
Settlement Date |
Contract to | Notional | Unrealized | |||||||||||||||||||
Counterparty | Deliver | Receive | Value | Appreciation | ||||||||||||||||||
|
|
|
||||||||||||||||||||
6/21/13 |
State Street | CAD | 62,833,462 | USD | 61,040,697 | $ | 60,575,411 | $ 465,286 | ||||||||||||||
|
||||||||||||||||||||||
6/21/13 |
Bank of New York | CAD | 48,225,875 | USD | 46,872,434 | 46,492,778 | 379,656 | |||||||||||||||
|
||||||||||||||||||||||
6/21/13 |
State Street | USD | 1,651,982 | GBP | 1,091,462 | $ | 1,658,012 | $ 6,030 | ||||||||||||||
|
||||||||||||||||||||||
$ 850,972 | ||||||||||||||||||||||
|
||||||||||||||||||||||
Total foreign currency contracts |
|
$ (1,119,839) | ||||||||||||||||||||
|
Currency Abbreviations:
CAD — Canadian Dollar
CHF – Swiss Franc
EUR — Euro
GBP — British Pound Sterling
USD — U.S. Dollar
Transactions During the Period | ||||
| ||||
Call Option Contracts | ||||
| ||||
Number of Contracts |
Premiums Received | |||
| ||||
Beginning of period |
— | $ — | ||
| ||||
Written |
17,545 | 1,239,739 | ||
| ||||
End of period |
17,545 | $ 1,239,739 | ||
|
Open Options Written | ||||||||||||
| ||||||||||||
Contract Month | Strike Price |
Number of Contracts |
Premiums Received |
Value | Unrealized Appreciation (Depreciation) | |||||||
| ||||||||||||
Calls |
||||||||||||
Avon Products, Inc. |
July-13 | $24 | 14,630 | $884,642 | $950,950 | $(66,308) | ||||||
| ||||||||||||
eBay Inc. |
October-13 | 65 | 2,915 | 355,097 | 233,200 | 121,897 | ||||||
| ||||||||||||
17,545 | $1,239,739 | $1,184,150 | $55,589 | |||||||||
|
Invesco Growth and Income Fund
NOTE 4 — Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $1,842,205,217 and $1,814,883,999, 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 |
$ | 1,950,646,488 | ||
Aggregate unrealized (depreciation) of investment securities |
(14,910,802) | |||
Net unrealized appreciation of investment securities |
$ | 1,935,735,686 | ||
Cost of investments for tax purposes is $6,177,629,486. |
Invesco Growth and Income Fund
Invesco Pennsylvania Tax Free Income Fund Quarterly Schedule of Portfolio Holdings May 31, 2013 |
invesco.com/us | VK-PTFI-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments
May 31, 2013
(Unaudited)
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||
Municipal Obligations–100.68% |
||||||||||||||
Pennsylvania–90.32% |
||||||||||||||
Allegheny (County of) Higher Education Building Authority (Chatham University); Series 2012 A, University RB |
5.00% | 09/01/35 | $ | 1,000 | $ | 1,058,770 | ||||||||
Allegheny (County of) Higher Education Building Authority (Duquesne University); |
||||||||||||||
Series 1998, Ref. University RB (INS-AMBAC) (a) |
5.50% | 03/01/20 | 1,750 | 2,081,327 | ||||||||||
Series 2011 A, University RB |
5.50% | 03/01/31 | 550 | 632,324 | ||||||||||
Allegheny (County of) Higher Education Building Authority (Robert Morris University); Series 2008 A, University RB |
6.00% | 10/15/38 | 1,000 | 1,090,730 | ||||||||||
Allegheny (County of) Hospital Development Authority (Ohio Valley General Hospital); Series 2005 A, RB |
5.00% | 04/01/25 | 1,600 | 1,562,896 | ||||||||||
Allegheny (County of) Hospital Development Authority (University of Pittsburgh Medical Center); Series 2009, RB |
5.63% | 08/15/39 | 1,250 | 1,398,562 | ||||||||||
Allegheny (County of) Industrial Development Authority (Residential Resources, Inc.); Series 2006, Lease RB |
5.10% | 09/01/26 | 980 | 990,731 | ||||||||||
Allegheny (County of) Redevelopment Authority (Pittsburgh Mills); Series 2004, Tax Allocation RB |
5.60% | 07/01/23 | 1,220 | 1,254,294 | ||||||||||
Allegheny (County of) Residential Finance Authority; Series 2006 TT, Single Family Mortgage RB (CEP-GNMA) (b) |
5.00% | 05/01/35 | 905 | 933,299 | ||||||||||
Allegheny (County of); Series 2008 C 61, Unlimited Tax GO Bonds (INS-AGC) (a) |
5.00% | 12/01/33 | 500 | 546,590 | ||||||||||
Allegheny Valley Joint School District; Series 2004 A, Unlimited Tax GO Bonds (INS-NATL)(a) |
5.00% | 11/01/28 | 1,500 | 1,573,230 | ||||||||||
Allentown (City of) Commercial & Industrial Development Authority (Diocese of Allentown); Series 1999, VRD RB (LOC-Wells Fargo Bank, N.A.) (c)(d) |
0.08% | 12/01/29 | 1,200 | 1,200,000 | ||||||||||
Beaver (County of) Industrial Development Authority (FirstEnergy Generation); Series 2008 A, Ref. RB |
2.15% | 03/01/17 | 700 | 696,738 | ||||||||||
Beaver (County of) Industrial Development Authority; Series 2008 A, Ref. PCR (e) |
2.70% | 04/02/18 | 230 | 233,445 | ||||||||||
Beaver (County of); Series 2009, Unlimited Tax GO Notes (INS-AGM) (a) |
5.55% | 11/15/31 | 1,390 | 1,580,430 | ||||||||||
Berks (County of) Industrial Development Authority (One Douglassville); Series 2007 A, Ref. RB (b) |
6.13% | 11/01/34 | 460 | 465,134 | ||||||||||
Berks (County of) Municipal Authority (Albright College); Series 2004, RB |
5.50% | 10/01/18 | 1,895 | 1,913,988 | ||||||||||
Berks (County of) Municipal Authority (Reading Hospital Medical Center); Series 2012 A, RB |
5.00% | 11/01/40 | 1,000 | 1,088,820 | ||||||||||
Bethlehem Area School District; Series 2010, Unlimited Tax GO Bonds (INS-AGM) (a) |
5.25% | 01/15/26 | 1,000 | 1,120,430 | ||||||||||
Bucks (County of) Industrial Development Authority (Ann’s Choice, Inc. Facility); |
||||||||||||||
Series 2005 A, Retirement Community RB |
5.90% | 01/01/27 | 1,000 | 1,004,250 | ||||||||||
Series 2005 A, Retirement Community RB |
6.13% | 01/01/25 | 1,500 | 1,521,765 | ||||||||||
Bucks (County of) Industrial Development Authority (Lutheran Community Telford Center); Series 2007, RB |
5.75% | 01/01/37 | 2,000 | 2,028,920 | ||||||||||
Central Bradford Progress Authority (Guthrie Healthcare System); Series 2011, RB |
5.38% | 12/01/41 | 1,100 | 1,222,738 | ||||||||||
Centre (County of) Hospital Authority (Mt. Nittany Medical Center); |
||||||||||||||
Series 2009, RB (e)(f) |
6.13% | 11/15/14 | 1,000 | 1,084,150 | ||||||||||
Series 2011, RB |
6.25% | 11/15/41 | 500 | 597,655 | ||||||||||
Series 2012 B, RB |
5.00% | 11/15/44 | 750 | 797,918 | ||||||||||
Chartiers Valley Industrial & Commercial Development Authority (Asbury Health Center); |
||||||||||||||
Series 2006, Ref. First Mortgage RB |
5.25% | 12/01/15 | 500 | 525,115 | ||||||||||
Series 2006, Ref. First Mortgage RB |
5.75% | 12/01/22 | 900 | 944,226 | ||||||||||
Chester (County of) Industrial Development Authority (University Student Housing, LLC at West Chester University of Pennsylvania); Series 2013, Student Housing RB |
5.00% | 08/01/45 | 250 | 261,735 | ||||||||||
Clairton (City of) Municipal Authority; Series 2012 B, RB |
5.00% | 12/01/42 | 1,000 | 1,038,700 | ||||||||||
Cumberland (County of) Municipal Authority (Asbury Pennsylvania Obligated Group); Series 2010, RB |
6.00% | 01/01/40 | 870 | 944,637 | ||||||||||
Cumberland (County of) Municipal Authority (Association of Independent Colleges & Universities of Pennsylvania Financing Program-Dickinson College); Series 2009, RB |
5.00% | 11/01/39 | 750 | 821,580 | ||||||||||
Cumberland (County of) Municipal Authority (Diakon Lutheran Ministries); Series 2007, RB |
5.00% | 01/01/36 | 1,000 | 1,028,670 | ||||||||||
Cumberland (County of) Municipal Authority (Messiah Village); Series 2008 A, RB |
5.63% | 07/01/28 | 1,000 | 1,088,910 | ||||||||||
Dauphin (County of) General Authority (Pinnacle Health System); Series 2009 A, Health System RB |
6.00% | 06/01/36 | 2,215 | 2,474,886 | ||||||||||
Dauphin (County of) General Authority (Riverfront Office); Series 1998, Office & Parking RB |
6.00% | 01/01/25 | 1,055 | 1,056,466 | ||||||||||
Delaware (County of) Authority (Cabrini College); Series 1999, College RB (INS-Radian) (a) |
5.75% | 07/01/23 | 220 | 220,330 | ||||||||||
Delaware (County of) Authority (Neumann College); Series 2008, College RB |
6.25% | 10/01/38 | 175 | 177,034 |
See accompanying notes which are an integral part of this schedule.
Invesco Pennsylvania Tax Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||
Pennsylvania–(continued) |
||||||||||||||
Delaware (County of) Industrial Development Authority (Aqua Pennsylvania, Inc.); Series 2005 A, Water Facilities RB (INS-NATL) (a)(b) |
5.00% | 11/01/38 | $ | 1,500 | $ | 1,564,905 | ||||||||
Delaware River Port Authority (Port District); |
||||||||||||||
Series 2012, Ref. RB |
5.00% | 01/01/25 | 540 | 606,620 | ||||||||||
Series 2012, Ref. RB |
5.00% | 01/01/27 | 535 | 593,176 | ||||||||||
Delaware River Port Authority; Series 2010 D, RB |
5.00% | 01/01/40 | 1,000 | 1,090,870 | ||||||||||
Delaware Valley Regional Financial Authority; |
||||||||||||||
Series 2002, RB |
5.75% | 07/01/17 | 3,535 | 4,055,281 | ||||||||||
Series 2002, RB |
5.75% | 07/01/32 | 1,000 | 1,165,250 | ||||||||||
Doylestown (City of) Hospital Authority; Series 2013 A, RB (INS-AGM)(a) |
5.00% | 07/01/24 | 1,000 | 1,121,530 | ||||||||||
East Hempfield (Township of) Industrial Development Authority (Student Services Inc. Student Housing); |
||||||||||||||
Series 2013, RB |
5.00% | 07/01/35 | 500 | 531,320 | ||||||||||
Series 2013, RB |
5.00% | 07/01/45 | 750 | 787,553 | ||||||||||
Erie (City of) Higher Education Building Authority (Mercyhurst College); |
||||||||||||||
Series 2004 B, Ref. College RB |
5.00% | 03/15/23 | 1,000 | 1,015,220 | ||||||||||
Series 2008, College RB |
5.50% | 03/15/38 | 500 | 529,655 | ||||||||||
Franklin (County of) Industrial Development Authority (Chambersburg Hospital); Series 2010, RB |
5.38% | 07/01/42 | 1,000 | 1,083,730 | ||||||||||
Geisinger Authority (Geisinger Health System Foundation); Series 2011 A1, Health System RB |
5.13% | 06/01/41 | 500 | 552,045 | ||||||||||
Lancaster (County of) Hospital Authority (Brethren Village); Series 2008 A, RB |
6.50% | 07/01/40 | 350 | 370,878 | ||||||||||
Lancaster (County of) Hospital Authority (Lancaster General Hospital); Series 2012, Health System RB |
5.00% | 07/01/42 | 1,000 | 1,094,440 | ||||||||||
Lancaster (County of) Hospital Authority (Masonic Homes); Series 2008 D, VRD RB (LOC-JPMorgan Chase Bank, N.A.) (c)(d) |
0.08% | 07/01/34 | 1,275 | 1,275,000 | ||||||||||
Lehigh (County of) (Lehigh Valley Health Network); Series 2012, General Purpose Hospital RB |
4.00% | 07/01/43 | 1,000 | 973,490 | ||||||||||
Lehigh (County of) General Purpose Authority (Bible Fellowship Church Homes, Inc.); Series 2013, RB |
5.25% | 07/01/42 | 825 | 811,066 | ||||||||||
Lehigh (County of) General Purpose Authority (KidsPeace Obligated Group); Series 1998, RB (g) |
6.00% | 11/01/23 | 1,760 | 704,070 | ||||||||||
Lehigh (County of) Industrial Development Authority (Lifepath, Inc.); Series 1998, Health Facility RB |
6.30% | 06/01/28 | 1,085 | 1,065,427 | ||||||||||
Lycoming (County of) Authority (Pennsylvania College of Technology); Series 2011, RB |
5.00% | 07/01/30 | 750 | 819,480 | ||||||||||
Lycoming (County of) Authority (Susquehanna Health System); Series 2009 A, Heath System RB |
5.75% | 07/01/39 | 1,250 | 1,359,650 | ||||||||||
Monroe (County of) Hospital Authority (Pocono Medical Center); |
||||||||||||||
Series 2003, RB (e)(f) |
6.00% | 01/01/14 | 1,000 | 1,033,520 | ||||||||||
Series 2007, RB |
5.13% | 01/01/37 | 1,500 | 1,553,490 | ||||||||||
Montgomery (County of) Higher Education & Health Authority (Abington Memorial Hospital Obligated Group); Series 2012, RB |
5.00% | 06/01/31 | 1,400 | 1,542,184 | ||||||||||
Montgomery (County of) Industrial Development Authority (ACTS Retirement-Life Communities, Inc.); |
||||||||||||||
Series 2009 A-1, RB |
6.25% | 11/15/29 | 1,000 | 1,144,920 | ||||||||||
Series 2012, Ref. RB |
5.00% | 11/15/28 | 900 | 978,822 | ||||||||||
Montgomery (County of) Industrial Development Authority (Philadelphia Presbytery Homes, Inc.); Series 2010, RB |
6.63% | 12/01/30 | 1,500 | 1,746,120 | ||||||||||
Montgomery (County of) Industrial Development Authority (Whitemarsh Community); Series 2008, Mortgage RB |
7.00% | 02/01/36 | 500 | 530,870 | ||||||||||
Montgomery (County of) Industrial Development Authority (Whitemarsh Continuing Care); Series 2005, Mortgage RB |
6.13% | 02/01/28 | 1,100 | 1,117,446 | ||||||||||
Northampton (County of) General Purpose Authority (Lehigh University); Series 2009, Higher Education RB |
5.50% | 11/15/33 | 1,000 | 1,125,240 | ||||||||||
Northampton (County of) General Purpose Authority (St. Luke’s Hospital); |
||||||||||||||
Series 2008 A, Hospital RB |
5.50% | 08/15/35 | 1,000 | 1,080,770 | ||||||||||
Series 2010 C, Hospital RB (e) |
4.50% | 08/15/16 | 1,000 | 1,085,030 | ||||||||||
Northampton (County of) Industrial Development Authority (Morningstar Senior Living, Inc.); Series 2012, RB |
5.00% | 07/01/32 | 535 | 557,582 | ||||||||||
Pennsylvania (State of) Commonwealth Financing Authority; Series 2013 B, RB |
5.00% | 06/01/42 | 1,200 | 1,305,564 | ||||||||||
Pennsylvania (State of) Economic Development Financing Agency (Forum Place); Series 2012, Governmental Lease RB |
5.00% | 03/01/34 | 500 | 547,595 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Allegheny Energy Supply Co.); Series 2009, RB |
7.00% | 07/15/39 | 1,830 | 2,171,807 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Amtrak); Series 2012 A, Ref. Exempt Facilities RB (b) |
5.00% | 11/01/41 | 1,200 | 1,268,724 |
See accompanying notes which are an integral part of this schedule.
Invesco Pennsylvania Tax Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||||
Pennsylvania–(continued) |
||||||||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Philadelphia Biosolids Facility); Series 2009, Sewage Sludge Disposal RB |
6.25% | 01/01/32 | $ | 1,000 | $ | 1,129,980 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Shippingport); Series 2006 A, Exempt Facilities RB (e) |
2.55% | 12/03/18 | 1,500 | 1,513,860 | ||||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Waste Management, Inc.); Series 2005 A, Solid Waste Disposal RB (b) |
5.10% | 10/01/27 | 1,300 | 1,388,062 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (AICUP Financing Program-Del Valley College); Series 2012, RB |
5.00% | 11/01/42 | 535 | 562,462 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Edinboro University Foundation); |
||||||||||||||||
Series 2008, RB |
5.88% | 07/01/38 | 750 | 813,720 | ||||||||||||
Series 2010, RB |
6.00% | 07/01/43 | 500 | 559,175 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (La Salle University); Series 2012, RB |
5.00% | 05/01/42 | 700 | 748,496 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Shippensburg University Student Services); Series 2012, RB |
5.00% | 10/01/35 | 1,000 | 1,085,310 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (St. Joseph’s University); |
||||||||||||||||
Series 2010 A, RB |
5.00% | 11/01/34 | 500 | 542,650 | ||||||||||||
Series 2010 A, RB |
5.00% | 11/01/40 | 500 | 539,955 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Temple University); First Series 2012, RB |
5.00% | 04/01/42 | 1,170 | 1,286,906 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Thomas Jefferson University); Series 2012, RB |
5.00% | 03/01/42 | 480 | 525,917 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Trustees of the University of Pennsylvania); Series 2005 C, RB (h) |
5.00% | 07/15/38 | 4,700 | 5,019,600 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (University of Pennsylvania Health System); Series 2012 A, RB |
5.00% | 08/15/42 | 555 | 606,071 | ||||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (University Properties, Inc.); Series 2010, Student Housing RB |
5.00% | 07/01/42 | 1,000 | 1,047,290 | ||||||||||||
Pennsylvania (State of) Turnpike Commission; |
||||||||||||||||
Series 2008 B-1, Sub. RB |
5.50% | 06/01/33 | 1,000 | 1,133,860 | ||||||||||||
Series 2009 C, Sub. Conv. CAB RB (INS-AGM) (a)(i) |
6.25% | 06/01/33 | 2,000 | 2,080,280 | ||||||||||||
Series 2009 E, Sub. Conv. CAB RB (i) |
6.38% | 12/01/38 | 1,435 | 1,413,073 | ||||||||||||
Series 2010 A 1, Motor License Fund Special RB |
5.00% | 12/01/38 | 500 | 542,810 | ||||||||||||
Series 2010 A-2, Motor License Fund Special Conv. CAB RB (i) |
5.50% | 12/01/34 | 1,000 | 971,720 | ||||||||||||
Series 2010 B 2, Conv. CAB RB (i) |
5.00% | 12/01/30 | 625 | 592,538 | ||||||||||||
Series 2010 B 2, Conv. CAB RB (i) |
5.13% | 12/01/35 | 500 | 468,175 | ||||||||||||
Philadelphia (City of) Hospitals & Higher Education Facilities Authority (Children’s Hospital of Philadelphia); Series 2011, RB |
5.00% | 07/01/41 | 570 | 624,891 | ||||||||||||
Philadelphia (City of) Hospitals & Higher Education Facilities Authority (Jefferson Health System); Series 2010 B, RB |
5.00% | 05/15/40 | 1,500 | 1,611,465 | ||||||||||||
Philadelphia (City of) Industrial Development Authority (Architecture & Design Charter High School); Series 2013, RB |
6.13% | 03/15/43 | 585 | 585,146 | ||||||||||||
Philadelphia (City of) Industrial Development Authority (Discovery Charter School); Series 2012, RB |
6.25% | 04/01/42 | 1,000 | 1,099,540 | ||||||||||||
Philadelphia (City of) Industrial Development Authority (Independence Charter School); Series 2007 A, RB |
5.50% | 09/15/37 | 1,235 | 1,253,241 | ||||||||||||
Philadelphia (City of) Industrial Development Authority (MaST Charter School); Series 2010, RB |
6.00% | 08/01/35 | 700 | 777,462 | ||||||||||||
Philadelphia (City of) Industrial Development Authority (New Foundations Charter School); Series 2012, RB |
6.63% | 12/15/41 | 750 | 822,608 | ||||||||||||
Philadelphia (City of) Industrial Development Authority (Please Touch Museum); Series 2006, RB |
5.25% | 09/01/31 | 1,250 | 1,226,162 | ||||||||||||
Philadelphia (City of) Industrial Development Authority; Series 1990, Commercial Development RB (b) |
7.75% | 12/01/17 | 2,505 | 2,508,657 | ||||||||||||
Philadelphia (City of); |
||||||||||||||||
Ninth Series 2010, Gas Works RB |
5.25 | % | 08/01/40 | 1,500 | 1,582,740 | |||||||||||
Series 2005 A, Airport RB (INS-NATL) (a)(b) |
5.00% | 06/15/25 | 1,000 | 1,071,340 | ||||||||||||
Series 2009 A, Ref. Unlimited Tax GO Bonds (INS-AGC) (a) |
5.50% | 08/01/24 | 1,000 | 1,131,080 | ||||||||||||
Series 2010 C, Water & Wastewater RB (INS-AGM) (a) |
5.00% | 08/01/35 | 1,250 | 1,376,625 | ||||||||||||
Series 2011, Unlimited Tax GO Bonds |
6.00% | 08/01/36 | 500 | 575,690 | ||||||||||||
Philadelphia School District; Series 2008 E, Limited Tax GO Bonds (INS-BHAC) (a) |
5.13% | 09/01/23 | 1,500 | 1,745,505 |
See accompanying notes which are an integral part of this schedule.
Invesco Pennsylvania Tax Free Income Fund
Interest Rate |
Maturity Date |
Principal Amount (000) |
Value |
|||||||||||||
Pennsylvania–(continued) |
||||||||||||||||
Pittsburgh (City of) & Allegheny (County of) Sports & Exhibition Authority (Regional Asset District); Series 2010, Ref. Sales Tax RB (INS-AGM) (a) |
5.00 | % | 02/01/31 | $ | 1,000 | $ | 1,101,300 | |||||||||
Radnor Township School District; |
||||||||||||||||
Series 2005 B, Unlimited Tax GO Bonds (e)(f) |
5.00 | % | 08/15/15 | 130 | 143,081 | |||||||||||
Series 2005 B, Unlimited Tax GO Bonds (INS-AGM) (a) |
5.00 | % | 02/15/35 | 870 | 930,909 | |||||||||||
State Public School Building Authority (Harrisburg School District); Series 2009 A, RB (INS-AGC) (a) |
5.00 | % | 11/15/33 | 1,000 | 1,074,710 | |||||||||||
Susquehanna Area Regional Airport Authority; Series 2012 A, Airport System RB (b) |
5.00 | % | 01/01/27 | 750 | 807,953 | |||||||||||
Union (County of) Hospital Authority (Evangelical Community Hospital); Series 2011, Ref. & Improvement RB |
7.00 | % | 08/01/41 | 1,000 | 1,212,230 | |||||||||||
Washington (County of) Industrial Development Authority (Washington Jefferson College); Series 2010, College RB |
5.25 | % | 11/01/30 | 500 | 553,165 | |||||||||||
Washington (County of) Redevelopment Authority (Victory Centre Tanger Outlet Development); Series 2006 A, Tax Allocation RB (e) |
5.45 | % | 07/01/17 | 1,430 | 1,462,432 | |||||||||||
Westmoreland (County of) Industrial Development Authority (Redstone Presbyterian Senior Care Obligated Group); |
||||||||||||||||
Series 2005 A, Retirement Community RB |
5.75 | % | 01/01/26 | 2,500 | 2,570,075 | |||||||||||
Series 2005 A, Retirement Community RB |
5.88 | % | 01/01/32 | 900 | 920,682 | |||||||||||
Westmoreland (County of) Municipal Authority; Series 2013, RB |
5.00 | % | 08/15/37 | 1,000 | 1,105,580 | |||||||||||
Wilkes-Barre (City of) Finance Authority (University of Scranton); Series 2010, RB |
5.00 | % | 11/01/40 | 850 | 920,788 | |||||||||||
137,588,730 | ||||||||||||||||
Puerto Rico–6.61% |
||||||||||||||||
Puerto Rico (Commonwealth of) Electric Power Authority; |
||||||||||||||||
Series 2008 WW, RB |
5.25 | % | 07/01/33 | 1,500 | 1,503,570 | |||||||||||
Series 2008 WW, RB |
5.50 | % | 07/01/21 | 1,000 | 1,051,220 | |||||||||||
Series 2010 XX, RB |
5.75 | % | 07/01/36 | 1,000 | 1,031,890 | |||||||||||
Puerto Rico (Commonwealth of) Industrial Tourist Educational, Medical & Environmental Control Facilities Financing Authority (Ana G. Mendez University System); Series 2012, Ref. RB |
5.13 | % | 04/01/32 | 500 | 500,140 | |||||||||||
Puerto Rico (Commonwealth of) Infrastructure Financing Authority; Series 2005 C, Ref. Special Tax RB (INS-AMBAC) (a) |
5.50 | % | 07/01/27 | 600 | 614,472 | |||||||||||
Puerto Rico Sales Tax Financing Corp.; |
||||||||||||||||
First Subseries 2010, Conv. CAB RB (i) |
6.25 | % | 08/01/33 | 1,065 | 850,253 | |||||||||||
First Subseries 2010 A, CAB RB (j) |
0.00 | % | 08/01/34 | 3,500 | 1,046,710 | |||||||||||
First Subseries 2010 A, CAB RB (j) |
0.00 | % | 08/01/35 | 5,000 | 1,400,300 | |||||||||||
First Subseries 2010 A, RB |
5.38 | % | 08/01/39 | 470 | 493,843 | |||||||||||
Series 2011 C, RB |
5.00 | % | 08/01/40 | 1,500 | 1,583,745 | |||||||||||
10,076,143 | ||||||||||||||||
Guam–2.82% |
||||||||||||||||
Guam (Territory of) (Section 30); Series 2009 A, Limited Obligation RB |
5.75 | % | 12/01/34 | 1,250 | 1,369,262 | |||||||||||
Guam (Territory of) Power Authority; |
||||||||||||||||
Series 2010 A, RB |
5.50 | % | 10/01/40 | 410 | 450,643 | |||||||||||
Series 2012 A, Ref. RB |
5.00 | % | 10/01/34 | 520 | 566,062 | |||||||||||
Guam (Territory of) Waterworks Authority; Series 2010, Water & Wastewater System RB |
5.63 | % | 07/01/40 | 1,000 | 1,061,320 | |||||||||||
Guam (Territory of); Series 2011 A, Business Privilege Tax RB |
5.13 | % | 01/01/42 | 785 | 853,060 | |||||||||||
4,300,347 | ||||||||||||||||
Virgin Islands–0.93% |
||||||||||||||||
Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note - Diageo); Series 2009 A, Sub. RB |
6.63 | % | 10/01/29 | 750 | 871,193 | |||||||||||
Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note); Series 2010 A, Sr. Lien RB |
5.00 | % | 10/01/29 | 500 | 545,920 | |||||||||||
1,417,113 |
See accompanying notes which are an integral part of this schedule.
Invesco Pennsylvania Tax Free Income Fund
Value | ||
TOTAL INVESTMENTS(k)–100.68% (Cost $144,046,692) |
$ 153,382,333 | |
FLOATING RATE NOTE OBLIGATIONS–(2.06)% |
||
Note with an interest rate of 0.14% at 05/31/13 and contractual maturity of collateral of
07/15/38 |
(3,135,000) | |
OTHER ASSETS AND OTHER LIABILITIES–1.38% |
2,093,443 | |
NET ASSETS–100.00% |
$ 152,340,776 |
Investment Abbreviations:
Notes to Schedule of Investments:
(a) | Principal and/or interest payments are secured by the bond insurance company listed. |
(b) | Security subject to the alternative minimum tax. |
(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 May 31, 2013. |
(d) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. |
(e) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(f) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. |
(g) | Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at May 31, 2013 represented less than 1% of the Fund’s Net Assets. |
(h) | Underlying security related to Dealer Trusts entered into by the Fund. See Note 1D. |
(i) | Convertible CAB. The interest rate shown represents the coupon rate at which the bond will accrue at a specified future date. |
(j) | Zero coupon bond issued at a discount. |
(k) | This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations. |
Entity | Percentage | |||
Assured Guaranty Municipal Corp. |
6.1 % |
(l) | Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at May 31, 2013. At May 31, 2013, the Fund’s investments with a value of $5,019,600 are held by Dealer Trusts and serve as collateral for the $3,135,000 in the floating rate note obligations outstanding at that date. |
See accompanying notes which are an integral part of this schedule.
Invesco Pennsylvania Tax Free Income Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
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, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Securities for which market quotations either are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Floating Rate Note Obligations – The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but |
Invesco Pennsylvania Tax Free Income Fund
D. | Floating Rate Note Obligations – (continued) |
end to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interests in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts.
TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended, or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities.
The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
E. | 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.
Invesco Pennsylvania Tax Free Income Fund
NOTE 2 -- Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
As of May 31, 2013, all of the securities in this Fund were valued based on Level 2 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
NOTE 3 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $21,244,958 and $20,758,339, 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 |
$ | 10,773,689 | ||
Aggregate unrealized (depreciation) of investment securities |
(1,297,790) | |||
Net unrealized appreciation of investment securities |
$ | 9,475,899 | ||
Cost of investments for tax purposes is $143,906,434. |
Invesco Pennsylvania Tax Free Income Fund
Invesco S&P 500 Index Fund Quarterly Schedule of Portfolio Holdings May 31, 2013
| ||||||
invesco.com/us | MS-SPI-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
See accompanying notes which are an integral part of this schedule.
Invesco S&P 500 Index Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 — Significant Accounting Policies
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco S&P 500 Index Fund
A. | Security Valuations-(continued) |
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 net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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. | 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. |
E. | Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
Invesco S&P 500 Index Fund
NOTE 2 — Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1– | Prices are determined using quoted prices in an active market for identical assets. | |||
Level 2– | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |||
Level 3– | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of May 31, 2013. 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 |
$ | 597,096,001 | $— | $— | $ | 597,096,001 | ||||||
Futures* |
2,650 | — | — | 2,650 | ||||||||
Total Investments |
$ | 597,098,651 | $— | $— | $ | 597,098,651 |
* Unrealized appreciation.
NOTE 3 — Investments in Affiliates
The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The following is a summary of the transactions in and earnings from investments in Invesco Ltd. for the nine months ended May 31, 2013.
Value 08/31/12 |
Purchases at Cost |
Proceeds from Sales |
Change in Unrealized Appreciation |
Realized Gain |
Value 05/31/13 |
Dividend Income |
||||||||||||||||||||||
Invesco Ltd. |
$ | 432,184 | $ | 12,312 | $ | (19,729 | ) | $ | 180,076 | $ | 216 | $ | 605,059 | $ | 10,241 |
NOTE 4 — Derivative Investments
Open Futures Contracts | ||||||||
Long Contracts |
Number of Contracts |
Expiration Month |
Notional Value |
Unrealized Appreciation | ||||
E-Mini S&P 500 Index |
72 | June-2013 | $5,864,400 | $2,650 |
Invesco S&P 500 Index Fund
NOTE 5 — Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $26,560,808 and $32,490,292, 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 |
$ | 241,198,957 | ||
Aggregate unrealized (depreciation) of investment securities |
(14,339,410) | |||
Net unrealized appreciation of investment securities |
$ | 226,859,547 | ||
Cost of investments for tax purposes is $370,236,454. |
Invesco S&P 500 Index Fund
Invesco Small Cap Discovery Fund Quarterly Schedule of Portfolio Holdings May 31, 2013 |
invesco.com/us | VK-SCD-QTR-1 05/13 | Invesco Advisers, Inc. |
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco Small Cap Discovery Fund
See accompanying notes which are an integral part of this schedule.
Invesco Small Cap Discovery Fund
See accompanying notes which are an integral part of this schedule.
Invesco Small Cap Discovery Fund
Investment Abbreviations:
ADR |
—American Depositary Receipt | |
Notes to Schedule of Investments: |
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at May 31, 2013. |
(d) | The money market fund and the Fund are affiliated by having the same investment adviser. |
(e) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1D. |
See accompanying notes which are an integral part of this schedule.
Invesco Small Cap Discovery Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco Small Cap Discovery 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 (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and 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. | 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 affiliated money market funds 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. |
Invesco Small Cap Discovery Fund
NOTE 2 -- Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
As of May 31, 2013, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
NOTE 3 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $380,412,591 and $548,114,274, 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 |
$ | 213,830,735 | ||
Aggregate unrealized (depreciation) of investment securities |
(10,644,196) | |||
Net unrealized appreciation of investment securities |
$ | 203,186,539 | ||
Cost of investments for tax purposes is $663,475,875. |
Invesco Small Cap Discovery Fund
Invesco U.S. Quantitative Core Fund | ||
Quarterly Schedule of Portfolio Holdings May 31, 2013 |
invesco.com/us |
USQC-QTR-1 05/13 |
Invesco Advisers, Inc. |
Schedule of Investments(a)
May 31, 2013
(Unaudited)
See accompanying notes which are an integral part of this schedule.
Invesco U.S. Quantitative Core Fund
See accompanying notes which are an integral part of this schedule.
Invesco U.S. Quantitative Core Fund
See accompanying notes which are an integral part of this schedule.
Invesco U.S. Quantitative Core Fund
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2013
(Unaudited)
NOTE 1 -- Significant Accounting Policies
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trade is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.
Invesco U.S. Quantitative Core Fund
A. | Security Valuations – (continued) |
Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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. | 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. |
E. | Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
Invesco U.S. Quantitative Core Fund
NOTE 2 -- Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | – Prices are determined using quoted prices in an active market for identical assets. | |||
Level 2 | – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |||
Level 3 | – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of May 31, 2013. 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 |
$ | 343,584,609 | $ | -- | $ | -- | $ | 343,584,609 | ||||||||
U.S. Treasury Securities |
-- | 749,916 | -- | 749,916 | ||||||||||||
$ | 343,584,609 | $ | 749,916 | $ | -- | $ | 344,334,525 | |||||||||
Futures* |
302,051 | -- | -- | 302,051 | ||||||||||||
Total Investments |
$ | 343,886,660 | $ | 749,916 | $ | -- | $ | 344,636,576 |
* Unrealized appreciation.
NOTE 3 -- Derivative Investments
Open Futures Contracts | ||||||||||
Long Contracts | Number of Contracts |
Expiration Month |
Notional Value |
Unrealized Appreciation | ||||||
E-Mini S&P 500 Index |
106 | June-2013 | $8,633,700 | $302,051 |
NOTE 4 -- Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended May 31, 2013 was $175,788,678 and $217,883,861, 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 |
$ | 71,601,603 | ||
Aggregate unrealized (depreciation) of investment securities |
(1,042,290 | ) | ||
Net unrealized appreciation of investment securities |
$ | 70,559,313 | ||
Cost of investments for tax purposes is $273,775,212. |
Invesco U.S. Quantitative Core Fund
Item 2. Controls and Procedures.
(a) | As of May 23, 2013, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of May 23, 2013, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. |
(b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 3. Exhibits.
Certifications of PEO and PFO as required by Rule 30a-2(a) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: AIM Counselor Series Trust (Invesco Counselor Series Trust)
By: | /s/ Philip A. Taylor | |
Philip A. Taylor | ||
Principal Executive Officer | ||
Date: | July 30, 2013 |
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Philip A. Taylor | |
Philip A. Taylor | ||
Principal Executive Officer | ||
Date: | July 30, 2013 |
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Financial Officer | ||
Date: | July 30, 2013 |
EXHIBIT INDEX
Certifications of Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended.