N-CSRS 1 d441235dncsrs.htm N-CSRS N-CSRS

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09913

 

 

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)

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

(Name and address of agent for service)

 

 

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

Date of fiscal year end: 8/31

Date of reporting period: 2/28/23

 

 

 

ITEM 1.

REPORTS TO STOCKHOLDERS.

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

(b) Not applicable.

LOGO

 

Semiannual Report to Shareholders

   

February 28, 2023

Invesco American Franchise Fund

Nasdaq:

A: VAFAX ∎ C: VAFCX ∎ R: VAFRX ∎ Y: VAFIX ∎ R5: VAFNX ∎ R6: VAFFX

 

    

2    Fund Performance
4    Schedule of Investments
7                Financial Statements
10    Financial Highlights
11    Notes to Financial Statements
17    Fund Expenses

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     -2.30 % 

Class C Shares

     -2.65  

Class R Shares

     -2.41  

Class Y Shares

     -2.24  

Class R5 Shares

     -2.17  

Class R6 Shares

     -2.15  

S&P 500 Index▼ (Broad Market Index)

     1.26  

Russell 1000 Growth Index▼ (Style-Specific Index)

     -1.24  

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

     -0.72  

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

 

For more information about your Fund

 

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

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

 

 

2   Invesco American Franchise Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (6/23/05)

     8.61 % 

10 Years

     11.10  

  5 Years

     6.14  

  1 Year

     -21.91  

Class C Shares

        

Inception (6/23/05)

     8.60 % 

10 Years

     11.06  

  5 Years

     6.54  

  1 Year

     -18.71  

Class R Shares

        

Inception (5/23/11)

     9.91 % 

10 Years

     11.45  

  5 Years

     7.08  

  1 Year

     -17.55  

Class Y Shares

        

Inception (6/23/05)

     9.21 % 

10 Years

     12.01  

  5 Years

     7.61  

  1 Year

     -17.18  

Class R5 Shares

        

Inception (12/22/10)

     10.73 % 

10 Years

     12.08  

  5 Years

     7.64  

  1 Year

     -17.13  

Class R6 Shares

        

Inception (9/24/12)

     11.80 % 

10 Years

     12.18  

  5 Years

     7.74  

  1 Year

     -17.12  

Effective June 1, 2010, Class A, Class C and Class I shares of the predecessor fund, Van Kampen American Franchise Fund, advised by Van Kampen Asset Management were reorganized into Class A, Class C and Class Y shares, respectively, of Invesco Van Kampen American Franchise Fund (renamed Invesco American Franchise Fund). Returns shown above, prior to June 1, 2010, for Class A, Class C and Class Y shares are those for Class A, Class C and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

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

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

 

 

3   Invesco American Franchise Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–99.76%

 

Advertising–0.54%

      

Trade Desk, Inc. (The), Class A(b)(c)

     1,031,774      $     57,738,073  

 

  

Aerospace & Defense–1.74%

 

Airbus SE (France)

      559,368        73,309,567  

 

  

Lockheed Martin Corp.

      235,836        111,847,582  

 

  
        185,157,149  

 

  

Agricultural & Farm Machinery–1.30%

 

Deere & Co.

      330,681        138,634,702  

 

  

Aluminum–0.52%

 

Alcoa Corp.

      1,124,818        55,048,593  

 

  

Application Software–5.45%

 

HubSpot, Inc.(b)(c)

     313,628        121,330,128  

 

  

Intuit, Inc.

      392,065        159,641,027  

 

  

Paycom Software, Inc.(b)

     137,726        39,811,077  

 

  

Synopsys, Inc.(b)

     367,294        133,606,865  

 

  

Workday, Inc., Class A(b)(c)

     675,729        125,327,458  

 

  
        579,716,555  

 

  

Asset Management & Custody Banks–1.69%

 

KKR & Co., Inc., Class A(c)

     3,197,750        180,193,213  

 

  

Automobile Manufacturers–1.66%

 

General Motors Co.

      1,978,353        76,641,395  

 

  

Tesla, Inc.(b)(c)

     483,329        99,425,609  

 

  
        176,067,004  

 

  

Automotive Retail–0.95%

 

O’Reilly Automotive, Inc.(b)

     121,703        101,025,660  

 

  

Biotechnology–1.84%

 

BioMarin Pharmaceutical, Inc.(b)

     1,347,471        134,194,637  

 

  

Regeneron Pharmaceuticals, Inc.(b)

     80,388        61,128,643  

 

  
        195,323,280  

 

  

Casinos & Gaming–1.58%

 

Las Vegas Sands Corp.(b)

     2,434,826        139,929,450  

 

  

Penn Entertainment, Inc.(b)(c)

     938,306        28,646,482  

 

  
        168,575,932  

 

  

Construction Machinery & Heavy Trucks–0.46%

 

Caterpillar, Inc.

      203,366        48,716,325  

 

  

Consumer Electronics–0.79%

 

Sony Group Corp. (Japan)

      1,002,500        83,606,318  

 

  

Copper–0.40%

 

Freeport-McMoRan, Inc.(c)

     1,026,752        42,066,029  

 

  

Data Processing & Outsourced Services–4.51%

 

Visa, Inc., Class A(c)

     2,181,275        479,749,624  

 

  

Diversified Support Services–0.49%

 

Cintas Corp.

      118,727        52,058,228  

 

  

Electrical Components & Equipment–0.50%

 

Rockwell Automation, Inc.

      180,248        53,160,543  

 

  
     Shares      Value  

 

  

Electronic Equipment & Instruments–1.41%

 

Teledyne Technologies, Inc.(b)

     348,135      $     149,722,419  

 

  

Environmental & Facilities Services–0.75%

 

Republic Services, Inc.

      620,945        80,058,439  

 

  

Financial Exchanges & Data–1.41%

 

S&P Global, Inc.

      438,286        149,543,183  

 

  

Food Distributors–1.00%

 

US Foods Holding Corp.(b)

     2,848,065        106,887,879  

 

  

Food Retail–0.38%

 

HelloFresh SE (Germany)(b)

     1,818,458        40,871,273  

 

  

General Merchandise Stores–1.01%

 

Target Corp.

      634,722        106,950,657  

 

  

Health Care Equipment–3.11%

 

DexCom, Inc.(b)

     1,257,144        139,555,556  

 

  

Intuitive Surgical, Inc.(b)

     598,918        137,385,800  

 

  

Stryker Corp.

      206,523        54,290,766  

 

  
        331,232,122  

 

  

Home Improvement Retail–1.06%

 

Lowe’s Cos., Inc.

      548,665        112,887,824  

 

  

Hotels, Resorts & Cruise Lines–1.05%

 

Booking Holdings, Inc.(b)

     44,054        111,192,296  

 

  

Hypermarkets & Super Centers–0.45%

 

Walmart, Inc.

      333,286        47,369,939  

 

  

Industrial Machinery–0.44%

 

Parker-Hannifin Corp.

      133,696        47,040,938  

 

  

Integrated Oil & Gas–0.75%

 

Suncor Energy, Inc. (Canada)

      2,389,640        80,291,904  

 

  

Interactive Home Entertainment–1.97%

 

Nintendo Co. Ltd. (Japan)

      2,885,000        108,043,910  

 

  

Take-Two Interactive Software,
Inc.(b)

      923,579        101,178,079  

 

  
        209,221,989  

 

  

Interactive Media & Services–7.01%

 

Alphabet, Inc., Class A(b)

     5,746,914        517,567,075  

 

  

Kuaishou Technology (China)(b)(d)

     3,819,200        25,545,088  

 

  

Meta Platforms, Inc., Class A(b)

     880,991        154,120,566  

 

  

Pinterest, Inc., Class A(b)

     1,915,457        48,097,125  

 

  
        745,329,854  

 

  

Internet & Direct Marketing Retail–7.01%

 

Amazon.com, Inc.(b)

     6,530,216        615,342,253  

 

  

JD.com, Inc., ADR (China)(c)

     1,221,954        54,303,636  

 

  

MercadoLibre, Inc. (Brazil)(b)

     62,682        76,472,040  

 

  
        746,117,929  

 

  

Internet Services & Infrastructure–1.95%

 

MongoDB, Inc.(b)(c)

     516,663        108,251,232  

 

  

Snowflake, Inc., Class A(b)(c)

     645,999        99,729,325  

 

  
        207,980,557  

 

  
 

 

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

 

4   Invesco American Franchise Fund

     Shares      Value  

 

  

Life Sciences Tools & Services–3.66%

 

   

IQVIA Holdings, Inc.(b)

     476,196      $ 99,272,580  

 

  

Mettler-Toledo International, Inc.(b)

     78,436        112,454,478  

 

  

Thermo Fisher Scientific, Inc.

      207,646        112,494,297  

 

  

West Pharmaceutical Services, Inc.

      204,747        64,910,941  

 

  
        389,132,296  

 

  

Managed Health Care–1.49%

 

UnitedHealth Group, Inc.

      333,036        158,505,154  

 

  

Movies & Entertainment–1.51%

 

Netflix, Inc.(b)

     499,642        160,949,677  

 

  

Oil & Gas Equipment & Services–0.89%

 

Schlumberger Ltd.

      1,781,601        94,798,989  

 

  

Oil & Gas Exploration & Production–0.56%

 

ConocoPhillips

      201,985        20,875,150  

 

  

Diamondback Energy, Inc.

      276,560        38,878,805  

 

  
        59,753,955  

 

  

Pharmaceuticals–3.77%

 

Bayer AG (Germany)

      5,724,888        340,778,341  

 

  

Eli Lilly and Co.

      194,719        60,600,447  

 

  
        401,378,788  

 

  

Property & Casualty Insurance–0.83%

 

Progressive Corp. (The)

      617,501        88,623,744  

 

  

Regional Banks–0.72%

 

SVB Financial Group(b)

     265,685        76,546,505  

 

  

Semiconductor Equipment–0.52%

 

ASML Holding N.V., New York Shares (Netherlands)

      89,847        55,501,187  

 

  

Semiconductors–9.80%

 

Advanced Micro Devices, Inc.(b)

      2,645,312        207,868,617  

 

  

Broadcom, Inc.

      138,507        82,313,325  

 

  

First Solar, Inc.(b)

     178,125        30,128,063  

 

  

Monolithic Power Systems, Inc.(c)

     359,235        173,973,918  

 

  

NVIDIA Corp.

      2,364,346        548,906,567  

 

  
        1,043,190,490  

 

  

Soft Drinks–1.35%

 

Monster Beverage Corp.(b)

     1,407,553        143,232,593  

 

  

Specialized REITs–0.17%

 

Crown Castle, Inc.

      139,656        18,260,022  

 

  

Systems Software–10.63%

 

Microsoft Corp.

      3,679,647        917,777,555  

 

  

ServiceNow, Inc.(b)

     492,889        213,011,839  

 

  
        1,130,789,394  

 

  

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

     Shares      Value  

 

  

Technology Hardware, Storage & Peripherals–5.84%

 

Apple, Inc.

      4,218,367      $ 621,829,479  

 

  

Trading Companies & Distributors–1.24%

 

Fastenal Co.(c)

     1,087,448        56,068,819  

 

  

United Rentals, Inc.

      162,566        76,167,048  

 

  
        132,235,867  

 

  

Trucking–1.38%

 

Knight-Swift Transportation Holdings, Inc.

      1,197,355        68,057,658  

 

  

Uber Technologies, Inc.(b)

     2,369,940        78,824,205  

 

  
        146,881,863  

 

  

Wireless Telecommunication Services–0.22%

 

T-Mobile US, Inc.(b)

     161,925        23,022,497  

 

  

Total Common Stocks & Other Equity Interests
(Cost $7,606,243,635)

 

      10,614,168,930  

 

  

Money Market Funds–0.76%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(e)(f)

     28,303,795        28,303,795  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(e)(f)

     20,211,567        20,215,609  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(e)(f)

     32,347,194        32,347,194  

 

  

Total Money Market Funds
(Cost $80,865,758)

 

      80,866,598  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.52%
(Cost $7,687,109,393)

 

      10,695,035,528  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–5.64%

 

Invesco Private Government Fund, 4.58%(e)(f)(g)

     167,426,114        167,426,114  

 

  

Invesco Private Prime Fund, 4.83%(e)(f)(g)

     432,515,516        432,602,005  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $600,060,786)

 

      600,028,119  

 

  

TOTAL INVESTMENTS IN SECURITIES–106.16%
(Cost $8,287,170,179)

 

      11,295,063,647  

 

  

OTHER ASSETS LESS LIABILITIES–(6.16)%

 

      (655,340,833 ) 

 

  

NET ASSETS–100.00%

       $ 10,639,722,814  

 

  
 

 

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

 

5   Invesco American Franchise Fund

Notes to Schedule of Investments:

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at February 28, 2023.

(d) 

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at February 28, 2023 represented less than 1% of the Fund’s Net Assets.

(e) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

    

Value

August 31, 2022

    

Purchases

at Cost

    

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

(Loss)

     Value
February 28, 2023		     Dividend Income  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     $53,285,703       $   459,434,071       $    (484,415,979)     $            -       $             -       $  28,303,795       $       880,954  

Invesco Liquid Assets Portfolio, Institutional Class

       38,065,065            328,167,193             (346,010,939)         (2,966 )           (2,744)         20,215,609              650,490  

Invesco Treasury Portfolio, Institutional Class

       60,897,946            525,067,510             (553,618,262)       -       -         32,347,194           1,004,643  
Investments Purchased with Cash Collateral from Securities on Loan:                                                        

Invesco Private Government Fund

       178,796,448            564,055,163            (575,425,497)       -       -         167,426,114           2,968,927*  

Invesco Private Prime Fund

       459,762,305         1,206,844,404         (1,234,039,155)         (69,015 )        103,466         432,602,005           8,137,178*  

Total

     $790,807,467       $3,083,568,341       $(3,193,509,832)     $ (71,981 )      $100,722       $680,894,717       $13,642,192  

 

  *

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

 

(f) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(g) 

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

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Information Technology

      40.12 % 

Consumer Discretionary

      15.10  

Health Care

      13.87  

Communication Services

      11.24  

Industrials

      8.31  

Financials

      4.65  

Consumer Staples

      3.18  

Energy

      2.21  

Other Sectors, Each Less than 2% of Net Assets

      1.08  

Money Market Funds Plus Other Assets Less Liabilities

      0.24  

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

 

6   Invesco American Franchise Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

 

Investments in unaffiliated securities, at value
(Cost $7,606,243,635)*

    $ 10,614,168,930  

 

  

Investments in affiliated money market funds, at value (Cost $680,926,544)

      680,894,717  

 

  

Foreign currencies, at value (Cost $9,781)

      9,732  

 

  

Receivable for:

 

Investments sold

      17,950,797  

 

  

Fund shares sold

      1,443,206  

 

  

Dividends

      9,194,463  

 

  

Investment for trustee deferred compensation and retirement plans

      1,625,259  

 

  

Other assets

      207,132  

 

  

Total assets

      11,325,494,236  

 

  

Liabilities:

 

Payable for:

 

Investments purchased

      72,064,954  

 

  

Fund shares reacquired

      6,033,911  

 

  

Collateral upon return of securities loaned

      600,060,786  

 

  

Accrued fees to affiliates

      5,229,248  

 

  

Accrued trustees’ and officers’ fees and benefits

      10,097  

 

  

Accrued other operating expenses

      578,009  

 

  

Trustee deferred compensation and retirement plans

      1,794,417  

 

  

Total liabilities

      685,771,422  

 

  

Net assets applicable to shares outstanding

    $ 10,639,722,814  

 

  

Net assets consist of:

 

Shares of beneficial interest

    $ 8,150,684,192  

 

  

Distributable earnings

      2,489,038,622  

 

  
   $ 10,639,722,814  

 

  

Net Assets:

 

Class A

    $ 10,045,198,494  

 

  

Class C

    $ 86,937,633  

 

  

Class R

    $ 51,811,300  

 

  

Class Y

    $ 358,519,586  

 

  

Class R5

    $ 33,966,216  

 

  

Class R6

    $ 63,289,585  

 

  

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

 

Class A

      590,724,218  

 

  

Class C

      6,283,718  

 

  

Class R

      3,210,670  

 

  

Class Y

      19,972,168  

 

  

Class R5

      1,881,020  

 

  

Class R6

      3,454,409  

 

  

Class A:

 

Net asset value per share

    $ 17.00  

 

  

Maximum offering price per share
(Net asset value of $17.00 ÷ 94.50%)

    $ 17.99  

 

  

Class C:

 

Net asset value and offering price per share

    $ 13.84  

 

  

Class R:

 

Net asset value and offering price per share

    $ 16.14  

 

  

Class Y:

 

Net asset value and offering price per share

    $ 17.95  

 

  

Class R5:

 

Net asset value and offering price per share

    $ 18.06  

 

  

Class R6:

 

Net asset value and offering price per share

    $ 18.32  

 

  

 

*

At February 28, 2023, securities with an aggregate value of $587,311,757 were on loan to brokers.

 

 

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

 

7   Invesco American Franchise Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

 

Dividends (net of foreign withholding taxes of $359,264)

    $ 38,624,838  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $503,566)

      3,039,653  

 

  

Total investment income

      41,664,491  

 

  

Expenses:

 

Advisory fees

      30,874,137  

 

  

Administrative services fees

      748,516  

 

  

Custodian fees

      64,105  

 

  

Distribution fees:

 

Class A

      12,495,187  

 

  

Class C

      448,482  

 

  

Class R

      124,562  

 

  

Transfer agent fees – A, C, R and Y

      7,129,797  

 

  

Transfer agent fees – R5

      16,524  

 

  

Transfer agent fees – R6

      9,355  

 

  

Trustees’ and officers’ fees and benefits

      38,610  

 

  

Registration and filing fees

      361,469  

 

  

Reports to shareholders

      312,605  

 

  

Professional services fees

      63,681  

 

  

Other

      53,314  

 

  

Total expenses

      52,740,344  

 

  

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

      (184,946 ) 

 

  

Net expenses

      52,555,398  

 

  

Net investment income (loss)

      (10,890,907 ) 

 

  

Realized and unrealized gain (loss) from:

 

Net realized gain (loss) from:

 

Unaffiliated investment securities

      (325,893,327 ) 

 

  

Affiliated investment securities

      100,722  

 

  

Foreign currencies

      (332,020 ) 

 

  
     (326,124,625 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

 

Unaffiliated investment securities

      54,803,904  

 

  

Affiliated investment securities

      (71,981 ) 

 

  

Foreign currencies

      61,271  

 

  
     54,793,194  

 

  

Net realized and unrealized gain (loss)

      (271,331,431 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (282,222,338 ) 

 

  

 

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

 

8   Invesco American Franchise Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,
2023		    

August 31,

2022

  

 

  

Operations:

     

Net investment income (loss)

    $ (10,890,907 )    $ (41,472,994 ) 

 

  

Net realized gain (loss)

      (326,124,625 )      1,381,464,564  

 

  

Change in net unrealized appreciation (depreciation)

      54,793,194       (5,733,987,602 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      (282,222,338 )      (4,393,996,032 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (743,113,347 )      (3,197,662,688 ) 

 

  

Class C

      (7,974,418 )      (37,450,406 ) 

 

  

Class R

      (3,890,839 )      (14,396,356 ) 

 

  

Class Y

      (25,919,532 )      (126,355,901 ) 

 

  

Class R5

      (2,323,344 )      (9,536,193 ) 

 

  

Class R6

      (4,321,886 )      (17,938,544 ) 

 

  

Total distributions from distributable earnings

      (787,543,366 )      (3,403,340,088 ) 

 

  

Share transactions–net:

     

Class A

      275,977,359       2,073,894,575  

 

  

Class C

      (1,159,375 )      13,665,928  

 

  

Class R

      5,349,996       18,215,682  

 

  

Class Y

      (15,650,043 )      72,997,685  

 

  

Class R5

      1,669,125       6,488,719  

 

  

Class R6

      3,179,792       11,416,507  

 

  

Net increase in net assets resulting from share transactions

      269,366,854       2,196,679,096  

 

  

Net increase (decrease) in net assets

      (800,398,850 )      (5,600,657,024 ) 

 

  

Net assets:

     

Beginning of period

      11,440,121,664       17,040,778,688  

 

  

End of period

    $ 10,639,722,814     $ 11,440,121,664  

 

  

 

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

 

9   Invesco American Franchise Fund

Financial Highlights

(Unaudited)

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

 

     Net asset
value,
beginning
of period		  

Net

investment

income

(loss)(a)

  Net gains
(losses)
on securities
(both
realized and
unrealized)		  

Total from

investment

operations

   Distributions
from net
realized
gains		   Net asset
value, end
of period		   Total return (b)  

Net assets,
end of period

(000’s omitted)

  

Ratio of
expenses
to average

net assets
with fee waivers
and/or
expenses
absorbed

  

Ratio of
expenses
to average net
assets without

fee waivers

and/or
expenses
absorbed

  

Ratio of net

investment
income
(loss)
to average
net assets

  

Portfolio

turnover (c)

Class A

                        

Six months ended 02/28/23

     $18.84       $(0.02 )      $(0.49 )      $(0.51 )      $(1.33 )      $17.00       (2.36 )%      $10,045,198       1.00 %(d)      1.00 %(d)      (0.21 )%(d)      49 % 

Year ended 08/31/22

     32.86       (0.07 )      (7.28 )      (7.35 )      (6.67 )      18.84       (26.95 )      10,777,375       0.95       0.95       (0.29 )      97  

Year ended 08/31/21

     28.90       (0.14 )      6.62       6.48       (2.52 )      32.86       24.04       16,037,060       0.97       0.97       (0.47 )      57  

Year ended 08/31/20

     21.27       (0.03 )      9.17       9.14       (1.51 )      28.90       45.42       13,733,417       1.00       1.00       (0.15 )      52  

Year ended 08/31/19

     23.12       (0.01 )      (0.04 )      (0.05 )      (1.80 )      21.27       1.21       10,115,813       1.01       1.01       (0.04 )      43  

Year ended 08/31/18

     20.25       (0.04 )      3.97       3.93       (1.06 )      23.12       20.30       10,524,889       1.01       1.01       (0.17 )      44  

Class C

                        

Six months ended 02/28/23

     15.65       (0.07 )      (0.41 )      (0.48 )      (1.33 )      13.84       (2.65 )      86,938       1.75 (d)      1.75 (d)      (0.96 )(d)      49  

Year ended 08/31/22

     28.67       (0.21 )      (6.14 )      (6.35 )      (6.67 )      15.65       (27.50 )      98,920       1.70       1.70       (1.04 )      97  

Year ended 08/31/21

     25.70       (0.32 )      5.81       5.49       (2.52 )      28.67       23.11       164,671       1.72       1.72       (1.22 )      57  

Year ended 08/31/20

     19.21       (0.18 )      8.18       8.00       (1.51 )      25.70       44.30       185,177       1.75       1.75       (0.90 )      52  

Year ended 08/31/19

     21.23       (0.15 )      (0.07 )      (0.22 )      (1.80 )      19.21       0.46       139,839       1.76       1.76       (0.79 )      43  

Year ended 08/31/18

     18.81       (0.18 )      3.66       3.48       (1.06 )      21.23       19.43       401,863       1.76       1.76       (0.92 )      44  

Class R

                        

Six months ended 02/28/23

     17.97       (0.04 )      (0.46 )      (0.50 )      (1.33 )      16.14       (2.41 )      51,811       1.25 (d)      1.25 (d)      (0.46 )(d)      49  

Year ended 08/31/22

     31.73       (0.12 )      (6.97 )      (7.09 )      (6.67 )      17.97       (27.12 )      51,531       1.20       1.20       (0.54 )      97  

Year ended 08/31/21

     28.06       (0.21 )      6.40       6.19       (2.52 )      31.73       23.70       66,494       1.22       1.22       (0.72 )      57  

Year ended 08/31/20

     20.75       (0.09 )      8.91       8.82       (1.51 )      28.06       45.00       50,219       1.25       1.25       (0.40 )      52  

Year ended 08/31/19

     22.65       (0.06 )      (0.04 )      (0.10 )      (1.80 )      20.75       0.99       34,114       1.26       1.26       (0.29 )      43  

Year ended 08/31/18

     19.91       (0.09 )      3.89       3.80       (1.06 )      22.65       19.99       38,537       1.26       1.26       (0.42 )      44  

Class Y

                        

Six months ended 02/28/23

     19.79       0.00       (0.51 )      (0.51 )      (1.33 )      17.95       (2.24 )      358,520       0.75 (d)      0.75 (d)      0.04 (d)      49  

Year ended 08/31/22

     34.08       (0.01 )      (7.61 )      (7.62 )      (6.67 )      19.79       (26.75 )      410,990       0.70       0.70       (0.04 )      97  

Year ended 08/31/21

     29.81       (0.07 )      6.86       6.79       (2.52 )      34.08       24.36       624,045       0.72       0.72       (0.22 )      57  

Year ended 08/31/20

     21.85       0.03       9.44       9.47       (1.51 )      29.81       45.74       496,757       0.75       0.75       0.10       52  

Year ended 08/31/19

     23.63       0.04       (0.02 )      0.02       (1.80 )      21.85       1.50       350,473       0.76       0.76       0.21       43  

Year ended 08/31/18

     20.62       0.02       4.05       4.07       (1.06 )      23.63       20.63       368,991       0.76       0.76       0.08       44  

Class R5

                        

Six months ended 02/28/23

     19.89       0.01       (0.51 )      (0.50 )      (1.33 )      18.06       (2.17 )      33,966       0.71 (d)      0.71 (d)      0.08 (d)      49  

Year ended 08/31/22

     34.22       (0.01 )      (7.65 )      (7.66 )      (6.67 )      19.89       (26.76 )      35,453       0.69       0.69       (0.03 )      97  

Year ended 08/31/21

     29.92       (0.06 )      6.88       6.82       (2.52 )      34.22       24.37       51,787       0.70       0.70       (0.20 )      57  

Year ended 08/31/20

     21.91       0.04       9.48       9.52       (1.51 )      29.92       45.85       43,712       0.70       0.70       0.15       52  

Year ended 08/31/19

     23.68       0.05       (0.02 )      0.03       (1.80 )      21.91       1.54       75,149       0.71       0.71       0.26       43  

Year ended 08/31/18

     20.66       0.03       4.05       4.08       (1.06 )      23.68       20.64       86,177       0.71       0.71       0.13       44  

Class R6

                        

Six months ended 02/28/23

     20.16       0.01       (0.52 )      (0.51 )      (1.33 )      18.32       (2.20 )      63,290       0.64 (d)      0.64 (d)      0.15 (d)      49  

Year ended 08/31/22

     34.55       0.01       (7.73 )      (7.72 )      (6.67 )      20.16       (26.67 )      65,853       0.62       0.62       0.04       97  

Year ended 08/31/21

     30.17       (0.04 )      6.94       6.90       (2.52 )      34.55       24.44       96,722       0.63       0.63       (0.13 )      57  

Year ended 08/31/20

     22.07       0.05       9.56       9.61       (1.51 )      30.17       45.93       69,977       0.62       0.62       0.23       52  

Year ended 08/31/19

     23.81       0.07       (0.01 )      0.06       (1.80 )      22.07       1.66       129,831       0.62       0.62       0.35       43  

Year ended 08/31/18

     20.75       0.05       4.07       4.12       (1.06 )      23.81       20.75       139,584       0.62       0.62       0.22       44  

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

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

(d) 

Annualized.

 

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

 

10   Invesco American Franchise Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

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

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

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

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

A.

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

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.

 

11   Invesco American Franchise Fund

Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

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

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

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

C.

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

D.

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

E.

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

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

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

F.

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

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner

 

12   Invesco American Franchise Fund

consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $31,616 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

J.

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

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

K.

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

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

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

L.

Other Risks - The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.

M.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate

First $ 250 million

    0.695%

Next $250 million

    0.670%

Next $500 million

    0.645%

Next $550 million

    0.620%

Next $3.45 billion

    0.600%

Next $250 million

    0.595%

Next $2.25 billion

    0.570%

Next $2.5 billion

    0.545%

Over $10 billion

    0.520%

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.58%.

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

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

 

13   Invesco American Franchise Fund

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $76,926.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A, Class C and Class R shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% of Class C average daily net assets and up to 0.50% of Class R average daily net assets. The fees are accrued daily and paid monthly.

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

For the six months ended February 28, 2023, expenses incurred under these agreements are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $403,598 in front-end sales commissions from the sale of Class A shares and $6,282 and $2,119 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended February 28, 2023, the Fund incurred $161,501 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1              Level 2                      Level 3            Total  

 

  

Investments in Securities

            

 

  

Common Stocks & Other Equity Interests

    $  9,942,014,433          $ 672,154,497      $–    $ 10,614,168,930  

 

  

Money Market Funds

      80,866,598        600,028,119        –      680,894,717  

 

  

Total Investments

    $ 10,022,881,031      $ 1,272,182,616      $–    $ 11,295,063,647  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $108,020.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

 

14   Invesco American Franchise Fund

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of August 31, 2022.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $5,141,949,233 and $5,420,500,824, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of investments

    $ 3,080,328,465  

 

  

Aggregate unrealized (depreciation) of investments

      (237,907,779 ) 

 

  

Net unrealized appreciation of investments

    $ 2,842,420,686  

 

  

Cost of investments for tax purposes is $8,452,642,961.

NOTE 9–Share Information

 

           Summary of Share Activity        

 

  
     Six months ended
February 28, 2023(a) 		    Year ended
August 31, 2022		  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      7,745,519     $   134,285,375       16,184,114     $ 384,989,991  

 

  

Class C

      339,581       4,801,050       722,554       14,637,079  

 

  

Class R

      347,787       5,729,296       716,859       16,325,164  

 

  

Class Y

      2,144,989       38,873,532       4,503,348       115,561,494  

 

  

Class R5

      50,092       920,262       315,779       8,550,807  

 

  

Class R6

      310,843       5,781,769       751,440       19,326,649  

 

  

Issued as reinvestment of dividends:

         

Class A

      43,009,004       697,605,684       122,714,946       2,985,654,474  

 

  

Class C

      581,058       7,681,585       1,760,545       35,774,296  

 

  

Class R

      252,436       3,887,529       616,831       14,341,328  

 

  

Class Y

      1,107,125       18,942,913       3,622,697       92,415,012  

 

  

Class R5

      133,788       2,302,493       367,816       9,430,807  

 

  

Class R6

      233,360       4,074,460       655,813       17,031,460  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      254,133       4,377,369       493,734       11,696,904  

 

  

Class C

      (309,830 )      (4,377,369 )      (586,530 )      (11,696,904 ) 

 

  

 

15   Invesco American Franchise Fund

           Summary of Share Activity        

 

  
     Six months ended
February 28, 2023(a) 		    Year ended
August 31, 2022		  
     Shares     Amount     Shares     Amount  

 

  

Reacquired:

         

Class A

      (32,279,852 )    $ (560,291,069 )      (55,504,429 )    $ (1,308,446,794 ) 

 

  

Class C

      (646,878 )      (9,264,641 )      (1,320,833 )      (25,048,543 ) 

 

  

Class R

      (256,667 )      (4,266,829 )      (561,984 )      (12,450,810 ) 

 

  

Class Y

      (4,050,694 )      (73,466,488 )      (5,668,956 )      (134,978,821 ) 

 

  

Class R5

      (85,069 )      (1,553,630 )      (414,921 )      (11,492,895 ) 

 

  

Class R6

      (356,996 )      (6,676,437 )      (939,122 )      (24,941,602 ) 

 

  

Net increase in share activity

      18,523,729     $ 269,366,854       88,429,701     $ 2,196,679,096  

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 31% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

16   Invesco American Franchise Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

         

ACTUAL

  

HYPOTHETICAL

(5% annual return before

expenses)

     
     Beginning
      Account Value    
(09/01/22)		   Ending
      Account Value       
(02/28/23)1 		  Expenses
      Paid During       
Period2 		  Ending
    Account Value    
(02/28/23)		   Expenses
      Paid During       
Period2 		  Annualized
Expense
Ratio

Class A    

   $1,000.00   $977.00   $4.90   $1,019.84   $5.01   1.00%

Class C    

     1,000.00     973.50     8.56     1,016.12     8.75     1.75   

Class R    

     1,000.00     975.90     6.12     1,018.60     6.26     1.25   

Class Y    

     1,000.00     977.60     3.68     1,021.08     3.76     0.75   

Class R5    

     1,000.00     978.30     3.48     1,021.27     3.56     0.71   

Class R6    

     1,000.00     978.50     3.14     1,021.62     3.21     0.64   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

17   Invesco American Franchise Fund

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074    Invesco Distributors, Inc.                        VK-AMFR-SAR-1

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Semiannual Report to Shareholders    February 28, 2023

Invesco Capital Appreciation Fund

Nasdaq:

A: OPTFX ∎ C: OTFCX ∎ R: OTCNX ∎ Y: OTCYX ∎ R5: CPTUX ∎ R6: OPTIX

 

 

 

 

    

2    Fund Performance
4    Schedule of Investments
7    Financial Statements
10    Financial Highlights
11    Notes to Financial Statements
17    Fund Expenses

 

 

 

 

 

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

    

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

      -5.64 % 

Class C Shares

      -5.96  

Class R Shares

      -5.74  

Class Y Shares

      -5.51  

Class R5 Shares

      -5.51  

Class R6 Shares

      -5.47  

S&P 500 Index▼

      1.26  

Russell 1000 Growth Index▼

      -1.24  

Source(s): ▼RIMES Technologies Corp.

 

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

 

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

 

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

 

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

 

 

 

    

 

For more information about your Fund

 

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

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

 

 

 

 

            

 

 

2   Invesco Capital Appreciation Fund

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable   sales charges

 

Class A Shares

        

Inception (1/22/81)

     11.23 % 

10 Years

     9.97  

  5 Years

     6.87  

  1 Year

     -22.86  

Class C Shares

        

Inception (12/1/93)

     8.61 % 

10 Years

     9.91  

  5 Years

     7.25  

  1 Year

     -19.78  

Class R Shares

        

Inception (3/1/01)

     5.21 % 

10 Years

     10.30  

  5 Years

     7.80  

  1 Year

     -18.58  

Class Y Shares

        

Inception (11/3/97)

     7.18 % 

10 Years

     10.86  

  5 Years

     8.33  

  1 Year

     -18.17  

Class R5 Shares

        

10 Years

     10.71 % 

  5 Years

     8.33  

  1 Year

     -18.14  

Class R6 Shares

        

Inception (12/29/11)

     11.66 % 

10 Years

     11.05  

  5 Years

     8.53  

  1 Year

     -18.10  

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

    Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

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

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

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

    

 

 

3   Invesco Capital Appreciation Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–98.78%

 

Advertising–0.53%

 

Trade Desk, Inc. (The), Class A(b)

      355,106      $      19,871,732  

 

  

Aerospace & Defense–0.75%

 

TransDigm Group, Inc.

      37,661        28,014,888  

 

  

Agricultural & Farm Machinery–1.15%

 

Deere & Co.

      103,072        43,211,905  

 

  

Apparel Retail–0.91%

 

TJX Cos., Inc. (The)

      448,332        34,342,231  

 

  

Apparel, Accessories & Luxury Goods–0.49%

 

lululemon athletica, inc.(b)

      58,909        18,214,663  

 

  

Application Software–6.10%

 

HubSpot, Inc.(b)

      72,655        28,107,314  

 

  

Intuit, Inc.

      75,133        30,592,655  

 

  

Paycom Software, Inc.(b)

      64,470        18,635,698  

 

  

Roper Technologies, Inc.(c)

      67,556        29,062,591  

 

  

Synopsys, Inc.(b)

      212,520        77,306,275  

 

  

Workday, Inc., Class A(b)

      245,400        45,514,338  

 

  
     229,218,871  

 

  

Asset Management & Custody Banks–0.53%

 

KKR & Co., Inc., Class A

      353,486        19,918,936  

 

  

Auto Parts & Equipment–0.50%

 

Aptiv PLC(b)

      161,999        18,837,244  

 

  

Automobile Manufacturers–1.10%

 

Tesla, Inc.(b)

      201,007        41,349,150  

 

  

Automotive Retail–1.55%

 

AutoZone, Inc.(b)

      23,418        58,229,794  

 

  

Biotechnology–1.49%

 

AbbVie, Inc.

      128,436        19,766,300  

 

  

Vertex Pharmaceuticals, Inc.(b)

      124,051        36,010,765  

 

  
     55,777,065  

 

  

Building Products–1.01%

 

Trane Technologies PLC

      204,960        37,911,451  

 

  

Casinos & Gaming–1.05%

 

Las Vegas Sands Corp.(b)

      685,732        39,409,018  

 

  

Communications Equipment–1.19%

 

Motorola Solutions, Inc.

      169,869        44,643,272  

 

  

Construction & Engineering–1.58%

 

Quanta Services, Inc.

      366,756        59,194,418  

 

  

Construction Machinery & Heavy Trucks–0.70%

 

Caterpillar, Inc.

      109,284        26,178,982  

 

  

Copper–0.45%

 

Freeport-McMoRan, Inc.

      415,953        17,041,594  

 

  

Data Processing & Outsourced Services–5.33%

 

Mastercard, Inc., Class A

      359,221        127,627,629  

 

  
     Shares      Value  

 

  

Data Processing & Outsourced Services–(continued)

 

Visa, Inc., Class A(c)

      330,104      $      72,603,074  

 

  
     200,230,703  

 

  

Distributors–0.55%

 

Genuine Parts Co.

      115,787        20,478,089  

 

  

Electrical Components & Equipment–0.64%

 

Hubbell, Inc.

      96,020        24,152,870  

 

  

Environmental & Facilities Services–0.88%

 

Waste Connections, Inc.

      248,001        33,212,294  

 

  

Financial Exchanges & Data–1.01%

 

S&P Global, Inc.

      111,155        37,926,086  

 

  

Footwear–0.72%

 

NIKE, Inc., Class B

      226,917        26,955,471  

 

  

Health Care Equipment–3.36%

 

Boston Scientific Corp.(b)

      410,365        19,172,253  

 

  

DexCom, Inc.(b)

      412,809        45,825,927  

 

  

Insulet Corp.(b)(c)

      63,907        17,661,339  

 

  

Intuitive Surgical, Inc.(b)

      64,619        14,822,952  

 

  

Stryker Corp.

      109,865        28,881,311  

 

  
     126,363,782  

 

  

Homebuilding–0.96%

 

D.R. Horton, Inc.

      390,371        36,101,510  

 

  

Hotels, Resorts & Cruise Lines–1.70%

 

Booking Holdings, Inc.(b)

      11,234        28,354,616  

 

  

Marriott International, Inc., Class A

      209,344        35,429,379  

 

  
     63,783,995  

 

  

Industrial Machinery–1.01%

 

Parker-Hannifin Corp.

      107,268        37,742,246  

 

  

Interactive Media & Services–5.83%

 

Alphabet, Inc., Class C(b)

      1,514,678        136,775,423  

 

  

Meta Platforms, Inc., Class A(b)

      323,058        56,515,767  

 

  

Pinterest, Inc., Class A(b)

      1,028,629        25,828,874  

 

  
     219,120,064  

 

  

Internet & Direct Marketing Retail–3.79%

 

Alibaba Group Holding Ltd., ADR (China)(b)

      333,200        29,251,628  

 

  

Amazon.com, Inc.(b)

      1,202,188        113,282,175  

 

  
     142,533,803  

 

  

Internet Services & Infrastructure–0.67%

 

MongoDB, Inc.(b)

      120,589        25,265,807  

 

  

Investment Banking & Brokerage–0.51%

 

Goldman Sachs Group, Inc. (The)

      54,208        19,062,243  

 

  

IT Consulting & Other Services–1.89%

 

Amdocs Ltd.

      272,344        24,949,434  

 

  

Gartner, Inc.(b)

      139,983        45,887,827  

 

  
     70,837,261  

 

  
 

 

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

 

4   Invesco Capital Appreciation Fund

    Shares     Value  

 

  

Life Sciences Tools & Services–2.55%

 

Agilent Technologies, Inc.

     239,215     $      33,961,354  

 

  

Danaher Corp.

     112,973       27,964,207  

 

  

Thermo Fisher Scientific, Inc.

     62,457       33,836,704  

 

  
    95,762,265  

 

  

Managed Health Care–2.94%

 

UnitedHealth Group, Inc.

     232,335       110,577,520  

 

  

Movies & Entertainment–1.25%

 

Netflix, Inc.(b)

     146,233       47,106,036  

 

  

Oil & Gas Equipment & Services–0.91%

 

Schlumberger Ltd.

     640,170       34,063,446  

 

  

Oil & Gas Exploration & Production–0.48%

 

Diamondback Energy, Inc.

     127,861       17,974,699  

 

  

Oil & Gas Storage & Transportation–1.38%

 

Cheniere Energy, Inc.

     328,741       51,724,109  

 

  

Packaged Foods & Meats–0.54%

 

Hershey Co. (The)

     85,525       20,382,318  

 

  

Personal Products–0.68%

 

Estee Lauder Cos., Inc. (The), Class A

     104,381       25,369,802  

 

  

Pharmaceuticals–1.45%

 

Eli Lilly and Co.

     175,256       54,543,172  

 

  

Property & Casualty Insurance–1.55%

 

Progressive Corp. (The)

     406,499       58,340,737  

 

  

Research & Consulting Services–0.09%

 

CoStar Group, Inc.(b)

     49,326       3,485,375  

 

  

Restaurants–1.73%

 

Chipotle Mexican Grill, Inc.(b)

     23,766       35,437,007  

 

  

McDonald’s Corp.

     111,790       29,502,499  

 

  
    64,939,506  

 

  

Semiconductor Equipment–0.70%

 

ASML Holding N.V., New York Shares (Netherlands)

     42,368       26,171,985  

 

  

Semiconductors–10.65%

 

Advanced Micro Devices, Inc.(b)

     796,164       62,562,567  

 

  

Broadcom, Inc.

     47,713       28,355,359  

 

  

First Solar, Inc.(b)

     178,079       30,120,282  

 

  

GLOBALFOUNDRIES, Inc.(b)(c)

     297,084       19,411,469  

 

  

Monolithic Power Systems, Inc.

     145,650       70,536,838  

 

  

NVIDIA Corp.

     691,913       160,634,522  

 

  

STMicroelectronics N.V., New York Shares (Singapore)(c)

     590,529       28,439,877  

 

  
    400,060,914  

 

  

Soft Drinks–2.73%

 

Monster Beverage Corp.(b)

     525,511       53,475,999  

 

  
    Shares     Value  

 

  

Soft Drinks–(continued)

    

PepsiCo, Inc.

     283,763     $      49,241,394  

 

  
    102,717,393  

 

  

Specialty Chemicals–1.12%

 

Albemarle Corp.

     165,503       42,089,068  

 

  

Systems Software–8.94%

 

Microsoft Corp.

     1,054,713       263,066,516  

 

  

ServiceNow, Inc.(b)

     168,527       72,832,314  

 

  
    335,898,830  

 

  

Technology Hardware, Storage & Peripherals–5.96%

 

Apple, Inc.

     1,519,174       223,941,439  

 

  

Trading Companies & Distributors–1.21%

 

United Rentals, Inc.

     96,929       45,414,144  

 

  

Trucking–1.48%

 

Old Dominion Freight Line, Inc.

     82,590       28,019,483  

 

  

Uber Technologies, Inc.(b)

     823,950       27,404,577  

 

  
    55,424,060  

 

  

Wireless Telecommunication Services–0.51%

 

T-Mobile US, Inc.(b)

     134,398       19,108,708  

 

  

Total Common Stocks & Other Equity Interests
(Cost $2,850,123,931)

 

     3,710,226,964  

 

  

Money Market Funds–1.22%

    

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(e)

     16,080,089       16,080,089  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(d)(e)

     11,480,721       11,483,018  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(d)(e)

     18,377,245       18,377,245  

 

  

Total Money Market Funds
(Cost $45,940,352)

 

     45,940,352  

 

  

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.00%
(Cost $2,896,064,283)

 

     3,756,167,316  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–2.82%

    

Invesco Private Government Fund, 4.58%(d)(e)(f)

     29,644,762       29,644,762  

 

  

Invesco Private Prime Fund,
4.83%(d)(e)(f)

     76,214,146       76,229,387  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $105,881,813)

 

     105,874,149  

 

  

TOTAL INVESTMENTS IN SECURITIES–102.82%
(Cost $3,001,946,096)

 

     3,862,041,465  

 

  

OTHER ASSETS LESS LIABILITIES–(2.82)%

 

     (105,920,566 ) 

 

  

NET ASSETS–100.00%

     $ 3,756,120,899  

 

  
 
Investment Abbreviations:
ADR – American Depositary Receipt

 

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

 

5   Invesco Capital Appreciation Fund

Notes to Schedule of Investments:

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at February 28, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

    

Value

August 31, 2022

  

Purchases

at Cost

  

Proceeds

from Sales

  

Change in

Unrealized

Appreciation

(Depreciation)

  

Realized

Gain

  

Value

February 28,
2023

  

Dividend Income

Investments in Affiliated Money     Market Funds:                                                                

Invesco Government & Agency Portfolio, Institutional Class

     $ 5,004,019     $ 218,186,260     $ (207,110,190)       $ -     $ -     $ 16,080,089   $    358,768  

Invesco Liquid Assets Portfolio, Institutional Class

       3,562,398       155,847,329       (147,929,449)       (1,412)       4,152       11,483,018   262,528  

Invesco Treasury Portfolio, Institutional Class

       5,718,878       249,355,725       (236,697,358)         -       -       18,377,245   408,346  
Investments Purchased with Cash Collateral from Securities on Loan:                                                                

Invesco Private Government Fund

       46,053,462       189,635,361       (206,044,061)       -       -       29,644,762   586,699* 

Invesco Private Prime Fund

       118,423,189       469,869,192       (512,065,514)       (11,922)       14,442       76,229,387   1,592,214* 

Total

     $ 178,761,946     $ 1,282,893,867     $ (1,309,846,572)     $ (13,334)     $ 18,594     $ 151,814,501   $ 3,208,555  

 

  *

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(f) 

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

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Information Technology

      41.43%  

 

  

Consumer Discretionary

      15.05     

 

  

Health Care

      11.80     

 

  

Industrials

      10.49     

 

  

Communication Services

      8.13     

 

  

Consumer Staples

      3.95     

 

  

Financials

      3.60     

 

  

Energy

      2.76     

 

  

Materials

      1.57     

 

  

Money Market Funds Plus Other Assets Less Liabilities

      1.22     

 

  

 

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

 

6   Invesco Capital Appreciation Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $2,850,123,931)*

    $ 3,710,226,964  

 

  

Investments in affiliated money market funds, at value
(Cost $151,822,165)

      151,814,501  

 

  

Cash

      5,062,184  

 

  

Foreign currencies, at value (Cost $144)

      130  

 

  

Receivable for:

   

Investments sold

      67,549,608  

 

  

Fund shares sold

      898,439  

 

  

Dividends

      2,361,022  

 

  

Investment for trustee deferred compensation and retirement plans

      458,935  

 

  

Other assets

      86,587  

 

  

Total assets

      3,938,458,370  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      71,922,819  

 

  

Fund shares reacquired

      1,842,404  

 

  

Collateral upon return of securities loaned

      105,881,813  

 

  

Accrued fees to affiliates

      1,561,448  

 

  

Accrued trustees’ and officers’ fees and benefits

      443,871  

 

  

Accrued other operating expenses

      226,181  

 

  

Trustee deferred compensation and retirement plans

      458,935  

 

  

Total liabilities

      182,337,471  

 

  

Net assets applicable to shares outstanding

    $ 3,756,120,899  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 3,140,523,374  

 

  

Distributable earnings

      615,597,525  

 

  
   $ 3,756,120,899  

 

  

Net Assets:

   

Class A

    $ 3,399,691,328  

 

  

Class C

    $ 127,931,200  

 

  

Class R

    $ 119,291,754  

 

  

Class Y

    $ 96,986,303  

 

  

Class R5

    $ 62,849  

 

  

Class R6

    $ 12,157,465  

 

  

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

 

Class A

      69,295,408  

 

  

Class C

      5,006,237  

 

  

Class R

      2,762,876  

 

  

Class Y

      1,699,597  

 

  

Class R5

      1,263  

 

  

Class R6

      209,528  

 

  

Class A:

   

Net asset value per share

    $ 49.06  

 

  

Maximum offering price per share
(Net asset value of $49.06 ÷ 94.50%)

    $ 51.92  

 

  

Class C:

   

Net asset value and offering price per share

    $ 25.55  

 

  

Class R:

   

Net asset value and offering price per share

    $ 43.18  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 57.06  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 49.76  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 58.02  

 

  

 

*

At February 28, 2023, securities with an aggregate value of $103,699,965 were on loan to brokers.

 

 

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

 

7   Invesco Capital Appreciation Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $96,001)

    $ 16,728,031  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $255,955)

      1,285,597  

 

  

Total investment income

      18,013,628  

 

  

Expenses:

   

Advisory fees

      11,271,157  

 

  

Administrative services fees

      279,110  

 

  

Custodian fees

      11,580  

 

  

Distribution fees:

   

Class A

      3,907,297  

 

  

Class C

      667,768  

 

  

Class R

      296,631  

 

  

Transfer agent fees – A, C, R and Y

      2,366,142  

 

  

Transfer agent fees – R5

      34  

 

  

Transfer agent fees – R6

      1,760  

 

  

Trustees’ and officers’ fees and benefits

      70,790  

 

  

Registration and filing fees

      204,860  

 

  

Reports to shareholders

      91,695  

 

  

Professional services fees

      35,353  

 

  

Other

      23,346  

 

  

Total expenses

      19,227,523  

 

  

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

      (112,258 ) 

 

  

Net expenses

      19,115,265  

 

  

Net investment income (loss)

      (1,101,637 ) 

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (229,719,452 ) 

 

  

Affiliated investment securities

      18,594  

 

  

Foreign currencies

      (14,659 ) 

 

  
     (229,715,517 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      (4,061,754 ) 

 

  

Affiliated investment securities

      (13,334 ) 

 

  

Foreign currencies

      28,901  

 

  
     (4,046,187 ) 

 

  

Net realized and unrealized gain (loss)

      (233,761,704 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (234,863,341 ) 

 

  

 

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

 

8   Invesco Capital Appreciation Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,
2023		    

August 31,

2022

  

 

  

Operations:

     

Net investment income (loss)

    $ (1,101,637 )    $ (18,749,690 ) 

 

  

Net realized gain (loss)

      (229,715,517 )      255,924,524  

 

  

Change in net unrealized appreciation (depreciation)

      (4,046,187 )      (1,577,727,401 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      (234,863,341 )      (1,340,552,567 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (29,171,584 )      (1,172,869,924 ) 

 

  

Class C

      (2,131,016 )      (75,716,804 ) 

 

  

Class R

      (1,132,464 )      (42,298,265 ) 

 

  

Class Y

      (701,928 )      (30,905,063 ) 

 

  

Class R5

      (606 )      (10,229 ) 

 

  

Class R6

      (83,781 )      (3,523,987 ) 

 

  

Total distributions from distributable earnings

      (33,221,379 )      (1,325,324,272 ) 

 

  

Share transactions–net:

     

Class A

      (126,244,360 )      786,681,347  

 

  

Class C

      (8,023,346 )      51,369,367  

 

  

Class R

      564,735       34,913,203  

 

  

Class Y

      (5,332,862 )      15,696,964  

 

  

Class R5

      (9,465 )      54,228  

 

  

Class R6

      29,959       524,910  

 

  

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

      (139,015,339 )      889,240,019  

 

  

Net increase (decrease) in net assets

      (407,100,059 )      (1,776,636,820 ) 

 

  

Net assets:

     

Beginning of period

      4,163,220,958       5,939,857,778  

 

  

End of period

    $ 3,756,120,899     $ 4,163,220,958  

 

  

 

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

 

9   Invesco Capital Appreciation Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income

(loss)(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed(c)

  

Ratio of net

investment

income

(loss)

to average

net assets

  

Portfolio

turnover (d)

Class A

 

                            

Six months ended 02/28/23

     $ 52.44     $ (0.01 )     $ (2.95 )     $ (2.96 )     $       –     $ (0.42 )     $ (0.42 )     $ 49.06       (5.64 )%(e)     $ 3,399,691       0.98 %(e)(f)       0.98 %(e)(f)       (0.04 )%(e)(f)       50 %

Year ended 08/31/22

       88.67       (0.22 )       (16.26 )       (16.48 )             –       (19.75 )       (19.75 )       52.44       (23.55 )(e)       3,767,413       0.94 (e)        0.94 (e)        (0.35 )(e)       70

Year ended 08/31/21

       70.34       (0.35 )       21.03       20.68             –       (2.35 )       (2.35 )       88.67       30.19 (e)        5,364,306       0.95 (e)        0.95 (e)        (0.46 )(e)       78

Year ended 08/31/20

       62.38       (0.12 )       21.17       21.05             –       (13.09 )       (13.09 )       70.34       39.41 (e)        4,478,067       1.00 (e)        1.00 (e)        (0.22 )(e)       31

Year ended 08/31/19

       65.82       (0.03 )       1.23       1.20             –       (4.64 )       (4.64 )       62.38       2.97       3,566,269       1.03 (g)        1.03       (0.06 )       64

Year ended 08/31/18

       59.87       0.00       11.40       11.40       (0.01 )       (5.44 )       (5.45 )       65.82       20.23       3,606,256       1.03 (g)        1.03       (0.01 )       29

Class C

 

                            

Six months ended 02/28/23

       27.63       (0.10 )       (1.56 )       (1.66 )             –       (0.42 )       (0.42 )       25.55       (6.00 )       127,931       1.75 (f)        1.75 (f)        (0.81 )(f)       50

Year ended 08/31/22

       56.55       (0.40 )       (8.77 )       (9.17 )             –       (19.75 )       (19.75 )       27.63       (24.16 )       146,841       1.71       1.71       (1.12 )       70

Year ended 08/31/21

       46.01       (0.60 )       13.49       12.89             –       (2.35 )       (2.35 )       56.55       29.17       221,514       1.73       1.73       (1.24 )       78

Year ended 08/31/20

       45.21       (0.39 )       14.28       13.89             –       (13.09 )       (13.09 )       46.01       38.34       230,567       1.78       1.78       (1.00 )       31

Year ended 08/31/19

       49.50       (0.36 )       0.71       0.35             –       (4.64 )       (4.64 )       45.21       2.18       201,751       1.80 (g)        1.80       (0.83 )       64

Year ended 08/31/18

       46.61       (0.36 )       8.69       8.33             –       (5.44 )       (5.44 )       49.50       19.33       404,733       1.79 (g)        1.79       (0.77 )       29

Class R

 

                            

Six months ended 02/28/23

       46.26       (0.07 )       (2.59 )       (2.66 )             –       (0.42 )       (0.42 )       43.18       (5.74 )       119,292       1.25 (f)        1.25 (f)        (0.31 )(f)       50

Year ended 08/31/22

       80.77       (0.36 )       (14.40 )       (14.76 )             –       (19.75 )       (19.75 )       46.26       (23.76 )       127,130       1.21       1.21       (0.62 )       70

Year ended 08/31/21

       64.44       (0.51 )       19.19       18.68             –       (2.35 )       (2.35 )       80.77       29.83       175,274       1.23       1.23       (0.74 )       78

Year ended 08/31/20

       58.28       (0.26 )       19.51       19.25             –       (13.09 )       (13.09 )       64.44       39.04       147,187       1.28       1.28       (0.50 )       31

Year ended 08/31/19

       62.00       (0.18 )       1.10       0.92             –       (4.64 )       (4.64 )       58.28       2.68       117,019       1.30 (g)        1.30       (0.32 )       64

Year ended 08/31/18

       56.82       (0.15 )       10.77       10.62             –       (5.44 )       (5.44 )       62.00       19.92       112,845       1.29 (g)        1.29       (0.27 )       29

Class Y

 

                            

Six months ended 02/28/23

       60.85       0.06       (3.43 )       (3.37 )             –       (0.42 )       (0.42 )       57.06       (5.53 )       96,986       0.75 (f)        0.75 (f)        0.19 (f)        50

Year ended 08/31/22

       99.48       (0.09 )       (18.79 )       (18.88 )             –       (19.75 )       (19.75 )       60.85       (23.38 )       108,866       0.71       0.71       (0.12 )       70

Year ended 08/31/21

       78.49       (0.21 )       23.55       23.34             –       (2.35 )       (2.35 )       99.48       30.44       158,879       0.73       0.73       (0.24 )       78

Year ended 08/31/20

       68.08       0.01       23.49       23.50             –       (13.09 )       (13.09 )       78.49       39.75       114,061       0.78       0.78       0.00       31

Year ended 08/31/19

       71.23       0.11       1.40       1.51       (0.02 )       (4.64 )       (4.66 )       68.08       3.20       95,438       0.80 (g)        0.80       0.17       64

Year ended 08/31/18

       64.36       0.15       12.30       12.45       (0.14 )       (5.44 )       (5.58 )       71.23       20.51       115,119       0.80 (g)        0.80       0.22       29

Class R5

 

                            

Six months ended 02/28/23

       53.11       0.06       (2.99 )       (2.93 )             –       (0.42 )       (0.42 )       49.76       (5.51 )       63       0.73 (f)        0.73 (f)        0.21 (f)        50

Year ended 08/31/22

       89.38       (0.06 )       (16.46 )       (16.52 )             –       (19.75 )       (19.75 )       53.11       (23.38 )       77       0.70       0.70       (0.11 )       70

Year ended 08/31/21

       70.69       (0.14 )       21.18       21.04             –       (2.35 )       (2.35 )       89.38       30.55       46       0.67       0.69       (0.18 )       78

Year ended 08/31/20

       62.44       0.07       21.27       21.34             –       (13.09 )       (13.09 )       70.69       39.90       36       0.67       0.67       0.11       31

Period ended 08/31/19(h)

       58.66       0.05       3.73       3.78             –             –             –       62.44       6.44       11       0.68 (f)(g)        0.68 (f)        0.29 (f)        64

Class R6

 

                            

Six months ended 02/28/23

       61.84       0.08       (3.48 )       (3.40 )             –       (0.42 )       (0.42 )       58.02       (5.49 )       12,157       0.66 (f)        0.66 (f)        0.28 (f)        50

Year ended 08/31/22

       100.70       (0.03 )       (19.08 )       (19.11 )             –       (19.75 )       (19.75 )       61.84       (23.32 )       12,895       0.63       0.63       (0.04 )       70

Year ended 08/31/21

       79.32       (0.12 )       23.85       23.73             –       (2.35 )       (2.35 )       100.70       30.62       19,838       0.62       0.63       (0.13 )       78

Year ended 08/31/20

       68.60       0.10       23.71       23.81             –       (13.09 )       (13.09 )       79.32       39.91       14,514       0.63       0.67       0.15       31

Year ended 08/31/19

       71.57       0.23       1.58       1.81       (0.14 )       (4.64 )       (4.78 )       68.60       3.66       9,747       0.63 (g)        0.63       0.33       64

Year ended 08/31/18

       64.64       0.26       12.36       12.62       (0.25 )       (5.44 )       (5.69 )       71.57       20.70       1,076,452       0.63 (g)        0.63       0.39       29

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended August 31, 2019 and 2018.

(d) 

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

(e) 

The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.23% for Class A for the six months ended February 28,2023 and 0.23%, 0.22% and 0.22% for the years ended August 31, 2022, 2021 and 2020, respectively.

(f) 

Annualized.

(g) 

Includes fee waivers which were less than 0.005% per share.

(h) 

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

 

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

 

10   Invesco Capital Appreciation Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

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

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

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

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

A.

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

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.

 

11   Invesco Capital Appreciation Fund

Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

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

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

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

C.

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

D.

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

E.

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

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

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

F.

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

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner

 

12   Invesco Capital Appreciation Fund

consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $26,561 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

J.

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

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

K.

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

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

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

L.

Other Risks – The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.

M.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate*  

 

  

Up to $200 million

      0.750%  

 

  

Next $200 million

      0.720%  

 

  

Next $200 million

      0.690%  

 

  

Next $200 million

      0.660%  

 

  

Next $700 million

      0.600%  

 

  

Next $1 billion

      0.580%  

 

  

Next $2 billion

      0.560%  

 

  

Next $2 billion

      0.540%  

 

  

Next $2 billion

      0.520%  

 

  

Next $2.5 billion

      0.500%  

 

  

Over $11 billion

      0.480%  

 

  

 

*

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

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.59%.

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

The Adviser has contractually agreed through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense

 

13   Invesco Capital Appreciation Fund

on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive and/or reimburse expenses during the period under these expense limits.

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $33,494.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $166,693 in front-end sales commissions from the sale of Class A shares and $1,627 and $1,477 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended February 28, 2023, the Fund incurred $28,137 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1             Level 2             Level 3             Total  

 

  

Investments in Securities

                     

 

  

Common Stocks & Other Equity Interests

    $ 3,710,226,964                      $ –           $–         $ 3,710,226,964  

 

  

Money Market Funds

      45,940,352           105,874,149                          –                        151,814,501  

 

  

Total Investments

    $ 3,756,167,316         $ 105,874,149           $–         $ 3,862,041,465  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $78,764.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be

 

14   Invesco Capital Appreciation Fund

invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of August 31, 2022.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $1,921,623,717 and $2,119,764,099, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of investments

    $ 928,529,425  

 

  

Aggregate unrealized (depreciation) of investments

      (72,904,877 ) 

 

  

Net unrealized appreciation of investments

    $ 855,624,548  

 

  

Cost of investments for tax purposes is $3,006,416,917.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      1,464,023     $ 72,323,401       3,044,971     $ 199,645,690  

 

  

Class C

      385,573       9,980,009       717,796       26,211,160  

 

  

Class R

      225,993       9,829,679       366,932       21,109,593  

 

  

Class Y

      332,641       18,999,159       693,565       53,097,385  

 

  

Class R5

      -       -       838       47,366  

 

  

Class R6

      32,679       1,884,318       65,904       4,906,211  

 

  

Issued as reinvestment of dividends:

         

Class A

      587,371       28,299,513       16,812,823       1,134,361,740  

 

  

Class C

      84,256       2,118,194       2,093,379       74,838,311  

 

  

Class R

      26,613       1,129,177       707,191       42,169,792  

 

  

Class Y

      10,603       593,955       324,392       25,357,728  

 

  

Class R5

      11       535       101       6,862  

 

  

Class R6

      1,300       74,042       37,350       2,965,201  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      152,424       7,513,215       267,782       17,193,893  

 

  

Class C

      (291,037 )      (7,513,215 )      (489,776 )      (17,193,893 ) 

 

  

 

15   Invesco Capital Appreciation Fund

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Reacquired:

         

Class A

      (4,755,320 )    $ (234,380,489 )      (8,776,105 )    $ (564,519,976 ) 

 

  

Class C

      (486,221 )      (12,608,334 )      (924,712 )      (32,486,211 ) 

 

  

Class R

      (237,751 )      (10,394,121 )      (496,246 )      (28,366,182 ) 

 

  

Class Y

      (432,734 )      (24,925,976 )      (825,924 )      (62,758,149 ) 

 

  

Class R5

      (205 )      (10,000 )      -       -  

 

  

Class R6

      (32,979 )      (1,928,401 )      (91,732 )      (7,346,502 ) 

 

  

Net increase (decrease) in share activity

      (2,932,760 )    $ (139,015,339 )      13,528,529     $ 889,240,019  

 

  

 

16   Invesco Capital Appreciation Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

         

ACTUAL

  

HYPOTHETICAL

(5% annual return before

expenses)

     
     Beginning
    Account Value    
(09/01/22)		   Ending
    Account Value    
(02/28/23)1		   Expenses
    Paid During    
Period2		   Ending
    Account Value    
(02/28/23)		   Expenses
    Paid During    
Period2		       Annualized    
Expense Ratio

Class A

   $1,000.00   $943.60   $4.72   $1,019.93   $4.91   0.98%

Class C

     1,000.00     940.00     8.42     1,016.12     8.75   1.75   

Class R

     1,000.00     942.60     6.02     1,018.60     6.26   1.25   

Class Y

     1,000.00     944.70     3.62     1,021.08     3.76   0.75   

Class R5

     1,000.00     944.90     3.52     1,021.17     3.66   0.73   

Class R6

     1,000.00     945.10     3.18     1,021.52     3.31   0.66   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

17   Invesco Capital Appreciation Fund

 

 

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

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

 

∎

Fund reports and prospectuses

∎

Quarterly statements

∎

Daily confirmations

∎

Tax forms

 

 

Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

 

LOGO

 

SEC file number(s): 811-09913 and 333-36074                       Invesco Distributors, Inc.      O-CAPA-SAR-1                                                                           

LOGO

 

   
Semiannual Report to Shareholders   February 28, 2023

Invesco Core Plus Bond Fund

Nasdaq:

A: ACPSX ∎ C: CPCFX ∎ R: CPBRX ∎ Y: CPBYX ∎ R5: CPIIX ∎ R6: CPBFX

 

    

   
2   Fund Performance
4   Schedule of Investments
28   Financial Statements
31   Financial Highlights
32   Notes to Financial Statements
42   Fund Expenses

 

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     -0.28 % 

Class C Shares

     -0.77  

Class R Shares

     -0.52  

Class Y Shares

     -0.26  

Class R5 Shares

     -0.26  

Class R6 Shares

     -0.25  

Bloomberg U.S. Aggregate Bond Index▼ (Broad Market/Style-Specific Index)

     -2.13  

Lipper Core Plus Bond Funds Index∎ (Peer Group Index)

     -1.49  

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

  

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

 

    The Lipper Core Plus Bond Funds Index is an unmanaged index considered representative of core plus bond funds tracked by Lipper.

 

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

 

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

 

 

 

 

 

For more information about your Fund

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

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

 

 

 

2   Invesco Core Plus Bond Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (6/3/09)

     2.93 % 

10 Years

     1.44  

  5 Years

     -0.06  

  1 Year

     -13.16  

Class C Shares

        

Inception (6/3/09)

     2.79 % 

10 Years

     1.27  

  5 Years

     0.04  

  1 Year

     -10.94  

Class R Shares

        

Inception (6/3/09)

     2.99 % 

10 Years

     1.62  

  5 Years

     0.53  

  1 Year

     -9.62  

Class Y Shares

        

Inception (6/3/09)

     3.51 % 

10 Years

     2.13  

  5 Years

     1.03  

  1 Year

     -9.14  

Class R5 Shares

        

Inception (6/3/09)

     3.51 % 

10 Years

     2.14  

  5 Years

     1.05  

  1 Year

     -9.16  

Class R6 Shares

        

Inception (9/24/12)

     2.21 % 

10 Years

     2.19  

  5 Years

     1.11  

  1 Year

     -9.03  

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

    Class A share performance reflects the maximum 4.25% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees

and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

 

3   Invesco Core Plus Bond Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

     Principal         
     Amount      Value  

 

  

U.S. Dollar Denominated Bonds & Notes–46.01%

 

Aerospace & Defense–0.77%

 

   

Boeing Co. (The), 2.20%, 02/04/2026

    $ 783,000      $ 711,433  

 

  

Embraer Netherlands Finance B.V. (Brazil), 6.95%, 01/17/2028(b)

      220,000        220,846  

 

  

Lockheed Martin Corp.,

      

5.10%, 11/15/2027

      3,373,000        3,419,561  

 

  

5.70%, 11/15/2054

      2,450,000        2,655,270  

 

  

5.90%, 11/15/2063

      2,450,000        2,708,766  

 

  

Northrop Grumman Corp., 4.95%, 03/15/2053(c)

      2,301,000        2,171,393  

 

  

Raytheon Technologies Corp.,

      

5.00%, 02/27/2026

      1,983,000        1,980,528  

 

  

5.15%, 02/27/2033(c)

      9,561,000        9,518,206  

 

  

5.38%, 02/27/2053

      7,162,000        7,199,131  

 

  

TransDigm, Inc., 6.75%, 08/15/2028(b)

      4,650,000        4,632,562  

 

  
        35,217,696  

 

  

Agricultural & Farm Machinery–0.08%

 

Cargill, Inc.,

      

4.00%, 06/22/2032(b)

      1,304,000        1,203,787  

 

  

5.13%, 10/11/2032(b)(c)

      2,456,000        2,466,479  

 

  
        3,670,266  

 

  

Agricultural Products–0.02%

 

   

Bunge Ltd. Finance Corp., 2.75%, 05/14/2031

      1,250,000        1,029,821  

 

  

Air Freight & Logistics–0.45%

 

   

United Parcel Service, Inc.,

      

4.88%, 03/03/2033

      6,708,000        6,665,994  

 

  

5.05%, 03/03/2053

      14,293,000        14,122,842  

 

  
        20,788,836  

 

  

Airlines–0.41%

 

   

American Airlines Pass-Through Trust,

      

Series 2017-1, Class B, 4.95%, 02/15/2025

      329,175        319,603  

 

  

Series 2021-1, Class B, 3.95%, 07/11/2030

      5,912,405        5,185,125  

 

  

Series 2021-1, Class A, 2.88%, 07/11/2034

      847,647        701,047  

 

  

British Airways Pass-Through Trust (United Kingdom),

      

Series 2019-1, Class A, 3.35%, 06/15/2029(b)

      1,640,994        1,419,696  

 

  

Series 2021-1, Class A, 2.90%, 03/15/2035(b)

      2,808,397        2,319,105  

 

  

Delta Air Lines, Inc./SkyMiles IP Ltd.,

      

4.50%, 10/20/2025(b)

      1,704,324        1,656,358  

 

  

4.75%, 10/20/2028(b)

      4,462,302        4,241,864  

 

  

United Airlines Pass-Through Trust,

      

Series 2020-1, Class A, 5.88%, 10/15/2027

      2,445,442        2,432,123  

 

  

Series 2018-1, Class AA, 3.50%, 03/01/2030

      496,796        445,827  

 

  
     Principal         
     Amount      Value  

 

  

Airlines–(continued)

      

United Airlines, Inc., 4.38%, 04/15/2026(b)

    $ 102,000      $ 96,092  

 

  
        18,816,840  

 

  

Application Software–0.05%

      

Open Text Corp. (Canada), 6.90%, 12/01/2027(b)

      1,670,000        1,688,203  

 

  

Workday, Inc., 3.70%, 04/01/2029

      720,000        657,953  

 

  
        2,346,156  

 

  

Asset Management & Custody Banks–0.66%

 

Ameriprise Financial, Inc., 4.50%, 05/13/2032(c)

      1,097,000        1,068,971  

 

  

Apollo Management Holdings L.P., 2.65%, 06/05/2030(b)(c)

      573,000        473,267  

 

  

Ares Capital Corp.,

      

2.88%, 06/15/2028

      825,000        678,288  

 

  

3.20%, 11/15/2031

      900,000        687,326  

 

  

Bank of New York Mellon Corp. (The),

      

4.54%, 02/01/2029(d)

      5,709,000        5,550,391  

 

  

4.60%, 07/26/2030(d)

      1,136,000        1,096,253  

 

  

5.83%, 10/25/2033(d)

      3,587,000        3,738,035  

 

  

4.71%, 02/01/2034(d)

      3,693,000        3,555,081  

 

  

Series I, 3.75%(c)(d)(e)

      925,000        774,688  

 

  

Blackstone Secured Lending Fund, 2.13%, 02/15/2027

      4,882,000        4,113,996  

 

  

Northern Trust Corp., 6.13%, 11/02/2032

      4,213,000        4,447,950  

 

  

State Street Corp.,

      

5.82%, 11/04/2028(d)

      1,466,000        1,501,622  

 

  

4.16%, 08/04/2033(d)

      671,000        616,329  

 

  

4.82%, 01/26/2034(c)(d)

      2,108,000        2,033,913  

 

  
        30,336,110  

 

  

Auto Parts & Equipment–0.27%

 

   

Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 4.75%, 04/01/2028(b)

      8,444,000        7,501,657  

 

  

Metalsa S.A. de C.V. (Mexico), 4.90%, 04/24/2023(b)

      200,000        199,140  

 

  

Nemak S.A.B. de C.V. (Mexico), 3.63%, 06/28/2031(b)

      6,007,000        4,531,624  

 

  
        12,232,421  

 

  

Automobile Manufacturers–1.01%

 

   

American Honda Finance Corp., 4.70%, 01/12/2028(c)

      6,486,000        6,396,443  

 

  

BMW US Capital LLC (Germany), 3.70%, 04/01/2032(b)(c)

      470,000        425,631  

 

  

Daimler Trucks Finance North America LLC (Germany), 5.13%, 01/19/2028(b)(c)

      1,882,000        1,854,523  

 

  

Ford Motor Co., 6.10%, 08/19/2032(c)

      9,578,000        8,928,768  

 

  
 

 

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

 

4   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

Automobile Manufacturers–(continued)

 

Ford Motor Credit Co. LLC,

      

7.35%, 11/04/2027

    $ 7,967,000      $ 8,091,285  

 

  

7.35%, 03/06/2030

      5,404,000        5,478,737  

 

  

General Motors Financial Co., Inc.,

      

3.80%, 04/07/2025(c)

      1,073,000        1,032,677  

 

  

5.00%, 04/09/2027

      2,569,000        2,506,313  

 

  

4.30%, 04/06/2029(c)

      1,781,000        1,625,800  

 

  

Hyundai Capital America, 2.00%, 06/15/2028(b)

      1,257,000        1,047,703  

 

  

Nissan Motor Acceptance Co. LLC, 1.85%, 09/16/2026(b)

      751,000        636,795  

 

  

PACCAR Financial Corp., 4.60%, 01/10/2028

      2,232,000        2,216,668  

 

  

Toyota Motor Credit Corp.,

      

4.63%, 01/12/2028(c)

      3,780,000        3,733,208  

 

  

4.70%, 01/12/2033

      2,515,000        2,468,998  

 

  

Volkswagen Group of America Finance LLC (Germany), 4.60%, 06/08/2029(b)

      217,000        207,799  

 

  
        46,651,348  

 

  

Automotive Retail–0.30%

 

   

AutoZone, Inc., 4.75%, 08/01/2032

      2,158,000        2,060,846  

 

  

Lithia Motors, Inc., 3.88%, 06/01/2029(b)(c)

      7,778,000        6,506,647  

 

  

Sonic Automotive, Inc.,

      

4.63%, 11/15/2029(b)(c)

      439,000        362,607  

 

  

4.88%, 11/15/2031(b)(c)

      5,949,000        4,739,985  

 

  
        13,670,085  

 

  

Biotechnology–1.30%

      

Amgen, Inc.,

      

5.25%, 03/02/2025

      6,694,000        6,680,271  

 

  

5.15%, 03/02/2028

      8,579,000        8,547,699  

 

  

5.25%, 03/02/2030

      3,719,000        3,702,296  

 

  

5.25%, 03/02/2033

      8,969,000        8,910,076  

 

  

5.60%, 03/02/2043

      7,362,000        7,274,542  

 

  

5.65%, 03/02/2053

      14,239,000        14,131,903  

 

  

5.75%, 03/02/2063

      10,769,000        10,628,627  

 

  
        59,875,414  

 

  

Brewers–0.00%

      

Cia Cervecerias Unidas S.A. (Chile), 3.35%, 01/19/2032(b)

      250,000        207,375  

 

  

Cable & Satellite–0.53%

      

CCO Holdings LLC/CCO Holdings Capital Corp.,

      

6.38%, 09/01/2029(b)(c)

      8,833,000        8,244,545  

 

  

7.38%, 03/01/2031(b)(c)

      4,925,000        4,780,845  

 

  

4.50%, 06/01/2033(b)

      533,000        415,190  

 

  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp.,

      

3.50%, 06/01/2041

      372,000        243,655  

 

  

3.50%, 03/01/2042

      588,000        379,839  

 

  

Comcast Corp.,

      

5.50%, 11/15/2032(c)

      6,563,000        6,748,606  

 

  

2.80%, 01/15/2051

      8,000        5,112  

 

  
     Principal         
     Amount      Value  

 

  

Cable & Satellite–(continued)

 

DISH DBS Corp., 5.88%, 11/15/2024

    $ 290,000      $ 271,974  

 

  

Sirius XM Radio, Inc., 3.88%, 09/01/2031(b)

      4,336,000        3,375,533  

 

  
        24,465,299  

 

  

Casinos & Gaming–0.01%

 

Wynn Macau, Ltd. (Macau), 5.13%, 12/15/2029(b)

      400,000        328,378  

 

  

Commodity Chemicals–0.01%

 

Alpek S.A.B. de C.V. (Mexico), 3.25%, 02/25/2031(b)

      200,000        161,200  

 

  

Unigel Luxembourg S.A. (Brazil), 8.75%, 10/01/2026(b)

      400,000        379,572  

 

  
        540,772  

 

  

Computer & Electronics Retail–0.12%

 

Leidos, Inc.,

      

2.30%, 02/15/2031

      900,000        702,216  

 

  

5.75%, 03/15/2033

      4,834,000        4,776,691  

 

  
        5,478,907  

 

  

Construction & Engineering–0.02%

 

Bioceanico Sovereign Certificate Ltd. (Paraguay), 0.00%, 06/05/2034(b)(f)

      136,993        95,107  

 

  

Mexico City Airport Trust (Mexico),

 

3.88%, 04/30/2028(b)

      200,000        180,100  

 

  

5.50%, 07/31/2047(b)

      600,000        445,674  

 

  

Rutas 2 and 7 Finance Ltd. (Paraguay), 0.00%, 09/30/2036(b)(f)

      224,000        142,020  

 

  
        862,901  

 

  

Consumer Finance–0.43%

 

Ally Financial, Inc., 2.20%, 11/02/2028

      542,000        442,012  

 

  

American Express Co.,

      

2.55%, 03/04/2027

      580,000        525,341  

 

  

4.42%, 08/03/2033(d)

      2,683,000        2,511,834  

 

  

Capital One Financial Corp., 5.27%, 05/10/2033(c)(d)

      1,100,000        1,042,565  

 

  

Synchrony Financial,

      

4.50%, 07/23/2025

      670,000        645,575  

 

  

7.25%, 02/02/2033

      15,055,000        14,507,825  

 

  
        19,675,152  

 

  

Copper–0.12%

 

Freeport-McMoRan, Inc.,

      

5.00%, 09/01/2027

      1,482,000        1,442,373  

 

  

5.40%, 11/14/2034(c)

      385,000        362,966  

 

  

PT Freeport Indonesia (Indonesia),

      

4.76%, 04/14/2027(b)

      217,000        209,309  

 

  

5.32%, 04/14/2032(b)

      3,845,000        3,555,513  

 

  
        5,570,161  

 

  

Data Processing & Outsourced Services–0.13%

 

Clarivate Science Holdings Corp., 3.88%, 07/01/2028(b)

      4,727,000        4,083,409  

 

  

PayPal Holdings, Inc., 5.05%, 06/01/2052(c)

      2,303,000        2,099,458  

 

  
        6,182,867  

 

  
 

 

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

 

5   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Department Stores–0.01%

      

Falabella S.A. (Chile), 3.75%, 10/30/2027(b)

    $ 200,000      $ 177,142  

 

  

Macy’s Retail Holdings LLC, 6.13%, 03/15/2032(b)

      150,000        129,186  

 

  
        306,328  

 

  

Distributors–0.01%

 

   

Genuine Parts Co., 2.75%, 02/01/2032(c)

      331,000        267,808  

 

  

Diversified Banks–7.58%

 

   

Africa Finance Corp. (Supranational), 4.38%, 04/17/2026(b)

      20,285,000        19,031,995  

 

  

African Export-Import Bank (The) (Supranational),

      

2.63%, 05/17/2026(b)

      3,237,000        2,903,887  

 

  

3.80%, 05/17/2031(b)

      4,227,000        3,501,216  

 

  

Australia and New Zealand Banking Group Ltd. (Australia),

      

6.74%, 12/08/2032(b)

      5,342,000        5,527,303  

 

  

6.75%(b)(d)(e)

      4,642,000        4,613,382  

 

  

Banco de Bogota S.A. (Colombia), 4.38%, 08/03/2027(b)

      400,000        365,556  

 

  

Banco do Brasil S.A. (Brazil), 3.25%, 09/30/2026(b)

      4,474,000        4,075,814  

 

  

Banco GNB Sudameris S.A. (Colombia), 7.50%,
04/16/2031(b)(d)

      200,000        167,869  

 

  

Banco Nacional de Panama (Panama), 2.50%, 08/11/2030(b)

      215,000        171,317  

 

  

Bank of America Corp.,

      

5.62% (SOFR + 1.05%), 02/04/2028(g)

      4,065,000        4,041,949  

 

  

4.38%, 04/27/2028(d)

      2,283,000        2,183,831  

 

  

4.95%, 07/22/2028(c)(d)

      3,303,000        3,232,239  

 

  

2.69%, 04/22/2032(d)

      551,000        447,099  

 

  

2.57%, 10/20/2032(d)

      404,000        321,844  

 

  

2.97%, 02/04/2033(d)

      513,000        420,073  

 

  

4.57%, 04/27/2033(d)

      3,498,000        3,253,311  

 

  

5.02%, 07/22/2033(c)(d)

      5,005,000        4,817,666  

 

  

2.48%, 09/21/2036(d)

      919,000        689,010  

 

  

3.85%, 03/08/2037(d)

      515,000        434,900  

 

  

Series TT, 6.13%(c)(d)(e)

      7,827,000        7,649,327  

 

  

Bank of Nova Scotia (The) (Canada), 8.63%, 10/27/2082(c)(d)

      7,166,000        7,576,129  

 

  

Barclays PLC (United Kingdom),

      

4.84%, 05/09/2028

      600,000        562,588  

 

  

7.44%, 11/02/2033(d)

      6,957,000        7,516,677  

 

  

8.00%(d)(e)

      8,981,000        8,825,629  

 

  

BNP Paribas S.A. (France), 4.38%, 03/01/2033(b)(c)(d)

      600,000        544,962  

 

  

BPCE S.A. (France),

      

5.98%, 01/18/2027(b)(d)

      5,964,000        5,960,203  

 

  

2.28%, 01/20/2032(b)(d)

      447,000        342,671  

 

  
     Principal
Amount		      Value  

 

  

Diversified Banks–(continued)

 

Citigroup, Inc.,

      

5.24% (SOFR + 0.69%), 01/25/2026(c)(g)

    $ 942,000      $ 934,702  

 

  

4.66%, 05/24/2028(c)(d)

      2,111,000        2,042,954  

 

  

2.57%, 06/03/2031(d)

      651,000        534,282  

 

  

3.79%, 03/17/2033(d)

      1,552,000        1,350,389  

 

  

4.91%, 05/24/2033(d)

      2,401,000        2,276,894  

 

  

3.88%(c)(d)(e)

      12,654,000        11,387,335  

 

  

7.38%(d)(e)

      15,736,000        15,956,304  

 

  

Series A, 8.87% (3 mo. USD LIBOR + 4.07%)(e)(g)

      2,199,000        2,216,592  

 

  

Commonwealth Bank of Australia (Australia), 2.69%, 03/11/2031(b)

      525,000        413,948  

 

  

Cooperatieve Rabobank U.A. (Netherlands), 3.76%,
04/06/2033(b)(d)

      1,203,000        1,047,349  

 

  

Export-Import Bank of India (India), 3.38%, 08/05/2026(b)

      200,000        186,364  

 

  

Federation des caisses Desjardins du Quebec (Canada),

      

5.28%, 01/23/2026(b)(d)

      2,180,000        2,164,064  

 

  

4.55%, 08/23/2027(b)(c)

      7,367,000        7,172,623  

 

  

HSBC Holdings PLC (United Kingdom),

      

5.78% (SOFR + 1.43%), 03/10/2026(g)

      2,863,000        2,875,280  

 

  

5.21%, 08/11/2028(d)

      3,574,000        3,497,152  

 

  

2.36%, 08/18/2031(d)

      288,000        227,653  

 

  

2.87%, 11/22/2032(d)

      790,000        626,391  

 

  

5.40%, 08/11/2033(d)

      5,867,000        5,627,870  

 

  

8.11%, 11/03/2033(d)

      7,295,000        8,058,643  

 

  

8.00%(d)(e)

      10,066,000        10,055,934  

 

  

ING Groep N.V. (Netherlands),
3.88%(d)(e)

      508,000        392,481  

 

  

Israel Discount Bank Ltd. (Israel),
5.38%, 01/26/2028(b)

      400,000        396,000  

 

  

JPMorgan Chase & Co.,

      

5.71% (3 mo. USD LIBOR + 0.89%), 07/23/2024(g)

      3,080,000        3,085,765  

 

  

4.32%, 04/26/2028(d)

      2,248,000        2,156,243  

 

  

4.85%, 07/25/2028(c)(d)

      3,509,000        3,427,715  

 

  

2.96%, 05/13/2031(d)

      300,000        252,191  

 

  

4.59%, 04/26/2033(d)

      2,499,000        2,330,659  

 

  

4.91%, 07/25/2033(c)(d)

      5,386,000        5,159,608  

 

  

5.72%, 09/14/2033(d)

      8,730,000        8,680,214  

 

  

Series W, 5.86% (3 mo. USD LIBOR + 1.00%), 05/15/2047(g)

      2,058,000        1,744,155  

 

  

KeyBank N.A., 4.90%, 08/08/2032

      5,185,000        4,883,841  

 

  

Lloyds Banking Group PLC (United Kingdom), 4.98%, 08/11/2033(d)

      357,000        332,913  

 

  

Manufacturers & Traders Trust Co., 4.70%, 01/27/2028

      6,359,000        6,174,865  

 

  

Mitsubishi UFJ Financial Group, Inc. (Japan), 1.80%, 07/20/2033(d)

      4,168,000        4,028,368  

 

  
 

 

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

 

6   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Diversified Banks–(continued)

 

Mizuho Financial Group, Inc. (Japan), 5.67%, 09/13/2033(c)(d)

    $ 5,771,000      $ 5,782,273  

 

  

Multibank, Inc. (Panama), 7.75%, 02/03/2028(b)

      6,576,000        6,696,998  

 

  

National Australia Bank Ltd. (Australia),

      

2.33%, 08/21/2030(b)

      632,000        492,742  

 

  

6.43%, 01/12/2033(b)

      5,303,000        5,364,818  

 

  

National Bank of Oman SAOG (Oman), 5.63%, 09/25/2023(b)

      400,000        399,506  

 

  

Natwest Group PLC (United Kingdom), 6.02%, 03/02/2034(d)

      2,488,000        2,493,989  

 

  

Nordea Bank Abp (Finland),

      

4.75%, 09/22/2025(b)(c)

      5,133,000        5,063,346  

 

  

5.38%, 09/22/2027(b)

      2,891,000        2,885,384  

 

  

6.63%(b)(d)(e)

      1,753,000        1,706,165  

 

  

Royal Bank of Canada (Canada), 5.24%(SOFR + 0.71%), 01/21/2027(g)

      2,870,000        2,823,573  

 

  

Shinhan Financial Group Co. Ltd. (South Korea), 3.34%, 02/05/2030(b)(d)

      200,000        189,526  

 

  

Societe Generale S.A. (France), 9.38%(b)(d)(e)

      5,104,000        5,395,949  

 

  

Standard Chartered PLC (United Kingdom),

      

2.68%, 06/29/2032(b)(d)

      3,192,000        2,538,920  

 

  

4.30%(b)(d)(e)

      9,045,000        7,368,057  

 

  

7.75%(b)(d)(e)

      8,153,000        8,132,067  

 

  

7.75%(b)(d)(e)

      11,053,000        11,094,437  

 

  

Sumitomo Mitsui Financial Group, Inc. (Japan),

      

2.14%, 09/23/2030

      496,000        390,621  

 

  

5.77%, 01/13/2033

      14,827,000        14,958,633  

 

  

Swedbank AB (Sweden), 5.34%, 09/20/2027(b)

      3,201,000        3,163,172  

 

  

Synovus Bank, 5.63%, 02/15/2028

      2,319,000        2,281,276  

 

  

Toronto-Dominion Bank (The) (Canada), 8.13%, 10/31/2082(d)

      6,528,000        6,829,920  

 

  

U.S. Bancorp,

      

4.55%, 07/22/2028(c)(d)

      3,502,000        3,407,265  

 

  

4.97%, 07/22/2033(d)

      2,835,000        2,706,314  

 

  

5.85%, 10/21/2033(d)

      5,959,000        6,147,696  

 

  

4.84%, 02/01/2034(c)(d)

      11,231,000        10,756,688  

 

  

2.49%, 11/03/2036(d)

      1,448,000        1,116,247  

 

  

Wells Fargo & Co.,

      

3.53%, 03/24/2028(c)(d)

      542,000        502,124  

 

  

4.81%, 07/25/2028(c)(d)

      2,025,000        1,972,610  

 

  

4.90%, 07/25/2033(d)

      1,988,000        1,899,871  

 

  

4.61%, 04/25/2053(d)

      3,087,000        2,678,441  

 

  

Westpac Banking Corp. (Australia),

      

5.41%, 08/10/2033(c)(d)

      481,000        461,017  

 

  

2.67%, 11/15/2035(d)

      225,000        172,965  

 

  
        348,748,798  

 

  
     Principal
Amount		      Value  

 

  

Diversified Capital Markets–1.37%

 

Credit Suisse AG (Switzerland),

      

7.95%, 01/09/2025(c)

    $ 9,015,000      $ 9,108,438  

 

  

5.00%, 07/09/2027

      6,817,000        6,252,788  

 

  

7.50%, 02/15/2028

      7,916,000        7,998,938  

 

  

Credit Suisse Group AG (Switzerland),

      

6.44%, 08/11/2028(b)(d)

      6,564,000        6,071,985  

 

  

6.54%, 08/12/2033(b)(d)

      2,708,000        2,433,785  

 

  

9.02%, 11/15/2033(b)(d)

      1,564,000        1,643,810  

 

  

4.50%(b)(c)(d)(e)

      7,339,000        4,283,407  

 

  

5.10%(b)(d)(e)

      3,926,000        2,440,598  

 

  

5.25%(b)(d)(e)

      7,968,000        5,509,067  

 

  

7.50%(b)(d)(e)

      6,182,000        5,416,977  

 

  

7.50%(b)(d)(e)

      305,000        278,965  

 

  

9.75%(b)(c)(d)(e)

      7,643,000        6,935,258  

 

  

OWL Rock Core Income Corp., 4.70%, 02/08/2027

      1,551,000        1,417,437  

 

  

UBS Group AG (Switzerland), 4.75%, 05/12/2028(b)(d)

      3,296,000        3,175,188  

 

  
        62,966,641  

 

  

Diversified Chemicals–0.34%

 

Braskem Netherlands Finance B.V. (Brazil),

      

4.50%, 01/31/2030(b)

      200,000        168,717  

 

  

7.25%, 02/13/2033(b)(c)

      5,320,000        5,197,267  

 

  

5.88%, 01/31/2050(b)

      200,000        152,920  

 

  

Celanese US Holdings LLC,

      

5.90%, 07/05/2024

      4,615,000        4,611,514  

 

  

6.05%, 03/15/2025

      4,938,000        4,921,583  

 

  

Equate Petrochemical B.V. (Kuwait), 2.63%, 04/28/2028(b)

      200,000        175,559  

 

  

SABIC Capital II B.V. (Saudi Arabia),

      

4.00%, 10/10/2023(b)

      200,000        198,368  

 

  

4.50%, 10/10/2028(b)

      200,000        195,486  

 

  
        15,621,414  

 

  

Diversified Metals & Mining–0.70%

 

BHP Billiton Finance (USA) Ltd. (Australia),

      

4.88%, 02/27/2026

      10,986,000        10,918,296  

 

  

4.75%, 02/28/2028

      6,770,000        6,690,586  

 

  

4.90%, 02/28/2033

      7,862,000        7,834,699  

 

  

Corp. Nacional del Cobre de Chile (Chile), 5.13%, 02/02/2033(b)

      3,583,000        3,488,226  

 

  

FMG Resources August 2006 Pty. Ltd. (Australia), 4.38%, 04/01/2031(b)(c)

      3,913,000        3,306,039  

 

  

Minera Mexico S.A. de C.V. (Mexico), 4.50%, 01/26/2050(b)

      200,000        150,293  

 

  
        32,388,139  

 

  

Diversified REITs–0.41%

 

CubeSmart L.P., 2.50%, 02/15/2032

      476,000        372,322  

 

  

Trust Fibra Uno (Mexico),

      

5.25%, 12/15/2024(b)

      325,000        318,836  

 

  

5.25%, 01/30/2026(b)

      7,067,000        6,748,738  

 

  

4.87%, 01/15/2030(b)

      3,434,000        2,929,202  

 

  

6.39%, 01/15/2050(b)

      3,343,000        2,613,662  

 

  
 

 

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

 

7   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Diversified REITs–(continued)

      

VICI Properties L.P.,

      

4.75%, 02/15/2028

    $ 2,811,000      $ 2,654,231  

 

  

4.95%, 02/15/2030

      2,811,000        2,626,901  

 

  

5.13%, 05/15/2032

      500,000        464,375  

 

  
        18,728,267  

 

  

Education Services–0.23%

      

Grand Canyon University, 3.25%, 10/01/2023

      7,113,500        7,024,581  

 

  

Johns Hopkins University (The), Series A, 4.71%, 07/01/2032(c)

      3,488,000        3,484,177  

 

  
        10,508,758  

 

  

Electric Utilities–1.98%

      

AEP Texas, Inc.,

      

4.70%, 05/15/2032(c)

      1,154,000        1,095,518  

 

  

5.25%, 05/15/2052

      1,681,000        1,599,609  

 

  

Alfa Desarrollo S.p.A. (Chile), 4.55%, 09/27/2051(b)

      6,887,800        5,055,645  

 

  

American Electric Power Co., Inc.,

      

5.75%, 11/01/2027(c)

      3,356,000        3,434,585  

 

  

5.95%, 11/01/2032

      2,580,000        2,663,174  

 

  

3.88%, 02/15/2062(d)

      2,526,000        2,119,144  

 

  

Centrais Eletricas Brasileiras S.A. (Brazil), 3.63%, 02/04/2025(b)

      200,000        187,085  

 

  

CLP Power Hong Kong Financing Ltd. (Hong Kong), 3.13%, 05/06/2025(b)

      200,000        190,496  

 

  

Connecticut Light and Power Co. (The), 5.25%, 01/15/2053

      2,596,000        2,599,453  

 

  

Consolidated Edison Co. of New York, Inc., 6.15%, 11/15/2052

      1,523,000        1,631,407  

 

  

Drax Finco PLC (United Kingdom), 6.63%, 11/01/2025(b)

      6,116,000        6,015,942  

 

  

Duke Energy Carolinas LLC,

      

4.95%, 01/15/2033

      5,284,000        5,207,656  

 

  

5.35%, 01/15/2053

      4,764,000        4,703,030  

 

  

Duke Energy Corp.,

      

5.00%, 12/08/2027

      1,803,000        1,790,486  

 

  

4.30%, 03/15/2028

      1,410,000        1,347,560  

 

  

5.00%, 08/15/2052

      4,091,000        3,643,522  

 

  

3.25%, 01/15/2082(d)

      360,000        286,056  

 

  

Electricite de France S.A. (France), 4.88%, 09/21/2038(b)

      550,000        475,871  

 

  

Empresa de Transmision Electrica S.A. (Panama), 5.13%, 05/02/2049(b)

      200,000        162,200  

 

  

Enel Finance America LLC (Italy), 7.10%, 10/14/2027(b)(c)

      1,691,000        1,776,528  

 

  

Enel Finance International N.V. (Italy), 6.80%, 10/14/2025(b)

      3,692,000        3,787,284  

 

  

Eversource Energy, Series R, 1.65%, 08/15/2030

      213,000        164,429  

 

  

Exelon Corp., 5.60%, 03/15/2053

      5,130,000        5,015,969  

 

  

Greenko Power II Ltd. (India), 4.30%, 12/13/2028(b)

      191,000        162,559  

 

  
     Principal
Amount		      Value  

 

  

Electric Utilities–(continued)

      

Israel Electric Corp. Ltd. (The) (Israel), 4.25%, 08/14/2028(b)

    $ 200,000      $ 186,918  

 

  

Kallpa Generacion S.A. (Peru), 4.13%, 08/16/2027(b)

      200,000        183,900  

 

  

Mercury Chile Holdco LLC (Chile), 6.50%, 01/24/2027(b)

      6,181,000        5,933,760  

 

  

NextEra Energy Capital Holdings, Inc.,

      

6.05%, 03/01/2025

      5,205,000        5,239,475  

 

  

4.63%, 07/15/2027

      4,269,000        4,152,131  

 

  

5.00%, 07/15/2032

      1,497,000        1,442,408  

 

  

PacifiCorp, 5.35%, 12/01/2053

      11,795,000        11,655,957  

 

  

PT Perusahaan Perseroan (Persero) Perusahaan Listrik Negara (Indonesia),

      

5.45%, 05/21/2028(b)

      200,000        197,927  

 

  

3.38%, 02/05/2030(b)

      200,000        171,753  

 

  

Southern Co. (The), 5.70%, 10/15/2032

      2,593,000        2,636,595  

 

  

State Grid Overseas Investment BVI Ltd. (China), 3.50%, 05/04/2027(b)

      200,000        191,002  

 

  

Tampa Electric Co., 5.00%, 07/15/2052

      1,437,000        1,334,433  

 

  

Virginia Electric & Power Co.,

      

Series B, 3.75%, 05/15/2027

      743,000        705,993  

 

  

Series C, 4.63%, 05/15/2052

      2,106,000        1,854,476  

 

  

Vistra Operations Co. LLC, 4.38%, 05/01/2029(b)

      172,000        148,787  

 

  
        91,150,723  

 

  

Electrical Components & Equipment–0.49%

 

CenterPoint Energy Houston Electric LLC,

      

Series AI, 4.45%, 10/01/2032

      3,479,000        3,339,184  

 

  

Series AJ, 4.85%, 10/01/2052

      3,385,000        3,224,120  

 

  

Regal Rexnord Corp.,

      

6.05%, 04/15/2028(b)

      6,763,000        6,616,370  

 

  

6.30%, 02/15/2030(b)

      3,181,000        3,114,590  

 

  

6.40%, 04/15/2033(b)

      4,352,000        4,286,595  

 

  

Sensata Technologies B.V., 5.88%, 09/01/2030(b)(c)

      2,099,000        1,992,698  

 

  
        22,573,557  

 

  

Electronic Components–0.01%

      

Corning, Inc., 5.45%, 11/15/2079

      437,000        388,236  

 

  

Electronic Equipment & Instruments–0.14%

 

Trimble, Inc., 6.10%, 03/15/2033

      5,419,000        5,407,864  

 

  

Vontier Corp.,

      

2.40%, 04/01/2028

      796,000        652,959  

 

  

2.95%, 04/01/2031

      406,000        309,681  

 

  
        6,370,504  

 

  

Environmental & Facilities Services–0.07%

 

Clean Harbors, Inc., 6.38%, 02/01/2031(b)

      3,452,000        3,431,475  

 

  
 

 

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

 

8   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Financial Exchanges & Data–0.41%

 

B3 S.A. - Brasil, Bolsa, Balcao (Brazil), 4.13%, 09/20/2031(b)

    $ 8,258,000      $ 6,852,076  

 

  

Cboe Global Markets, Inc., 3.00%, 03/16/2032

      1,439,000        1,217,958  

 

  

Intercontinental Exchange, Inc.,

      

4.00%, 09/15/2027

      1,640,000        1,596,460  

 

  

4.35%, 06/15/2029(c)

      1,263,000        1,224,612  

 

  

4.60%, 03/15/2033(c)

      2,028,000        1,936,971  

 

  

4.95%, 06/15/2052

      2,782,000        2,639,406  

 

  

5.20%, 06/15/2062

      2,107,000        2,074,690  

 

  

Moody’s Corp., 4.25%, 08/08/2032(c)

      1,275,000        1,180,982  

 

  
        18,723,155  

 

  

Food Distributors–0.08%

      

American Builders & Contractors Supply Co., Inc., 3.88%, 11/15/2029(b)

      4,486,000        3,705,840  

 

  

Forest Products–0.01%

 

Celulosa Arauco y Constitucion S.A. (Chile),

      

4.50%, 08/01/2024

      500,000        491,152  

 

  

5.15%, 01/29/2050(b)

      200,000        167,439  

 

  
        658,591  

 

  

Gas Utilities–0.01%

 

Infraestructura Energetica Nova, S.A.P.I. de C.V. (Mexico), 4.88%, 01/14/2048(b)

      400,000        302,532  

 

  

Promigas S.A. ESP / Gases del Pacifico SAC (Colombia), 3.75%, 10/16/2029(b)

      400,000        311,592  

 

  
        614,124  

 

  

General Merchandise Stores–0.37%

 

Dollar General Corp.,

      

4.63%, 11/01/2027

      1,757,000        1,716,172  

 

  

5.00%, 11/01/2032

      1,552,000        1,506,468  

 

  

5.50%, 11/01/2052(c)

      3,098,000        3,031,894  

 

  

Target Corp.,

      

4.40%, 01/15/2033(c)

      6,931,000        6,577,061  

 

  

4.80%, 01/15/2053

      4,330,000        4,049,308  

 

  
        16,880,903  

 

  

Gold–0.00%

 

Endeavour Mining PLC (Burkina Faso), 5.00%, 10/14/2026(b)

      200,000        169,380  

 

  

Health Care Equipment–0.19%

 

Alcon Finance Corp. (Switzerland),

      

5.38%, 12/06/2032(b)

      2,741,000        2,754,260  

 

  

5.75%, 12/06/2052(b)

      2,322,000        2,362,315  

 

  

Becton, Dickinson and Co., 4.69%, 02/13/2028

      3,199,000        3,128,740  

 

  

Teleflex, Inc., 4.63%, 11/15/2027

      385,000        363,479  

 

  
        8,608,794  

 

  

Health Care Facilities–0.08%

 

Tenet Healthcare Corp., 6.13%, 06/15/2030(b)

      3,790,000        3,615,309  

 

  
     Principal
Amount		      Value  

 

  

Health Care REITs–0.03%

 

Omega Healthcare Investors, Inc.,

      

3.38%, 02/01/2031

    $ 514,000      $ 405,697  

 

  

3.25%, 04/15/2033

      512,000        366,494  

 

  

Welltower OP LLC, 3.10%, 01/15/2030

      600,000        513,196  

 

  
        1,285,387  

 

  

Health Care Services–0.29%

 

Piedmont Healthcare, Inc.,

      

Series 2032, 2.04%, 01/01/2032

      3,347,000        2,635,773  

 

  

Series 2042, 2.72%, 01/01/2042

      3,229,000        2,235,886  

 

  

2.86%, 01/01/2052

      3,690,000        2,412,840  

 

  

Providence St. Joseph Health Obligated Group, Series 21-A, 2.70%, 10/01/2051

      9,831,000        5,855,895  

 

  
        13,140,394  

 

  

Health Care Supplies–0.01%

 

Medline Borrower L.P., 3.88%, 04/01/2029(b)

      624,000        520,650  

 

  

Highways & Railtracks–0.02%

 

TransJamaican Highway Ltd. (Jamaica), 5.75%, 10/10/2036(b)

      1,270,813        1,078,921  

 

  

Home Improvement Retail–0.33%

 

Home Depot, Inc. (The), 4.95%, 09/15/2052(c)

      2,244,000        2,157,632  

 

  

Lowe’s Cos., Inc.,

      

5.00%, 04/15/2033(c)

      8,258,000        7,953,011  

 

  

5.80%, 09/15/2062

      5,144,000        4,975,419  

 

  
        15,086,062  

 

  

Homebuilding–0.03%

 

M.D.C. Holdings, Inc.,

      

3.85%, 01/15/2030

      637,000        531,245  

 

  

3.97%, 08/06/2061

      1,190,000        686,491  

 

  
        1,217,736  

 

  

Hotel & Resort REITs–0.02%

 

Host Hotels & Resorts L.P., Series F, 4.50%, 02/01/2026

      620,000        598,163  

 

  

Service Properties Trust, 4.95%, 02/15/2027(c)

      565,000        487,668  

 

  
        1,085,831  

 

  

Hotels, Resorts & Cruise Lines–0.01%

 

Carnival Corp., 5.75%, 03/01/2027(b)

      655,000        539,602  

 

  

Housewares & Specialties–0.01%

 

Newell Brands, Inc., 6.38%, 09/15/2027

      350,000        348,497  

 

  

Hypermarkets & Super Centers–0.10%

 

Walmart, Inc.,

      

4.15%, 09/09/2032(c)

      2,311,000        2,229,002  

 

  

4.50%, 09/09/2052(c)

      2,590,000        2,443,487  

 

  
        4,672,489  

 

  
 

 

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

 

9   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

Independent Power Producers & Energy Traders–0.37%

 

AES Panama Generation Holdings S.R.L. (Panama), 4.38%, 05/31/2030(b)

    $ 200,000      $ 174,994  

 

  

Calpine Corp., 3.75%,
03/01/2031(b)(c)

      5,201,000        4,227,586  

 

  

Colbun S.A. (Chile), 3.95%, 10/11/2027(b)

      200,000        186,100  

 

  

Emirates SembCorp Water & Power Co. PJSC (United Arab Emirates), 4.45%, 08/01/2035(b)

      200,000        192,750  

 

  

EnfraGen Energia Sur S.A./EnfraGen Spain S.A./Prime Energia S.p.A. (Colombia),

      

5.38%, 12/30/2030(b)

      650,000        416,202  

 

  

5.38%, 12/30/2030(b)

      11,848,000        7,586,393  

 

  

Vistra Corp., 7.00%(b)(d)(e)

      4,491,000        4,205,440  

 

  
        16,989,465  

 

  

Industrial Conglomerates–0.35%

 

Alfa S.A.B. de C.V. (Mexico), 5.25%, 03/25/2024(b)

      302,000        302,006  

 

  

Bidvest Group UK PLC (The) (South Africa), 3.63%, 09/23/2026(b)

      5,946,000        5,321,908  

 

  

Honeywell International, Inc., 5.00%, 02/15/2033(c)

      10,259,000        10,374,498  

 

  
        15,998,412  

 

  

Industrial Machinery–0.02%

 

Flowserve Corp., 2.80%, 01/15/2032

      782,000        602,821  

 

  

HTA Group Ltd. (Tanzania), 7.00%, 12/18/2025(b)

      200,000        190,660  

 

  
        793,481  

 

  

Industrial REITs–0.13%

 

Cibanco S.A. Ibm/PLA Administradora Industrial S de RL de C.V. (Mexico), 4.96%, 07/18/2029(b)

      200,000        185,700  

 

  

Prologis L.P., 4.63%, 01/15/2033(c)

      6,010,000        5,822,183  

 

  
        6,007,883  

 

  

Insurance Brokers–0.37%

 

Aon Corp./Aon Global Holdings PLC, 5.35%, 02/28/2033

      2,983,000        2,983,882  

 

  

Arthur J. Gallagher & Co.,

      

5.50%, 03/02/2033

      4,505,000        4,505,953  

 

  

5.75%, 03/02/2053

      7,507,000        7,478,072  

 

  

Marsh & McLennan Cos., Inc., 6.25%, 11/01/2052

      1,687,000        1,875,326  

 

  
        16,843,233  

 

  

Integrated Oil & Gas–0.74%

 

BP Capital Markets America, Inc.,

      

4.81%, 02/13/2033(c)

      10,161,000        9,984,922  

 

  

3.06%, 06/17/2041

      513,000        380,027  

 

  

BP Capital Markets PLC (United Kingdom), 4.38%(d)(e)

      749,000        715,963  

 

  

Ecopetrol S.A. (Colombia), 4.63%, 11/02/2031

      136,000        101,524  

 

  
     Principal         
     Amount      Value  

 

  

Integrated Oil & Gas–(continued)

 

Gray Oak Pipeline LLC, 2.60%, 10/15/2025(b)

    $ 648,000      $ 586,731  

 

  

Petroleos Mexicanos (Mexico),

      

8.75%, 06/02/2029(c)

      11,641,000        10,950,043  

 

  

5.95%, 01/28/2031

      400,000        306,891  

 

  

6.70%, 02/16/2032

      7,361,000        5,858,519  

 

  

10.00%, 02/07/2033(b)

      4,260,000        4,108,344  

 

  

Qatar Energy (Qatar), 3.13%, 07/12/2041(b)

      200,000        152,480  

 

  

SA Global Sukuk Ltd. (Saudi Arabia), 0.95%, 06/17/2024(b)

      200,000        189,089  

 

  

Saudi Arabian Oil Co. (Saudi Arabia), 3.50%, 04/16/2029(b)

      200,000        183,036  

 

  

Shell International Finance B.V. (Netherlands), 3.00%, 11/26/2051

      708,000        490,686  

 

  
        34,008,255  

 

  

Integrated Telecommunication Services–0.42%

 

British Telecommunications PLC (United Kingdom), 4.25%, 11/23/2081(b)(d)

      10,020,000        8,824,013  

 

  

IHS Holding Ltd. (Nigeria),

      

5.63%, 11/29/2026(b)

      4,630,000        3,967,910  

 

  

6.25%, 11/29/2028(b)

      3,440,000        2,833,700  

 

  

Sitios Latinoamerica S.A.B. de C.V. (Mexico), 5.38%, 04/04/2032(b)(c)

      4,137,000        3,663,313  

 

  
        19,288,936  

 

  

Interactive Home Entertainment–0.10%

 

Roblox Corp., 3.88%, 05/01/2030(b)(c)

      5,880,000        4,839,299  

 

  

Interactive Media & Services–0.32%

      

Baidu, Inc. (China), 4.13%, 06/30/2025

      200,000        193,140  

 

  

Globo Comunicacao e Participacoes S.A. (Brazil), 5.50%, 01/14/2032(b)

      300,000        245,192  

 

  

Match Group Holdings II LLC,

      

5.63%, 02/15/2029(b)

      5,956,000        5,492,549  

 

  

3.63%, 10/01/2031(b)

      120,000        94,008  

 

  

Meta Platforms, Inc.,

      

3.85%, 08/15/2032(c)

      1,607,000        1,444,736  

 

  

4.45%, 08/15/2052

      3,578,000        2,969,471  

 

  

4.65%, 08/15/2062

      4,575,000        3,804,774  

 

  

Telecomunicaciones Digitales S.A. (Panama), 4.50%, 01/30/2030(b)

      200,000        163,189  

 

  

Weibo Corp. (China), 3.38%, 07/08/2030

      200,000        160,844  

 

  
        14,567,903  

 

  

Internet & Direct Marketing Retail–0.12%

 

Alibaba Group Holding Ltd. (China),

      

4.00%, 12/06/2037

      400,000        331,418  

 

  

4.20%, 12/06/2047

      600,000        468,744  

 

  

Prosus N.V. (China),

      

3.26%, 01/19/2027(b)

      4,761,000        4,237,118  

 

  

3.06%, 07/13/2031(b)

      200,000        153,649  

 

  

4.19%, 01/19/2032(b)

      200,000        164,586  

 

  
 

 

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

 

10   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

Internet & Direct Marketing Retail–(continued)

 

QVC, Inc., 5.45%, 08/15/2034

    $ 180,000      $ 89,907  

 

  
        5,445,422  

 

  

Internet Services & Infrastructure–0.09%

 

Twilio, Inc.,

      

3.63%, 03/15/2029

      2,933,000        2,466,773  

 

  

3.88%, 03/15/2031(c)

      2,091,000        1,714,254  

 

  
        4,181,027  

 

  

Investment Banking & Brokerage–0.96%

 

Brookfield Finance I UK PLC/Brookfield Finance, Inc. (Canada), 2.34%, 01/30/2032

      454,000        355,813  

 

  

Brookfield Finance, Inc. (Canada), 2.72%, 04/15/2031

      507,000        413,475  

 

  

Charles Schwab Corp. (The),

      

5.63% (SOFR + 1.05%), 03/03/2027(g)

      2,538,000        2,543,685  

 

  

2.90%, 03/03/2032(c)

      538,000        455,466  

 

  

Series G, 5.38%(c)(d)(e)

      578,000        572,220  

 

  

Series K, 5.00%(d)(e)

      2,527,000        2,381,697  

 

  

Goldman Sachs Group, Inc. (The),

      

4.94% (SOFR + 0.58%), 03/08/2024(g)

      1,972,000        1,972,228  

 

  

5.24% (SOFR + 0.70%), 01/24/2025(g)

      1,799,000        1,796,751  

 

  

5.16% (SOFR + 0.79%), 12/09/2026(g)

      3,489,000        3,426,227  

 

  

5.18% (SOFR + 0.81%),
03/09/2027(g)

      2,894,000        2,855,904  

 

  

5.46% (SOFR + 0.92%), 10/21/2027(g)

      1,222,000        1,199,564  

 

  

5.70% (SOFR + 1.12%), 02/24/2028(g)

      920,000        912,731  

 

  

3.62%, 03/15/2028(d)

      1,160,000        1,077,133  

 

  

4.48%, 08/23/2028(c)(d)

      1,617,000        1,550,578  

 

  

2.62%, 04/22/2032(d)

      566,000        454,861  

 

  

2.65%, 10/21/2032(d)

      482,000        384,591  

 

  

Series T, 3.80%(d)(e)

      378,000        324,887  

 

  

Series V, 4.13%(c)(d)(e)

      4,136,000        3,556,960  

 

  

JAB Holdings B.V. (Austria), 4.50%, 04/08/2052(b)

      5,665,000        4,144,247  

 

  

Jefferies Financial Group, Inc., 4.15%, 01/23/2030

      335,000        303,075  

 

  

Morgan Stanley,

      

5.18% (SOFR + 0.63%), 01/24/2025(g)

      1,241,000        1,238,596  

 

  

5.12%, 02/01/2029(c)(d)

      3,241,000        3,183,954  

 

  

5.95%, 01/19/2038(d)

      2,605,000        2,547,179  

 

  

National Securities Clearing Corp., 5.10%, 11/21/2027(b)

      6,483,000        6,477,682  

 

  
        44,129,504  

 

  

IT Consulting & Other Services–0.01%

 

DXC Technology Co., 2.38%, 09/15/2028

      514,000        430,691  

 

  

Leisure Products–0.08%

 

Brunswick Corp., 5.10%, 04/01/2052

      5,380,000        3,917,357  

 

  
     Principal         
     Amount      Value  

 

  

Life & Health Insurance–2.36%

 

American Equity Investment Life Holding Co., 5.00%, 06/15/2027

    $ 1,375,000      $ 1,350,679  

 

  

Athene Global Funding, 1.45%, 01/08/2026(b)(c)

      447,000        393,076  

 

  

Athene Holding Ltd.,

      

4.13%, 01/12/2028(c)

      850,000        795,877  

 

  

6.15%, 04/03/2030

      695,000        702,726  

 

  

Delaware Life Global Funding,

      

Series 22-1, 3.31%, 03/10/2025(b)

      11,863,000        11,083,126  

 

  

Series 21-1, 2.66%, 06/29/2026(b)

      31,380,000        27,965,856  

 

  

F&G Annuities & Life, Inc., 7.40%, 01/13/2028(b)

      5,743,000        5,749,261  

 

  

GA Global Funding Trust, 2.90%, 01/06/2032(b)

      2,010,000        1,592,663  

 

  

Lincoln National Corp., Series C, 9.25%(c)(d)(e)

      3,229,000        3,537,046  

 

  

MAG Mutual Holding Co., 4.75%, 04/30/2041(h)

      27,101,000        23,296,530  

 

  

MetLife, Inc.,

      

5.00%, 07/15/2052

      1,312,000        1,259,022  

 

  

5.25%, 01/15/2054

      8,536,000        8,366,496  

 

  

Series D, 5.88%(d)(e)

      200,000        193,540  

 

  

New York Life Global Funding, 4.55%, 01/28/2033(b)

      6,628,000        6,386,360  

 

  

Pacific Life Global Funding II,

      

5.28% (SOFR + 0.80%), 03/30/2025(b)(g)

      7,760,000        7,747,017  

 

  

5.20% (SOFR + 0.62%), 06/04/2026(b)(g)

      2,471,000        2,407,712  

 

  

Prudential Financial, Inc.,

      

5.63%, 06/15/2043(d)

      600,000        598,110  

 

  

6.00%, 09/01/2052(c)(d)

      4,049,000        3,905,921  

 

  

Sammons Financial Group, Inc., 4.75%, 04/08/2032(b)

      1,500,000        1,268,448  

 

  
        108,599,466  

 

  

Life Sciences Tools & Services–0.00%

 

Auna S.A.A. (Peru), 6.50%, 11/20/2025(b)

      200,000        166,055  

 

  

Managed Health Care–0.73%

 

Centene Corp., 2.50%, 03/01/2031

      2,398,000        1,871,675  

 

  

Kaiser Foundation Hospitals,

      

Series 2021, 2.81%, 06/01/2041

      7,405,000        5,438,118  

 

  

3.00%, 06/01/2051

      7,725,000        5,378,903  

 

  

UnitedHealth Group, Inc.,

      

3.70%, 05/15/2027(c)

      651,000        621,304  

 

  

5.25%, 02/15/2028(c)

      4,797,000        4,864,684  

 

  

5.30%, 02/15/2030(c)

      8,155,000        8,279,808  

 

  

5.35%, 02/15/2033(c)

      7,012,000        7,177,987  

 

  
        33,632,479  

 

  

Marine Ports & Services–0.00%

 

DP World Ltd. (United Arab Emirates), 6.85%, 07/02/2037(b)

      200,000        223,171  

 

  
 

 

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

 

11   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

Movies & Entertainment–0.26%

 

Walt Disney Co. (The), 6.55%, 03/15/2033

    $ 59,000      $ 65,253  

 

  

Warnermedia Holdings, Inc.,

      

4.28%, 03/15/2032(b)(c)

      590,000        509,671  

 

  

5.05%, 03/15/2042(b)

      5,139,000        4,166,968  

 

  

5.14%, 03/15/2052(b)

      3,637,000        2,853,452  

 

  

5.39%, 03/15/2062(b)

      5,634,000        4,399,529  

 

  
        11,994,873  

 

  

Multi-line Insurance–0.06%

      

Allianz SE (Germany), 3.20%(b)(d)(e)

      1,319,000        995,428  

 

  

Massachusetts Mutual Life Insurance Co., 5.67%, 12/01/2052(b)

      1,680,000        1,702,098  

 

  
        2,697,526  

 

  

Multi-Sector Holdings–0.01%

      

SURA Asset Management S.A. (Colombia), 4.88%, 04/17/2024(b)

      300,000        295,971  

 

  

Multi-Utilities–0.36%

      

Abu Dhabi National Energy Co. PJSC (United Arab Emirates), 4.88%, 04/23/2030(b)

      200,000        201,782  

 

  

Ameren Illinois Co., 5.90%, 12/01/2052

      1,777,000        1,932,436  

 

  

Dominion Energy, Inc.,

      

Series C, 2.25%, 08/15/2031

      787,000        622,874  

 

  

5.38%, 11/15/2032(c)

      7,628,000        7,493,326  

 

  

WEC Energy Group, Inc.,

      

5.15%, 10/01/2027

      3,463,000        3,447,357  

 

  

4.75%, 01/15/2028

      2,743,000        2,689,639  

 

  
        16,387,414  

 

  

Office REITs–0.44%

 

Alexandria Real Estate Equities, Inc.,

      

1.88%, 02/01/2033(c)

      667,000        495,282  

 

  

2.95%, 03/15/2034

      206,000        166,115  

 

  

4.75%, 04/15/2035

      1,219,000        1,154,050  

 

  

5.15%, 04/15/2053

      3,269,000        3,038,587  

 

  

Boston Properties L.P.,

      

2.90%, 03/15/2030

      2,713,000        2,230,271  

 

  

3.25%, 01/30/2031

      1,700,000        1,420,584  

 

  

2.55%, 04/01/2032(c)

      3,400,000        2,603,862  

 

  

2.45%, 10/01/2033(c)

      3,409,000        2,493,154  

 

  

Brandywine Operating Partnership L.P., 7.55%, 03/15/2028

      6,032,000        5,919,569  

 

  

Highwoods Realty L.P., 2.60%, 02/01/2031

      206,000        153,392  

 

  

Office Properties Income Trust,

      

 

  

4.50%, 02/01/2025

      330,000        303,813  

 

  

2.40%, 02/01/2027

      459,000        339,500  

 

  
        20,318,179  

 

  

Oil & Gas Equipment & Services–0.17%

 

Enerflex Ltd. (Canada), 9.00%, 10/15/2027(b)

      3,963,000        3,914,810  

 

  
     Principal         
     Amount      Value  

 

  

Oil & Gas Equipment & Services–(continued)

 

Petrofac Ltd. (United Kingdom), 9.75%, 11/15/2026(b)

    $ 5,848,000      $ 3,794,329  

 

  
        7,709,139  

 

  

Oil & Gas Exploration & Production–0.87%

 

Apache Corp., 7.75%, 12/15/2029

      3,786,000        3,921,836  

 

  

Diamondback Energy, Inc., 6.25%, 03/15/2053(c)

      9,071,000        8,929,106  

 

  

EQT Corp., 5.70%, 04/01/2028

      1,850,000        1,820,186  

 

  

Galaxy Pipeline Assets Bidco Ltd. (United Arab Emirates), 2.94%, 09/30/2040(b)

      9,287,387        7,343,692  

 

  

Genesis Energy L.P./Genesis Energy Finance Corp., 8.88%, 04/15/2030

      2,485,000        2,500,051  

 

  

Gran Tierra Energy, Inc. (Colombia), 7.75%, 05/23/2027(b)

      400,000        327,102  

 

  

Murphy Oil Corp., 6.38%, 07/15/2028(c)

      4,384,000        4,236,351  

 

  

PT Pertamina (Persero) (Indonesia),

      

4.30%, 05/20/2023(b)

      200,000        199,500  

 

  

3.10%, 08/27/2030(b)

      200,000        172,004  

 

  

Sinopec Group Overseas Development (2018) Ltd. (China), 2.95%, 08/08/2029(b)

      200,000        179,694  

 

  

Tengizchevroil Finance Co. International Ltd. (Kazakhstan), 4.00%, 08/15/2026(b)

      200,000        176,910  

 

  

Transocean Titan Financing Ltd., 8.38%, 02/01/2028(b)

      4,013,000        4,099,681  

 

  

Uzbekneftegaz JSC (Uzbekistan), 4.75%, 11/16/2028(b)

      7,487,000        6,242,286  

 

  
        40,148,399  

 

  

Oil & Gas Refining & Marketing–0.00%

 

Puma International Financing S.A. (Singapore), 5.00%, 01/24/2026(b)

      200,000        182,250  

 

  

Oil & Gas Storage & Transportation–1.75%

 

Abu Dhabi Crude Oil Pipeline LLC (United Arab Emirates), 3.65%, 11/02/2029(b)

      200,000        183,296  

 

  

Boardwalk Pipelines L.P., 3.60%, 09/01/2032

      537,000        451,315  

 

  

El Paso Natural Gas Co. LLC, 8.38%, 06/15/2032

      1,099,000        1,253,505  

 

  

Enbridge, Inc. (Canada),

      

7.38%, 01/15/2083(c)(d)

      5,400,000        5,356,800  

7.63%, 01/15/2083(c)(d)

      4,092,000        4,168,725  

 

  

Energy Transfer L.P.,

      

5.55%, 02/15/2028

      1,204,000        1,200,484  

 

  

5.75%, 02/15/2033

      2,897,000        2,853,864  

 

  

Enterprise Products Operating LLC, 5.35%, 01/31/2033

      488,000        488,036  

 

  

GreenSaif Pipelines Bidco S.a.r.l. (Saudi Arabia),

      

6.13%, 02/23/2038(b)

      4,010,000        4,005,897  

 

  

6.51%, 02/23/2042(b)

      5,385,000        5,496,738  

 

  
 

 

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

 

12   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

Oil & Gas Storage & Transportation–(continued)

 

Kinder Morgan, Inc.,

      

7.75%, 01/15/2032

    $ 680,000      $ 759,622  

 

  

4.80%, 02/01/2033

      3,804,000        3,528,249  

 

  

5.20%, 06/01/2033

      7,201,000        6,861,862  

 

  

5.45%, 08/01/2052

      5,970,000        5,338,736  

 

  

MPLX L.P.,

      

4.00%, 03/15/2028

      560,000        524,646  

 

  

5.00%, 03/01/2033

      4,379,000        4,111,601  

 

  

4.95%, 03/14/2052

      3,337,000        2,779,187  

 

  

5.65%, 03/01/2053

      1,637,000        1,509,031  

 

  

NGPL PipeCo LLC, 7.77%, 12/15/2037(b)

      1,304,000        1,412,301  

 

  

ONEOK, Inc.,

      

6.35%, 01/15/2031

      495,000        507,620  

 

  

6.10%, 11/15/2032(c)

      2,232,000        2,245,910  

 

  

Sabine Pass Liquefaction LLC, 5.90%, 09/15/2037(b)

      3,826,000        3,829,377  

 

  

Targa Resources Corp.,

      

5.20%, 07/01/2027

      3,110,000        3,059,902  

 

  

6.25%, 07/01/2052

      2,856,000        2,729,601  

 

  

TMS ISSUER S.a.r.l. (Saudi Arabia), 5.78%, 08/23/2032(b)

      2,210,000        2,251,062  

 

  

Venture Global Calcasieu Pass LLC, 3.88%, 11/01/2033(b)

      4,447,000        3,630,753  

 

  

Williams Cos., Inc. (The),

      

2.60%, 03/15/2031

      1,740,000        1,412,956  

 

  

4.65%, 08/15/2032(c)

      527,000        491,349  

 

  

5.65%, 03/15/2033

      7,868,000        7,869,252  

 

  
        80,311,677  

 

  

Other Diversified Financial Services–0.69%

 

AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), 3.00%, 10/29/2028

      223,000        190,095  

 

  

Arab Petroleum Investments Corp. (Supranational), 4.13%, 09/18/2023(b)

      200,000        198,601  

 

  

Avolon Holdings Funding Ltd. (Ireland), 2.75%, 02/21/2028(b)

      725,000        605,818  

 

  

Blackstone Holdings Finance Co. LLC, 1.60%, 03/30/2031(b)

      189,000        139,595  

 

  

Corebridge Financial, Inc., 6.88%, 12/15/2052(b)(d)

      5,144,000        5,093,525  

 

  

Georgia Capital JSC (Georgia), 6.13%, 03/09/2024(b)

      226,000        221,480  

 

  

Jackson Financial, Inc.,

      

5.17%, 06/08/2027(c)

      1,842,000        1,825,101  

 

  

5.67%, 06/08/2032(c)

      548,000        536,025  

 

  

OPEC Fund for International Development (The) (Supranational), 4.50%, 01/26/2026(b)

      9,425,000        9,293,460  

 

  

Pershing Square Holdings Ltd.,

      

3.25%, 11/15/2030(b)

      8,600,000        6,709,763  

 

  

3.25%, 10/01/2031(b)

      8,800,000        6,668,332  

 

  
     Principal         
     Amount      Value  

 

  

Other Diversified Financial Services–(continued)

 

Peru Enhanced Pass-Through Finance Ltd. (Peru), Class A-2, 0.00%, 06/02/2025(b)(f)

    $ 63,365      $ 58,761  

 

  
        31,540,556  

 

  

Packaged Foods & Meats–0.38%

 

JBS USA LUX S.A./JBS USA Food Co./JBS USA Finance, Inc.,

      

3.75%, 12/01/2031(b)

      49,000        39,322  

 

  

3.63%, 01/15/2032(b)(c)

      2,837,000        2,275,331  

 

  

Minerva Luxembourg S.A. (Brazil), 4.38%, 03/18/2031(b)

      19,316,000        15,184,834  

 

  
        17,499,487  

 

  

Paper Packaging–0.01%

      

Berry Global, Inc., 1.65%, 01/15/2027

      558,000        479,227  

 

  

Paper Products–0.01%

 

Suzano Austria GmbH (Brazil),

      

2.50%, 09/15/2028

      48,000        40,188  

 

  

7.00%, 03/16/2047(b)

      205,000        205,162  

 

  
        245,350  

 

  

Pharmaceuticals–0.49%

      

Eli Lilly and Co.,

      

4.70%, 02/27/2033(c)

      5,977,000        5,947,948  

 

  

4.88%, 02/27/2053

      5,757,000        5,751,850  

 

  

4.95%, 02/27/2063

      6,714,000        6,680,562  

 

  

Mayo Clinic, Series 2021, 3.20%, 11/15/2061

      3,294,000        2,240,277  

 

  

Royalty Pharma PLC, 2.20%, 09/02/2030

      196,000        153,846  

 

  

Zoetis, Inc., 5.40%, 11/14/2025

      1,851,000        1,862,921  

 

  
        22,637,404  

 

  

Precious Metals & Minerals–0.00%

 

ALROSA Finance S.A. (Russia), 4.65%, 04/09/2024(b)(h)(i)

      200,000        0  

 

  

Property & Casualty Insurance–0.08%

 

Fairfax Financial Holdings Ltd. (Canada), 4.63%, 04/29/2030

      700,000        643,813  

 

  

Liberty Mutual Group, Inc., 5.50%, 06/15/2052(b)

      2,888,000        2,711,136  

 

  

Progressive Corp. (The), 2.50%, 03/15/2027

      330,000        300,858  

 

  
        3,655,807  

 

  

Railroads–0.51%

      

Autoridad del Canal de Panama (Panama), 4.95%, 07/29/2035(b)

      300,000        281,912  

 

  

CSX Corp., 4.50%, 11/15/2052

      3,774,000        3,279,970  

 

  

Empresa de los Ferrocarriles del Estado (Chile), 3.83%, 09/14/2061(b)

      5,060,000        3,442,549  

 

  
 

 

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

 

13   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Railroads–(continued)

 

Union Pacific Corp.,

      

4.50%, 01/20/2033

    $ 4,775,000      $ 4,599,643  

 

  

4.95%, 09/09/2052(c)

      6,054,000        5,846,718  

 

  

5.15%, 01/20/2063

      6,195,000        5,967,316  

 

  
        23,418,108  

 

  

Real Estate Development–0.29%

 

Agile Group Holdings Ltd. (China),

      

5.75%, 01/02/2025(b)

      390,000        240,921  

 

  

5.50%, 04/21/2025(b)

      4,142,000        2,498,412  

 

  

6.05%, 10/13/2025(b)

      3,169,000        1,774,342  

 

  

5.50%, 05/17/2026(b)

      786,000        416,282  

 

  

Arabian Centres Sukuk II Ltd. (Saudi Arabia), 5.63%, 10/07/2026(b)

      200,000        185,704  

 

  

Country Garden Holdings Co. Ltd. (China), 5.40%, 05/27/2025(b)

      935,000        664,946  

 

  

Essential Properties L.P., 2.95%, 07/15/2031

      1,330,000        991,585  

 

  

Greentown China Holdings Ltd. (China), 4.70%, 04/29/2025(b)

      1,856,000        1,730,720  

 

  

Logan Group Co. Ltd. (China),

      

4.25%, 07/12/2025(b)

      2,055,000        585,735  

 

  

4.50%, 01/13/2028(b)

      1,750,000        502,731  

 

  

Sino-Ocean Land Treasure Finance I Ltd. (China), 6.00%, 07/30/2024(b)

      2,770,000        2,357,684  

 

  

Sino-Ocean Land Treasure IV Ltd. (China), 3.25%, 05/05/2026(b)

      2,025,000        1,479,400  

 

  
        13,428,462  

 

  

Regional Banks–1.99%

 

Banco Internacional del Peru S.A.A. Interbank (Peru), 3.25%, 10/04/2026(b)

      400,000        365,548  

 

  

Citizens Financial Group, Inc.,

      

5.64%, 05/21/2037(d)

      3,881,000        3,656,926  

 

  

Series G, 4.00%(d)(e)

      6,015,000        5,077,615  

 

  

Fifth Third Bancorp,

      

6.36%, 10/27/2028(d)

      3,878,000        3,997,153  

 

  

4.77%, 07/28/2030(d)

      4,167,000        3,997,011  

 

  

4.34%, 04/25/2033(d)

      1,488,000        1,377,441  

 

  

Huntington Bancshares, Inc.,

      

4.44%, 08/04/2028(d)

      1,210,000        1,156,562  

 

  

2.49%, 08/15/2036(d)

      616,000        453,849  

 

  

KeyCorp, 4.79%, 06/01/2033(c)(d)

      1,510,000        1,416,496  

 

  

M&T Bank Corp., 5.05%, 01/27/2034(d)

      4,873,000        4,653,003  

 

  

PNC Financial Services Group, Inc. (The),

      

4.63%, 06/06/2033(c)(d)

      5,446,000        5,062,098  

 

  

6.04%, 10/28/2033(d)

      4,645,000        4,830,744  

 

  

5.07%, 01/24/2034(c)(d)

      5,400,000        5,225,316  

 

  

Series V, 6.20%(c)(d)(e)

      6,751,000        6,666,613  

 

  

Series W, 6.25%(d)(e)

      10,250,000        9,942,500  

 

  

SVB Financial Group,

      

1.80%, 02/02/2031(c)

      838,000        622,857  

 

  

Series D, 4.25%(d)(e)

      11,954,000        8,488,772  

 

  

Series E, 4.70%(d)(e)

      7,466,000        5,183,113  

 

  
     Principal
Amount		      Value  

 

  

Regional Banks–(continued)

 

Truist Financial Corp.,

      

4.12%, 06/06/2028(c)(d)

    $ 1,549,000      $ 1,482,071  

 

  

4.87%, 01/26/2029(c)(d)

      5,248,000        5,153,506  

 

  

4.92%, 07/28/2033(d)

      8,434,000        7,967,823  

 

  

6.12%, 10/28/2033(c)(d)

      4,577,000        4,801,537  

 

  
        91,578,554  

 

  

Reinsurance–0.24%

 

Global Atlantic Fin Co.,

      

4.40%, 10/15/2029(b)

      1,640,000        1,415,306  

 

  

3.13%, 06/15/2031(b)

      308,000        240,338  

 

  

4.70%, 10/15/2051(b)(d)

      11,381,000        9,628,383  

 

  
        11,284,027  

 

  

Renewable Electricity–0.04%

 

Adani Green Energy Ltd. (India), 4.38%, 09/08/2024(b)

      200,000        162,417  

 

  

Empresa Electrica Cochrane S.p.A. (Chile), 5.50%, 05/14/2027(b)

      132,720        124,917  

 

  

ENN Clean Energy International Investment Ltd. (China), 3.38%, 05/12/2026(b)

      200,000        180,016  

 

  

NSTAR Electric Co., 4.55%, 06/01/2052

      1,677,000        1,515,950  

 

  
        1,983,300  

 

  

Residential REITs–0.06%

 

American Homes 4 Rent L.P., 3.63%, 04/15/2032(c)

      713,000        603,108  

 

  

AvalonBay Communities, Inc., 5.00%, 02/15/2033

      1,536,000        1,530,017  

 

  

Invitation Homes Operating Partnership L.P., 2.30%, 11/15/2028

      236,000        195,364  

 

  

Spirit Realty L.P., 2.70%, 02/15/2032

      787,000        602,621  

 

  
        2,931,110  

 

  

Restaurants–0.37%

 

1011778 BC ULC/New Red Finance, Inc. (Canada), 4.00%, 10/15/2030(b)

      5,091,000        4,210,053  

 

  

Arcos Dorados B.V. (Brazil), 6.13%, 05/27/2029(b)

      7,783,000        7,436,657  

 

  

McDonald’s Corp., 5.15%, 09/09/2052

      5,469,000        5,250,466  

 

  
        16,897,176  

 

  

Retail REITs–0.12%

 

Agree L.P., 2.60%, 06/15/2033

      921,000        704,613  

 

  

Kimco Realty OP LLC, 2.25%, 12/01/2031

      265,000        206,007  

 

  

Kite Realty Group Trust, 4.75%, 09/15/2030

      432,000        387,558  

 

  

Realty Income Corp.,

      

4.85%, 03/15/2030

      1,339,000        1,300,062  

 

  

5.63%, 10/13/2032

      3,092,000        3,155,568  

 

  
        5,753,808  

 

  

Semiconductor Equipment–0.11%

 

Entegris Escrow Corp., 5.95%, 06/15/2030(b)

      5,071,000        4,722,789  

 

  
 

 

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

 

14   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Semiconductor Equipment–(continued)

 

NXP B.V./NXP Funding LLC/NXP USA, Inc. (China), 3.40%, 05/01/2030

    $ 601,000      $ 520,456  

 

  
        5,243,245  

 

  

Semiconductors–0.06%

      

Broadcom, Inc.,

      

2.45%, 02/15/2031(b)

      1,158,000        918,211  

 

  

3.19%, 11/15/2036(b)

      305,000        221,015  

 

  

Marvell Technology, Inc., 2.95%, 04/15/2031

      487,000        392,136  

 

  

Micron Technology, Inc., 4.19%, 02/15/2027

      634,000        600,513  

 

  

SK hynix, Inc. (South Korea), 6.38%, 01/17/2028(b)

      600,000        591,036  

 

  

Skyworks Solutions, Inc., 3.00%, 06/01/2031

      279,000        225,788  

 

  
        2,948,699  

 

  

Soft Drinks–0.25%

 

Coca-Cola Icecek A.S. (Turkey), 4.50%, 01/20/2029(b)

      13,172,000        11,408,533  

 

  

Sovereign Debt–2.43%

 

Airport Authority (Hong Kong),

      

4.88%, 01/12/2033(b)

      5,099,000        5,131,962  

 

  

3.25%, 01/12/2052(b)

      9,128,000        6,862,989  

 

  

Bahamas Government International Bond (Bahamas), 9.00%, 06/16/2029(b)

      3,669,000        3,348,561  

 

  

Bermuda Government International Bond (Bermuda), 5.00%, 07/15/2032(b)

      4,962,000        4,836,882  

 

  

Colombia Government International Bond (Colombia),

      

3.25%, 04/22/2032

      200,000        142,268  

 

  

8.00%, 04/20/2033

      5,622,000        5,560,710  

 

  

7.50%, 02/02/2034

      3,455,000        3,280,517  

 

  

Dominican Republic International Bond (Dominican Republic),

      

4.50%, 01/30/2030(b)

      200,000        172,488  

 

  

7.05%, 02/03/2031(b)

      2,790,000        2,792,260  

 

  

5.30%, 01/21/2041(b)

      3,823,000        3,004,525  

 

  

Egypt Government International Bond (Egypt),

      

5.25%, 10/06/2025(b)

      4,150,000        3,598,843  

 

  

5.88%, 02/16/2031(b)

      4,099,000        2,743,457  

 

  

7.50%, 02/16/2061(b)

      4,276,000        2,512,727  

 

  

Ghana Government International Bond (Ghana), 7.75%, 04/07/2029(b)

      4,937,000        1,873,838  

 

  

Hungary Government International Bond (Hungary), 5.38%, 03/25/2024

      76,000        75,966  

 

  

Indonesia Government International Bond (Indonesia),

      

4.55%, 01/11/2028

      7,250,000        7,130,843  

 

  

4.75%, 02/11/2029

      200,000        199,303  

 

  

Israel Government International Bond (Israel), 4.50%, 01/17/2033

      6,761,000        6,552,910  

 

  
     Principal
Amount		      Value  

 

  

Sovereign Debt–(continued)

      

KSA Sukuk Ltd. (Saudi Arabia), 3.63%, 04/20/2027(b)

    $ 200,000      $ 191,685  

 

  

Mexico Government International Bond (Mexico),

      

4.50%, 04/22/2029

      200,000        190,361  

 

  

4.88%, 05/19/2033

      200,000        186,031  

 

  

6.35%, 02/09/2035

      3,380,000        3,476,275  

 

  

4.40%, 02/12/2052

      5,881,000        4,475,004  

 

  

Oman Government International Bond (Oman),

      

6.00%, 08/01/2029(b)

      200,000        200,768  

 

  

6.25%, 01/25/2031(b)

      3,290,000        3,334,895  

 

  

Panama Government International Bond (Panama), 6.40%, 02/14/2035(c)

      500,000        516,847  

 

  

Perusahaan Penerbit SBSN Indonesia III (Indonesia), 3.55%, 06/09/2051(b)

      7,104,000        5,351,042  

 

  

Philippine Government International Bond (Philippines), 5.50%, 01/17/2048

      2,231,000        2,265,756  

 

  

Qatar Government International Bond (Qatar), 4.00%, 03/14/2029(b)

      329,000        319,436  

 

  

Republic of Poland Government International Bond (Poland), 5.75%, 11/16/2032

      310,000        325,586  

 

  

Republic of South Africa Government International Bond (South Africa), 5.75%, 09/30/2049

      200,000        146,415  

 

  

Romanian Government International Bond (Romania),

      

5.25%, 11/25/2027(b)

      300,000        290,997  

 

  

6.63%, 02/17/2028(b)

      5,030,000        5,148,834  

 

  

3.63%, 03/27/2032(b)

      300,000        248,262  

 

  

7.13%, 01/17/2033(b)

      6,774,000        7,111,210  

 

  

7.63%, 01/17/2053(b)

      500,000        541,488  

 

  

Saudi Government International Bond (Saudi Arabia),

      

4.75%, 01/18/2028(b)(c)

      3,550,000        3,515,533  

 

  

4.38%, 04/16/2029(b)

      415,000        405,738  

 

  

5.50%, 10/25/2032(b)

      600,000        625,974  

 

  

4.88%, 07/18/2033(b)

      6,326,000        6,235,696  

 

  

5.00%, 01/18/2053(b)

      7,020,000        6,423,300  

 

  

Serbia International Bond (Serbia), 6.50%, 09/26/2033(b)

      300,000        292,444  

 

  
        111,640,626  

 

  

Specialized Consumer Services–0.05%

 

Ashtead Capital, Inc. (United Kingdom), 5.55%, 05/30/2033(b)(c)

      2,577,000        2,472,147  

 

  

Specialized Finance–0.57%

 

   

Blackstone Private Credit Fund,

      

1.75%, 09/15/2024

      61,000        56,873  

 

  

7.05%, 09/29/2025(b)

      3,153,000        3,166,290  

 

  

2.63%, 12/15/2026

      449,000        381,678  

 

  

3.25%, 03/15/2027

      793,000        683,462  

 

  

India Airport Infra (India), 6.25%, 10/25/2025(b)

      400,000        381,780  

 

  
 

 

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

 

15   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Specialized Finance–(continued)

 

IP Lending VII Ltd. (Bermuda), Series 2022-7A, Class SNR, 8.00%, 10/11/2027(b)(h)

    $ 15,459,000      $ 15,459,000  

 

  

Mitsubishi HC Capital, Inc. (Japan), 3.64%, 04/13/2025(b)

      2,129,000        2,035,920  

 

  

National Rural Utilities Cooperative Finance Corp.,

      

2.75%, 04/15/2032(c)

      536,000        441,993  

 

  

5.80%, 01/15/2033

      3,383,000        3,486,151  

 

  
        26,093,147  

 

  

Specialized REITs–0.17%

 

American Tower Corp.,

      

2.70%, 04/15/2031

      1,001,000        812,035  

 

  

4.05%, 03/15/2032(c)

      717,000        639,068  

 

  

EPR Properties,

      

4.75%, 12/15/2026

      910,000        832,065  

 

  

3.60%, 11/15/2031

      527,000        397,119  

 

  

Extra Space Storage L.P.,

      

3.90%, 04/01/2029

      99,000        89,883  

 

  

2.55%, 06/01/2031

      382,000        304,225  

 

  

2.35%, 03/15/2032

      296,000        226,989  

 

  

Life Storage L.P., 2.40%, 10/15/2031(c)

      482,000        381,930  

 

  

SBA Communications Corp., 3.13%, 02/01/2029

      4,807,000        3,973,466  

 

  
        7,656,780  

 

  

Specialty Chemicals–0.68%

 

Braskem Idesa S.A.P.I. (Mexico),

      

7.45%, 11/15/2029(b)(c)

      7,775,000        6,010,639  

 

  

6.99%, 02/20/2032(b)

      5,888,000        4,106,232  

 

  

OCP S.A. (Morocco), 3.75%, 06/23/2031(b)

      200,000        160,980  

 

  

Sasol Financing USA LLC (South Africa),

      

4.38%, 09/18/2026(c)

      9,653,000        8,684,129  

 

  

6.50%, 09/27/2028

      300,000        280,353  

 

  

5.50%, 03/18/2031(c)

      14,272,000        11,918,333  

 

  
        31,160,666  

 

  

Specialty Stores–0.00%

 

B2W Digital Lux S.a.r.l. (Brazil), 4.38%, 12/20/2030(b)

      600,000        107,220  

 

  

Steel–0.09%

 

POSCO (South Korea),

      

4.00%, 08/01/2023(b)

      228,000        226,574  

 

  

5.75%, 01/17/2028(b)

      3,669,000        3,712,857  

 

  
        3,939,431  

 

  

Systems Software–0.72%

 

Oracle Corp.,

      

6.25%, 11/09/2032(c)

      14,745,000        15,356,722  

 

  

4.90%, 02/06/2033

      7,731,000        7,306,416  

 

  

6.90%, 11/09/2052

      6,093,000        6,586,620  

 

  

5.55%, 02/06/2053

      4,002,000        3,670,032  

 

  

VMware, Inc., 2.20%, 08/15/2031

      297,000        225,382  

 

  
        33,145,172  

 

  
     Principal
Amount		      Value  

 

  

Technology Hardware, Storage & Peripherals–0.03%

 

Apple, Inc., 3.35%, 08/08/2032(c)

    $ 1,339,000      $ 1,207,998  

 

  

Lenovo Group Ltd. (China), 6.54%, 07/27/2032(b)

      400,000        389,923  

 

  
        1,597,921  

 

  

Thrifts & Mortgage Finance–0.01%

 

Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., 2.88%, 10/15/2026(b)(c)

      531,000        458,755  

 

  

Tobacco–0.82%

 

BAT Capital Corp. (United Kingdom), 2.73%, 03/25/2031

      357,000        278,932  

 

  

Philip Morris International, Inc.,

      

5.00%, 11/17/2025

      2,655,000        2,640,509  

 

  

5.13%, 11/17/2027

      7,887,000        7,855,014  

 

  

4.88%, 02/15/2028

      5,741,000        5,623,132  

 

  

5.63%, 11/17/2029(c)

      1,136,000        1,151,752  

 

  

5.13%, 02/15/2030

      7,538,000        7,382,386  

 

  

5.75%, 11/17/2032(c)

      4,268,000        4,320,955  

 

  

5.38%, 02/15/2033

      8,851,000        8,708,468  

 

  
        37,961,148  

 

  

Trading Companies & Distributors–0.41%

 

AerCap Global Aviation Trust (Ireland), 6.50%, 06/15/2045(b)(d)

      8,778,000        8,478,923  

 

  

Air Lease Corp.,

      

3.63%, 12/01/2027

      340,000        309,402  

 

  

5.85%, 12/15/2027(c)

      4,247,000        4,230,521  

 

  

5.30%, 02/01/2028(c)

      2,824,000        2,746,177  

 

  

GATX Corp., 4.90%, 03/15/2033(c)

      3,344,000        3,151,863  

 

  
        18,916,886  

 

  

Trucking–0.31%

 

Penske Truck Leasing Co. L.P./PTL Finance Corp., 5.70%, 02/01/2028(b)(c)

      3,493,000        3,492,172  

 

  

Ryder System, Inc., 4.30%, 06/15/2027

      826,000        794,097  

 

  

Triton Container International Ltd. (Bermuda),

      

2.05%, 04/15/2026(b)

      5,299,000        4,637,233  

 

  

3.15%, 06/15/2031(b)

      6,768,000        5,296,173  

 

  
        14,219,675  

 

  

Wireless Telecommunication Services–0.90%

 

Axiata SPV2 Bhd. (Malaysia), 4.36%, 03/24/2026(b)

      200,000        194,118  

 

  

Bharti Airtel Ltd. (India),

      

4.38%, 06/10/2025(b)

      200,000        194,096  

 

  

3.25%, 06/03/2031(b)

      200,000        168,807  

 

  

Liquid Telecommunications Financing PLC (South Africa), 5.50%, 09/04/2026(b)

      200,000        141,578  

 

  

Oztel Holdings SPC Ltd. (Oman), 5.63%, 10/24/2023(b)

      200,000        199,881  

 

  

Rogers Communications, Inc. (Canada), 4.55%, 03/15/2052(b)

      3,510,000        2,802,691  

 

  
 

 

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

 

16   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Wireless Telecommunication Services–(continued)

 

SixSigma Networks Mexico S.A.de C.V. (Mexico), 7.50%, 05/02/2025(b)

    $ 325,000      $ 296,261  

 

  

Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC,

      

4.74%, 03/20/2025(b)

      2,853,000        2,820,882  

 

  

5.15%, 03/20/2028(b)

      5,592,000        5,531,978  

 

  

T-Mobile USA, Inc.,

      

2.25%, 02/15/2026

      661,000        601,880  

 

  

2.63%, 04/15/2026

      769,000        705,287  

 

  

5.05%, 07/15/2033

      6,570,000        6,334,023  

 

  

5.65%, 01/15/2053

      7,812,000        7,667,275  

 

  

VEON Holdings B.V. (Netherlands), 3.38%, 11/25/2027(b)

      4,049,000        2,976,015  

 

  

Vodafone Group PLC (United Kingdom),

      

5.75%, 02/10/2063

      1,818,000        1,728,797  

 

  

4.13%, 06/04/2081(d)

      5,448,000        4,328,654  

 

  

5.13%, 06/04/2081(d)

      6,245,000        4,673,321  

 

  

Xiaomi Best Time International Ltd. (China), 4.10%, 07/14/2051(b)

      400,000        257,535  

 

  
        41,623,079  

 

  

Total U.S. Dollar Denominated Bonds & Notes
(Cost $2,288,862,763)

 

      2,117,382,091  

 

  

Asset-Backed Securities–27.42%

 

Adjustable Rate Mortgage Trust,

      

Series 2004-2, Class 6A1, 0.71%, 02/25/2035(j)

      338,251        331,001  

 

  

Series 2005-1, Class 4A1, 4.04%, 05/25/2035(j)

      487,592        451,904  

 

  

AMSR Trust, Series 2021-SFR3, Class B, 1.73%, 10/17/2038(b)

      13,340,000        11,567,710  

 

  

Angel Oak Mortgage Trust,

      

Series 2020-1, Class A1, 2.16%, 12/25/2059(b)(j)

      1,100,876        1,038,649  

 

  

Series 2020-3, Class A1, 1.69%, 04/25/2065(b)(j)

      4,116,558        3,780,985  

 

  

Series 2020-5, Class A1, 1.37%, 05/25/2065(b)(j)

      2,431,755        2,217,734  

 

  

Series 2021-3, Class A1, 1.07%, 05/25/2066(b)(j)

      3,184,825        2,620,802  

 

  

Series 2021-7, Class A1, 1.98%, 10/25/2066(b)(j)

      7,703,228        6,292,331  

 

  

Series 2022-1, Class A1, 2.88%, 12/25/2066(b)(k)

      13,709,362        12,135,745  

 

  

Avis Budget Rental Car Funding (AESOP) LLC,

      

Series 2022-1A, Class A, 3.83%, 08/21/2028(b)

      20,133,000        18,818,957  

 

  

Series 2022-1A, Class C, 4.84%, 08/21/2028(b)

      5,417,000        5,085,191  

 

  

Series 2023-1A, Class A, 5.25%, 04/20/2029(b)

      3,919,000        3,886,138  

 

  

Series 2023-2A, Class A, 5.20%, 10/20/2027(b)

      2,475,000        2,444,657  

 

  

Bain Capital Credit CLO Ltd., Series 2017-2A, Class AR2, 6.00% (3 mo. USD LIBOR + 1.18%), 07/25/2034(b)(g)

      21,505,000        21,164,662  

 

  
     Principal         
     Amount      Value  

 

  

Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class AS, 3.99%, 09/15/2048(j)

    $ 4,394,000      $ 4,133,011  

 

  

Bayview MSR Opportunity Master Fund Trust,

      

Series 2021-4, Class A3, 3.00%, 10/25/2051(b)(j)

      11,112,570        9,365,354  

 

  

Series 2021-4, Class A4, 2.50%, 10/25/2051(b)(j)

      11,111,712        9,018,309  

 

  

Series 2021-4, Class A8, 2.50%, 10/25/2051(b)(j)

      10,497,618        9,119,542  

 

  

Series 2021-5, Class A1, 3.00%, 11/25/2051(b)(j)

      11,787,915        9,992,639  

 

  

Series 2021-5, Class A2, 2.50%, 11/25/2051(b)(j)

      14,383,506        11,726,721  

 

  

Bear Stearns Adjustable Rate Mortgage Trust,

      

Series 2003-6, Class 1A3, 3.86%, 08/25/2033(j)

      37,615        35,555  

 

  

Series 2004-10, Class 21A1, 3.98%, 01/25/2035(j)

      263,525        238,358  

 

  

Series 2006-1, Class A1, 0.65% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(g)

      149,530        142,363  

 

  

Bear Stearns ALT-A Trust, Series 2004-11, Class 2A3, 4.17%, 11/25/2034(j)

      219,069        216,279  

 

  

Benchmark Mortgage Trust,

      

Series 2018-B3, Class C, 4.53%, 04/10/2051(j)

      6,921,000        5,958,074  

 

  

Series 2019-B14, Class A5, 3.05%, 12/15/2062

      16,455,000        14,426,110  

 

  

Series 2019-B14, Class C, 3.77%, 12/15/2062(j)

      14,875,350        11,641,357  

 

  

Series 2019-B15, Class B, 3.56%, 12/15/2072

      12,220,000        10,273,262  

 

  

BRAVO Residential Funding Trust, Series 2021-NQM2, Class A1, 0.97%, 03/25/2060(b)(j)

      2,668,164        2,499,979  

 

  

BX Commercial Mortgage Trust,

      

Series 2021-ACNT, Class A, 5.44% (1 mo. USD LIBOR + 0.85%), 11/15/2038(b)(g)

      6,655,000        6,549,838  

 

  

Series 2021-VOLT, Class C, 5.69% (1 mo. USD LIBOR + 1.10%), 09/15/2036(b)(g)

      5,345,000        5,166,370  

 

  

Series 2021-VOLT, Class D, 6.24% (1 mo. USD LIBOR + 1.65%), 09/15/2036(b)(g)

      12,367,000        11,955,632  

 

  

Series 2021-XL2, Class B, 5.59% (1 mo. USD LIBOR + 1.00%), 10/15/2038(b)(g)

      4,355,561        4,227,469  

 

  
 

 

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

 

17   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

BX Trust,

      

Series 2022-CLS, Class A, 5.76%, 10/13/2027(b)

    $ 4,640,000      $ 4,519,824  

 

  

Series 2022-LBA6, Class A, 5.56% (1 mo. Term SOFR + 1.00%), 01/15/2039(b)(g)

      10,965,000        10,786,840  

 

  

Series 2022-LBA6, Class B, 5.86% (1 mo. Term SOFR + 1.30%), 01/15/2039(b)(g)

      6,790,000        6,664,599  

 

  

Series 2022-LBA6, Class C, 6.16% (1 mo. Term SOFR + 1.60%), 01/15/2039(b)(g)

      3,630,000        3,545,989  

 

  

Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.50%, 07/25/2049(b)(j)

      4,479,109        4,013,693  

 

  

Chase Mortgage Finance Corp.,

      

Series 2016-SH1, Class M3, 3.75%, 04/25/2045(b)(j)

      1,136,380        948,951  

 

  

Series 2016-SH2, Class M2, 3.75%, 12/25/2045(b)(j)

      4,400,707        3,832,348  

 

  

Series 2016-SH2, Class M3, 3.75%, 12/25/2045(b)(j)

      2,182,757        1,884,506  

 

  

CIFC Funding Ltd. (Cayman Islands),

      

Series 2014-5A, Class A1R2, 5.99% (3 mo. USD LIBOR + 1.20%), 10/17/2031(b)(g)

      4,417,000        4,397,150  

 

  

Series 2016-1A, Class ARR, 5.90% (3 mo. USD LIBOR + 1.08%), 10/21/2031(b)(g)

      4,761,000        4,700,940  

 

  

Citigroup Commercial Mortgage Trust,

      

Series 2013-GC11, Class D, 4.26%, 04/10/2023(b)(j)

      752,554        741,718  

 

  

Series 2014-GC23, Class B, 4.18%, 07/10/2047(j)

      2,816,000        2,693,638  

 

  

Series 2015-GC27, Class A5, 3.14%, 02/10/2048

      1,233,335        1,178,119  

 

  

Citigroup Mortgage Loan Trust,

      

Series 2004-UST1, Class A4, 4.65%, 08/25/2034(j)

      139,290        127,543  

 

  

Series 2021-INV3, Class A3, 2.50%, 05/25/2051(b)(j)

      11,238,372        9,121,107  

 

  

COLT Mortgage Loan Trust,

      

Series 2020-2, Class A1, 1.85%, 03/25/2065(b)(j)

      336,821        331,781  

 

  

Series 2021-5, Class A1, 1.73%, 11/26/2066(b)(j)

      5,837,745        4,841,066  

 

  

Series 2022-1, Class A1, 2.28%, 12/27/2066(b)(j)

      8,266,103        7,231,203  

 

  

Series 2022-2, Class A1, 2.99%, 02/25/2067(b)(k)

      8,241,192        7,373,682  

 

  

Series 2022-3, Class A1, 3.90%, 02/25/2067(b)(j)

      11,293,890        10,472,103  

 

  

COMM Mortgage Trust, Series 2015-CR25, Class B, 4.52%, 08/10/2048(j)

      5,267,000        4,967,863  

 

  

Commercial Mortgage Trust, Series 2013-SFS, Class A1, 1.87%, 04/12/2035(b)

      16,805        16,732  

 

  

Countrywide Home Loans Mortgage Pass-Through Trust, Series 2007-13, Class A10, 6.00%, 08/25/2037

      187,421        99,564  

 

  
     Principal         
     Amount      Value  

 

  

Credit Suisse Mortgage Capital Ctfs., Series 2020-SPT1, Class A1, 1.62%, 04/25/2065(b)(k)

    $ 1,101,038      $ 1,078,722  

 

  

Credit Suisse Mortgage Capital Trust, Series 2021-NQM1, Class A1, 0.81%, 05/25/2065(b)(j)

      1,971,517        1,668,200  

 

  

Series 2021-NQM2, Class A1, 1.18%, 02/25/2066(b)(j)

      2,632,247        2,222,030  

 

  

Series 2022-ATH1, Class A1A, 2.87%, 01/25/2067(b)(j)

      11,043,353        10,125,327  

 

  

Series 2022-ATH1, Class A1B, 3.35%, 01/25/2067(b)(j)

      5,772,399        4,965,980  

 

  

Series 2022-ATH2, Class A1, 4.55%, 05/25/2067(b)(j)

      11,617,007        11,186,101  

 

  

CSAIL Commercial Mortgage Trust, Series 2020-C19, Class A3, 2.56%, 03/15/2053

      22,374,000        18,695,958  

 

  

CSFB Mortgage-Backed Pass-Through Ctfs., Series 2004-AR5, Class 3A1, 3.51%, 06/25/2034(j)

      544,231        503,497  

 

  

DB Master Finance LLC,

      

Series 2019-1A, Class A23, 4.35%, 05/20/2049(b)

      9,852,650        9,200,246  

 

  

Series 2019-1A, Class A2II, 4.02%, 05/20/2049(b)

      10,407,525        9,823,103  

 

  

Deutsche Mortgage Securities, Inc. Re-REMIC Trust Ctfs., Series 2007-WM1, Class A1, 3.47%, 06/27/2037(b)(j)

      3,429,667        2,993,073  

 

  

Domino’s Pizza Master Issuer LLC, Series 2019-1A, Class A2, 3.67%, 10/25/2049(b)

      18,781,140        16,743,908  

 

  

Dryden 93 CLO Ltd., Series 2021-93A, Class A1A, 5.87% (3 mo. USD LIBOR + 1.08%), 01/15/2034(b)(g)

      3,239,313        3,185,084  

 

  

DT Auto Owner Trust, Series 2019-3A, Class D, 2.96%, 04/15/2025(b)

      6,941,990        6,859,056  

 

  

Ellington Financial Mortgage Trust,

      

Series 2019-2, Class A1, 2.74%, 11/25/2059(b)(j)

      2,705,434        2,514,836  

 

  

Series 2020-1, Class A1, 2.01%, 05/25/2065(b)(j)

      527,787        512,132  

 

  

Series 2021-1, Class A1, 0.80%, 02/25/2066(b)(j)

      1,017,748        832,420  

 

  

Series 2022-1, Class A1, 2.21%, 01/25/2067(b)(j)

      7,814,111        6,665,931  

 

  

Series 2022-3, Class A1, 5.00%, 08/25/2067(b)(k)

      10,514,969        10,249,551  

 

  

Extended Stay America Trust, Series 2021-ESH, Class B, 5.97% (1 mo. USD LIBOR + 1.38%), 07/15/2038(b)(g)

      5,022,509        4,948,240  

 

  

Flagstar Mortgage Trust,

      

Series 2021-11IN, Class A6, 3.70%, 11/25/2051(b)(j)

      17,965,235        15,573,795  

 

  

Series 2021-8INV, Class A6, 2.50%, 09/25/2051(b)(j)

      3,856,218        3,348,072  

 

  
 

 

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

 

18   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

GCAT Trust,

      

Series 2019-NQM3, Class A1, 2.69%, 11/25/2059(b)(j)

    $ 1,574,551      $ 1,473,140  

 

  

Series 2020-NQM2, Class A1, 1.56%, 04/25/2065(b)(k)

      1,284,573        1,163,069  

 

  

GMACM Mortgage Loan Trust, Series 2006-AR1, Class 1A1, 3.24%, 04/19/2036(j)

      385,616        294,263  

 

  

GoldenTree Loan Management US CLO 1 Ltd., Series 2021-9A, Class A, 5.88% (3 mo. USD LIBOR + 1.07%), 01/20/2033(b)(g)

      5,015,000        4,958,987  

 

  

GoldenTree Loan Management US CLO 2 Ltd., Series 2017-2A, Class AR, 5.72% (3 mo. USD LIBOR + 0.91%), 11/20/2030(b)(g)

      14,276,000        14,189,959  

 

  

GoldenTree Loan Management US CLO 5 Ltd., Series 2019-5A, Class AR, 5.88% (3 mo. USD LIBOR + 1.07%), 10/20/2032(b)(g)

      6,576,000        6,498,745  

 

  

Golub Capital Partners CLO 35(B) Ltd., Series 2017- 35A, Class AR, 6.00% (3 mo. USD LIBOR + 1.19%), 07/20/2029(b)(g)

      17,469,281        17,352,167  

 

  

Golub Capital Partners CLO 40(A) Ltd., Series 2019- 40A, Class AR, 5.91% (3 mo. USD LIBOR + 1.09%), 01/25/2032(b)(g)

      15,988,000        15,762,665  

 

  

GS Mortgage Securities Corp. Trust, Series 2022-SHIP, Class A, 5.29% (1 mo. Term SOFR + 0.73%), 08/15/2036(b)(g)

      4,830,000        4,794,737  

 

  

GS Mortgage Securities Trust,

      

Series 2013-GC14, Class B, 4.72%, 08/10/2046(b)(j)

      4,973,000        4,819,430  

 

  

Series 2020-GC45, Class A5, 2.91%, 02/13/2053

      8,325,000        7,216,527  

 

  

Series 2020-GC47, Class A5, 2.38%, 05/12/2053

      8,750,000        7,326,626  

 

  

GS Mortgage-Backed Securities Trust, Series 2021-INV1, Class A6, 2.50%, 12/25/2051(b)(j)

      9,436,616        8,167,885  

 

  

GSR Mortgage Loan Trust, Series 2005-AR6, Class 3A2, 3.35%, 09/25/2035(j)

      104,734        94,369  

 

  

HarborView Mortgage Loan Trust, Series 2005-9, Class 2A1C, 5.49% (1 mo. USD LIBOR + 0.90%), 06/20/2035(g)

      13,839        12,423  

 

  

Hertz Vehicle Financing III L.P.,

      

Series 2021-2A, Class A, 1.68%, 12/27/2027(b)

      3,927,000        3,425,927  

 

  

Series 2021-2A, Class B, 2.12%, 12/27/2027(b)

      2,100,000        1,835,161  

 

  
     Principal         
     Amount      Value  

 

  

Hertz Vehicle Financing LLC,

      

Series 2021-1A, Class A, 1.21%, 12/26/2025(b)

    $ 2,917,000      $ 2,708,772  

 

  

Series 2021-1A, Class B, 1.56%, 12/26/2025(b)

      1,289,000        1,194,770  

 

  

ICG US CLO Ltd., Series 2016- 1A, Class A1RR, 6.05% (3 mo. USD LIBOR + 1.25%), 04/29/2034(b)(g)

      11,399,000        11,211,475  

 

  

IP Lending III Ltd., Series 2022-3A, Class SNR, 3.38%, 11/02/2026(b)(h)

      7,847,000        6,709,185  

 

  

IP Lending IV Ltd., Series 2022-4A, Class SNR, 6.05%, 04/28/2027(b)(h)

      12,002,000        11,251,875  

 

  

Jimmy Johns Funding LLC, Series 2017-1A, Class A2II, 4.85%, 07/30/2047(b)

      5,626,500        5,229,704  

 

  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-LC9, Class B, 3.81%, 12/15/2047(b)(j)

      445,941        438,419  

 

  

JP Morgan Mortgage Trust,

      

Series 2005-A3, Class 1A1, 2.96%, 06/25/2035(j)

      89,742        83,964  

 

  

Series 2005-A3, Class 6A5, 3.14%, 06/25/2035(j)

      182,517        178,699  

 

  

Series 2005-A5, Class 1A2, 3.34%, 08/25/2035(j)

      85,135        85,079  

 

  

Series 2007-A4, Class 3A1, 3.17%, 06/25/2037(j)

      364,031        273,377  

 

  

Series 20153, Class B2, 3.60%, 05/25/2045(b)(j)

      4,319,917        3,944,352  

 

  

Series 2021-LTV2, Class A1, 2.52%, 05/25/2052(b)(j)

      13,334,758        10,861,122  

 

  

JPMBB Commercial Mortgage Securities Trust,

      

Series 2013-C17, Class C, 4.88%, 01/15/2047(j)

      12,750,000        12,208,551  

 

  

Series 2015-C31, Class A3, 3.80%, 08/15/2048

      924,076        879,057  

 

  

Series 2016-C1, Class B, 4.74%, 03/17/2049(j)

      5,083,000        4,803,883  

 

  

JPMDB Commercial Mortgage Securities Trust, Series 2020-COR7, Class A5, 2.18%, 05/13/2053

      6,200,000        4,928,516  

 

  

KKR CLO 30 Ltd., Series 30A, Class A1R, 5.81% (3 mo. USD LIBOR + 1.02%), 10/17/2031(b)(g)

      11,305,000        11,198,744  

 

  

Lehman Mortgage Trust, Series 2006-1, Class 3A5, 5.50%, 02/25/2036

      93,242        69,464  

 

  

Life Mortgage Trust,

      

Series 2021-BMR, Class A, 5.29% (1 mo. USD LIBOR + 0.70%), 03/15/2038(b)(g)

      6,679,282        6,564,282  

 

  

Series 2021-BMR, Class B, 5.47% (1 mo. USD LIBOR + 0.88%), 03/15/2038(b)(g)

      10,837,246        10,552,665  

 

  

Series 2021-BMR, Class C, 5.69% (1 mo. USD LIBOR + 1.10%), 03/15/2038(b)(g)

      4,546,237        4,416,038  

 

  

MAD Mortgage Trust, Series 2017-330M, Class A, 3.29%, 08/15/2034(b)(j)

      11,633,000        10,956,433  

 

  
 

 

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

 

19   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Med Trust,

      

Series 2021-MDLN, Class A, 5.54% (1 mo. USD LIBOR + 0.95%), 11/15/2038(b)(g)

    $ 7,951,378      $ 7,768,376  

 

  

Series 2021-MDLN, Class B, 6.04% (1 mo. USD LIBOR + 1.45%), 11/15/2038(b)(g)

      12,840,852        12,573,747  

 

  

Mello Mortgage Capital Acceptance Trust,

      

Series 2021-INV2, Class A4, 2.50%, 08/25/2051(b)(j)

      7,246,829        6,282,168  

 

  

Series 2021-INV3, Class A4, 2.50%, 10/25/2051(b)(j)

      7,158,258        6,205,387  

 

  

Merrill Lynch Mortgage Investors Trust,

      

Series 2005-3, Class 3A, 2.39%, 11/25/2035(j)

      395,226        361,787  

 

  

Series 2005-A5, Class A9, 3.47%, 06/25/2035(j)

      439,073        408,169  

 

  

MFA Trust,

      

Series 2021-AEI1, Class A3, 2.50%, 08/25/2051(b)(j)

      8,015,449        6,505,369  

 

  

Series 2021-AEI1, Class A4, 2.50%, 08/25/2051(b)(j)

      9,657,129        8,349,079  

 

  

Series 2021-INV2, Class A1, 1.91%, 11/25/2056(b)(j)

      9,500,794        8,084,925  

 

  

MHP Commercial Mortgage Trust,

      

Series 2021-STOR, Class A, 5.29% (1 mo. USD LIBOR + 0.70%), 07/15/2038(b)(g)

      5,810,000        5,696,101  

 

  

Series 2021-STOR, Class B, 5.49% (1 mo. USD LIBOR + 0.90%), 07/15/2038(b)(g)

      4,355,000        4,231,698  

 

  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C25, Class B, 4.52%, 10/15/2048(j)

      15,769,000        14,737,438  

 

  

Morgan Stanley Capital I Trust,

      

Series 2014-150E, Class C, 4.30%, 09/09/2032(b)(j)

      3,350,000        2,651,044  

 

  

Series 2019-L2, Class A4, 4.07%, 03/15/2052

      17,430,000        16,321,121  

 

  

Series 2019-L3, Class AS, 3.49%, 11/15/2052

      10,950,000        9,615,504  

 

  

MVW LLC, Series 2019-2A, Class A, 2.22%, 10/20/2038(b)

      3,835,574        3,590,684  

 

  

MVW Owner Trust, Series 2019-1A, Class A, 2.89%, 11/20/2036(b)

      2,880,462        2,717,753  

 

  

Natixis Commercial Mortgage Securities Trust, Series 2018-285M, Class E, 3.79%, 11/15/2032(b)(j)

      6,250,000        5,061,705  

 

  

Neuberger Berman Loan Advisers CLO 24 Ltd., Series 2017-24A, Class AR, 5.82% (3 mo. USD LIBOR + 1.02%), 04/19/2030(b)(g)

      10,215,449        10,160,776  

 

  
     Principal
Amount		      Value  

 

  

New Residential Mortgage Loan Trust,

      

Series 2019-NQM4, Class A1, 2.49%, 09/25/2059(b)(j)

    $ 1,834,802      $ 1,687,427  

 

  

Series 2020-NQM1, Class A1, 2.46%, 01/26/2060(b)(j)

      3,136,843        2,858,391  

 

  

Series 2022-NQM2, Class A1, 3.08%, 03/27/2062(b)(j)

      7,737,281        6,944,395  

 

  

OBX Trust,

      

Series 2019-EXP1, Class 1A3, 4.00%, 01/25/2059(b)(j)

      361,926        344,747  

 

  

Series 2022-NQM1, Class A1, 2.31%, 11/25/2061(b)(j)

      9,678,798        8,104,161  

 

  

Series 2022-NQM2, Class A1, 2.95%, 01/25/2062(b)(j)

      11,754,160        10,613,719  

 

  

Series 2022-NQM2, Class A1A, 2.78%, 01/25/2062(b)(k)

      7,593,587        6,984,544  

 

  

Series 2022-NQM2, Class A1B, 3.38%, 01/25/2062(b)(k)

      7,063,333        6,033,601  

 

  

Oceanview Mortgage Trust, Series 2021-3, Class A5, 2.50%, 07/25/2051(b)(j)

      8,320,985        7,213,828  

 

  

OCP CLO Ltd. (Cayman Islands),

      

Series 2014-7A, Class A1RR, 5.93% (3 mo. USD LIBOR + 1.12%), 07/20/2029(b)(g)

      15,747,715        15,667,953  

 

  

Series 2017-13A, Class A1AR, 5.75% (3 mo. USD LIBOR + 0.96%), 07/15/2030(b)(g)

      9,611,000        9,528,095  

 

  

Series 2020-8RA, Class A1, 6.01% (3 mo. USD LIBOR + 1.22%), 01/17/2032(b)(g)

      17,937,000        17,771,406  

 

  

Octagon Investment Partners 31 LLC, Series 2017-1A, Class AR, 5.86% (3 mo. USD LIBOR + 1.05%), 07/20/2030(b)(g)

      15,519,662        15,414,687  

 

  

Octagon Investment Partners 49 Ltd., Series 2020-5A, Class A1, 6.01% (3 mo. USD LIBOR + 1.22%), 01/15/2033(b)(g)

      16,476,000        16,355,462  

 

  

OHA Loan Funding Ltd., Series 2016-1A, Class AR, 6.07% (3 mo. USD LIBOR + 1.26%), 01/20/2033(b)(g)

      10,543,683        10,455,074  

 

  

One Bryant Park Trust, Series 2019-OBP, Class A, 2.52%, 09/15/2054(b)

      21,801,000        18,077,293  

 

  

Onslow Bay Mortgage Loan Trust, Series 2021-NQM4, Class A1, 1.96%, 10/25/2061(b)(j)

      11,379,693        9,296,206  

 

  

PPM CLO 3 Ltd., Series 2019- 3A, Class AR, 5.88% (3 mo. USD LIBOR + 1.09%), 04/17/2034(b)(g)

      9,626,000        9,375,762  

 

  
 

 

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

 

20   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Progress Residential Trust,

      

Series 2020-SFR1, Class A, 1.73%, 04/17/2037(b)

    $ 14,070,228      $ 13,017,419  

 

  

Series 2021-SFR10, Class A, 2.39%, 12/17/2040(b)

      7,238,332        6,204,205  

 

  

Series 2022-SFR5, Class A, 4.45%, 06/17/2039(b)

      9,670,160        9,349,781  

 

  

Provident Home Equity Loan Trust, Series 2000-2, Class A1, 5.16% (1 mo. USD LIBOR + 0.54%), 08/25/2031(g)

      107,794        96,542  

 

  

Race Point VIII CLO Ltd., Series 2013-8A, Class AR2, 5.96% (3 mo. USD LIBOR + 1.04%), 02/20/2030(b)(g)

      10,710,418        10,662,628  

 

  

Residential Mortgage Loan Trust,

      

Series 2019-3, Class A1, 2.63%, 09/25/2059(b)(j)

      539,575        529,239  

 

  

Series 2020-1, Class A1, 2.38%, 01/26/2060(b)(j)

      1,005,660        958,959  

 

  

RUN Trust, Series 2022-NQM1, Class A1, 4.00%, 03/25/2067(b)

      6,572,387        6,077,673  

 

  

Sequoia Mortgage Trust,

      

Series 2013-3, Class A1, 2.00%, 03/25/2043(j)

      371,341        307,267  

 

  

Series 2013-7, Class A2, 3.00%, 06/25/2043(j)

      302,424        263,545  

 

  

SG Residential Mortgage Trust,

      

Series 2022-1, Class A1, 3.17%, 03/27/2062(b)(j)

      13,463,154        12,080,504  

 

  

Series 2022-1, Class A2, 3.58%, 03/27/2062(b)(j)

      5,654,899        5,082,167  

 

  

Shellpoint Asset Funding Trust, Series 2013-1, Class A3, 3.75%, 07/25/2043(b)(j)

      378,721        350,033  

 

  

Sonic Capital LLC,

      

Series 2020-1A, Class A2I, 3.85%, 01/20/2050(b)

      9,194,250        8,441,193  

 

  

Series 2021-1A, Class A2I, 2.19%, 08/20/2051(b)

      5,491,092        4,503,866  

 

  

Series 2021-1A, Class A2II, 2.64%, 08/20/2051(b)

      5,392,508        4,160,470  

 

  

STAR Trust,

      

Series 2021-1, Class A1, 1.22%, 05/25/2065(b)(j)

      5,851,529        5,169,831  

 

  

Series 2021-SFR1, Class B, 5.35% (1 mo. USD LIBOR + 0.75%), 04/17/2038(b)(g)

      3,520,000        3,424,458  

 

  

Series 2021-SFR1, Class C, 5.65% (1 mo. USD LIBOR + 1.05%), 04/17/2038(b)(g)

      4,925,000        4,814,599  

 

  

Series 2021-SFR1, Class D, 5.90% (1 mo. USD LIBOR + 1.30%), 04/17/2038(b)(g)

      6,670,000        6,500,204  

 

  

Starwood Mortgage Residential Trust,

      

Series 2020-1, Class A1, 2.28%, 02/25/2050(b)(j)

      284,320        271,384  

 

  

Series 2020-INV1, Class A1, 1.03%, 11/25/2055(b)(j)

      2,615,552        2,305,860  

 

  

Series 2021-6, Class A1, 1.92%, 11/25/2066(b)(j)

      14,025,803        11,686,368  

 

  

Series 2022-1, Class A1, 2.45%, 12/25/2066(b)(j)

      10,272,575        8,743,382  

 

  
     Principal
Amount		      Value  

 

  

Structured Adjustable Rate Mortgage Loan Trust,

      

Series 2004-12, Class 3A2, 4.32%, 09/25/2034(j)

    $ 242,078      $ 232,520  

 

  

Series 2004-8, Class 3A, 4.96%, 07/25/2034(j)

      661,920        627,177  

 

  

Suntrust Alternative Loan Trust, Series 2005-1F, Class 2A8, 6.00%, 12/25/2035

      90,508        82,625  

 

  

Synchrony Card Funding LLC, Series 2022-A2, Class A, 3.86%, 07/15/2028

      16,117,000        15,689,348  

 

  

Textainer Marine Containers VII Ltd., Series 2021-2A, Class A, 2.23%, 04/20/2046(b)

      12,996,267        11,245,820  

 

  

Thornburg Mortgage Securities Trust,

      

Series 2003-6, Class A2, 5.62% (1 mo. USD LIBOR + 1.00%), 12/25/2033(g)

      221,328        207,948  

 

  

Series 2005-1, Class A3, 4.66%, 04/25/2045(j)

      409,122        383,119  

 

  

TICP CLO XV Ltd., Series 2020-15A, Class A, 6.09% (3 mo. USD LIBOR + 1.28%), 04/20/2033(b)(g)

      9,701,000        9,634,703  

 

  

Towd Point Mortgage Trust, Series 2017-2, Class A1, 2.75%, 04/25/2057(b)(j)

      416,763        412,359  

 

  

Tricon American Homes Trust, Series 2020-SFR2, Class A, 1.48%, 11/17/2039(b)

      12,717,141        10,768,949  

 

  

UBS Commercial Mortgage Trust, Series 2019-C16, Class A4, 3.60%, 04/15/2052

      16,770,000        15,282,342  

 

  

Verus Securitization Trust,

      

Series 2020-1, Class A1, 2.42%, 01/25/2060(b)(k)

      1,689,765        1,601,996  

 

  

Series 2020-1, Class A2, 2.64%, 01/25/2060(b)(k)

      2,127,966        2,014,642  

 

  

Series 2020-INV1, Class A1, 0.33%, 03/25/2060(b)(j)

      434,575        424,768  

 

  

Series 2021-1, Class A1B, 1.32%, 01/25/2066(b)(j)

      2,671,852        2,172,140  

 

  

Series 2021-7, Class A1, 1.83%, 10/25/2066(b)(j)

      11,153,333        9,405,985  

 

  

Series 2021-R1, Class A1, 0.82%, 10/25/2063(b)(j)

      3,825,537        3,441,088  

 

  

Series 2022-1, Class A1, 2.72%, 01/25/2067(b)(k)

      7,731,309        6,890,919  

 

  

Series 2022-3, Class A1, 4.13%, 02/25/2067(b)(k)

      12,261,738        11,483,155  

 

  

Series 2022-7, Class A1, 5.15%, 07/25/2067(b)(k)

      3,879,581        3,784,260  

 

  

Series 2022-INV2, Class A1, 6.79%, 10/25/2067(b)(k)

      5,539,289        5,569,812  

 

  

Visio Trust, Series 2020-1R, Class A1, 1.31%, 11/25/2055(b)

      2,584,025        2,342,480  

 

  

WaMu Mortgage Pass-Through Ctfs. Trust, Series 2007- HY2, Class 2A2, 3.77%, 11/25/2036(j)

      198,965        176,276  

 

  
 

 

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

 

21   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR14, Class A1, 4.08%, 08/25/2035(j)

    $ 96,256      $ 91,443  

 

  

Wendy’s Funding LLC,

      

Series 2018-1A, Class A2II, 3.88%, 03/15/2048(b)

      10,687,500        9,859,677  

 

  

Series 2019-1A, Class A2II, 4.08%, 06/15/2049(b)

      5,005,000        4,572,193  

 

  

WFRBS Commercial Mortgage Trust,

      

Series 2012-C9, Class D, 4.88%, 03/15/2023(b)(j)

      185,099        172,929  

 

  

Series 2013-C14, Class A5, 3.34%, 06/15/2046

      1,485,143        1,474,649  

 

  

Series 2013-C16, Class B, 4.99%, 09/15/2046(j)

      3,127,000        3,029,351  

 

  

Series 2014-C23, Class B, 4.39%, 10/15/2057(j)

      4,693,000        4,502,117  

 

  

Zaxby’s Funding LLC, Series 2021-1A, Class A2, 3.24%, 07/30/2051(b)

      21,638,972        17,990,360  

 

  

Total Asset-Backed Securities
(Cost $1,395,190,995)

         1,261,661,724  

 

  

U.S. Government Sponsored Agency Mortgage-Backed Securities–23.83%

 

Agency Credit Risk Transfer Notes–0.08%

 

Series 2023-R02, Class 1M1, 6.79% (30 Day Average SOFR + 2.30%), 01/25/2043(b)(g)

      3,693,910        3,720,992  

 

  

Collateralized Mortgage Obligations–0.76%

 

Fannie Mae REMICs, IO,

      

7.00%, 05/25/2033(l)

      3,795        690  

 

  

6.00%, 07/25/2033(l)

      2,863        512  

 

  

Freddie Mac Multifamily Structured Pass-Through Ctfs.,

      

Series K038, Class X1, IO, 1.08%, 03/25/2024(m)

      22,080,924        178,908  

 

  

Series K083, Class AM, 4.03%, 10/25/2028(j)

      4,736,000        4,570,320  

 

  

Series K085, Class AM, 4.06%, 10/25/2028(j)

      4,736,000        4,589,914  

 

  

Series K089, Class AM, 3.63%, 01/25/2029(j)

      8,018,000        7,603,834  

 

  

Series K088, Class AM, 3.76%, 01/25/2029(j)

      18,944,000        18,107,698  

 

  
        35,051,876  

 

  
     Principal
Amount		      Value  

 

  

Federal Home Loan Mortgage Corp. (FHLMC)–0.32%

 

3.50%, 08/01/2026

    $ 139,658      $ 136,338  

 

  

7.00%, 05/01/2028 to 06/01/2032

      337,312        344,743  

 

  

6.00%, 03/01/2029 to 02/01/2034

      116,544        118,341  

 

  

7.50%, 05/01/2030 to 05/01/2035

      284,613        290,262  

 

  

8.50%, 08/01/2031

      17,688        18,617  

 

  

3.00%, 02/01/2032

      1,175,562        1,110,485  

 

  

6.50%, 08/01/2032 to 09/01/2036

      68,177        71,325  

 

  

8.00%, 08/01/2032

      12,648        13,139  

 

  

5.50%, 01/01/2034 to 07/01/2040

      808,234        829,236  

 

  

5.00%, 07/01/2034 to 06/01/2040

      992,676        1,001,200  

 

  

4.50%, 02/01/2040 to 10/01/2046

      10,733,990        10,656,636  

 

  

ARM,

      

4.31% (1 yr. USD LIBOR + 2.06%), 12/01/2036(g)

      30,203        30,761  

 

  

3.61% (1 yr. USD LIBOR + 2.20%), 02/01/2037(g)

      5,570        5,507  

 

  

3.49% (1 yr. USD LIBOR + 1.88%), 05/01/2037(g)

      42,472        42,060  

 

  
        14,668,650  

 

  

Federal National Mortgage Association (FNMA)–22.11%

 

6.50%, 07/01/2028 to 01/01/2037

      47,459        48,981  

 

  

7.50%, 02/01/2030 to 08/01/2037

      384,740        398,938  

 

  

9.50%, 04/01/2030

      1,207        1,230  

 

  

3.50%, 12/01/2030 to 05/01/2047

      26,481,100        24,701,027  

 

  

7.00%, 03/01/2032 to 02/01/2034

      167,157        166,079  

 

  

8.50%, 10/01/2032

      26,460        28,073  

 

  

5.50%, 04/01/2033 to 06/01/2040

      326,074        328,459  

 

  

8.00%, 04/01/2033

      24,286        25,650  

 

  

6.00%, 04/01/2037 to 10/01/2039

      7,580        7,785  

 

  

5.00%, 12/01/2039

      296,073        298,524  

 

  

3.00%, 08/01/2043

      2,038,281        1,846,082  

 

  

4.00%, 12/01/2048

      17,494,615        16,770,223  

 

  

ARM,

      

3.71% (1 yr. U.S. Treasury Yield Curve Rate + 2.20%), 05/01/2035(g)

      54,756        55,734  

 

  

3.99% (1 yr. USD LIBOR + 1.64%), 01/01/2037(g)

      27,849        28,155  

 

  

3.05% (1 yr. USD LIBOR + 1.70%), 03/01/2038(g)

      16,888        16,813  

 

  

TBA,

      

2.50%, 03/01/2053(n)

      253,500,000        214,831,346  

 

  

3.00%, 03/01/2053(n)

      21,000,000        18,478,770  

 

  

3.50%, 03/01/2053(n)

      212,000,000        193,035,936  

 

  

4.00%, 03/01/2053(n)

      49,704,000        46,667,396  

 

  

4.50%, 03/01/2053(n)

      49,705,000        47,903,194  

 

  
 

 

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

 

22   Invesco Core Plus Bond Fund

     Principal
Amount		      Value  

 

  

Federal National Mortgage Association (FNMA)–(continued)

 

5.00%, 03/01/2053(n)

    $ 220,000,000      $ 216,321,875  

 

  

5.50%, 03/01/2053(n)

      235,700,000        235,368,547  

 

  
        1,017,328,817  

 

  

Government National Mortgage Association (GNMA)–0.56%

 

ARM,

      

2.63% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 01/20/2025(g)

      4,162        4,123  

 

  

3.00% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 05/20/2025(g)

      1,685        1,671  

 

  

3.50% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 06/20/2025(g)

      2,025        1,993  

 

  

8.00%, 08/15/2025 to 09/15/2026

      8,771        8,769  

 

  

6.56%, 01/15/2027

      51,738        53,123  

 

  

7.00%, 10/15/2028 to 09/15/2032

      71,532        70,960  

 

  

6.00%, 11/15/2028 to 02/15/2033

      35,409        36,172  

 

  

6.50%, 01/15/2029 to 09/15/2034

      51,003        52,792  

 

  

7.50%, 05/15/2031 to 05/15/2032

      3,837        3,858  

 

  

5.50%, 06/15/2035

      26,550        27,421  

 

  

5.00%, 07/15/2035

      2,430        2,439  

 

  

4.00%, 03/20/2048

      2,995,202        2,842,891  

 

  

TBA,
5.00%, 03/01/2053(n)

      23,000,000        22,730,469  

 

  
        25,836,681  

 

  

Total U.S. Government Sponsored Agency Mortgage-Backed Securities
(Cost $1,123,616,575)

 

      1,096,607,016  

 

  

U.S. Treasury Securities–11.71%

 

U.S. Treasury Bills–0.34%

 

3.78% - 4.15%,
03/09/2023(o)(p)

      3,855,000        3,851,629  

 

  

4.48% - 4.55%,
05/11/2023(o)(p)

      11,847,000        11,738,295  

 

  
        15,589,924  

 

  

U.S. Treasury Bonds–2.54%

 

4.00%, 11/15/2052

      114,662,800        116,741,063  

 

  

U.S. Treasury Notes–8.83%

 

4.63%, 02/28/2025

      14,406,000        14,360,419  

 

  

4.00%, 02/15/2026

      1,907,600        1,881,296  

 

  

4.00%, 02/29/2028

      185,437,500        184,075,693  

 

  

4.00%, 02/28/2030

      9,106,000        9,072,564  

 

  

3.50%, 02/15/2033

      200,107,200        193,525,550  

 

  

3.88%, 02/15/2043

      3,552,000        3,446,550  

 

  
        406,362,072  

 

  

Total U.S. Treasury Securities
(Cost $542,710,353)

 

      538,693,059  

 

  
     Shares         

Preferred Stocks–1.83%

 

Asset Management & Custody Banks–0.01%

 

Bank of New York Mellon Corp. (The), 4.70%, Series G, Pfd.(d)

      302,000        294,450  

 

  
    

    

Shares

      Value  

 

  

Diversified Banks–1.21%

 

Bank of America Corp., 7.25%, Series L, Conv. Pfd.

      1,100      $ 1,313,224  

 

  

Citigroup, Inc., 6.25%, Series T,
Pfd.(c)(d)

      5,247,000        5,240,651  

 

  

Citigroup, Inc., 5.00%, Series U,
Pfd.(d)

      13,825,000        13,168,313  

 

  

Citigroup, Inc., 4.00%, Series W,
Pfd.(d)

      7,226,000        6,629,855  

 

  

Wells Fargo & Co., 7.50%, Class A, Series L, Conv. Pfd.

      24,803        29,588,243  

 

  
        55,940,286  

 

  

Integrated Telecommunication Services–0.21%

 

AT&T, Inc., 2.88%, Series B, Pfd.(d)

      9,700,000        9,528,827  

 

  

Investment Banking & Brokerage–0.27%

 

Goldman Sachs Group, Inc. (The), 7.73% (3 mo. USD LIBOR + 2.87%), Series P, Pfd.(c)(g)

      6,141,000        6,097,399  

 

  

Morgan Stanley, 6.88%, Series F,
Pfd.(d)

      249,737        6,328,336  

 

  
        12,425,735  

 

  

Multi-Utilities–0.10%

 

CenterPoint Energy, Inc., 6.13%, Series A, Pfd.(d)

      4,568,000        4,487,213  

 

  

Other Diversified Financial Services–0.03%

 

Equitable Holdings, Inc., 4.95%, Series B, Pfd.(d)

      1,682,000        1,624,501  

 

  

Total Preferred Stocks (Cost $89,824,586)

 

      84,301,012  

 

  
    

Principal

Amount

         

Agency Credit Risk Transfer Notes–0.79%

 

Fannie Mae Connecticut Avenue Securities,

      

Series 2019-R03, Class 1M2, 6.77% (1 mo. USD LIBOR + 2.15%), 09/25/2031(b)(g)

    $ 310,002        310,039  

 

  

Series 2019-R06, Class 2M2, 6.72% (1 mo. USD LIBOR + 2.10%), 09/25/2039(b)(g)

      20,393        20,394  

 

  

Series 2022-R03, Class 1M1, 6.58% (30 Day Average SOFR + 2.10%), 03/25/2042(b)(g)

      11,499,100        11,534,594  

 

  

Series 2022-R04, Class 1M1, 6.48% (30 Day Average SOFR + 2.00%), 03/25/2042(b)(g)

      6,008,868        6,032,932  

 

  
 

 

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

 

23   Invesco Core Plus Bond Fund

     Principal         
     Amount      Value  

 

  

Freddie Mac,

      

Series 2022-DNA3, Series M1, STACR®, 0.00% (30 Day Average SOFR + 2.00%), 04/25/2042(b)(g)

    $ 8,626,129      $ 8,668,314  

 

  

Series 2022-HQA3, Class M1, STACR®, 6.78% (30 Day Average SOFR + 2.30%), 08/25/2042(b)(g)

      5,021,654        5,054,089  

 

  

Series 2020-DNA5, Class M2, STACR®, 7.28% (30 Day Average SOFR + 2.80%), 10/25/2050(b)(g)

      4,577,982        4,640,593  

 

  

Total Agency Credit Risk Transfer Notes
(Cost $36,073,353)

 

      36,260,955  

 

  

Municipal Obligations–0.35%

 

California (State of) Health Facilities Financing Authority (Social Bonds),

      

Series 2022, RB, 4.19%, 06/01/2037

      4,000,000        3,676,448  

 

  

Series 2022, RB, 4.35%, 06/01/2041

      2,980,000        2,707,868  

 

  

California State University,

      

Series 2021 B, Ref. RB, 2.72%, 11/01/2052

      5,145,000        3,601,433  

 

  

Series 2021 B, Ref. RB, 2.94%, 11/01/2052

      7,705,000        5,565,686  

 

  

Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4), Series 2010 A, RB, 6.66%, 04/01/2057

      527,000        584,366  

 

  

Total Municipal Obligations
(Cost $18,509,773)

 

      16,135,801  

 

  

Non-U.S. Dollar Denominated Bonds & Notes–0.33%(q)

 

Brewers–0.03%

 

Molson Coors International L.P., Series MPLE, 3.44%, 07/15/2026

      CAD  1,626,000        1,129,605  

 

  

Diversified Banks–0.05%

 

HSBC Holdings PLC (United Kingdom), Series MPLE, 3.20%, 12/05/2023(b)

      CAD  3,253,000        2,351,105  

 

  

Integrated Telecommunication Services–0.06%

 

AT&T, Inc., Series MPLE, 5.10%, 11/25/2048

      CAD  4,065,000        2,741,186  

 

  

Movies & Entertainment–0.12%

 

Netflix, Inc., 3.88%, 11/15/2029(b)

      EUR  5,311,000        5,356,247  

 

  

Sovereign Debt–0.02%

 

Ukraine Government International Bond (Ukraine), 4.38%, 01/27/2032(b)(i)

      EUR  6,000,000        1,117,248  

 

  

Technology Hardware, Storage & Peripherals–0.05%

 

Apple, Inc., Series MPLE, 2.51%, 08/19/2024

      CAD  3,253,000        2,307,344  

 

  

Total Non-U.S. Dollar Denominated Bonds & Notes
(Cost $21,709,063)

 

      15,002,735  

 

  
    

    

Shares

      Value  

 

  

Exchange-Traded Funds–0.10%

 

Invesco Total Return Bond ETF (Cost $5,786,000)(r)

      100,000      $ 4,692,000  

 

  
     Principal         
     Amount         

Variable Rate Senior Loan Interests–0.03%(s)(t)

 

Diversified REITs–0.03%

 

Asterix, Inc. (Canada), Term Loan, 3.90%, 03/31/2023 (Cost $1,255,792)(h)

    $ 1,679,120        1,234,021  

 

  
     Shares         

Common Stocks & Other Equity Interests–0.00%

 

Agricultural Products–0.00%

 

Locus Agriculture Solutions, Inc., Wts., expiring 12/31/2032(h)(u)

      80        0  

 

  

Oil & Gas Drilling–0.00%

 

Vantage Drilling International(u)

      95        1,532  

 

  

Paper Packaging–0.00%

 

WestRock Co.

      65        2,041  

 

  

Specialty Chemicals–0.00%

 

Ingevity Corp.(u)

      10        826  

 

  

Total Common Stocks & Other Equity Interests
(Cost $5,671)

 

      4,399  

 

  

Money Market Funds–9.11%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(r)(v)

      146,796,181        146,796,181  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(r)(v)

      104,819,020        104,839,984  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(r)(v)

      167,767,065        167,767,065  

 

  

Total Money Market Funds
(Cost $419,410,528)

 

      419,403,230  

 

  

Options Purchased–0.02%

 

(Cost $2,356,204)(w)

 

      951,060  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-121.53%
(Cost $5,945,311,656)

         5,592,329,103  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–5.77%

      

Invesco Private Government Fund, 4.58%(r)(v)(x)

      73,973,272        73,973,272  

 

  

Invesco Private Prime Fund, 4.83%(r)(v)(x)

      191,317,865        191,356,122  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $265,338,392)

 

      265,329,394  

 

  

TOTAL INVESTMENTS IN
SECURITIES–127.30%
(Cost $6,210,650,048)

 

      5,857,658,497  

 

  

OTHER ASSETS LESS LIABILITIES–(27.30)%

 

      (1,256,200,842 ) 

 

  

NET ASSETS–100.00%

       $ 4,601,457,655  

 

  
 

 

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

 

24   Invesco Core Plus Bond Fund

Investment Abbreviations:

 

ARM    – Adjustable Rate Mortgage
CAD    – Canadian Dollar
Conv.    – Convertible
Ctfs.    – Certificates
ETF    – Exchange-Traded Fund
EUR    – Euro
IO    – Interest Only
LIBOR    – London Interbank Offered Rate
Pfd.    – Preferred
RB    – Revenue Bonds
Ref.    – Refunding
REIT    – Real Estate Investment Trust
REMICs    – Real Estate Mortgage Investment Conduits
SOFR    – Secured Overnight Financing Rate
STACR®    – Structured Agency Credit Risk
TBA    – To Be Announced
USD    – U.S. Dollar
Wts.    – Warrants

Notes to Schedule of Investments:

 

(a) 

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

(b) 

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 February 28, 2023 was $1,898,454,832, which represented 41.26% of the Fund’s Net Assets.

(c) 

All or a portion of this security was out on loan at February 28, 2023.

(d) 

Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate.

(e) 

Perpetual bond with no specified maturity date.

(f) 

Zero coupon bond issued at a discount. The interest rate shown represents the yield to maturity at issue.

(g) 

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2023.

(h) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

(i) 

Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 28, 2023 was $1,117,248, which represented less than 1% of the Fund’s Net Assets.

(j) 

Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on February 28, 2023.

(k) 

Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.

(l) 

Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security.

(m) 

Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on February 28, 2023.

(n) 

Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1P.

(o) 

All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L.

(p) 

Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

(q) 

Foreign denominated security. Principal amount is denominated in the currency indicated.

(r) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

    

Value

August 31, 2022

    

Purchases

at Cost

    

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

(Loss)

    

Value

February 28, 2023

     Dividend Income  
Invesco Total Return Bond ETF       $ 4,826,000         $ -         $ -         $ (134,000 )        $ -         $ 4,692,000         $ 95,530  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     28,528,503       478,503,649       (360,235,971 )      -       -       146,796,181       928,693  

Invesco Liquid Assets Portfolio, Institutional Class

     20,483,790       341,788,321       (257,415,164 )      (10,938 )      (6,025 )      104,839,984       687,387  

Invesco Treasury Portfolio, Institutional Class

     32,604,004       546,861,313       (411,698,252 )      -       -       167,767,065       1,059,042  

 

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

 

25   Invesco Core Plus Bond Fund

                      Change in                    
                      Unrealized     Realized              
    Value     Purchases     Proceeds     Appreciation     Gain     Value        
     August 31, 2022     at Cost     from Sales     (Depreciation)     (Loss)     February 28, 2023     Dividend Income  
Investments Purchased with Cash Collateral from Securities on Loan:                                                        

Invesco Private Government Fund

   $ 60,813,993     $ 259,210,644     $ (246,051,365 )    $ -     $ -     $ 73,973,272     $ 1,652,433 * 

Invesco Private Prime Fund

     157,313,815       565,314,129       (531,319,682 )      (18,655 )      66,515       191,356,122       4,510,148 * 

Total

   $ 304,570,105     $ 2,191,678,056     $ (1,806,720,434 )    $ (163,593 )    $ 60,490     $ 689,424,624     $ 8,933,233  

 

  *

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

 

(s) 

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 any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years.

(t) 

Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

(u) 

Non-income producing security.

(v) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(w) 

The table below details options purchased.

(x) 

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

 

Open Exchange-Traded Index Options Purchased
Description   

Type of

Contract

   

Expiration

Date

   

Number of

Contracts

   

Exercise

Price

   

Notional

Value(a)

    Value

Equity Risk

                              

S&P 500 Index

    Call    07/21/2023    132    USD  4,260.00    USD  56,232,000    $951,060

 

(a) 

Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier.

 

Open Exchange-Traded Index Options Written  

 

  
Description   

Type of

Contract

    Expiration
Date		    Number of
Contracts		    Exercise Price   

Notional

Value(a)

    Value  

 

  

Equity Risk

                  

 

  

S&P 500 Index

    Call    07/21/2023    42    USD  4,400.00    USD  18,480,000    $ (142,380 ) 

 

  

 

(a) 

Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier.

 

Open Futures Contracts  
Long Futures Contracts    Number of
Contracts		    Expiration
Month		      Notional Value     Value     Unrealized
Appreciation
(Depreciation)		  

Interest Rate Risk

                                           

U.S. Treasury 2 Year Notes

      1,188        June-2023          $ 242,027,156         $ (723,939 )        $ (723,939 ) 

U.S. Treasury 10 Year Notes

      8        June-2023        893,250       (250 )      (250 ) 

U.S. Treasury Long Bonds

      321        June-2023        40,195,219       (75,234 )      (75,234 ) 

U.S. Treasury Ultra Bonds

      1,033        June-2023        139,519,562       314,788       314,788  

Subtotal-Long Futures Contracts

                                (484,635 )      (484,635 ) 

Short Futures Contracts

                                           

Interest Rate Risk

                                           

U.S. Treasury 5 Year Notes

      531        June-2023        (56,846,039 )      95,414       95,414  

U.S. Treasury 10 Year Ultra Notes

      4,740        June-2023        (555,468,750 )      74,633       74,633  

Subtotal-Short Futures Contracts

                                170,047       170,047  

Total Futures Contracts

                                  $ (314,588 )    $ (314,588 ) 

 

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

 

26   Invesco Core Plus Bond Fund

Open Forward Foreign Currency Contracts  
Settlement         Contract to      Unrealized  
Date    Counterparty    Deliver      Receive      Appreciation  

Currency Risk

                           

05/17/2023

    Canadian Imperial Bank of Commerce    CAD   15,893,000      USD   11,843,697        $185,651  

05/17/2023

    State Street Bank & Trust Co.    EUR   11,490,000      USD   12,403,455        196,823  

Total Forward Foreign Currency Contracts

                        $382,474  

Abbreviations:

 

CAD   –Canadian Dollar
EUR   –Euro
USD   –U.S. Dollar

Portfolio Composition

By security type, based on Total Investments

as of February 28, 2023

 

U.S. Dollar Denominated Bonds & Notes

      36.15 % 

Asset-Backed Securities

      21.54  

U.S. Government Sponsored Agency Mortgage-Backed Securities

      18.72  

U.S. Treasury Securities

      9.20  

Preferred Stocks

      1.44  

Security types each less than 1% of portfolio

      1.28  

Money Market Funds

      11.69  

 

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

 

27   Invesco Core Plus Bond Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

 

Investments in unaffiliated securities, at value
(Cost $5,520,115,128)*

    $ 5,168,233,873  

 

  

Investments in affiliates, at value
(Cost $690,534,920)

      689,424,624  

 

  

Other investments:

   

Unrealized appreciation on forward foreign currency contracts outstanding

      382,474  

 

  

Deposits with brokers:

   

Cash collateral – OTC Derivatives

      1,510  

 

  

Cash collateral – TBA commitments

      6,602,051  

 

  

Foreign currencies, at value (Cost $5,826,734)

      5,750,947  

 

  

Receivable for:

   

Investments sold

      164,296,083  

 

  

Fund shares sold

      6,573,672  

 

  

Dividends

      1,866,421  

 

  

Interest

      32,218,491  

 

  

Investments matured, at value (Cost $4,311,914)

      931,398  

 

  

Principal paydowns

      3,070  

 

  

Investment for trustee deferred compensation and retirement plans

      110,606  

 

  

Other assets

      111,835  

 

  

Total assets

      6,076,507,055  

 

  

Liabilities:

   

Other investments:

   

Options written, at value (premiums received $164,499)

      142,380  

 

  

Variation margin payable – futures contracts

      633,706  

 

  

Payable for:

   

Investments purchased

      183,519,260  

 

  

TBA sales commitment

      1,014,476,105  

 

  

Dividends

      2,087,768  

 

  

Fund shares reacquired

      4,993,622  

 

  

Amount due custodian

      2,185,969  

 

  

Collateral upon return of securities loaned

      265,338,392  

 

  

Accrued fees to affiliates

      1,163,927  

 

  

Accrued trustees’ and officers’ fees and benefits

      4,358  

 

  

Accrued other operating expenses

      362,395  

 

  

Trustee deferred compensation and retirement plans

      141,518  

 

  

Total liabilities

      1,475,049,400  

 

  

Net assets applicable to shares outstanding

    $ 4,601,457,655  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 5,550,295,776  

 

  

Distributable earnings (loss)

      (948,838,121 ) 

 

  
   $ 4,601,457,655  

 

  

Net Assets:

   

Class A

    $ 1,203,147,303  

 

  

Class C

    $ 50,193,701  

 

  

Class R

    $ 26,204,036  

 

  

Class Y

    $ 940,788,934  

 

  

Class R5

    $ 13,938,577  

 

  

Class R6

    $ 2,367,185,104  

 

  

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

   

Class A

      130,697,875  

 

  

Class C

      5,453,870  

 

  

Class R

      2,847,147  

 

  

Class Y

      102,124,575  

 

  

Class R5

      1,514,867  

 

  

Class R6

      257,338,615  

 

  

Class A:

   

Net asset value per share

    $ 9.21  

 

  

Maximum offering price per share
(Net asset value of $9.21 ÷ 95.75%)

    $ 9.62  

 

  

Class C:

   

Net asset value and offering price per share

    $ 9.20  

 

  

Class R:

   

Net asset value and offering price per share

    $ 9.20  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 9.21  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 9.20  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 9.20  

 

  

 

*

At February 28, 2023, securities with an aggregate value of $257,419,704 were on loan to brokers.

 

 

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

 

28   Invesco Core Plus Bond Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Interest (net of foreign withholding taxes of $(46,527))

    $ 102,859,184  

 

  

Dividends

      1,194,643  

 

  

Dividends from affiliates (includes net securities lending income of $487,736)

      3,258,388  

 

  

Total investment income

      107,312,215  

 

  

Expenses:

   

Advisory fees

      8,825,113  

 

  

Administrative services fees

      314,284  

 

  

Custodian fees

      86,949  

 

  

Distribution fees:

   

Class A

      1,462,892  

 

  

Class C

      256,475  

 

  

Class R

      62,656  

 

  

Transfer agent fees – A, C, R and Y

      1,704,241  

 

  

Transfer agent fees – R5

      6,770  

 

  

Transfer agent fees – R6

      348,012  

 

  

Trustees’ and officers’ fees and benefits

      19,720  

 

  

Registration and filing fees

      107,042  

 

  

Reports to shareholders

      157,032  

 

  

Professional services fees

      48,764  

 

  

Other

      23,960  

 

  

Total expenses

      13,423,910  

 

  

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

      (1,034,761 ) 

 

  

Net expenses

      12,389,149  

 

  

Net investment income

      94,923,066  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (241,651,588 ) 

 

  

Affiliated investment securities

      60,490  

 

  

Foreign currencies

      5,459  

 

  

Forward foreign currency contracts

      296,665  

 

  

Futures contracts

      10,733,680  

 

  

Option contracts written

      447,288  

 

  

Swap agreements

      (1,335,449 ) 

 

  
     (231,443,455 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      121,905,641  

 

  

Affiliated investment securities

      (163,593 ) 

 

  

Foreign currencies

      (68,463 ) 

 

  

Forward foreign currency contracts

      (270,311 ) 

 

  

Futures contracts

      (4,248,866 ) 

 

  

Option contracts written

      (371,079 ) 

 

  
     116,783,329  

 

  

Net realized and unrealized gain (loss)

      (114,660,126 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (19,737,060 ) 

 

  

 

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

 

29   Invesco Core Plus Bond Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,     August 31,  
     2023     2022  

 

  

Operations:

     

Net investment income

    $ 94,923,066     $ 136,115,494  

 

  

Net realized gain (loss)

      (231,443,455 )      (345,598,105 ) 

 

  

Change in net unrealized appreciation (depreciation)

      116,783,329       (612,669,926 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      (19,737,060 )      (822,152,537 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (26,933,144 )      (46,793,655 ) 

 

  

Class C

      (984,032 )      (1,969,609 ) 

 

  

Class R

      (544,392 )      (880,664 ) 

 

  

Class Y

      (21,299,785 )      (45,692,099 ) 

 

  

Class R5

      (328,583 )      (506,235 ) 

 

  

Class R6

      (56,208,106 )      (101,570,665 ) 

 

  

Total distributions from distributable earnings

      (106,298,042 )      (197,412,927 ) 

 

  

Share transactions–net:

     

Class A

      30,620,219       (38,051,571 ) 

 

  

Class C

      (4,013,123 )      (21,448,475 ) 

 

  

Class R

      988,826       1,636,528  

 

  

Class Y

      8,364,236       (215,267,957 ) 

 

  

Class R5

      300,660       3,366,309  

 

  

Class R6

      24,487,594       (30,369,092 ) 

 

  

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

      60,748,412       (300,134,258 ) 

 

  

Net increase (decrease) in net assets

      (65,286,690 )      (1,319,699,722 ) 

 

  

Net assets:

     

Beginning of period

      4,666,744,345       5,986,444,067  

 

  

End of period

    $ 4,601,457,655     $ 4,666,744,345  

 

  

 

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

 

30   Invesco Core Plus Bond Fund

Financial Highlights

(Unaudited)

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

 

     

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Return of

capital

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of
net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                               

Six months ended 02/28/23

      $  9.45        $0.19        $(0.22 )        $(0.03 )        $(0.21 )        $     –         $    –         $(0.21 )        $  9.21         (0.28 )%      $1,203,147        0.75 %(d)      0.84 %(d)      4.08 %(d)      216 % 

Year ended 08/31/22

      11.39       0.24       (1.83 )      (1.59 )      (0.24 )      (0.11 )      –       (0.35 )      9.45       (14.19 )      1,203,731       0.75       0.81       2.30       321  

Year ended 08/31/21

      11.61       0.19       0.17       0.36       (0.22 )      (0.36 )      –       (0.58 )      11.39       3.18       1,497,641       0.74       0.79       1.70       366  

Year ended 08/31/20

      11.13       0.29       0.51       0.80       (0.32 )      –       –       (0.32 )      11.61       7.29       1,364,591       0.75       0.82       2.55       329  

Year ended 08/31/19

      10.53       0.36       0.62       0.98       (0.32 )      –       (0.06 )      (0.38 )      11.13       9.57       1,079,416       0.74       0.84       3.41       250  

Year ended 08/31/18

      11.03       0.31       (0.48 )      (0.17 )      (0.32 )      –       (0.01 )      (0.33 )      10.53       (1.51 )      887,784       0.74       0.82       2.96       383  

Class C

                               

Six months ended 02/28/23

      9.45       0.15       (0.23 )      (0.08 )      (0.17 )      –       –       (0.17 )      9.20       (0.77 )      50,194       1.50 (d)      1.59 (d)      3.33 (d)      216  

Year ended 08/31/22

      11.38       0.16       (1.81 )      (1.65 )      (0.17 )      (0.11 )      –       (0.28 )      9.45       (14.76 )      55,695       1.50       1.56       1.55       321  

Year ended 08/31/21

      11.61       0.11       0.16       0.27       (0.14 )      (0.36 )      –       (0.50 )      11.38       2.32       90,811       1.49       1.54       0.95       366  

Year ended 08/31/20

      11.12       0.20       0.52       0.72       (0.23 )      –       –       (0.23 )      11.61       6.59       107,350       1.50       1.57       1.80       329  

Year ended 08/31/19

      10.53       0.28       0.61       0.89       (0.24 )      –       (0.06 )      (0.30 )      11.12       8.67       87,046       1.49       1.59       2.66       250  

Year ended 08/31/18

      11.02       0.24       (0.48 )      (0.24 )      (0.24 )      –       (0.01 )      (0.25 )      10.53       (2.16 )      123,285       1.49       1.57       2.21       383  

Class R

                               

Six months ended 02/28/23

      9.45       0.17       (0.22 )      (0.05 )      (0.20 )      –       –       (0.20 )      9.20       (0.52 )      26,204       1.00 (d)      1.09 (d)      3.83 (d)      216  

Year ended 08/31/22

      11.38       0.21       (1.81 )      (1.60 )      (0.22 )      (0.11 )      –       (0.33 )      9.45       (14.33 )      25,914       1.00       1.06       2.05       321  

Year ended 08/31/21

      11.61       0.16       0.16       0.32       (0.19 )      (0.36 )      –       (0.55 )      11.38       2.83       29,466       0.99       1.04       1.45       366  

Year ended 08/31/20

      11.12       0.26       0.52       0.78       (0.29 )      –       –       (0.29 )      11.61       7.12       23,193       1.00       1.07       2.30       329  

Year ended 08/31/19

      10.53       0.33       0.61       0.94       (0.29 )      –       (0.06 )      (0.35 )      11.12       9.21       17,598       0.99       1.09       3.16       250  

Year ended 08/31/18

      11.02       0.29       (0.47 )      (0.18 )      (0.30 )      –       (0.01 )      (0.31 )      10.53       (1.67 )      14,134       0.99       1.07       2.71       383  

Class Y

                               

Six months ended 02/28/23

      9.46       0.20       (0.23 )      (0.03 )      (0.22 )      –       –       (0.22 )      9.21       (0.26 )      940,789       0.50 (d)      0.59 (d)      4.33 (d)      216  

Year ended 08/31/22

      11.40       0.27       (1.83 )      (1.56 )      (0.27 )      (0.11 )      –       (0.38 )      9.46       (13.95 )      961,066       0.50       0.56       2.55       321  

Year ended 08/31/21

      11.62       0.22       0.17       0.39       (0.25 )      (0.36 )      –       (0.61 )      11.40       3.43       1,407,185       0.49       0.54       1.95       366  

Year ended 08/31/20

      11.14       0.31       0.51       0.82       (0.34 )      –       –       (0.34 )      11.62       7.56       1,170,121       0.50       0.57       2.80       329  

Year ended 08/31/19

      10.54       0.39       0.62       1.01       (0.35 )      –       (0.06 )      (0.41 )      11.14       9.84       892,952       0.49       0.59       3.66       250  

Year ended 08/31/18

      11.03       0.35       (0.48 )      (0.13 )      (0.35 )      –       (0.01 )      (0.36 )      10.54       (1.17 )      932,839       0.49       0.57       3.21       383  

Class R5

                               

Six months ended 02/28/23

      9.45       0.20       (0.23 )      (0.03 )      (0.22 )      –       –       (0.22 )      9.20       (0.26 )      13,939       0.50 (d)      0.53 (d)      4.33 (d)      216  

Year ended 08/31/22

      11.38       0.26       (1.81 )      (1.55 )      (0.27 )      (0.11 )      –       (0.38 )      9.45       (13.89 )      14,000       0.50       0.52       2.55       321  

Year ended 08/31/21

      11.61       0.22       0.16       0.38       (0.25 )      (0.36 )      –       (0.61 )      11.38       3.35       13,274       0.49       0.51       1.95       366  

Year ended 08/31/20

      11.12       0.31       0.52       0.83       (0.34 )      –       –       (0.34 )      11.61       7.65       11,555       0.50       0.54       2.80       329  

Year ended 08/31/19

      10.53       0.39       0.61       1.00       (0.35 )      –       (0.06 )      (0.41 )      11.12       9.75       7,586       0.49       0.54       3.66       250  

Year ended 08/31/18

      11.03       0.34       (0.48 )      (0.14 )      (0.35 )      –       (0.01 )      (0.36 )      10.53       (1.27 )      5,660       0.49       0.50       3.21       383  

Class R6

                               

Six months ended 02/28/23

      9.45       0.20       (0.23 )      (0.03 )      (0.22 )      –       –       (0.22 )      9.20       (0.25 )      2,367,185       0.46 (d)      0.46 (d)      4.37 (d)      216  

Year ended 08/31/22

      11.38       0.27       (1.81 )      (1.54 )      (0.28 )      (0.11 )      –       (0.39 )      9.45       (13.85 )      2,406,339       0.45       0.45       2.60       321  

Year ended 08/31/21

      11.60       0.23       0.17       0.40       (0.26 )      (0.36 )      –       (0.62 )      11.38       3.51       2,948,067       0.41       0.42       2.03       366  

Year ended 08/31/20

      11.12       0.32       0.51       0.83       (0.35 )      –       –       (0.35 )      11.60       7.62       2,746,570       0.45       0.45       2.85       329  

Year ended 08/31/19

      10.52       0.39       0.62       1.01       (0.35 )      –       (0.06 )      (0.41 )      11.12       9.91       2,159,063       0.44       0.45       3.71       250  

Year ended 08/31/18

      11.02       0.35       (0.48 )      (0.13 )      (0.36 )      –       (0.01 )      (0.37 )      10.52       (1.21 )      2,120,867       0.43       0.44       3.27       383  

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

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

(d) 

Annualized.

 

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

 

31   Invesco Core Plus Bond Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

The Fund’s investment objective is total return, comprised of current income and capital appreciation.

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

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

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

A.

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

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Swap agreements are fair valued using an evaluated quote, if available, 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, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and

 

32   Invesco Core Plus Bond Fund

unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

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

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

The Fund allocates 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

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

E.

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

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

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

F.

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

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are

 

33   Invesco Core Plus Bond Fund

net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $761 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.

J.

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

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

K.

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

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

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

L.

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 Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

M.

Call Options Purchased and Written – The Fund may write call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. An uncovered call option exists without the ownership of the underlying security. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent 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 and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. 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. The risk in writing an uncovered call option is that the Fund may incur significant losses if the value of the written security exceeds the exercise price of the option.

When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

N.

Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or

 

34   Invesco Core Plus Bond Fund

futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

O.

Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). 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 net asset value (“NAV”) per share 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 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.

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

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 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.

An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.

Changes in the value of centrally cleared and OTC 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. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. 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. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the

 

35   Invesco Core Plus Bond Fund

terms of its ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

Notional amounts of each individual credit default swap agreement outstanding as of February 28, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

P.

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.

Dollar roll transactions involve the risk that a Counterparty 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 roll 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.

Q.

LIBOR Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. Although the publication of most LIBOR rates ceased at the end of 2021, a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly transition away from these rates.

There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.

R.

Leverage Risk – Leverage exists when the 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.

S.

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. This practice does not apply to securities pledged as collateral for securities lending transactions.

T.

Other Risks – The Fund 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 Fund may not be able to recover its investment in such issuer from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government.

Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.

U.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $500 million

      0.450%  

 

  

Next $500 million

      0.425%  

 

  

Next $1.5 billion

      0.400%  

 

  

Next $2.5 billion

      0.375%  

 

  

Over $5 billion

      0.350%  

 

  

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.40%.

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

The Adviser has contractually agreed, through at least December 31, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.75%, 1.50%, 1.00%, 0.50%, 0.50% and 0.50%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees.

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $58,027 and reimbursed class level expenses of $532,413, $23,211, $11,418, $400,786, $2,132 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.

 

36   Invesco Core Plus Bond Fund

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $51,973 in front-end sales commissions from the sale of Class A shares and $9,339 and $1,003 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total

Investments in Securities

                                

U.S. Dollar Denominated Bonds & Notes

    $ –        $2,078,626,561        $38,755,530      $2,117,382,091

Asset-Backed Securities

      –        1,243,700,664        17,961,060      1,261,661,724

U.S. Government Sponsored Agency Mortgage-Backed Securities

      –        1,096,607,016        –      1,096,607,016

U.S. Treasury Securities

      –        538,693,059        –      538,693,059

Preferred Stocks

      37,229,803        47,071,209        –      84,301,012

Agency Credit Risk Transfer Notes

      –        36,260,955        –      36,260,955

Municipal Obligations

      –        16,135,801        –      16,135,801

Non-U.S. Dollar Denominated Bonds & Notes

      –        15,002,735        –      15,002,735

Exchange-Traded Funds

      4,692,000        –        –      4,692,000

Variable Rate Senior Loan Interests

      –        –        1,234,021      1,234,021

Common Stocks & Other Equity Interests

      4,399        –        –      4,399

Money Market Funds

      419,403,230        265,329,394        –      684,732,624

Options Purchased

      951,060        –        –      951,060

Total Investments in Securities

      462,280,492        5,337,427,394        57,950,611      5,857,658,497

Other Investments - Assets*

                                

Investments Matured

      –        931,398        –      931,398

Futures Contracts

      484,835        –        –      484,835

Forward Foreign Currency Contracts

      –        382,474        –      382,474
       484,835        1,313,872        –      1,798,707

 

37   Invesco Core Plus Bond Fund

     Level 1     Level 2      Level 3      Total  

 

  

Other Investments - Liabilities*

           

 

  

Futures Contracts

    $ (799,423 )    $ –      $ –      $ (799,423 ) 

 

  

Options Written

      (142,380 )      –        –        (142,380 ) 

 

  
     (941,803 )      –        –        (941,803 ) 

 

  

Total Other Investments

      (456,968 )      1,313,872        –        856,904  

 

  

Total Investments

    $ 461,823,524     $ 5,338,741,266      $ 57,950,611      $ 5,858,515,401  

 

  

 

*

Forward foreign currency contracts and futures contracts are valued at unrealized appreciation (depreciation). Investments matured and options written are shown at value.

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) during the six months ended February 28, 2023:

 

     Value 08/31/22    

Purchases

at Cost

     Proceeds from
Sales		     Accrued
Discounts/
Premiums		     Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Transfers
into
Level 3		   Transfers
out of
Level 3		   Value 02/28/23

U.S. Dollar Denominated Bonds & Notes

       $ 23,276,789         $ 15,459,000         $ –         $ –         $ –         $ 19,741         $–       $–       $38,755,530

Asset-Backed Securities

     19,074,298       –       –       22,741       –       (1,135,979 )          –         –   17,961,060

Variable Rate Senior Loan Interests

     5,233,346       –       (3,820,971 )      –       (27,894 )      (150,460 )          –         –   1,234,021

Total

       $ 47,584,433         $ 15,459,000         $ (3,820,971 )        $ 22,741         $ (27,894 )        $ (1,266,698 )        $–       $–       $57,950,611

NOTE 4–Derivative Investments

The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  

Derivative Assets

   

Currency

Risk

     

Equity

Risk

    

Interest

Rate Risk

    

Total

  

 

  

Unrealized appreciation on futures contracts – Exchange-Traded(a)

    $ –      $ –     $ 484,835     $ 484,835  

 

  

Unrealized appreciation on forward foreign currency contracts outstanding

      382,474        –       –       382,474  

 

  

Options purchased, at value – Exchange-Traded(b)

      –        951,060       –       951,060  

 

  

Total Derivative Assets

      382,474        951,060       484,835       1,818,369  

 

  

Derivatives not subject to master netting agreements

      –        (951,060 )      (484,835 )      (1,435,895 ) 

 

  

Total Derivative Assets subject to master netting agreements

    $ 382,474      $ –     $ –     $ 382,474  

 

  
     Value  

Derivative Liabilities

   

Equity

Risk

    

Interest

Rate Risk

    

Total

  

 

  

Unrealized depreciation on futures contracts – Exchange-Traded(a)

    $ –     $ (799,423 )    $ (799,423 ) 

 

  

Options written, at value – Exchange-Traded

      (142,380 )      –       (142,380 ) 

 

  

Total Derivative Liabilities

      (142,380 )      (799,423 )      (941,803 ) 

 

  

Derivatives not subject to master netting agreements

      142,380       799,423       941,803  

 

  

Total Derivative Liabilities subject to master netting agreements

    $ –     $ –     $ –  

 

  

 

(a) 

The daily variation margin receivable (payable) at period end is recorded in the Statement of Assets and Liabilities.

(b)

Options purchased, at value as reported in the Schedule of Investments.

 

38   Invesco Core Plus Bond Fund

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2023.

 

    

Financial

Derivative

Assets

        

Collateral
(Received)/Pledged

     

Counterparty

   

Forward Foreign

Currency Contracts

   

Net Value of

Derivatives

   

Non-Cash

   

Cash

   

Net

Amount

Canadian Imperial Bank of Commerce

    $185,651    $185,651    $–    $–    $185,651

State Street Bank & Trust Co.

      196,823      196,823      –      –      196,823

Total

    $382,474    $382,474    $–    $–    $382,474

Effect of Derivative Investments for the six months ended February 28, 2023

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

 

     Location of Gain (Loss) on
Statement of Operations		  
    

Credit

Risk

    

Currency

Risk

    

Equity

Risk

    

Interest

Rate Risk

    

Total

  

 

  

Realized Gain (Loss):

           

Forward foreign currency contracts

    $ -     $ 296,665     $ -     $ -     $ 296,665  

 

  

Futures contracts

      -       -       -       10,733,680       10,733,680  

 

  

Options purchased(a)

      -       -       (1,506,224 )      -       (1,506,224 ) 

 

  

Options written

      -       -       447,288       -       447,288  

 

  

Swap agreements

      (1,335,449 )      -       -       -       (1,335,449 ) 

 

  

Change in Net Unrealized Appreciation (Depreciation):

           

Forward foreign currency contracts

      -       (270,311 )      -       -       (270,311 ) 

 

  

Futures contracts

      -       -       -       (4,248,866 )      (4,248,866 ) 

 

  

Options purchased(a)

      -       -       1,645,260       -       1,645,260  

 

  

Options written

      -       -       (371,079 )      -       (371,079 ) 

 

  

Total

    $ (1,335,449 )    $ 26,354     $ 215,245     $ 6,484,814     $ 5,390,964  

 

  

 

(a) 

Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities.

The table below summarizes the average notional value of derivatives held during the period.

 

     

Forward

Foreign Currency

Contracts

     

Futures

Contracts

     

Equity

Options

Purchased

     

Index

Options

Purchased

     

Equity

Options

Written

     

Index

Options

Written

     

Swap

Agreements

Average notional value

          $22,835,479      $ 1,208,571,562      $ 42,473,850      $ 26,098,417      $ 60,898,500      $ 17,861,667      $99,357,390

Average contracts

      –        –        8,474        63        9,369        41      –

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $6,774.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

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

NOTE 7–Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate

 

39   Invesco Core Plus Bond Fund

by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 8–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

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

The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

      Capital Loss Carryforward*                          
Expiration            Short-Term      Long-Term      Total  

Not subject to expiration

             $ 297,729,447      $ 63,001,385      $ 360,730,832  
*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 9–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $1,813,259,795 and $2,114,095,359, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of investments

    $ 14,751,562  

 

  

Aggregate unrealized (depreciation) of investments

      (377,550,563 ) 

 

  

Net unrealized appreciation (depreciation) of investments

    $ (362,799,001 ) 

 

  

Cost of investments for tax purposes is $6,221,314,402.

NOTE 10–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended
February 28, 2023(a)		     Year ended
August 31, 2022		  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      15,291,557     $ 139,716,803       19,627,235     $ 206,578,400  

 

  

Class C

      491,363       4,523,650       903,781       9,532,418  

 

  

Class R

      372,823       3,433,757       760,428       7,968,829  

 

  

Class Y

      31,556,349       291,343,039       57,895,532       608,845,308  

 

  

Class R5

      92,541       854,299       723,728       7,544,397  

 

  

Class R6

      22,252,678       204,527,222       44,723,131       472,163,860  

 

  

Issued as reinvestment of dividends:

         

Class A

      2,583,664       23,579,981       3,959,645       41,638,848  

 

  

Class C

      91,705       836,494       161,155       1,708,395  

 

  

Class R

      59,366       541,619       83,451       876,070  

 

  

Class Y

      1,500,933       13,707,863       2,948,242       31,219,691  

 

  

Class R5

      36,013       328,348       48,507       505,837  

 

  

Class R6

      5,927,696       54,028,458       9,392,012       98,511,714  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      192,707       1,768,143       511,438       5,340,987  

 

  

Class C

      (192,730 )      (1,768,143 )      (511,675 )      (5,340,987 ) 

 

  

 

40   Invesco Core Plus Bond Fund

           Summary of Share Activity        

 

  
     Six months ended
February 28, 2023(a)		     Year ended
August 31, 2022		  
     Shares     Amount     Shares     Amount  

 

  

Reacquired:

         

Class A

      (14,704,736 )    $ (134,444,708 )      (28,299,228 )    $ (291,609,806 ) 

 

  

Class C

      (829,958 )      (7,605,124 )      (2,639,087 )      (27,348,301 ) 

 

  

Class R

      (326,941 )      (2,986,550 )      (690,586 )      (7,208,371 ) 

 

  

Class Y

      (32,518,883 )      (296,686,666 )      (82,739,710 )      (855,332,956 ) 

 

  

Class R5

      (95,314 )      (881,987 )      (456,933 )      (4,683,925 ) 

 

  

Class R6

      (25,583,205 )      (234,068,086 )      (58,455,166 )      (601,044,666 ) 

 

  

Net increase (decrease) in share activity

      6,197,628     $ 60,748,412       (32,054,100 )    $ (300,134,258 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 53% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

  In addition, 6% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.

 

41   Invesco Core Plus Bond Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

            ACTUAL   

HYPOTHETICAL

(5% annual return before

expenses)

      
     

Beginning

Account Value

(09/01/22)

   

Ending

Account Value

(02/28/23)1

   

Expenses

Paid During

Period2

   

Ending

Account Value

(02/28/23)

   

Expenses

Paid During

Period2

   

Annualized

Expense

Ratio

Class A

    $1,000.00    $997.20    $3.71    $1,021.08    $3.76    0.75%

Class C

      1,000.00      992.30      7.41      1,017.36      7.50    1.50  

Class R

      1,000.00      994.80      4.95      1,019.84      5.01    1.00  

Class Y

      1,000.00      997.40      2.48      1,022.32      2.51    0.50  

Class R5

      1,000.00      997.40      2.48      1,022.32      2.51    0.50  

Class R6

      1,000.00      997.50      2.28      1,022.51      2.31    0.46  

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

42   Invesco Core Plus Bond Fund

(This page intentionally left blank)

 

 

 

 

 

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

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

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074                     Invesco Distributors, Inc.    CPB-SAR-1                                         

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Semiannual Report to Shareholders   February 28, 2023

Invesco Discovery Fund

Nasdaq:

A: OPOCX ∎ C: ODICX ∎ R: ODINX ∎ Y: ODIYX ∎ R5: DIGGX ∎ R6: ODIIX

 

    

2   Fund Performance
4   Schedule of Investments
8   Financial Statements
11   Financial Highlights
12   Notes to Financial Statements
17   Fund Expenses

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     1.34 % 

Class C Shares

     0.96  

Class R Shares

     1.20  

Class Y Shares

     1.46  

Class R5 Shares

     1.51  

Class R6 Shares

     1.53  

S&P 500 Index▼

     1.26  

Russell 2000 Growth Index▼

     3.06  

Russell 2000 Index▼

     3.63  

Source(s): ▼RIMES Technologies Corp.

 

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

 

    The Russell 2000® Growth Index is an unmanaged index considered representative of small-cap growth stocks. The Russell 2000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.

 

    The Russell 2000® Index is an unmanaged index considered representative of small-cap stocks. The Russell 2000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.

 

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

 

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

 

 

 

For more information about your Fund

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

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

    

 

 

2   Invesco Discovery Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (9/11/86)

     10.39 % 

10 Years

     11.39  

  5 Years

     9.06  

  1 Year

     -16.56  

Class C Shares

        

Inception (10/2/95)

     7.98 % 

10 Years

     11.34  

  5 Years

     9.47  

  1 Year

     -13.24  

Class R Shares

        

Inception (3/1/01)

     8.02 % 

10 Years

     11.72  

  5 Years

     10.01  

  1 Year

     -11.93  

Class Y Shares

        

Inception (6/1/94)

     9.14 % 

10 Years

     12.29  

  5 Years

     10.57  

  1 Year

     -11.49  

Class R5 Shares

        

10 Years

     12.15 % 

  5 Years

     10.57  

  1 Year

     -11.42  

Class R6 Shares

        

Inception (1/27/12)

     12.79 % 

10 Years

     12.48  

  5 Years

     10.73  

  1 Year

     -11.38  

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

    Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

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

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

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

    

 

 

3   Invesco Discovery Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests–99.29%

 

Aerospace & Defense–2.85%

 

Curtiss-Wright Corp.

      380,580      $      66,521,578  

 

  

Hexcel Corp.

      502,523        36,659,053  

 

  
        103,180,631  

 

  

Apparel Retail–1.04%

      

Boot Barn Holdings, Inc.(b)

      484,496        37,524,215  

 

  

Apparel, Accessories & Luxury Goods–1.72%

 

Oxford Industries, Inc.

      528,964        62,211,456  

 

  

Application Software–7.81%

      

Box, Inc., Class A(b)

      1,060,638        35,372,277  

 

  

Confluent, Inc., Class A(b)

      492,677        12,016,392  

 

  

Five9, Inc.(b)

      56,692        3,741,672  

 

  

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

      319,203        9,320,727  

 

  

Manhattan Associates, Inc.(b)

      495,512        71,229,850  

 

  

Paylocity Holding Corp.(b)

      275,747        53,111,630  

 

  

Samsara, Inc., Class A(b)

      957,795        15,956,865  

 

  

Smartsheet, Inc., Class A(b)

      839,136        36,938,767  

 

  

Sprout Social, Inc., Class A(b)

      740,790        45,173,374  

 

  
        282,861,554  

 

  

Asset Management & Custody Banks–1.90%

 

Hamilton Lane, Inc., Class A

      882,599        68,666,202  

 

  

Auto Parts & Equipment–1.37%

      

Visteon Corp.(b)

      295,957        49,436,657  

 

  

Biotechnology–3.41%

      

Apellis Pharmaceuticals, Inc.(b)

      213,485        13,978,998  

 

  

Cytokinetics, Inc.(b)

      317,505        13,767,017  

 

  

Halozyme Therapeutics, Inc.(b)

      1,392,293        66,816,141  

 

  

IVERIC bio, Inc.(b)

      696,264        14,468,366  

 

  

Karuna Therapeutics, Inc.(b)

      71,674        14,293,229  

 

  
        123,323,751  

 

  

Casinos & Gaming–1.85%

      

DraftKings, Inc., Class A(b)

      753,191        14,205,182  

 

  

Red Rock Resorts, Inc., Class A

      1,205,159        52,629,294  

 

  
        66,834,476  

 

  

Commodity Chemicals–0.99%

      

Olin Corp.

      621,097        35,868,352  

 

  

Construction & Engineering–5.45%

 

Comfort Systems USA, Inc.

      304,407        44,272,954  

 

  

Valmont Industries, Inc.

      198,028        62,840,225  

 

  

WillScot Mobile Mini Holdings Corp.(b)

      1,758,237        90,373,382  

 

  
        197,486,561  

 

  

Data Processing & Outsourced Services–2.85%

 

ExlService Holdings, Inc.(b)

      357,537        58,818,412  

 

  

WNS (Holdings) Ltd., ADR (India)(b)

      512,574        44,552,932  

 

  
        103,371,344  

 

  

Distillers & Vintners–1.09%

      

MGP Ingredients, Inc.

      389,018        39,461,986  

 

  
     Shares      Value  

 

  

Education Services–0.72%

      

Duolingo, Inc.(b)

      287,885      $      26,137,079  

 

  

Electrical Components & Equipment–1.12%

 

Atkore, Inc.(b)

      128,904        18,822,562  

 

  

Shoals Technologies Group, Inc., Class A(b)

      891,455        21,876,306  

 

  
        40,698,868  

 

  

Electronic Equipment & Instruments–2.30%

 

Badger Meter, Inc.

      153,227        18,635,468  

 

  

Novanta, Inc.(b)

      412,634        64,746,401  

 

  
        83,381,869  

 

  

Environmental & Facilities Services–3.28%

 

Casella Waste Systems, Inc., Class A(b)

      709,381        55,204,030  

 

  

Clean Harbors, Inc.(b)

      481,003        63,526,066  

 

  
        118,730,096  

 

  

Food Distributors–1.34%

      

Performance Food Group Co.(b)

      858,830        48,601,190  

 

  

Footwear–2.27%

      

Crocs, Inc.(b)

      235,941        28,716,379  

 

  

Deckers Outdoor Corp.(b)

      94,761        39,453,742  

 

  

On Holding AG, Class A (Switzerland)(b)

      647,166        14,153,521  

 

  
        82,323,642  

 

  

Health Care Equipment–6.89%

      

AtriCure, Inc.(b)

      333,491        12,839,403  

 

  

Axonics, Inc.(b)

      898,525        53,992,367  

 

  

Globus Medical, Inc., Class A(b)

      61,185        3,569,533  

 

  

Inari Medical, Inc.(b)

      356,327        20,046,957  

 

  

Inspire Medical Systems, Inc.(b)

      303,240        78,821,173  

 

  

iRhythm Technologies, Inc.(b)

      171,014        20,124,928  

 

  

Shockwave Medical, Inc.(b)

      281,019        53,461,055  

 

  

TransMedics Group, Inc.(b)

      82,068        6,571,185  

 

  
        249,426,601  

 

  

Health Care Facilities–2.31%

      

Acadia Healthcare Co., Inc.(b)

      566,727        41,093,375  

 

  

Encompass Health Corp.

      149,477        8,448,440  

 

  

Surgery Partners, Inc.(b)

      1,020,281        34,128,399  

 

  
        83,670,214  

 

  

Health Care Services–1.82%

      

AMN Healthcare Services, Inc.(b)

      133,537        12,019,665  

 

  

Option Care Health, Inc.(b)

      1,060,341        32,520,659  

 

  

Privia Health Group, Inc.(b)

      760,097        21,229,509  

 

  
        65,769,833  

 

  

Health Care Supplies–0.73%

      

Lantheus Holdings, Inc.(b)

      125,850        9,307,866  

 

  

Silk Road Medical, Inc.(b)

      320,682        16,992,939  

 

  
        26,300,805  

 

  

Health Care Technology–0.89%

      

Evolent Health, Inc., Class A(b)

      916,160        32,074,762  

 

  
 

 

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

 

4   Invesco Discovery Fund

    Shares     Value  

 

  

Homebuilding–0.76%

    

Taylor Morrison Home Corp., Class A(b)

     767,353     $      27,494,258  

 

  

Industrial Machinery–2.08%

    

Chart Industries, Inc.(b)

     207,351       27,681,358  

 

  

ESAB Corp.

     313,907       18,410,646  

 

  

Evoqua Water Technologies Corp.(b)

     51,122       2,482,484  

 

  

RBC Bearings, Inc.(b)

     116,123       26,686,227  

 

  
      75,260,715  

 

  

Investment Banking & Brokerage–0.99%

 

Evercore, Inc., Class A

     274,695       36,034,490  

 

  

Leisure Facilities–1.09%

    

Planet Fitness, Inc., Class A(b)

     487,354       39,500,042  

 

  

Life Sciences Tools & Services–3.04%

 

10X Genomics, Inc., Class A(b)

     184,240       8,755,085  

 

  

Medpace Holdings, Inc.(b)

     303,670       58,875,539  

 

  

Repligen Corp.(b)

     243,168       42,401,204  

 

  
      110,031,828  

 

  

Movies & Entertainment–1.19%

    

World Wrestling Entertainment, Inc., Class A

     512,614       43,059,576  

 

  

Oil & Gas Equipment & Services–1.01%

 

TechnipFMC PLC (United Kingdom)(b)

     1,180,019       18,042,490  

 

  

Weatherford International PLC(b)

     280,224       18,668,523  

 

  
      36,711,013  

 

  

Oil & Gas Exploration & Production–3.13%

 

Matador Resources Co.

     1,173,250       63,109,117  

 

  

PDC Energy, Inc.

     670,256       44,980,880  

 

  

SM Energy Co.

     175,474       5,178,238  

 

  
      113,268,235  

 

  

Oil & Gas Refining & Marketing–0.66%

 

PBF Energy, Inc., Class A

     545,508       23,844,155  

 

  

Oil & Gas Storage & Transportation–0.50%

 

New Fortress Energy, Inc.

     543,540       17,931,385  

 

  

Paper Packaging–0.93%

    

Graphic Packaging Holding Co.

     1,421,762       33,837,935  

 

  

Personal Products–1.58%

    

elf Beauty, Inc.(b)

     766,865       57,323,159  

 

  

Pharmaceuticals–1.19%

    

Harmony Biosciences Holdings, Inc.(b)

     439,457       19,349,292  

 

  

Intra-Cellular Therapies, Inc.(b)

     487,273       23,890,995  

 

  
      43,240,287  

 

  

Property & Casualty Insurance–2.09%

    

Hanover Insurance Group, Inc. (The)

     71,359       9,953,153  

 

  

Kinsale Capital Group, Inc.

     205,821       65,595,153  

 

  
      75,548,306  

 

  

Regional Banks–1.32%

    

Pinnacle Financial Partners, Inc.

     253,170       18,757,365  

 

  

Wintrust Financial Corp.

     316,407       29,150,577  

 

  
      47,907,942  

 

  
    Shares     Value  

 

  

Research & Consulting Services–0.95%

 

KBR, Inc.

     626,019     $      34,499,907  

 

  

Restaurants–1.04%

    

Wingstop, Inc.

     220,209       37,512,603  

 

  

Semiconductor Equipment–0.90%

    

Axcelis Technologies, Inc.(b)

     253,570       32,593,888  

 

  

Semiconductors–8.85%

    

Allegro MicroSystems, Inc. (Japan)(b)

     701,687       30,649,688  

 

  

Diodes, Inc.(b)

     297,613       27,288,136  

 

  

Impinj, Inc.(b)

     683,520       90,648,422  

 

  

Lattice Semiconductor Corp.(b)

     1,067,699       90,711,707  

 

  

MACOM Technology Solutions Holdings, Inc.(b)

     413,903       28,368,912  

 

  

Power Integrations, Inc.

     206,422       16,978,210  

 

  

Silicon Laboratories, Inc.(b)

     201,033       35,890,421  

 

  
      320,535,496  

 

  

Soft Drinks–0.82%

    

Celsius Holdings, Inc.(b)

     327,951       29,777,951  

 

  

Specialized REITs–0.49%

    

Outfront Media, Inc.

     1,018,730       17,776,838  

 

  

Specialty Chemicals–1.46%

    

Ingevity Corp.(b)

     210,032       17,340,242  

 

  

Livent Corp.(b)

     1,518,945       35,619,260  

 

  
      52,959,502  

 

  

Specialty Stores–1.05%

    

Academy Sports & Outdoors, Inc.

     641,406       37,939,165  

 

  

Steel–1.52%

    

ATI, Inc.(b)

     927,880       37,718,322  

 

  

Commercial Metals Co.

     335,713       17,373,148  

 

  
      55,091,470  

 

  

Systems Software–1.27%

    

CyberArk Software Ltd.(b)

     221,534       32,071,477  

 

  

Gitlab, Inc., Class A(b)

     319,387       14,065,804  

 

  
      46,137,281  

 

  

Trading Companies & Distributors–2.23%

    

Applied Industrial Technologies, Inc.

     84,603       12,086,384  

 

  

H&E Equipment Services, Inc.

     878,926       48,780,393  

 

  

Herc Holdings, Inc.

     138,639       19,907,174  

 

  
      80,773,951  

 

  

Trucking–1.15%

    

Saia, Inc.(b)

     153,291       41,521,933  

 

  

Total Common Stocks & Other Equity Interests
(Cost $2,855,522,134)

 

     3,595,455,455  

 

  

Money Market Funds–1.44%

    

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(e)

     18,279,771       18,279,771  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(d)(e)

     13,052,858       13,055,469  

 

  
 

 

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

 

5   Invesco Discovery Fund

    Shares     Value  

 

  

Money Market Funds–(continued)

 

Invesco Treasury Portfolio, Institutional Class, 4.50%(d)(e)

     20,891,166     $ 20,891,166  

 

  

Total Money Market Funds
(Cost $52,226,406)

 

     52,226,406  

 

  

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.73%
(Cost $2,907,748,540)

       3,647,681,861  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–0.03%

    

Invesco Private Government Fund, 4.58%(d)(e)(f)

     273,382       273,382  

 

  
    Shares     Value  

 

  

Money Market Funds–(continued)

    

Invesco Private Prime Fund, 4.83%(d)(e)(f)

    702,842     $ 702,983  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $976,385)

       976,365  

 

  

TOTAL INVESTMENTS IN SECURITIES–100.76%
(Cost $2,908,724,925)

 

     3,648,658,226  

 

  

OTHER ASSETS LESS LIABILITIES–(0.76)%

 

     (27,398,153 ) 

 

  

NET ASSETS–100.00%

     $ 3,621,260,073  

 

  
 

 

Investment Abbreviations:
ADR   – American Depositary Receipt
REIT   – Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a) 

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

(b)

Non-income producing security.

(c)

All or a portion of this security was out on loan at February 28, 2023.

(d)

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

      Value
August 31, 2022		    Purchases
at Cost		    Proceeds
from Sales		    Change in
Unrealized
Appreciation
(Depreciation)		    Realized
Gain		   Value
February 28, 2023		    Dividend Income
Investments in Affiliated Money Market Funds:                                                                            

Invesco Government & Agency Portfolio, Institutional Class

      $ 41,276,475      $ 229,486,225      $ (252,482,929)        $ -      $ -     $ 18,279,771      $ 574,490

Invesco Liquid Assets Portfolio, Institutional Class

        27,605,645        163,918,732        (178,468,942)        (9,257)        9,291       13,055,469        404,851

Invesco Treasury Portfolio, Institutional Class

        47,173,115        262,269,970        (288,551,919)          -        -       20,891,166        655,461
Investments Purchased with Cash Collateral from Securities on Loan:                                                                            

Invesco Private Government Fund

        579,616        4,121,550        (4,427,784)        -        -       273,382        2,626*

Invesco Private Prime Fund

        1,490,441        10,598,275        (11,385,867)        (20)        154       702,983        7,106*

Total

      $ 118,125,292      $ 670,394,752      $ (735,317,441)      $ (9,277)      $ 9,445     $ 53,202,771      $ 1,644,534

 

  *

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(f) 

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

 

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

 

6   Invesco Discovery Fund

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Information Technology

      23.99%  

 

  

Health Care

      20.27     

 

  

Industrials

      19.11     

 

  

Consumer Discretionary

      12.89     

 

  

Financials

      6.30     

 

  

Energy

      5.30     

 

  

Materials

      4.91     

 

  

Consumer Staples

      4.84     

 

  

Other Sectors, Each Less than 2% of Net Assets

      1.68     

 

  

Money Market Funds Plus Other Assets Less Liabilities

      0.71     

 

  

 

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

 

7   Invesco Discovery Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $ 2,855,522,134)*

    $ 3,595,455,455  

 

  

Investments in affiliated money market funds, at value
(Cost $ 53,202,791)

      53,202,771  

 

  

Cash

      1,000,000  

 

  

Receivable for:

   

Investments sold

      49,134,343  

 

  

Fund shares sold

      2,907,226  

 

  

Dividends

      1,020,744  

 

  

Investment for trustee deferred compensation and retirement plans

      148,094  

 

  

Other assets

      134,088  

 

  

Total assets

      3,703,002,721  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      71,049,117  

 

  

Fund shares reacquired

      7,771,044  

 

  

Collateral upon return of securities loaned

      976,385  

 

  

Accrued fees to affiliates

      1,480,069  

 

  

Accrued trustees’ and officers’ fees and benefits

      47,526  

 

  

Accrued other operating expenses

      216,263  

 

  

Trustee deferred compensation and retirement plans

      202,244  

 

  

Total liabilities

      81,742,648  

 

  

Net assets applicable to shares outstanding

    $ 3,621,260,073  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 3,193,697,123  

 

  

Distributable earnings

      427,562,950  

 

  
   $ 3,621,260,073  

 

  

 

Net Assets:

   

Class A

    $ 1,385,812,286  

 

  

Class C

    $ 29,611,052  

 

  

Class R

    $ 40,233,047  

 

  

Class Y

    $ 1,445,785,975  

 

  

Class R5

    $ 1,339,121  

 

  

Class R6

    $ 718,478,592  

 

  

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

 

Class A

      18,096,691  

 

  

Class C

      787,242  

 

  

Class R

      611,126  

 

  

Class Y

      15,304,715  

 

  

Class R5

      17,227  

 

  

Class R6

      7,354,815  

 

  

Class A:

   

Net asset value per share

    $ 76.58  

 

  

Maximum offering price per share
(Net asset value of $76.58 ÷ 94.50%)

    $ 81.04  

 

  

Class C:

   

Net asset value and offering price per share

    $ 37.61  

 

  

Class R:

   

Net asset value and offering price per share

    $ 65.83  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 94.47  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 77.73  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 97.69  

 

  

 

*

At February 28, 2023, security with a value of $966,520 was on loan to brokers.

 

 

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

 

8   Invesco Discovery Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

 

Dividends

    $ 10,873,565  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $(315))

      1,634,487  

 

  

Total investment income

      12,508,052  

 

  

Expenses:

 

Advisory fees

      10,500,977  

 

  

Administrative services fees

      256,114  

 

  

Custodian fees

      12,099  

 

  

Distribution fees:

   

Class A

      1,608,345  

 

  

Class C

      152,103  

 

  

Class R

      99,399  

 

  

Transfer agent fees – A, C, R and Y

      2,410,125  

 

  

Transfer agent fees – R5

      375  

 

  

Transfer agent fees – R6

      89,606  

 

  

Trustees’ and officers’ fees and benefits

      28,779  

 

  

Registration and filing fees

      134,605  

 

  

Reports to shareholders

      100,143  

 

  

Professional services fees

      32,856  

 

  

Other

      19,831  

 

  

Total expenses

      15,445,357  

 

  

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

      (83,173 ) 

 

  

Net expenses

      15,362,184  

 

  

Net investment income (loss)

      (2,854,132 ) 

 

  

Realized and unrealized gain (loss) from:

 

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (82,634,904 ) 

 

  

Affiliated investment securities

      9,445  

 

  
     (82,625,459 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      135,582,587  

 

  

Affiliated investment securities

      (9,277 ) 

 

  
     135,573,310  

 

  

Net realized and unrealized gain

      52,947,851  

 

  

Net increase in net assets resulting from operations

    $ 50,093,719  

 

  

 

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

 

9   Invesco Discovery Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,     August 31,  
     2023     2022  

 

  

Operations:

     

Net investment income (loss)

    $ (2,854,132 )    $ (15,846,365 ) 

 

  

Net realized gain (loss)

      (82,625,459 )      (99,418,822 ) 

 

  

Change in net unrealized appreciation (depreciation)

      135,573,310       (1,093,338,447 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      50,093,719       (1,208,603,634 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      –       (354,060,785 ) 

 

  

Class C

      –       (15,739,383 ) 

 

  

Class R

      –       (11,989,177 ) 

 

  

Class Y

      –       (268,868,549 ) 

 

  

Class R5

      –       (2,650,365 ) 

 

  

Class R6

      –       (81,370,610 ) 

 

  

Total distributions from distributable earnings

      –       (734,678,869 ) 

 

  

Share transactions–net:

     

Class A

      (57,453,593 )      220,367,991  

 

  

Class C

      (3,720,739 )      6,122,111  

 

  

Class R

      (1,709,604 )      4,679,546  

 

  

Class Y

      (105,602,413 )      523,205,689  

 

  

Class R5

      177,404       (10,267,213 ) 

 

  

Class R6

      127,414,697       259,920,043  

 

  

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

      (40,894,248 )      1,004,028,167  

 

  

Net increase (decrease) in net assets

      9,199,471       (939,254,336 ) 

 

  

Net assets:

     

Beginning of period

      3,612,060,602       4,551,314,938  

 

  

End of period

    $ 3,621,260,073     $ 3,612,060,602  

 

  

 

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

 

10   Invesco Discovery Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income

(loss)(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Distributions

from net

realized

gains

  

Net asset

value, end

of period

   Total return(b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with
fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed(c)

  

Ratio of net

investment

income

(loss)

to average

net assets

  

Portfolio

turnover (d)

Class A

                        

Six months ended 02/28/23

     $  75.57       $(0.12 )      $   1.13       $    1.01       $        –       $  76.58       1.34 %(e)      $1,385,812       1.04 %(e)(f)      1.04 %(e)(f)      (0.33 )%(e)(f)      37 % 

Year ended 08/31/22

     124.56       (0.49 )      (27.15 )      (27.64 )      (21.35 )      75.57       (26.13 )(e)      1,425,847       1.02 (e)      1.02 (e)      (0.54 )(e)      84  

Year ended 08/31/21

     101.13       (0.85 )      36.59       35.74       (12.31 )      124.56       37.24 (e)      2,090,984       1.01 (e)      1.01 (e)      (0.74 )(e)      61  

Year ended 08/31/20

     84.02       (0.59 )      22.93       22.34       (5.23 )      101.13       28.07 (e)      1,656,602       1.05 (e)      1.05 (e)      (0.71 )(e)      76  

Eleven months ended 08/31/19

     94.78       (0.50 )      1.69       1.19       (11.95 )      84.02       4.57       1,432,064       1.08 (f)      1.08 (f)      (0.70 )(f)      83  

Year ended 09/30/18

     81.76       (0.65 )      23.33       22.68       (9.66 )      94.78       30.77       1,442,859       1.07       1.07       (0.76 )      91  

Year ended 09/30/17

     71.38       (0.53 )      13.84       13.31       (2.93 )      81.76       19.44 (g)      1,208,643       1.10       1.11       (0.72 )      107  

Class C

                        

Six months ended 02/28/23

     37.26       (0.20 )      0.55       0.35       –       37.61       0.94       29,611       1.80 (f)      1.80 (f)      (1.09 )(f)      37  

Year ended 08/31/22

     73.13       (0.63 )      (13.89 )      (14.52 )      (21.35 )      37.26       (26.68 )      33,135       1.78       1.78       (1.30 )      84  

Year ended 08/31/21

     64.09       (1.03 )      22.38       21.35       (12.31 )      73.13       36.20       56,388       1.78       1.78       (1.51 )      61  

Year ended 08/31/20

     55.50       (0.79 )      14.61       13.82       (5.23 )      64.09       27.08       74,315       1.82       1.82       (1.48 )      76  

Eleven months ended 08/31/19

     67.90       (0.70 )      0.25       (0.45 )      (11.95 )      55.50       3.84       78,075       1.84 (f)      1.84 (f)      (1.47 )(f)      83  

Year ended 09/30/18

     61.61       (0.94 )      16.89       15.95       (9.66 )      67.90       29.78       159,027       1.83       1.83       (1.52 )      91  

Year ended 09/30/17

     54.91       (0.83 )      10.46       9.63       (2.93 )      61.61       18.52 (g)      139,622       1.86       1.86       (1.48 )      107  

Class R

                        

Six months ended 02/28/23

     65.06       (0.18 )      0.95       0.77       –       65.83       1.18       40,233       1.30 (f)      1.30 (f)      (0.59 )(f)      37  

Year ended 08/31/22

     110.57       (0.64 )      (23.52 )      (24.16 )      (21.35 )      65.06       (26.31 )      41,445       1.28       1.28       (0.80 )      84  

Year ended 08/31/21

     91.16       (1.03 )      32.75       31.72       (12.31 )      110.57       36.89       64,908       1.28       1.28       (1.01 )      61  

Year ended 08/31/20

     76.43       (0.74 )      20.70       19.96       (5.23 )      91.16       27.72       53,981       1.32       1.32       (0.98 )      76  

Eleven months ended 08/31/19

     87.70       (0.62 )      1.30       0.68       (11.95 )      76.43       4.32       53,737       1.33 (f)      1.33 (f)      (0.96 )(f)      83  

Year ended 09/30/18

     76.52       (0.81 )      21.65       20.84       (9.66 )      87.70       30.43       54,734       1.33       1.33       (1.02 )      91  

Year ended 09/30/17

     67.17       (0.68 )      12.96       12.28       (2.93 )      76.52       19.11 (g)      48,470       1.37       1.37       (0.98 )      107  

Class Y

                        

Six months ended 02/28/23

     93.12       (0.04 )      1.39       1.35       –       94.47       1.45       1,445,786       0.80 (f)      0.80 (f)      (0.09 )(f)      37  

Year ended 08/31/22

     147.99       (0.33 )      (33.19 )      (33.52 )      (21.35 )      93.12       (25.94 )      1,532,285       0.78       0.78       (0.30 )      84  

Year ended 08/31/21

     117.95       (0.69 )      43.04       42.35       (12.31 )      147.99       37.56       1,769,717       0.78       0.78       (0.51 )      61  

Year ended 08/31/20

     96.93       (0.46 )      26.71       26.25       (5.23 )      117.95       28.37       1,316,860       0.82       0.82       (0.48 )      76  

Eleven months ended 08/31/19

     106.92       (0.38 )      2.34       1.96       (11.95 )      96.93       4.80       882,530       0.84 (f)      0.84 (f)      (0.47 )(f)      83  

Year ended 09/30/18

     90.84       (0.51 )      26.25       25.74       (9.66 )      106.92       31.07       791,784       0.84       0.84       (0.53 )      91  

Year ended 09/30/17

     78.81       (0.39 )      15.35       14.96       (2.93 )      90.84       19.70 (g)      518,827       0.87       0.87       (0.48 )      107  

Class R5

                        

Six months ended 02/28/23

     76.48       0.01       1.24       1.25       –       77.73       1.63       1,339       0.69 (f)      0.69 (f)      0.02 (f)      37  

Year ended 08/31/22

     125.62       (0.28 )      (27.51 )      (27.79 )      (21.35 )      76.48       (26.01 )      1,139       0.71       0.71       (0.23 )      84  

Year ended 08/31/21

     101.62       (0.52 )      36.83       36.31       (12.31 )      125.62       37.67       15,580       0.72       0.72       (0.45 )      61  

Year ended 08/31/20

     84.11       (0.27 )      23.01       22.74       (5.23 )      101.62       28.54       15,413       0.68       0.68       (0.34 )      76  

Period ended 08/31/19(h)

     77.56       (0.08 )      6.63       6.55       –       84.11       8.44       11       0.71 (f)      0.71 (f)      (0.34 )(f)      83  

Class R6

                        

Six months ended 02/28/23

     96.23       0.03       1.43       1.46       –       97.69       1.52       718,479       0.66 (f)      0.66 (f)      0.05 (f)      37  

Year ended 08/31/22

     152.02       (0.19 )      (34.25 )      (34.44 )      (21.35 )      96.23       (25.85 )      578,210       0.65       0.65       (0.17 )      84  

Year ended 08/31/21

     120.70       (0.50 )      44.13       43.63       (12.31 )      152.02       37.78       553,738       0.63       0.63       (0.36 )      61  

Year ended 08/31/20

     98.92       (0.30 )      27.31       27.01       (5.23 )      120.70       28.58       329,915       0.65       0.65       (0.31 )      76  

Eleven months ended 08/31/19

     108.66       (0.25 )      2.46       2.21       (11.95 )      98.92       4.96       269,645       0.67 (f)      0.67 (f)      (0.30 )(f)      83  

Year ended 09/30/18

     92.03       (0.35 )      26.64       26.29       (9.66 )      108.66       31.29       254,704       0.67       0.67       (0.36 )      91  

Year ended 09/30/17

     79.66       (0.25 )      15.55       15.30       (2.93 )      92.03       19.92 (g)      153,563       0.68       0.68       (0.30 )      107  

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

Does not include estimated acquired fund fees from underlying funds of 0.00% for the eleven months ended August 31, 2019 and the years ended September 30, 2019, 2018 and 2017, respectively.

(d) 

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

(e) 

The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the six months ending February 28, 2023 and year ended August 31, 2022 and 0.23% for the years ended August 31, 2021 and 2020.

(f) 

Annualized.

(g) 

The return does not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.

(h) 

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

 

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

 

11   Invesco Discovery Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

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

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

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

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

A.

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

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.

 

12   Invesco Discovery Fund

Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

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

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

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

C.

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

D.

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

E.

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

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

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

F.

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

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.

When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

 

13   Invesco Discovery Fund

J.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate*  

 

  

First $ 200 million

      0.750 % 

 

  

Next $200 million

      0.720 % 

 

  

Next $200 million

      0.690 % 

 

  

Next $200 million

      0.660 % 

 

  

Next $700 million

      0.600 % 

 

  

Next $3.5 billion

      0.580 % 

 

  

Over $5 billion

      0.550 % 

 

  

 

*

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

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.60%.

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

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

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $54,264.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $27,675 in front-end sales commissions from the sale of Class A shares and $0 and $139 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended February 28, 2023, the Fund incurred $29,734 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

 

14   Invesco Discovery Fund

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1             Level 2             Level 3             Total  

 

  

Investments in Securities

                     

 

  

Common Stocks & Other Equity Interests

    $ 3,595,455,455         $ –           $–         $ 3,595,455,455  

 

  

Money Market Funds

      52,226,406           976,365           –           53,202,771  

 

  

Total Investments

    $ 3,647,681,861         $ 976,365           $–         $ 3,648,658,226  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $28,909.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of August 31, 2022.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $1,336,311,499 and $1,293,049,295, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

     $783,269,630  

 

  

Aggregate unrealized (depreciation) of investments

     (69,502,223 ) 

 

  

Net unrealized appreciation of investments

     $713,767,407  

 

  

Cost of investments for tax purposes is $2,934,890,819.

 

15   Invesco Discovery Fund

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended
February 28, 2023(a) 		    Year ended
August 31, 2022		  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      485,522     $ 36,142,771       1,208,272     $ 116,489,369  

 

  

Class C

      41,994       1,540,733       85,337       3,993,568  

 

  

Class R

      28,997       1,846,295       101,434       8,019,432  

 

  

Class Y

      2,918,658       266,891,480       8,720,576       964,036,930  

 

  

Class R5

      4,520       342,398       19,628       2,068,656  

 

  

Class R6

      1,936,978       183,203,475       2,733,589       296,912,306  

 

  

Issued as reinvestment of dividends:

         

Class A

      -       -       3,477,493       341,211,448  

 

  

Class C

      -       -       315,765       15,355,670  

 

  

Class R

      -       -       141,026       11,932,191  

 

  

Class Y

      -       -       1,887,533       227,806,408  

 

  

Class R5

      -       -       26,687       2,648,184  

 

  

Class R6

      -       -       633,504       78,934,555  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      19,625       1,460,419       53,151       4,874,729  

Class C

      (39,891 )      (1,460,419 )      (104,647 )      (4,874,729 ) 

 

  

Reacquired:

         

Class A

      (1,275,236 )      (95,056,783 )      (2,659,455 )      (242,207,555 ) 

 

  

Class C

      (104,107 )      (3,801,053 )      (178,287 )      (8,352,398 ) 

 

  

Class R

      (54,930 )      (3,555,899 )      (192,450 )      (15,272,077 ) 

 

  

Class Y

      (4,068,689 )      (372,493,893 )      (6,111,474 )      (668,637,649 ) 

 

  

Class R5

      (2,183 )      (164,994 )      (155,453 )      (14,984,053 ) 

 

  

Class R6

      (590,637 )      (55,788,778 )      (1,001,122 )      (115,926,818 ) 

 

  

Net increase (decrease) in share activity

      (699,379 )    $ (40,894,248)       9,001,107     $ 1,004,028,167  

 

  

 

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 22% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

16   Invesco Discovery Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

          ACTUAL  

HYPOTHETICAL
(5% annual return before

expenses)

     
    

Beginning

    Account Value    

(09/01/22)

  

Ending

    Account Value    

(02/28/23)1

  

Expenses

      Paid During      

Period2

  

Ending

    Account Value    

(02/28/23)

  

Expenses

      Paid During      

Period2

 

      Annualized      

Expense

Ratio

Class A

   $1,000.00   $1,013.40   $5.19   $1,019.64   $5.21       1.04%

Class C

     1,000.00     1,009.40     8.97     1,015.87     9.00    1.80

Class R

     1,000.00     1,011.80     6.48     1,018.35     6.51    1.30

Class Y

     1,000.00     1,014.50     4.00     1,020.83     4.01    0.80

Class R5

     1,000.00     1,016.30     3.45     1,021.37     3.46    0.69

Class R6

     1,000.00     1,015.20     3.30     1,021.52     3.31    0.66

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

17   Invesco Discovery Fund

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

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074   Invesco Distributors, Inc.                                           O-DIS-SAR-1

LOGO

 

   
Semiannual Report to Shareholders   February 28, 2023

Invesco Equally-Weighted S&P 500 Fund

Nasdaq:

A: VADAX ∎ C: VADCX ∎ R: VADRX ∎ Y: VADDX ∎ R6: VADFX

 

   
2   Fund Performance
4   Schedule of Investments
13   Financial Statements
16   Financial Highlights
17   Notes to Financial Statements
23   Fund Expenses

 

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE

 

Fund Performance

 

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     4.93 % 

Class C Shares

     4.54  

Class R Shares

     4.79  

Class Y Shares

     5.07  

Class R6 Shares

     5.11  

S&P 500 Index▼ (Broad Market Index)

     1.26  

S&P 500 Equal Weight Index▼ (Style-Specific Index)

     5.23  

Lipper Multi-Cap Core Funds Index∎ (Peer Group Index)

     2.82  

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

  

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

 

  The S&P 500® Equal Weight Index is the equally weighted version of the S&P 500® Index, which is considered representative of the US stock market.

 

  The Lipper Multi-Cap Core Funds Index is an unmanaged index considered representative of multicap core funds tracked by Lipper.

 

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

 

 

For more information about your Fund

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

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

 

 

2   Invesco Equally-Weighted S&P 500 Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (7/28/97)

     8.74 % 

10 Years

     10.74  

  5 Years

     8.15  

  1 Year

     -8.89  

Class C Shares

        

Inception (7/28/97)

     8.72 % 

10 Years

     10.72  

  5 Years

     8.58  

  1 Year

     -5.19  

Class R Shares

        

Inception (3/31/08)

     9.85 % 

10 Years

     11.09  

  5 Years

     9.11  

  1 Year

     -3.82  

Class Y Shares

        

Inception (7/28/97)

     9.24 % 

10 Years

     11.64  

  5 Years

     9.66  

  1 Year

     -3.33  

Class R6 Shares

        

Inception (9/24/12)

     12.20 % 

10 Years

     11.76  

  5 Years

     9.78  

  1 Year

     -3.23  

Returns above include the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the index that occurred on April 24, 2020. Had the pay-in not been made, the total return would have been lower.

  

Effective June 1, 2010, Class A, Class C, Class R, Class W and Class I shares of the predecessor fund, Morgan Stanley Equally-Weighted S&P 500 Fund, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class C, Class R, Class A and Class Y shares, respectively, of Invesco Equally-Weighted S&P 500 Fund. Returns shown above, prior to June 1, 2010, for Class A, Class C, Class R and Class Y shares are those for Class A, Class C and Class R and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

 

 

3   Invesco Equally-Weighted S&P 500 Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

      Shares      Value

Common Stocks & Other Equity Interests–99.77%

Advertising–0.45%

Interpublic Group of Cos., Inc. (The)

      389,710      $     13,850,293

Omnicom Group, Inc.

      165,212      14,963,251
              28,813,544

Aerospace & Defense–1.98%

Boeing Co. (The)(b)(c)

      69,656      14,039,167

General Dynamics Corp.

      51,502      11,737,821

Howmet Aerospace, Inc.

      334,819      14,122,666

Huntington Ingalls Industries, Inc.

      54,522      11,733,134

L3Harris Technologies, Inc.

      59,032      12,466,968

Lockheed Martin Corp.

      25,501      12,094,104

Northrop Grumman Corp.

      23,293      10,810,514

Raytheon Technologies Corp.

      129,471      12,699,810

Textron, Inc.

      177,425      12,868,635

TransDigm Group, Inc.

      20,301      15,101,305
              127,674,124

Agricultural & Farm Machinery–0.18%

Deere & Co.

      28,390      11,902,224

Agricultural Products–0.17%

Archer-Daniels-Midland Co.

      138,475      11,022,610

Air Freight & Logistics–0.83%

C.H. Robinson Worldwide, Inc.

      133,506      13,345,260

Expeditors International of Washington, Inc.

      117,905      12,328,147

FedEx Corp.

      73,830      15,003,732

United Parcel Service, Inc., Class B

      71,623      13,070,481
              53,747,620

Airlines–1.07%

Alaska Air Group, Inc.(b)

      285,528      13,656,804

American Airlines Group, Inc.(b)(c)

      924,379      14,771,577

Delta Air Lines, Inc.(b)

      369,824      14,179,052

Southwest Airlines Co.

      334,731      11,240,267

United Airlines Holdings, Inc.(b)

      290,417      15,090,067
              68,937,767

Alternative Carriers–0.12%

Lumen Technologies, Inc.(c)

      2,317,510      7,879,534

Apparel Retail–0.38%

Ross Stores, Inc.

      110,741      12,241,310

TJX Cos., Inc. (The)

      162,991      12,485,111
              24,726,421

Apparel, Accessories & Luxury Goods–0.62%

Ralph Lauren Corp.(c)

      116,316      13,747,388

Tapestry, Inc.

      343,754      14,956,736

VF Corp.

      451,174      11,198,139
              39,902,263

Application Software–2.51%

      

Adobe, Inc.(b)

      37,602      12,181,168

ANSYS, Inc.(b)

      51,301      15,575,497
      Shares      Value

Application Software–(continued)

Autodesk, Inc.(b)

      65,479      $     13,010,022

Cadence Design Systems, Inc.(b)

      77,736      14,998,384

Ceridian HCM Holding, Inc.(b)(c)

      196,042      14,297,343

Intuit, Inc.

      31,016      12,629,095

Paycom Software, Inc.(b)

      39,459      11,406,019

PTC, Inc.(b)

      104,985      13,157,770

Roper Technologies, Inc.

      28,643      12,322,219

salesforce.com, inc.(b)

      95,387      15,606,267

Synopsys, Inc.(b)

      38,136      13,872,351

Tyler Technologies, Inc.(b)

      38,365      12,324,756
              161,380,891

Asset Management & Custody Banks–1.65%

Ameriprise Financial, Inc.

      38,687      13,264,612

Bank of New York Mellon Corp. (The)

      284,570      14,478,922

BlackRock, Inc.

      17,489      12,057,441

Franklin Resources, Inc.(c)

      478,493      14,101,189

Invesco Ltd.(d)

      693,358      12,244,702

Northern Trust Corp.

      144,812      13,796,239

State Street Corp.

      160,991      14,276,682

T. Rowe Price Group, Inc.(c)

      106,176      11,921,441
              106,141,228

Auto Parts & Equipment–0.49%

Aptiv PLC(b)

      133,981      15,579,311

BorgWarner, Inc.

      314,384      15,807,227
              31,386,538

Automobile Manufacturers–0.61%

Ford Motor Co.

      965,335      11,651,593

General Motors Co.(e)

      332,370      12,876,014

Tesla, Inc.(b)

      71,059      14,617,547
              39,145,154

Automotive Retail–0.79%

Advance Auto Parts, Inc.

      87,205      12,641,237

AutoZone, Inc.(b)

      5,019      12,479,944

CarMax, Inc.(b)(c)

      193,655      13,369,941

O’Reilly Automotive, Inc.(b)

      14,916      12,381,772
              50,872,894

Biotechnology–1.42%

AbbVie, Inc.

      76,356      11,751,188

Amgen, Inc.

      44,595      10,330,878

Biogen, Inc.(b)

      43,460      11,728,116

Gilead Sciences, Inc.

      144,630      11,647,054

Incyte Corp.(b)

      154,519      11,894,873

Moderna, Inc.(b)

      71,740      9,958,229

Regeneron Pharmaceuticals, Inc.(b)

      16,432      12,495,221

Vertex Pharmaceuticals, Inc.(b)

      39,705      11,525,964
              91,331,523

Brewers–0.20%

Molson Coors Beverage Co., Class B

      242,530      12,900,171

Broadcasting–0.44%

Fox Corp., Class A

      283,638      9,933,003
 

 

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

 

4   Invesco Equally-Weighted S&P 500 Fund

      Shares      Value

Broadcasting–(continued)

Fox Corp., Class B

      130,651      $       4,213,495

Paramount Global, Class B(c)

      668,934      14,328,566
              28,475,064

Building Products–1.24%

A.O. Smith Corp.

      213,596      14,018,306

Allegion PLC

      116,587      13,140,521

Carrier Global Corp.

      295,749      13,317,577

Johnson Controls International PLC

      193,449      12,133,121

Masco Corp.

      257,971      13,525,420

Trane Technologies PLC

      72,595      13,427,897
              79,562,842

Cable & Satellite–0.55%

Charter Communications, Inc., Class A(b)(c)

      32,617      11,990,335

Comcast Corp., Class A(c)

      360,225      13,389,563

DISH Network Corp., Class A(b)(c)

      863,170      9,848,770
              35,228,668

Casinos & Gaming–0.92%

Caesars Entertainment, Inc.(b)

      257,866      13,089,278

Las Vegas Sands Corp.(b)

      264,314      15,190,126

MGM Resorts International

      350,018      15,054,274

Wynn Resorts Ltd.(b)

      147,118      15,943,178
              59,276,856

Commodity Chemicals–0.45%

Dow, Inc.

      249,049      14,245,603

LyondellBasell Industries N.V., Class A

      153,427      14,727,458
              28,973,061

Communications Equipment–0.98%

Arista Networks, Inc.(b)

      99,477      13,797,460

Cisco Systems, Inc.

      262,549      12,712,622

F5, Inc.(b)

      85,111      12,169,171

Juniper Networks, Inc.

      392,931      12,094,416

Motorola Solutions, Inc.

      46,660      12,262,715
              63,036,384

Computer & Electronics Retail–0.20%

Best Buy Co., Inc.

      155,520      12,925,267

Construction & Engineering–0.22%

Quanta Services, Inc.

      85,886      13,862,000

Construction Machinery & Heavy Trucks–0.82%

Caterpillar, Inc.

      54,366      13,023,375

Cummins, Inc.

      52,362      12,728,155

PACCAR, Inc.

      188,472      13,607,679

Wabtec Corp.

      126,737      13,222,471
              52,581,680

Construction Materials–0.39%

Martin Marietta Materials, Inc.

      34,719      12,494,326

Vulcan Materials Co.

      69,735      12,615,759
              25,110,085

Consumer Electronics–0.20%

Garmin Ltd.

      133,885      13,138,135

Consumer Finance–0.87%

American Express Co.

      82,671      14,383,928
      Shares      Value

Consumer Finance–(continued)

Capital One Financial Corp.

      134,765      $     14,700,166

Discover Financial Services

      123,525      13,834,800

Synchrony Financial

      362,379      12,940,554
              55,859,448

Copper–0.21%

Freeport-McMoRan, Inc.

      323,957      13,272,518

Data Processing & Outsourced Services–2.19%

Automatic Data Processing, Inc.

      49,468      10,874,056

Broadridge Financial Solutions, Inc.

      89,530      12,604,033

Fidelity National Information Services, Inc.

      181,060      11,473,772

Fiserv, Inc.(b)

      126,422      14,549,908

FleetCor Technologies, Inc.(b)

      69,355      14,896,761

Global Payments, Inc.

      127,786      14,337,589

Jack Henry & Associates, Inc.

      70,085      11,510,760

Mastercard, Inc., Class A

      35,614      12,653,298

Paychex, Inc.

      106,460      11,753,184

PayPal Holdings, Inc.(b)

      172,939      12,728,311

Visa, Inc., Class A(c)

      60,964      13,408,422
              140,790,094

Distillers & Vintners–0.37%

Brown-Forman Corp., Class B

      187,326      12,151,838

Constellation Brands, Inc., Class A

      52,566      11,759,014
              23,910,852

Distributors–0.61%

Genuine Parts Co.

      69,807      12,346,066

LKQ Corp.

      239,022      13,693,570

Pool Corp.(c)

      37,544      13,397,952
              39,437,588

Diversified Banks–1.08%

Bank of America Corp.

      392,931      13,477,533

Citigroup, Inc.

      278,638      14,124,160

JPMorgan Chase & Co.

      96,270      13,800,305

U.S. Bancorp

      295,132      14,086,650

Wells Fargo & Co.

      299,367      14,001,395
              69,490,043

Diversified Support Services–0.40%

Cintas Corp.

      27,203      11,927,700

Copart, Inc.(b)

      199,453      14,053,458
              25,981,158

Drug Retail–0.17%

Walgreens Boots Alliance, Inc.

      305,853      10,866,957

Electric Utilities–3.13%

Alliant Energy Corp.

      230,033      11,793,792

American Electric Power Co., Inc.

      131,737      11,588,904

Constellation Energy Corp.

      141,809      10,620,076

Duke Energy Corp.

      126,787      11,950,943

Edison International

      193,390      12,804,352

Entergy Corp.

      108,866      11,199,045

Evergy, Inc.

      203,929      11,993,064

Eversource Energy

      151,375      11,407,620

Exelon Corp.

      307,173      12,406,717

FirstEnergy Corp.

      306,729      12,128,065

NextEra Energy, Inc.

      150,552      10,693,709
 

 

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

 

5   Invesco Equally-Weighted S&P 500 Fund

      Shares      Value

Electric Utilities–(continued)

NRG Energy, Inc.

      394,149      $     12,924,146

PG&E Corp.(b)(c)

      818,734      12,788,625

Pinnacle West Capital Corp.

      164,169      12,095,972

PPL Corp.

      439,486      11,896,886

Southern Co. (The)

      186,119      11,736,664

Xcel Energy, Inc.

      182,176      11,763,104
              201,791,684

Electrical Components & Equipment–1.06%

AMETEK, Inc.

      91,461      12,947,219

Eaton Corp. PLC

      80,383      14,061,398

Emerson Electric Co.

      135,080      11,172,467

Generac Holdings, Inc.(b)(c)

      135,056      16,208,071

Rockwell Automation, Inc.

      47,816      14,102,373
              68,491,528

Electronic Components–0.40%

Amphenol Corp., Class A

      162,057      12,562,659

Corning, Inc.

      385,316      13,081,478
              25,644,137

Electronic Equipment & Instruments–0.79%

Keysight Technologies, Inc.(b)

      70,403      11,261,664

Teledyne Technologies, Inc.(b)

      30,448      13,094,771

Trimble, Inc.(b)

      221,272      11,519,420

Zebra Technologies Corp., Class A(b)

      49,603      14,893,301
              50,769,156

Electronic Manufacturing Services–0.21%

TE Connectivity Ltd.

      104,519      13,307,359

Environmental & Facilities Services–0.55%

Republic Services, Inc.

      93,684      12,078,678

Rollins, Inc.

      330,385      11,629,552

Waste Management, Inc.

      76,264      11,421,297
              35,129,527

Fertilizers & Agricultural Chemicals–0.79%

CF Industries Holdings, Inc.

      128,907      11,071,822

Corteva, Inc.

      201,986      12,581,708

FMC Corp.

      100,499      12,979,446

Mosaic Co. (The)(e)

      271,803      14,457,202
              51,090,178

Financial Exchanges & Data–1.77%

      

Cboe Global Markets, Inc.

      102,284      12,905,172

CME Group, Inc., Class A

      71,146      13,187,623

FactSet Research Systems, Inc.

      27,509      11,403,856

Intercontinental Exchange, Inc.

      123,131      12,534,736

MarketAxess Holdings, Inc.

      44,367      15,149,112

Moody’s Corp.

      43,142      12,517,651

MSCI, Inc.

      25,069      13,089,778

Nasdaq, Inc.

      201,315      11,285,719

S&P Global, Inc.

      35,802      12,215,643
              114,289,290

Food Distributors–0.18%

      

Sysco Corp.

      154,727      11,537,992

Food Retail–0.18%

      

Kroger Co. (The)

      273,792      11,811,387
      Shares      Value

Footwear–0.21%

NIKE, Inc., Class B

      114,259      $     13,572,827

Gas Utilities–0.19%

Atmos Energy Corp.

      108,125      12,197,581

General Merchandise Stores–0.60%

Dollar General Corp.

      52,303      11,313,139

Dollar Tree, Inc.(b)

      89,405      12,988,758

Target Corp.

      83,551      14,078,344
              38,380,241

Gold–0.18%

Newmont Corp.

      269,409      11,748,926

Health Care Distributors–0.75%

AmerisourceBergen Corp.

      76,956      11,971,275

Cardinal Health, Inc.

      164,063      12,421,210

Henry Schein, Inc.(b)

      156,689      12,270,316

McKesson Corp.

      33,392      11,680,855
              48,343,656

Health Care Equipment–3.13%

Abbott Laboratories

      115,689      11,767,885

Baxter International, Inc.

      242,901      9,703,895

Becton, Dickinson and Co.

      50,072      11,744,388

Boston Scientific Corp.(b)

      275,214      12,857,998

DexCom, Inc.(b)

      109,249      12,127,732

Edwards Lifesciences Corp.(b)

      171,911      13,828,521

GE HealthCare Technologies, Inc.(b)

      198,224      15,065,024

Hologic, Inc.(b)

      171,934      13,692,824

IDEXX Laboratories, Inc.(b)

      29,435      13,929,819

Intuitive Surgical, Inc.(b)

      47,018      10,785,459

Medtronic PLC

      161,892      13,404,658

ResMed, Inc.

      57,917      12,336,321

STERIS PLC

      66,281      12,462,816

Stryker Corp.

      50,739      13,338,268

Teleflex, Inc.

      50,353      11,995,595

Zimmer Biomet Holdings, Inc.

      102,276      12,668,928
              201,710,131

Health Care Facilities–0.40%

HCA Healthcare, Inc.(c)

      51,969      12,651,853

Universal Health Services, Inc., Class B

      98,169      13,112,433
              25,764,286

Health Care REITs–0.62%

Healthpeak Properties, Inc.

      501,899      12,075,690

Ventas, Inc.

      280,060      13,624,919

Welltower, Inc.

      190,838      14,144,912
              39,845,521

Health Care Services–0.93%

Cigna Group (The)

      37,262      10,884,230

CVS Health Corp.

      125,166      10,456,368

DaVita, Inc.(b)

      171,147      14,078,552

Laboratory Corp. of America Holdings

      52,866      12,654,006

Quest Diagnostics, Inc.

      85,476      11,826,459
              59,899,615

Health Care Supplies–0.76%

      

Align Technology, Inc.(b)

      65,796      20,363,862

Cooper Cos., Inc. (The)

      40,164      13,132,423
 

 

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

 

6   Invesco Equally-Weighted S&P 500 Fund

      Shares      Value

Health Care Supplies–(continued)

DENTSPLY SIRONA, Inc.(c)

      413,324      $     15,735,245
              49,231,530

Home Furnishings–0.20%

Mohawk Industries, Inc.(b)

      125,738      12,932,153

Home Improvement Retail–0.38%

Home Depot, Inc. (The)

      38,669      11,466,905

Lowe’s Cos., Inc.

      63,058      12,974,184
              24,441,089

Homebuilding–0.88%

D.R. Horton, Inc.(c)

      146,448      13,543,511

Lennar Corp., Class A

      143,764      13,907,729

NVR, Inc.(b)

      2,654      13,730,788

PulteGroup, Inc.

      284,728      15,566,080
              56,748,108

Hotel & Resort REITs–0.19%

Host Hotels & Resorts, Inc.(c)

      719,227      12,083,014

Hotels, Resorts & Cruise Lines–1.55%

Booking Holdings, Inc.(b)

      6,134      15,482,216

Carnival Corp.(b)(c)

      1,410,422      14,978,682

Expedia Group, Inc.(b)

      132,984      14,491,266

Hilton Worldwide Holdings, Inc.

      92,579      13,378,591

Marriott International, Inc., Class A

      78,947      13,360,990

Norwegian Cruise Line Holdings
Ltd.(b)(c)

      828,868      12,283,824

Royal Caribbean Cruises Ltd.(b)(c)

      222,347      15,706,592
              99,682,161

Household Appliances–0.19%

Whirlpool Corp.

      88,472      12,207,367

Household Products–0.96%

Church & Dwight Co., Inc.

      158,980      13,319,344

Clorox Co. (The)(c)

      85,516      13,292,607

Colgate-Palmolive Co.

      163,579      11,990,341

Kimberly-Clark Corp.

      93,415      11,681,546

Procter & Gamble Co. (The)

      84,304      11,596,858
              61,880,696

Housewares & Specialties–0.21%

Newell Brands, Inc.

      930,402      13,667,605

Human Resource & Employment Services–0.22%

Robert Half International, Inc.

      174,265      14,049,244

Hypermarkets & Super Centers–0.39%

Costco Wholesale Corp.

      25,559      12,375,157

Walmart, Inc.

      87,558      12,444,618
              24,819,775

Independent Power Producers & Energy Traders–0.17%

AES Corp. (The)

      446,112      11,010,044

Industrial Conglomerates–0.60%

      

3M Co.

      98,432      10,605,064

General Electric Co.

      196,791      16,670,166

Honeywell International, Inc.

      60,120      11,511,777
              38,787,007
      Shares      Value

Industrial Gases–0.38%

Air Products and Chemicals, Inc.

      39,417      $     11,272,474

Linde PLC (United Kingdom)

      37,316      12,999,775
              24,272,249

Industrial Machinery–2.51%

Dover Corp.

      92,674      13,891,833

Fortive Corp.

      193,596      12,905,109

IDEX Corp.

      54,092      12,169,618

Illinois Tool Works, Inc.

      57,895      13,498,798

Ingersoll Rand, Inc.

      238,932      13,874,781

Nordson Corp.

      54,629      11,998,714

Otis Worldwide Corp.

      162,161      13,722,064

Parker-Hannifin Corp.

      42,931      15,105,272

Pentair PLC

      282,297      15,791,694

Snap-on, Inc.

      52,898      13,154,675

Stanley Black & Decker, Inc.

      160,585      13,747,682

Xylem, Inc.

      114,386      11,741,723
              161,601,963

Industrial REITs–0.21%

Prologis, Inc.

      109,380      13,497,492

Insurance Brokers–0.95%

      

Aon PLC, Class A

      40,608      12,346,862

Arthur J. Gallagher & Co.

      66,325      12,425,989

Brown & Brown, Inc.

      221,272      12,406,721

Marsh & McLennan Cos., Inc.

      74,379      12,059,811

Willis Towers Watson PLC

      50,693      11,880,412
              61,119,795

Integrated Oil & Gas–0.58%

Chevron Corp.

      75,733      12,175,594

Exxon Mobil Corp.

      122,881      13,505,851

Occidental Petroleum Corp.

      203,245      11,902,027
              37,583,472

Integrated Telecommunication Services–0.40%

AT&T, Inc.

      666,481      12,603,156

Verizon Communications, Inc.

      340,191      13,202,812
              25,805,968

Interactive Home Entertainment–0.58%

Activision Blizzard, Inc.

      165,685      12,633,481

Electronic Arts, Inc.

      102,021      11,318,210

Take-Two Interactive Software, Inc.(b)

      124,664      13,656,941
              37,608,632

Interactive Media & Services–0.66%

Alphabet, Inc., Class A(b)

      69,443      6,254,037

Alphabet, Inc., Class C(b)

      62,004      5,598,961

Match Group, Inc.(b)

      286,913      11,883,936

Meta Platforms, Inc., Class A(b)

      107,988      18,891,421
       42,628,355

Internet & Direct Marketing Retail–0.60%

Amazon.com, Inc.(b)

      139,019      13,099,760

eBay, Inc.

      291,548      13,382,053

Etsy, Inc.(b)(c)

      100,356      12,184,222
       38,666,035

Internet Services & Infrastructure–0.36%

Akamai Technologies, Inc.(b)

      142,924      10,376,282
 

 

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

 

7   Invesco Equally-Weighted S&P 500 Fund

      Shares      Value

Internet Services & Infrastructure–(continued)

VeriSign, Inc.(b)

      64,365      $     12,668,963
              23,045,245

Investment Banking & Brokerage–0.78%

Charles Schwab Corp. (The)

      159,397      12,420,214

Goldman Sachs Group, Inc. (The)

      34,505      12,133,683

Morgan Stanley

      142,205      13,722,783

Raymond James Financial, Inc.

      112,137      12,162,379
              50,439,059

IT Consulting & Other Services–1.13%

Accenture PLC, Class A

      43,012      11,421,837

Cognizant Technology Solutions Corp., Class A

      218,086      13,658,726

DXC Technology Co.(b)

      483,402      13,409,571

EPAM Systems, Inc.(b)

      35,998      11,074,785

Gartner, Inc.(b)

      36,073      11,825,090

International Business Machines Corp.

      86,523      11,187,424
              72,577,433

Leisure Products–0.18%

Hasbro, Inc.

      213,870      11,764,989

Life & Health Insurance–1.19%

Aflac, Inc.

      181,863      12,393,963

Globe Life, Inc.(c)

      109,192      13,287,575

Lincoln National Corp.

      401,868      12,747,253

MetLife, Inc.

      176,245      12,642,054

Principal Financial Group, Inc.(c)

      144,466      12,938,375

Prudential Financial, Inc.

      125,512      12,551,200
              76,560,420

Life Sciences Tools & Services–2.33%

Agilent Technologies, Inc.

      83,184      11,809,633

Bio-Rad Laboratories, Inc., Class A(b)

      29,729      14,205,705

Bio-Techne Corp.

      157,600      11,448,064

Charles River Laboratories International, Inc.(b)(c)

      59,497      13,050,072

Danaher Corp.

      46,009      11,388,608

Illumina, Inc.(b)

      61,877      12,325,898

IQVIA Holdings, Inc.(b)

      61,013      12,719,380

Mettler-Toledo International, Inc.(b)

      8,473      12,147,825

PerkinElmer, Inc.

      91,435      11,390,058

Thermo Fisher Scientific, Inc.

      22,048      11,944,725

Waters Corp.(b)

      36,826      11,448,835

West Pharmaceutical Services, Inc.(c)

      52,008      16,488,096
              150,366,899

Managed Health Care–0.83%

Centene Corp.(b)

      147,514      10,089,958

Elevance Health, Inc.

      23,443      11,010,474

Humana, Inc.

      23,076      11,423,081

Molina Healthcare, Inc.(b)

      36,203      9,967,772

UnitedHealth Group, Inc.

      22,823      10,862,379
              53,353,664

Metal & Glass Containers–0.21%

Ball Corp.

      237,549      13,352,629

Movies & Entertainment–0.88%

Live Nation Entertainment, Inc.(b)

      177,277      12,774,581

Netflix, Inc.(b)

      38,850      12,514,750
      Shares      Value

Movies & Entertainment–(continued)

Walt Disney Co. (The)(b)

      136,251      $     13,571,962

Warner Bros Discovery, Inc.(b)

      1,128,122      17,621,266
              56,482,559

Multi-line Insurance–0.59%

American International Group, Inc.

      203,537      12,438,146

Assurant, Inc.

      97,600      12,433,264

Hartford Financial Services Group, Inc. (The)

      170,460      13,343,609
              38,215,019

Multi-Sector Holdings–0.19%

Berkshire Hathaway, Inc., Class B(b)

      40,484      12,354,907

Multi-Utilities–1.87%

Ameren Corp.

      143,586      11,875,998

CenterPoint Energy, Inc.

      417,837      11,624,225

CMS Energy Corp.

      204,486      12,058,539

Consolidated Edison, Inc.

      131,805      11,776,777

Dominion Energy, Inc.

      218,311      12,142,458

DTE Energy Co.

      108,568      11,910,995

NiSource, Inc.

      464,517      12,741,701

Public Service Enterprise
Group, Inc.(c)

      212,869      12,863,674

Sempra Energy

      78,952      11,839,642

WEC Energy Group, Inc.

      132,907      11,783,535
              120,617,544

Office REITs–0.39%

Alexandria Real Estate Equities,
Inc.(c)

      85,241      12,767,397

Boston Properties, Inc.

      191,009      12,507,269
              25,274,666

Oil & Gas Equipment & Services–0.65%

Baker Hughes Co., Class A

      459,336      14,055,682

Halliburton Co.

      379,005      13,731,351

Schlumberger Ltd.

      266,260      14,167,694
              41,954,727

Oil & Gas Exploration & Production–1.91%

APA Corp.

      303,945      11,665,409

ConocoPhillips

      115,644      11,951,807

Coterra Energy, Inc.(c)

      519,736      12,977,808

Devon Energy Corp.

      213,404      11,506,744

Diamondback Energy, Inc.

      98,172      13,801,020

EOG Resources, Inc.

      104,571      11,818,615

EQT Corp.

      356,690      11,834,974

Hess Corp.

      96,720      13,028,184

Marathon Oil Corp.

      486,173      12,227,251

Pioneer Natural Resources Co.

      59,454      11,915,176
              122,726,988

Oil & Gas Refining & Marketing–0.65%

Marathon Petroleum Corp.

      117,130      14,477,268

Phillips 66

      129,828      13,315,159

Valero Energy Corp.

      108,853      14,339,206
              42,131,633

Oil & Gas Storage & Transportation–0.79%

Kinder Morgan, Inc.

      729,119      12,438,770

ONEOK, Inc.

      200,206      13,103,483

Targa Resources Corp.

      185,414      13,739,177
 

 

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

 

8   Invesco Equally-Weighted S&P 500 Fund

      Shares      Value

Oil & Gas Storage & Transportation–(continued)

Williams Cos., Inc. (The)

      390,400      $     11,751,040
              51,032,470

Packaged Foods & Meats–2.28%

Campbell Soup Co.

      228,587      12,005,389

Conagra Brands, Inc.

      334,643      12,184,352

General Mills, Inc.

      148,219      11,784,893

Hershey Co. (The)

      52,496      12,510,847

Hormel Foods Corp.

      270,590      12,008,784

JM Smucker Co. (The)

      82,254      12,164,544

Kellogg Co.

      175,880      11,597,527

Kraft Heinz Co. (The)

      318,556      12,404,571

Lamb Weston Holdings, Inc.

      148,669      14,962,048

McCormick & Co., Inc.

      149,192      11,087,949

Mondelez International, Inc., Class A

      189,728      12,366,471

Tyson Foods, Inc., Class A

      199,578      11,823,001
              146,900,376

Paper Packaging–1.14%

Amcor PLC

      1,028,547      11,458,014

Avery Dennison Corp.

      71,586      13,042,253

International Paper Co.

      352,636      12,832,424

Packaging Corp. of America(c)

      94,168      12,874,649

Sealed Air Corp.

      250,553      12,181,887

WestRock Co.

      354,602      11,134,503
              73,523,730

Personal Products–0.19%

Estee Lauder Cos., Inc. (The), Class A

      51,180      12,439,299

Pharmaceuticals–1.76%

Bristol-Myers Squibb Co.

      161,400      11,130,144

Catalent, Inc.(b)

      284,761      19,426,395

Eli Lilly and Co.

      34,302      10,675,469

Johnson & Johnson

      72,397      11,095,564

Merck & Co., Inc.

      116,962      12,426,043

Organon & Co.

      462,203      11,319,352

Pfizer, Inc.

      246,000      9,980,220

Viatris, Inc.

      1,180,253      13,454,884

Zoetis, Inc.

      82,946      13,851,982
              113,360,053

Property & Casualty Insurance–1.65%

Allstate Corp. (The)

      98,975      12,746,001

Arch Capital Group Ltd.(b)

      211,911      14,833,770

Chubb Ltd.

      58,543      12,353,744

Cincinnati Financial Corp.

      120,132      14,499,932

Loews Corp.

      225,268      13,761,622

Progressive Corp. (The)

      98,339      14,113,613

Travelers Cos., Inc. (The)

      68,533      12,686,829

W.R. Berkley Corp.

      172,962      11,448,355
              106,443,866

Publishing–0.19%

News Corp., Class A

      537,143      9,212,003

News Corp., Class B(c)

      165,628      2,858,739
              12,070,742

Railroads–0.57%

CSX Corp.

      404,937      12,346,529

Norfolk Southern Corp.

      52,133      11,720,541
      Shares      Value

Railroads–(continued)

      

Union Pacific Corp.

      60,200      $     12,478,256
              36,545,326

Real Estate Services–0.22%

CBRE Group, Inc., Class A(b)

      167,763      14,283,342

Regional Banks–2.74%

Citizens Financial Group, Inc.

      319,516      13,342,988

Comerica, Inc.

      192,950      13,525,795

Fifth Third Bancorp

      386,839      14,042,256

First Republic Bank

      106,882      13,147,555

Huntington Bancshares, Inc.(c)

      874,442      13,396,451

KeyCorp

      730,375      13,358,559

M&T Bank Corp.

      84,047      13,051,658

PNC Financial Services Group, Inc. (The)

      82,575      13,040,244

Regions Financial Corp.

      577,799      13,474,273

Signature Bank

      107,313      12,346,361

SVB Financial Group(b)

      56,329      16,228,948

Truist Financial Corp.

      297,058      13,946,873

Zions Bancorporation N.A.

      267,911      13,561,655
              176,463,616

Reinsurance–0.22%

Everest Re Group Ltd.

      37,351      14,341,663

Research & Consulting Services–0.93%

CoStar Group, Inc.(b)

      157,660      11,140,256

Equifax, Inc.

      64,437      13,050,426

Jacobs Solutions, Inc.

      104,838      12,528,141

Leidos Holdings, Inc.

      119,074      11,558,513

Verisk Analytics, Inc.

      69,711      11,928,249
              60,205,585

Residential REITs–1.41%

AvalonBay Communities, Inc.

      75,027      12,943,658

Camden Property Trust

      109,682      12,587,106

Equity Residential

      202,824      12,680,557

Essex Property Trust, Inc.

      59,235      13,509,134

Invitation Homes, Inc.

      402,758      12,590,215

Mid-America Apartment Communities, Inc.

      78,713      12,601,951

UDR, Inc.

      318,956      13,664,075
              90,576,696

Restaurants–1.12%

Chipotle Mexican Grill, Inc.(b)

      8,053      12,007,667

Darden Restaurants, Inc.

      89,242      12,760,714

Domino’s Pizza, Inc.

      34,118      10,031,033

McDonald’s Corp.

      45,571      12,026,643

Starbucks Corp.

      124,994      12,760,637

Yum! Brands, Inc.

      99,625      12,668,315
              72,255,009

Retail REITs–0.98%

Federal Realty Investment Trust

      118,190      12,620,328

Kimco Realty Corp.

      586,049      12,078,470

Realty Income Corp.

      197,411      12,624,434

Regency Centers Corp.

      193,566      12,175,301

Simon Property Group, Inc.

      108,977      13,305,002
              62,803,535
 

 

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

 

9   Invesco Equally-Weighted S&P 500 Fund

      Shares      Value

Semiconductor Equipment–1.15%

      

Applied Materials, Inc.

      118,531      $     13,767,376

Enphase Energy, Inc.(b)

      39,816      8,382,463

KLA Corp.

      31,419      11,919,740

Lam Research Corp.

      27,435      13,333,684

SolarEdge Technologies, Inc.(b)(c)

      39,340      12,506,973

Teradyne, Inc.

      137,681      13,925,056
              73,835,292

Semiconductors–3.23%

Advanced Micro Devices, Inc.(b)

      185,495      14,576,197

Analog Devices, Inc.

      75,428      13,838,775

Broadcom, Inc.

      22,686      13,482,063

First Solar, Inc.(b)

      84,281      14,255,288

Intel Corp.

      450,535      11,231,838

Microchip Technology, Inc.

      167,674      13,586,624

Micron Technology, Inc.

      231,877      13,407,128

Monolithic Power Systems, Inc.

      32,197      15,592,685

NVIDIA Corp.

      73,508      17,065,617

NXP Semiconductors N.V. (China)

      74,965      13,379,753

ON Semiconductor Corp.(b)

      180,393      13,964,222

Qorvo, Inc.(b)

      130,359      13,151,920

QUALCOMM, Inc.

      106,872      13,201,898

Skyworks Solutions, Inc.

      132,221      14,751,897

Texas Instruments, Inc.

      73,012      12,517,908
              208,003,813

Soft Drinks–0.75%

Coca-Cola Co. (The)

      201,506      11,991,622

Keurig Dr Pepper, Inc.

      335,438      11,589,383

Monster Beverage Corp.(b)

      127,180      12,941,837

PepsiCo, Inc.

      69,487      12,058,079
              48,580,921

Specialized REITs–1.91%

American Tower Corp.

      59,499      11,781,397

Crown Castle, Inc.

      90,996      11,897,727

Digital Realty Trust, Inc.(c)

      118,952      12,398,367

Equinix, Inc.

      18,282      12,582,952

Extra Space Storage, Inc.

      81,256      13,378,800

Iron Mountain, Inc.(c)

      233,839      12,335,007

Public Storage

      41,649      12,450,969

SBA Communications Corp., Class A

      43,013      11,155,422

VICI Properties, Inc.

      374,982      12,573,147

Weyerhaeuser Co.

      404,165      12,630,156
              123,183,944

Specialty Chemicals–1.58%

Albemarle Corp.

      49,018      12,465,768

Celanese Corp.

      122,204      14,203,771

DuPont de Nemours, Inc.

      184,688      13,487,765

Eastman Chemical Co.(c)

      149,385      12,727,602

Ecolab, Inc.

      84,623      13,486,367

International Flavors & Fragrances, Inc.

      118,619      11,055,291

PPG Industries, Inc.

      97,563      12,884,170

Sherwin-Williams Co. (The)

      50,313      11,136,782
              101,447,516

Specialty Stores–0.61%

Bath & Body Works, Inc.

      300,712      12,290,099

Tractor Supply Co.

      58,277      13,593,693
      Shares      Value

Specialty Stores–(continued)

      

Ulta Beauty, Inc.(b)

      26,211      $     13,598,267
              39,482,059

Steel–0.46%

Nucor Corp.(c)

      86,511      14,485,402

Steel Dynamics, Inc.

      119,438      15,062,326
              29,547,728

Systems Software–1.02%

Fortinet, Inc.(b)(c)

      244,066      14,507,283

Gen Digital, Inc.

      561,232      10,949,636

Microsoft Corp.

      50,264      12,536,847

Oracle Corp.

      159,317      13,924,306

ServiceNow, Inc.(b)

      31,596      13,654,843
              65,572,915

Technology Distributors–0.22%

CDW Corp.

      68,596      13,885,202

Technology Hardware, Storage & Peripherals–1.24%

Apple, Inc.

      87,738      12,933,459

Hewlett Packard Enterprise Co.

      787,810      12,297,714

HP, Inc.

      451,014      13,313,933

NetApp, Inc.

      197,902      12,774,574

Seagate Technology Holdings PLC

      230,888      14,906,129

Western Digital Corp.(b)

      350,059      13,470,271
              79,696,080

Tobacco–0.38%

Altria Group, Inc.

      272,386      12,646,882

Philip Morris International, Inc. (Switzerland)

      124,627      12,126,207
              24,773,089

Trading Companies & Distributors–0.67%

Fastenal Co.

      249,669      12,872,934

United Rentals, Inc.

      35,274      16,526,927

W.W. Grainger, Inc.

      20,983      14,025,667
              43,425,528

Trucking–0.42%

J.B. Hunt Transport Services, Inc.

      71,487      12,924,135

Old Dominion Freight Line, Inc.

      42,542      14,432,799
              27,356,934

Water Utilities–0.18%

American Water Works Co., Inc.

      81,485      11,438,864

Wireless Telecommunication Services–0.20%

T-Mobile US, Inc.(b)

      89,872      12,778,001

Total Common Stocks & Other Equity Interests
(Cost $3,493,922,676)

             6,426,663,557

Money Market Funds–0.14%

Invesco Government & Agency Portfolio, Institutional
Class, 4.51%(d)(f)

      3,305,718      3,305,718

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(d)(f)

      2,360,709      2,361,181
 

 

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

 

10   Invesco Equally-Weighted S&P 500 Fund

     Shares      Value  

 

  

Money Market Funds–(continued)

 

Invesco Treasury Portfolio, Institutional Class, 4.50%(d)(f)

      3,777,963      $ 3,777,963  

 

  

Total Money Market Funds
(Cost $9,444,862)

 

      9,444,862  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.91%
(Cost $3,503,367,538)

         6,436,108,419  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–2.81%

 

Invesco Private Government Fund, 4.58%(d)(f)(g)

      50,626,741        50,626,741  

 

  
     Shares      Value  

 

  

Money Market Funds–(continued)

 

Invesco Private Prime Fund, 4.83%(d)(f)(g)

      130,195,245      $ 130,221,280  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $180,857,680)

 

      180,848,021  

 

  

TOTAL INVESTMENTS IN
SECURITIES–102.72%
(Cost $3,684,225,218)

 

      6,616,956,440  

 

  

OTHER ASSETS LESS LIABILITIES—(2.72)%

 

      (175,526,980 ) 

 

  

NET ASSETS–100.00%

 

    $ 6,441,429,460  

 

  
 

 

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at February 28, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

     Value
August 31, 2022		    

Purchases

at Cost

    

Proceeds

from Sales

     Change in
Unrealized
Appreciation
(Depreciation)		     Realized
Gain
(Loss)		     Value
February 28, 2023		     Dividend Income  

Invesco Ltd.

       $  11,939,169         $          244,699       $         (859,069)       $1,288,390       $(368,487)          $  12,244,702          $   268,775  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     12,303,927         171,577,931       (180,576,140 )      -       -       3,305,718          165,340  

Invesco Liquid Assets Portfolio, Institutional Class

     8,934,612         122,555,665       (129,130,257 )      (4,092)       5,253       2,361,181          121,156  

Invesco Treasury Portfolio, Institutional Class

     14,061,631         196,089,064       (206,372,732 )      -       -       3,777,963          188,740  
Investments Purchased with Cash Collateral from Securities on Loan:                                                        

Invesco Private Government Fund

     69,150,158         594,139,746       (612,663,163 )      -       -       50,626,741          1,690,034*  

Invesco Private Prime Fund

     192,849,474         1,404,434,470       (1,467,068,834 )      (18,891)       25,061       130,221,280          4,644,286*  

Total

       $309,238,971         $2,489,041,575       $(2,596,670,195 )      $1,265,407       $(338,173)          $202,537,585          $  7,078,331  

 

  *

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

 

(e) 

All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J.

(f)

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(g)

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

 

Open Futures Contracts  
Long Futures Contracts    Number of
Contracts		      Expiration
Month		      Notional
Value		      Value      Unrealized
Appreciation
(Depreciation)		  

Equity Risk

                                             

CME E-Mini Standard & Poor’s MidCap 400 Index

      25        March-2023        $6,508,000        $  (47,635)        $  (47,635)  

E-Mini S&P 500 Index

      36        March-2023        7,155,900        (90,381)        (90,381)  

          Total Futures Contracts

                                 $(138,016)        $(138,016)  

 

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

 

11   Invesco Equally-Weighted S&P 500 Fund

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Information Technology

        15.39 %

Industrials

        14.28

Financials

        13.69

Health Care

        12.32

Consumer Discretionary

        11.56

Consumer Staples

        6.23

Real Estate

        5.92

Materials

        5.78

Utilities

        5.54

Energy

        4.59

Communication Services

        4.47

Money Market Funds Plus Other Assets Less Liabilities

        0.23

    

 

 

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

 

12   Invesco Equally-Weighted S&P 500 Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value (Cost $ 3,485,953,751)*

    $ 6,414,418,855  

 

  

Investments in affiliates, at value
(Cost $ 198,271,467)

      202,537,585  

 

  

Receivable for:

   

Fund shares sold

      3,775,576  

 

  

Dividends

      10,581,838  

 

  

Investment for trustee deferred compensation and retirement plans

      168,436  

 

  

Other assets

      382,453  

 

  

Total assets

      6,631,864,743  

 

  

Liabilities:

   

Other investments:

   

Variation margin payable - futures contracts

      33,927  

 

  

Payable for:

   

Fund shares reacquired

      4,713,453  

 

  

Collateral upon return of securities loaned

      180,857,680  

 

  

Accrued fees to affiliates

      2,921,389  

 

  

Accrued trustees’ and officers’ fees and benefits

      4,237  

 

  

Accrued other operating expenses

      1,652,704  

 

  

Trustee deferred compensation and retirement plans

      251,893  

 

  

Total liabilities

      190,435,283  

 

  

Net assets applicable to shares outstanding

    $ 6,441,429,460  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 3,461,156,004  

 

  

Distributable earnings

      2,980,273,456  

 

  
   $ 6,441,429,460  

 

  

Net Assets:

   

Class A

    $ 2,789,299,275  

 

  

Class C

    $ 616,979,321  

 

  

Class R

    $ 165,542,386  

 

  

Class Y

    $ 2,294,686,129  

 

  

Class R6

    $ 574,922,349  

 

  

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

 

Class A

      42,106,903  

 

  

Class C

      9,931,727  

 

  

Class R

      2,521,598  

 

  

Class Y

      34,118,547  

 

  

Class R6

      8,527,679  

 

  

Class A:

   

Net asset value per share

    $ 66.24  

 

  

Maximum offering price per share
(Net asset value of $66.24 ÷ 94.50%)

    $ 70.10  

 

  

Class C:

   

Net asset value and offering price per share

    $ 62.12  

 

  

Class R:

   

Net asset value and offering price per share

    $ 65.65  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 67.26  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 67.42  

 

  

 

*

At February 28, 2023, securities with an aggregate value of $175,039,683 were on loan to brokers.

 

 

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

 

13   Invesco Equally-Weighted S&P 500 Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $18,699)

    $ 62,166,261  

 

  

Dividends from affiliates (includes net securities lending income of $304,817)

      1,048,828  

 

  

Total investment income

      63,215,089  

 

  

Expenses:

   

Advisory fees

      3,349,404  

 

  

Administrative services fees

      426,202  

 

  

Custodian fees

      21,354  

 

  

Distribution fees:

   

Class A

      3,345,914  

 

  

Class C

      3,260,695  

 

  

Class R

      383,443  

 

  

Transfer agent fees – A, C, R and Y

      3,703,683  

 

  

Transfer agent fees – R6

      81,451  

 

  

Trustees’ and officers’ fees and benefits

      25,862  

 

  

Registration and filing fees

      107,068  

 

  

Licensing fees

      712,123  

 

  

Reports to shareholders

      128,749  

 

  

Professional services fees

      46,053  

 

  

Other

      28,883  

 

  

Total expenses

      15,620,884  

 

  

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

      (30,896 ) 

 

  

Net expenses

      15,589,988  

 

  

Net investment income

      47,625,101  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      95,453,393  

 

  

Affiliated investment securities

      (338,173 ) 

 

  

Futures contracts

      2,166,719  

 

  
     97,281,939  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      165,254,962  

 

  

Affiliated investment securities

      1,265,407  

 

  

Futures contracts

      (414,913 ) 

 

  
     166,105,456  

 

  

Net realized and unrealized gain

      263,387,395  

 

  

Net increase in net assets resulting from operations

    $ 311,012,496  

 

  

 

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

 

14   Invesco Equally-Weighted S&P 500 Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

    

February 28,

2023

    

August 31,

2022

  

 

  

Operations:

     

Net investment income

    $ 47,625,101     $ 85,151,233  

 

  

Net realized gain

      97,281,939       646,429,618  

 

  

Change in net unrealized appreciation (depreciation)

      166,105,456       (1,346,080,060 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      311,012,496       (614,499,209 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (209,942,232 )      (277,149,514 ) 

 

  

Class C

      (52,192,213 )      (81,017,860 ) 

 

  

Class R

      (12,121,490 )      (13,741,102 ) 

 

  

Class Y

      (178,908,251 )      (248,365,021 ) 

 

  

Class R6

      (43,715,271 )      (60,065,331 ) 

 

  

Total distributions from distributable earnings

      (496,879,457 )      (680,338,828 ) 

 

  

Share transactions–net:

     

Class A

      198,318,944       236,948,870  

 

  

Class C

      (49,443,628 )      (96,841,788 ) 

 

  

Class R

      23,245,475       27,584,873  

 

  

Class Y

      108,743,062       39,955,023  

 

  

Class R6

      29,561,784       (241,730,990 ) 

 

  

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

      310,425,637       (34,084,012 ) 

 

  

Net increase (decrease) in net assets

      124,558,676       (1,328,922,049 ) 

 

  

Net assets:

     

Beginning of period

      6,316,870,784       7,645,792,833  

 

  

End of period

    $ 6,441,429,460     $ 6,316,870,784  

 

  

 

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

 

15   Invesco Equally-Weighted S&P 500 Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                                                        

Six months ended 02/28/23

       $68.51       $0.49       $  2.66       $  3.15       $(0.87 )       $(4.55 )       $(5.42 )       $66.24       4.92 %       $2,789,299       0.53 %(d)       0.53 %(d)       1.48 %(d)       10 %

Year ended 08/31/22

       82.72       0.90       (7.40 )       (6.50 )       (0.93 )       (6.78 )       (7.71 )       68.51       (8.85 )       2,670,328       0.53       0.53       1.18       24

Year ended 08/31/21

       62.02       0.82       24.05       24.87       (0.99 )       (3.18 )       (4.17 )       82.72       41.81       2,971,521       0.52       0.52       1.13       23

Year ended 08/31/20

       60.01       0.99       3.88       4.87       (1.03 )       (1.83 )       (2.86 )       62.02       8.08 (e)        2,182,945       0.53       0.53       1.67       26

Year ended 08/31/19

       64.04       0.92       (1.38 )       (0.46 )       (0.82 )       (2.75 )       (3.57 )       60.01       (0.09 )       2,235,827       0.52       0.52       1.55       22

Year ended 08/31/18

       56.49       0.75       8.45       9.20       (0.81 )       (0.84 )       (1.65 )       64.04       16.52       2,293,892       0.53       0.53       1.23       20

Class C

                                                        

Six months ended 02/28/23

       64.65       0.23       2.50       2.73       (0.71 )       (4.55 )       (5.26 )       62.12       4.53       616,979       1.28 (d)        1.28 (d)        0.73 (d)        10

Year ended 08/31/22

       78.47       0.31       (7.00 )       (6.69 )       (0.35 )       (6.78 )       (7.13 )       64.65       (9.53 )       689,583       1.28       1.28       0.43       24

Year ended 08/31/21

       58.96       0.30       22.86       23.16       (0.47 )       (3.18 )       (3.65 )       78.47       40.82 (f)        945,674       1.21 (f)        1.21 (f)        0.44 (f)        23

Year ended 08/31/20

       57.18       0.52       3.66       4.18       (0.57 )       (1.83 )       (2.40 )       58.96       7.27 (e)        879,154       1.28       1.28       0.92       26

Year ended 08/31/19

       61.18       0.46       (1.31 )       (0.85 )       (0.40 )       (2.75 )       (3.15 )       57.18       (0.83 )       1,083,024       1.27       1.27       0.80       22

Year ended 08/31/18

       54.05       0.32       8.09       8.41       (0.44 )       (0.84 )       (1.28 )       61.18       15.75 (f)        1,252,161       1.21 (f)        1.21 (f)        0.55 (f)        20

Class R

                                                        

Six months ended 02/28/23

       67.97       0.40       2.65       3.05       (0.82 )       (4.55 )       (5.37 )       65.65       4.79       165,542       0.78 (d)        0.78 (d)        1.23 (d)        10

Year ended 08/31/22

       82.12       0.70       (7.34 )       (6.64 )       (0.73 )       (6.78 )       (7.51 )       67.97       (9.08 )       146,993       0.78       0.78       0.93       24

Year ended 08/31/21

       61.60       0.63       23.88       24.51       (0.81 )       (3.18 )       (3.99 )       82.12       41.44       147,581       0.77       0.77       0.88       23

Year ended 08/31/20

       59.63       0.83       3.84       4.67       (0.87 )       (1.83 )       (2.70 )       61.60       7.80 (e)        127,559       0.78       0.78       1.42       26

Year ended 08/31/19

       63.64       0.77       (1.36 )       (0.59 )       (0.67 )       (2.75 )       (3.42 )       59.63       (0.33 )       135,225       0.77       0.77       1.30       22

Year ended 08/31/18

       56.15       0.59       8.42       9.01       (0.68 )       (0.84 )       (1.52 )       63.64       16.25       137,036       0.78       0.78       0.98       20

Class Y

                                                        

Six months ended 02/28/23

       69.44       0.58       2.72       3.30       (0.93 )       (4.55 )       (5.48 )       67.26       5.07       2,294,686       0.28 (d)        0.28 (d)        1.73 (d)        10

Year ended 08/31/22

       83.74       1.10       (7.50 )       (6.40 )       (1.12 )       (6.78 )       (7.90 )       69.44       (8.64 )       2,248,749       0.28       0.28       1.43       24

Year ended 08/31/21

       62.74       1.01       24.32       25.33       (1.15 )       (3.18 )       (4.33 )       83.74       42.15       2,671,007       0.27       0.27       1.38       23

Year ended 08/31/20

       60.67       1.15       3.93       5.08       (1.18 )       (1.83 )       (3.01 )       62.74       8.35 (e)        2,106,008       0.28       0.28       1.92       26

Year ended 08/31/19

       64.71       1.08       (1.40 )       (0.32 )       (0.97 )       (2.75 )       (3.72 )       60.67       0.18       2,902,956       0.27       0.27       1.80       22

Year ended 08/31/18

       57.06       0.91       8.53       9.44       (0.95 )       (0.84 )       (1.79 )       64.71       16.80       3,444,820       0.28       0.28       1.48       20

Class R6

                                                        

Six months ended 02/28/23

       69.59       0.62       2.71       3.33       (0.95 )       (4.55 )       (5.50 )       67.42       5.11       574,922       0.18 (d)        0.18 (d)        1.83 (d)        10

Year ended 08/31/22

       83.90       1.18       (7.51 )       (6.33 )       (1.20 )       (6.78 )       (7.98 )       69.59       (8.54 )       561,218       0.19       0.19       1.52       24

Year ended 08/31/21

       62.86       1.09       24.36       25.45       (1.23 )       (3.18 )       (4.41 )       83.90       42.30       910,010       0.16       0.16       1.49       23

Year ended 08/31/20

       60.78       1.22       3.94       5.16       (1.25 )       (1.83 )       (3.08 )       62.86       8.47 (e)        740,456       0.16       0.16       2.04       26

Year ended 08/31/19

       64.83       1.15       (1.40 )       (0.25 )       (1.05 )       (2.75 )       (3.80 )       60.78       0.29       1,024,706       0.16       0.16       1.91       22

Year ended 08/31/18

       57.15       0.98       8.56       9.54       (1.02 )       (0.84 )       (1.86 )       64.83       16.96       1,000,614       0.16       0.16       1.60       20

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

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

(d) 

Annualized.

(e) 

Amount includes the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the Index that occurred on April 24, 2020. Had the pay-in not been made, the total return would have been 6.49%, 5.61%, 6.21%, 6.78% and 6.90% for Class A, Class C, Class R, Class Y and Class R6 shares, respectively.

(f) 

The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.93% and 0.94% for the years ended August 31, 2021 and 2018, respectively.

 

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

 

16   Invesco Equally-Weighted S&P 500 Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Equally-Weighted S&P 500 Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is total return through growth of capital and current income.

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

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

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

A.

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

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.

 

17   Invesco Equally-Weighted S&P 500 Fund

Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

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

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

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

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 on a timely basis 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 as a reduction of the cost of the related investment. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

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

E.

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

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

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

F.

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

G.

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

H.

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

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are

 

18   Invesco Equally-Weighted S&P 500 Fund

  net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $13,973 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.

J.

Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

K.

Collateral – To the extent the Fund has 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. This practice does not apply to securities pledged as collateral for securities lending transactions.

L.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $2 billion

      0.120%  

 

  

Over $ 2 billion

      0.100%  

 

  

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.11%.

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

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

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $18,982.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

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

 

19   Invesco Equally-Weighted S&P 500 Fund

1.00% of Class C average daily net assets and up to 0.50% of Class R average daily net assets. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plan would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under these agreements are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $236,261 in front-end sales commissions from the sale of Class A shares and $3,142 and $15,552 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended February 28, 2023, the Fund incurred $105,284 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1     Level 2      Level 3    Total  

 

  

Investments in Securities

           

 

  

Common Stocks & Other Equity Interests

      $6,426,663,557       $                  –      $–      $6,426,663,557  

 

  

Money Market Funds

      9,444,862       180,848,021        –      190,292,883  

 

  

Total Investments in Securities

      6,436,108,419       180,848,021        –      6,616,956,440  

 

  

Other Investments - Liabilities*

           

 

  

Futures Contracts

      (138,016 )      –        –      (138,016 ) 

 

  

Total Investments

      $6,435,970,403       $180,848,021      $–      $6,616,818,424  

 

  

 

*

Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  
Derivative Liabilities   

Equity

Risk

  

 

  

Unrealized depreciation on futures contracts –Exchange-Traded(a)

    $ (138,016 ) 

 

  

Derivatives not subject to master netting agreements

      138,016  

 

  

Total Derivative Liabilities subject to master netting agreements

    $ –  

 

  

 

(a) 

The daily variation margin receivable (payable) at period end is recorded in the Statement of Assets and Liabilities.

 

20   Invesco Equally-Weighted S&P 500 Fund

Effect of Derivative Investments for the six months ended February 28, 2023

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

 

     Location of Gain (Loss) on
Statement of Operations
     

Equity

Risk

Realized Gain:

     

Futures contracts

      $ 2,166,719             

Change in Net Unrealized Appreciation (Depreciation):

     

Futures contracts

         (414,913)            

Total

      $ 1,751,806             

The table below summarizes the average notional value of derivatives held during the period.

 

     Futures  
     Contracts  

 

  

Average notional value

    $ 30,901,010  

 

  

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $11,914.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

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

NOTE 7–Cash Balances

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

NOTE 8–Tax Information

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

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

The Fund did not have a capital loss carryforward as of August 31, 2022.

NOTE 9–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $654,747,837 and $768,676,893, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $3,015,237,537  

 

  

Aggregate unrealized (depreciation) of investments

      (129,931,658 ) 

 

  

Net unrealized appreciation of investments

      $2,885,305,879  

 

  

Cost of investments for tax purposes is $ 3,731,512,545.

 

21   Invesco Equally-Weighted S&P 500 Fund

NOTE 10–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      1,889,948     $ 126,341,011       3,615,028     $ 274,289,380  

 

  

Class C

      404,504       25,577,768       766,506       55,091,421  

 

  

Class R

      378,395       25,165,574       594,426       44,284,491  

 

  

Class Y

      4,380,435       298,677,858       6,133,992       468,254,247  

 

  

Class R6

      621,473       42,661,056       1,634,835       125,913,809  

 

  

Issued as reinvestment of dividends:

         

Class A

      2,911,317       185,392,658       3,207,507       246,176,187  

 

  

Class C

      798,903       47,782,412       1,022,234       74,428,870  

 

  

Class R

      190,686       12,039,940       180,083       13,736,685  

 

  

Class Y

      2,129,933       137,636,274       2,427,964       188,555,664  

 

  

Class R6

      641,704       41,563,154       727,726       56,595,240  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      1,154,230       77,905,427       1,572,192       118,007,098  

 

  

Class C

      (1,227,714 )      (77,905,427 )      (1,661,097 )      (118,007,098 ) 

 

  

Reacquired:

         

Class A

      (2,828,547 )      (191,320,152 )      (5,336,814 )      (401,523,795 ) 

 

  

Class C

      (711,166 )      (44,898,381 )      (1,511,113 )      (108,354,981 ) 

 

  

Class R

      (210,189 )      (13,960,039 )      (408,831 )      (30,436,303 ) 

 

  

Class Y

      (4,774,333 )      (327,571,070 )      (8,074,992 )      (616,854,888 ) 

 

  

Class R6

      (800,558 )      (54,662,426 )      (5,143,568 )      (424,240,039 ) 

 

  

Net increase (decrease) in share activity

      4,949,021     $ 310,425,637       (253,922 )    $ (34,084,012 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 54% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

22   Invesco Equally-Weighted S&P 500 Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

         

ACTUAL

  

HYPOTHETICAL

(5% annual return before expenses)

     
    

Beginning

    Account Value    
(09/01/22)

  

Ending

    Account Value    
(02/28/23)1

  

Expenses

      Paid During      
Period2

  

Ending

    Account Value      
(02/28/23)

  

Expenses

      Paid During      
Period2

  

      Annualized      
Expense

Ratio

Class A

   $1,000.00   $1,049.30   $2.69   $1,022.17   $2.66   0.53%

Class C

     1,000.00     1,045.40     6.49     1,018.45     6.41   1.28   

Class R

     1,000.00     1,047.90     3.96     1,020.93     3.91   0.78   

Class Y

     1,000.00     1,050.70     1.42     1,023.41     1.40   0.28   

Class R6

     1,000.00     1,051.10     0.92     1,023.90     0.90   0.18   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

23   Invesco Equally-Weighted S&P 500 Fund

 

 

 

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Go paperless with eDelivery

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

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

 

∎   Fund reports and prospectuses
∎   Quarterly statements
∎   Daily confirmations
∎   Tax forms

 

 

Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074                    Invesco Distributors, Inc.    MS-EWSP-SAR-1                                         

LOGO

 

 

Semiannual Report to Shareholders

 

  

February 28, 2023

 

 

Invesco Equity and Income Fund

 

Nasdaq:

A: ACEIX ∎ C: ACERX ∎ R: ACESX ∎ Y: ACETX ∎ R5: ACEKX ∎ R6: IEIFX

 

2    Fund Performance      
4    Schedule of Investments      
14    Financial Statements                                                            
17    Financial Highlights      
18    Notes to Financial Statements      
25    Fund Expenses      

 

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

      3.01 % 

Class C Shares

      2.55  

Class R Shares

      2.76  

Class Y Shares

      3.15  

Class R5 Shares

      3.07  

Class R6 Shares

      3.11  

Russell 1000 Value Index▼ (Broad Market Index)

      4.07  

Bloomberg U.S. Government/Credit Index▼ (Style-Specific Index)

      -2.02  

Lipper Mixed-Asset Target Allocation Growth Funds Index∎ (Peer Group Index)

      1.57  

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

 

 

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

 

  The Bloomberg U.S. Government/Credit Index is a broad-based benchmark that includes investment-grade, US dollar-denominated, fixed-rate Treasuries, government-related and corporate securities.

 

  The Lipper Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index considered representative of mixed-asset target allocation growth funds tracked by Lipper.

 

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

 

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

 

 

 

 

 

For more information about your Fund

 

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

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

 

 

2   Invesco Equity and Income Fund

    

    

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

 Class A Shares

 

 Inception (8/3/60)

      9.78 % 

 10 Years

      7.14  

   5 Years

      4.51  

   1 Year

      -10.76  

 Class C Shares

 

 Inception (7/6/93)

      8.68 % 

 10 Years

      7.11  

   5 Years

      4.91  

   1 Year

      -7.15  

 Class R Shares

 

 Inception (10/1/02)

      7.54 % 

 10 Years

      7.47  

   5 Years

      5.42  

   1 Year

      -5.74  

 Class Y Shares

 

 Inception (12/22/04)

      7.02 % 

 10 Years

      8.02  

   5 Years

      5.97  

   1 Year

      -5.28  

 Class R5 Shares

 

 Inception (6/1/10)

      8.97 % 

 10 Years

      8.08  

   5 Years

      6.03  

   1 Year

      -5.24  

 Class R6 Shares

 

 Inception (9/24/12)

      8.45 % 

 10 Years

      8.16  

   5 Years

      6.10  

  1 Year

      -5.27  

Effective June 1, 2010, Class A, Class C, Class I and Class R shares of the predecessor fund, VanKampen Equity and Income Fund, advised by VanKampen Asset Management were reorganized into Class A, Class C, Class Y and Class R shares, respectively, of Invesco VanKampen Equity and Income Fund (renamed Invesco Equity and Income Fund). Returns shown above, prior to June 1, 2010, for Class A, Class C, Class R and Class Y shares are those for Class A, Class C, Class R and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

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

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

    

 

 

3   Invesco Equity and Income Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

    

    

Shares

     

    

Value

  

 

  

Common Stocks & Other Equity Interests–64.33%

 

Aerospace & Defense–1.93%

 

Raytheon Technologies Corp.

      1,300,237      $      127,540,247  

 

  

Textron, Inc.

      1,400,857        101,604,158  

 

  
        229,144,405  

 

  

Apparel Retail–1.16%

 

TJX Cos., Inc. (The)

      1,793,701        137,397,497  

 

  

Application Software–1.05%

 

salesforce.com, inc.(b)

      323,373        52,907,056  

 

  

Splunk, Inc.(b)

      705,130        72,275,825  

 

  
        125,182,881  

 

  

Asset Management & Custody Banks–0.92%

 

KKR & Co., Inc., Class A

      1,946,507        109,685,669  

 

  

Automobile Manufacturers–1.70%

 

General Motors Co.

      5,207,750        201,748,235  

 

  

Building Products–1.28%

 

Johnson Controls International PLC

      2,425,409        152,121,652  

 

  

Cable & Satellite–1.57%

 

Charter Communications, Inc.,

      

Class A(b)(c)

      234,750        86,296,448  

 

  

Comcast Corp., Class A(c)

      2,681,585        99,674,514  

 

  
        185,970,962  

 

  

Casinos & Gaming–0.96%

 

Las Vegas Sands Corp.(b)

      1,976,631        113,596,984  

 

  

Communications Equipment–1.11%

 

Cisco Systems, Inc.

      2,718,678        131,638,389  

 

  

Consumer Finance–0.77%

 

American Express Co.

      526,906        91,676,375  

 

  

Data Processing & Outsourced Services–1.47%

 

Fiserv, Inc.(b)

      807,420        92,925,968  

 

  

PayPal Holdings, Inc.(b)

      1,117,952        82,281,267  

 

  
        175,207,235  

 

  

Distillers & Vintners–0.86%

 

Diageo PLC (United Kingdom)

      2,389,920        101,628,754  

 

  

Diversified Banks–4.59%

 

Bank of America Corp.

      6,449,917        221,232,153  

 

  

Wells Fargo & Co.

      6,923,420        323,808,353  

 

  
        545,040,506  

 

  

Electric Utilities–0.88%

 

American Electric Power Co., Inc.

      705,669        62,077,702  

 

  

Exelon Corp.

      1,052,364        42,504,982  

 

  
        104,582,684  

 

  

Electrical Components & Equipment–0.57%

 

Emerson Electric Co.

      820,822        67,890,188  

 

  
    

    

Shares

     

    

Value

  

 

  

Electronic Manufacturing Services–0.62%

 

TE Connectivity Ltd.

      574,859      $        73,191,048  

 

  

Fertilizers & Agricultural Chemicals–0.71%

 

Corteva, Inc.

      1,354,071        84,345,083  

 

  

Food Distributors–1.47%

 

Sysco Corp.

      1,196,477        89,221,290  

 

  

US Foods Holding Corp.(b)

      2,262,205        84,900,553  

 

  
        174,121,843  

 

  

Gold–0.49%

 

Barrick Gold Corp. (Canada)

      3,626,950        58,466,434  

 

  

Health Care Distributors–0.70%

 

McKesson Corp.

      237,162        82,961,639  

 

  

Health Care Equipment–1.72%

 

Medtronic PLC

      1,522,554        126,067,471  

 

  

Zimmer Biomet Holdings, Inc.

      628,238        77,819,841  

 

  
        203,887,312  

 

  

Health Care Facilities–0.67%

 

Universal Health Services, Inc., Class B

      593,694        79,299,708  

 

  

Health Care Services–1.76%

 

Cigna Group (The)

      482,977        141,077,582  

 

  

CVS Health Corp.

      815,680        68,141,907  

 

  
        209,219,489  

 

  

Hotels, Resorts & Cruise Lines–0.86%

 

Booking Holdings, Inc.(b)

      40,563        102,381,012  

 

  

Industrial Machinery–1.60%

 

Parker-Hannifin Corp.

      533,034        187,548,013  

 

  

Stanley Black & Decker, Inc.

      23,559        2,016,886  

 

  
        189,564,899  

 

  

Insurance Brokers–0.96%

 

Willis Towers Watson PLC

      488,025        114,373,539  

 

  

Integrated Oil & Gas–2.65%

 

Chevron Corp.

      718,568        115,524,177  

 

  

Exxon Mobil Corp.

      1,812,734        199,237,594  

 

  
        314,761,771  

 

  

Interactive Media & Services–0.67%

 

Meta Platforms, Inc., Class A(b)

      453,667        79,364,505  

 

  

Internet & Direct Marketing Retail–0.79%

 

Amazon.com, Inc.(b)

      999,920        94,222,462  

 

  

Investment Banking & Brokerage–3.05%

 

Charles Schwab Corp. (The)

      1,387,424        108,108,078  

 

  

Goldman Sachs Group, Inc. (The)

      386,079        135,764,680  

 

  

Morgan Stanley

      1,227,013        118,406,755  

 

  
        362,279,513  

 

  
 

 

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

 

4   Invesco Equity and Income Fund

    

    

Shares

     

    

Value

  

 

  

IT Consulting & Other Services–0.87%

 

Cognizant Technology Solutions Corp., Class A

      1,647,008      $      103,152,111  

 

  

Managed Health Care–1.13%

 

Centene Corp.(b)

      1,173,545        80,270,478  

 

  

Elevance Health, Inc.

      113,685        53,394,434  

 

  
        133,664,912  

 

  

Movies & Entertainment–0.91%

 

Walt Disney Co. (The)(b)

      1,083,434        107,920,861  

 

  

Multi-line Insurance–1.67%

 

American International Group, Inc.

      3,238,055        197,877,541  

 

  

Oil & Gas Exploration & Production–3.55%

 

ConocoPhillips

      2,352,151        243,094,806  

 

  

Devon Energy Corp.

      1,493,218        80,514,314  

 

  

Pioneer Natural Resources Co.

      491,056        98,412,533  

 

  
        422,021,653  

 

  

Oil & Gas Refining & Marketing–0.55%

 

Phillips 66

      636,036        65,231,852  

 

  

Pharmaceuticals–5.30%

 

Bristol-Myers Squibb Co.

      1,967,286        135,664,042  

 

  

GSK PLC

      3,191,565        54,290,565  

 

  

Johnson & Johnson

      859,990        131,802,067  

 

  

Merck & Co., Inc.

      1,761,445        187,135,917  

 

  

Sanofi

      1,291,457        120,928,178  

 

  
        629,820,769  

 

  

Railroads–1.02%

 

CSX Corp.

      3,965,009        120,893,124  

 

  

Real Estate Services–1.64%

 

CBRE Group, Inc., Class A(b)

      2,284,879        194,534,598  

 

  

Regional Banks–2.01%

 

Citizens Financial Group, Inc.

      3,694,377        154,277,184  

 

  

PNC Financial Services Group, Inc. (The)

      531,124        83,875,102  

 

  
        238,152,286  

 

  

Semiconductor Equipment–0.73%

 

Lam Research Corp.

      178,155        86,585,112  

 

  

Semiconductors–2.18%

 

Intel Corp.

      2,021,316        50,391,408  

 

  

Micron Technology, Inc.

      908,484        52,528,545  

 

  

NXP Semiconductors N.V. (China)(c)

      436,159        77,845,658  

 

  

QUALCOMM, Inc.

      636,977        78,685,769  

 

  
        259,451,380  

 

  

Tobacco–0.98%

 

Philip Morris International, Inc. (Switzerland)

      1,191,223        115,905,998  

 

  

Trading Companies & Distributors–1.15%

 

Ferguson PLC

      948,567        136,688,505  

 

  

Wireless Telecommunication Services–1.10%

 

T-Mobile US, Inc.(b)

      922,947        131,224,604  

 

  

Total Common Stocks & Other Equity Interests
(Cost $5,611,433,705)

 

      7,638,077,979  

 

  
    

Principal

Amount

     

Value

  

 

  

U.S. Dollar Denominated Bonds & Notes–18.74%

 

Advertising–0.05%

 

Omnicom Group, Inc./Omnicom Capital, Inc., 3.60%, 04/15/2026

    $     5,660,000      $          5,395,059  

 

  

Aerospace & Defense–0.20%

 

Boeing Co. (The), 5.81%, 05/01/2050

      16,525,000        15,738,405  

 

  

Lockheed Martin Corp., 4.15%, 06/15/2053

      5,231,000        4,504,247  

 

  

Raytheon Technologies Corp., 4.45%, 11/16/2038

      3,239,000        2,936,607  

 

  
        23,179,259  

 

  

Agricultural Products–0.03%

 

Ingredion, Inc., 6.63%, 04/15/2037

      3,940,000        3,989,757  

 

  

Air Freight & Logistics–0.05%

 

FedEx Corp., 4.90%, 01/15/2034

      4,310,000        4,137,339  

 

  

United Parcel Service, Inc., 3.40%, 11/15/2046

      2,608,000        1,999,075  

 

  
        6,136,414  

 

  

Airlines–0.29%

 

American Airlines Pass-Through Trust, Series 2014-1, Class A, 3.70%, 04/01/2028

      2,602,305        2,348,223  

 

  

JetBlue Airways Corp., Conv., 0.50%, 04/01/2026

      16,208,000        12,568,434  

 

  

Spirit Airlines, Inc., Conv., 1.00%, 05/15/2026

      11,355,000        9,328,133  

 

  

United Airlines Pass-Through Trust,

      

Series 2012-1, Class A, 4.15%, 04/11/2024

      3,061,427        3,001,820  

 

  

Series 2014-2, Class A, 3.75%, 09/03/2026

      3,316,282        3,129,883  

 

  

Series 2018-1, Class AA, 3.50%, 03/01/2030

      4,276,974        3,838,174  

 

  
        34,214,667  

 

  

Alternative Carriers–0.22%

 

Liberty Latin America Ltd. (Puerto Rico), Conv., 2.00%, 07/15/2024

      28,911,000        26,610,167  

 

  

Application Software–1.04%

 

Dropbox, Inc., Conv., 0.00%, 03/01/2026(d)

      51,429,000        44,897,517  

 

  

salesforce.com, inc., 2.70%, 07/15/2041

      10,414,000        7,364,855  

 

  

Splunk, Inc., Conv., 1.13%, 06/15/2027

      76,768,000        65,965,851  

 

  

Workday, Inc., 3.50%, 04/01/2027(c)

      5,033,000        4,703,287  

 

  
        122,931,510  

 

  

Asset Management & Custody Banks–0.18%

 

Apollo Management Holdings L.P., 4.00%, 05/30/2024(e)

      4,260,000        4,148,958  

 

  

Brookfield Corp. (Canada), 4.00%, 01/15/2025

      4,515,000        4,411,833  

 

  

KKR Group Finance Co. III LLC, 5.13%, 06/01/2044(e)

      3,217,000        2,829,520  

 

  
 

 

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

 

5   Invesco Equity and Income Fund

    

Principal

Amount

     

Value

  

 

  

Asset Management & Custody Banks–(continued)

 

KKR Group Finance Co. XII LLC, 4.85%, 05/17/2032(e)

    $   11,051,000      $        10,406,158  

 

  
        21,796,469  

 

  

Automobile Manufacturers–0.12%

 

General Motors Co., 6.60%, 04/01/2036

      4,317,000        4,316,656  

 

  

General Motors Financial Co., Inc., 5.25%, 03/01/2026

      5,467,000        5,409,239  

 

  

Honda Motor Co. Ltd. (Japan), 2.97%, 03/10/2032(c)

      5,448,000        4,734,412  

 

  
        14,460,307  

 

  

Biotechnology–1.20%

 

AbbVie, Inc.,

      

4.50%, 05/14/2035

      7,233,000        6,719,468  

 

  

4.05%, 11/21/2039

      13,812,000        11,662,678  

 

  

4.85%, 06/15/2044

      5,815,000        5,292,673  

 

  

Alnylam Pharmaceuticals, Inc., Conv., 1.00%, 09/15/2027(e)

      24,329,000        23,364,585  

 

  

Halozyme Therapeutics, Inc., Conv.,

      

0.25%, 03/01/2027

      49,785,000        44,589,287  

 

  

1.00%, 08/15/2028(e)

      5,938,000        6,190,365  

 

  

Jazz Investments I Ltd., Conv., 2.00%, 06/15/2026

      16,496,000        17,960,020  

 

  

Neurocrine Biosciences, Inc., Conv., 2.25%, 05/15/2024

      19,256,000        26,525,140  

 

  
        142,304,216  

 

  

Brewers–0.24%

 

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. (Belgium),

      

4.70%, 02/01/2036

      10,870,000        10,209,993  

 

  

4.90%, 02/01/2046

      6,301,000        5,783,761  

 

  

Heineken N.V. (Netherlands), 3.50%, 01/29/2028(e)

      9,734,000        9,162,586  

 

  

Molson Coors Beverage Co., 4.20%, 07/15/2046

      4,057,000        3,166,585  

 

  
        28,322,925  

 

  

Broadcasting–0.06%

 

Discovery Communications LLC, 4.90%, 03/11/2026

      3,773,000        3,681,000  

 

  

Paramount Global, 4.00%, 01/15/2026

      3,773,000        3,605,161  

 

  
        7,286,161  

 

  

Cable & Satellite–1.18%

 

Cable One, Inc.,

      

Conv.,
0.00%, 03/15/2026(d)

      51,123,000        40,310,486  

 

  

1.13%, 03/15/2028

      26,544,000        19,390,392  

 

  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.91%, 07/23/2025

      5,660,000        5,540,357  

 

  
    

Principal

Amount

     

Value

  

 

  

Cable & Satellite–(continued)

 

Comcast Corp.,

      

3.15%, 03/01/2026

    $   11,319,000      $        10,707,693  

 

  

4.15%, 10/15/2028

      9,915,000        9,485,704  

 

  

3.90%, 03/01/2038

      8,010,000        6,878,295  

 

  

2.89%, 11/01/2051

      3,128,000        2,027,369  

 

  

2.94%, 11/01/2056

      4,539,000        2,850,544  

 

  

Cox Communications, Inc., 2.95%, 10/01/2050(e)

      2,044,000        1,283,246  

 

  

DISH Network Corp., Conv., 3.38%, 08/15/2026

      21,885,000        14,095,693  

 

  

Liberty Broadband Corp., Conv., 3.13%, 04/06/2026(e)(f)

      28,236,000        27,755,988  

 

  
        140,325,767  

 

  

Commodity Chemicals–0.04%

 

LYB Finance Co. B.V. (Netherlands), 8.10%, 03/15/2027(e)

      4,638,000        5,022,581  

 

  

Computer & Electronics Retail–0.20%

 

Dell International LLC/EMC Corp.,

      

5.45%, 06/15/2023

      1,930,000        1,928,805  

 

  

6.02%, 06/15/2026

      21,095,000        21,361,838  

 

  

8.35%, 07/15/2046

      69,000        78,407  

 

  
        23,369,050  

 

  

Consumer Finance–0.28%

 

American Express Co.,

      

3.38%, 05/03/2024

      24,770,000        24,211,467  

 

  

3.63%, 12/05/2024

      3,423,000        3,323,564  

 

  

Synchrony Financial, 3.95%, 12/01/2027(c)

      5,795,000        5,275,274  

 

  
        32,810,305  

 

  

Data Processing & Outsourced Services–0.42%

 

Block, Inc., Conv., 0.13%, 03/01/2025

      45,518,000        45,233,513  

 

  

Fiserv, Inc., 3.80%, 10/01/2023

      5,200,000        5,148,753  

 

  
        50,382,266  

 

  

Diversified Banks–0.96%

 

Bank of America Corp.,

      

3.25%, 10/21/2027

      5,705,000        5,257,605  

 

  

2.57%, 10/20/2032(g)

      8,683,000        6,917,260  

 

  

BBVA Bancomer S.A. (Mexico), 4.38%, 04/10/2024(e)

      6,875,000        6,770,156  

 

  

Citigroup, Inc.,

      

3.67%, 07/24/2028(g)

      5,405,000        5,009,393  

 

  

6.68%, 09/13/2043

      8,000,000        8,831,288  

 

  

5.30%, 05/06/2044

      2,765,000        2,601,915  

 

  

4.75%, 05/18/2046

      4,145,000        3,560,872  

 

  

HSBC Holdings PLC (United Kingdom), 2.63%, 11/07/2025(c)(g)

      18,945,000        17,949,939  

 

  

JPMorgan Chase & Co.,

      

3.20%, 06/15/2026

      4,365,000        4,112,217  

 

  

3.51%, 01/23/2029(g)

      11,170,000        10,219,510  

 

  

4.26%, 02/22/2048(g)

      5,355,000        4,590,783  

 

  

3.90%, 01/23/2049(g)

      11,170,000        8,897,987  

 

  

Mizuho Financial Group Cayman 3 Ltd. (Japan), 4.60%, 03/27/2024(e)

      545,000        537,126  

 

  
 

 

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

 

6   Invesco Equity and Income Fund

    

Principal

Amount

     

Value

  

 

  

Diversified Banks–(continued)

 

Societe Generale S.A. (France), 5.00%, 01/17/2024(e)

    $     7,365,000      $          7,289,780  

 

  

U.S. Bancorp, Series W, 3.10%, 04/27/2026

      3,245,000        3,047,616  

 

  

Wells Fargo & Co.,

      

3.55%, 09/29/2025(c)

      6,840,000        6,549,987  

 

  

4.10%, 06/03/2026

      4,515,000        4,336,677  

 

  

4.65%, 11/04/2044

      9,115,000        7,806,737  

 

  
        114,286,848  

 

  

Diversified Capital Markets–0.05%

 

Credit Suisse AG (Switzerland), 6.50%, 08/08/2023(c)(e)

      6,536,000        6,406,234  

 

  

Diversified Metals & Mining–0.02%

 

Rio Tinto Finance (USA) Ltd. (Australia), 7.13%, 07/15/2028

      2,175,000        2,387,510  

 

  

Diversified REITs–0.07%

 

CubeSmart L.P., 2.50%, 02/15/2032(c)

      10,561,000        8,260,706  

 

  

Diversified Support Services–0.21%

 

Siemens Financieringsmaatschappij N.V. (Germany), 0.40%, 03/11/2023(e)

      24,780,000        24,747,638  

 

  

Drug Retail–0.07%

 

CVS Pass-Through Trust, 6.04%, 12/10/2028

      4,745,083        4,782,699  

 

  

Walgreens Boots Alliance, Inc., 4.50%, 11/18/2034

      4,519,000        3,960,912  

 

  
        8,743,611  

 

  

Electric Utilities–0.65%

 

Electricite de France S.A. (France), 4.88%, 01/22/2044(e)

      9,110,000        7,783,767  

 

  

Georgia Power Co., Series B, 3.70%, 01/30/2050

      3,665,000        2,720,330  

 

  

NextEra Energy Capital Holdings, Inc.,

      

0.65%, 03/01/2023

      24,780,000        24,780,000  

 

  

3.55%, 05/01/2027

      5,572,000        5,206,102  

 

  

Oglethorpe Power Corp., 4.55%, 06/01/2044

      5,806,000        4,654,380  

 

  

PPL Capital Funding, Inc., Conv., 2.88%, 03/15/2028(e)

      19,104,000        18,816,436  

 

  

PPL Electric Utilities Corp., 6.25%, 05/15/2039

      355,000        383,639  

 

  

Xcel Energy, Inc.,

      

0.50%, 10/15/2023

      5,750,000        5,582,257  

 

  

3.50%, 12/01/2049(c)

      10,280,000        7,487,791  

 

  
        77,414,702  

 

  

Electrical Components & Equipment–0.02%

 

Rockwell Automation, Inc., 1.75%, 08/15/2031

      2,729,000        2,149,704  

 

  

Electronic Equipment & Instruments–0.08%

 

Trimble, Inc., 6.10%, 03/15/2033

      9,180,000        9,161,136  

 

  
    

Principal

Amount

     

Value

  

 

  

General Merchandise Stores–0.15%

 

Dollar General Corp., 4.25%, 09/20/2024

    $   18,724,000      $        18,402,946  

 

  

Health Care Equipment–0.49%

 

Becton, Dickinson and Co., 4.88%, 05/15/2044

      3,739,000        3,169,682  

 

  

Integra LifeSciences Holdings Corp., Conv., 0.50%, 08/15/2025

      42,831,000        41,267,669  

 

  

Medtronic, Inc., 4.38%, 03/15/2035

      2,601,000        2,467,316  

 

  

Tandem Diabetes Care, Inc., Conv., 1.50%, 05/01/2025(e)

      12,393,000        11,311,064  

 

  
        58,215,731  

 

  

Health Care Services–0.14%

 

Cigna Group (The), 4.80%, 08/15/2038

      3,240,000        2,988,279  

 

  

CVS Health Corp., 3.38%, 08/12/2024

      3,740,000        3,633,314  

 

  

Laboratory Corp. of America Holdings, 4.70%, 02/01/2045

      2,694,000        2,304,759  

 

  

NXP B.V./NXP Funding LLC (China), 5.35%, 03/01/2026

      7,660,000        7,589,607  

 

  
        16,515,959  

 

  

Health Care Supplies–0.06%

 

Lantheus Holdings, Inc., Conv., 2.63%, 12/15/2027(e)

      6,306,000        7,594,174  

 

  

Health Care Technology–0.31%

 

NextGen Healthcare, Inc., Conv., 3.75%, 11/15/2027(e)

      8,340,000        8,535,990  

 

  

Teladoc Health, Inc., Conv., 1.25%, 06/01/2027

      36,636,000        28,826,189  

 

  
        37,362,179  

 

  

Home Improvement Retail–0.03%

 

Lowe’s Cos., Inc., 4.25%, 04/01/2052

      4,741,000        3,737,087  

 

  

Homebuilding–0.02%

 

M.D.C. Holdings, Inc., 6.00%, 01/15/2043

      2,117,000        1,795,584  

 

  

Hotels, Resorts & Cruise Lines–0.43%

 

Airbnb, Inc., Conv., 0.00%, 03/15/2026(d)

      52,169,000        45,047,931  

 

  

Booking Holdings, Inc., Conv., 0.75%, 05/01/2025

      4,265,000        6,163,011  

 

  
        51,210,942  

 

  

Industrial Machinery–0.26%

 

John Bean Technologies Corp., Conv., 0.25%, 05/15/2026

      33,206,000        30,499,711  

 

  

Insurance Brokers–0.02%

 

Willis North America, Inc., 3.60%, 05/15/2024

      2,470,000        2,406,750  

 

  

Integrated Oil & Gas–0.36%

 

BP Capital Markets America, Inc., 2.94%, 06/04/2051

      10,062,000        6,690,829  

 

  
 

 

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

 

7   Invesco Equity and Income Fund

    

Principal

Amount

     

Value

  

 

  

Integrated Oil & Gas–(continued)

 

Chevron Corp., 2.95%, 05/16/2026

    $     9,807,000      $          9,234,832  

 

  

Exxon Mobil Corp.,

      

2.71%, 03/06/2025

      5,658,000        5,407,805  

 

  

3.04%, 03/01/2026

      11,316,000        10,725,548  

 

  

Shell International Finance B.V. (Netherlands), 3.25%, 05/11/2025

      11,316,000        10,902,383  

 

  
        42,961,397  

 

  

Integrated Telecommunication Services–0.33%

 

AT&T, Inc.,

      

4.30%, 02/15/2030

      3,526,000        3,310,295  

 

  

3.50%, 09/15/2053

      7,328,000        5,036,808  

 

  

3.55%, 09/15/2055

      4,562,000        3,093,986  

 

  

3.80%, 12/01/2057

      3,619,000        2,544,074  

 

  

Telefonica Emisiones S.A. (Spain),

      

4.67%, 03/06/2038

      3,505,000        2,901,931  

 

  

5.21%, 03/08/2047

      6,725,000        5,660,864  

 

  

Verizon Communications, Inc.,

      

3.38%, 02/15/2025

      13,206,000        12,752,371  

 

  

3.40%, 03/22/2041

      5,788,000        4,366,672  

 

  
        39,667,001  

 

  

Interactive Home Entertainment–0.03%

 

Take-Two Interactive Software, Inc., 3.70%, 04/14/2027

      3,559,000        3,360,152  

 

  

Interactive Media & Services–0.27%

 

Snap, Inc., Conv., 0.75%, 08/01/2026

      33,200,000        29,601,373  

 

  

TripAdvisor, Inc., Conv., 0.25%, 04/01/2026

      3,197,000        2,658,305  

 

  
        32,259,678  

 

  

Internet & Direct Marketing Retail–0.09%

 

Amazon.com, Inc., 2.88%, 05/12/2041

      13,606,000        10,150,987  

 

  

Internet Services & Infrastructure–0.23%

 

Shopify, Inc. (Canada), Conv., 0.13%, 11/01/2025

      31,379,000        26,766,287  

 

  

Investment Banking & Brokerage–1.41%

 

Goldman Sachs Group, Inc. (The),

      

4.25%, 10/21/2025

      5,807,000        5,627,722  

 

  

2.91%, 07/21/2042(g)

      3,205,000        2,212,704  

 

  

GS Finance Corp.,

      

Series 0003, Conv., 0.00%, 07/19/2029(d)(e)

      62,330,000        64,212,366  

 

  

1.00%, 07/30/2029

      62,338,000        58,753,565  

 

  

Match Group Financeco 2, Inc., Conv., 0.88%, 06/15/2026(e)

      16,590,000        14,677,533  

 

  

Match Group Financeco 3, Inc., Conv., 2.00%, 01/15/2030(e)

      16,603,000        14,701,956  

 

  

Morgan Stanley, 4.00%, 07/23/2025

      6,870,000        6,697,869  

 

  
        166,883,715  

 

  
    

Principal

Amount

     

Value

  

 

  

Life & Health Insurance–0.52%

 

American Equity Investment Life Holding Co., 5.00%, 06/15/2027(c)

    $     8,671,000      $          8,517,625  

 

  

Athene Global Funding, 2.75%, 06/25/2024(e)

      2,890,000        2,754,420  

 

  

Brighthouse Financial, Inc., 3.85%, 12/22/2051

      18,342,000        12,116,213  

 

  

Delaware Life Global Funding, Series 21-1, 2.66%, 06/29/2026(e)

      20,728,000        18,472,794  

 

  

Guardian Life Global Funding, 2.90%, 05/06/2024(c)(e)

      7,450,000        7,233,265  

 

  

Jackson National Life Global Funding, 3.25%, 01/30/2024(e)

      4,885,000        4,786,554  

 

  

Nationwide Financial Services, Inc., 5.30%, 11/18/2044(e)

      4,250,000        3,750,823  

 

  

Prudential Financial, Inc., 3.91%, 12/07/2047(c)

      4,898,000        3,874,722  

 

  
        61,506,416  

 

  

Life Sciences Tools & Services–0.17%

 

Thermo Fisher Scientific, Inc., 1.22%, 10/18/2024

      21,232,000        19,905,100  

 

  

Managed Health Care–0.25%

 

Humana, Inc., 0.65%, 08/03/2023

      24,885,000        24,398,639  

 

  

UnitedHealth Group, Inc., 3.50%, 08/15/2039

      5,806,000        4,748,548  

 

  
        29,147,187  

 

  

Movies & Entertainment–0.31%

 

Liberty Media Corp.-Liberty Formula One, Conv., 2.25%, 08/15/2027(e)

      3,159,000        3,219,021  

 

  

TWDC Enterprises 18 Corp., 3.00%, 02/13/2026(c)

      3,773,000        3,564,148  

 

  

Warnermedia Holdings, Inc.,

      

3.79%, 03/15/2025(e)

      16,392,000        15,679,685  

 

  

5.05%, 03/15/2042(e)

      7,965,000        6,458,436  

 

  

5.14%, 03/15/2052(e)

      9,886,000        7,756,180  

 

  
        36,677,470  

 

  

Multi-Utilities–0.08%

 

NiSource, Inc., 4.38%, 05/15/2047

      6,015,000        5,039,185  

 

  

Sempra Energy, 3.80%, 02/01/2038

      5,871,000        4,818,263  

 

  
        9,857,448  

 

  

Oil & Gas Exploration & Production–0.14%

 

Cameron LNG LLC, 3.70%, 01/15/2039(e)

      6,519,000        5,346,465  

 

  

ConocoPhillips Co., 4.15%, 11/15/2034

      2,403,000        2,167,741  

 

  

Northern Oil and Gas, Inc., Conv., 3.63%, 04/15/2029(e)

      8,336,000        9,023,720  

 

  
        16,537,926  

 

  

Oil & Gas Refining & Marketing–0.03%

 

Valero Energy Corp., 4.00%, 06/01/2052(c)

      5,068,000        3,828,416  

 

  
 

 

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

 

8   Invesco Equity and Income Fund

    

Principal

Amount

     

Value

  

 

  

Oil & Gas Storage & Transportation–0.67%

 

Energy Transfer L.P.,

      

Series 5Y, 4.20%, 09/15/2023

    $     1,638,000      $          1,627,017  

 

  

4.90%, 03/15/2035

      3,640,000        3,276,173  

 

  

5.30%, 04/01/2044

      8,165,000        7,004,417  

 

  

5.00%, 05/15/2050

      7,684,000        6,308,710  

 

  

Enterprise Products Operating LLC,

      

6.45%, 09/01/2040

      555,000        589,383  

 

  

4.25%, 02/15/2048

      7,354,000        5,966,747  

 

  

Kinder Morgan, Inc.,

      

4.30%, 06/01/2025

      9,053,000        8,845,904  

 

  

5.30%, 12/01/2034

      4,203,000        3,947,929  

 

  

MPLX L.P.,

      

4.50%, 07/15/2023

      18,525,000        18,460,772  

 

  

4.50%, 04/15/2038

      8,564,000        7,319,817  

 

  

Spectra Energy Partners L.P., 4.50%, 03/15/2045

      5,468,000        4,540,785  

 

  

Texas Eastern Transmission L.P., 7.00%, 07/15/2032

      3,835,000        4,311,287  

 

  

Williams Cos., Inc. (The), 5.40%, 03/02/2026

      7,016,000        7,019,213  

 

  
        79,218,154  

 

  

Other Diversified Financial Services–0.05%

 

AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), 3.85%, 10/29/2041

      4,009,000        2,939,161  

 

  

Blackstone Holdings Finance Co. LLC, 5.00%, 06/15/2044(e)

      3,975,000        3,504,927  

 

  
        6,444,088  

 

  

Packaged Foods & Meats–0.01%

 

Mead Johnson Nutrition Co. (United Kingdom), 4.13%, 11/15/2025

      648,000        629,684  

 

  

Paper Packaging–0.02%

 

International Paper Co., 6.00%, 11/15/2041

      2,855,000        2,896,965  

 

  

Pharmaceuticals–0.43%

 

Bayer US Finance II LLC (Germany), 4.38%, 12/15/2028(e)

      9,800,000        9,219,325  

 

  

Bristol-Myers Squibb Co., 4.13%, 06/15/2039

      6,435,000        5,749,081  

 

  

GSK Consumer Healthcare Capital US LLC, 4.00%, 03/24/2052

      2,954,000        2,317,930  

 

  

Pacira BioSciences, Inc., Conv., 0.75%, 08/01/2025

      31,922,000        29,867,021  

 

  

Zoetis, Inc., 4.70%, 02/01/2043

      4,101,000        3,703,364  

 

  
        50,856,721  

 

  

Property & Casualty Insurance–0.20%

 

Allstate Corp. (The), 3.28%, 12/15/2026

      3,260,000        3,081,072  

 

  

Liberty Mutual Group, Inc., 3.95%, 05/15/2060(e)

      9,030,000        6,276,802  

 

  

Markel Corp.,

      

5.00%, 03/30/2043

      4,185,000        3,665,244  

 

  

5.00%, 05/20/2049

      5,140,000        4,604,955  

 

  
    

Principal

Amount

     

Value

  

 

  

Property & Casualty Insurance–(continued)

 

Travelers Cos., Inc. (The), 4.60%, 08/01/2043

    $     6,455,000      $          5,868,205  

 

  
        23,496,278  

 

  

Railroads–0.39%

 

Burlington Northern Santa Fe LLC, 3.85%, 09/01/2023

      7,363,000        7,314,624  

 

  

Canadian Pacific Railway Co. (Canada), 3.00%, 12/02/2041

      3,965,000        3,006,661  

 

  

CSX Corp., 5.50%, 04/15/2041

      1,660,000        1,663,640  

 

  

Norfolk Southern Corp.,

      

3.85%, 01/15/2024

      15,482,000        15,257,060  

 

  

3.40%, 11/01/2049

      4,879,000        3,466,542  

 

  

Union Pacific Corp.,

      

3.20%, 05/20/2041(c)

      10,131,000        7,819,527  

 

  

4.15%, 01/15/2045

      4,410,000        3,621,438  

 

  

3.84%, 03/20/2060

      5,560,000        4,250,039  

 

  
        46,399,531  

 

  

Regional Banks–0.06%

 

PNC Financial Services Group, Inc. (The), 3.45%, 04/23/2029(c)

      7,450,000        6,848,543  

 

  

Reinsurance–0.07%

 

PartnerRe Finance B LLC, 3.70%, 07/02/2029(c)

      5,795,000        5,222,072  

 

  

Reinsurance Group of America, Inc., 4.70%, 09/15/2023

      3,711,000        3,697,690  

 

  
        8,919,762  

 

  

Restaurants–0.06%

 

Starbucks Corp., 3.55%, 08/15/2029(c)

      7,440,000        6,803,057  

 

  

Retail REITs–0.16%

 

Kimco Realty OP LLC, 3.20%, 04/01/2032(c)

      12,105,000        10,120,132  

 

  

Regency Centers L.P.,

      

2.95%, 09/15/2029

      7,960,000        6,711,431  

 

  

4.65%, 03/15/2049

      2,970,000        2,456,691  

 

  
        19,288,254  

 

  

Semiconductors–0.99%

 

Broadcom, Inc., 3.47%, 04/15/2034(e)

      6,975,000        5,524,848  

 

  

Marvell Technology, Inc., 2.45%, 04/15/2028

      12,029,000        10,296,867  

 

  

Microchip Technology, Inc., Conv., 0.13%, 11/15/2024

      51,688,000        57,502,900  

 

  

Micron Technology, Inc.,

      

4.66%, 02/15/2030

      7,270,000        6,693,966  

 

  

3.37%, 11/01/2041

      1,778,000        1,190,815  

 

  

Texas Instruments, Inc., 2.63%, 05/15/2024

      2,275,000        2,209,464  

 

  

Wolfspeed, Inc.,

      

Conv.,

0.25%, 02/15/2028

      9,866,000        8,706,745  

 

  

1.88%, 12/01/2029(e)

      26,580,000        25,171,260  

 

  
        117,296,865  

 

  
 

 

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

 

9   Invesco Equity and Income Fund

    

Principal

Amount

     

Value

  

 

  

Specialized Finance–0.07%

 

National Rural Utilities Cooperative Finance Corp., 2.75%, 04/15/2032(c)

    $     9,898,000      $          8,162,034  

 

  

Specialized REITs–0.33%

 

American Tower Corp., 1.60%, 04/15/2026(c)

      8,541,000        7,603,588  

 

  

Crown Castle, Inc.,

      

2.50%, 07/15/2031(c)

      14,073,000        11,362,535  

 

  

4.75%, 05/15/2047

      470,000        399,452  

 

  

EPR Properties, 4.75%, 12/15/2026

      17,525,000        16,024,105  

 

  

LifeStorage L.P., 3.50%, 07/01/2026

      4,667,000        4,384,592  

 

  
        39,774,272  

 

  

Specialty Chemicals–0.01%

 

Sherwin-Williams Co. (The), 4.50%, 06/01/2047

      1,665,000        1,397,087  

 

  

Systems Software–0.22%

 

Microsoft Corp., 3.50%, 02/12/2035

      4,259,000        3,857,528  

 

  

Oracle Corp., 3.60%, 04/01/2040

      10,910,000        8,065,431  

 

  

VMware, Inc., 1.00%, 08/15/2024

      14,992,000        14,013,418  

 

  
        25,936,377  

 

  

Technology Distributors–0.06%

 

Avnet, Inc., 4.63%, 04/15/2026

      7,645,000        7,340,732  

 

  

Technology Hardware, Storage & Peripherals–0.25%

 

Apple, Inc., 3.35%, 02/09/2027

      3,495,000        3,332,504  

 

  

Western Digital Corp., Conv., 1.50%, 02/01/2024

      27,606,000        26,543,169  

 

  
        29,875,673  

 

  

Tobacco–0.22%

 

Altria Group, Inc., 5.80%, 02/14/2039

      12,541,000        11,568,259  

 

  

Philip Morris International, Inc.,

      

3.60%, 11/15/2023

      3,940,000        3,901,226  

 

  

4.88%, 11/15/2043

      11,740,000        10,240,865  

 

  
        25,710,350  

 

  

Trading Companies & Distributors–0.09%

 

Air Lease Corp.,

      

3.00%, 09/15/2023

      627,000        619,003  

 

  

4.25%, 09/15/2024

      4,355,000        4,268,786  

 

  

Aircastle Ltd., 4.40%, 09/25/2023

      5,510,000        5,466,390  

 

  
        10,354,179  

 

  

Trucking–0.06%

 

Aviation Capital Group LLC, 4.88%, 10/01/2025(e)

      7,745,000        7,383,678  

 

  

Wireless Telecommunication Services–0.26%

 

America Movil S.A.B. de C.V. (Mexico), 4.38%, 07/16/2042(c)

      6,610,000        5,734,459  

 

  
    

Principal

Amount

     

Value

  

 

  

Wireless Telecommunication Services–(continued)

 

Rogers Communications, Inc. (Canada),

      

4.50%, 03/15/2043(c)

    $     6,080,000      $          4,963,093  

 

  

4.30%, 02/15/2048

      8,020,000        6,168,778  

 

  

T-Mobile USA, Inc.,

      

2.70%, 03/15/2032

      10,676,000        8,659,591  

 

  

3.40%, 10/15/2052

      7,422,000        5,055,649  

 

  
        30,581,570  

 

  

Total U.S. Dollar Denominated Bonds & Notes
(Cost $2,439,586,749)

 

      2,224,959,066  

 

  

U.S. Treasury Securities–11.84%

 

U.S. Treasury Bills–0.01%

 

3.78% - 4.15%, 03/09/2023(h)(i)

      70,000        69,943  

 

  

4.48% - 4.55%, 05/11/2023(h)(i)

      752,000        745,100  

 

  
        815,043  

 

  

U.S. Treasury Bonds–0.81%

 

4.50%, 02/15/2036

      5,525,000        5,903,333  

 

  

4.00%, 11/15/2052

      88,882,000        90,492,987  

 

  
        96,396,320  

 

  

U.S. Treasury Notes–11.02%

 

4.63%, 02/28/2025

      312,913,000        311,922,924  

 

  

4.00%, 02/15/2026

      227,929,000        224,786,073  

 

  

4.00%, 02/29/2028

      387,054,900        384,212,466  

 

  

4.00%, 02/28/2030

      277,263,000        276,244,923  

 

  

3.50%, 02/15/2033

      58,315,300        56,397,274  

 

  

3.88%, 02/15/2043

      56,177,900        54,510,119  

 

  
        1,308,073,779  

 

  

Total U.S. Treasury Securities
(Cost $1,410,383,938)

 

      1,405,285,142  

 

  
     Shares         

Preferred Stocks–0.58%

 

Asset Management & Custody Banks–0.21%

 

AMG Capital Trust II, 5.15%, Conv. Pfd.

      483,000        25,212,600  

 

  

Diversified Banks–0.03%

 

Wells Fargo & Co., 5.85%, Series Q, Pfd.(g)

      142,800        3,534,300  

 

  

Oil & Gas Storage & Transportation–0.34%

 

El Paso Energy Capital Trust I, 4.75%, Conv. Pfd.

      875,900        40,554,170  

 

  

Total Preferred Stocks (Cost $63,824,606)

 

      69,301,070  

 

  
    

Principal

Amount

         

U.S. Government Sponsored Agency Mortgage-Backed Securities–0.13%

 

Federal Home Loan Mortgage Corp. (FHLMC)–0.07%

 

6.75%, 03/15/2031

    $ 7,000,004        8,225,234  

 

  

Federal National Mortgage Association (FNMA)–0.06%

 

6.63%, 11/15/2030

      6,315,000        7,323,569  

 

  

7.00%, 07/01/2032

      4,436        4,395  

 

  
        7,327,964  

 

  
 

 

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

 

10   Invesco Equity and Income Fund

    

Principal

Amount

     

Value

  

 

  

Government National Mortgage Association (GNMA)–0.00%

 

8.00%, 06/15/2026 to 01/20/2031

    $            4,686      $                 4,735  

 

  

7.50%, 12/20/2030

      474        491  

 

  
        5,226  

 

  

Total U.S. Government Sponsored Agency Mortgage-Backed Securities
(Cost $17,462,884)

 

      15,558,424  

 

  

Municipal Obligations–0.04%

 

Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4), Series 2010 A, RB, 6.66%, 04/01/2057 (Cost $4,779,000)

      4,779,000        5,299,218  

 

  
     Shares         

Money Market Funds–4.11%

 

Invesco Government & Agency Portfolio, Institutional Class,
4.51%(j)(k)

      172,526,412        172,526,412  

 

  

Invesco Liquid Assets Portfolio, Institutional Class,
4.64%(j)(k)

      118,158,604        118,182,235  

 

  

Invesco Treasury Portfolio, Institutional Class,
4.50%(j)(k)

      197,173,042        197,173,042  

 

  

Total Money Market Funds
(Cost $487,783,640)

 

      487,881,689  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)–99.77%
(Cost $10,035,254,522)

 

      11,846,362,588  

 

  

Investment Abbreviations:

 

Conv.   – Convertible
Pfd.   – Preferred
RB   – Revenue Bonds
REIT   – Real Estate Investment Trust
    

    

Shares

      Value  

 

  

Investments Purchased with Cash Collateral from
Securities on Loan

 

Money Market Funds–0.62%

 

Invesco Private Government Fund, 4.58%(j)(k)(l)

      20,615,645      $        20,615,645  

 

  

Invesco Private Prime Fund, 4.83%(j)(k)(l)

      53,001,057        53,011,656  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $73,633,525)

 

      73,627,301  

 

  

TOTAL INVESTMENTS IN SECURITIES–100.39%
(Cost $10,108,888,047)

 

      11,919,989,889  

 

  

OTHER ASSETS LESS LIABILITIES–(0.39)%

 

      (45,790,815 ) 

 

  

NET ASSETS–100.00%

 

    $ 11,874,199,074  

 

  
 

 

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

 

11   Invesco Equity and Income Fund

Notes to Schedule of Investments:

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at February 28, 2023.

(d) 

Zero coupon bond issued at a discount.

(e) 

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 February 28, 2023 was $425,110,410, which represented 3.58% of the Fund’s Net Assets.

(f) 

Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

(g) 

Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate.

(h) 

All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1M.

(i) 

Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

(j) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

    

Value

August 31, 2022

  

Purchases

at Cost

  

Proceeds

from Sales

  

Change in

Unrealized

Appreciation

(Depreciation)

  

Realized

Gain

  

Value

February 28, 2023

   Dividend Income
Investments in Affiliated Money Market Funds:                                                                      

Invesco Government & Agency Portfolio, Institutional Class

     $ 193,530,051     $ 299,533,699     $ (320,537,338 )     $ -     $ -     $ 172,526,412     $ 4,115,639

Invesco Liquid Assets Portfolio, Institutional Class

       133,184,545       213,952,642       (228,955,240 )       (3,465 )       3,753       118,182,235       2,946,098

Invesco Treasury Portfolio, Institutional Class

       221,177,201       342,324,227       (366,328,386 )       -       -       197,173,042       4,699,195
Investments Purchased with Cash Collateral from Securities on Loan:                                                                      

Invesco Private Government Fund

       48,966,219       385,978,356       (414,328,930 )       -       -       20,615,645       883,161 *

Invesco Private Prime Fund

       125,913,139       723,100,579       (796,026,814 )       (16,508 )       41,260       53,011,656       2,455,003 *

Total

     $ 722,771,155     $ 1,964,889,503     $ (2,126,176,708)       $ (19,973 )     $ 45,013     $ 561,508,990     $ 15,099,096

 

  *

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

 

(k) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(l) 

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 1J.

 

Open Futures Contracts  
Short Futures Contracts   

Number of

Contracts

     

Expiration

Month

     

Notional

Value

     Value      Unrealized
Appreciation		  

Interest Rate Risk

                                            

U.S. Treasury 5 Year Notes

      109        June-2023      $ (11,668,961 )    $ 19,586        $19,586  

U.S. Treasury 10 Year Notes

      236        June-2023        (26,350,875 )      25,812        25,812  

Total Futures Contracts

                              $ 45,398        $45,398  

 

Open Forward Foreign Currency Contracts  
          Contract to         

Settlement

Date

    Counterparty    Deliver      Receive      Unrealized
Appreciation		  

Currency Risk

                           

03/24/2023

    Bank of New York Mellon (The)    EUR   84,897,154      USD 91,154,499        $1,240,359  

03/24/2023

    State Street Bank & Trust Co.    EUR 2,808,919      USD 2,991,448        16,536  

03/24/2023

    State Street Bank & Trust Co.    GBP 99,015,856      USD   120,561,417        1,413,070  

Total Forward Foreign Currency Contracts

                      $ 2,669,965  

 

Abbreviations:
EUR   – Euro
GBP   – British Pound Sterling
USD   – U.S. Dollar

 

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

 

12   Invesco Equity and Income Fund

Portfolio Composition

By security type, based on Net Assets

as of February 28, 2023

 

Common Stocks & Other Equity Interests

      64.33 % 

U.S. Dollar Denominated Bonds & Notes

      18.74  

U.S. Treasury Securities

      11.84  

Security Types Each Less Than 1% of Portfolio

      0.75  

Money Market Funds Plus Other Assets Less Liabilities

      4.34  

 

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

 

13   Invesco Equity and Income Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

  

Investments in unaffiliated securities, at value (Cost $9,547,470,882)*

   $ 11,358,480,899  

 

  

Investments in affiliated money market funds, at value (Cost $561,417,165)

     561,508,990  

 

  

Other investments:

  

Unrealized appreciation on forward foreign currency contracts outstanding

     2,669,965  

 

  

Cash

     25,448,170  

 

  

Receivable for:

  

Investments sold

     28,376,282  

 

  

Fund shares sold

     6,351,081  

 

  

Dividends

     18,271,212  

 

  

Interest

     18,003,555  

 

  

Investment for trustee deferred compensation and retirement plans

     947,027  

 

  

Other assets

     206,812  

 

  

Total assets

     12,020,263,993  

 

  

Liabilities:

  

Other investments:

  

Variation margin payable – futures contracts

     10,213  

 

  

Payable for:

  

Investments purchased

     55,806,557  

 

  

Fund shares reacquired

     8,569,212  

 

  

Amount due custodian - foreign currency, at value (Cost $92,905)

     92,779  

 

  

Collateral upon return of securities loaned

     73,633,525  

 

  

Accrued fees to affiliates

     6,048,466  

 

  

Accrued trustees’ and officers’ fees and benefits

     6,543  

 

  

Accrued other operating expenses

     825,653  

 

  

Trustee deferred compensation and retirement plans

     1,071,971  

 

  

Total liabilities

     146,064,919  

 

  

Net assets applicable to shares outstanding

   $ 11,874,199,074  

 

  

Net assets consist of:

  

Shares of beneficial interest

   $ 10,031,256,268  

Distributable earnings

     1,842,942,806  

 

  
  $ 11,874,199,074  

 

  

Net Assets:

   

Class A

    $ 9,684,439,278  

 

  

Class C

    $ 258,680,292  

 

  

Class R

    $ 103,881,227  

 

  

Class Y

    $ 749,905,795  

 

  

Class R5

    $ 206,342,499  

 

  

Class R6

    $ 870,949,983  

 

  

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

 

Class A

      969,822,921  

 

  

Class C

      26,550,536  

 

  

Class R

      10,326,230  

 

  

Class Y

      75,094,582  

 

  

Class R5

      20,658,499  

 

  

Class R6

      87,230,018  

 

  

Class A:

   

Net asset value per share

    $ 9.99  

 

  

Maximum offering price per share (Net asset value of $9.99 ÷ 94.50%)

    $ 10.57  

 

  

Class C:

   

Net asset value and offering price per share

    $ 9.74  

 

  

Class R:

   

Net asset value and offering price per share

    $ 10.06  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 9.99  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 9.99  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 9.98  

 

  

 

*

At February 28, 2023, securities with an aggregate value of $71,156,742 were on loan to brokers.

 

 

 

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

 

14   Invesco Equity and Income Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Interest

    $ 59,038,490  

 

  

Dividends (net of foreign withholding taxes of $336,874)

      86,748,764  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $142,021)

      11,902,953  

 

  

Less: IRS closing agreement fees for foreign withholding tax claims

      759,000  

 

  

Total investment income

      158,449,207  

 

  

Expenses:

   

Advisory fees

      20,726,799  

 

  

Administrative services fees

      807,311  

 

  

Custodian fees

      37,736  

 

  

Distribution fees:

   

Class A

      11,974,235  

 

  

Class C

      1,305,834  

 

  

Class R

      247,879  

 

  

Transfer agent fees – A, C, R and Y

      8,111,447  

 

  

Transfer agent fees – R5

      106,546  

 

  

Transfer agent fees – R6

      125,766  

 

  

Trustees’ and officers’ fees and benefits

      38,300  

 

  

Registration and filing fees

      176,372  

 

  

Reports to shareholders

      322,822  

 

  

Professional services fees

      70,181  

 

  

Other

      50,376  

 

  

Total expenses

      44,101,604  

 

  

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

      (384,033 ) 

 

  

Net expenses

      43,717,571  

 

  

Net investment income

      114,731,636  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      151,536,283  

 

  

Affiliated investment securities

      45,013  

 

  

Foreign currencies

      (118,730 ) 

 

  

Forward foreign currency contracts

      (5,512,623 ) 

 

  

Futures contracts

      2,265,134  

 

  
     148,215,077  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      83,332,143  

 

  

Affiliated investment securities

      (19,973 ) 

 

  

Foreign currencies

      44,327  

 

  

Forward foreign currency contracts

      (1,746,057 ) 

 

  

Futures contracts

      (250,608 ) 

 

  
     81,359,832  

 

  

Net realized and unrealized gain

      229,574,909  

 

  

Net increase in net assets resulting from operations

    $ 344,306,545  

 

  

 

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

 

15   Invesco Equity and Income Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

    

February 28,

2023

    

August 31,

2022

  

 

  

Operations:

     

Net investment income

    $ 114,731,636     $ 163,277,517  

 

  

Net realized gain

      148,215,077       725,789,493  

 

  

Change in net unrealized appreciation (depreciation)

      81,359,832       (1,684,944,417 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      344,306,545       (795,877,407 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (545,487,139 )      (1,331,277,071 ) 

 

  

Class C

      (14,527,594 )      (41,341,537 ) 

 

  

Class R

      (5,513,895 )      (12,970,924 ) 

 

  

Class Y

      (42,575,843 )      (97,780,944 ) 

 

  

Class R5

      (12,636,704 )      (31,158,054 ) 

 

  

Class R6

      (49,817,993 )      (116,375,441 ) 

 

  

Total distributions from distributable earnings

      (670,559,168 )      (1,630,903,971 ) 

 

  

Share transactions–net:

     

Class A

      296,020,024       798,338,222  

 

  

Class C

      (9,133,763 )      (24,089,966 ) 

 

  

Class R

      9,716,548       2,482,302  

 

  

Class Y

      67,186,696       67,528,652  

 

  

Class R5

      (5,489,843 )      20,447,063  

 

  

Class R6

      49,729,897       100,549,556  

 

  

Net increase in net assets resulting from share transactions

      408,029,559       965,255,829  

 

  

Net increase (decrease) in net assets

      81,776,936       (1,461,525,549 ) 

 

  

Net assets:

     

Beginning of period

      11,792,422,138       13,253,947,687  

 

  

End of period

    $ 11,874,199,074     $ 11,792,422,138  

 

  

 

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

 

16   Invesco Equity and Income Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                                                        

Six months ended 02/28/23

     $ 10.27     $ 0.10     $ 0.21     $ 0.31     $ (0.12 )     $ (0.47 )     $ (0.59 )     $ 9.99       3.01 %     $ 9,684,439       0.77 %(d)       0.78 %(d)       1.93 %(d)       74 %

Year ended 08/31/22

       12.52       0.14       (0.83 )       (0.69 )       (0.16 )       (1.40 )       (1.56 )       10.27       (6.36 )       9,654,157       0.78       0.78       1.25       152

Year ended 08/31/21

       9.83       0.13       2.87       3.00       (0.17 )       (0.14 )       (0.31 )       12.52       31.02       10,841,867       0.78       0.78       1.10       127

Year ended 08/31/20

       10.12       0.17       0.18       0.35       (0.19 )       (0.45 )       (0.64 )       9.83       3.53       9,034,006       0.78       0.79       1.75       133

Year ended 08/31/19

       11.10       0.19       (0.36 )       (0.17 )       (0.21 )       (0.60 )       (0.81 )       10.12       (0.96 )       9,845,902       0.78       0.79       1.87       138

Year ended 08/31/18

       10.96       0.17       0.70       0.87       (0.22 )       (0.51 )       (0.73 )       11.10       8.21       10,151,828       0.77       0.78       1.55       129

Class C

                                                        

Six months ended 02/28/23

       10.03       0.06       0.20       0.26       (0.08 )       (0.47 )       (0.55 )       9.74       2.55 (e)        258,680       1.50 (d)(e)        1.51 (d)(e)        1.20 (d)(e)        74

Year ended 08/31/22

       12.25       0.06       (0.81 )       (0.75 )       (0.07 )       (1.40 )       (1.47 )       10.03       (7.01 )       275,540       1.53       1.53       0.50       152

Year ended 08/31/21

       9.63       0.04       2.81       2.85       (0.09 )       (0.14 )       (0.23 )       12.25       29.94       362,829       1.53       1.53       0.35       127

Year ended 08/31/20

       9.91       0.10       0.19       0.29       (0.12 )       (0.45 )       (0.57 )       9.63       2.87       402,761       1.53       1.54       1.00       133

Year ended 08/31/19

       10.89       0.12       (0.36 )       (0.24 )       (0.14 )       (0.60 )       (0.74 )       9.91       (1.75 )(e)       576,794       1.49 (e)        1.50 (e)        1.16 (e)        138

Year ended 08/31/18

       10.76       0.09       0.69       0.78       (0.14 )       (0.51 )       (0.65 )       10.89       7.43 (e)        1,437,488       1.51 (e)        1.52 (e)        0.81 (e)        129

Class R

                                                        

Six months ended 02/28/23

       10.35       0.08       0.20       0.28       (0.10 )       (0.47 )       (0.57 )       10.06       2.76       103,881       1.02 (d)        1.03 (d)        1.68 (d)        74

Year ended 08/31/22

       12.59       0.11       (0.82 )       (0.71 )       (0.13 )       (1.40 )       (1.53 )       10.35       (6.48 )       96,887       1.03       1.03       1.00       152

Year ended 08/31/21

       9.89       0.10       2.88       2.98       (0.14 )       (0.14 )       (0.28 )       12.59       30.61       114,169       1.03       1.03       0.85       127

Year ended 08/31/20

       10.17       0.15       0.19       0.34       (0.17 )       (0.45 )       (0.62 )       9.89       3.35       118,249       1.03       1.04       1.50       133

Year ended 08/31/19

       11.16       0.17       (0.37 )       (0.20 )       (0.19 )       (0.60 )       (0.79 )       10.17       (1.30 )       148,055       1.03       1.04       1.62       138

Year ended 08/31/18

       11.01       0.14       0.72       0.86       (0.20 )       (0.51 )       (0.71 )       11.16       8.00       203,003       1.02       1.03       1.30       129

Class Y

                                                        

Six months ended 02/28/23

       10.27       0.11       0.21       0.32       (0.13 )       (0.47 )       (0.60 )       9.99       3.15       749,906       0.52 (d)        0.53 (d)        2.18 (d)        74

Year ended 08/31/22

       12.52       0.17       (0.83 )       (0.66 )       (0.19 )       (1.40 )       (1.59 )       10.27       (6.12 )       702,847       0.53       0.53       1.50       152

Year ended 08/31/21

       9.84       0.15       2.87       3.02       (0.20 )       (0.14 )       (0.34 )       12.52       31.22       778,769       0.53       0.53       1.35       127

Year ended 08/31/20

       10.12       0.19       0.20       0.39       (0.22 )       (0.45 )       (0.67 )       9.84       3.91       749,507       0.53       0.54       2.00       133

Year ended 08/31/19

       11.11       0.22       (0.37 )       (0.15 )       (0.24 )       (0.60 )       (0.84 )       10.12       (0.81 )       987,287       0.53       0.54       2.12       138

Year ended 08/31/18

       10.96       0.20       0.71       0.91       (0.25 )       (0.51 )       (0.76 )       11.11       8.58       1,192,995       0.52       0.53       1.80       129

Class R5

                                                        

Six months ended 02/28/23

       10.28       0.11       0.20       0.31       (0.13 )       (0.47 )       (0.60 )       9.99       3.07       206,342       0.47 (d)        0.48 (d)        2.23 (d)        74

Year ended 08/31/22

       12.52       0.18       (0.82 )       (0.64 )       (0.20 )       (1.40 )       (1.60 )       10.28       (5.98 )       218,033       0.48       0.48       1.55       152

Year ended 08/31/21

       9.84       0.16       2.86       3.02       (0.20 )       (0.14 )       (0.34 )       12.52       31.28       242,934       0.46       0.46       1.42       127

Year ended 08/31/20

       10.12       0.20       0.19       0.39       (0.22 )       (0.45 )       (0.67 )       9.84       3.98       235,461       0.47       0.48       2.06       133

Year ended 08/31/19

       11.11       0.22       (0.36 )       (0.14 )       (0.25 )       (0.60 )       (0.85 )       10.12       (0.75 )       397,607       0.47       0.48       2.18       138

Year ended 08/31/18

       10.96       0.20       0.72       0.92       (0.26 )       (0.51 )       (0.77 )       11.11       8.64       494,838       0.47       0.48       1.85       129

Class R6

                                                        

Six months ended 02/28/23

       10.27       0.12       0.20       0.32       (0.14 )       (0.47 )       (0.61 )       9.98       3.11       870,950       0.40 (d)        0.41 (d)        2.30 (d)        74

Year ended 08/31/22

       12.52       0.18       (0.83 )       (0.65 )       (0.20 )       (1.40 )       (1.60 )       10.27       (6.01 )       844,958       0.41       0.41       1.62       152

Year ended 08/31/21

       9.83       0.17       2.87       3.04       (0.21 )       (0.14 )       (0.35 )       12.52       31.50       913,379       0.39       0.39       1.49       127

Year ended 08/31/20

       10.12       0.21       0.18       0.39       (0.23 )       (0.45 )       (0.68 )       9.83       3.97       1,001,337       0.38       0.39       2.15       133

Year ended 08/31/19

       11.10       0.23       (0.35 )       (0.12 )       (0.26 )       (0.60 )       (0.86 )       10.12       (0.56 )       1,178,312       0.38       0.39       2.27       138

Year ended 08/31/18

       10.96       0.21       0.71       0.92       (0.27 )       (0.51 )       (0.78 )       11.10       8.64       1,193,501       0.38       0.39       1.94       129

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

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

(d) 

Annualized.

(e) 

The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.98%, 0.97% and 0.99% for the six months ended February 28, 2023 and for the years ended August 31, 2019 and 2018, respectively.

 

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

 

17   Invesco Equity and Income Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

The Fund’s investment objective is current income and, secondarily, capital appreciation.

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

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

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

A.

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

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

 

18   Invesco Equity and Income Fund

settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. 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.

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

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

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

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 on a timely basis 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 as a reduction of the cost of the related investment. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

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

E.

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

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

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

F.

Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Tax reclaims on the Statement of Assets and Liabilities.

As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received. These tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the six months ended February 28, 2023, the Fund did not enter into any closing agreements.

G.

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

H.

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

I.

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

J.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the

 

19   Invesco Equity and Income Fund

investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $2,531 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

K.

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

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

L.

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

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

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

M.

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 Counterparties 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.

N.

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.

O.

Other Risks – Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.

P.

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

 

20   Invesco Equity and Income Fund

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate

First $ 150 million

    0.500%

Next $100 million

    0.450%

Next $100 million

    0.400%

Over $350 million

    0.350%

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.35%.

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

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $347,010.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class C shares and Class R shares to reimburse IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will reimburse annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% of Class C average daily net assets and up to 0.50% of Class R average daily net assets. The fees are accrued daily and paid monthly. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of each Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statements of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $974,656 in front-end sales commissions from the sale of Class A shares and $55,365 and $3,238 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended February 28, 2023, the Fund incurred $40,178 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s 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.

 

21   Invesco Equity and Income Fund

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total

Investments in Securities

                                

Common Stocks & Other Equity Interests

      $7,361,230,482        $276,847,497        $–      $7,638,077,979

U.S. Dollar Denominated Bonds & Notes

      –        2,224,959,066        –      2,224,959,066

U.S. Treasury Securities

      –        1,405,285,142        –      1,405,285,142

Preferred Stocks

      69,301,070        –        –      69,301,070

U.S. Government Sponsored Agency Mortgage-Backed Securities

      –        15,558,424        –      15,558,424

Municipal Obligations

      –        5,299,218        –      5,299,218

Money Market Funds

      487,881,689        73,627,301        –      561,508,990

Total Investments in Securities

      7,918,413,241        4,001,576,648        –      11,919,989,889

Other Investments - Assets*

                                

Futures Contracts

      45,398        –        –      45,398

Forward Foreign Currency Contracts

      –        2,669,965        –      2,669,965

Total Other Investments

      45,398        2,669,965        –      2,715,363

Total Investments

      $7,918,458,639        $4,004,246,613        $–      $11,922,705,252

 

*

Unrealized appreciation.

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  
     Currency      Interest        
Derivative Assets    Risk      Rate
Risk		     Total  

 

  

Unrealized appreciation on futures contracts – Exchange-Traded(a)

    $ –      $ 45,398     $ 45,398  

 

  

Unrealized appreciation on forward foreign currency contracts outstanding

      2,669,965        –       2,669,965  

 

  

Total Derivative Assets

      2,669,965        45,398       2,715,363  

 

  

Derivatives not subject to master netting agreements

      –        (45,398 )      (45,398 ) 

 

  

Total Derivative Assets subject to master netting agreements

    $ 2,669,965      $ –     $ 2,669,965  

 

  

 

(a) 

The daily variation margin receivable (payable) at period end is recorded in the Statement of Assets and Liabilities.

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2023.

 

     Financial
Derivative
Assets		             Collateral
(Received)/Pledged		     
Counterparty    Forward Foreign
Currency Contracts		      Net Value of
Derivatives		      Non-Cash    Cash    Net
Amount

Bank of New York Mellon (The)

      $1,240,359        $1,240,359      $–    $–    $1,240,359

State Street Bank & Trust Co.

      1,429,606        1,429,606        –      –    1,429,606

Total

      $2,669,965        $2,669,965      $–    $–    $2,669,965

 

22   Invesco Equity and Income Fund

Effect of Derivative Investments for the six months ended February 28, 2023

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

     Location of Gain (Loss) on
Statement of Operations		  
     Currency     Interest        
     Risk     Rate Risk     Total  

 

  

Realized Gain (Loss):

       

Forward foreign currency contracts

    $ (5,512,623 )    $ -     $ (5,512,623 ) 

 

  

Futures contracts

      -       2,265,134       2,265,134  

 

  

Change in Net Unrealized Appreciation (Depreciation):

       

Forward foreign currency contracts

      (1,746,057 )      -       (1,746,057 ) 

 

  

Futures contracts

      -       (250,608 )      (250,608 ) 

 

  

Total

    $ (7,258,680 )    $ 2,014,526     $ (5,244,154 ) 

 

  

The table below summarizes the average notional value of derivatives held during the period.

 

     

Forward

Foreign Currency

Contracts

     

Futures

Contracts

  

Average notional value

    $ 217,446,438      $ 39,683,651  

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $37,023.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

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

NOTE 7–Cash Balances

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

NOTE 8–Tax Information

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

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

The Fund did not have a capital loss carryforward as of August 31, 2022.

NOTE 9–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $774,938,858 and $1,156,501,788, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of investments

    $ 2,212,626,902  

 

  

Aggregate unrealized (depreciation) of investments

      (518,355,612 ) 

 

  

Net unrealized appreciation of investments

    $ 1,694,271,290  

 

  

Cost of investments for tax purposes is $10,228,433,962.

 

23   Invesco Equity and Income Fund

NOTE 10–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      38,517,838     $ 390,459,617       73,356,241     $ 821,391,591  

 

  

Class C

      1,910,311       18,902,319       3,295,934       36,084,783  

 

  

Class R

      1,512,896       15,437,370       1,695,763       19,133,379  

 

  

Class Y

      11,909,845       120,351,110       12,557,499       140,194,636  

 

  

Class R5

      943,532       9,581,607       1,999,576       22,716,626  

 

  

Class R6

      7,735,887       78,394,329       13,887,919       154,334,421  

 

  

Issued as reinvestment of dividends:

         

Class A

      50,874,279       508,244,604       111,734,771       1,239,743,507  

 

  

Class C

      1,393,707       13,608,965       3,557,970       38,628,074  

 

  

Class R

      546,611       5,504,827       1,158,750       12,961,497  

 

  

Class Y

      3,468,576       34,616,606       7,468,159       82,862,940  

 

  

Class R5

      1,266,278       12,636,704       2,808,247       31,157,973  

 

  

Class R6

      4,864,828       48,543,351       10,263,875       113,860,992  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      1,901,870       19,230,494       4,151,000       46,487,423  

 

  

Class C

      (1,946,835 )      (19,230,494 )      (4,246,518 )      (46,487,423 ) 

 

  

Reacquired:

         

Class A

      (61,211,436 )      (621,914,691 )      (115,674,488 )      (1,309,284,299 ) 

 

  

Class C

      (2,272,848 )      (22,414,553 )      (4,757,106 )      (52,315,400 ) 

 

  

Class R

      (1,098,197 )      (11,225,649 )      (2,555,545 )      (29,612,574 ) 

 

  

Class Y

      (8,690,728 )      (87,781,020 )      (13,823,013 )      (155,528,924 ) 

 

  

Class R5

      (2,766,995 )      (27,708,154 )      (2,991,721 )      (33,427,536 ) 

 

  

Class R6

      (7,621,274 )      (77,207,783 )      (14,867,094 )      (167,645,857 ) 

 

  

Net increase in share activity

      41,238,145     $ 408,029,559       89,020,219     $ 965,255,829  

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 49% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

24   Invesco Equity and Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

     

Beginning      

Account Value      

(09/01/22)      

    ACTUAL   

HYPOTHETICAL

(5% annual return before

expenses)

      
  

Ending    

Account Value    

(02/28/23)1    

    Expenses    
Paid During    
Period2    		   

Ending    

Account Value    

(02/28/23)    

   

Expenses    

Paid During    

Period2    

   

Annualized    

Expense    

Ratio    

Class A

    $1,000.00      $1,030.10      $3.88      $1,020.98      $3.86      0.77%

Class C

    1,000.00    1,025.50    7.53    1,017.36    7.50    1.50   

Class R

    1,000.00    1,027.60    5.13    1,019.74    5.11    1.02   

Class Y

    1,000.00    1,031.50    2.62    1,022.22    2.61    0.52   

Class R5

    1,000.00    1,030.70    2.37    1,022.46    2.36    0.47   

Class R6

    1,000.00    1,031.10    2.01    1,022.81    2.01    0.40   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

25   Invesco Equity and Income Fund

 

 

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

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

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

LOGO

 

SEC file number(s): 811-09913 and 333-36074

   

Invesco Distributors, Inc.

   

VK-EQI-SAR-1

LOGO

 

   
Semiannual Report to Shareholders   February 28, 2023

Invesco Floating Rate ESG Fund

Nasdaq:

A: AFRAX ∎ C: AFRCX ∎ R: AFRRX ∎ Y: AFRYX ∎ R5: AFRIX ∎ R6: AFRFX

 

   
2   Fund Performance
4   Schedule of Investments
24   Financial Statements
27   Financial Highlights
28   Notes to Financial Statements
36   Fund Expenses

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     2.67 % 

Class C Shares

     2.40  

Class R Shares

     2.55  

Class Y Shares

     2.79  

Class R5 Shares

     2.81  

Class R6 Shares

     2.84  

Bloomberg U.S. Aggregate Bond Index▼ (Broad Market Index)

     -2.13  

Credit Suisse Leveraged Loan Index∎ (Style-Specific Index)

     3.33  

Lipper Loan Participation Funds Classification Average◆ (Peer Group)

     3.01  

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

 

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

 

  The Credit Suisse Leveraged Loan Index represents tradable, senior-secured, US-dollar-denominated, noninvestment-grade loans.

 

  The Lipper Loan Participation Funds Classification Average represents an average of all of the funds in the Lipper Loan Participation Funds Classification Average.

 

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

 

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

 

 

For more information about your Fund

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

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

            

 

 

2   Invesco Floating Rate ESG Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (5/1/97)

     3.80 % 

10 Years

     2.90  

  5 Years

     2.24  

  1 Year

     -2.01  

Class C Shares

        

Inception (3/31/00)

     3.51 % 

10 Years

     2.76  

  5 Years

     2.25  

  1 Year

     -0.91  

Class R Shares

        

Inception (4/13/06)

     3.18 % 

10 Years

     2.90  

  5 Years

     2.49  

  1 Year

     0.18  

Class Y Shares

        

Inception (10/3/08)

     4.73 % 

10 Years

     3.43  

  5 Years

     3.00  

  1 Year

     0.80  

Class R5 Shares

        

Inception (4/13/06)

     3.73 % 

10 Years

     3.43  

  5 Years

     3.03  

  1 Year

     0.83  

Class R6 Shares

        

Inception (9/24/12)

     3.69 % 

10 Years

     3.48  

  5 Years

     3.06  

  1 Year

     0.88  

For periods prior to August 21, 2020, performance is that of the fund using its previous investment strategy, which did not apply ESG criteria.

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

    Class A share performance reflects the maximum 2.50% sales charge and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

    

 

 

3   Invesco Floating Rate ESG Fund

Schedule of Investments

February 28, 2023

(Unaudited)

 

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Variable Rate Senior Loan Interests-88.31%(b)(c)

             

Aerospace & Defense-2.51%

             

Brown Group Holding LLC (Signature Aviation US Holdings, Inc.) Incremental Term Loan B-2 (1 mo. Term SOFR + 3.75%)

      8.37%        07/01/2029         $          7,052      $       7,061,892

Term Loan (1 mo. USD LIBOR + 2.50%)

      7.13%        06/07/2028           6,886      6,841,382

Castlelake Aviation Ltd.

             

Term Loan (3 mo. USD LIBOR + 2.75%)

      7.52%        10/22/2026           14,534      14,428,212

Term Loan(d)

      -        10/22/2027           2,423      2,399,503

CEP IV Investment 16 S.a.r.l. (ADB Safegate) (Luxembourg), Term Loan B

      6.72%        10/03/2026     EUR     5,530      4,942,951

Gogo Intermediate Holdings LLC, Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.70%        04/30/2028           3,593      3,580,782

Greenrock Finance, Inc.

             

Delayed Draw Term Loan (3 mo. Term SOFR + 4.35%)

      8.93%        06/21/2029           593      589,809

Term Loan B (3 mo. Term SOFR + 4.25%)

      8.93%        06/21/2029           1,286      1,277,919

IAP Worldwide Services, Inc., Second Lien Term Loan (3 mo. USD LIBOR + 6.50%) (Acquired 08/18/2014-05/10/2019; Cost $941,678)(e)(f)

      11.23%        07/18/2023           945      945,397

KKR Apple Bidco LLC

             

First Lien Term Loan (1 mo. Term SOFR + 2.75%)

      7.38%        09/22/2028           10,165      10,118,503

First Lien Term Loan (1 mo. Term SOFR + 4.00%)

      8.62%        09/22/2028           1,718      1,721,547

Second Lien Term Loan (1 mo. USD LIBOR + 5.75%)

      10.38%        09/21/2029           3,860      3,788,936

Peraton Corp., Second Lien Term Loan (1 mo. USD LIBOR + 7.75%)

      12.65%        02/01/2029           8,120      7,976,194

Propulsion (BC) Finco S.a.r.l. (Spain), Term Loan B (3 mo. Term SOFR + 4.00%)

      8.58%        09/13/2029           5,868      5,827,847

Rand Parent LLC (Atlas Air), Term Loan B(d)

      -        02/09/2030           5,070      4,937,252
                                   76,438,126

Air Transport-2.77%

             

AAdvantage Loyalty IP Ltd. (American Airlines, Inc.), Term Loan (3 mo. USD LIBOR + 4.75%)

      9.56%        04/20/2028           22,616      23,220,045

Air Canada (Canada), Term Loan (3 mo. USD LIBOR + 3.50%)

      8.37%        08/11/2028           4,067      4,068,736

American Airlines, Inc., Term Loan(d)

      -        02/09/2028           5,441      5,306,762

Avolon TLB Borrower 1 (US) LLC, Term Loan B-4 (1 mo. USD LIBOR + 1.50%)

      6.10%        02/12/2027           10,251      10,173,642

Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Term Loan (3 mo. USD LIBOR + 5.25%)

      10.00%        06/21/2027           8,348      8,706,829

PrimeFlight Aviation Services, Inc., Term Loan (3 mo. Term SOFR +
5.50%)(e)

      10.40%        05/09/2024           2,134      2,133,874

SkyMiles IP Ltd. (Delta Air Lines, Inc.), Term Loan (3 mo. USD LIBOR + 3.75%)

      8.56%        10/20/2027           1,208      1,252,461

United Airlines, Inc., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.57%        04/21/2028           23,286      23,306,547

WestJet Airlines Ltd. (Canada), Term Loan (1 mo. USD LIBOR + 3.00%)

      7.59%        12/11/2026           6,542      6,248,890
                                   84,417,786

Automotive-2.13%

             

Adient PLC, Term Loan B-1 (1 mo. USD LIBOR + 3.25%)

      7.88%        04/10/2028           17,357      17,373,018

American Axle & Manufacturing, Inc., Term Loan (1 mo. Term SOFR + 3.50%)

      8.16%        12/08/2029           2,610      2,613,498

Autokiniton US Holdings, Inc., Term Loan B (1 mo. USD LIBOR + 4.50%)

      9.10%        04/06/2028           5,013      4,982,820

BCA Marketplace (United Kingdom)

             

First Lien Term Loan (6 mo. EURIBOR + 4.00%)

      6.44%        07/28/2028     EUR     2,000      1,742,560

Second Lien Term Loan B (6 mo. SONIA + 7.50%)

      11.43%        07/27/2029     GBP     4,072      2,587,742

Term Loan B (6 mo. SONIA + 4.75%)

      8.18%        07/28/2028     GBP     759      736,482

Belron Group S.A., Incremental Term Loan (3 mo. USD LIBOR + 2.25%)

      7.06%        10/30/2026           1,198      1,199,588

DexKo Global, Inc., First Lien Term Loan (1 mo. Term SOFR + 6.50%)(e)

      11.08%        10/04/2028           1,381      1,318,675

First Brands Group Intermediate LLC

             

Term Loan B (6 mo. Term SOFR + 5.00%)

      10.25%        03/30/2027           1,288      1,256,555

Term Loan B(d)

      -        03/30/2027           8,097      7,759,641

Garrett Borrowing LLC, Term Loan (3 mo. USD LIBOR + 3.25%)

      8.08%        04/30/2028           2,333      2,311,242

Highline Aftermarket Acquisition LLC, Term Loan (1 mo. USD LIBOR + 4.50%)

      9.13%        11/09/2027           11,164      10,675,745

Mavis Tire Express Services TopCo L.P., First Lien Term Loan (1 mo. Term SOFR + 4.00%)

      8.73%        05/04/2028           4,753      4,610,894

PowerStop LLC, Term Loan B (3 mo. USD LIBOR + 4.75%)

      9.70%        01/24/2029           8,058      5,781,700
                                   64,950,160

 

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

 

4   Invesco Floating Rate ESG Fund

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Beverage & Tobacco-0.84%

             

AI Aqua Merger Sub, Inc.

             

Delayed Draw Term Loan(d)

      -        07/31/2028         $          1,337      $       1,289,011

Incremental Term Loan B (3 mo. Term SOFR + 3.75%)

      8.36%        07/31/2028           7,666      7,393,227

Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.32%        07/31/2028           7,597      7,338,374

Arctic Glacier U.S.A., Inc., Term Loan (3 mo. USD LIBOR + 3.50%)

      8.23%        03/20/2024           6,510      6,058,644

Naked Juice LLC (Tropicana), Second Lien Term Loan (3 mo. Term SOFR + 6.00%)

      10.68%        01/20/2030           4,430      3,453,232
                                   25,532,488

Brokers, Dealers & Investment Houses-0.18%

             

AqGen Island Intermediate Holdings, Inc., Second Lien Term Loan B (3 mo. USD LIBOR + 6.50%)

      11.31%        08/05/2029           99      89,194

Zebra Buyer LLC

             

Term Loan (3 mo. USD LIBOR + 3.00%)

      7.75%        11/01/2028           703      700,496

Term Loan (3 mo. Term SOFR + 4.00%)

      8.33%        11/01/2028           4,647      4,658,588
                                   5,448,278

Building & Development-3.61%

             

Brookfield Retail Holdings VII Sub 3 LLC, Term Loan B (3 mo. USD LIBOR + 2.50%)

      7.22%        08/27/2025           2,070      2,060,965

Chariot Buyer LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        11/03/2028           3,590      3,464,948

Core & Main L.P., Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.20%        06/10/2028           10,105      10,088,077

Empire Today LLC, Term Loan B (1 mo. USD LIBOR + 5.00%)

      9.60%        04/01/2028           13,771      11,161,047

Fusilli HoldCo (Jersey), Term Loan B (3 mo. EURIBOR + 6.00%) (Acquired 02/01/2022-02/24/2022; Cost $2,518,679)(f)

      8.54%        10/12/2023     EUR     2,297      2,114,793

Icebox Holdco III, Inc.

             

First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.23%        12/22/2028           7,075      6,721,435

Second Lien Term Loan (3 mo. USD LIBOR + 6.75%)(e)

      11.48%        12/21/2029           1,544      1,375,990

LBM Holdings LLC, First Lien Term Loan(d)

      -        12/17/2027           315      288,865

LHS Borrow LLC (Leaf Home Solutions), Term Loan (1 mo. Term SOFR + 4.75%)

      9.47%        02/16/2029           18,179      15,020,621

Mayfair Mall LLC, Term Loan (1 mo. USD LIBOR + 3.25%)(e)

      7.82%        04/20/2023           2,262      2,070,103

Oldcastle BuildingEnvelope, Inc., Term Loan B (3 mo. Term SOFR + 4.50%)

      9.18%        04/29/2029           8,323      8,078,849

Quikrete Holdings, Inc.

             

First Lien Term Loan (3 mo. USD LIBOR + 2.63%)

      7.26%        02/01/2027           2,415      2,397,690

Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.63%        06/11/2028           13,702      13,670,554

Re/Max LLC, Term Loan (1 mo. USD LIBOR + 2.50%)

      7.19%        07/21/2028           4,601      4,405,360

SRS Distribution, Inc.

             

Term Loan (3 mo. Term SOFR + 3.50%)

      7.97%        06/02/2028           5,139      4,973,718

Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        06/02/2028           4,835      4,693,423

Standard Industries, Inc., Term Loan B (6 mo. USD LIBOR + 2.25%)

      6.43%        09/22/2028           2,184      2,181,374

TAMKO Building Products LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.99%        05/29/2026           8,617      8,525,226

Werner FinCo L.P., Term Loan (3 mo. USD LIBOR + 4.00%)

      8.73%        07/24/2024           6,593      6,188,748

Xella (Luxembourg), Term Loan B-4 (3 mo. EURIBOR + 3.68%)

      6.13%        04/12/2028     EUR     723      658,559
                                   110,140,345

Business Equipment & Services-8.81%

             

Adevinta ASA (Norway), Term Loan B-2 (3 mo. USD LIBOR + 2.75%)

      7.48%        06/26/2028           7,028      7,031,536

Aegion Corp., Term Loan (1 mo. USD LIBOR + 4.75%)

      9.38%        05/17/2028           6,447      6,298,333

Allied Universal Holdco LLC (USAGM Holdco LLC/UNSEAM), Term Loan B (3 mo. EURIBOR + 3.75%)

      6.18%        05/12/2028     EUR     661      663,884

Asurion LLC (fka Asurion Corp.), Term Loan B-7 (1 mo. USD LIBOR + 3.00%)

      7.63%        11/03/2024           1,620      1,616,162

Camelot Finance L.P.

             

Incremental Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        10/30/2026           10,049      10,030,279

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        10/30/2026           8,478      8,456,101

Checkout Holding Corp., Term Loan

      10.00%        06/30/2023           42      42,101

Cimpress USA, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        05/17/2028           12,312      11,194,880

Constant Contact

             

Second Lien Term Loan (3 mo. USD LIBOR + 7.50%)

      12.31%        02/15/2029           1,419      1,188,421

Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.81%        02/10/2028           9,484      8,993,867

Corp. Service Co., Term Loan B (1 mo. Term SOFR + 3.25%)

      7.97%        08/08/2029           6,343      6,352,535

CRCI Longhorn Holdings, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.25%)

      11.88%        08/08/2026           234      219,463

Creation Technologies, Inc., Term Loan B (3 mo. USD LIBOR + 5.50%)(e)

      10.28%        10/05/2028           8,526      7,353,907

 

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

 

5   Invesco Floating Rate ESG Fund

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Business Equipment & Services-(continued)

             

Dakota Holding Corp., Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        04/07/2028         $          1,198      $       1,125,192

Dun & Bradstreet Corp. (The)

             

Incremental Term Loan B-2 (1 mo. Term SOFR + 3.25%)

      7.85%        01/18/2029           4,191      4,177,724

Revolver Loan (1 mo. USD LIBOR + 3.00%)(e)

      4.06%        09/11/2025           1,349      1,334,790

Revolver Loan(g)

      0.00%        09/11/2025           7,823      7,741,784

Term Loan (1 mo. USD LIBOR + 3.25%)

      7.87%        02/06/2026           11,546      11,533,163

Garda World Security Corp. (Canada)

             

Incremental Term Loan (1 mo. Term SOFR + 4.25%)

      8.81%        02/01/2029           6,564      6,534,799

Term Loan B-2 (1 mo. USD LIBOR + 4.25%)

      8.91%        10/30/2026           4,564      4,565,889

GI Revelation Acquisition LLC, First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63%        05/12/2028           9,379      8,989,588

ION Trading Technologies S.a.r.l. (Luxembourg)

             

Term Loan B (3 mo. USD LIBOR + 4.75%)

      9.48%        03/31/2028           1,734      1,632,193

Term Loan B (3 mo. EURIBOR + 4.25%)

      6.45%        04/01/2028     EUR     1,568      1,579,427

Karman Buyer Corp., First Lien Term Loan B-1 (1 mo. USD LIBOR + 4.50%)

      9.29%        10/28/2027           13,878      11,478,696

Konecta (Kronosnet CX Bidco 2022, S.L.) (Spain), First Lien Term Loan (3 mo. EURIBOR + 5.75%)

      8.17%        09/30/2029     EUR     1,355      1,334,322

Monitronics International, Inc.

             

Term Loan (3 mo. USD LIBOR + 7.50%) (Acquired 08/30/2019-01/28/2021; Cost $12,678,800)(f)

      12.33%        03/29/2024           13,184      8,635,254

Term Loan (1 mo. USD LIBOR + 6.00%) (Acquired 06/27/2019-04/27/2022; Cost $11,718,753)(e)(f)

      10.83%        07/03/2024           11,702      11,116,621

OCM System One Buyer CTB LLC, Term Loan (1 mo. USD LIBOR + 4.00%)

      8.73%        03/02/2028           5,371      5,344,263

Orchid Merger Sub II LLC, Term Loan (6 mo. Term SOFR + 4.75%)(e)

      9.48%        07/27/2027           9,494      8,212,137

Outfront Media Capital LLC, Term Loan (1 mo. USD LIBOR + 1.75%)

      6.38%        11/18/2026           4,003      3,965,785

Prime Security Services Borrower LLC, First Lien Term Loan B-1 (3 mo. USD LIBOR + 2.75%)

      7.52%        09/23/2026           7,688      7,683,547

Prometric Holdings, Inc., Term Loan (3 mo. USD LIBOR + 3.00%)

      7.64%        01/29/2025           124      116,794

QA Group (IndigoCyan) (Jersey), Term Loan B (3 mo. GBP LIBOR + 4.75%)

      8.80%        06/23/2024     GBP     13,179      15,287,508

Red Ventures LLC (New Imagitas, Inc.), Term Loan B-2 (1 mo. Term SOFR + 2.50%)

      9.25%        11/08/2024           189      189,097

Sitel Worldwide Corp., Term Loan (1 mo. USD LIBOR + 3.75%)

      8.39%        08/28/2028           11,844      11,822,159

Skillsoft Corp., Term Loan (1 mo. Term SOFR + 4.75%)

      9.93%        07/14/2028           4,391      3,807,247

Spin Holdco, Inc., Term Loan (3 mo. USD LIBOR + 4.00%)

      8.77%        03/04/2028           22,161      18,773,517

Tempo Acquisition LLC, Term Loan B (1 mo. Term SOFR + 3.00%)

      7.62%        08/31/2028           2,257      2,257,658

Thevelia (US) LLC, First Lien Term Loan B (3 mo. Term SOFR + 4.00%)

      8.73%        06/17/2029           5,747      5,624,948

Trans Union LLC, Term Loan (1 mo. USD LIBOR + 2.25%)

      6.88%        11/30/2028           5,928      5,902,822

UnitedLex Corp., Term Loan (1 mo. USD LIBOR + 5.75%)(e)

      10.35%        03/20/2027           1,465      1,348,188

Verra Mobility Corp., Term Loan B (6 mo. USD LIBOR + 3.25%)

      7.88%        03/19/2028           12,324      12,322,699

Virtusa Corp.

             

Incremental Term Loan B (1 mo. Term SOFR + 3.75%)

      8.47%        02/08/2029           7,445      7,418,587

Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        02/11/2028           6,437      6,417,265

WebHelp (France), Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.05%        08/04/2028           420      407,949

WEX, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%)

      6.88%        03/19/2028           601      599,979
                                   268,723,060

Cable & Satellite Television-3.41%

             

Altice Financing S.A. (Luxembourg), Term Loan (3 mo. USD LIBOR +
5.00%)(e)

      9.57%        10/31/2027           2,716      2,712,633

Atlantic Broadband Finance LLC

             

Incremental Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.13%        09/01/2028           9,160      9,036,993

Term Loan B (1 mo. USD LIBOR + 2.00%)

      6.63%        01/03/2025           5,535      5,529,931

CSC Holdings LLC

             

Term Loan (1 mo. Term SOFR + 2.50%)

      7.09%        04/15/2027           4,852      4,383,835

Term Loan B (1 mo. Term SOFR + 4.50%)

      9.06%        01/15/2028           2,785      2,614,292

Numericable-SFR S.A. (France)

             

Incremental Term Loan B-13 (3 mo. USD LIBOR + 4.00%)

      8.86%        08/14/2026           15,459      15,051,073

Term Loan B-11 (3 mo. USD LIBOR + 2.75%)

      7.58%        07/31/2025           969      959,962

Term Loan B-12 (3 mo. USD LIBOR + 3.69%)

      8.52%        01/31/2026           11,389      11,069,931

ORBCOMM, Inc., Term Loan B (1 mo. USD LIBOR + 4.25%)

      8.88%        09/01/2028           6,530      5,330,198

Telenet-LG, Term Loan AR (6 mo. USD LIBOR + 2.00%)

      6.59%        04/30/2028           467      457,373

 

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

 

6   Invesco Floating Rate ESG Fund

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Cable & Satellite Television–(continued)

             

UPC - LG

             

Term Loan AT (1 mo. USD LIBOR + 2.25%)

      6.84%        04/30/2028         $             116      $          114,637

Term Loan AX (1 mo. USD LIBOR + 2.93%)

      7.51%        01/31/2029           16,353      16,158,701

Virgin Media 02 - LG (United Kingdom)

             

Term Loan N (1 mo. USD LIBOR + 2.50%)

      7.09%        01/31/2028           7,875      7,738,451

Term Loan Q (1 mo. USD LIBOR + 3.25%)

      7.84%        01/31/2029           20,909      20,841,712

Vodafone Ziggo - LG, Term Loan H (6 mo. EURIBOR + 3.00%)

      6.10%        01/31/2029     EUR     2,000      2,033,523
                                   104,033,245

Chemicals & Plastics–6.05%

             

AkzoNoble Chemicals, Term Loan (3 mo. USD LIBOR + 2.75%)

      7.53%        10/01/2025           13,887      13,829,559

Aruba Investments, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.75%)

      12.38%        11/24/2028           1,711      1,557,021

Arxada (Switzerland)

             

Term Loan B (3 mo. EURIBOR + 4.00%)

      6.20%        07/03/2028     EUR     1,000      997,675

Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%        07/03/2028           1,576      1,496,809

Ascend Performance Materials Operations LLC, Term Loan (6 mo. Term SOFR + 4.75%)

      8.83%        08/27/2026           2,786      2,785,709

Axalta Coating Systems U.S. Holdings, Inc., Term Loan B-4(d)

      -        12/20/2029           8,473      8,521,571

BASF Construction Chemicals (Germany), Term Loan B-3 (3 mo. USD LIBOR + 3.50%)

      8.23%        09/29/2027           22,212      22,205,481

BES (Discovery Purchaser Corp.)

             

First Lien Term Loan (1 mo. Term SOFR + 7.00%)

      11.59%        08/03/2030           2,903      2,666,275

Second Lien Term Loan (3 mo. Term SOFR + 4.38%)

      8.96%        10/03/2029           822      788,802

Charter NEX US, Inc., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.48%        12/01/2027           9,201      9,066,450

Colouroz Investment LLC (Germany)

             

PIK First Lien Term Loan B-2, 0.75% PIK Rate, 8.57% Cash Rate

      0.75%        09/21/2023           810      580,909

PIK First Lien Term Loan C, 0.75% PIK Rate, 8.57% Cash Rate

      0.75%        09/21/2023           372      266,879

PIK First Lien Term Loan, 0.75% PIK Rate, 5.75% Cash Rate

      0.75%        09/21/2023     EUR     6      4,178

PIK Second Lien Term Loan B-2, 5.75% PIK Rate, 9.07% Cash Rate

      5.75%        09/21/2024           59      30,834

Cyanco Intermediate 2 Corp., First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.13%        03/16/2025           2,411      2,372,654

Eastman Tire Additives (River Buyer, Inc.), First Lien Term Loan (1 mo. USD LIBOR + 5.25%)

      9.98%        11/01/2028           11,473      10,478,993

Fusion (Fusion UK Holding Ltd. & US HoldCo VAD, Inc.), Term Loan B (3 mo. Term SOFR + 3.75%)

      8.30%        05/28/2029           3,235      3,072,720

Gemini HDPE LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.83%        12/31/2027           671      670,660

H.B. Fuller Co., Term Loan B(d)

      -        02/08/2030           2,264      2,282,832

ICP Group Holdings LLC, First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        12/29/2027           6,316      5,344,790

INEOS Quattro Holdings Ltd. (United Kingdom), Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        01/29/2026           4,441      4,425,684

Ineos US Finance LLC

             

Term Loan

      8.47%        11/08/2027           4,205      4,199,364

Term Loan (1 mo. Term SOFR + 2.50%)

      7.41%        11/08/2028           3,663      3,609,486

Term Loan(d)

      -        02/09/2030           4,839      4,809,864

Lummus Technology (Illuminate Buyer LLC), Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        06/30/2027           5,783      5,670,889

Messer Industries USA, Inc., Term Loan B-1

      7.23%        03/02/2026           2,508      2,504,513

Potters Industries LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%        12/14/2027           2,877      2,877,703

PQ Corp., Term Loan (3 mo. USD LIBOR + 2.50%)

      7.33%        06/09/2028           753      751,401

Proampac PG Borrower LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.50%        11/03/2025           3,284      3,240,108

Quantix, Term Loan (3 mo. Term SOFR + 6.25%)(e)

      10.99%        05/03/2025           14,814      14,517,886

Tronox Finance LLC, Incremental Term Loan B (3 mo. Term SOFR + 3.25%)

      7.83%        03/03/2029           7,834      7,814,784

Vertellus

             

Revolver Loan (1 mo. Term SOFR + 5.75%)(e)

      10.42%        12/22/2025           534      501,337

Revolver Loan(g)

      0.00%        12/22/2025           2,285      2,144,608

Term Loan B (6 mo. Term SOFR + 5.75%)(e)

      10.87%        12/22/2027           22,997      22,008,427

W.R. Grace & Co., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.50%        09/22/2028           16,382      16,332,534
                                   184,429,389

Clothing & Textiles–1.06%

             

ABG Intermediate Holdings 2 LLC

                                   

First Lien Term Loan B-1 (1 mo. Term SOFR + 3.50%)

      8.22%        12/21/2028           17,335      17,048,251

Second Lien Term Loan (1 mo. Term SOFR + 6.00%)

      10.72%        12/20/2029           4,051      3,762,052

BK LC Lux SPV S.a.r.l. (Birkenstock), Term Loan B (1 mo. USD LIBOR + 3.25%)

      8.06%        04/28/2028           11,473      11,408,367
                                   32,218,670

 

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

 

7   Invesco Floating Rate ESG Fund

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Conglomerates–0.43%

             

APi Group DE, Inc., Incremental Term Loan (1 mo. USD LIBOR + 2.75%)

      7.38%        01/03/2029         $          2,694      $       2,696,726

CeramTec (CTEC III GmbH) (Germany), Term Loan B (3 mo. EURIBOR + 3.75%)

      6.45%        03/16/2029     EUR     148      151,619

Safe Fleet Holdings LLC

             

Incremental First Lien Term Loan (1 mo. Term SOFR + 5.00%)(e)

      9.66%        02/23/2029           1,450      1,442,135

Second Lien Term Loan (3 mo. USD LIBOR + 6.75%)

      11.39%        02/02/2026           580      527,871

Term Loan B (1 mo. Term SOFR + 3.75%)

      8.41%        02/17/2029           8,341      8,181,321
                                   12,999,672

Containers & Glass Products–2.56%

             

Berlin Packaging LLC, Term Loan B-5 (1 mo. USD LIBOR + 3.75%)

      8.48%        03/11/2028           7,733      7,592,532

Brook & Whittle Holding Corp., First Lien Term Loan (3 mo. Term SOFR + 4.00%)

      9.04%        12/14/2028           7,941      7,280,539

Duran Group (Germany), Term Loan B-2 (3 mo. USD LIBOR + 3.75%) (Acquired 03/24/2017-05/22/2017; Cost $9,100,612)(e)(f)

      7.88%        03/29/2024           9,114      8,806,520

Keter Group B.V. (Netherlands)

             

Term Loan B-1 (3 mo. EURIBOR + 4.25%)

(Acquired 08/07/2020-02/21/2023; Cost $8,539,586)(f)

      6.74%        10/31/2023     EUR     8,511      7,096,860

Term Loan B-3 (3 mo. EURIBOR + 4.25%)

(Acquired 02/25/2020-02/21/2023; Cost $3,586,635)(f)

      6.95%        10/31/2023     EUR     3,816      3,182,192

LABL, Inc. (Multi-Color), Term Loan (1 mo. USD LIBOR + 5.00%)

      9.63%        10/29/2028           11,855      11,599,239

Libbey Glass, Inc., First Lien Term Loan (3 mo. Term SOFR + 3.75%)
(Acquired 11/22/2022-11/25/2022; Cost $12,215,989)(f)

      8.71%        11/22/2027           13,087      12,596,590

Logoplaste (Mar Bidco S.a.r.l.) (Portugal), Term Loan B (1 mo. USD LIBOR + 4.30%)

      9.03%        07/07/2028           6,482      6,028,231

Mold-Rite Plastics LLC (Valcour Packaging LLC)

             

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)(e)

      7.98%        10/04/2028           5,530      4,852,174

Second Lien Term Loan (6 mo. USD LIBOR + 7.00%)(e)

      11.23%        10/04/2029           1,022      715,454

Refresco Group N.V. (Netherlands), Term Loan B (3 mo. Term SOFR + 4.25%)

      9.01%        07/12/2029           8,450      8,421,623
                                   78,171,954

Cosmetics & Toiletries–0.54%

             

Coty, Inc., Term Loan B (3 mo. USD LIBOR + 2.25%)

      6.84%        04/05/2025           11,998      11,985,316

Parfums Holding Co., Inc., First Lien Term Loan (3 mo. USD LIBOR + 4.00%)

      1.00%        06/30/2024           0      34

Rodenstock (Germany), Term Loan B (3 mo. EURIBOR + 5.00%)

      7.49%        06/29/2028     EUR     3,399      3,081,331

Wella (Rainbow FinCo S.a.r.l.), Term Loan B (6 mo. EURIBOR + 3.50%)

      6.70%        02/24/2029     EUR     1,293      1,315,412
                                   16,382,093

Drugs–0.23%

             

Grifols Worldwide Operations USA, Inc., Term Loan B (1 mo. USD LIBOR + 2.00%)

      6.63%        11/15/2027           193      188,514

Perrigo Investments LLC, Term Loan B (1 mo. Term SOFR + 2.50%)

      7.22%        04/06/2029           6,858      6,878,775
                                   7,067,289

Ecological Services & Equipment–0.61%

             

Anticimex (Sweden)

             

First Lien Term Loan (1 mo. Term SOFR + 4.75%)

      9.74%        11/16/2028           1,827      1,809,075

Term Loan B-1 (3 mo. USD LIBOR + 3.50%)

      8.45%        11/16/2028           1,675      1,660,089

EnergySolutions LLC, Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        05/11/2025           6,001      5,809,327

GFL Environmental, Inc. (Canada), Term Loan B (1 mo. Term SOFR + 3.00%)

      7.72%        05/28/2027           534      535,724

Groundworks LLC

             

Delayed Draw Term Loan (3 mo. USD LIBOR + 4.75%)(e)

      1.00%        01/17/2026           274      273,497

Delayed Draw Term Loan (3 mo. USD LIBOR + 4.75%)(e)

      9.48%        01/17/2026           2,937      2,937,185

Delayed Draw Term Loan(g)

      0.00%        01/17/2026           2,176      2,175,438

Term Loan (3 mo. USD LIBOR + 4.75%)(e)

      9.48%        01/17/2026           485      485,064

Term Loan(e)(g)

      0.00%        03/14/2029           339      329,082

Term Loan(e)(g)

      0.00%        03/14/2030           1,060      1,028,382

OGF (France), Term Loan B-2 (6 mo. EURIBOR + 4.75%)

      7.11%        12/31/2025     EUR     848      834,478

Patriot Container Corp., First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.47%        03/20/2025           725      683,523
                                   18,560,864

Electronics & Electrical–12.13%

             

Altar BidCo, Inc. (Brooks Automation, Inc.), Second Lien Term Loan (6 mo. Term SOFR + 5.60%)

      10.49%        02/01/2030           990      875,691

 

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

 

8   Invesco Floating Rate ESG Fund

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Electronics & Electrical–(continued)

             

AppLovin Corp., Term Loan (3 mo. Term SOFR + 3.00%)

      7.69%        10/25/2028         $          7,323      $       7,267,872

Boxer Parent Co., Inc., Term Loan B (1 mo. EURIBOR + 4.00%)

      6.43%        10/02/2025     EUR     90      93,717

Brave Parent Holdings, Inc., First Lien Term Loan (3 mo. USD LIBOR + 4.00%)

      8.63%        04/18/2025           12,950      12,803,925

CommerceHub, Inc., Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.78%        01/01/2028           9,034      8,648,073

CommScope, Inc., Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        04/06/2026           13,021      12,669,357

ConnectWise LLC, Term Loan (1 mo. USD LIBOR + 3.50%)

      8.34%        10/01/2028           4      4,163

Cornerstone OnDemand, First Lien Term Loan (1 mo. USD LIBOR + 3.75%)
(Acquired 09/30/2021-04/11/2022; Cost $12,479,939)(f)

      8.38%        10/16/2028           12,544      11,631,517

Delta Topco, Inc. (Infoblox, Inc.), First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.15%        12/01/2027           3,157      2,950,593

Diebold Nixdorf, Inc.

             

Term Loan (1 mo. Term SOFR + 5.25%)

      10.24%        07/15/2025           13,867      9,481,259

Term Loan (1 mo. Term SOFR + 6.40%)

      11.63%        07/15/2025           5,445      5,688,044

Digi International, Inc., Term Loan (6 mo. USD LIBOR + 5.00%)(e)

      9.63%        11/01/2028           4,008      4,013,023

E2Open LLC, Term Loan (3 mo. USD LIBOR + 3.50%)

      8.08%        02/04/2028           8,847      8,816,860

Emerald Technologies AcquisitionCo, Inc., Term Loan B (1 mo. Term SOFR + 6.25%)

      10.97%        12/29/2027           1,228      1,151,569

Energizer Holdings, Inc., Term Loan (1 mo. USD LIBOR + 2.25%)

      6.93%        12/22/2027           2,409      2,406,164

Entegris, Inc., Term Loan B (1 mo. Term SOFR + 3.00%)

      7.62%        07/06/2029           9,038      9,070,320

ETA Australia Holdings III Pty. Ltd. (Australia), First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.62%        05/06/2026           774      746,910

EverCommerce, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        07/01/2028           3,769      3,759,385

Forcepoint, Term Loan (3 mo. USD LIBOR + 4.25%)

      9.08%        01/07/2028           3,019      2,853,872

Go Daddy Operating Co. LLC, Term Loan (1 mo. Term SOFR + 3.25%)

      7.87%        11/09/2029           540      541,551

GoTo Group, Inc. (LogMeIn), First Lien Term Loan (1 mo. USD LIBOR + 4.75%)

      9.38%        08/31/2027           27,960      15,512,144

Imperva, Inc.

             

Second Lien Term Loan (3 mo. USD LIBOR + 7.75%)

      12.65%        01/11/2027           5,341      4,002,564

Term Loan (3 mo. USD LIBOR + 4.00%)

      8.86%        01/10/2026           16,450      14,056,624

Inetum (Granite Fin Bidco SAS) (France)

             

Term Loan(d)(e)

      -        09/23/2028     EUR     1,069      1,079,342

Term Loan B (3 mo. EURIBOR + 5.00%)

      7.06%        10/17/2028     EUR     2,267      2,289,552

Infinite Electronics, Second Lien Term Loan (3 mo. USD LIBOR + 7.00%)

      11.73%        03/02/2029           749      676,425

Informatica Corp., Term Loan (1 mo. USD LIBOR + 2.75%)

      7.44%        10/15/2028           7,597      7,593,458

Instructure Holdings, Inc., Term Loan (3 mo. USD LIBOR + 2.75%)

      7.85%        11/01/2028           1,384      1,379,577

Learning Pool (Brook Bidco Ltd.) (United Kingdom)
(3 mo. SONIA + 6.87%)(e)

      10.30%        08/17/2028     GBP     391      460,268

Term Loan (3 mo. SONIA + 6.75%)(e)

      10.72%        08/17/2028     GBP     1,603      1,886,001

Term Loan 1 (3 mo. USD LIBOR + 6.75%)(e)

      11.58%        08/17/2028           4,887      4,691,437

Term Loan 2 (3 mo. SONIA + 6.75%)(e)

      10.30%        08/17/2028           1,912      1,835,070

Marcel Bidco LLC

             

Term Loan (1 mo. USD LIBOR + 4.00%)(e)

      8.42%        12/31/2027           481      479,637

Term Loan B-1 (3 mo. USD LIBOR + 3.25%)(e)

      7.67%        03/11/2025           2,449      2,442,987

Mavenir Systems, Inc., Term Loan B (3 mo. USD LIBOR + 4.75%)

      9.65%        08/13/2028           16,853      11,375,540

Maverick Bidco, Inc. (Mitratech), Second Lien Term Loan (3 mo. USD LIBOR + 6.75%)(e)

      11.58%        05/18/2029           174      158,140

McAfee Enterprise

             

Second Lien Term Loan (1 mo. USD LIBOR + 8.25%)

      13.08%        07/27/2029           1,037      817,603

Term Loan B (1 mo. USD LIBOR + 4.75%)

      9.58%        07/27/2028           2,920      2,498,744

McAfee LLC, Term Loan B-1 (1 mo. Term SOFR + 4.50%)

      8.42%        03/01/2029           12,865      12,088,647

Mirion Technologies, Inc., Term Loan (6 mo. USD LIBOR + 2.75%)

      7.48%        10/20/2028           3,908      3,885,562

Natel Engineering Co., Inc., Term Loan (3 mo. USD LIBOR + 6.25%)
(Acquired 04/25/2019-04/12/2022; Cost $15,461,440)(f)

      10.42%        04/29/2026           15,785      14,166,656

Native Instruments (Germany), Term Loan (3 mo. USD LIBOR + 6.00%)(e)

      7.98%        03/03/2028     EUR     3,929      3,918,993

NCR Corp., Term Loan B (3 mo. USD LIBOR + 2.50%)

      7.33%        08/28/2026           4,690      4,663,044

Oberthur Tech, Term Loan B (3 mo. USD LIBOR + 4.50%)

      9.23%        01/09/2026           1,037      1,027,934

Open Text Corp. (Canada)

             

Incremental Term Loan B(d)

      -        08/27/2029           15,355      15,354,003

Term Loan (3 mo. USD LIBOR + 1.75%)

      6.38%        05/30/2025           70      70,001

Optiv, Inc.

             

Second Lien Term Loan (3 mo. USD LIBOR + 7.25%)

      11.42%        01/31/2025           4,046      3,765,404

Term Loan (3 mo. USD LIBOR + 3.25%)

      7.42%        02/01/2024           21,381      21,267,595

Philips Domestic Appliances (Nobel Bidco) (Netherlands), Term Loan(d)

      -        06/23/2028     EUR     3,000      2,615,284

 

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

 

9   Invesco Floating Rate ESG Fund

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Electronics & Electrical–(continued)

             

Project Accelerate Parent LLC, First Lien Term Loan (3 mo. USD LIBOR + 4.25%)(e)

      8.88%        01/02/2025         $          3,131      $       3,052,941

Proofpoint, Inc., Term Loan B (3 mo. USD LIBOR + 3.25%)

      7.88%        08/31/2028           134      130,726

Quest Software US Holdings, Inc.

             

Second Lien Term Loan (3 mo. Term SOFR + 7.50%)

      12.33%        01/20/2030           753      488,797

Term Loan B (3 mo. Term SOFR + 4.25%)

      9.08%        01/19/2029           19,351      16,724,999

RealPage, Inc., Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.63%        04/24/2028           4,346      4,217,094

Riverbed Technology, Inc., PIK Term Loan, 2.00% PIK Rate, 10.83% Cash Rate (Acquired 12/06/2021-02/07/2023; Cost $11,548,852)(f)

      2.00%        12/08/2026           9,542      3,476,974

Severin Acquisition LLC, First Lien Term Loan (1 mo. Term SOFR + 3.00%)

      7.68%        08/01/2025           8      7,878

SonicWall U.S. Holdings, Inc.

                                   

First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.71%        05/16/2025           8,197      8,123,358

Second Lien Term Loan (3 mo. USD LIBOR + 7.50%)

      12.46%        05/18/2026           1,226      1,147,896

SS&C Technologies, Inc.

             

Term Loan B-3 (3 mo. USD LIBOR + 1.75%)

      6.38%        04/16/2025           2,795      2,793,716

Term Loan B-4 (3 mo. USD LIBOR + 1.75%)

      6.38%        04/16/2025           2,478      2,477,418

Term Loan B-5 (3 mo. USD LIBOR + 1.75%)

      6.38%        04/16/2025           1,772      1,770,914

Ultimate Software Group, Inc.

             

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.58%        05/04/2026           12,904      12,756,423

Incremental First Lien Term Loan (3 mo. USD LIBOR + 3.25%)

      8.03%        05/04/2026           10,408      10,219,789

UST Holdings Ltd., Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.48%        11/19/2028           8,804      8,779,610

Utimaco (Germany)

             

Term Loan B (3 mo. USD LIBOR + 6.25%)(e)

      8.95%        05/31/2029     EUR     9,126      9,247,156

Term Loan B (3 mo. Term SOFR + 6.25%)(e)

      11.06%        05/31/2029           5,122      4,947,765

Veritas US, Inc., Term Loan B (3 mo. USD LIBOR + 5.00%)

      9.73%        09/01/2025           13,312      10,473,763

WebPros, Term Loan (3 mo. USD LIBOR + 5.25%)

      9.98%        02/18/2027           7,461      7,330,478
                                   369,699,796

Financial Intermediaries–1.05%

             

Edelman Financial Center LLC (The)

             

Incremental Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        04/07/2028           11,794      11,512,511

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        07/20/2026           305      298,171

LendingTree, Inc., First Lien Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.60%        09/15/2028           12,275      11,364,427

Stiphout Finance LLC, Incremental Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        10/26/2025           3,012      3,006,448

Tegra118 Wealth Solutions, Inc., Term Loan (1 mo. USD LIBOR + 4.00%)

      8.56%        02/18/2027           6,101      5,954,057
                                   32,135,614

Food Products–2.35%

             

Arnott’s (Snacking Investments US LLC), Term Loan (1 mo. USD LIBOR + 4.00%)

      8.56%        12/18/2026           8,614      8,602,817

Biscuit Intl (Cookie Acq S.A.S., De Banketgroep Holding) (France), First Lien Term Loan (6 mo. EURIBOR + 4.00%)

      5.86%        02/15/2027     EUR     11,609      9,642,400

Florida Food Products LLC

             

First Lien Term Loan (1 mo. Term SOFR + 5.00%)(e)

      9.62%        10/18/2028           3,574      3,341,339

First Lien Term Loan (1 mo. Term SOFR + 5.00%)(e)

      9.63%        10/18/2028           15,893      14,859,959

Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)

      12.63%        10/08/2029           2,864      2,577,278

H-Food Holdings LLC

             

Incremental Term Loan B-2 (1 mo. USD LIBOR + 4.00%)

      8.63%        05/23/2025           9,195      8,304,376

Incremental Term Loan B-3 (1 mo. USD LIBOR + 5.00%)

      9.63%        05/23/2025           5,305      4,804,059

Term Loan (3 mo. USD LIBOR + 3.69%)

      8.32%        05/23/2025           6,805      6,139,462

Hostess Brands LLC, First Lien Term Loan B (1 mo. USD LIBOR + 2.25%)

      7.08%        08/03/2025           132      131,837

Nomad Foods US LLC (United Kingdom), Term Loan B (1 mo. Term SOFR + 3.75%)

      8.23%        11/10/2029           2,386      2,393,622

Shearer’s Foods LLC

             

Second Lien Term Loan (1 mo. USD LIBOR + 7.75%)

      12.39%        09/22/2028           405      378,952

Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        09/23/2027           2      2,232

Sigma Bidco B.V. (Netherlands)

             

Term Loan B-1 (3 mo. EURIBOR + 3.50%)

      6.24%        07/02/2025     EUR     3,889      3,838,245

Term Loan B-2 (3 mo. USD LIBOR + 3.00%)

      7.46%        07/02/2025           2,866      2,693,283

United Natural Foods, Inc., Term Loan (3 mo. USD LIBOR + 3.25%)

      7.98%        10/22/2025           2,807      2,817,194

Valeo Foods (Jersey) Ltd. (United Kingdom), First Lien Term Loan B (6 mo. EURIBOR + 4.00%)

      5.16%        09/29/2028     EUR     1,129      1,016,653
                                   71,543,708

 

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

 

10   Invesco Floating Rate ESG Fund

      Interest
Rate		      Maturity
Date		          Principal
Amount
(000)(a)		      Value

Food Service-0.77%

             

Aramark Services, Inc.

             

Term Loan B-3 (1 mo. USD LIBOR + 1.75%)

      6.38%        03/11/2025         $ 685      $          685,022

Term Loan B-5 (1 mo. USD LIBOR + 2.50%)

      7.13%        04/06/2028           666      665,238

Euro Garages (Netherlands)

             

Term Loan B (3 mo. USD LIBOR + 4.00%)

      9.15%        02/07/2025           1,941      1,821,709

Term Loan B (3 mo. USD LIBOR + 4.25%)

      8.98%        03/31/2026           826      774,349

Financiere Pax S.A.S.

             

Revolver Loan (3 mo. USD LIBOR + 4.30%)(e)

      0.90%        01/02/2026     EUR     268      231,366

Revolver Loan(g)

      0.00%        03/25/2023           805      694,098

Term Loan B (6 mo. EURIBOR + 4.75%)

      7.19%        07/01/2026     EUR     6,781      6,553,678

US Foods, Inc., Incremental Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        11/22/2028           4,171      4,171,516

WW International, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.14%        04/13/2028                  13,444      7,814,045
                                   23,411,021

Health Care-2.93%

             

Acacium (Impala Bidco Ltd./ICS US, Inc.) (United Kingdom)

             

Term Loan (1 mo. SONIA + 4.75%)

      8.68%        06/08/2028     GBP     2,490      2,884,287

Term Loan (1 mo. Term SOFR + 4.50%)(e)

      9.15%        06/08/2028           2,922      2,732,290

Ascend Learning LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.12%        12/11/2028           1,587      1,494,540

athenahealth Group, Inc.

             

Term Loan (1 mo. Term SOFR + 3.50%)

      8.06%        02/15/2029           6,262      5,810,576

Delayed Draw Term Loan(g)

      0.00%        02/15/2029           767      712,022

Cerba (Chrome Bidco) (France)

             

Term Loan (3 mo. EURIBOR + 4.00%)

      5.93%        02/14/2029     EUR     1,684      1,713,534

Term Loan(d)

      -        02/16/2029     EUR     1,802      1,885,285

Term Loan B (1 mo. EURIBOR + 3.25%)

      6.16%        05/24/2028     EUR     2,000      1,994,176

Certara Holdco, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        08/14/2026           1,357      1,349,897

Ethypharm (Financiere Verdi, Orphea Ltf) (France), Term Loan B (3 mo. SONIA + 4.50%)

      7.93%        04/17/2028     GBP     1,119      1,198,503

Explorer Holdings, Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.50%)

      9.13%        02/04/2027           13,692      12,639,143

Global Medical Response, Inc.

             

Term Loan (1 mo. USD LIBOR + 4.25%)

      9.20%        03/14/2025           8,922      7,150,326

Term Loan (1 mo. USD LIBOR + 4.25%)

      8.83%        10/02/2025           5,124      4,087,087

ICON PLC

             

Term Loan (3 mo. USD LIBOR + 2.25%)

      7.00%        07/03/2028           448      448,024

Term Loan (3 mo. USD LIBOR + 2.25%)

      7.00%        07/03/2028           1,798      1,798,206

Inovie Group Bidco (Labosud) (France), Term Loan B (3 mo. EURIBOR + 4.00%)

      6.20%        03/03/2028     EUR     5,101      5,054,643

International SOS L.P., Term Loan B (3 mo. USD LIBOR + 3.75%)(e)

      8.50%        09/07/2028           7,669      7,563,940

MedAssets Software Intermediate Holdings, Inc. (nThrive TSG)

             

First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63%        12/18/2028           8,871      8,313,325

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        12/17/2029           1,991      1,424,764

Neuraxpharm (Cerebro BidCo/Blitz F20-80 GmbH) (Germany)

             

Term Loan B (3 mo. EURIBOR + 4.25%)

      6.74%        12/15/2027     EUR     388      403,787

Term Loan B-2 (3 mo. EURIBOR + 4.25%)

      6.74%        12/15/2027     EUR     224      233,245

Nidda Healthcare Holding AG (Germany), Term Loan F (3 mo. SONIA + 4.50%)

      8.45%        08/21/2026     GBP     639      731,761

Organon & Co., Term Loan B (3 mo. USD LIBOR + 3.00%)

      7.75%        06/02/2028           5,184      5,142,818

Summit Behavioral Healthcare LLC, First Lien Term Loan (3 mo. USD LIBOR + 4.75%)

      9.88%        11/24/2028           3,891      3,777,012

TTF Holdings LLC (Soliant), Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.69%        03/31/2028           1,716      1,714,857

Veonet (Blitz F21-433 GmbH) (Germany), First Lien Term Loan (3 mo. EURIBOR + 4.75%)(e)

      7.77%        03/14/2029     EUR     865      892,601

Verscend Holding Corp., Term Loan B-1 (1 mo. USD LIBOR + 4.00%)

      8.63%        08/27/2025           3,966      3,970,036

Women’s Care Holdings, Inc. LLC

             

First Lien Term Loan (6 mo. USD LIBOR + 4.50%)

      9.33%        01/15/2028           1,938      1,821,340

Second Lien Term Loan (1 mo. USD LIBOR + 8.25%)

      13.08%        01/15/2029           551      500,431
                                   89,442,456

Home Furnishings-2.33%

             

Griffon Corp., Term Loan B (1 mo. Term SOFR + 2.75%)

      9.00%        01/19/2029           269      267,643

 

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

 

11   Invesco Floating Rate ESG Fund

      Interest
Rate		     Maturity
Date		          Principal
Amount
(000)(a)		      Value

Home Furnishings-(continued)

            

Hilding Anders AB (Sweden)

            

Term Loan (6 mo. EURIBOR + 5.00%) (Acquired 10/04/2022-10/31/2022; Cost $ 878,990)(e)(f)

      7.12%       02/28/2026     EUR     1,206      $          835,650

Term Loan (6 mo. EURIBOR+0.00%) (Acquired 10/04/2022-10/31/2022; Cost $ 9,664)(e)(f)

      12.00%       02/26/2027     EUR     1,096      0

Hunter Douglas Holding B.V., Term Loan B-1 (3 mo. Term SOFR + 3.50%)

      8.37%       02/26/2029         $        26,103      24,094,096

Hunter Douglas, Inc., First Lien Term Loan (3 mo. EURIBOR + 4.00%)

      6.67%       02/26/2029     EUR     6,652      6,444,750

Mattress Holding Corp., Term Loan (6 mo. USD LIBOR + 4.25%)

      8.44%       09/25/2028           16,440      15,556,341

Serta Simmons Bedding LLC

            

First Lien Term Loan(h)

      0.00%       08/10/2023           7,568      7,485,980

Second Lien Term Loan(h)

      0.00%       08/10/2023           12,055      6,759,174

SIWF Holdings, Inc., Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.75%       10/06/2028           9,923      8,566,765

VC GB Holdings, Inc., Second Lien Term Loan (3 mo. USD LIBOR + 6.75%)

      11.38%       07/01/2029           1,231      977,882
                                  70,988,281

Industrial Equipment-3.70%

            

Chart Industries, Inc., Term Loan B (d)

      -       12/08/2029           6,890      6,894,107

Crosby US Acquisition Corp., First Lien Term Loan (1 mo. USD LIBOR + 4.75%)

      9.50%       06/26/2026           2,558      2,500,153

Deliver Buyer, Inc. (MHS Holdings), Term Loan B (3 mo. Term SOFR + 5.50%)

      10.08%       06/08/2029           9,906      8,568,553

DXP Enterprises, Inc., Term Loan (1 mo. Term SOFR + 4.75%)

      10.17%       12/23/2027           6,380      6,280,461

Engineered Machinery Holdings, Inc., Second Lien Incremental Term Loan (3 mo. USD LIBOR + 6.00%)(e)

      10.73%       05/21/2029           481      449,501

Kantar (Summer BC Bidco) (United Kingdom)

            

Revolver Loan (1 mo. USD LIBOR + 3.00%)(e)

      1.27%       06/04/2026           3,920      3,567,091

Term Loan (3 mo. EURIBOR + 4.25%)

      6.32%       12/04/2026     EUR     1,140      1,149,288

Term Loan B (3 mo. USD LIBOR + 5.00%)(e)

      9.77%       12/04/2026           11,831      11,239,294

Term Loan B-2

      9.23%       12/04/2026           4,256      4,059,131

Madison IAQ LLC, Term Loan (3 mo. USD LIBOR + 3.25%)

      7.99%       06/21/2028           1,927      1,839,717

MKS Instruments, Inc., Term Loan B (1 mo. Term SOFR + 2.75%)

      7.41%       08/17/2029           11,381      11,315,646

MX Holdings US, Inc., Term Loan B-1-C (1 mo. USD LIBOR + 2.50%)

      7.13%       07/31/2025           498      498,287

New VAC US LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%       03/08/2025           3,516      3,164,208

Robertshaw US Holding Corp.

            

First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.25%       02/28/2025           20,452      11,436,346

Second Lien Term Loan (3 mo. USD LIBOR + 8.00%)

      12.75%       02/28/2026           4,802      1,662,692

Summer (BC) Holdco B S.a r.l (), Revolver Loan(g)

      0.00%       03/25/2023           3,080      2,802,909

Syntegon (BOSPAC Platin2025 S.a.r.l.) (Germany), Term Loan B (3 mo. EURIBOR + 3.90%)

      6.10%       12/29/2028     EUR     1,385      1,427,958

Tank Holding Corp.

            

Revolver Loan (1 mo. Term SOFR + 6.00%)(e)

      0.38%       03/31/2028           369      342,646

Revolver Loan(g)

      0.00%       03/31/2028           1,333      1,238,797

Term Loan (1 mo. Term SOFR + 6.00%)

      10.47%       03/31/2028           25,539      24,533,731

Thyssenkrupp Elevators (Vertical Midco GmbH) (Germany), Term Loan B (6 mo. USD LIBOR + 3.50%)

      8.60%       07/31/2027           2,331      2,284,085

Victory Buyer LLC (Vantage Elevator)

            

Second Lien Term Loan B (1 mo. USD LIBOR + 7.00%)(e)

      11.59%       11/19/2029           789      635,212

Term Loan B (1 mo. USD LIBOR + 3.75%)(e)

      8.34%       11/15/2028           5,536      4,872,104
                                  112,761,917

Insurance-2.77%

            

Acrisure LLC

            

First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%       02/15/2027           8,762      8,395,404

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%       02/15/2027           7,423      7,129,061

First Lien Term Loan (1 mo. USD LIBOR + 4.25%)

      8.88%       02/15/2027           8,507      8,217,613

Term Loan (1 mo. Term SOFR + 5.75%)

      10.45%       02/15/2027           674      675,846

Alliant Holdings Intermediate LLC, Term Loan (1 mo. USD LIBOR + 3.50%)

      8.09%       11/06/2027           10,246      10,141,545

AmWINS Group LLC, Term Loan B(d)

      -       02/19/2028           2,732      2,724,676

HUB International Ltd., Incremental Term Loan B-3 (1 mo. USD LIBOR + 3.25%)

      8.06%       04/25/2025           4,333      4,332,045

Ryan Specialty Group LLC, Term Loan (1 mo. USD LIBOR + 3.00%)

      7.72%       09/01/2027           7,643      7,645,060

Sedgwick Claims Management Services, Inc., Term Loan B (1 mo. Term SOFR + 3.75%)

      8.32%       02/21/2028           9,860      9,759,645

 

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

 

12   Invesco Floating Rate ESG Fund

      Interest
Rate		     Maturity
Date		          Principal
Amount
(000)(a)		      Value

Insurance-(continued)

            

USI, Inc.

            

Term Loan (3 mo. USD LIBOR + 3.25%)

      8.41%       12/02/2026         $          6,293      $6,295,332

Term Loan (1 mo. Term SOFR + 3.75%)

      8.33%       11/22/2029           19,115      19,104,761
                                       84,420,988

Leisure Goods, Activities & Movies-4.04%

            

Bright Horizons Family Solutions, Inc., Term Loan B

      6.98%       11/19/2028           4,820      4,820,983

Carnival Corp.

            

Incremental Term Loan (6 mo. USD LIBOR + 3.25%)

      7.88%       10/18/2028           17,979      17,484,468

Term Loan (6 mo. USD LIBOR + 3.00%)

      7.63%       06/30/2025           2,530      2,494,276

Crown Finance US, Inc.

            

DIP Term Loan (1 mo. Term SOFR + 10.00%) (Acquired 09/14/2022-09/23/2022; Cost $21,244,074)(f)

      14.84%       09/07/2023           22,206      22,705,776

First Lien Term Loan (Acquired 09/20/2019-07/26/2022; Cost $7,691,219)(f)(h)(i)

      0.00%       09/30/2026           9,525      1,556,298

Revolver Loan(h)

      4.73%       03/02/2023           2,061      346,583

Revolver Loan(g)

      0.00%       03/25/2023           0      0

Term Loan (Acquired 08/28/2020-11/30/2022; Cost $1,521,176)(f)(h)(i)

      0.00%       02/28/2025     EUR     2,092      361,722

Term Loan (Acquired 12/15/2021-10/20/2022; Cost $6,905,060)(f)(h)(i)

      0.00%       02/28/2025           9,452      1,554,631

CWGS Group LLC, Term Loan (1 mo. USD LIBOR + 2.50%)

      7.13%       06/03/2028           6,092      5,460,358

Delta 2 Lux S.a.r.l. (United Kingdom), First Lien Term Loan (1 mo. Term SOFR + 3.25%)

      8.06%       01/15/2030           5,956      5,979,411

Eagle Midco Ltd. (United Kingdom)

            

Term Loan (3 mo. EURIBOR + 3.75%)

      5.95%       03/20/2028     EUR     403      409,494

Term Loan (1 mo. EURIBOR + 4.75%)

      8.96%       03/20/2028     GBP     1,617      1,828,673

Fitness International LLC, Term Loan B (3 mo. USD LIBOR + 3.25%)

      8.08%       04/18/2025           5,740      5,514,808

Galileo Global Educaion Finance S.a.r.l. (Luxembourg), Term Loan B (3 mo. EURIBOR + 3.50%)

      6.16%       07/14/2028     EUR     525      543,368

Global University Systems (Netherlands), Term Loan B (6 mo. EURIBOR + 3.50%)

      5.80%       01/29/2027     EUR     1,083      1,082,812

Lakeland Tours LLC

            

PIK Term Loan, 13.25% PIK Rate (Acquired 09/25/2020-09/27/2022; Cost $408,744)(f)

      13.25%       09/25/2027           986      665,759

Third Lien Term Loan B (1 mo. USD LIBOR + 6.00%) (Acquired 09/25/2020-10/31/2022; Cost $638,889)(e)(f)

      10.83%       09/25/2025           823      748,583

Nord Anglia Education, Term Loan B(d)

      -       01/25/2028           2,280      2,282,660

OEG Borrower LLC (Opry Entertainment), Term Loan B (3 mo. Term SOFR + 5.00%)(e)

      9.60%       05/20/2029           7,256      7,237,534

Parques Reunidos (Piolin Bidco s.a.u) (Spain)

            

Revolver Loan (3 mo. EURIBOR + 3.50%)(e)

      1.05%       03/16/2026     EUR     2,538      2,402,293

Revolver Loan(g)

      0.00%       03/16/2026           3,483      3,296,671

Red Ventures LLC (New Imagitas, Inc.), Term Loan(d)

      -       02/24/2030           1,558      1,558,130

Royal Caribbean Cruises

            

Revolver Loan (3 mo. USD LIBOR + 1.30%)(e)

      5.69%       04/05/2024           9,348      8,950,779

Revolver Loan (3 mo. USD LIBOR + 1.70%)

      5.56%       04/12/2024           1,621      1,550,944

Revolver Loan(g)

      0.00%       04/05/2024           1,239      1,186,701

Revolver Loan(g)

      0.00%       04/12/2024           452      432,524

Scenic (Columbus Capital B.V.) (Australia), Term Loan B (3 mo. EURIBOR + 3.75%)

      5.95%       02/27/2027     EUR     5,233      4,533,752

SeaWorld Parks & Entertainment, Inc., Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.69%       08/25/2028           2,194      2,191,033

Six Flags Theme Parks, Inc., Term Loan B (3 mo. USD LIBOR + 1.75%)

      6.39%       04/17/2026           1,229      1,208,649

Vue International Bidco PLC (United Kingdom)

            

First Lien Term Loan(d)(e)(h)

      -       07/03/2025     GBP     9,000      5,981,171

Term Loan

      1.00%       06/30/2027     EUR     1,172      1,084,936

Term Loan (6 mo. EURIBOR + 8.00%)

      9.77%       06/30/2027     EUR     2,223      2,057,639

Term Loan (3 mo. EURIBOR + 8.00%)

      4.35%       12/31/2027     EUR     5,329      3,553,058
                                  123,066,477

Lodging & Casinos-1.60%

            

Aimbridge Acquisition Co., Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.75%)

      9.34%       02/02/2026           3,411      3,251,852

B&B Hotels S.A.S. (France), Second Lien Term Loan A-1 (3 mo. EURIBOR + 8.50%)

      10.89%       07/31/2027     EUR     1,204      1,268,498

Everi Payments, Inc., Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.13%       08/03/2028           333      332,410

 

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

 

13   Invesco Floating Rate ESG Fund

      Interest
Rate		     Maturity
Date		          Principal
Amount
(000)(a)		      Value

Lodging & Casinos-(continued)

            

Four Seasons Holdings, Inc. (Canada), Term Loan (1 mo. Term SOFR + 3.25%)

      8.16%       11/30/2029         $          1,921      $       1,932,189

Hilton Grand Vacations Borrower LLC, Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%       08/02/2028           1,940      1,939,043

HotelBeds (United Kingdom)

            

Term Loan B (3 mo. EURIBOR + 4.25%)

      6.71%       09/12/2025     EUR     7,975      7,926,560

Term Loan C (6 mo. EURIBOR+4.50%)

      6.96%       09/30/2027     EUR     2,534      2,500,075

Term Loan D (6 mo. EURIBOR + 5.50%)

      7.75%       09/12/2027     EUR     26,609      26,744,299

RHP Hotel Properties L.P., Term Loan B (3 mo. USD LIBOR + 2.00%)

      6.64%       05/11/2024           355      354,858

Travel + Leisure Co., Incremental Term Loan (1 mo. Term SOFR + 4.00%)

      8.61%       12/14/2029           2,596      2,592,648
                                  48,842,432

Nonferrous Metals & Minerals-0.51%

            

American Rock Salt Co. LLC

            

First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63%       06/09/2028           1,355      1,311,543

Second Lien Term Loan (1 mo. USD LIBOR + 7.25%)(e)

      11.88%       06/11/2029           212      201,285

AZZ, Inc., Term Loan (1 mo. Term SOFR + 4.25%)

      8.97%       05/13/2029           7,860      7,873,255

Covia Holdings Corp., Term Loan (3 mo. USD LIBOR + 4.00%)

      8.78%       07/31/2026           819      811,493

Form Technologies LLC

            

First Lien Term Loan (3 mo. USD LIBOR + 4.50%)

      9.46%       07/19/2025           3,557      3,257,774

First Lien Term Loan (3 mo. USD LIBOR + 9.00%)(e)

      13.96%       10/22/2025           2,106      1,705,448

SCIH Salt Holdings Inc. (Kissner Group), Incremental First Lien Term Loan B-1 (1 mo. USD LIBOR + 4.00%)

      8.83%       03/16/2027           443      432,632
                                  15,593,430

Oil & Gas-1.37%

            

Brazos Delaware II LLC, First Lien Term Loan (d)

      -       02/01/2030           6,520      6,490,273

Glass Mountain Pipeline Holdings LLC, Term Loan (3 mo. USD LIBOR + 4.50%)

      9.14%       10/28/2027           304      257,301

Gulf Finance LLC, Term Loan (1 mo. USD LIBOR + 6.75%)

      11.48%       08/25/2026           3,097      3,044,982

McDermott International Ltd.

            

LOC(g)

      0.00%       06/30/2024           6,610      5,387,410

LOC (3 mo. USD LIBOR + 4.00%)(e)

      8.46%       06/30/2024           2,890      2,022,696

PIK Term Loan, 3.00% PIK Rate, 5.63% Cash Rate

      3.00%       06/30/2025           1,533      1,017,419

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%       06/30/2024           279      169,496

Petroleum GEO-Services ASA (Norway)

            

Term Loan (3 mo. Term SOFR + 6.75%) (Acquired 05/23/2022; Cost $1,133,010)(e)(f)

      11.33%       03/18/2024           1,133      1,150,005

Term Loan (1 mo. USD LIBOR + 7.50%) (Acquired 02/03/2021-02/09/2021; Cost $7,756,533)(f)

      12.14%       03/19/2024           8,367      8,241,053

QuarterNorth Energy, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 8.00%) (Acquired 08/03/2021; Cost $2,638,482)(f)

      12.63%       08/27/2026           2,678      2,673,989

TransMontaigne Partners LLC, Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%       11/17/2028           9,416      9,381,526

WhiteWater Whistler Holdings LLC, Term Loan B(d)

      -       01/25/2030           2,093      2,092,230
                                  41,928,380

Publishing-3.38%

            

Cengage Learning, Inc., Term Loan B (6 mo. USD LIBOR + 4.75%)

      9.88%       06/29/2026           22,823      21,638,012

Clear Channel Worldwide Holdings, Inc., Term Loan B (3 mo. USD LIBOR + 3.50%)

      8.23%       08/21/2026           7,635      7,246,737

Dotdash Meredith, Inc., Term Loan B (1 mo. Term SOFR + 4.00%)(e)

      8.67%       12/01/2028           22,994      20,350,107

Harbor Purchaser, Inc. (Houghton Mifflin Harcourt)

            

Second Lien Term Loan (1 mo. Term SOFR + 8.50%)(e)

      13.12%       04/08/2030           10,267      8,932,128

Term Loan B (1 mo. Term SOFR + 5.25%)

      9.97%       04/09/2029           13,186      12,131,064

McGraw-Hill Education, Inc., Term Loan B (1 mo. USD LIBOR + 4.75%)

      9.38%       07/30/2028           14,359      13,820,703

Micro Holding L.P.

            

First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.38%       09/13/2024           4,505      4,479,834

Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%       09/13/2024           14,552      14,470,060
                                  103,068,645

Radio & Television-0.83%

            

Diamond Sports Holdings LLC, Second Lien Term Loan (1 mo. Term SOFR + 3.25%) (Acquired 03/01/2022; Cost $2,506,252)(f)

      8.03%       08/24/2026           3,798      446,580

E.W. Scripps Co. (The), Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%       01/07/2028           6,527      6,447,292

 

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

 

14   Invesco Floating Rate ESG Fund

      Interest
Rate		     Maturity
Date		          Principal
Amount
(000)(a)		      Value

Radio & Television-(continued)

            

Gray Television, Inc.

            

Term Loan C (1 mo. USD LIBOR + 2.50%)

      7.07%       01/02/2026         $             364      $          359,800

Term Loan D (1 mo. USD LIBOR + 3.00%)

      7.57%       12/01/2028           4,008      3,970,304

iHeartCommunications, Inc., Incremental Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%       05/01/2026           784      764,754

Nexstar Broadcasting, Inc.

            

Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.05%       06/02/2028           1,096      1,093,389

Term Loan B-4 (1 mo. USD LIBOR + 2.50%)

      7.13%       09/18/2026           4,671      4,667,494

Sinclair Television Group, Inc.

            

Term Loan B-2-B (1 mo. USD LIBOR + 2.50%)

      7.14%       09/30/2026           1,498      1,454,677

Term Loan B-3 (1 mo. USD LIBOR + 3.00%)

      7.64%       04/01/2028           3,792      3,661,653

Term Loan B-4 (1 mo. Term SOFR + 3.75%)

      8.47%       04/21/2029           635      620,521

Univision Communications, Inc.

            

First Lien Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%       03/15/2026           533      529,829

First Lien Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%       05/05/2028           1,432      1,416,811
                                  25,433,104

Retailers (except Food & Drug)-2.40%

            

CNT Holdings I Corp. (1-800 Contacts), First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%       11/08/2027           18,509      18,208,055

Kirk Beauty One GmbH (Germany)

            

Term Loan B-1 (6 mo. EURIBOR + 5.50%)

      7.45%       04/08/2026     EUR     992      1,003,194

Term Loan B-2 (6 mo. EURIBOR + 5.50%)

      7.45%       04/08/2026     EUR     677      684,031

Term Loan B-3 (3 mo. EURIBOR+5.25%)

      7.45%       04/08/2026     EUR     1,477      1,492,893

Term Loan B-4 (6 mo. EURIBOR + 5.50%)

      7.45%       04/08/2026     EUR     2,253      2,278,107

Term Loan B-5 (6 mo. EURIBOR + 5.50%)

      7.45%       04/08/2026     EUR     461      466,442

Petco Animal Supplies, Inc., First Lien Term loan (3 mo. Term SOFR + 3.25%)

      8.09%       03/02/2028           11,380      11,280,729

PetSmart LLC, Term Loan (1 mo. Term SOFR + 3.75%)

      8.47%       02/11/2028           26,449      26,412,823

Savers, Inc., Term Loan (3 mo. USD LIBOR + 5.50%)

      10.34%       04/26/2028           11,563      11,457,102
                                  73,283,376

Surface Transport-2.03%

            

American Trailer World Corp., First Lien Term Loan (1 mo. Term SOFR + 3.75%)

      8.47%       03/03/2028           5,127      4,557,988

Carriage Purchaser, Inc., Term Loan B (1 mo. USD LIBOR + 4.25%)

      8.88%       09/30/2028           4,905      4,838,544

First Student Bidco, Inc.

            

Delayed Draw Term Loan (3 mo. Term SOFR + 4.00%)

      8.68%       07/21/2028           853      833,429

Incremental Term Loan B (3 mo. Term SOFR + 4.00%)

      8.68%       07/21/2028           12,285      12,001,375

Term Loan B (3 mo. USD LIBOR + 3.00%)

      7.73%       07/21/2028           6,199      5,928,093

Term Loan C (3 mo. USD LIBOR + 3.00%)

      7.73%       07/21/2028           2,311      2,210,325

Hurtigruten (Explorer II AS) (Norway)

            

Term Loan B (3 mo. EURIBOR + 4.00%)

            

(Acquired 04/16/2021-09/27/2021; Cost $9,457,889)(f)

      7.20%       02/24/2025     EUR     8,164      7,870,569

Term Loan C (3 mo. EURIBOR + 8.00%)

            

(Acquired 10/05/2021; Cost $2,328,198)(f)

      10.63%       06/16/2023     EUR     2,000      2,108,789

Term Loan D (3 mo. EURIBOR + 8.00%)

            

(Acquired 09/30/2021; Cost $1,196,311)(f)

      9.30%       06/22/2023     EUR     1,023      1,078,573

Novae LLC, Term Loan B (3 mo. Term SOFR + 5.00%)

      9.70%       12/22/2028           1,878      1,627,307

PODS LLC

            

Term Loan(d)(e)

      -       04/01/2028           2,045      2,035,206

Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.73%       04/01/2028           10,596      10,364,527

STG - XPOI Opportunity, Term Loan B (1 mo. Term SOFR + 6.00%)

      10.78%       04/30/2028           6,599      6,326,632
                                  61,781,357

Telecommunications-6.50%

            

Avaya, Inc.

            

DIP Term Loan(e)

      0.00%       08/15/2023           4,250      4,419,785

DIP Term Loan(g)

      0.00%       08/15/2023           1,062      1,104,946

First Lien Term Loan(h)

      0.00%       12/15/2027           12,941      3,377,752

Term Loan B-2(h)

      0.00%       12/15/2027           15,487      4,007,248

Cablevision Lightpath LLC, Term Loan (1 mo. USD LIBOR + 3.25%)

      7.84%       11/30/2027           7,050      7,014,485

CCI Buyer, Inc. (Consumer Cellular), Term Loan

      8.58%       12/17/2027           2,754      2,714,772

 

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

 

15   Invesco Floating Rate ESG Fund

      Interest
Rate		     Maturity
Date		          Principal
Amount
(000)(a)		      Value

Telecommunications–(continued)

            

CenturyLink, Inc.

            

Term Loan A(d)

      -       01/31/2025         $          3,266      $       3,147,831

Term Loan B (1 mo. USD LIBOR + 2.25%)

      6.88%       03/15/2027           15,617      13,025,241

Crown Subsea Communications Holding, Inc.

            

Incremental Term Loan(d)

      -       04/27/2027           3,725      3,672,243

Term Loan (1 mo. Term SOFR + 4.75%)

      9.32%       04/27/2027           13,546      13,355,705

Eagle Broadband Investments LLC (Mega Broadband), Term Loan (3 mo. USD LIBOR + 3.00%)

      7.75%       11/12/2027           5,007      4,960,758

II-VI, Inc., Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%       07/01/2029           7,279      7,265,136

Inmarsat Finance PLC (United Kingdom), Term Loan (1 mo. USD LIBOR + 3.50%)

      8.14%       12/11/2026           11,357      11,184,224

Intelsat Jackson Holdings S.A. (Luxembourg), Term Loan B (6 mo. Term SOFR + 4.25%)

      9.08%       02/01/2029           22,799      22,576,543

Iridium Satellite LLC, Term Loan B

      7.22%       11/04/2026           565      564,966

Level 3 Financing, Inc., Term Loan B (1 mo. USD LIBOR + 1.75%)

      6.38%       03/01/2027           3,113      2,849,932

MLN US HoldCo LLC (dba Mitel)

            

First Lien Term Loan (6 mo. USD LIBOR + 4.50%)

      8.25%       11/30/2025           160      47,489

First Lien Term Loan (6 mo. Term SOFR + 6.70%)(e)

      11.15%       11/01/2027           32,765      23,754,354

First Lien Term Loan (6 mo. Term SOFR + 9.25%)

      13.70%       11/01/2027           8,144      6,229,950

Term Loan (6 mo. Term SOFR + 6.44%)

      10.89%       11/01/2027           13,941      13,662,061

Radiate Holdco LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%       09/25/2026           6,696      5,576,617

Telesat LLC, Term Loan B-5 (1 mo. USD LIBOR + 2.75%)

      7.58%       12/07/2026           17,351      9,382,038

Viasat, Inc., Term Loan (1 mo. Term SOFR + 3.75%)

      9.23%       03/02/2029           7,240      7,176,294

Voyage Digital (NC) Ltd., Term Loan B (3 mo. Term SOFR + 4.50%)(e)

      9.30%       05/10/2029           5,758      5,714,707

Windstream Services LLC, Term Loan (1 mo. Term SOFR + 6.25%)

      10.97%       09/21/2027           8,211      7,392,630

Zayo Group Holdings, Inc., Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%       03/09/2027           6,182      5,161,141

Zayo Group LLC, Incremental Term Loan (1 mo. Term SOFR + 4.25%)

      8.87%       03/09/2027           10,168      8,702,528
                                  198,041,376

Utilities–1.88%

            

Brookfield WEC Holdings, Inc.

            

First Lien Term Loan (1 mo. USD LIBOR + 2.75%)

      7.38%       08/01/2025           5,650      5,636,361

Incremental Term Loan (1 mo. Term SOFR + 3.75%)

      8.37%       08/01/2025           9,087      9,096,960

Calpine Corp.

            

Term Loan (3 mo. USD LIBOR + 2.00%)

      6.64%       04/05/2026           1,069      1,067,356

Term Loan (1 mo. USD LIBOR + 2.50%)

      7.14%       12/16/2027           2,838      2,837,197

Covanta Holding Corp.

            

Term Loan B (1 mo. Term SOFR + 2.50%)

      7.12%       11/30/2028           3,918      3,913,064

Term Loan C (1 mo. Term SOFR + 2.50%)

      7.12%       11/30/2028           296      295,329

Eastern Power LLC, Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%       10/02/2025           5,211      4,757,317

Generation Bridge LLC

            

Term Loan B (3 mo. USD LIBOR + 5.00%)

      9.73%       12/01/2028           3,760      3,757,167

Term Loan C (1 mo. USD LIBOR + 5.00%)

      9.73%       12/01/2028           83      82,687

Granite Generation LLC, Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%       11/09/2026           7,192      6,907,845

KAMC Holdings, Inc. (Franklin Energy Group), First Lien Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.95%       08/14/2026           2,562      2,241,239

Nautilus Power LLC, Term Loan (3 mo. USD LIBOR + 4.25%)
(Acquired 04/28/2017-04/22/2021; Cost $5,206,535)(f)

      8.88%       05/16/2024           5,215      3,877,270

Osmose Utilities Services, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%       06/23/2028           2,602      2,519,051

Pike Corp., Term Loan (1 mo. Term SOFR + 3.50%)

      8.12%       01/21/2028           1,836      1,835,605

USIC Holding, Inc.

                                  

First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%       05/12/2028           8,007      7,783,186

Second Lien Term Loan (1 mo. USD LIBOR + 6.50%)

      11.13%       05/14/2029           616      572,863
                                  57,180,497

Total Variable Rate Senior Loan Interests (Cost $2,879,075,833)

                                 2,692,136,274

Non-U.S. Dollar Denominated Bonds & Notes–3.30%(j)

            

Automotive–0.24%

            

Cabonline Group Holding AB (Sweden) (3 mo. STIBOR + 9.50%)(k)(l)

      12.37%       04/19/2026     SEK     73,750      6,481,658

Leather 2 S.p.A. (Italy) (3 mo. EURIBOR + 4.50%)(k)(l)

      6.70%       09/30/2028     EUR     917      780,143
                                  7,261,801

 

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

 

16   Invesco Floating Rate ESG Fund

      Interest
Rate		     Maturity
Date		          Principal
Amount
(000)(a)		      Value

Building & Development–0.12%

            

APCOA Parking Holdings GmbH (Germany) (3 mo. EURIBOR + 5.00%)(k)(l)

      7.29%       01/15/2027     EUR              1,117      $       1,156,581

Haya (Holdco2 PLC/Real Estate SAU) (Spain) (Acquired 06/14/2022; Cost $4,308,996)(f)

      10.95%       11/30/2025     EUR     5,883      2,442,473
                                  3,599,054

Business Equipment & Services–0.03%

            

Bach Bidco S.p.A. (Italy) (3 mo. EURIBOR + 4.25%)(k)(l)

      6.54%       10/15/2028     EUR     1,000      1,022,002

Cable & Satellite Television–0.10%

            

Altice Finco S.A. (Luxembourg)(k)

      4.75%       01/15/2028     EUR     3,712      3,046,559

Chemicals & Plastics–0.02%

            

Herens Midco S.a.r.l. (Luxembourg)(k)

      5.25%       05/15/2029     EUR     791      578,328

Electronics & Electrical–0.25%

            

Nobel Bidco B.V. (Netherlands)(k)

      3.13%       06/15/2028     EUR     10,186      7,571,593

Financial Intermediaries–1.10%

            

AnaCap Financial Europe S.A. SICAV-RAIF (Italy) (3 mo. EURIBOR + 5.00%)(k)(l)

      7.48%       08/01/2024     EUR     7,201      6,356,574

Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 6.25%)(k)(l)

      8.73%       05/01/2026     EUR     1,945      1,814,782

Garfunkelux Holdco 3 S.A. (Luxembourg)(k)

      6.75%       11/01/2025     EUR     6,615      5,759,879

Kane Bidco Ltd. (United Kingdom)(k)

      5.00%       02/15/2027     EUR     827      817,361

Kane Bidco Ltd. (United Kingdom)(k)

      6.50%       02/15/2027     GBP     1,034      1,135,440

Nemean Bondco PLC (United Kingdom)(k)

      7.38%       02/01/2024     GBP     2,900      3,379,256

Sherwood Financing PLC (United Kingdom)(k)

      6.00%       11/15/2026     GBP     937      939,977

Sherwood Financing PLC (United Kingdom)(k)

      4.50%       11/15/2026     EUR     968      903,230

Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 4.63%)(k)(l)

      7.28%       11/15/2027     EUR     6,242      6,287,733

Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 4.63%)(k)(l)

      7.28%       11/15/2027     EUR     6,000      6,043,960
                                  33,438,192

Food Products–0.47%

            

Sigma Holdco B.V. (Netherlands)(k)

      5.75%       05/15/2026     EUR     5,000      4,280,156

Sigma Holdco B.V. (Netherlands)(k)

      5.75%       05/15/2026     EUR     11,672      9,991,596
                                  14,271,752

Health Care–0.03%

            

Kepler S.p.A. (Italy) (3 mo. EURIBOR + 5.75%)(k)(l)

      7.80%       05/15/2029     EUR     864      903,800

Home Furnishings–0.10%

            

Very Group Funding PLC (The) (United Kingdom)(k)

      6.50%       08/01/2026     GBP     3,150      3,054,863

Industrial Equipment–0.17%

            

Summer (BC) Holdco A S.a.r.l. (Luxembourg)(k)

      9.25%       10/31/2027     EUR     5,997      5,284,667

Leisure Goods, Activities & Movies–0.05%

            

Deuce Finco PLC (United Kingdom) (3 mo. EURIBOR + 4.75%)(k)(l)

      6.80%       06/15/2027     EUR     807      808,863

Deuce Finco PLC (United Kingdom)(k)

      5.50%       06/15/2027     GBP     807      824,420
                                  1,633,283

Retailers (except Food & Drug)–0.26%

            

Douglas GmbH (Germany)(k)

      6.00%       04/08/2026     EUR     1,823      1,701,133

Kirk Beauty SUN GmbH (Germany)(k)(m)

      8.25%       10/01/2026     EUR     7,555      6,103,447
                                  7,804,580

Surface Transport–0.18%

            

Zenith Finco PLC (United Kingdom)(k)

      6.50%       06/30/2027     GBP     4,906      4,684,210

Zenith Finco PLC (United Kingdom)(k)

      6.50%       06/30/2027     GBP     846      807,754
                                  5,491,964

Telecommunications–0.18%

            

Iliad Holding S.A.S.U. (France)(k)

      5.13%       10/15/2026     EUR     5,500      5,508,703

Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $115,260,542)

                                 100,471,141

 

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

 

17   Invesco Floating Rate ESG Fund

      Interest
Rate		     Maturity
Date		          Principal
Amount
(000)(a)		      Value

U.S. Dollar Denominated Bonds & Notes–2.80%

            

Aerospace & Defense–0.22%

            

Maxar Technologies, Inc. (k)

      7.75%       06/15/2027         $          2,309      $       2,416,565

Rand Parent LLC(k)

      8.50%       02/15/2030           4,385      4,215,081
                                  6,631,646

Air Transport–0.02%

            

Mesa Airlines, Inc., Class B (Acquired 11/25/2015; Cost $1,108,194)(e)(f)

      5.75%       07/15/2025           665      644,442

Building & Development–0.36%

            

APCOA Parking Holdings GmbH (Germany) (k)

      4.63%       01/15/2027     EUR     939      858,107

Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (Acquired 10/29/2020-11/19/2020; Cost $2,420,618)(f)(k)

      5.75%       05/15/2026           2,637      2,430,509

Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (Acquired 09/22/2021-05/20/2022; Cost $8,656,205)(f)(k)

      4.50%       04/01/2027           9,060      7,772,619
                                  11,061,235

Business Equipment & Services–0.25%

            

ADT Security Corp. (The) (k)

      4.13%       08/01/2029           8,722      7,513,916

Cable & Satellite Television–0.84%

            

Altice Financing S.A. (Luxembourg) (k)

      5.75%       08/15/2029           2,188      1,791,742

Altice Financing S.A. (Luxembourg)(k)

      5.00%       01/15/2028           11,665      9,691,048

Altice France Holding S.A. (Luxembourg)(k)

      8.00%       05/15/2027     EUR     2,923      2,467,658

Altice France S.A. (France)(k)

      5.50%       01/15/2028           4,994      4,118,602

Altice France S.A. (France)(k)

      5.50%       10/15/2029           4,322      3,387,080

Virgin Media Secured Finance PLC (United Kingdom)(k)

      4.50%       08/15/2030           5,103      4,205,549
                                  25,661,679

Chemicals & Plastics–0.25%

            

SK Invictus Intermediate II S.a.r.l. (Luxembourg) (k)

      5.00%       10/30/2029           9,586      7,637,454

Food Service–0.07%

            

eG Global Finance PLC (United Kingdom) (k)

      6.75%       02/07/2025           1,180      1,066,366

WW International, Inc.(k)

      4.50%       04/15/2029           1,838      939,466
                                  2,005,832

Health Care–0.07%

            

Global Medical Response, Inc. (k)

      6.50%       10/01/2025           2,829      2,124,919

Industrial Equipment–0.02%

            

Chart Industries, Inc. (k)

      7.50%       01/01/2030           694      705,277

Publishing–0.18%

            

McGraw-Hill Education, Inc. (k)

      5.75%       08/01/2028           6,079      5,329,505

Radio & Television–0.01%

            

Diamond Sports Group LLC/Diamond Sports Finance Co.
(Acquired 10/15/2020-10/23/2020; Cost $1,813,127)(f)(k)

      5.38%       08/15/2026           2,398      272,053

Retailers (except Food & Drug)–0.06%

            

Evergreen Acqco 1 L.P./TVI, Inc. (k)

      9.75%       04/26/2028           1,735      1,717,902

Surface Transport–0.05%

            

First Student Bidco, Inc./First Transit Parent, Inc. (k)

      4.00%       07/31/2029           1,850      1,583,443

Telecommunications–0.30%

            

Connect Finco S.a.r.l./Connect US Finco LLC (United Kingdom) (k)

      6.75%       10/01/2026           5,683      5,263,252

Windstream Escrow LLC/Windstream Escrow Finance Corp.(k)

      7.75%       08/15/2028           4,919      4,025,636
                                  9,288,888

Utilities–0.10%

            

Calpine Corp. (k)

      4.50%       02/15/2028           3,515      3,168,254

Total U.S. Dollar Denominated Bonds & Notes (Cost $96,430,774)

                                 85,346,445

 

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

 

18   Invesco Floating Rate ESG Fund

                      Shares      Value

Common Stocks & Other Equity Interests–1.59%(n)

            

Aerospace & Defense–0.04%

            

IAP Worldwide Services, Inc. (Acquired 07/18/2014-08/18/2014; Cost $145,528)(e)(f)

                        134      $    1,294,109

Automotive–0.00%

            

Dayco Products LLC (Acquired 06/16/2006-05/29/2008; Cost $104,068)(e)(f)

                        3,261      7,337

Dayco Products LLC (Acquired 06/16/2006-02/18/2014; Cost $1,275,974)(e)(f)

                        3,266      7,349

ThermaSys Corp. (Acquired 12/31/2018; Cost $1,367,427)(e)(f)

                        1,949,645      58,489
                                73,175

Building & Development–0.00%

            

Haya (Holdco2 PLC/Real Estate SAU) (Acquired 06/14/2022; Cost $0)(e)(f)

                        7,135      0

Lake at Las Vegas Joint Venture LLC, Class A (Acquired 04/28/2010-07/15/2010;
Cost $664,569)(e)(f)

                        518      0

Lake at Las Vegas Joint Venture LLC, Class B (Acquired 06/30/2010;
Cost $3,408,940)(e)(f)

                        4      0
                                0

Business Equipment & Services–0.36%

            

Checkout Holding Corp. (Acquired 02/15/2019; Cost $4,932,126)(f)

                        15,070      4,710

My Alarm Center LLC, Class A (Acquired 03/09/2021-12/03/2021;
Cost $9,074,167)(e)(f)(o)

                        68,686      10,818,015
                                10,822,725

Containers & Glass Products–0.01%

            

Libbey Glass, Inc. (Acquired 11/13/2020-02/10/2022; Cost $146,927)(f)

                        36,078      311,173

Electronics & Electrical–0.00%

            

Riverbed Technology, Inc. (Acquired 12/06/2021; Cost $939,407)(e)(f)

                        56,084      14,301

Health Care–0.00%

            

Envigo RMS Holding Corp. (Acquired 04/29/2014-12/10/2021; Cost $0)(e)(f)

                        3,637      25,914

Industrial Equipment–0.00%

            

North American Lifting Holdings, Inc.

                        7,347      56,021

Leisure Goods, Activities & Movies–0.00%

            

Crown Finance US, Inc., Wts., expiring 11/23/2025 (Acquired 12/09/2020;
Cost $0)(f)(i)

                        518,633      0

Vue International Bidco PLC(e)

                        6,814,500      0
                                0

Lodging & Casinos–0.08%

            

Bally’s Corp.(p)

                        74,467      1,470,723

Caesars Entertainment, Inc.(p)

                        19,983      1,014,337
                                                              2,485,060

Oil & Gas–0.98%

            

McDermott International Ltd.(p)

                        629,763      245,293

McDermott International Ltd.(e)

                        1,901,942      740,807

QuarterNorth Energy, Inc. (Acquired 06/02/2021-10/29/2021; Cost $8,340,808)(e)(f)

                        131,162      26,165,507

QuarterNorth Energy, Inc., Wts., expiring 08/27/2029 (Acquired 08/27/2021;
Cost $411,759)(e)(f)

                        45,751      1,528,083

QuarterNorth Energy, Inc., Wts., expiring 08/27/2029 (Acquired 08/27/2021;
Cost $528,684)(e)(f)

                        88,114      887,308

Samson Investment Co., Class A (Acquired 03/01/2017; Cost $4,259,838)(e)(f)

                        261,209      163,256

Southcross Energy Partners L.P. (Acquired 08/05/2014-10/29/2020;
Cost $1,477,667)(e)(f)

                        145,102      1,088
                                29,731,342

Radio & Television–0.07%

            

iHeartMedia, Inc., Class A(p)

                        306,089      2,222,206

iHeartMedia, Inc., Class B(e)

                        29      210
                                2,222,416

 

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

 

19   Invesco Floating Rate ESG Fund

                      Shares      Value

Retailers (except Food & Drug)–0.02%

            

Claire’s Stores, Inc. (Acquired 10/12/2018; Cost $1,111,774)(f)

                        692      $343,117

Toys ’R’ Us-Delaware, Inc.(e)

                        11      27,642

Vivarte S.A.S.(e)

                        233,415      109,725
                                480,484

Surface Transport–0.03%

            

Commercial Barge Line Co. (Acquired 02/15/2018-02/06/2020; Cost $1,212,169)(f)

                        14,574      429,933

Commercial Barge Line Co., Series A, Wts., expiring 08/18/2030 (Acquired 02/03/2023; Cost $0)(f)

                        57,006      26,722

Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045 (Acquired 02/03/2023; Cost $0)(f)

                        48,119      30,074

Commercial Barge Line Co., Wts., expiring 04/27/2045 (Acquired 02/15/2018-02/06/2020; Cost $1,274,332)(f)

                        15,321      451,969
                                938,698

Telecommunications–0.00%

            

Consolidated Communications Holdings, Inc.(p)

                        32,797      99,375

Total Common Stocks & Other Equity Interests (Cost $57,588,983)

                               48,554,793

Preferred Stocks–0.27%(n)

            

Automotive–0.00%

            

ThermaSys Corp., Series A, Pfd. (Acquired 12/31/2018; Cost $434,767)(e)(f)

                        415,320      12,460

Electronics & Electrical–0.00%

            

Riverbed Technology, Inc., Pfd. (Acquired 12/06/2021; Cost $0)(e)(f)

                        80,284      20,473

Riverbed Technology, Inc., Pfd.(e)

                        24,314      6,200
                                26,673

Oil & Gas–0.04%

            

McDermott International Ltd., Pfd.(e)

                        1,632      1,060,731

Southcross Energy Partners L.P., Series A, Pfd. (Acquired 05/07/2019-08/23/2019;
Cost $566,509)(e)(f)

                        577,315      31,752
                                1,092,483

Surface Transport–0.23%

            

Commercial Barge Line Co., Series A, Pfd. (Acquired 02/15/2018-02/06/2020;
Cost $2,706,476)(f)

                        54,230      1,165,945

Commercial Barge Line Co., Series A, Pfd., Wts., expiring 04/27/2045 (Acquired 02/15/2018-02/06/2020; Cost $2,844,917)(f)

                        57,006      1,225,629

Commercial Barge Line Co., Series B, Pfd. (Acquired 02/05/2020-10/27/2020;
Cost $1,586,876)(f)

                        68,517      2,809,197

Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045 (Acquired 02/05/2020-10/27/2020; Cost $1,114,451)(f)

                        48,119      1,972,879
                                7,173,650

Total Preferred Stocks (Cost $9,983,415)

                               8,305,266
        Interest   
Rate		      Maturity
Date		         Principal   
Amount
(000)		       

Asset-Backed Securities–0.03%

            

Structured Products–0.03%

            

Bain Capital Credit CLO Ltd., Series 2022-2A, Class E (Cayman Islands) (3 mo. Term SOFR + 7.84%) (k)(l)
(Cost $990,513)

      12.49%        04/22/2035      $ 1,000      940,714

Municipal Obligations–0.36%

            

Arizona–0.36%

            

Arizona (State of) Industrial Development Authority,(NewLife Forest Restoration, LLC), Series 2022, RB (Acquired 02/22/2022;
Cost $12,061,216) (Cost $9,883,985)(f)(k)

      0.00%        01/01/2028        13,209      11,003,204
                   Shares       

Money Market Funds–2.62%

            

Invesco Government & Agency Portfolio,Institutional Class, 4.51%(o)(q)

            27,899,335      27,899,335

Invesco Liquid Assets Portfolio,Institutional Class, 4.64%(o)(q)

                        19,923,115      19,927,099

 

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

 

20   Invesco Floating Rate ESG Fund

                 Shares      Value  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(o)(q)

            31,884,955      $ 31,884,955  

 

  

Total Money Market Funds (Cost $79,711,952)

               79,711,389  

 

  

TOTAL INVESTMENTS IN SECURITIES–99.28% (Cost $3,248,925,997)

 

      3,026,469,226  

 

  

OTHER ASSETS LESS LIABILITIES–0.72%

               21,914,695  

 

  

NET ASSETS–100.00%

             $ 3,048,383,921  

 

  

Investment Abbreviations:

 

CLO    – Collateralized Loan Obligation
DIP    – Debtor-in-Possession
EUR    – Euro
EURIBOR    – Euro Interbank Offered Rate
GBP    – British Pound Sterling
LIBOR    – London Interbank Offered Rate
LOC    – Letter of Credit
Pfd.    – Preferred
PIK    – Pay-in-Kind
RB    – Revenue Bonds
SEK    – Swedish Krona
SOFR    – Secured Overnight Financing Rate
SONIA    – Sterling Overnight Index Average
STIBOR    – Stockholm Interbank Offered Rate
USD    – U.S. Dollar
Wts.    – Warrants

Notes to Schedule of Investments:

 

(a) 

Principal amounts are denominated in U.S. dollars unless otherwise noted.

(b) 

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 any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years.

(c) 

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. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

(d) 

This variable rate interest will settle after February 28, 2023, at which time the interest rate will be determined.

(e) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

(f) 

Restricted security. The aggregate value of these securities at February 28, 2023 was $214,382,163, which represented 7.03% of the Fund’s Net Assets.

(g) 

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 8.

(h) 

Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 28, 2023 was $31,796,012, which represented 1.03% of the Fund’s Net Assets.

(i) 

Acquired as part of a bankruptcy restructuring.

(j) 

Foreign denominated security. Principal amount is denominated in the currency indicated.

(k) 

Security purchased or received in a transaction exempt from registration under 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 February 28, 2023 was $194,674,589, which represented 6.39% of the Fund’s Net Assets.

(l)

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2023.

(m) 

All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities.

(n) 

Securities acquired through the restructuring of senior loans.

(o) 

Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or is an “affiliated person” under the Investment Company Act of 1940, as amended (the “1940 Act”), which defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. For the Investments in Other Affiliates below, the Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

     

Value

August 31, 2022

     

Purchases

at Cost

     

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

     

Value

February 28, 2023

     

Dividend Income

  
Investments in Affiliated Money Market Funds:                                                             

Invesco Government & Agency Portfolio, Institutional Class

    $ 53,493,965      $ 123,081,384      $ (148,676,014 )    $ -     $ -      $ 27,899,335      $ 346,995  

Invesco Liquid Assets Portfolio, Institutional Class

      37,775,430        87,915,275        (105,766,215 )      (8,383 )      10,992        19,927,099        249,842  

Invesco Treasury Portfolio, Institutional Class

      61,135,961        140,664,439        (169,915,445 )      -       -        31,884,955        396,251  

 

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

 

21   Invesco Floating Rate ESG Fund

     

Value

August 31, 2022

     

Purchases

at Cost

   

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

     

Value

February 28, 2023

     

Dividend

Income

  
Investments in Other Affiliates:                                                         

Commercial Barge Line Co., Series A, Wts., expiring 08/18/2030*

      $       240,494      $                   -      $       (240,503)       $(213,772)       $240,503        $       26,722        $            -  

My Alarm Center LLC, Class A

          10,955,387                          -                             -         (137,372)                    -          10,818,015                     -  

Total

      $163,601,237      $351,661,098      $(424,598,177)       $(359,527)       $251,495        $90,556,126        $993,088  

 

  *

At February 28, 2023, this security was was no longer an affiliate of the Fund.

 

(p) 

Non-income producing security.

(q) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

 

Open Forward Foreign Currency Contracts  
Settlement         Contract to     

Unrealized

Appreciation

  
Date    Counterparty            Deliver              Receive      (Depreciation)  

Currency Risk

                  

 

  

03/31/2023

    Barclays Bank PLC      EUR        3,217,119        USD        3,503,314      $ 94,658  

 

  

04/28/2023

    Barclays Bank PLC      EUR        1,982,388        USD        2,122,732        18,949  

 

  

04/28/2023

    Barclays Bank PLC      GBP        13,298,021        USD        16,114,400        102,025  

 

  

03/31/2023

    BNP Paribas S.A.      EUR        93,857,466        USD        102,528,939        3,083,478  

 

  

03/31/2023

    BNP Paribas S.A.      GBP        15,240,968        USD        18,812,924        470,674  

 

  

04/28/2023

    BNP Paribas S.A.      EUR        84,584,690        USD        90,428,300        663,928  

 

  

04/28/2023

    Canadian Imperial Bank of Commerce      GBP        13,499,506        USD        16,382,536        127,550  

 

  

03/31/2023

    Morgan Stanley and Co. International PLC      EUR        99,751,844        USD        108,972,293        3,281,521  

 

  

03/31/2023

    Morgan Stanley and Co. International PLC      GBP        1,042,511        USD        1,276,780        22,135  

 

  

03/31/2023

    Morgan Stanley and Co. International PLC      USD        2,557,449        GBP        2,125,942        1,086  

 

  

04/28/2023

    Morgan Stanley and Co. International PLC      EUR        83,873,681        USD        89,680,253        670,431  

 

  

04/28/2023

    Morgan Stanley and Co. International PLC      SEK        67,559,646        USD        6,561,145        87,552  

 

  

03/31/2023

    Royal Bank of Canada      EUR        95,279,549        USD        104,120,348        3,168,138  

 

  

03/31/2023

    Royal Bank of Canada      GBP        15,511,390        USD        19,103,476        435,776  

 

  

04/28/2023

    Royal Bank of Canada      EUR        84,584,690        USD        90,497,329        732,958  

 

  

03/31/2023

    State Street Bank & Trust Co.      EUR        889,737        USD        972,492        29,783  

 

  

03/31/2023

    State Street Bank & Trust Co.      SEK        66,555,497        USD        6,520,979        153,356  

 

  

03/31/2023

    Toronto Dominion Bank      GBP        15,240,968        USD        18,806,035        463,785  

 

  

04/28/2023

    Toronto Dominion Bank      GBP        13,499,506        USD        16,402,028        147,042  

 

  

Subtotal–Appreciation

                  13,754,825  

 

  

Currency Risk

                  

 

  

03/31/2023

    Bank of America, N.A.      USD        445,159        GBP        359,290        (12,759 ) 

 

  

03/31/2023

    Barclays Bank PLC      USD        15,946,786        GBP        13,167,376        (100,069 ) 

 

  

03/31/2023

    BNP Paribas S.A.      USD        90,282,391        EUR        84,584,690        (661,780 ) 

 

  

03/31/2023

    Canadian Imperial Bank of Commerce      USD        16,212,196        GBP        13,366,882        (125,377 ) 

 

  

03/31/2023

    J.P. Morgan Chase Bank, N.A.      USD        4,841,295        GBP        4,000,000        (27,362 ) 

 

  

03/31/2023

    Morgan Stanley and Co. International PLC      GBP        543,445        USD        653,538        (489 ) 

 

  

03/31/2023

    Morgan Stanley and Co. International PLC      SEK        684,606        USD        64,611        (888 ) 

 

  

03/31/2023

    Morgan Stanley and Co. International PLC      USD        105,157,321        EUR        98,126,334        (1,188,836 ) 

 

  

03/31/2023

    Morgan Stanley and Co. International PLC      USD        6,520,282        SEK        67,240,103        (87,160 ) 

 

  

04/28/2023

    Morgan Stanley and Co. International PLC      USD        9,572,717        EUR        9,000,000        (21,587 ) 

 

  

03/31/2023

    Royal Bank of Canada      USD        90,351,674        EUR        84,584,690        (731,064 ) 

 

  

03/31/2023

    Toronto Dominion Bank      USD        18,201,917        EUR        17,000,000        (189,788 ) 

 

  

03/31/2023

    Toronto Dominion Bank      USD        17,671,693        GBP        14,559,792        (149,226 ) 

 

  

 

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

 

22   Invesco Floating Rate ESG Fund

Open Forward Foreign Currency Contracts-(continued)  
Settlement         Contract to   

Unrealized

Appreciation

  
Date    Counterparty    Deliver    Receive    (Depreciation)  

03/31/2023

    UBS AG    USD      9,433,349    EUR      8,700,000      $    (215,377 ) 

 

  

Subtotal–Depreciation

            (3,511,762 ) 

 

  

Total Forward Foreign Currency Contracts

            $10,243,063  

 

  

Abbreviations:

EUR – Euro

GBP – British Pound Sterling

SEK – Swedish Krona

USD – U.S. Dollar

Portfolio Composition†*

By credit quality, based on total investments

as of February 28, 2023

 

BBB-

      1.87 % 

BB+

      2.03  

BB

      7.77  

BB-

      9.16  

B+

      12.49  

B

      25.53  

B-

      19.86  

CCC+

      6.15  

CCC

      2.48  

CCC-

      0.25  

CC

      0.06  

D

      0.39  

Non-Rated

      10.02  

Equity

      1.94  

 

† Source: Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non- Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard & Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Rating Resources on the homepage.

*

 Excluding money market fund holdings, if any.

 

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

 

23   Invesco Floating Rate ESG Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $3,160,139,878)

    $ 2,935,939,822  

 

  

Investments in affiliates, at value
(Cost $88,786,119)

      90,529,404  

 

  

Other investments:

   

Unrealized appreciation on forward foreign currency contracts outstanding

      13,754,825  

 

  

Cash

      36,472,602  

 

  

Foreign currencies, at value
(Cost $4,666,903)

      4,654,408  

 

  

Receivable for:

   

Investments sold

      139,074,669  

 

  

Fund shares sold

      3,628,142  

 

  

Dividends

      162,971  

 

  

Interest

      27,895,765  

 

  

Investments matured, at value
(Cost $827,937)

      465,901  

 

  

Investment for trustee deferred compensation and retirement plans

      128,150  

 

  

Other assets

      995,403  

 

  

Total assets

      3,253,702,062  

 

  

Liabilities:

   

Other investments:

   

Unrealized depreciation on forward foreign currency contracts outstanding

      3,511,762  

 

  

Payable for:

   

Investments purchased

      155,280,233  

 

  

Dividends

      6,760,010  

 

  

Fund shares reacquired

      6,728,567  

 

  

Accrued fees to affiliates

      992,527  

 

  

Accrued trustees’ and officers’ fees and benefits

      2,671  

 

  

Accrued other operating expenses

      191,720  

 

  

Trustee deferred compensation and retirement plans

      144,143  

 

  

Unfunded loan commitments

      31,706,508  

 

  

Total liabilities

      205,318,141  

 

  

Net assets applicable to shares outstanding

    $ 3,048,383,921  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 3,632,288,812  

 

  

Distributable earnings (loss)

      (583,904,891 ) 

 

  
   $ 3,048,383,921  

 

  

Net Assets:

   

Class A

    $ 662,596,147  

 

  

Class C

    $ 91,140,400  

 

  

Class R

    $ 8,327,382  

 

  

Class Y

    $ 1,817,106,641  

 

  

Class R5

    $ 4,795,750  

 

  

Class R6

    $ 464,417,601  

 

  

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

 

Class A

      98,005,145  

 

  

Class C

      13,539,630  

 

  

Class R

      1,228,982  

 

  

Class Y

      269,121,781  

 

  

Class R5

      709,233  

 

  

Class R6

      68,853,802  

 

  

Class A:

   

Net asset value per share

    $ 6.76  

 

  

Maximum offering price per share
(Net asset value of $6.76 ÷ 97.50%)

   

$

6.93

 

 

  

Class C:

   

Net asset value and offering price per share

    $ 6.73  

 

  

Class R:

   

Net asset value and offering price per share

    $ 6.78  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 6.75  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 6.76  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 6.74  

 

  
 

 

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

 

24   Invesco Floating Rate ESG Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Interest

    $ 151,186,644  

 

  

Dividends

      1,007,491  

 

  

Dividends from affiliated money market funds

      993,088  

 

  

Other income

      38,067  

 

  

Total investment income

      153,225,290  

 

  

Expenses:

   

Advisory fees

      10,686,214  

 

  

Administrative services fees

      280,218  

 

  

Custodian fees

      223,931  

 

  

Distribution fees:

   

Class A

      858,577  

 

  

Class C

      357,875  

 

  

Class R

      20,218  

 

  

Interest, facilities and maintenance fees

      865,623  

 

  

Transfer agent fees – A, C, R & Y

      533,762  

 

  

Transfer agent fees – R5

      1,499,573  

 

  

Transfer agent fees – R6

      75,507  

 

  

Trustees’ and officers’ fees and benefits

      18,250  

 

  

Registration and filing fees

      227,586  

 

  

Reports to shareholders

      66,181  

 

  

Professional services fees

      104,699  

 

  

Other

      18,438  

 

  

Total expenses

      15,836,652  

 

  

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

      (45,730 ) 

 

  

Net expenses

      15,790,922  

 

  

Net investment income

      137,434,368  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (83,083,737 ) 

 

  

Affiliated investment securities

      251,495  

 

  

Foreign currencies

      2,797,878  

 

  

Forward foreign currency contracts

      (15,835,405 ) 

 

  
     (95,869,769 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      39,873,476  

 

  

Affiliated investment securities

      (359,527 ) 

 

  

Foreign currencies

      (2,035,702 ) 

 

  

Forward foreign currency contracts

      2,525,100  

 

  
     40,003,347  

 

  

Net realized and unrealized gain (loss)

      (55,866,422 ) 

 

  

Net increase in net assets resulting from operations

    $ 81,567,946  

 

  

 

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

 

25   Invesco Floating Rate ESG Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

    

February 28,

2023

    

August 31,

2022

  

 

  

Operations:

     

Net investment income

    $ 137,434,368     $ 151,568,184  

 

  

Net realized gain (loss)

      (95,869,769 )      (384,866 ) 

 

  

Change in net unrealized appreciation (depreciation)

      40,003,347       (232,692,546 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      81,567,946       (81,509,228 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (36,998,357 )      (28,321,556 ) 

 

  

Class C

      (4,916,263 )      (3,668,891 ) 

 

  

Class R

      (431,775 )      (289,580 ) 

 

  

Class Y

      (121,083,344 )      (97,163,188 ) 

 

  

Class R5

      (252,752 )      (194,998 ) 

 

  

Class R6

      (28,034,602 )      (21,489,101 ) 

 

  

Total distributions from distributable earnings

      (191,717,093 )      (151,127,314 ) 

 

  

Share transactions–net:

     

Class A

      (69,400,293 )      207,616,713  

 

  

Class C

      (9,914,483 )      18,369,479  

 

  

Class R

      357,407       2,553,640  

 

  

Class Y

      (806,512,002 )      1,620,205,464  

 

  

Class R5

      158,035       1,413,892  

 

  

Class R6

      (69,220,715 )      91,632,941  

 

  

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

      (954,532,051 )      1,941,792,129  

 

  

Net increase (decrease) in net assets

      (1,064,681,198 )      1,709,155,587  

 

  

Net assets:

     

Beginning of period

      4,113,065,119       2,403,909,532  

 

  

End of period

    $ 3,048,383,921     $ 4,113,065,119  

 

  

 

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

 

26   Invesco Floating Rate ESG Fund

Financial Highlights

(Unaudited)

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

 

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

Net gains
(losses)

on securities
(both
realized and
unrealized)

   Total from
investment
operations		   Dividends
from net
investment
income		   Return of
capital		   Total
distributions		   Net asset
value, end
of period		   Total
return (b)		   Net assets,
end of period
(000’s omitted)		  

Ratio of
expenses
to average

net assets
with fee waivers
and/or
expenses
absorbed

   Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed		  

Supplemental

ratio of

expenses

to average

net assets
with fee waivers
(excluding
interest,
facilities and
maintenance
fees)

  

Ratio of net
investment
income

to average
net assets

   Portfolio
turnover (c)

Class A

                                                            

Six months ended 02/28/23

       $6.95          $0.26        $ (0.08 )     $ 0.18        $ (0.37 )       $ –        $ (0.37 )       $ 6.76          2.67 %     $ 662,596          1.09 %(d)(e)       1.09 %(d)(e)       1.04 %(d)       7.60 %(d)       8 %

Year ended 08/31/22

       7.35       0.29       (0.39 )       (0.10 )       (0.30 )       –       (0.30 )       6.95       (1.44 )         751,871       1.04 (e)        1.05 (e)        1.01       4.13       43

Year ended 08/31/21

       6.94       0.25       0.43          0.68       (0.27 )       –       (0.27 )       7.35       9.89       585,690       1.05 (e)        1.05 (e)        1.00       3.45       76

Year ended 08/31/20

       7.40       0.30       (0.40 )       (0.10 )       (0.32 )       (0.04 )       (0.36 )       6.94       (1.33 )       428,277       1.07 (e)        1.08 (e)        1.00       4.33       55

Year ended 08/31/19

       7.57       0.35       (0.17 )       0.18       (0.35 )       –       (0.35 )       7.40       2.50       539,003       1.08 (e)        1.08 (e)        1.03       4.71       55

Year ended 08/31/18

       7.56       0.31       0.02       0.33       (0.32 )       –       (0.32 )       7.57       4.47       585,865       1.07 (e)        1.08 (e)        –       4.15       51

Class C

                                                            

Six months ended 02/28/23

       6.92       0.24       (0.08 )       0.16       (0.35 )       –       (0.35 )       6.73       2.40       91,140       1.59 (d)(e)        1.59 (d)(e)        1.54 (d)        7.10 (d)        8

Year ended 08/31/22

       7.32       0.26       (0.40 )       (0.14 )       (0.26 )       –       (0.26 )       6.92       (1.96 )       103,807       1.54 (e)        1.55 (e)        1.51       3.63       43

Year ended 08/31/21

       6.91       0.21       0.43       0.64       (0.23 )       –       (0.23 )       7.32       9.37       91,555       1.55 (e)        1.55 (e)        1.50       2.95       76

Year ended 08/31/20

       7.37       0.27       (0.41 )       (0.14 )       (0.28 )       (0.04 )       (0.32 )       6.91       (1.84 )       111,318       1.57 (e)        1.58 (e)        1.50       3.83       55

Year ended 08/31/19

       7.53       0.31       (0.16 )       0.15       (0.31 )       –       (0.31 )       7.37       2.12       213,446       1.58 (e)        1.58 (e)        1.53       4.21       55

Year ended 08/31/18

       7.53       0.28       0.00       0.28       (0.28 )       –       (0.28 )       7.53       3.81       387,685       1.57 (e)        1.58 (e)        –       3.65       51

Class R

                                                            

Six months ended 02/28/23

       6.98       0.25       (0.09 )       0.16       (0.36 )       –       (0.36 )       6.78       2.40       8,327       1.34 (d)(e)        1.34 (d)(e)        1.29 (d)        7.35 (d)        8

Year ended 08/31/22

       7.36       0.28       (0.38 )       (0.10 )       (0.28 )       –       (0.28 )       6.98       (1.40 )       8,208       1.29 (e)        1.30 (e)        1.26       3.88       43

Year ended 08/31/21

       6.95       0.23       0.43       0.66       (0.25 )       –       (0.25 )       7.36       9.61       6,076       1.30 (e)        1.30 (e)        1.25       3.20       76

Year ended 08/31/20

       7.41       0.29       (0.41 )       (0.12 )       (0.30 )       (0.04 )       (0.34 )       6.95       (1.57 )       4,874       1.32 (e)        1.33 (e)        1.25       4.08       55

Year ended 08/31/19

       7.58       0.33       (0.16 )       0.17       (0.34 )       –       (0.34 )       7.41       2.25       5,604       1.33 (e)        1.33 (e)        1.28       4.46       55

Year ended 08/31/18

       7.57       0.30       0.01       0.31       (0.30 )       –       (0.30 )       7.58       4.21       5,583       1.32 (e)        1.33 (e)        –       3.90       51

Class Y

                                                            

Six months ended 02/28/23

       6.94       0.27       (0.09 )       0.18       (0.37 )       –       (0.37 )       6.75       2.79       1,817,107       0.84 (d)(e)        0.84 (d)(e)        0.79 (d)        7.86 (d)        8

Year ended 08/31/22

       7.34       0.31       (0.40 )       (0.09 )       (0.31 )       –       (0.31 )       6.94       (1.20 )       2,696,320       0.79 (e)        0.80 (e)        0.76       4.38       43

Year ended 08/31/21

       6.93       0.27       0.42       0.69       (0.28 )       –       (0.28 )       7.34       10.18       1,232,463       0.80 (e)        0.80 (e)        0.75       3.70       76

Year ended 08/31/20

       7.39       0.32       (0.40 )       (0.08 )       (0.34 )       (0.04 )       (0.38 )       6.93       (1.09 )       350,943       0.82 (e)        0.83 (e)        0.75       4.58       55

Year ended 08/31/19

       7.56       0.37       (0.17 )       0.20       (0.37 )       –       (0.37 )       7.39       2.76       592,107       0.83 (e)        0.83 (e)        0.78       4.96       55

Year ended 08/31/18

       7.55       0.33       0.02       0.35       (0.34 )       –       (0.34 )       7.56       4.72       963,386       0.82 (e)        0.83 (e)        –       4.40       51

Class R5

                                                            

Six months ended 02/28/23

       6.95       0.27       (0.08 )       0.19       (0.38 )       –       (0.38 )       6.76       2.81       4,796       0.81 (d)(e)        0.81 (d)(e)        0.76 (d)        7.89 (d)        8

Year ended 08/31/22

       7.35       0.31       (0.39 )       (0.08 )       (0.32 )       –       (0.32 )       6.95       (1.18 )       4,762       0.77 (e)        0.78 (e)        0.74       4.40       43

Year ended 08/31/21

       6.94       0.27       0.43       0.70       (0.29 )       –       (0.29 )       7.35       10.23       3,631       0.77 (e)        0.77 (e)        0.72       3.73       76

Year ended 08/31/20

       7.41       0.32       (0.41 )       (0.09 )       (0.34 )       (0.04 )       (0.38 )       6.94       (1.21 )       5,515       0.81 (e)        0.82 (e)        0.74       4.59       55

Year ended 08/31/19

       7.58       0.37       (0.16 )       0.21       (0.38 )       –       (0.38 )       7.41       2.80       5,672       0.83 (e)        0.83 (e)        0.78       4.96       55

Year ended 08/31/18

       7.57       0.33       0.02       0.35       (0.34 )       –       (0.34 )       7.58       4.73       4,696       0.81 (e)        0.82 (e)        –       4.41       51

Class R6

                                                            

Six months ended 02/28/23

       6.93       0.27       (0.08 )       0.19       (0.38 )       –       (0.38 )       6.74       2.84       464,418       0.74 (d)(e)        0.74 (d)(e)        0.69 (d)        7.96 (d)        8

Year ended 08/31/22

       7.33       0.32       (0.40 )       (0.08 )       (0.32 )       –       (0.32 )       6.93       (1.13 )       548,097       0.70 (e)        0.71 (e)        0.67       4.47       43

Year ended 08/31/21

       6.93       0.27       0.42       0.69       (0.29 )       –       (0.29 )       7.33       10.10       484,494       0.73 (e)        0.73 (e)        0.68       3.77       76

Year ended 08/31/20

       7.39       0.33       (0.41 )       (0.08 )       (0.34 )       (0.04 )       (0.38 )       6.93       (0.99 )       652,453       0.71 (e)        0.72 (e)        0.64       4.69       55

Year ended 08/31/19

       7.56       0.38       (0.17 )       0.21       (0.38 )       –       (0.38 )       7.39       2.86       812,446       0.74 (e)        0.74 (e)        0.69       5.05       55

Year ended 08/31/18

       7.55       0.34       0.02       0.36       (0.35 )       –       (0.35 )       7.56       4.83       614,302       0.73 (e)        0.74 (e)        –       4.49       51

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

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

(d) 

Annualized.

(e) 

Ratio includes line of credit expense of 0.05%, 0.03%, 0.05%, 0.07%, 0.05%, 0.05% and 0.05% for the six months ended February 28, 2023 and for the years ended August 31, 2022, 2021, 2020, 2019 and 2018, respectively.

 

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

 

27   Invesco Floating Rate ESG Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

    The Fund’s investment objective is total return, comprised of current income and capital appreciation.

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

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

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

A.

Security Valuations – Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 (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 daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and the asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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, if available, 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, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or

 

28   Invesco Floating Rate ESG Fund

other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Facility fees received may be amortized over the life of the loan. 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.

Other income is comprised primarily of amendment fees which are recorded when received. Amendment fees are received in return for changes in the terms of the loan or note.

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

The Fund allocates 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

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

E.

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

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

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

F.

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

G.

Interest, Facilities and Maintenance Fees – Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses and other expenses associated with establishing and maintaining the line of credit.

H.

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

I.

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

J.

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.

K.

Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases

 

29   Invesco Floating Rate ESG Fund

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

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

L.

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

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

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

M.

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

N.

Bank Loan Risk – 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, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. 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 seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

O.

LIBOR Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. Although the publication of most LIBOR rates ceased at the end of 2021, a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly transition away from these rates.

There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.

P.

Leverage Risk – The Fund may utilize leverage to seek to enhance the yield of the Fund by borrowing. There are risks associated with borrowing in an effort to increase the yield and distributions on the common shares, including that the costs of the financial leverage may exceed the income from investments purchased with such leverage proceeds, the higher volatility of the net asset value of the shares, and that fluctuations in the interest rates on the borrowing may affect the yield and distributions to the common shareholders. There can be no assurance that the Fund’s leverage strategy will be successful.

Q.

Other Risks – The Fund may invest all or substantially all of its assets in senior secured floating rate loans and senior secured debt securities that are determined to be 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”.

Because the Fund evaluates environmental, social and governance (“ESG”) factors to assess and exclude certain investments for non-financial reasons, it may forego some market opportunities available to funds that do not use these factors. The securities of companies that score favorably under the Fund’s ESG scoring methodology may underperform similar companies that do not score as well or may underperform the stock market as a whole. As a result, the Fund may underperform funds that do not screen or score companies based on ESG factors or funds that use a different ESG methodology. Information used by the Fund to evaluate such factors may not be readily available, complete or accurate, which could negatively impact the Fund’s ability to apply its methodology, which in turn could negatively impact the Fund’s performance. In addition, the Fund’s assessment of an issuer, based on the issuer’s level of involvement in a particular industry or the issuer’s ESG score, may differ from that of other funds or an investor. As a result, the issuers deemed eligible for inclusion in the Fund’s portfolio may not reflect the beliefs or values of any particular investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them.

 

30   Invesco Floating Rate ESG Fund

Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.

Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.

R.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $ 500 million

      0.650%  

 

  

Next $4.5 billion

      0.600%  

 

  

Next $5 billion

      0.575%  

 

  

Over $10 billion

      0.550%  

 

  

    For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.61%.

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

    The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.50%, 2.00%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.

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

    For the six months ended February 28, 2023, the Adviser waived advisory fees of $42,468.

    The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Fund, SSB also serves as the funds’s custodian.

    The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

    The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 0.75% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

    Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $8,493 in front-end sales commissions from the sale of Class A shares and $123,061 and $11,345 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

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

 

31   Invesco Floating Rate ESG Fund

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

    The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1        Level 2      Level 3        Total  

 

  

Investments in Securities

                

 

  

Variable Rate Senior Loan Interests

    $ –        $ 2,386,549,030      $ 305,587,244        $ 2,692,136,274  

 

  

Non-U.S. Dollar Denominated Bonds & Notes

      –          100,471,141        –          100,471,141  

 

  

U.S. Dollar Denominated Bonds & Notes

      –          84,702,003        644,442          85,346,445  

 

  

Common Stocks & Other Equity Interests

      5,051,934          1,653,719        41,849,140          48,554,793  

 

  

Municipal Obligations

      –          11,003,204        –          11,003,204  

 

  

Preferred Stocks

      –          7,173,650        1,131,616          8,305,266  

 

  

Asset-Backed Securities

      –          940,714        –          940,714  

 

  

Money Market Funds

      79,711,389          –        –          79,711,389  

 

  

Total Investments in Securities

      84,763,323          2,592,493,461        349,212,442          3,026,469,226  

 

  

Other Investments - Assets*

                

 

  

Investments Matured

      –          365,453        100,448          465,901  

 

  

Forward Foreign Currency Contracts

      –          13,754,825        –          13,754,825  

 

  
     –          14,120,278        100,448          14,220,726  

 

  

Other Investments - Liabilities*

                

 

  

Forward Foreign Currency Contracts

      –          (3,511,762 )       –          (3,511,762 ) 

 

  

Total Other Investments

      –          10,608,516        100,448          10,708,964  

 

  

Total Investments

    $ 84,763,323        $ 2,603,101,977      $ 349,312,890        $ 3,037,178,190  

 

  

*   Forward foreign currency contracts are valued at unrealized appreciation (depreciation). Investments matured are shown at value.

    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) during the six months ended February 28, 2023:

 

    Value
08/31/22		     Purchases
at Cost		     Proceeds
from Sales		     Accrued
Discounts/
Premiums		    

Realized
Gain

(Loss)

     Change in
Unrealized
Appreciation
(Depreciation)		    

Transfers
into

Level 3*

    

Transfers

out of

Level 3*

     Value
02/28/23		  

 

  
Variable Rate Senior Loan Interests   $ 345,876,044     $ 61,979,227     $ (45,411,805 )    $ 1,270,213     $ (4,186,545 )    $ (8,635,228 )    $ 71,167,554     $ (116,472,216 )    $ 305,587,244  

 

  
Common Stocks & Other Equity Interests     15,214,065       –       (690,061 )      –       (2,326,346 )      13,716,055       16,805,888       (870,461 )      41,849,140  

 

  
Preferred Stocks     1,116,489       –       –       –       –       (507,864 )      522,991       –       1,131,616  

 

  
U.S. Dollar Denominated Bonds & Notes     1,056,220       –       (443,067 )      –       –       31,289       –       –       644,442  

 

  
Investments Matured     100,448       –       –       –       –       –       –       –       100,448  

 

  

Total

   $ 363,363,266     $ 61,979,227     $ (46,544,933 )    $ 1,270,213     $ (6,512,891 )    $ 4,604,252     $ 88,496,433     $ (117,342,677 )    $ 349,312,890  

 

  

*Transfers into and out of level 3 are due to increases or decreases in market activity impacting the available market inputs to determine the price.

    Securities determined to be Level 3 at the end of the reporting period were valued primarily by utilizing evaluated prices from a third-party vendor pricing service. A significant change in third-party pricing information could result in a lower or higher value in Level 3 investments.

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

 

32   Invesco Floating Rate ESG Fund

    For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  
Derivative Assets    Currency
Risk		  

 

  

Unrealized appreciation on forward foreign currency contracts outstanding

      $13,754,825  

 

  

Derivatives not subject to master netting agreements

      -  

 

  

Total Derivative Assets subject to master netting agreements

      $13,754,825  

 

  
     Value  
Derivative Liabilities    Currency
Risk		  

 

  

Unrealized depreciation on forward foreign currency contracts outstanding

      $ (3,511,762 ) 

 

  

Derivatives not subject to master netting agreements

      -  

 

  

Total Derivative Liabilities subject to master netting agreements

      $ (3,511,762 ) 

 

  

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2023.

 

     Financial
Derivative
Assets 		  Financial
Derivative
Liabilities 		      Collateral
(Received)/Pledged		     
Counterparty    Forward Foreign
Currency Contracts		   Forward Foreign
Currency Contracts		   Net Value of
Derivatives		   Non-Cash    Cash   

Net

Amount

 

  

Bank of America, N.A.

      $               –          $     (12,759 )        $      (12,759 )    $–    $–      $      (12,759 ) 

 

  

Barclays Bank PLC

      215,632       (100,069 )      115,563       –      –      115,563  

 

  

BNP Paribas S.A.

      4,218,080       (661,780 )      3,556,300       –      –      3,556,300  

 

  

Canadian Imperial Bank of Commerce

      127,550       (125,377 )      2,173       –      –      2,173  

 

  

J.P. Morgan Chase Bank, N.A.

      –       (27,362 )      (27,362 )      –      –      (27,362 ) 

 

  

Morgan Stanley and Co. International PLC

      4,062,725       (1,298,960 )      2,763,765       –      –      2,763,765  

 

  

Royal Bank of Canada

      4,336,872       (731,064 )      3,605,808       –      –      3,605,808  

 

  

State Street Bank & Trust Co.

      183,139       –       183,139       –      –      183,139  

 

  

Toronto Dominion Bank

      610,827       (339,014 )      271,813       –      –      271,813  

 

  

UBS AG

      –       (215,377 )      (215,377 )      –      –      (215,377 ) 

 

  

Total

      $13,754,825     $ (3,511,762 )      $10,243,063     $–    $–      $10,243,063  

 

  

Effect of Derivative Investments for the six months ended February 28, 2023

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

 

     Location of Gain (Loss) on  
     Statement of Operations  
     Currency  
     Risk  

 

  

Realized Gain (Loss):

   

Forward foreign currency contracts

      $(15,835,405)  

 

  

Change in Net Unrealized Appreciation:

   

Forward foreign currency contracts

           2,525,100  

 

  

Total

      $(13,310,305)  

 

  

The table below summarizes the average notional value of derivatives held during the period.

 

     Forward
Foreign Currency
Contracts

 

Average notional value

    $1,085,595,286

 

 

33   Invesco Floating Rate ESG Fund

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $3,262.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

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

NOTE 7–Cash Balances and Borrowings

Effective February 17, 2023, the Fund has entered into a credit agreement, which enables the Fund to participate with certain other Invesco Funds in a committed secured borrowing facility that permits borrowings up to $1.07 billion, collectively by certain Invesco Funds, and which will expire on February 16, 2024. Prior to February 17, 2023, the credit agreement permitted borrowings up to $1.1 billion. The credit agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the credit agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the credit agreement. During the six months ended February 28, 2023, the Fund did not borrow under this agreement.

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

NOTE 8–Unfunded Loan Commitments

Pursuant to the terms of certain Senior Loan agreements, the Fund held the following unfunded loan commitments as of February 28, 2023. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid Senior Loans as a reserve. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

 

Borrower    Type    Unfunded Loan
Commitment		    Unrealized
Appreciation
(Depreciation)		  

 

  

athenahealth Group, Inc.

   

Delayed Draw Term Loan

      $     767,336        $     (55,314 ) 

 

  

Avaya, Inc.

   

DIP Term Loan

      1,030,004        74,942  

 

  

Crown Finance US, Inc.

   

Revolver Loan

      266        (266 ) 

 

  

Dun & Bradstreet Corp. (The)

   

Revolver Loan

      7,298,711        443,073  

 

  

Financiere Pax S.A.S.

   

Revolver Loan

      782,190        (88,092 ) 

 

  

Groundworks LLC

   

Delayed Draw Term Loan

      2,155,983        19,455  

 

  

Groundworks LLC

   

Term Loan

      1,028,382        0  

 

  

Groundworks LLC

   

Term Loan

      329,082        0  

 

  

McDermott International Ltd.

   

LOC

      6,610,320        (1,222,910 ) 

 

  

Parques Reunidos (Piolin Bidco s.a.u)

   

Revolver Loan

      3,697,707        (401,036 ) 

 

  

Royal Caribbean Cruises

   

Revolver Loan

      1,185,439        1,262  

 

  

Royal Caribbean Cruises

   

Revolver Loan

      420,370        12,154  

 

  

Summer (BC) Holdco B S.a r.l

   

Revolver Loan

      2,844,295        (41,386 ) 

 

  

Tank Holding Corp.

   

Revolver Loan

      1,309,368        (70,571 ) 

 

  

Vertellus

   

Revolver Loan

      2,247,055        (102,447 ) 

 

  
     $31,706,508        $(1,431,136 ) 

 

  

NOTE 9–Tax Information

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

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

    The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

Capital Loss Carryforward*  

 

  
Expiration    Short-Term            Long-Term            Total  

 

  

Not subject to expiration

    $ 51,583,421            $ 213,056,633            $ 264,640,054  

 

  

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

 

34   Invesco Floating Rate ESG Fund

NOTE 10–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $287,581,245 and $1,333,839,854, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $   60,708,125  

 

  

Aggregate unrealized (depreciation) of investments

      (285,282,860 ) 

 

  

Net unrealized appreciation (depreciation) of investments

      $(224,574,735 ) 

 

  

Cost of investments for tax purposes is $3,261,752,925.

NOTE 11–Senior Loan Participation 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 six months ended February 28, 2023, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.

 

     Principal           
Selling Participant    Amount        Value  

 

  

Bank of America, N.A.

    $ 13,501,918        $ 13,049,316  

 

  

Barclays Bank PLC

      6,610,320          5,486,565  

 

  

Credit Agricole CIB

      1,073,593          891,082  

 

  

JPMorgan Europe Ltd.

      10,172,286          5,974,805  

 

  

Wilmington Trust, N.A.

      4,000,000          3,770,000  

 

  

NOTE 12–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      12,018,285     $ 81,408,445       53,806,876     $ 387,856,612  

 

  

Class C

      824,485       5,566,392       6,948,299       49,959,940  

 

  

Class R

      115,321       783,192       536,545       3,881,149  

 

  

Class Y

      76,669,994       519,231,104       430,648,422       3,099,562,405  

 

  

Class R5

      80,937       546,797       652,369       4,698,358  

 

  

Class R6

      6,626,406       44,843,224       50,599,877       362,639,249  

 

  

Issued as reinvestment of dividends:

         

Class A

      4,054,880       27,260,728       3,020,974       21,539,938  

 

  

Class C

      529,208       3,540,824       380,030       2,699,266  

 

  

Class R

      60,858       409,702       38,524       275,229  

 

  

Class Y

      11,028,763       74,042,449       8,844,830       62,703,237  

 

  

Class R5

      37,529       252,308       26,995       192,334  

 

  

Class R6

      3,523,083       23,618,651       2,573,797       18,301,216  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      640,454       4,342,518       1,874,761       13,434,555  

 

  

Class C

      (643,300 )      (4,342,518 )      (1,882,813 )      (13,434,555 ) 

 

  

Reacquired:

         

Class A

      (26,920,570 )      (182,411,984 )      (30,193,647 )      (215,214,392 ) 

 

  

Class C

      (2,177,007 )      (14,679,181 )      (2,953,953 )      (20,855,172 ) 

 

  

Class R

      (123,351 )      (835,487 )      (223,938 )      (1,602,738 ) 

 

  

Class Y

      (207,172,665 )      (1,399,785,555 )      (218,819,763 )      (1,542,060,178 ) 

 

  

Class R5

      (94,538 )      (641,070 )      (488,219 )      (3,476,800 ) 

 

  

Class R6

      (20,369,650 )      (137,682,590 )      (40,172,816 )      (289,307,524 ) 

 

  

Net increase (decrease) in share activity

      (141,290,878 )    $ (954,532,051 )      265,217,150     $ 1,941,792,129  

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 62% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

35   Invesco Floating Rate ESG Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

          ACTUAL  

HYPOTHETICAL

(5% annual return before

expenses)

     
    

Beginning

    Account Value    

(09/01/22)

  

Ending

    Account Value    

(02/28/23)1

  

Expenses

      Paid During      

Period2

  

Ending

    Account Value    

(02/28/23)

  

Expenses

      Paid During      

Period2

  

      Annualized      

Expense

Ratio

Class A    

   $1,000.00   $1,026.70   $5.48   $1,019.39   $5.46   1.09%

Class C    

     1,000.00     1,024.00     7.98     1,016.91     7.95   1.59   

Class R    

     1,000.00     1,025.50     6.73     1,018.15     6.71   1.34   

Class Y    

     1,000.00     1,027.90     4.22     1,020.63     4.21   0.84   

Class R5    

     1,000.00     1,028.10     4.07     1,020.78     4.06   0.81   

Class R6    

     1,000.00     1,028.40     3.72     1,021.12     3.71   0.74   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

36   Invesco Floating Rate ESG Fund

 

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074                   Invesco Distributors, Inc.    FLR-SAR-1                                         

LOGO

 

   
Semiannual Report to Shareholders   February 28, 2023

Invesco Global Real Estate Income Fund

Nasdaq:

A: ASRAX ∎ C: ASRCX ∎ Y: ASRYX ∎ R5: ASRIX ∎ R6: ASRFX

 

    

2   Fund Performance
4   Schedule of Investments
8   Financial Statements
11   Financial Highlights
12   Notes to Financial Statements
18   Fund Expenses

 

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

 

Fund Performance

 

    

 

Performance summary

 

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     -0.89 % 

Class C Shares

     -1.27  

Class Y Shares

     -0.88  

Class R5 Shares

     -0.72  

Class R6 Shares

     -0.80  

MSCI World Index▼ (Broad Market Index)

     4.04  

Custom Invesco Global Real Estate Income Index∎ (Style-Specific Index)

     -2.52  

Lipper Global Real Estate Funds Classification Average◆ (Peer Group)

     -2.70  

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

 

The MSCI World Index is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

 

    The Custom Invesco Global Real Estate Income Index is composed of FTSE NAREIT All Equity REIT Index through August 31, 2011, and FTSE EPRA/NAREIT Developed Index, which is computed using the net return by withholding applicable taxes, thereafter. The FTSE NAREIT All Equity REIT Index is considered representative of US REITs. The FTSE EPRA/NAREIT Developed Index is considered representative of global real estate companies and REITs.

 

    The Lipper Global Real Estate Funds Classification Average represents an average of all funds in the Lipper Global Real Estate Funds classification.

 

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

 

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

 

 

 

For more information about your Fund

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

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

    

 

 

2   Invesco Global Real Estate Income Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (5/31/02)

     6.45 % 

10 Years

     2.48  

  5 Years

     1.22  

  1 Year

     -14.58  

Class C Shares

        

Inception (3/9/07)

     2.66 % 

10 Years

     2.45  

  5 Years

     1.62  

  1 Year

     -11.09  

Class Y Shares

        

Inception (10/3/08)

     5.60 % 

10 Years

     3.31  

  5 Years

     2.64  

  1 Year

     -9.39  

Class R5 Shares

        

Inception (3/9/07)

     3.42 % 

10 Years

     3.39  

  5 Years

     2.69  

  1 Year

     -9.41  

Class R6 Shares

        

Inception (9/24/12)

     3.87 % 

10 Years

     3.49  

  5 Years

     2.80  

  1 Year

     -9.24  

On March 12, 2007, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown prior to that date is that of the Closed-End Fund’s Common shares and includes the fees applicable to Common shares.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions (reinvested at net asset value, except for periods prior to March 12, 2007 where reinvestments were made at the lower of the Closed-End Fund’s net asset value or market price), changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

    Fund performance was positively impacted by a temporary 2% fee on redemptions that was in effect from March 12, 2007 to March 12, 2008. Without income from this temporary fee, returns would have been lower.

    

 

 

3   Invesco Global Real Estate Income Fund

Schedule of Investments

February 28, 2023

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests-65.21%

 

Australia-2.11%

      

Dexus

      2,309,290      $   13,079,460  

 

  

Belgium-0.68%

      

Cofinimmo S.A.

      46,047        4,256,664  

 

  

Canada-1.60%

      

Allied Properties REIT

      192,800        4,043,926  

 

  

Chartwell Retirement Residences

      877,303        5,921,554  

 

  
        9,965,480  

 

  

Germany-6.05%

      

Aroundtown S.A.

      3,657,037        9,481,839  

 

  

LEG Immobilien SE

      159,562        11,598,240  

 

  

Sirius Real Estate Ltd.

      1,177,752        1,187,069  

 

  

Vonovia SE

      606,152        15,290,200  

 

  
        37,557,348  

 

  

Hong Kong-4.41%

      

Hang Lung Properties Ltd.

      5,404,000        10,423,423  

 

  

Link Real Estate Investment Trust, Rts., expiring 03/21/2023(a)

      207,120        195,262  

 

  

Link REIT

      1,035,600        6,804,515  

 

  

Sun Hung Kai Properties Ltd.

      730,000        9,966,918  

 

  
        27,390,118  

 

  

Japan-8.13%

      

GLP J-Reit

      7,323        7,701,204  

 

  

Japan Prime Realty Investment Corp.

      2,385        6,297,007  

 

  

Mitsui Fudosan Co. Ltd.

      978,100        18,639,919  

 

  

Mitsui Fudosan Logistics Park, Inc.

      1,085        3,615,474  

 

  

Tokyu Fudosan Holdings Corp.

      2,955,600        14,238,973  

 

  
        50,492,577  

 

  

United Kingdom-2.88%

      

Big Yellow Group PLC

      232,550        3,379,884  

 

  

Segro PLC

      1,222,674        12,071,105  

 

  

Tritax Big Box REIT PLC

      1,374,708        2,470,535  

 

  
        17,921,524  

 

  

United States-39.35%

      

Alexandria Real Estate Equities, Inc.

      27,702        4,149,206  

 

  

American Homes 4 Rent, Class A

      227,157        7,046,410  

 

  

American Tower Corp.

      31,060        6,150,191  

 

  

AvalonBay Communities, Inc.

      66,333        11,443,769  

 

  

Camden Property Trust

      25,402        2,915,133  

 

  

Crown Castle, Inc.

      39,903        5,217,317  

 

  

CubeSmart

      283,494        13,321,383  

 

  

Digital Realty Trust, Inc.(b)

      203,151        21,174,429  

 

  

Equinix, Inc.

      12,404        8,537,301  

 

  

Gaming and Leisure Properties, Inc.

      125,168        6,744,052  

 

  

Hilton Worldwide Holdings, Inc.

      20,174        2,915,345  

 

  

Invitation Homes, Inc.

      240,144        7,506,901  

 

  

Life Storage, Inc.

      177,273        21,364,942  

 

  

Prologis, Inc.

      310,662        38,335,691  

 

  

Public Storage

      26,424        7,899,455  

 

  
     Shares      Value  

 

  

United States-(continued)

      

Realty Income Corp.

      96,484      $ 6,170,152  

 

  

Sun Communities, Inc.

      102,310        14,644,653  

 

  

Terreno Realty Corp.

      53,945        3,355,918  

 

  

UDR, Inc.

      484,152        20,741,072  

 

  

Ventas, Inc.

      73,836        3,592,121  

 

  

VICI Properties, Inc.

      461,134        15,461,823  

 

  

Welltower, Inc.

      212,215        15,729,376  

 

  
        244,416,640  

 

  

Total Common Stocks & Other Equity Interests
(Cost $383,483,932)

 

      405,079,811  

 

  
     Principal
Amount		         

Asset-Backed Securities-17.24%

 

BX 2021-MFM1, Series 2021-MFM1, Class E, 6.93% (1 mo. Term SOFR + 2.36%), 01/15/2034(c)(d)

    $ 9,494,575        9,229,092  

 

  

BX Commercial Mortgage Trust,

      

Series 2021-VOLT, Class D, 6.24% (1 mo. USD LIBOR + 1.65%), 09/15/2023(c)(d)

      6,000,000        5,800,420  

 

  

Series 2021-VOLT, Class E, 6.59% (1 mo. USD LIBOR + 2.00%), 09/15/2036(c)(d)

      395,000        380,340  

 

  

CEDR Commercial Mortgage Trust, Series 2022-SNAI, Class E, 7.58% (1 mo. Term SOFR + 3.02%), 02/15/2039(c)(d)

      500,000        434,440  

 

  

CFK Trust, Series 2019-FAX, Class E, 4.64%, 01/15/2039(c)(e)

      1,000,000        826,080  

 

  

Citigroup Commercial Mortgage Trust,

      

Series 2019-SMRT, Class E, 4.74%, 01/10/2036(c)(e)

      2,649,000        2,563,164  

 

  

Series 2020-420K, Class E, 3.31%, 11/10/2042(c)(e)

      4,586,000        3,355,872  

 

  

Series 2020-555, Class F, 3.50%, 12/10/2041(c)(e)

      800,000        578,242  

 

  

Series 2019-SMRT, Class D, 4.74%, 01/10/2036(c)(e)

      260,000        253,175  

 

  

Series 2020-420K, Class D, 3.31%, 11/10/2042(c)(e)

      1,000,000        752,484  

 

  

Commercial Mortgage Trust,

      

Series 2019-GC44, Class 180B, 3.40%, 08/15/2057(c)(e)

      1,500,000        1,314,982  

 

  

Series 2020-SBX, Class D, 2.32%, 01/10/2038(c)(e)

      6,200,000        5,358,057  

 

  

Series 2019-GC44, Class 180C, 3.40%, 08/15/2057(c)(e)

      5,500,000        4,627,386  

 

  

Series 2017-PANW, Class E, 3.81%, 10/10/2029(c)(e)

      182,000        161,166  

 

  

Series 2017-PANW, Class D, 3.93%, 10/10/2029(c)(e)

      580,000        530,860  

 

  

Credit Suisse Mortgage Capital Trust, Series 2021-BHAR, Class E, 8.09% (1 mo. USD LIBOR + 3.50%), 11/15/2038(c)(d)

      2,750,000        2,638,472  

 

  

CSMC, Series 2021-BHAR, Class C, 6.59% (1 mo. USD LIBOR + 2.00%), 11/15/2038(c)(d)

      170,000        164,032  

 

  
 

 

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

 

4   Invesco Global Real Estate Income Fund

     Principal
Amount		      Value  

 

  

GS Mortgage Securities Corp. Trust, Series 2022-GTWY, Class A, 7.96% (1 mo. Term SOFR + 3.40%), 08/15/2039(c)(d)

    $ 10,050,000      $ 10,240,506  

 

  

Hilton USA Trust, Series 2016-HHV, Class E, 4.19%, 11/05/2038(c)(e)

      1,761,000        1,563,070  

 

  

Independence Plaza Trust, Series 2018-INDP, Class E, 5.00%, 07/10/2035(c)

      7,000,000        6,524,043  

 

  

JP Morgan Chase Commercial Mortgage Securities Trust,

      

Series 2019-UES, Class F, 4.45%, 05/05/2032(c)(e)

      558,000        514,940  

 

  

Series 2019-UES, Class B, 4.14%, 05/05/2032(c)

      401,000        386,656  

 

  

Series 2019-UES, Class C, 4.34%, 05/05/2032(c)

      116,000        108,933  

 

  

Series 2019-UES, Class D, 4.45%, 05/05/2032(c)(e)

      119,000        110,619  

 

  

Series 2019-UES, Class E, 4.45%, 05/05/2032(c)(e)

      138,000        127,434  

 

  

Series 2019-UES, Class G, 4.45%, 05/05/2032(c)(e)

      158,000        144,281  

 

  

Morgan Stanley Capital I Trust, Series 2018-SUN, Class F, 7.14% (1 mo. USD LIBOR + 2.55%), 07/15/2035(c)(d)

      11,306,000          11,127,694  

 

  

MSCG Trust, Series 2018-SELF, Class E, 6.74% (1 mo. USD LIBOR + 2.15%), 10/15/2037(c)(d)

      3,808,103        3,702,368  

 

  

Natixis Commercial Mortgage Securities Trust,

      

Series 2020-2PAC, Class AMZ3, 3.50%, 01/15/2037(c)(e)

      5,326,000        4,524,874  

 

  

Series 2020-2PAC, Class AMZ2, 3.50%, 01/15/2037(c)(e)

      800,000        694,528  

 

  

One Market Plaza Trust, Series 2017-1MKT, Class E, 4.14%, 02/10/2032(c)

      5,040,000        4,349,655  

 

  

SG Commercial Mortgage Securities Trust, Series 2019-PREZ, Class E, 3.48%, 09/15/2039(c)(e)

      6,157,000        4,620,706  

 

  

STWD Trust,

      

Series 2021-FLWR, Class E, 6.51% (1 mo. USD LIBOR + 1.92%), 07/15/2036(c)(d)

      4,950,000        4,762,686  

 

  

Series 2021-FLWR, Class F, 7.26% (1 mo. USD LIBOR + 2.67%), 07/15/2036(c)(d)

      3,400,000        3,264,562  

 

  

Prima Capital CRE Securitization Ltd., Series 2019-RK1, Class BT, 4.45%, 04/15/2038(c)

      14,154,000        11,384,425  

 

  

Total Asset-Backed Securities
(Cost $111,299,741)

 

      107,120,244  

 

  
     Shares         

Preferred Stocks-9.75%

      

United States-9.75%

      

American Homes 4 Rent, 5.88%, Series G, Pfd.

      84,200        1,990,488  

 

  

American Homes 4 Rent, 6.25%, Series H, Pfd.

      200,100        4,976,487  

 

  

DiamondRock Hospitality Co., 8.25%, Pfd.

      168,578        4,322,340  

 

  

Digital Realty Trust, Inc., 5.20%, Series L, Pfd.

      121,800        2,722,230  

 

  

Eagle Hospitality Properties Trust, Inc., 8.25%, Series A, Pfd.(f)

      195,800        0  

 

  
    

    

Shares

      Value  

 

  

United States-(continued)

      

National Storage Affiliates Trust, 6.00%, Series A, Pfd.

      243,300      $ 5,719,983  

 

  

Pebblebrook Hotel Trust, 6.38%, Series E, Pfd.

      223,861        4,698,843  

 

  

Pebblebrook Hotel Trust, 6.30%, Series F, Pfd.

      173,676        3,603,777  

 

  

Public Storage, 5.15%, Series F, Pfd.

      14,600        340,764  

 

  

Rexford Industrial Realty, Inc., 5.63%, Series C, Pfd.

      100,500        2,363,760  

 

  

RLJ Lodging Trust, 1.95%, Series A, Conv. Pfd.

      192,400        4,781,140  

 

  

Saul Centers, Inc., 6.13%, Series D, Pfd.

      2,347        51,634  

 

  

SITE Centers Corp., 6.38%, Series A, Pfd.

      214,100        5,273,283  

 

  

UMH Properties, Inc., 6.38%, Series D, Pfd.

      566,800        12,815,348  

 

  

Vornado Realty Trust, 5.40%, Series L, Pfd.

      213,400        3,647,006  

 

  

Vornado Realty Trust, 5.25%, Series M, Pfd.

      200,000        3,238,000  

 

  

Total Preferred Stocks (Cost $69,503,358)

 

        60,545,083  

 

  
     Principal
Amount		         

U.S. Dollar Denominated Bonds & Notes-4.76%

 

United States-4.76%

      

Hilton Domestic Operating Co., Inc., 4.88%, 01/15/2030

    $ 3,000,000        2,755,350  

 

  

Outfront Media Capital LLC/Outfront Media Capital Corp., 6.25%, 06/15/2025(c)

      5,438,000        5,397,713  

 

  

RLJ Lodging Trust L.P., 3.75%, 07/01/2026(c)

      4,000,000        3,623,190  

 

  

SBA Communications Corp.,

      

3.88%, 02/15/2027

      2,000,000        1,811,787  

 

  

3.13%, 02/01/2029

      9,698,000        8,016,367  

 

  

VICI Properties L.P./VICI Note Co., Inc.,

      

3.50%, 02/15/2025(c)

      4,000,000        3,782,152  

 

  

4.25%, 12/01/2026(c)

      1,500,000        1,392,495  

 

  

4.50%, 01/15/2028(c)

      3,000,000        2,760,700  

 

  

Total U.S. Dollar Denominated Bonds & Notes
(Cost $29,857,753)

         29,539,754  

 

  

Municipal Obligations-1.18%

 

United States-1.18%

      

New York City Housing Development Corp., Series 2014, RB, 3.71%, 02/15/2048
(Cost $7,333,747)

      7,735,000        7,345,438  

 

  
     Shares         

Money Market Funds-2.12%

      

Invesco Government & Agency Portfolio, Institutional Class,
4.51%(g)(h)

      4,615,922        4,615,922  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(g)(h)

      3,296,020        3,296,679  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(g)(h)

      5,275,339        5,275,339  

 

  

Total Money Market Funds (Cost $13,187,940)

 

      13,187,940  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-100.26% (Cost $614,666,471)

         622,818,270  

 

  
 

 

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

 

5   Invesco Global Real Estate Income Fund

     Shares      Value  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-1.85%

      

Invesco Private Government Fund, 4.58%(g)(h)(i)

      3,208,028      $ 3,208,028  

 

  

Invesco Private Prime Fund,
4.83%(g)(h)(i)

      8,247,564        8,249,213  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $11,457,754)

 

      11,457,241  

 

  

TOTAL INVESTMENTS IN SECURITIES-102.11%
(Cost $626,124,225)

 

      634,275,511  

 

  

OTHER ASSETS LESS LIABILITIES-(2.11)%

 

      (13,085,293 ) 

 

  

NET ASSETS-100.00%

       $ 621,190,218  

 

  

    

 

Investment Abbreviations:

Conv.   - Convertible
LIBOR   - London Interbank Offered Rate
Pfd.   - Preferred
RB   - Revenue Bonds
REIT   - Real Estate Investment Trust
Rts.   - Rights
SOFR   - Secured Overnight Financing Rate
USD   - U.S. Dollar

Notes to Schedule of Investments:

 

(a) 

Non-income producing security.

(b)

All or a portion of this security was out on loan at February 28, 2023.

(c)

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 February 28, 2023 was $124,076,494, which represented 19.97% of the Fund’s Net Assets.

(d)

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2023.

(e)

Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on February 28, 2023.

(f)

Security valued using significant unobservable inputs (Level 3). See Note 3.

(g) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

      Value
August 31, 2022		     

Purchases

at Cost

     

Proceeds

from Sales

      Change in
Unrealized
Appreciation
(Depreciation)		      Realized
Gain		    

Value

February 28, 2023

      Dividend
Income		  
Investments in Affiliated Money Market Funds:                                                              

Invesco Government & Agency Portfolio, Institutional Class

      $ 10,896,330        $ 39,548,284      $ (45,828,692)          $ -              $ -             $ 4,615,922            $111,884    

Invesco Liquid Assets Portfolio, Institutional Class

      9,014,912          28,248,774        (33,966,461)        (4,084)           3,538           3,296,679            92,260    

Invesco Treasury Portfolio, Institutional Class

      12,452,949          45,198,039        (52,375,649)        -            -           5,275,339            128,811    
Investments Purchased with Cash Collateral from Securities on Loan:                                                              

Invesco Private Government Fund

      4,515,288          49,405,864        (50,713,124)        -            -           3,208,028            86,696*    

Invesco Private Prime Fund

      11,610,739          117,378,787        (120,742,057)        (1,637)           3,381           8,249,213            237,990*    

Total

      $ 48,490,218        $ 279,779,748      $ (303,625,983)          $ (5,721)             $ 6,919             $ 24,645,181            $657,641    

 

  *

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

 

(h) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(i) 

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 1J.

 

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

 

6   Invesco Global Real Estate Income Fund

Portfolio Composition

By country, based on Net Assets

as of February 28, 2023

 

United States

      70.45%  

 

  

Japan

      8.13     

 

  

Germany

      6.05     

 

  

Hong Kong

      4.41     

 

  

United Kingdom

      2.88     

 

  

Australia

      2.11     

 

  

Countries each less than 2% of portfolio

      4.11     

 

  

Money Market Funds Plus Other Assets Less Liabilities

      1.86     

 

  

 

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

 

7   Invesco Global Real Estate Income Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

  

Investments in unaffiliated securities, at value (Cost $601,478,531)*

   $ 609,630,330  

 

  

Investments in affiliated money market funds, at value (Cost $24,645,694)

     24,645,181  

 

  

Cash

     4,623  

 

  

Foreign currencies, at value (Cost $188,484)

     187,279  

 

  

Receivable for:

  

Investments sold

     3,496  

 

  

Fund shares sold

     194,696  

 

  

Dividends

     980,416  

 

  

Interest

     567,502  

 

  

Investment for trustee deferred compensation and retirement plans

     90,183  

 

  

Other assets

     64,855  

 

  

Total assets

     636,368,561  

 

  

Liabilities:

  

Payable for:

  

Investments purchased

     3,114,173  

 

  

Fund shares reacquired

     165,753  

 

  

Collateral upon return of securities loaned

     11,457,754  

 

  

Accrued fees to affiliates

     213,807  

 

  

Accrued trustees’ and officers’ fees and benefits

     1,386  

 

  

Accrued other operating expenses

     126,154  

 

  

Trustee deferred compensation and retirement plans

     99,316  

 

  

Total liabilities

     15,178,343  

 

  

Net assets applicable to shares outstanding

   $ 621,190,218  

 

  

Net assets consist of:

  

Shares of beneficial interest

   $ 651,158,121  

 

  

Distributable earnings (loss)

     (29,967,903 ) 

 

  
  $ 621,190,218  

 

  

Net Assets:

  

Class A

   $ 102,955,388  

 

  

Class C

   $ 4,491,748  

 

  

Class Y

   $ 305,957,623  

 

  

Class R5

   $ 1,333,241  

 

  

Class R6

   $ 206,452,218  

 

  

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

  

Class A

     12,585,680  

 

  

Class C

     549,705  

 

  

Class Y

     37,526,248  

 

  

Class R5

     163,362  

 

  

Class R6

     25,261,121  

 

  

Class A:

  

Net asset value per share

   $ 8.18  

 

  

Maximum offering price per share
(Net asset value of $8.18 ÷ 94.50%)

   $ 8.66  

 

  

Class C:

  

Net asset value and offering price per share

   $ 8.17  

 

  

Class Y:

  

Net asset value and offering price per share

   $ 8.15  

 

  

Class R5:

  

Net asset value and offering price per share

   $ 8.16  

 

  

Class R6:

  

Net asset value and offering price per share

   $ 8.17  

 

  

 

*

At February 28, 2023, security with a value of $11,163,033 was on loan to brokers.

 

 

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

 

8   Invesco Global Real Estate Income Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

 

Interest

    $ 4,179,019  

 

  

Dividends (net of foreign withholding taxes of $86,004)

      8,675,260  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $15,471)

      348,426  

 

  

Less: IRS closing agreement fees for foreign withholding tax claims

      46,100  

 

  

Total investment income

      13,248,805  

 

  

Expenses:

   

Advisory fees

      2,217,296  

 

  

Administrative services fees

      41,653  

 

  

Custodian fees

      9,354  

 

  

Distribution fees:

   

Class A

      130,264  

 

  

Class C

      24,818  

 

  

Transfer agent fees – A, C and Y

      357,388  

 

  

Transfer agent fees – R5

      649  

 

  

Transfer agent fees – R6

      30,602  

 

  

Trustees’ and officers’ fees and benefits

      8,801  

 

  

Registration and filing fees

      32,236  

 

  

Reports to shareholders

      21,384  

 

  

Professional services fees

      30,068  

 

  

Other

      7,248  

 

  

Total expenses

      2,911,761  

 

  

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

      (12,986 ) 

 

  

Net expenses

      2,898,775  

 

  

Net investment income

      10,350,030  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (21,949,096 ) 

 

  

Affiliated investment securities

      6,919  

 

  

Foreign currencies

      (37,045 ) 

 

  
     (21,979,222 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      4,385,808  

 

  

Affiliated investment securities

      (5,721 ) 

 

  

Foreign currencies

      12,144  

 

  
     4,392,231  

 

  

Net realized and unrealized gain (loss)

      (17,586,991 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (7,236,961 ) 

 

  

 

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

 

9   Invesco Global Real Estate Income Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,
2023		     August 31,
2022		  

 

  

Operations:

     

Net investment income

    $ 10,350,030     $ 13,519,646  

 

  

Net realized gain (loss)

      (21,979,222 )      16,836,632  

 

  

Change in net unrealized appreciation (depreciation)

      4,392,231       (129,223,111 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      (7,236,961 )      (98,866,833 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (1,240,280 )      (1,687,360 ) 

 

  

Class C

      (40,418 )      (66,761 ) 

 

  

Class Y

      (3,707,037 )      (4,567,739 ) 

 

  

Class R5

      (17,714 )      (36,335 ) 

 

  

Class R6

      (2,798,794 )      (3,295,063 ) 

 

  

Total distributions from distributable earnings

      (7,804,243 )      (9,653,258 ) 

 

  

Return of capital:

     

Class A

      -       (1,358,095 ) 

 

  

Class C

      -       (53,733 ) 

 

  

Class Y

      -       (3,676,404 ) 

 

  

Class R5

      -       (29,244 ) 

 

  

Class R6

      -       (2,652,076 ) 

 

  

Total return of capital

      -       (7,769,552 ) 

 

  

Total distributions

      (7,804,243 )      (17,422,810 ) 

 

  

Share transactions-net:

     

Class A

      (10,253,327 )      (10,925,757 ) 

 

  

Class C

      (1,134,631 )      (2,706,669 ) 

 

  

Class Y

      8,472,880       12,540,848  

 

  

Class R5

      (54,954 )      (1,876,467 ) 

 

  

Class R6

      (2,396,116 )      7,827,965  

 

  

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

      (5,366,148 )      4,859,920  

 

  

Net increase (decrease) in net assets

      (20,407,352 )      (111,429,723 ) 

 

  

Net assets:

     

Beginning of period

      641,597,570       753,027,293  

 

  

End of period

    $ 621,190,218     $ 641,597,570  

 

  

 

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

 

10   Invesco Global Real Estate Income Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Return of

capital

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                              

Six months ended 02/28/23

     $8.35       $0.13       $(0.21 )      $(0.08 )      $(0.09 )      $      -       $      -       $(0.09 )      $8.18       (0.89 )%      $102,955       1.22 %(d)      1.22 %(d)      3.22 %(d)      42 % 

Year ended 08/31/22

     9.88       0.16       (1.48 )      (1.32 )      (0.12 )      -       (0.09 )      (0.21 )      8.35       (13.56 )      116,084       1.20       1.20       1.69       39  

Year ended 08/31/21

     8.06       0.14       1.84       1.98       (0.16 )      -       -       (0.16 )      9.88       24.81 (e)      149,008       1.19 (e)      1.19 (e)      1.63 (e)      41  

Year ended 08/31/20

     9.57       0.21       (0.99 )      (0.78 )      (0.48 )      (0.25 )      -       (0.73 )      8.06       (8.55 )      135,022       1.22       1.22       2.48       72  

Year ended 08/31/19

     9.11       0.28       0.49       0.77       (0.31 )      -       -       (0.31 )      9.57       8.69       175,013       1.25       1.25       3.05       41  

Year ended 08/31/18

     9.18       0.30       (0.02 )      0.28       (0.35 )      -       -       (0.35 )      9.11       3.11       188,658       1.24       1.24       3.33       59  

Class C

                              

Six months ended 02/28/23

     8.34       0.10       (0.21 )      (0.11 )      (0.06 )      -       -       (0.06 )      8.17       (1.27 )      4,492       1.97 (d)      1.97 (d)      2.47 (d)      42  

Year ended 08/31/22

     9.86       0.09       (1.47 )      (1.38 )      (0.08 )      -       (0.06 )      (0.14 )      8.34       (14.15 )      5,782       1.95       1.95       0.94       39  

Year ended 08/31/21

     8.05       0.08       1.82       1.90       (0.09 )      -       -       (0.09 )      9.86       23.79       9,722       1.95       1.95       0.87       41  

Year ended 08/31/20

     9.55       0.15       (0.99 )      (0.84 )      (0.41 )      (0.25 )      -       (0.66 )      8.05       (9.22 )      21,394       1.97       1.97       1.73       72  

Year ended 08/31/19

     9.09       0.21       0.49       0.70       (0.24 )      -       -       (0.24 )      9.55       7.89       39,088       2.00       2.00       2.30       41  

Year ended 08/31/18

     9.16       0.23       (0.02 )      0.21       (0.28 )      -       -       (0.28 )      9.09       2.34       51,925       1.99       1.99       2.58       59  

Class Y

                              

Six months ended 02/28/23

     8.33       0.14       (0.22 )      (0.08 )      (0.10 )      -       -       (0.10 )      8.15       (0.88 )      305,958       0.97 (d)      0.97 (d)      3.47 (d)      42  

Year ended 08/31/22

     9.84       0.18       (1.46 )      (1.28 )      (0.13 )      -       (0.10 )      (0.23 )      8.33       (13.20 )      305,110       0.95       0.95       1.94       39  

Year ended 08/31/21

     8.03       0.17       1.82       1.99       (0.18 )      -       -       (0.18 )      9.84       25.08       347,456       0.95       0.95       1.87       41  

Year ended 08/31/20

     9.54       0.23       (0.99 )      (0.76 )      (0.50 )      (0.25 )      -       (0.75 )      8.03       (8.34 )      296,997       0.97       0.97       2.73       72  

Year ended 08/31/19

     9.08       0.30       0.49       0.79       (0.33 )      -       -       (0.33 )      9.54       8.98       389,619       1.00       1.00       3.30       41  

Year ended 08/31/18

     9.15       0.32       (0.02 )      0.30       (0.37 )      -       -       (0.37 )      9.08       3.37       670,338       0.99       0.99       3.58       59  

Class R5

                              

Six months ended 02/28/23

     8.33       0.14       (0.20 )      (0.06 )      (0.11 )      -       -       (0.11 )      8.16       (0.72 )      1,333       0.89 (d)      0.89 (d)      3.55 (d)      42  

Year ended 08/31/22

     9.87       0.19       (1.49 )      (1.30 )      (0.13 )      -       (0.11 )      (0.24 )      8.33       (13.41 )      1,424       0.89       0.89       2.00       39  

Year ended 08/31/21

     8.05       0.17       1.83       2.00       (0.18 )      -       -       (0.18 )      9.87       25.21       3,504       0.89       0.89       1.93       41  

Year ended 08/31/20

     9.56       0.24       (1.00 )      (0.76 )      (0.50 )      (0.25 )      -       (0.75 )      8.05       (8.27 )      2,940       0.91       0.91       2.79       72  

Year ended 08/31/19

     9.11       0.31       0.48       0.79       (0.34 )      -       -       (0.34 )      9.56       8.98       4,517       0.90       0.90       3.40       41  

Year ended 08/31/18

     9.18       0.33       (0.02 )      0.31       (0.38 )      -       -       (0.38 )      9.11       3.46       5,745       0.92       0.92       3.65       59  

Class R6

                              

Six months ended 02/28/23

     8.35       0.14       (0.21 )      (0.07 )      (0.11 )      -       -       (0.11 )      8.17       (0.80 )      206,452       0.82 (d)      0.82 (d)      3.62 (d)      42  

Year ended 08/31/22

     9.87       0.19       (1.47 )      (1.28 )      (0.13 )      -       (0.11 )      (0.24 )      8.35       (13.14 )      213,197       0.82       0.82       2.07       39  

Year ended 08/31/21

     8.05       0.18       1.83       2.01       (0.19 )      -       -       (0.19 )      9.87       25.33       243,338       0.80       0.80       2.02       41  

Year ended 08/31/20

     9.56       0.24       (0.99 )      (0.75 )      (0.51 )      (0.25 )      -       (0.76 )      8.05       (8.17 )      205,791       0.82       0.82       2.88       72  

Year ended 08/31/19

     9.11       0.32       0.48       0.80       (0.35 )      -       -       (0.35 )      9.56       9.08       137,183       0.81       0.81       3.49       41  

Year ended 08/31/18

     9.17       0.34       (0.02 )      0.32       (0.38 )      -       -       (0.38 )      9.11       3.66       135,878       0.82       0.82       3.75       59  

 

(a)

Calculated using average shares outstanding.

(b)

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

(c)

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

(d)

Annualized.

(e)

The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the year ended August 31, 2021.

 

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

 

11   Invesco Global Real Estate Income Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

The Fund’s investment objective is current income and, secondarily, capital appreciation.

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

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

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

A.

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

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.

 

12   Invesco Global Real Estate Income Fund

Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

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

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

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

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 on a timely basis 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 as a reduction of the cost of the related investment. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

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

E.

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

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

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

F.

Foreign Withholding Taxes - The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Tax reclaims on the Statement of Assets and Liabilities.

As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received. These tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the six months ended February 28, 2023, the Fund did not enter into any closing agreements.

G.

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

H.

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

I.

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

J.

Securities Lending - The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by

 

13   Invesco Global Real Estate Income Fund

  collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $976 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

K.

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

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

L.

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

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

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

M.

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.

N.

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

 

14   Invesco Global Real Estate Income Fund

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $ 250 million

      0.750%  

 

  

Next $250 million

      0.740%  

 

  

Next $500 million

      0.730%  

 

  

Next $1.5 billion

      0.720%  

 

  

Next $2.5 billion

      0.710%  

 

  

Next $2.5 billion

      0.700%  

 

  

Next $2.5 billion

      0.690%  

 

  

Over $10 billion

      0.680%  

 

  

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.74%.

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

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

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $12,039.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $1,875 in front-end sales commissions from the sale of Class A shares and $0 and $0 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s

 

15   Invesco Global Real Estate Income Fund

               assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1             Level 2             Level 3             Total  

 

  

Investments in Securities

                     

 

  

Australia

    $ –                  $ 13,079,460                    $–                    $ 13,079,460  

 

  

Belgium

      –           4,256,664           –           4,256,664  

 

  

Canada

      9,965,480           –           –           9,965,480  

 

  

Cayman Islands

      –           11,384,425           –           11,384,425  

 

  

Germany

      –           37,557,348           –           37,557,348  

 

  

Hong Kong

      –           27,390,118           –           27,390,118  

 

  

Japan

      –           50,492,577           –           50,492,577  

 

  

United Kingdom

      –           17,921,524           0           17,921,524  

 

  

United States

      304,961,723           132,621,011           –           437,582,734  

 

  

Money Market Funds

      13,187,940           11,457,241           –           24,645,181  

 

  

Total Investments

    $ 328,115,143         $ 306,160,368           $0         $ 634,275,511  

 

  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $947.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

Capital Loss Carryforward*

  
Expiration    Short-Term                  Long-Term                  Total  

 

  

Not subject to expiration

    $ 17,885,118         $ 933,100         $ 18,818,218  

 

  

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $265,301,403 and $246,136,540, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

   $ 50,704,019  

 

  

Aggregate unrealized (depreciation) of investments

     (40,236,950 ) 

 

  

Net unrealized appreciation of investments

   $ 10,467,069  

 

  

 

16   Invesco Global Real Estate Income Fund

Cost of investments for tax purposes is $623,808,442.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended
February 28, 2023(a)		     Year ended
August 31, 2022		  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      354,651     $ 2,822,323       821,050     $ 7,570,649  

 

  

Class C

      16,273       126,495       82,112       786,263  

 

  

Class Y

      6,563,788       52,541,001       9,747,048       89,538,332  

 

  

Class R5

      8,314       67,775       397,332       3,423,282  

 

  

Class R6

      652,044       5,116,019       3,014,685       28,267,916  

 

  

Issued as reinvestment of dividends:

         

Class A

      117,668       930,868       245,974       2,277,023  

 

  

Class C

      3,846       30,415       9,673       90,061  

 

  

Class Y

      375,237       2,957,725       730,360       6,734,985  

 

  

Class R5

      2,086       16,457       6,612       62,043  

 

  

Class R6

      347,903       2,748,332       635,931       5,861,642  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      70,965       550,675       243,584       2,271,729  

 

  

Class C

      (70,987 )      (550,675 )      (243,701 )      (2,271,729 ) 

 

  

Reacquired:

         

Class A

      (1,854,375 )      (14,557,193 )      (2,502,932 )      (23,045,158 ) 

 

  

Class C

      (92,426 )      (740,866 )      (140,837 )      (1,311,264 ) 

 

  

Class Y

      (6,059,177 )      (47,025,846 )      (9,129,917 )      (83,732,469 ) 

 

  

Class R5

      (17,846 )      (139,186 )      (588,168 )      (5,361,792 ) 

 

  

Class R6

      (1,282,766 )      (10,260,467 )      (2,766,698 )      (26,301,593 ) 

 

  

Net increase (decrease) in share activity

      (864,802 )    $ (5,366,148 )      562,108     $ 4,859,920  

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 38% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

In addition, 25% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.

 

17   Invesco Global Real Estate Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

          ACTUAL  

HYPOTHETICAL
(5% annual return before

expenses)

  

      Annualized      

Expense

Ratio

    

Beginning

    Account Value    

(09/01/22)

  

Ending

    Account Value    

(02/28/23)1

  

Expenses

      Paid During    

Period2

  

Ending

    Account Value    

(02/28/23)

  

Expenses

      Paid During      

Period2

Class A

   $1,000.00   $991.10   $6.02   $1,018.74   $6.11   1.22%

Class C

     1,000.00     987.30     9.71     1,015.03     9.84   1.97   

Class Y

     1,000.00     991.20     4.79     1,019.98     4.86   0.97   

Class R5

     1,000.00     992.80     4.40     1,020.38     4.46   0.89   

Class R6

     1,000.00     992.00     4.05     1,020.73     4.11   0.82   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

18   Invesco Global Real Estate Income Fund

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

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

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074   Invesco Distributors, Inc.                                           GREI-SAR-1

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Semiannual Report to Shareholders   February 28, 2023

Invesco Growth and Income Fund

Nasdaq:

A: ACGIX ∎ C: ACGKX ∎ R: ACGLX ∎ Y: ACGMX ∎ R5: ACGQX ∎ R6: GIFFX

 

    

   
2   Fund Performance
4   Schedule of Investments
7   Financial Statements
10   Financial Highlights
11   Notes to Financial Statements
17   Fund Expenses

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     5.29 % 

Class C Shares

     4.87  

Class R Shares

     5.14  

Class Y Shares

     5.38  

Class R5 Shares

     5.45  

Class R6 Shares

     5.49  

S&P 500 Index▼ (Broad Market Index)

     1.26  

Russell 1000 Value Index▼ (Style-Specific Index)

     4.07  

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

     5.12  

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

  

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

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

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

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

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

 

 

 

 

 

 

For more information about your Fund

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

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

 

 

2   Invesco Growth and Income Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (8/1/46)

     9.34 % 

10 Years

     8.88  

  5 Years

     5.23  

  1 Year

     -9.50  

Class C Shares

        

Inception (8/2/93)

     9.24 % 

10 Years

     8.86  

  5 Years

     5.66  

  1 Year

     -5.83  

Class R Shares

        

Inception (10/1/02)

     8.63 % 

10 Years

     9.23  

  5 Years

     6.15  

  1 Year

     -4.52  

Class Y Shares

        

Inception (10/19/04)

     8.33 % 

10 Years

     9.77  

  5 Years

     6.68  

  1 Year

     -4.05  

Class R5 Shares

        

Inception (6/1/10)

     10.82 % 

10 Years

     9.86  

  5 Years

     6.76  

  1 Year

     -4.00  

Class R6 Shares

        

Inception (9/24/12)

     10.33 % 

10 Years

     9.96  

  5 Years

     6.85  

  1 Year

     -3.93  

Effective June 1, 2010, Class A, Class C, Class R and Class I shares of the predecessor fund, Van Kampen Growth and Income Fund, advised by Van Kampen Asset Management were reorganized into Class A, Class C, Class R and Class Y shares, respectively, of Invesco Van Kampen Growth and Income Fund (renamed Invesco Growth and Income Fund). Returns shown above, prior to June 1, 2010, for Class A, Class C, Class R and Class Y shares are those for Class A, Class C, Class R and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

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

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

 

 

3   Invesco Growth and Income Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

      Shares      Value

Common Stocks & Other Equity Interests-97.97%

Aerospace & Defense-2.88%

Raytheon Technologies Corp.

           690,592      $     67,740,169

Textron, Inc.

      737,626      53,500,014
              121,240,183

Apparel Retail-1.72%

TJX Cos., Inc. (The)

      944,458      72,345,483

Application Software-1.61%

salesforce.com, inc.(b)

      171,400      28,042,754

Splunk, Inc.(b)

      387,982      39,768,155
              67,810,909

Asset Management & Custody Banks-1.39%

KKR & Co., Inc., Class A

      1,036,896      58,429,090

Automobile Manufacturers-2.53%

General Motors Co.

      2,758,800      106,875,912

Building Products-1.99%

Johnson Controls International PLC

      1,334,764      83,716,398

Cable & Satellite-2.39%

Charter Communications, Inc., Class A(b)

      129,676      47,670,195

Comcast Corp., Class A

      1,434,066      53,304,233
              100,974,428

Casinos & Gaming-1.45%

Las Vegas Sands Corp.(b)

      1,061,410      60,999,233

Communications Equipment-1.69%

Cisco Systems, Inc.

      1,474,577      71,399,018

Consumer Finance-1.16%

American Express Co.

      282,107      49,083,797

Data Processing & Outsourced Services-2.28%

Fiserv, Inc.(b)

      446,209      51,354,194

PayPal Holdings, Inc.(b)

      607,889      44,740,630
              96,094,824

Distillers & Vintners-1.27%

Diageo PLC (United Kingdom)

      1,258,272      53,506,651

Diversified Banks-6.81%

Bank of America Corp.

      3,395,823      116,476,729

Wells Fargo & Co.

      3,645,117      170,482,121
              286,958,850

Electric Utilities-1.34%

American Electric Power Co., Inc.

      381,514      33,561,786

Exelon Corp.

      566,861      22,895,516
              56,457,302

Electrical Components & Equipment-0.85%

Emerson Electric Co.

      432,975      35,811,362

Electronic Manufacturing Services-0.97%

TE Connectivity Ltd.

      320,182      40,765,572
      Shares      Value

Fertilizers & Agricultural Chemicals-1.04%

Corteva, Inc.

           701,756      $     43,712,381

Food Distributors-2.23%

Sysco Corp.

      650,973      48,543,056

US Foods Holding Corp.(b)

      1,214,471      45,579,097
              94,122,153

Gold-0.74%

Barrick Gold Corp. (Canada)

      1,949,737      31,429,761

Health Care Distributors-1.14%

McKesson Corp.

      137,325      48,037,658

Health Care Equipment-2.58%

Medtronic PLC

      815,878      67,554,698

Zimmer Biomet Holdings, Inc.

      331,855      41,106,879
              108,661,577

Health Care Facilities-1.02%

Universal Health Services, Inc., Class B

      322,174      43,032,781

Health Care Services-2.70%

Cigna Group (The)

      259,149      75,697,423

CVS Health Corp.

      458,473      38,300,834
              113,998,257

Hotels, Resorts & Cruise Lines-1.31%

Booking Holdings, Inc.(b)

      21,868      55,194,832

Industrial Machinery-2.38%

Parker-Hannifin Corp.

      281,992      99,218,885

Stanley Black & Decker, Inc.

      12,535      1,073,122
              100,292,007

Insurance Brokers-1.45%

Willis Towers Watson PLC

      260,755      61,110,542

Integrated Oil & Gas-3.93%

Chevron Corp.

      387,384      62,279,725

Exxon Mobil Corp.

      941,181      103,445,204
              165,724,929

Interactive Media & Services-1.00%

Meta Platforms, Inc., Class A(b)

      240,215      42,023,212

Internet & Direct Marketing Retail-1.20%

Amazon.com, Inc.(b)

      538,819      50,772,914

Investment Banking & Brokerage-4.61%

Charles Schwab Corp. (The)

      751,890      58,587,269

Goldman Sachs Group, Inc. (The)

      206,716      72,691,681

Morgan Stanley

      652,019      62,919,834
              194,198,784

IT Consulting & Other Services-1.44%

Cognizant Technology Solutions Corp., Class A

      967,088      60,568,722

Managed Health Care-1.73%

Centene Corp.(b)

      631,674      43,206,502
 

 

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

 

4   Invesco Growth and Income Fund

      Shares      Value

Managed Health Care-(continued)

Elevance Health, Inc.

      63,565      $     29,854,573
              73,061,075

Movies & Entertainment-1.43%

Walt Disney Co. (The)(b)

      603,395      60,104,176

Multi-line Insurance-2.51%

American International Group, Inc.

        1,734,248      105,979,895

Oil & Gas Exploration & Production-5.45%

ConocoPhillips

      1,296,765      134,020,663

Devon Energy Corp.(c)

      798,707      43,066,281

Pioneer Natural Resources Co.

      263,495      52,807,033
              229,893,977

Oil & Gas Refining & Marketing-0.82%

Phillips 66

      336,289      34,489,800

Pharmaceuticals-8.52%

Bristol-Myers Squibb Co.

      1,069,036      73,720,722

GSK PLC

      1,750,474      29,776,684

Johnson & Johnson

      474,591      72,735,817

Merck & Co., Inc.

      996,338      105,850,949

Sanofi

      825,542      77,301,288
              359,385,460

Railroads-1.51%

CSX Corp.

      2,094,309      63,855,482

Real Estate Services-2.65%

CBRE Group, Inc., Class A(b)

      1,312,795      111,771,366

Regional Banks-2.93%

Citizens Financial Group, Inc.

      1,916,302      80,024,772

PNC Financial Services Group, Inc. (The)

      275,014      43,430,211
              123,454,983

Semiconductor Equipment-1.08%

Lam Research Corp.

      93,403      45,394,792

Semiconductors-3.37%

Intel Corp.

      1,113,322      27,755,118

Micron Technology, Inc.

      483,633      27,963,660
     Shares      Value  

 

  

Semiconductors-(continued)

 

NXP Semiconductors N.V. (China)

      237,178      $ 42,331,529  

 

  

QUALCOMM, Inc.

      356,280        44,011,268  

 

  
        142,061,575  

 

  

Tobacco-1.48%

 

Philip Morris International, Inc. (Switzerland)

      640,405        62,311,407  

 

  

Trading Companies & Distributors-1.70%

 

Ferguson PLC

      498,527        71,837,741  

 

  

Wireless Telecommunication Services-1.69%

 

T-Mobile US, Inc.(b)

      500,913        71,219,810  

 

  

Total Common Stocks & Other Equity Interests
(Cost $3,028,609,696)

 

      4,130,171,061  

 

  

Money Market Funds-1.88%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(e)

      27,690,494        27,690,494  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(d)(e)

      19,773,176        19,777,131  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(d)(e)

      31,646,279        31,646,279  

 

  

Total Money Market Funds
(Cost $79,115,475)

 

      79,113,904  

 

  

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.85%
(Cost $3,107,725,171)

 

      4,209,284,965  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-0.80%

 

Invesco Private Government Fund, 4.58%(d)(e)(f)

      9,463,684        9,463,684  

 

  

Invesco Private Prime Fund, 4.83%(d)(e)(f)

      24,330,320        24,335,186  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $33,798,870)

 

      33,798,870  

 

  

TOTAL INVESTMENTS IN SECURITIES-100.65%
(Cost $3,141,524,041)

 

      4,243,083,835  

 

  

OTHER ASSETS LESS LIABILITIES–(0.65)%

 

      (27,398,331 ) 

 

  

NET ASSETS-100.00%

 

    $ 4,215,685,504  

 

  
 

 

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 February 28, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

    

Value

August 31, 2022

    

Purchases

at Cost

    

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

    

Value

February 28, 2023

     Dividend Income  
Investments in Affiliated Money Market Funds:                                                        

Invesco Government & Agency Portfolio, Institutional Class

     $   31,768,080        $ 126,553,543     $ (130,631,129)         $ -         $ -         $   27,690,494             $    512,722      

Invesco Liquid Assets Portfolio, Institutional Class

     14,521,137          90,395,388       (85,141,666)       (8,607)           10,879       19,777,131           317,647      

Invesco Treasury Portfolio, Institutional Class

     36,306,378          144,632,620       (149,292,719)       -           -       31,646,279           585,534      

 

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

 

5   Invesco Growth and Income Fund

    

Value

August 31, 2022

    

Purchases

at Cost

    

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

    

Value

February 28, 2023

     Dividend Income  
Investments Purchased with Cash Collateral from Securities on Loan:                                                        

Invesco Private Government Fund

     $ 18,935,998        $ 186,734,601     $ (196,206,915)         $ -         $ -         $ 9,463,684             $ 311,308*      

Invesco Private Prime Fund

     48,692,568          416,936,264       (441,297,766)       -           4,120       24,335,186           849,613*      

Total

     $ 150,224,161        $ 965,252,416     $ (1,002,570,195)         $ (8,607)         $ 14,999         $ 112,912,774             $ 2,576,824      

 

  *

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(f) 

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

 

Open Forward Foreign Currency Contracts

  

Settlement

Date

    Counterparty    Contract to            

Unrealized

Appreciation

  
   Deliver      Receive  

 

  

Currency Risk

                  

 

  

03/24/2023        

    Bank of New York Mellon (The)    EUR      54,460,429           USD        58,474,434         $ 795,674  

 

  

03/24/2023

    State Street Bank & Trust Co.    EUR      900,943           USD        964,492           10,308  

 

  

03/24/2023

    State Street Bank & Trust Co.    GBP      53,100,185           USD        64,654,630           757,800  

 

  

Total Forward Foreign Currency Contracts

                   $ 1,563,782  

 

  

Abbreviations:

EUR –Euro

GBP –British Pound Sterling

USD –U.S. Dollar

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Financials

        20.86 %

Health Care

        17.70

Information Technology

        12.43

Industrials

        11.31

Energy

        10.20

Consumer Discretionary

        8.21

Communication Services

        6.51

Consumer Staples

        4.98

Real Estate

        2.65

Other Sectors, Each Less than 2% of Net Assets

        3.12

Money Market Funds Plus Other Assets Less Liabilities

        2.03
 

 

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

 

6   Invesco Growth and Income Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $3,028,609,696)*

    $ 4,130,171,061  

 

  

Investments in affiliated money market funds, at value
(Cost $112,914,345)

      112,912,774  

 

  

Other investments:

   

Unrealized appreciation on forward foreign currency contracts outstanding

      1,563,782  

 

  

Receivable for:

   

Investments sold

      9,636,120  

 

  

Fund shares sold

      1,984,045  

 

  

Dividends

      8,170,877  

 

  

Investment for trustee deferred compensation and retirement plans

      498,998  

 

  

Other assets

      101,186  

 

  

Total assets

      4,265,038,843  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      9,504,358  

 

  

Dividends

      3,905  

 

  

Fund shares reacquired

      3,257,167  

 

  

Amount due custodian - foreign currency, at value
(Cost $62,329)

      62,248  

 

  

Collateral upon return of securities loaned

      33,798,870  

 

  

Accrued fees to affiliates

      1,853,737  

 

  

Accrued trustees’ and officers’ fees and benefits

      3,314  

 

  

Accrued other operating expenses

      306,727  

 

  

Trustee deferred compensation and retirement plans

      563,013  

 

  

Total liabilities

      49,353,339  

 

  

Net assets applicable to shares outstanding

    $ 4,215,685,504  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 3,026,945,548  

 

  

Distributable earnings

      1,188,739,956  

 

  
   $ 4,215,685,504  

 

  

Net Assets:

   

Class A

    $ 2,499,535,106  

 

  

Class C

    $ 31,250,016  

 

  

Class R

    $ 52,855,648  

 

  

Class Y

    $ 405,926,705  

 

  

Class R5

    $ 405,560,141  

 

  

Class R6

    $ 820,557,888  

 

  

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

 

Class A

      118,934,034  

 

  

Class C

      1,519,107  

 

  

Class R

      2,510,860  

 

  

Class Y

      19,299,326  

 

  

Class R5

      19,248,113  

 

  

Class R6

      38,946,784  

 

  

Class A:

   

Net asset value per share

    $ 21.02  

 

  

Maximum offering price per share
(Net asset value of $21.02 ÷ 94.50%)

    $ 22.24  

 

  

Class C:

   

Net asset value and offering price per share

    $ 20.57  

 

  

Class R:

   

Net asset value and offering price per share

    $ 21.05  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 21.03  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 21.07  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 21.07  

 

  

 

*

At February 28, 2023, security with a value of $32,751,439 was on loan to brokers.

 

 

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

 

7   Invesco Growth and Income Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $198,292)

    $ 46,219,341  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $49,640)

      1,465,543  

 

  

Foreign withholding tax claims

      949,000  

 

  

Total investment income

      48,633,884  

 

  

Expenses:

   

Advisory fees

      7,607,010  

 

  

Administrative services fees

      293,359  

 

  

Custodian fees

      15,494  

 

  

Distribution fees:

   

Class A

      3,111,022  

 

  

Class C

      160,023  

 

  

Class R

      128,092  

 

  

Transfer agent fees – A, C, R and Y

      2,255,118  

 

  

Transfer agent fees – R5

      200,368  

 

  

Transfer agent fees – R6

      125,725  

 

  

Trustees’ and officers’ fees and benefits

      18,714  

 

  

Registration and filing fees

      91,326  

 

  

Reports to shareholders

      108,468  

 

  

Professional services fees

      43,597  

 

  

Other

      21,774  

 

  

Total expenses

      14,180,090  

 

  

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

      (53,362 ) 

 

  

Net expenses

      14,126,728  

 

  

Net investment income

      34,507,156  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      162,927,686  

 

  

Affiliated investment securities

      14,999  

 

  

Foreign currencies

      (87,979 ) 

 

  

Forward foreign currency contracts

      (3,502,861 ) 

 

  
     159,351,845  

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      31,376,547  

 

  

Affiliated investment securities

      (8,607 ) 

 

  

Foreign currencies

      21,357  

 

  

Forward foreign currency contracts

      (940,459 ) 

 

  
     30,448,838  

 

  

Net realized and unrealized gain

      189,800,683  

 

  

Net increase in net assets resulting from operations

    $ 224,307,839  

 

  

 

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

 

8   Invesco Growth and Income Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

    

February 28,

2023

    

August 31,

2022

  

 

  

Operations:

     

Net investment income

    $ 34,507,156     $ 67,210,398  

 

  

Net realized gain

      159,351,845       471,406,497  

 

  

Change in net unrealized appreciation (depreciation)

      30,448,838       (702,919,722 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      224,307,839       (164,302,827 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (257,091,031 )      (507,991,551 ) 

 

  

Class C

      (3,249,707 )      (6,772,771 ) 

 

  

Class R

      (5,185,355 )      (10,562,085 ) 

 

  

Class Y

      (44,174,681 )      (91,057,061 ) 

 

  

Class R5

      (42,016,275 )      (79,363,950 ) 

 

  

Class R6

      (84,220,052 )      (198,318,731 ) 

 

  

Total distributions from distributable earnings

      (435,937,101 )      (894,066,149 ) 

 

  

Share transactions-net:

     

Class A

      126,795,383       261,966,363  

 

  

Class C

      451,903       1,480,246  

 

  

Class R

      4,145,736       3,133,594  

 

  

Class Y

      623,901       16,324,552  

 

  

Class R5

      28,819,964       52,113,814  

 

  

Class R6

      (73,353,444 )      59,906,178  

 

  

Net increase in net assets resulting from share transactions

      87,483,443       394,924,747  

 

  

Net increase (decrease) in net assets

      (124,145,819 )      (663,444,229 ) 

 

  

Net assets:

     

Beginning of period

      4,339,831,323       5,003,275,552  

 

  

End of period

    $ 4,215,685,504     $ 4,339,831,323  

 

  

 

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

 

9   Invesco Growth and Income Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                                                        

Six months ended 02/28/23

       $22.20         $0.16          $ 1.00       $ 1.16       $(0.20 )         $(2.14 )         $(2.34 )         $21.02          5.29 %         $2,499,535          0.79 %(d)       0.79 %(d)       1.50 %(d)       6 %

Year ended 08/31/22

       28.10       0.32       (1.13 )         (0.81 )         (0.29 )       (4.80 )       (5.09 )       22.20       (3.90 )       2,499,911       0.78       0.78       1.28       23

Year ended 08/31/21

       20.01       0.30       8.63       8.93       (0.35 )       (0.49 )       (0.84 )       28.10       45.62       2,844,145       0.80       0.80       1.22       33

Year ended 08/31/20

       22.89       0.41       (1.24 )       (0.83 )       (0.44 )       (1.61 )       (2.05 )       20.01       (4.39 )       2,609,002       0.81       0.81       1.97       26

Year ended 08/31/19

       27.50       0.44       (2.02 )       (1.58 )       (0.43 )       (2.60 )       (3.03 )       22.89       (4.99 )       3,386,466       0.81       0.81       1.84       23

Year ended 08/31/18

       27.42       0.40       2.76       3.16       (0.52 )       (2.56 )       (3.08 )       27.50       11.96       3,954,641       0.80       0.80       1.44       29

Class C

                                                        

Six months ended 02/28/23

       21.77       0.08       0.97       1.05       (0.11 )       (2.14 )       (2.25 )       20.57       4.87       31,250       1.54 (d)        1.54 (d)        0.75 (d)        6

Year ended 08/31/22

       27.69       0.13       (1.09 )       (0.96 )       (0.16 )       (4.80 )       (4.96 )       21.77       (4.58 )(e)       32,497       1.52 (e)        1.52 (e)        0.54 (e)        23

Year ended 08/31/21

       19.73       0.12       8.51       8.63       (0.18 )       (0.49 )       (0.67 )       27.69       44.53 (e)        39,357       1.50 (e)        1.50 (e)        0.52 (e)        33

Year ended 08/31/20

       22.57       0.25       (1.20 )       (0.95 )       (0.28 )       (1.61 )       (1.89 )       19.73       (5.05 )       38,808       1.56       1.56       1.22       26

Year ended 08/31/19

       27.15       0.27       (2.00 )       (1.73 )       (0.25 )       (2.60 )       (2.85 )       22.57       (5.67 )(e)       76,522       1.53 (e)        1.53 (e)        1.12 (e)        23

Year ended 08/31/18

       27.09       0.19       2.74       2.93       (0.31 )       (2.56 )       (2.87 )       27.15       11.17 (e)        243,564       1.53 (e)        1.53 (e)        0.71 (e)        29

Class R

                                                        

Six months ended 02/28/23

       22.23       0.14       0.99       1.13       (0.17 )       (2.14 )       (2.31 )       21.05       5.14       52,856       1.04 (d)        1.04 (d)        1.25 (d)        6

Year ended 08/31/22

       28.13       0.25       (1.13 )       (0.88 )       (0.22 )       (4.80 )       (5.02 )       22.23       (4.14 )       51,354       1.03       1.03       1.03       23

Year ended 08/31/21

       20.03       0.24       8.64       8.88       (0.29 )       (0.49 )       (0.78 )       28.13       45.26       60,808       1.05       1.05       0.97       33

Year ended 08/31/20

       22.90       0.36       (1.23 )       (0.87 )       (0.39 )       (1.61 )       (2.00 )       20.03       (4.60 )       61,342       1.06       1.06       1.72       26

Year ended 08/31/19

       27.52       0.38       (2.03 )       (1.65 )       (0.37 )       (2.60 )       (2.97 )       22.90       (5.27 )       84,224       1.06       1.06       1.59       23

Year ended 08/31/18

       27.43       0.33       2.77       3.10       (0.45 )       (2.56 )       (3.01 )       27.52       11.71       115,360       1.05       1.05       1.19       29

Class Y

                                                        

Six months ended 02/28/23

       22.22       0.19       0.99       1.18       (0.23 )       (2.14 )       (2.37 )       21.03       5.38       405,927       0.54 (d)        0.54 (d)        1.75 (d)        6

Year ended 08/31/22

       28.12       0.38       (1.12 )       (0.74 )       (0.36 )       (4.80 )       (5.16 )       22.22       (3.63 )       427,166       0.53       0.53       1.53       23

Year ended 08/31/21

       20.03       0.36       8.63       8.99       (0.41 )       (0.49 )       (0.90 )       28.12       45.94       517,664       0.55       0.55       1.47       33

Year ended 08/31/20

       22.91       0.47       (1.24 )       (0.77 )       (0.50 )       (1.61 )       (2.11 )       20.03       (4.12 )       477,858       0.56       0.56       2.22       26

Year ended 08/31/19

       27.53       0.50       (2.03 )       (1.53 )       (0.49 )       (2.60 )       (3.09 )       22.91       (4.78 )       938,866       0.56       0.56       2.09       23

Year ended 08/31/18

       27.44       0.47       2.77       3.24       (0.59 )       (2.56 )       (3.15 )       27.53       12.27       1,266,205       0.55       0.55       1.69       29

Class R5

                                                        

Six months ended 02/28/23

       22.25       0.20       0.99       1.19       (0.23 )       (2.14 )       (2.37 )       21.07       5.45       405,560       0.49 (d)        0.49 (d)        1.80 (d)        6

Year ended 08/31/22

       28.16       0.39       (1.13 )       (0.74 )       (0.37 )       (4.80 )       (5.17 )       22.25       (3.62 )       397,345       0.48       0.48       1.58       23

Year ended 08/31/21

       20.06       0.38       8.64       9.02       (0.43 )       (0.49 )       (0.92 )       28.16       46.04       438,989       0.47       0.47       1.55       33

Year ended 08/31/20

       22.94       0.49       (1.24 )       (0.75 )       (0.52 )       (1.61 )       (2.13 )       20.06       (4.03 )       443,315       0.48       0.48       2.30       26

Year ended 08/31/19

       27.56       0.52       (2.03 )       (1.51 )       (0.51 )       (2.60 )       (3.11 )       22.94       (4.70 )       746,385       0.48       0.48       2.17       23

Year ended 08/31/18

       27.47       0.49       2.77       3.26       (0.61 )       (2.56 )       (3.17 )       27.56       12.35       932,196       0.48       0.48       1.76       29

Class R6

                                                        

Six months ended 02/28/23

       22.25       0.20       1.00       1.20       (0.24 )       (2.14 )       (2.38 )       21.07       5.49       820,558       0.42 (d)        0.42 (d)        1.87 (d)        6

Year ended 08/31/22

       28.16       0.41       (1.13 )       (0.72 )       (0.39 )       (4.80 )       (5.19 )       22.25       (3.55 )       931,558       0.41       0.41       1.65       23

Year ended 08/31/21

       20.06       0.39       8.65       9.04       (0.45 )       (0.49 )       (0.94 )       28.16       46.16       1,102,312       0.40       0.40       1.62       33

Year ended 08/31/20

       22.94       0.50       (1.23 )       (0.73 )       (0.54 )       (1.61 )       (2.15 )       20.06       (3.93 )       1,147,101       0.39       0.39       2.39       26

Year ended 08/31/19

       27.57       0.54       (2.04 )       (1.50 )       (0.53 )       (2.60 )       (3.13 )       22.94       (4.64 )       1,494,527       0.38       0.38       2.27       23

Year ended 08/31/18

       27.48       0.51       2.77       3.28       (0.63 )       (2.56 )       (3.19 )       27.57       12.46       1,666,520       0.38       0.38       1.86       29

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

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

(d) 

Annualized.

(e) 

The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.99%, 0.95%, 0.96% and 0.98% for the years ended August 31, 2022, 2021, 2019 and 2018, respectively.

 

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

 

10   Invesco Growth and Income Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

    The Fund’s investment objective is total return through growth of capital and current income.

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

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

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

A.

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

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

 

11   Invesco Growth and Income Fund

  settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

C.

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

D.

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

E.

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

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

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

F.

Foreign Withholding Taxes - The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Tax reclaims on the Statement of Assets and Liabilities.

As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received. These tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the six months ended February 28, 2023, the Fund did not enter into any closing agreements.

G.

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

H.

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

I.

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

J.

Securities Lending - The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.

When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to

 

12   Invesco Growth and Income Fund

the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $1,173 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

K.

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

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

L.

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

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

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

M.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

 

  

First $150 million

      0.500%  

 

  

Next $100 million

      0.450%  

 

  

Next $100 million

      0.400%  

 

  

Over $350 million

      0.350%  

 

  

    For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.36%.

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

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

 

13   Invesco Growth and Income Fund

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

    For the six months ended February 28, 2023, the Adviser waived advisory fees of $42,590.

    The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

    The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Trust has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Trust and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Trust, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

    Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class C shares and Class R shares to reimburse IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will reimburse annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% of Class C average daily net assets and up to 0.50% of Class R average daily net assets. The fees are accrued daily and paid monthly. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of each Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

    Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $117,366 in front-end sales commissions from the sale of Class A shares and $2,346 and $(427) from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

    For the six months ended February 28, 2023, the Fund incurred $21,946 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

    The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1        Level 2        Level 3        Total  

 

  

Investments in Securities

                  

 

  

Common Stocks & Other Equity Interests

    $ 3,969,586,438        $ 160,584,623          $–        $ 4,130,171,061  

 

  

Money Market Funds

      79,113,904          33,798,870            –          112,912,774  

 

  

Total Investments in Securities

      4,048,700,342          194,383,493            –          4,243,083,835  

 

  

Other Investments - Assets*

                  

 

  

Forward Foreign Currency Contracts

      –          1,563,782            –          1,563,782  

 

  

Total Investments

    $ 4,048,700,342        $ 195,947,275          $–        $ 4,244,647,617  

 

  

 

*

Unrealized appreciation.

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

    For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

 

14   Invesco Growth and Income Fund

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  
Derivative Assets   

Currency

Risk

  

 

  

Unrealized appreciation on forward foreign currency contracts outstanding

    $ 1,563,782  

 

  

Derivatives not subject to master netting agreements

      –  

 

  

Total Derivative Assets subject to master netting agreements

    $ 1,563,782  

 

  

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2023.

 

     Financial
Derivative
Assets 		                  Collateral
(Received)/Pledged		              
Counterparty   

Forward Foreign

Currency Contracts

        

Net Value of

Derivatives

         Non-Cash    Cash          

Net

Amount

  

 

  

Bank of New York Mellon (The)

    $   795,674            $   795,674            $–    $–                $ 795,674  

 

  

State Street Bank & Trust Co.

         768,108            768,108         –      –         768,108  

 

  

Total

    $1,563,782       $1,563,782       $–    $–       $ 1,563,782  

 

  

Effect of Derivative Investments for the six months ended February 28, 2023

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

 

     Location of Gain (Loss) on
Statement of Operations		  
     Currency  
     Risk  

 

  

Realized Gain (Loss):

   

Forward foreign currency contracts

      $(3,502,861)  

 

  

Change in Net Unrealized Appreciation (Depreciation):

   

Forward foreign currency contracts

           (940,459)  

 

  

Total

      $(4,443,320)  

 

  

    The table below summarizes the average notional value of derivatives held during the period.

 

     Forward
     Foreign Currency
     Contracts

 

Average notional value

    $128,690,816

 

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $10,772.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

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

NOTE 7–Cash Balances

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

 

15   Invesco Growth and Income Fund

NOTE 8–Tax Information

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

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

    The Fund did not have a capital loss carryforward as of August 31, 2022.

NOTE 9–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $240,305,277 and $549,344,500, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $1,207,531,577  

 

  

Aggregate unrealized (depreciation) of investments

      (147,379,758 ) 

 

  

Net unrealized appreciation of investments

      $1,060,151,819  

 

  

    Cost of investments for tax purposes is $3,184,495,798.

NOTE 10–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended            Year ended  
     February 28, 2023(a)            August 31, 2022  
     Shares            Amount            Shares            Amount  

 

  

Sold:

                  

Class A

      3,911,732        $ 83,852,410          6,563,715        $ 161,932,629  

 

  

Class C

      121,743          2,577,055          204,999          4,972,685  

 

  

Class R

      215,500          4,686,595          316,730          7,811,959  

 

  

Class Y

      1,093,954          23,839,820          2,644,421          65,243,714  

 

  

Class R5

      1,151,512          25,163,964          2,720,647          66,964,355  

 

  

Class R6

      2,645,869          57,597,259          5,279,294          131,545,487  

 

  

Issued as reinvestment of dividends:

                  

Class A

      11,327,270          236,979,053          19,596,551          464,645,977  

 

  

Class C

      148,431          3,043,952          270,554          6,294,750  

 

  

Class R

      247,392          5,185,320          444,779          10,561,949  

 

  

Class Y

      1,723,819          36,067,531          3,148,013          74,697,819  

 

  

Class R5

      2,001,115          41,949,382          3,340,012          79,350,674  

 

  

Class R6

      3,967,736          83,145,897          8,264,455          196,374,492  

 

  

Automatic conversion of Class C shares to Class A shares:

                  

Class A

      71,426          1,546,568          145,079          3,573,433  

 

  

Class C

      (72,849 )         (1,546,568 )         (147,721 )         (3,573,433 ) 

 

  

Reacquired:

                  

Class A

      (8,995,632 )         (195,582,648 )         (14,913,478 )         (368,185,676 ) 

 

  

Class C

      (171,211 )         (3,622,536 )         (256,139 )         (6,213,756 ) 

 

  

Class R

      (262,213 )         (5,726,179 )         (613,286 )         (15,240,314 ) 

 

  

Class Y

      (2,745,434 )         (59,283,450 )         (4,973,866 )         (123,616,981 ) 

 

  

Class R5

      (1,760,916 )         (38,293,382 )         (3,793,506 )         (94,201,215 ) 

 

  

Class R6

      (9,530,826 )         (214,096,600 )         (10,823,831 )         (268,013,801 ) 

 

  

Net increase in share activity

      5,088,418        $ 87,483,443          17,417,422        $ 394,924,747  

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 50% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

16   Invesco Growth and Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

          ACTUAL  

HYPOTHETICAL

(5% annual return before

expenses)

     
    

Beginning

    Account Value    

(09/01/22)

  

Ending

    Account Value    

(02/28/23)1

  

Expenses

      Paid During      

Period2

 

Ending

    Account Value    

(02/28/23)

  

Expenses

      Paid During      

Period2

 

      Annualized      

Expense

Ratio

Class A

   $1,000.00   $1,052.90   $4.02   $1,020.88   $3.96       0.79%

Class C

     1,000.00     1,048.70     7.82     1,017.16     7.70       1.54    

Class R

     1,000.00     1,051.40     5.29     1,019.64     5.21       1.04    

Class Y

     1,000.00     1,053.80     2.75     1,022.12     2.71       0.54    

Class R5

     1,000.00     1,054.50     2.50     1,022.36     2.46       0.49    

Class R6

     1,000.00     1,054.90     2.14     1,022.71     2.11       0.42    

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

17   Invesco Growth and Income Fund

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074                    Invesco Distributors, Inc.    VK-GRI-SAR-1                                         

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Semiannual Report to Shareholders    February 28, 2023

Invesco Income Advantage U.S. Fund

Nasdaq:

A: SCAUX ∎ C: SCCUX ∎ R: SCRUX ∎ Y: SCAYX ∎ Investor: SCNUX ∎ R5: SCIUX ∎ R6: SLESX

 

    

 

2    Fund Performance
4    Schedule of Investments
11    Financial Statements
14    Financial Highlights
15    Notes to Financial Statements
20    Fund Expenses

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

 

NOT FDIC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

      1.51 % 

Class C Shares

      1.09  

Class R Shares

      1.38  

Class Y Shares

      1.54  

Investor Class Shares

      1.41  

Class R5 Shares

      1.57  

Class R6 Shares

      1.68  

S&P 500 Index▼ (Broad Market/Style-Specific Index)

      1.26  

Lipper Equity Income Funds Index∎ (Peer Group Index)

      3.62  

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

 

 

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

    The Lipper Equity Income Funds Index is an unmanaged index considered representative of equity income funds tracked by Lipper.

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

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

 

 

 

 

 

 

For more information about your Fund

 

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

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

 

 

2   Invesco Income Advantage U.S. Fund

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

 

Inception (3/31/06)

      3.82 % 

10 Years

      4.49  

  5 Years

      0.42  

  1 Year

      -10.73  

Class C Shares

         

Inception (3/31/06)

      3.80 % 

10 Years

      4.44  

  5 Years

      0.79  

  1 Year

      -7.14  

Class R Shares

         

Inception (3/31/06)

      3.91 % 

10 Years

      4.82  

  5 Years

      1.30  

  1 Year

      -5.82  

Class Y Shares

         

Inception (10/3/08)

      6.39 % 

10 Years

      5.34  

  5 Years

      1.82  

  1 Year

      -5.33  

Investor Class Shares

         

Inception (4/25/08)

      4.12 % 

10 Years

      5.08  

  5 Years

      1.55  

  1 Year

      -5.58  

Class R5 Shares

         

Inception (3/31/06)

      4.53 % 

10 Years

      5.51  

  5 Years

      1.96  

  1 Year

      -5.28  

Class R6 Shares

         

10 Years

      5.33 % 

  5 Years

      1.98  

  1 Year

      -5.29  

Effective July 15, 2021, Invesco Low Volatility Equity Yield Fund was renamed Invesco Income Advantage U.S. Fund. The Fund’s strategy also changed to invest in equity-linked notes and focus on factor based equity exposures, therefore results prior to July 15, 2021, reflect the performance of the Fund’s prior strategy.

    Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Investor Class, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

 

 

3   Invesco Income Advantage U.S. Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

            Shares            Value

Common Stocks & Other Equity Interests–51.76%

Advertising–0.05%

      

Omnicom Group, Inc.

      637      $         57,693

Trade Desk, Inc. (The), Class A(b)

      446      24,958
              82,651

Aerospace & Defense–1.16%

      

General Dynamics Corp.

      1,549      353,033

L3Harris Technologies, Inc.

      804      169,797

Lockheed Martin Corp.

      1,992      944,726

Northrop Grumman Corp.

      841      390,316

Raytheon Technologies Corp.

      1,728      169,499
              2,027,371

Agricultural & Farm Machinery–0.09%

Deere & Co.

      384      160,988

Agricultural Products–0.13%

      

Archer-Daniels-Midland Co.

      2,861      227,736

Air Freight & Logistics–0.46%

      

C.H. Robinson Worldwide, Inc.

      883      88,264

Expeditors International of Washington, Inc.

      1,214      126,936

FedEx Corp.

      869      176,598

United Parcel Service, Inc., Class B

      2,269      414,070
              805,868

Alternative Carriers–0.04%

      

Liberty Global PLC, Class C (United Kingdom)(b)

      3,540      75,225

Apparel Retail–0.17%

      

Ross Stores, Inc.

      391      43,221

TJX Cos., Inc. (The)

      3,201      245,197
              288,418

Apparel, Accessories & Luxury Goods–0.05%

lululemon athletica, inc.(b)

      277      85,648

Application Software–0.88%

      

Adobe, Inc.(b)

      591      191,454

ANSYS, Inc.(b)

      123      37,344

Autodesk, Inc.(b)

      1,212      240,812

Cadence Design Systems, Inc.(b)

      2,778      535,987

Datadog, Inc., Class A(b)

      480      36,730

Roper Technologies, Inc.

      145      62,379

Synopsys, Inc.(b)

      1,017      369,944

Workday, Inc., Class A(b)

      174      32,272

Zoom Video Communications, Inc., Class A(b)

      378      28,195
              1,535,117

Asset Management & Custody Banks–0.33%

Ameriprise Financial, Inc.

      139      47,659

Bank of New York Mellon Corp. (The)

      4,614      234,760

Blackstone, Inc., Class A

      937      85,080

Franklin Resources, Inc.

      923      27,201
            Shares            Value

Asset Management & Custody Banks–(continued)

Northern Trust Corp.

      372      $         35,440

State Street Corp.

      847      75,112

T. Rowe Price Group, Inc.

      587      65,908
              571,160

Auto Parts & Equipment–0.03%

      

Aptiv PLC(b)

      442      51,396

Automobile Manufacturers–0.41%

Ford Motor Co.

      17,481      210,996

General Motors Co.

      12,927      500,792
              711,788

Automotive Retail–0.31%

      

AutoZone, Inc.(b)

      116      288,439

CarMax, Inc.(b)

      356      24,578

O’Reilly Automotive, Inc.(b)

      279      231,598
              544,615

Biotechnology–1.59%

      

AbbVie, Inc.

      3,308      509,101

Amgen, Inc.

      1,982      459,150

Biogen, Inc.(b)

      530      143,026

BioNTech SE, ADR (Germany)

      2,437      316,932

Gilead Sciences, Inc.

      6,409      516,117

Incyte Corp.(b)

      532      40,953

Moderna, Inc.(b)

      974      135,201

Regeneron Pharmaceuticals, Inc.(b)

      422      320,897

Seagen, Inc.(b)

      191      34,321

Vertex Pharmaceuticals, Inc.(b)

      1,068      310,030
              2,785,728

Broadcasting–0.13%

      

Fox Corp., Class A

      4,030      141,130

Paramount Global, Class B

      3,847      82,403
              223,533

Building Products–0.17%

      

Carrier Global Corp.

      2,269      102,173

Johnson Controls International PLC

      1,503      94,268

Trane Technologies PLC

      495      91,560
              288,001

Cable & Satellite–0.63%

      

Charter Communications, Inc.,
Class A(b)

      437      160,646

Comcast Corp., Class A

      24,179      898,733

Liberty Broadband Corp., Class C(b)

      365      31,635

Sirius XM Holdings, Inc.(c)

      4,142      18,183
              1,109,197

Commodity Chemicals–0.17%

      

Dow, Inc.

      3,002      171,714

LyondellBasell Industries N.V., Class A

      1,319      126,611
              298,325

Communications Equipment–0.57%

Cisco Systems, Inc.

      13,631      660,013
 

 

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

 

4   Invesco Income Advantage U.S. Fund

            Shares            Value

Communications Equipment–(continued)

Motorola Solutions, Inc.

      1,290      $       339,025
              999,038

Computer & Electronics Retail–0.05%

Best Buy Co., Inc.

      1,089      90,507

Construction Machinery & Heavy Trucks–0.39%

Caterpillar, Inc.

      1,282      307,103

Cummins, Inc.

      773      187,901

PACCAR, Inc.

      2,601      187,792
              682,796

Construction Materials–0.02%

Vulcan Materials Co.

      204      36,906

Consumer Electronics–0.03%

      

Garmin Ltd.

      459      45,042

Consumer Finance–0.48%

      

American Express Co.

      1,429      248,632

Capital One Financial Corp.

      2,907      317,095

Discover Financial Services

      1,133      126,896

Synchrony Financial

      3,839      137,091
              829,714

Copper–0.09%

Freeport-McMoRan, Inc.

      4,022      164,781

Data Processing & Outsourced Services–1.78%

Automatic Data Processing, Inc.

      4,684      1,029,637

Fidelity National Information Services, Inc.

      1,769      112,101

Fiserv, Inc.(b)

      2,554      293,940

FleetCor Technologies, Inc.(b)

      293      62,933

Global Payments, Inc.

      1,148      128,806

Mastercard, Inc., Class A

      1,000      355,290

Paychex, Inc.

      814      89,866

PayPal Holdings, Inc.(b)

      2,640      194,304

Visa, Inc., Class A(c)

      3,810      837,971
              3,104,848

Distillers & Vintners–0.13%

Brown-Forman Corp., Class B

      889      57,669

Constellation Brands, Inc., Class A

      788      176,276
              233,945

Distributors–0.10%

Genuine Parts Co.

      1,024      181,105

Diversified Support Services–0.10%

Cintas Corp.

      247      108,302

Copart, Inc.(b)

      1,033      72,785
              181,087

Drug Retail–0.07%

Walgreens Boots Alliance, Inc.

      3,570      126,842

Electric Utilities–1.37%

      

American Electric Power Co., Inc.

      3,048      268,133

Avangrid, Inc.

      516      20,139

Duke Energy Corp.

      4,078      384,392

Edison International

      1,869      123,747

Entergy Corp.

      726      74,684
            Shares            Value

Electric Utilities–(continued)

Eversource Energy

      1,377      $       103,771

Exelon Corp.

      3,231      130,500

FirstEnergy Corp.

      2,785      110,119

NextEra Energy, Inc.

      5,380      382,141

PG&E Corp.(b)

      10,699      167,118

PPL Corp.

      7,962      215,531

Southern Co. (The)

      3,815      240,574

Xcel Energy, Inc.

      2,775      179,182
              2,400,031

Electrical Components & Equipment–0.18%

AMETEK, Inc.

      503      71,205

Eaton Corp. PLC

      949      166,008

Emerson Electric Co.

      866      71,627
              308,840

Electronic Components–0.14%

Amphenol Corp., Class A

      2,518      195,195

Corning, Inc.

      1,532      52,012
              247,207

Electronic Equipment & Instruments–0.06%

Keysight Technologies, Inc.(b)

      639      102,214

Electronic Manufacturing Services–0.07%

TE Connectivity Ltd.

      927      118,026

Environmental & Facilities Services–0.34%

Republic Services, Inc.

      1,179      152,008

Waste Connections, Inc.

      978      130,974

Waste Management, Inc.

      2,058      308,206
              591,188

Fertilizers & Agricultural Chemicals–0.09%

Corteva, Inc.

      2,472      153,981

Financial Exchanges & Data–0.33%

CME Group, Inc., Class A

      870      161,263

Intercontinental Exchange, Inc.

      916      93,249

Moody’s Corp.

      208      60,351

MSCI, Inc.

      116      60,569

Nasdaq, Inc.

      1,533      85,940

S&P Global, Inc.

      358      122,150
              583,522

Food Distributors–0.03%

Sysco Corp.

      605      45,115

Food Retail–0.13%

      

Kroger Co. (The)

      5,242      226,140

General Merchandise Stores–0.21%

Dollar General Corp.

      1,480      320,124

Dollar Tree, Inc.(b)

      329      47,797
              367,921

Gold–0.03%

Newmont Corp.

      1,019      44,439

Health Care Distributors–0.23%

      

AmerisourceBergen Corp.

      464      72,180

Cardinal Health, Inc.

      843      63,823
 

 

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

 

5   Invesco Income Advantage U.S. Fund

            Shares            Value

Health Care Distributors–(continued)

McKesson Corp.

      743      $     259,909
              395,912

Health Care Equipment–0.94%

Abbott Laboratories

      6,682      679,693

Baxter International, Inc.

      894      35,715

Becton, Dickinson and Co.

      531      124,546

Boston Scientific Corp.(b)

      2,453      114,604

DexCom, Inc.(b)

      664      73,711

IDEXX Laboratories, Inc.(b)

      91      43,065

Medtronic PLC

      4,456      368,957

ResMed, Inc.

      220      46,860

Stryker Corp.

      334      87,802

Zimmer Biomet Holdings, Inc.

      582      72,092
              1,647,045

Health Care Facilities–0.08%

HCA Healthcare, Inc.

      606      147,531

Health Care REITs–0.06%

      

Healthpeak Properties, Inc.

      1,375      33,082

Ventas, Inc.

      501      24,374

Welltower, Inc.

      615      45,584
              103,040

Health Care Services–0.79%

Cigna Group (The)

      1,863      544,182

CVS Health Corp.

      8,303      693,633

Laboratory Corp. of America Holdings

      279      66,781

Quest Diagnostics, Inc.

      582      80,526
              1,385,122

Home Improvement Retail–0.69%

Home Depot, Inc. (The)

      2,771      821,712

Lowe’s Cos., Inc.

      1,874      385,576
              1,207,288

Homebuilding–0.17%

D.R. Horton, Inc.

      1,479      136,778

Lennar Corp., Class A

      1,651      159,718
              296,496

Hotels, Resorts & Cruise Lines–0.19%

Airbnb, Inc., Class A(b)

      583      71,872

Booking Holdings, Inc.(b)

      74      186,776

Expedia Group, Inc.(b)

      595      64,837
              323,485

Household Products–0.95%

Church & Dwight Co., Inc.

      490      41,052

Clorox Co. (The)

      387      60,155

Colgate-Palmolive Co.

      4,109      301,190

Kimberly-Clark Corp.

      743      92,912

Procter & Gamble Co. (The)

      8,527      1,172,974
              1,668,283

Hypermarkets & Super Centers–0.87%

Costco Wholesale Corp.

      1,529      740,311

Walmart, Inc.

      5,487      779,868
              1,520,179
            Shares            Value

Industrial Conglomerates–0.36%

3M Co.

      2,146      $       231,210

Honeywell International, Inc.

      2,089      400,002
              631,212

Industrial Gases–0.45%

Air Products and Chemicals, Inc.

      590      168,728

Linde PLC (United Kingdom)

      1,786      622,189
              790,917

Industrial Machinery–0.30%

Dover Corp.

      347      52,015

Fortive Corp.

      1,259      83,925

Illinois Tool Works, Inc.

      763      177,901

Otis Worldwide Corp.

      1,235      104,506

Parker-Hannifin Corp.

      294      103,444
              521,791

Industrial REITs–0.07%

Prologis, Inc.

      969      119,575

Insurance Brokers–0.56%

      

Aon PLC, Class A

      925      281,246

Arthur J. Gallagher & Co.

      1,066      199,715

Marsh & McLennan Cos., Inc.

      2,423      392,865

Willis Towers Watson PLC

      469      109,915
              983,741

Integrated Oil & Gas–1.98%

Chevron Corp.

      5,701      916,550

Exxon Mobil Corp.

      20,435      2,246,011

Occidental Petroleum Corp.

      5,134      300,647
              3,463,208

Integrated Telecommunication Services–1.95%

AT&T, Inc.

      85,688      1,620,360

Verizon Communications, Inc.

      46,090      1,788,753
      3,409,113

Interactive Home Entertainment–0.38%

Activision Blizzard, Inc.

      5,044      384,605

Electronic Arts, Inc.

      2,510      278,459
              663,064

Interactive Media & Services–3.17%

Alphabet, Inc., Class A(b)

      36,023      3,244,233

Meta Platforms, Inc., Class A(b)

      12,650      2,212,991

Pinterest, Inc., Class A(b)

      3,544      88,990
              5,546,214

Internet & Direct Marketing Retail–0.74%

Amazon.com, Inc.(b)

      12,338      1,162,610

eBay, Inc.

      1,533      70,364

MercadoLibre, Inc. (Brazil)(b)

      53      64,660
              1,297,634

Internet Services & Infrastructure–0.08%

Akamai Technologies, Inc.(b)

      754      54,741

VeriSign, Inc.(b)

      440      86,605
              141,346
 

 

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

 

6   Invesco Income Advantage U.S. Fund

            Shares            Value

Investment Banking & Brokerage–0.28%

Goldman Sachs Group, Inc. (The)

      1,005      $       353,408

Morgan Stanley

      1,357      130,951
              484,359

IT Consulting & Other Services–0.84%

Accenture PLC, Class A

      1,409      374,160

Cognizant Technology Solutions Corp., Class A

      1,343      84,112

International Business Machines Corp.

      7,841      1,013,841
              1,472,113

Life & Health Insurance–0.20%

Aflac, Inc.

      1,377      93,842

MetLife, Inc.

      1,851      132,772

Principal Financial Group, Inc.

      912      81,679

Prudential Financial, Inc.

      392      39,200
              347,493

Life Sciences Tools & Services–0.52%

Agilent Technologies, Inc.

      798      113,292

Danaher Corp.

      1,029      254,708

IQVIA Holdings, Inc.(b)

      190      39,609

Mettler-Toledo International, Inc.(b)

      52      74,553

Thermo Fisher Scientific, Inc.

      734      397,652

Waters Corp.(b)

      77      23,939
              903,753

Managed Health Care–1.45%

Centene Corp.(b)

      2,384      163,066

Elevance Health, Inc.

      1,059      497,380

Humana, Inc.

      696      344,534

UnitedHealth Group, Inc.

      3,206      1,525,864
              2,530,844

Movies & Entertainment–0.13%

Liberty Media Corp.-Liberty Formula One, Class C(b)

      1,132      76,829

Warner Bros Discovery, Inc.(b)

      9,101      142,157
              218,986

Multi-line Insurance–0.16%

American International Group, Inc.

      2,920      178,441

Hartford Financial Services Group, Inc. (The)

      1,281      100,277
              278,718

Multi-Sector Holdings–0.78%

Berkshire Hathaway, Inc., Class B(b)

      4,483      1,368,122

Multi-Utilities–0.57%

      

Ameren Corp.

      1,193      98,673

CMS Energy Corp.

      848      50,007

Consolidated Edison, Inc.

      2,413      215,601

Dominion Energy, Inc.

      2,650      147,393

DTE Energy Co.

      923      101,262

Public Service Enterprise Group, Inc.

      1,542      93,183

Sempra Energy

      977      146,511

WEC Energy Group, Inc.

      1,662      147,353
              999,983
            Shares            Value

Office REITs–0.11%

      

Alexandria Real Estate Equities, Inc.

      1,042      $       156,071

Boston Properties, Inc.

      566      37,061
              193,132

Oil & Gas Equipment & Services–0.06%

Baker Hughes Co., Class A

      1,555      47,583

Schlumberger Ltd.

      1,089      57,946
              105,529

Oil & Gas Exploration & Production–0.69%

ConocoPhillips

      4,808      496,907

Coterra Energy, Inc.

      4,219      105,348

Devon Energy Corp.

      1,740      93,821

Diamondback Energy, Inc.

      632      88,847

EOG Resources, Inc.

      1,255      141,840

Hess Corp.

      811      109,242

Pioneer Natural Resources Co.

      837      167,743
              1,203,748

Oil & Gas Refining & Marketing–0.56%

Marathon Petroleum Corp.

      3,991      493,287

Phillips 66

      2,194      225,017

Valero Energy Corp.

      2,030      267,412
              985,716

Oil & Gas Storage & Transportation–0.19%

Cheniere Energy, Inc.

      725      114,072

Kinder Morgan, Inc.

      7,553      128,854

Williams Cos., Inc. (The)

      2,674      80,487
              323,413

Packaged Foods & Meats–0.84%

Campbell Soup Co.

      1,234      64,810

Conagra Brands, Inc.

      1,604      58,402

General Mills, Inc.

      3,936      312,951

Hershey Co. (The)

      833      198,521

Hormel Foods Corp.

      2,055      91,201

JM Smucker Co. (The)

      687      101,601

Kellogg Co.

      2,143      141,309

Kraft Heinz Co. (The)

      4,161      162,029

Mondelez International, Inc., Class A

      3,151      205,382

Tyson Foods, Inc., Class A

      2,110      124,996
              1,461,202

Paper Packaging–0.08%

Amcor PLC

      5,945      66,228

International Paper Co.

      1,770      64,410
              130,638

Personal Products–0.03%

Estee Lauder Cos., Inc. (The), Class A

      214      52,013

Pharmaceuticals–3.11%

      

Bristol-Myers Squibb Co.

      8,838      609,468

Eli Lilly and Co.

      3,747      1,166,141

Johnson & Johnson

      8,183      1,254,127

Merck & Co., Inc.

      13,938      1,480,773

Pfizer, Inc.

      19,012      771,317

Royalty Pharma PLC, Class A

      1,436      51,481
 

 

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

 

7   Invesco Income Advantage U.S. Fund

            Shares            Value

Pharmaceuticals–(continued)

      

Zoetis, Inc.

      570      $         95,190
              5,428,497

Property & Casualty Insurance–0.75%

Allstate Corp. (The)

      1,490      191,882

Chubb Ltd.

      1,647      347,550

Markel Corp.(b)

      36      47,875

Progressive Corp. (The)

      3,238      464,718

Travelers Cos., Inc. (The)

      1,401      259,353
              1,311,378

Railroads–0.43%

CSX Corp.

      7,703      234,864

Norfolk Southern Corp.

      744      167,266

Union Pacific Corp.

      1,706      353,620
              755,750

Real Estate Services–0.05%

CBRE Group, Inc., Class A(b)

      986      83,948

Regional Banks–0.25%

      

Fifth Third Bancorp

      879      31,908

KeyCorp

      2,470      45,176

M&T Bank Corp.

      379      58,855

PNC Financial Services Group, Inc. (The)

      443      69,959

Regions Financial Corp.

      2,176      50,744

SVB Financial Group(b)

      172      49,555

Truist Financial Corp.

      2,823      132,540
              438,737

Research & Consulting Services–0.14%

CoStar Group, Inc.(b)

      3,502      247,451

Residential REITs–0.10%

      

AvalonBay Communities, Inc.

      399      68,836

Equity Residential

      997      62,332

Essex Property Trust, Inc.

      182      41,507
              172,675

Restaurants–0.83%

Chipotle Mexican Grill, Inc.(b)

      73      108,849

McDonald’s Corp.

      3,606      951,659

Starbucks Corp.

      2,842      290,140

Yum! Brands, Inc.

      804      102,237
              1,452,885

Retail REITs–0.09%

Realty Income Corp.

      1,835      117,348

Simon Property Group, Inc.

      328      40,046
              157,394

Semiconductor Equipment–0.40%

Applied Materials, Inc.

      2,274      264,125

Enphase Energy, Inc.(b)

      472      99,370

KLA Corp.

      426      161,616

Lam Research Corp.

      366      177,880
              702,991

Semiconductors–2.53%

Advanced Micro Devices, Inc.(b)

      2,035      159,910

Analog Devices, Inc.

      3,609      662,143
            Shares            Value

Semiconductors–(continued)

      

Broadcom, Inc.

      1,506      $       895,001

GLOBALFOUNDRIES, Inc.(b)

      600      39,204

Microchip Technology, Inc.

      951      77,059

Micron Technology, Inc.

      4,452      257,415

NVIDIA Corp.

      1,875      435,300

ON Semiconductor Corp.(b)

      3,665      283,708

QUALCOMM, Inc.

      2,973      367,255

Skyworks Solutions, Inc.

      556      62,033

Texas Instruments, Inc.

      6,882      1,179,919
              4,418,947

Soft Drinks–0.91%

Coca-Cola Co. (The)

      8,959      533,150

Keurig Dr Pepper, Inc.

      3,313      114,464

Monster Beverage Corp.(b)

      872      88,735

PepsiCo, Inc.

      4,914      852,726
              1,589,075

Specialized REITs–0.69%

American Tower Corp.

      804      159,200

Crown Castle, Inc.

      1,146      149,840

Digital Realty Trust, Inc.

      840      87,553

Equinix, Inc.

      226      155,549

Extra Space Storage, Inc.

      417      68,659

Public Storage

      478      142,898

SBA Communications Corp., Class A

      508      131,750

VICI Properties, Inc.

      5,368      179,989

Weyerhaeuser Co.

      4,249      132,781
              1,208,219

Specialty Chemicals–0.15%

Albemarle Corp.

      493      125,375

Celanese Corp.

      369      42,889

DuPont de Nemours, Inc.

      1,302      95,085
              263,349

Specialty Stores–0.09%

Ulta Beauty, Inc.(b)

      287      148,896

Steel–0.34%

      

Nucor Corp.

      3,593      601,612

Systems Software–2.47%

      

Crowdstrike Holdings, Inc., Class A(b)

      962      116,104

Fortinet, Inc.(b)

      1,039      61,758

Gen Digital, Inc.

      943      18,398

Microsoft Corp.

      10,464      2,609,929

Oracle Corp.

      11,344      991,466

Palo Alto Networks, Inc.(b)(c)

      1,896      357,149

ServiceNow, Inc.(b)

      236      101,992

VMware, Inc., Class A(b)

      562      61,893
              4,318,689

Technology Hardware, Storage & Peripherals–1.11%

Apple, Inc.

      11,327      1,669,713

Hewlett Packard Enterprise Co.

      5,289      82,561

HP, Inc.

      3,255      96,088

NetApp, Inc.

      382      24,658

Seagate Technology Holdings PLC

      633      40,867
 

 

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

 

8   Invesco Income Advantage U.S. Fund

     

    

      Shares      

      Value

Technology Hardware, Storage & Peripherals–(continued)

Western Digital Corp.(b)

      663      $         25,512
              1,939,399

Tobacco–0.55%

Altria Group, Inc.

      10,788      500,887

Philip Morris International, Inc. (Switzerland)

      4,792      466,261
              967,148

Trading Companies & Distributors–0.11%

Fastenal Co.

      1,843      95,025

W.W. Grainger, Inc.

      142      94,917
              189,942

Trucking–0.11%

Old Dominion Freight Line, Inc.

      579      196,432

Water Utilities–0.04%

      

American Water Works Co., Inc.

      526      73,840

Wireless Telecommunication Services–0.42%

T-Mobile US, Inc.(b)(c)

      5,164      734,217

Total Common Stocks & Other Equity Interests

      

(Cost $89,992,307)

             90,461,429
     Principal
Amount		       

Equity Linked Notes–30.59%

      

Diversified Banks–21.89%

      

Bank of Montreal (S&P 500® Index) (Canada),

      

22.93%, 03/23/2023(d)

    $   3,974,000      3,773,979

25.94%, 04/04/2023(d)

      3,951,000      3,875,343

BNP Paribas Issuance B.V. (S&P 500® Index) (France),

      

24.50%, 03/09/2023(d)

      3,949,000      3,890,696

22.63%, 03/13/2023(d)

      3,922,000      3,787,471

Canadian Imperial Bank of Commerce (S&P 500® Index) (Canada),

      

23.25%, 03/02/2023(d)

      3,846,000      3,913,121

22.95%, 04/12/2023(d)

      3,933,000      3,853,526

Citigroup Global Markets Holdings, Inc. (S&P 500® Index), 22.23%, 03/31/2023(d)

      4,048,000      3,847,239

Citigroup Inc. (S&P 500® Index), 22.72%, 03/29/2023(d)

      3,996,000      3,752,876

JPMorgan Chase & Co. (S&P 500® Index), 21.85%, 03/17/2023(d)

      4,009,000      3,721,797

Royal Bank of Canada (S&P 500® Index) (Canada), 20.83%, 03/15/2023(d)

      3,964,000      3,831,701
              38,247,749

Investment Abbreviations:

 

ADR – American Depositary Receipt
REIT – Real Estate Investment Trust
      Principal
Amount		      Value  

Diversified Capital Markets–2.16%

 

Credit Suisse AG (S&P 500® Index) (Switzerland), 24.00%, 03/27/2023(d)

    $ 3,957,000      $ 3,779,158  

 

  

Investment Banking & Brokerage–6.54%

 

Goldman Sachs Group, Inc. (The) (S&P 500® Index), 22.27%, 04/10/2023(d)

      3,920,000        3,784,334  

 

  

Nomura Holdings, Inc. (S&P 500® Index) (Japan),

      

21.95%, 03/07/2023(d)

      3,923,000        3,873,115  

 

  

21.97%, 03/21/2023(d)

      3,965,000        3,772,200  

 

  
        11,429,649  

 

  

Total Equity Linked Notes (Cost $55,357,000)

 

      53,456,556  

 

  
     Shares         

Money Market Funds–21.73%

      

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(e)(f)

      13,352,125        13,352,125  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(e)(f)

      9,360,592        9,362,464  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(e)(f)

      15,259,571        15,259,571  

 

  

Total Money Market Funds
(Cost $37,971,586)

 

      37,974,160  

 

  

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-104.08%
(Cost $183,320,893)

 

      181,892,145  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–1.12%

      

Invesco Private Government Fund, 4.58%(e)(f)(g)

      550,213        550,213  

 

  

Invesco Private Prime Fund,
4.83%(e)(f)(g)

      1,414,549        1,414,832  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $1,965,045)

 

      1,965,045  

 

  

TOTAL INVESTMENTS IN SECURITIES–105.20%
(Cost $185,285,938)

 

      183,857,190  

 

  

OTHER ASSETS LESS LIABILITIES–(5.20)%

 

      (9,081,815 ) 

 

  

NET ASSETS–100.00%

       $ 174,775,375  

 

  

 

 

 

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

 

9   Invesco Income Advantage U.S. Fund

Notes to Schedule of Investments:

 

(a)

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

(b)

Non-income producing security.

(c) 

All or a portion of this security was out on loan at February 28, 2023.

(d)

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at February 28, 2023 was $53,456,556, which represented 30.59% of the Fund’s Net Assets.

(e) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

      Value
August 31, 2022		   Purchases
at Cost		   Proceeds
from Sales		   Change in
Unrealized
Appreciation
(Depreciation)		   Realized
Gain		   Value
February 28, 2023		   Dividend Income
Investments in Affiliated Money Market Funds:                                                         

Invesco Government & Agency Portfolio, Institutional Class

      $12,724,904        $12,746,793         $(12,119,572 )      $       -       $       -         $13,352,125         $221,653    

Invesco Liquid Assets Portfolio, Institutional Class

      8,914,335       9,104,853       (8,656,838 )      (634)         748       9,362,464       160,552  

Invesco Treasury Portfolio, Institutional Class

      14,542,747       14,567,764       (13,850,940 )      -       -       15,259,571       253,020  
Investments Purchased with Cash Collateral from Securities on Loan:                                                         

Invesco Private Government Fund

      578,617       16,789,444       (16,817,848 )      -       -       550,213       21,511*  

Invesco Private Prime Fund

      1,487,872       38,996,855       (39,070,198 )      -       303       1,414,832       59,833*  

Total

      $38,248,475       $92,205,709       $(90,515,396 )      $(634)       $1,051       $39,939,205       $716,569  

 

  *

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

 

(f)

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(g) 

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

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Financials

      34.70 % 

Information Technology

      10.93  

Health Care

      8.71  

Communication Services

      6.90  

Consumer Staples

      4.65  

Industrials

      4.34  

Consumer Discretionary

      4.06  

Energy

      3.48  

Other Sectors, Each Less than 2% of Net Assets

      4.58  

Money Market Funds Plus Other Assets Less Liabilities

      17.65  

 

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

 

10   Invesco Income Advantage U.S. Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $ 145,349,307)*

    $ 143,917,985  

 

  

Investments in affiliated money market funds, at value
(Cost $ 39,936,631)

      39,939,205  

 

  

Cash

      17,354  

 

  

Receivable for:

   

Fund shares sold

      41,544  

 

  

Dividends

      310,524  

 

  

Interest

      594,042  

 

  

Investment for trustee deferred compensation and retirement plans

      89,264  

 

  

Other assets

      41,951  

 

  

Total assets

      184,951,869  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      7,853,000  

 

  

Fund shares reacquired

      95,989  

 

  

Collateral upon return of securities loaned

      1,965,045  

 

  

Accrued fees to affiliates

      94,124  

 

  

Accrued trustees’ and officers’ fees and benefits

      1,126  

 

  

Accrued other operating expenses

      70,784  

 

  

Trustee deferred compensation and retirement plans

      96,426  

 

  

Total liabilities

      10,176,494  

 

  

Net assets applicable to shares outstanding

    $ 174,775,375  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 200,553,841  

 

  

Distributable earnings (loss)

      (25,778,466 ) 

 

  
   $ 174,775,375  

 

  

Net Assets:

   

Class A

    $ 121,860,482  

 

  

Class C

    $ 2,668,882  

 

  

Class R

    $ 530,257  

 

  

Class Y

    $ 8,255,735  

 

  

Investor Class

    $ 30,895,227  

 

  

Class R5

    $ 10,535,676  

 

  

Class R6

    $ 29,116  

 

  

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

 

Class A

      13,143,776  

 

  

Class C

      293,182  

 

  

Class R

      57,485  

 

  

Class Y

      886,396  

 

  

Investor Class

      3,319,353  

 

  

Class R5

      1,129,962  

 

  

Class R6

      3,123  

 

  

Class A:

   

Net asset value per share

    $ 9.27  

 

  

Maximum offering price per share
(Net asset value of $9.27 ÷ 94.50%)

    $ 9.81  

 

  

Class C:

   

Net asset value and offering price per share

    $ 9.10  

 

  

Class R:

   

Net asset value and offering price per share

    $ 9.22  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 9.31  

 

  

Investor Class:

   

Net asset value and offering price per share

    $ 9.31  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 9.32  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 9.32  

 

  

 

*

At February 28, 2023, securities with an aggregate value of $1,913,313 were on loan to brokers.

 

 

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

 

11   Invesco Income Advantage U.S. Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Interest

    $ 5,556,583  

 

  

Dividends (net of foreign withholding taxes of $67)

      947,037  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $4,327)

      639,552  

 

  

Total investment income

      7,143,172  

 

  

Expenses:

   

Advisory fees

      518,059  

 

  

Administrative services fees

      12,066  

 

  

Custodian fees

      4,552  

 

  

Distribution fees:

   

Class A

      152,211  

 

  

Class C

      13,709  

 

  

Class R

      1,234  

 

  

Investor Class

      36,689  

 

  

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

      145,140  

 

  

Transfer agent fees – R5

      1,592  

 

  

Transfer agent fees – R6

      4  

 

  

Trustees’ and officers’ fees and benefits

      7,472  

 

  

Registration and filing fees

      51,134  

 

  

Reports to shareholders

      12,508  

 

  

Professional services fees

      23,621  

 

  

Other

      5,840  

 

  

Total expenses

      985,831  

 

  

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

      (104,019 ) 

 

  

Net expenses

      881,812  

 

  

Net investment income

      6,261,360  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (7,802,901 ) 

 

  

Affiliated investment securities

      1,051  

 

  
     (7,801,850 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      3,841,435  

 

  

Affiliated investment securities

      (634 ) 

 

  

Foreign currencies

      3  

 

  
     3,840,804  

 

  

Net realized and unrealized gain (loss)

      (3,961,046 ) 

 

  

Net increase in net assets resulting from operations

    $ 2,300,314  

 

  

 

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

 

12   Invesco Income Advantage U.S. Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,
2023		     August 31,
2022		  

 

  

Operations:

     

Net investment income

    $ 6,261,360     $ 10,889,426  

 

  

Net realized gain (loss)

      (7,801,850 )      (17,402,532 ) 

 

  

Change in net unrealized appreciation (depreciation)

      3,840,804       (13,263,143 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      2,300,314       (19,776,249 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (4,172,441 )      (21,961,088 ) 

 

  

Class C

      (83,465 )      (511,479 ) 

 

  

Class R

      (16,359 )      (87,565 ) 

 

  

Class Y

      (284,754 )      (1,299,283 ) 

 

  

Investor Class

      (1,011,611 )      (5,427,106 ) 

 

  

Class R5

      (368,332 )      (1,794,930 ) 

 

  

Class R6

      (1,023 )      (5,414 ) 

 

  

Total distributions from distributable earnings

      (5,937,985 )      (31,086,865 ) 

 

  

Share transactions–net:

     

Class A

      (685,582 )      10,520,938  

 

  

Class C

      (216,506 )      71,260  

 

  

Class R

      47,682       (50,163 ) 

 

  

Class Y

      155,445       2,073,118  

 

  

Investor Class

      1,384,913       2,072,402  

 

  

Class R5

      351,378       1,583,561  

 

  

Class R6

      697       942  

 

  

Net increase in net assets resulting from share transactions

      1,038,027       16,272,058  

 

  

Net increase (decrease) in net assets

      (2,599,644 )      (34,591,056 ) 

 

  

Net assets:

     

Beginning of period

      177,375,019       211,966,075  

 

  

End of period

    $ 174,775,375     $ 177,375,019  

 

  

 

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

 

13   Invesco Income Advantage U.S. Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                                                        

Six months ended 02/28/23

     $ 9.46     $ 0.33     $ (0.20 )     $ 0.13     $ (0.32 )     $ -     $ (0.32 )     $ 9.27       1.40 %     $ 121,860       1.04 %(d)       1.16 %(d)       7.23 %(d)       18 %

Year ended 08/31/22

       12.29       0.59       (1.64 )       (1.05 )       (0.59 )       (1.19 )       (1.78 )       9.46       (9.88 )       125,096       1.05       1.14       5.52       44

Year ended 08/31/21

       10.24       0.13       2.07       2.20       (0.15 )       -       (0.15 )       12.29       21.70       150,436       1.16       1.17       1.15       143

Year ended 08/31/20

       10.43       0.17       (0.20 )       (0.03 )       (0.16 )       -       (0.16 )       10.24       (0.15 )       136,770       1.18       1.18       1.63       122

Year ended 08/31/19

       12.13       0.17       (1.54 )       (1.37 )       (0.13 )       (0.20 )       (0.33 )       10.43       (11.34 )       153,641       1.18       1.18       1.54       117

Year ended 08/31/18

       10.86       0.15       1.31       1.46       (0.19 )       -       (0.19 )       12.13       13.57       175,074       1.21       1.21       1.35       119

Class C

                                                        

Six months ended 02/28/23

       9.29       0.29       (0.20 )       0.09       (0.28 )       -       (0.28 )       9.10       0.98       2,669       1.79 (d)        1.91 (d)        6.48 (d)        18

Year ended 08/31/22

       12.07       0.51       (1.61 )       (1.10 )       (0.49 )       (1.19 )       (1.68 )       9.29       (10.51 )       2,942       1.80       1.89       4.77       44

Year ended 08/31/21

       10.06       0.04       2.04       2.08       (0.07 )       -       (0.07 )       12.07       20.74       3,748       1.91       1.92       0.40       143

Year ended 08/31/20

       10.24       0.09       (0.19 )       (0.10 )       (0.08 )       -       (0.08 )       10.06       (0.87 )       4,001       1.93       1.93       0.88       122

Year ended 08/31/19

       11.92       0.09       (1.53 )       (1.44 )       (0.04 )       (0.20 )       (0.24 )       10.24       (12.05 )       4,627       1.93       1.93       0.79       117

Year ended 08/31/18

       10.68       0.07       1.27       1.34       (0.10 )       -       (0.10 )       11.92       12.64       24,319       1.96       1.96       0.60       119

Class R

                                                        

Six months ended 02/28/23

       9.41       0.32       (0.21 )       0.11       (0.30 )       -       (0.30 )       9.22       1.27       530       1.29 (d)        1.42 (d)        6.98 (d)        18

Year ended 08/31/22

       12.23       0.57       (1.64 )       (1.07 )       (0.56 )       (1.19 )       (1.75 )       9.41       (10.13 )       492       1.30       1.39       5.27       44

Year ended 08/31/21

       10.19       0.10       2.06       2.16       (0.12 )       -       (0.12 )       12.23       21.39       691       1.41       1.42       0.90       143

Year ended 08/31/20

       10.38       0.14       (0.19 )       (0.05 )       (0.14 )       -       (0.14 )       10.19       (0.42 )       565       1.43       1.43       1.38       122

Year ended 08/31/19

       12.07       0.14       (1.53 )       (1.39 )       (0.10 )       (0.20 )       (0.30 )       10.38       (11.54 )       526       1.43       1.43       1.29       117

Year ended 08/31/18

       10.81       0.13       1.29       1.42       (0.16 )       -       (0.16 )       12.07       13.25       271       1.46       1.46       1.10       119

Class Y

                                                        

Six months ended 02/28/23

       9.51       0.35       (0.22 )       0.13       (0.33 )       -       (0.33 )       9.31       1.43       8,256       0.79 (d)        0.91 (d)        7.48 (d)        18

Year ended 08/31/22

       12.35       0.62       (1.64 )       (1.02 )       (0.63 )       (1.19 )       (1.82 )       9.51       (9.61 )       8,271       0.80       0.89       5.77       44

Year ended 08/31/21

       10.29       0.15       2.08       2.23       (0.17 )       -       (0.17 )       12.35       22.00       8,370       0.91       0.92       1.40       143

Year ended 08/31/20

       10.48       0.19       (0.19 )       0.00       (0.19 )       -       (0.19 )       10.29       0.12       7,344       0.93       0.93       1.88       122

Year ended 08/31/19

       12.19       0.20       (1.55 )       (1.35 )       (0.16 )       (0.20 )       (0.36 )       10.48       (11.14 )       8,322       0.93       0.93       1.79       117

Year ended 08/31/18

       10.91       0.18       1.32       1.50       (0.22 )       -       (0.22 )       12.19       13.89       10,450       0.96       0.96       1.60       119

Investor Class

                                                        

Six months ended 02/28/23

       9.50       0.33       (0.20 )       0.13       (0.32 )       -       (0.32 )       9.31       1.41       30,895       1.04 (d)        1.16 (d)        7.23 (d)        18

Year ended 08/31/22

       12.33       0.60       (1.64 )       (1.04 )       (0.60 )       (1.19 )       (1.79 )       9.50       (9.82 )       30,152       1.05       1.14       5.52       44

Year ended 08/31/21

       10.28       0.13       2.07       2.20       (0.15 )       -       (0.15 )       12.33       21.61       36,982       1.16       1.17       1.15       143

Year ended 08/31/20

       10.47       0.17       (0.20 )       (0.03 )       (0.16 )       -       (0.16 )       10.28       (0.14 )       33,343       1.18       1.18       1.63       122

Year ended 08/31/19

       12.17       0.17       (1.54 )       (1.37 )       (0.13 )       (0.20 )       (0.33 )       10.47       (11.30 )       36,647       1.18       1.18       1.54       117

Year ended 08/31/18

       10.90       0.16       1.30       1.46       (0.19 )       -       (0.19 )       12.17       13.53       47,454       1.21       1.21       1.35       119

Class R5

                                                        

Six months ended 02/28/23

       9.52       0.35       (0.22 )       0.13       (0.33 )       -       (0.33 )       9.32       1.47       10,536       0.75 (d)        0.77 (d)        7.52 (d)        18

Year ended 08/31/22

       12.36       0.63       (1.64 )       (1.01 )       (0.64 )       (1.19 )       (1.83 )       9.52       (9.55 )       10,393       0.76       0.77       5.81       44

Year ended 08/31/21

       10.30       0.18       2.08       2.26       (0.20 )       -       (0.20 )       12.36       22.23       11,702       0.72       0.72       1.59       143

Year ended 08/31/20

       10.50       0.21       (0.20 )       0.01       (0.21 )       -       (0.21 )       10.30       0.26       9,498       0.74       0.74       2.07       122

Year ended 08/31/19

       12.21       0.22       (1.56 )       (1.34 )       (0.17 )       (0.20 )       (0.37 )       10.50       (10.96 )       11,073       0.75       0.75       1.97       117

Year ended 08/31/18

       10.93       0.20       1.32       1.52       (0.24 )       -       (0.24 )       12.21       14.06       12,374       0.79       0.79       1.77       119

Class R6

                                                        

Six months ended 02/28/23

       9.51       0.35       (0.21 )       0.14       (0.33 )       -       (0.33 )       9.32       1.57       29       0.75 (d)        0.77 (d)        7.52 (d)        18

Year ended 08/31/22

       12.36       0.63       (1.65 )       (1.02 )       (0.64 )       (1.19 )       (1.83 )       9.51       (9.64 )       29       0.76       0.77       5.81       44

Year ended 08/31/21

       10.30       0.17       2.09       2.26       (0.20 )       -       (0.20 )       12.36       22.23       37       0.72       0.72       1.59       143

Year ended 08/31/20

       10.49       0.21       (0.19 )       0.02       (0.21 )       -       (0.21 )       10.30       0.35       107       0.73       0.73       2.08       122

Year ended 08/31/19

       12.20       0.22       (1.55 )       (1.33 )       (0.18 )       (0.20 )       (0.38 )       10.49       (10.96 )       1,317       0.73       0.73       1.99       117

Year ended 08/31/18

       10.93       0.21       1.30       1.51       (0.24 )       -       (0.24 )       12.20       14.00       1,301       0.75       0.75       1.81       119

 

(a) 

Calculated using average shares outstanding.

(b) 

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

(c) 

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

(d) 

Annualized.

 

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

 

14   Invesco Income Advantage U.S. Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

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

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

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

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

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

A.

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

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

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

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.

 

15   Invesco Income Advantage U.S. Fund

  

Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

C.

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

D.

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

E.

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

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

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

F.

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

G.

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

H.

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

I.

Equity-Linked Notes – The Fund may invest in Equity-Linked Notes (ELNs). ELNs are hybrid derivative-type instruments, in a single note form, that are specially designed to combine the characteristics of one or more reference securities (such as a single stock, an exchange traded fund, exchange-traded note, or an index or basket of securities (underlying securities)) and a related equity derivative, such as a put or call option. Generally, when purchasing an ELN, the Fund pays the counterparty the current value of the underlying securities plus a commission. Upon the maturity of the note, the Fund generally receives the par value of the note plus a return based on the appreciation of the underlying securities. Investments in ELNs possess the risks associated with the underlying securities, such as management risk, market risk and, as applicable, foreign securities and currency risks. In addition, as a note, ELNs are also subject to certain debt securities risks, such as interest rate and credit risk. An investment in an ELN also bears the risk that the ELN issuer will default or become bankrupt. In such an event, the Fund may have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment. As the holder of an ELN, the Fund generally has no rights to the underlying securities, including no voting rights or rights to receive dividends. Should the prices of the underlying securities move in an unexpected manner, the Fund may not achieve the anticipated benefits of its ELN investments, and it may realize losses, which could be significant and could include the Fund’s entire principal investment.

J.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower

 

16   Invesco Income Advantage U.S. Fund

  

did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

K.

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets    Rate  

First $ 250 million

      0.600 % 

Next $250 million

      0.575 % 

Next $500 million

      0.550 % 

Next $1.5 billion

      0.525 % 

Next $2.5 billion

      0.500 % 

Next $2.5 billion

      0.475 % 

Next $2.5 billion

      0.450 % 

Over $10 billion

      0.425 % 

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.60%.

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

The Adviser has contractually agreed, through at least December 31, 2023, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares to 1.06%, 1.81%, 1.31%, 0.81%, 1.06%, 0.81% and 0.81%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees.

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

For the six months ended February 28, 2023, the Adviser waived advisory fees of $19,189 and reimbursed class level expenses of $60,358, $1,352, $246, $3,986, $14,590, $0 and $0 of Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares, respectively.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C, Class R and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares, 0.50% of the average daily net assets of Class R shares, and 0.25% of the average daily net assets of Investor Class shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including

 

17   Invesco Income Advantage U.S. Fund

asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $2,023 in front-end sales commissions from the sale of Class A shares and $0 and $0 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended February 28, 2023, the Fund incurred $2,378 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1        Level 2        Level 3        Total  

Investments in Securities

                                          

Common Stocks & Other Equity Interests

    $ 90,461,429        $ -          $-        $ 90,461,429  

Equity Linked Notes

      -          53,456,556            -          53,456,556  

Money Market Funds

      37,974,160          1,965,045            -          39,939,205  

Total Investments

    $ 128,435,589        $ 55,421,601          $-        $ 183,857,190  

NOTE 4–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $4,298.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

 

18   Invesco Income Advantage U.S. Fund

The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

Capital Loss Carryforward*  
Expiration    Short-Term        Long-Term      Total  

Not subject to expiration

    $ 17,159,743        $-      $ 17,159,743  

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $16,998,450 and $20,368,477, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

Aggregate unrealized appreciation of investments

    $ 7,105,260  

 

  

Aggregate unrealized (depreciation) of investments

      (8,861,617 ) 

 

  

Net unrealized appreciation (depreciation) of investments

    $ (1,756,357 ) 

 

  

Cost of investments for tax purposes is $185,613,547.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      259,432     $ 2,449,739       383,872     $ 3,973,992  

 

  

Class C

      35,460       325,814       43,257       442,552  

 

  

Class R

      5,484       50,698       14,716       164,345  

 

  

Class Y

      69,703       651,325       250,812       2,700,981  

 

  

Investor Class

      307,439       2,927,527       53,761       596,971  

 

  

Class R5

      -       -       144       1,721  

 

  

Class R6

      -       -       1       12  

 

  

Issued as reinvestment of dividends:

         

Class A

      408,681       3,769,426       1,822,292       19,819,673  

 

  

Class C

      8,602       77,898       44,780       478,549  

 

  

Class R

      1,749       16,053       7,926       85,805  

 

  

Class Y

      25,145       233,030       99,278       1,081,056  

 

  

Investor Class

      104,877       971,409       478,585       5,224,624  

 

  

Class R5

      39,463       366,126       163,737       1,789,828  

 

  

Class R6

      76       709       91       930  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      16,058       149,685       24,145       265,210  

 

  

Class C

      (16,349 )      (149,685 )      (24,578 )      (265,210 ) 

 

  

Reacquired:

         

Class A

      (761,393 )      (7,054,432 )      (1,251,347 )      (13,537,937 ) 

 

  

Class C

      (51,171 )      (470,533 )      (57,295 )      (584,631 ) 

 

  

Class R

      (2,032 )      (19,069 )      (26,880 )      (300,313 ) 

 

  

Class Y

      (78,547 )      (728,910 )      (157,895 )      (1,708,919 ) 

 

  

Investor Class

      (267,162 )      (2,514,023 )      (356,873 )      (3,749,193 ) 

 

  

Class R5

      (1,652 )      (14,748 )      (18,499 )      (207,988 ) 

 

  

Class R6

      (1 )      (12 )      -       -  

 

  

Net increase in share activity

      103,862     $ 1,038,027       1,494,030     $ 16,272,058  

 

  

 

(a) 

6% of the outstanding shares of the Fund are owned by the Adviser.

 

19   Invesco Income Advantage U.S. Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

          ACTUAL  

HYPOTHETICAL

    (5% annual return before    

expenses)

     
    

Beginning

    Account Value    

(09/01/22)

  

Ending

    Account Value    

(02/28/23)1

  

Expenses

    Paid During    

Period2

  

Ending

    Account Value    

(02/28/23)

  

Expenses

    Paid During    

Period2

  

    Annualized    

Expense

Ratio

Class A

   $1,000.00   $1,015.10   $5.20   $1,019.64   $5.21   1.04%

Class C

     1,000.00     1,010.90     8.92     1,015.92     8.95   1.79    

Class R

     1,000.00     1,013.80     6.44     1,018.40     6.46   1.29    

Class Y

     1,000.00     1,015.40     3.95     1,020.88     3.96   0.79    

Investor Class

     1,000.00     1,014.10     5.19     1,019.64     5.21   1.04    

Class R5

     1,000.00     1,015.70     3.75     1,021.08     3.76   0.75    

Class R6

     1,000.00     1,016.80     3.75     1,021.08     3.76   0.75    

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

20   Invesco Income Advantage U.S. Fund

 

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

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

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

 

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SEC file number(s): 811-09913 and 333-36074   Invesco Distributors, Inc.    LVEY-SAR-1

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Semiannual Report to Shareholders    February 28, 2023

Invesco Master Loan Fund

Nasdaq:

R6: MLNFX

 

    

 

2    Fund Performance
4    Schedule of Investments
19    Financial Statements
22            Financial Highlights
23    Notes to Financial Statements
30    Fund Expenses

 

 

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

Unless otherwise noted, all data is provided by Invesco.

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

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Fund Performance

 

   

Performance summary

 

   

Fund vs. Indexes

         

Total returns, 8/31/22 to 2/28/23, at net asset value (NAV).

 

Class R6 Shares

      3.37 % 

JP Morgan Leveraged Loan Index▼

      4.01  

Credit Suisse Leveraged Loan Index▼

      3.33  

Source(s): ▼Bloomberg LP

   

The JP Morgan Leveraged Loan Index tracks the performance of the US-dollar-denominated senior floating rate bank loans.

 

The Credit Suisse Leveraged Loan Index represents tradable, senior-secured US-dollar-denominated, noninvestment-grade loans.

 

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

 

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

 

 

 

 

For more information about your Fund

 

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

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

 

 

2

   Invesco Master Loan Fund

 Average Annual Total Returns

 

 As of 2/28/23   

 Class R6 Shares

         

 Inception (10/31/07)

      4.00 % 

 10 Years

      3.17  

   5 Years

      1.31  

   1 Year

      2.87  

Effective May 24, 2019, Class A shares of the Oppenheimer Master Loan Fund LLC, (the predecessor fund), were reorganized into Class R6 shares of the Invesco Oppenheimer Master Loan Fund. The Fund was subsequently renamed the Invesco Master Loan Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class R6 shares are those for Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

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

    Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

 

 

3

   Invesco Master Loan Fund

Schedule of Investments

February 28, 2023

(Unaudited)

 

    

Interest

Rate

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Variable Rate Senior Loan Interests–77.98%(b)(c)

               

Aerospace & Defense–3.45%

               

Brown Group Holding LLC (Signature Aviation US Holdings, Inc.)

               

Incremental Term Loan B-2 (1 mo. TSFR + 3.75%)

      8.37%        07/01/2029        $        266      $ 266,245  

 

  

Term Loan (1 mo. USD LIBOR + 2.50%)

      7.13%        06/07/2028                       511        507,371  

 

  

Castlelake Aviation Ltd.

               

Term Loan (3 mo. USD LIBOR + 2.75%)

      7.52%        10/22/2026           719        713,711  

 

  

Term Loan(d)

      –        10/22/2027           132        131,177  

 

  

Dynasty Acquisition Co., Inc.

               

Term Loan B-1 (1 mo. USD LIBOR + 3.50%)

      8.22%        04/08/2026           581        569,812  

 

  

Term Loan B-2 (1 mo. USD LIBOR + 3.50%)

      8.12%        04/08/2026           312        306,350  

 

  

Gogo Intermediate Holdings LLC, Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.70%        04/30/2028           103        102,976  

 

  

Greenrock Finance, Inc.

               

Delayed Draw Term Loan (3 mo. TSFR + 4.35%)

      0.00%        06/21/2029           113        112,093  

 

  

Term Loan B (3 mo. TSFR + 4.25%)

      8.93%        06/21/2029           244        242,868  

 

  

KKR Apple Bidco LLC

               

First Lien Term Loan (1 mo. TSFR + 2.75%)

      7.38%        09/22/2028           813        809,455  

 

  

First Lien Term Loan (1 mo. TSFR + 4.00%)

      8.62%        09/22/2028           133        133,252  

 

  

Second Lien Term Loan (1 mo. USD LIBOR + 5.75%)

      10.38%        09/21/2029           73        71,173  

 

  

Peraton Corp., Second Lien Term Loan (1 mo. USD LIBOR + 7.75%)

      12.65%        02/01/2029           434        426,452  

 

  

Propulsion (BC) Finco S.a.r.l. (Spain), Term Loan B (3 mo. TSFR + 4.00%)

      8.58%        09/13/2029           284        281,582  

 

  

Rand Parent LLC (Atlas Air), Term Loan B(d)

      –        02/09/2030           255        248,643  

 

  

Transdigm, Inc.

               

Term Loan H (1 mo. TSFR + 3.25%)

      7.83%        02/28/2027           23        22,926  

 

  

Term Loan I (3 mo. SOFR+3.25%)

      7.82%        08/10/2028           360        358,793  

 

  
                     5,304,879  

 

  

Air Transport–2.97%

               

AAdvantage Loyalty IP Ltd. (American Airlines, Inc.), Term Loan (3 mo. USD LIBOR + 4.75%)

      9.56%        04/20/2028           1,509        1,549,642  

 

  

Air Canada (Canada), Term Loan (3 mo. USD LIBOR + 3.50%)

      8.37%        08/11/2028           147        147,172  

 

  

American Airlines, Inc., Term Loan(d)

      –        02/09/2028           273        266,046  

 

  

Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Term Loan (3 mo. USD LIBOR + 5.25%)

      10.00%        06/21/2027           626        652,571  

 

  

SkyMiles IP Ltd. (Delta Air Lines, Inc.), Term Loan (3 mo. USD LIBOR + 3.75%)

      8.56%        10/20/2027           144        149,056  

 

  

United Airlines, Inc., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.57%        04/21/2028           1,303        1,304,576  

 

  

WestJet Airlines Ltd. (Canada), Term Loan (1 mo. USD LIBOR + 3.00%)

      7.59%        12/11/2026           522        498,666  

 

  
                 4,567,729  

 

  

Automotive–2.39%

               

Adient PLC, Term Loan B-1 (1 mo. USD LIBOR + 3.25%)

      7.88%        04/10/2028           645        645,962  

 

  

American Axle & Manufacturing, Inc., Term Loan (1 mo. TSFR + 3.50%)

      8.16%        12/08/2029           117        116,986  

 

  

Autokiniton US Holdings, Inc., Term Loan B (1 mo. USD LIBOR + 4.50%)

      9.10%        04/06/2028           756        751,250  

 

  

BCA Marketplace (United Kingdom)

               

Second Lien Term Loan B (6 mo. SONIA+7.50%)

      11.43%        07/27/2029        GBP        185        117,746  

 

  

Term Loan B (6 mo. SONIA+4.75%)

      8.18%        07/28/2028        GBP        71        68,696  

 

  

DexKo Global, Inc.

               

Delayed Draw Term Loan (1 mo. EURIBOR + 4.00%)

      4.00%        10/04/2028        EUR        13        12,489  

 

  

First Lien Term Loan (1 mo. TSFR + 6.50%)(e)

      11.08%        10/04/2028           61        58,436  

 

  

Term Loan B (3 mo. EURIBOR + 4.00%)

      6.20%        10/04/2028        EUR        82        77,619  

 

  

Term Loan B (1 mo. EURIBOR + 4.00%)

      6.20%        10/04/2028        EUR        43        40,364  

 

  

Driven Holdings LLC, Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.74%        12/16/2028           150        146,876  

 

  

First Brands Group Intermediate LLC

               

Term Loan B (6 mo. TSFR + 5.00%)

      10.25%        03/30/2027           55        53,562  

 

  

Term Loan B(d)

      –        03/30/2027           391        375,020  

 

  

Garrett Borrowing LLC, Term Loan (3 mo. USD LIBOR + 3.25%)

      8.08%        04/30/2028           48        47,008  

 

  

Highline Aftermarket Acquisition LLC, Term Loan (1 mo. USD LIBOR + 4.50%)

      9.13%        11/09/2027           340        324,736  

 

  

 

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

 

4

   Invesco Master Loan Fund

    

Interest

Rate

    

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Automotive–(continued)

              

Mavis Tire Express Services TopCo L.P., First Lien Term Loan (1 mo. TSFR + 4.00%)

      8.73 %      05/04/2028        $        867      $ 841,535  

 

  
                3,678,285  

 

  

Beverage & Tobacco–0.71%

              

AI Aqua Merger Sub, Inc., Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.62 %      07/31/2028                       698        674,594  

 

  

Arctic Glacier U.S.A., Inc., Term Loan (3 mo. USD LIBOR + 3.50%)

      8.23 %      03/20/2024           261        242,595  

 

  

City Brewing Co. LLC, Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.33 %      03/31/2028           353        174,410  

 

  
                    1,091,599  

 

  

Brokers, Dealers & Investment Houses–0.15%

              

AqGen Island Intermediate Holdings, Inc., Second Lien Term Loan B (3 mo. USD LIBOR + 6.50%)

      11.31 %      08/05/2029           7        6,450  

 

  

Zebra Buyer LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.75 %      11/01/2028           230        228,662  

 

  
                235,112  

 

  

Building & Development–1.86%

              

Brookfield Retail Holdings VII Sub 3 LLC, Term Loan B (3 mo. USD LIBOR + 2.50%)

      7.22 %      08/27/2025           42        42,232  

 

  

Chariot Buyer LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88 %      11/03/2028           420        404,993  

 

  

Empire Today LLC, Term Loan B (1 mo. USD LIBOR + 5.00%)

      9.60 %      04/01/2028           582        471,468  

 

  

Icebox Holdco III, Inc., First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.23 %      12/22/2028           319        303,027  

 

  

LBM Holdings LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38 %      12/17/2027           56        51,096  

 

  

LHS Borrow LLC (Leaf Home Solutions), Term Loan (1 mo. TSFR + 4.75%)

      9.47 %      02/16/2029           422        348,783  

 

  

Mayfair Mall LLC, Term Loan (1 mo. USD LIBOR + 3.25%)(e)

      7.82 %      04/20/2023           215        196,866  

 

  

Oldcastle BuildingEnvelope, Inc., Term Loan B (3 mo. TSFR + 4.50%)

      9.18 %      04/29/2029           224        217,483  

 

  

Quikrete Holdings, Inc.

              

First Lien Term Loan (3 mo. USD LIBOR + 2.63%)

      7.26 %      02/01/2027           247        245,370  

 

  

Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.63 %      06/11/2028           309        308,449  

 

  

TAMKO Building Products LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.73 %      05/29/2026           266        262,890  

 

  
                2,852,657  

 

  

Business Equipment & Services–8.23%

              

Aegion Corp., Term Loan (1 mo. USD LIBOR + 4.75%)

      9.38 %      05/17/2028           160        156,692  

 

  

Allied Universal Holdco LLC (USAGM Holdco LLC/UNSEAM)

              

Term Loan (1 mo. USD LIBOR + 3.75%)

      8.47 %      05/12/2028           228        219,573  

 

  

Term Loan B (3 mo. EURIBOR + 3.75%)

      6.18 %      05/12/2028        EUR        243        243,555  

 

  

Asurion LLC (fka Asurion Corp.), Term Loan B-7 (1 mo. USD LIBOR + 3.00%)

      7.63 %      11/03/2024           271        270,629  

 

  

Camelot Finance L.P.

              

Incremental Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63 %      10/30/2026           491        490,312  

 

  

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63 %      10/30/2026           269        268,084  

 

  

Checkout Holding Corp., Term Loan

      0.00 %      06/30/2023           49        48,977  

 

  

Cimpress USA, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13 %      05/17/2028           340        309,590  

 

  

Constant Contact, Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.81 %      02/10/2028           465        440,791  

 

  

Corp. Service Co., Term Loan B (1 mo. TSFR + 3.25%)

      7.97 %      08/08/2029           248        248,183  

 

  

Creation Technologies, Inc., Term Loan B (3 mo. USD LIBOR + 5.50%)(e)

      10.28 %      10/05/2028           249        214,961  

 

  

Dakota Holding Corp.

              

First Lien Term Loan (1 mo. TSFR + 3.75%)

      8.37 %      04/09/2027           8        7,720  

 

  

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38 %      04/07/2028           181        170,378  

 

  

Dun & Bradstreet Corp. (The)

              

Incremental Term Loan B-2 (1 mo. TSFR + 3.25%)

      7.85 %      01/18/2029           131        130,252  

 

  

Term Loan (1 mo. USD LIBOR + 3.25%)

      7.87 %      02/06/2026           812        811,304  

 

  

EP Purchaser LLC (Entertainment Partners), Term Loan B (3 mo. USD LIBOR + 3.50%)

      8.23 %      11/06/2028           48        48,013  

 

  

Garda World Security Corp. (Canada)

              

Incremental Term Loan (1 mo. TSFR + 4.25%)

      8.81 %      02/01/2029           151        149,984  

 

  

Term Loan B-2 (1 mo. USD LIBOR + 4.25%)

      8.91 %      10/30/2026           834        834,626  

 

  

GI Revelation Acquisition LLC, First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63 %      05/12/2028           840        805,600  

 

  

Grandir (The Education Group) (France)

              

Delayed Draw Term Loan (3 mo. EURIBOR + 4.00%)

      6.70 %      09/29/2028        EUR        13        12,958  

 

  

Term Loan B-1 (3 mo. EURIBOR + 4.00%)

      6.70 %      09/29/2028        EUR        76        77,746  

 

  

ION Trading Technologies S.a.r.l. (Luxembourg), Term Loan B (3 mo. USD LIBOR + 4.75%)

      9.48 %      03/31/2028           341        321,153  

 

  

 

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

 

5

   Invesco Master Loan Fund

    

Interest

Rate

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Business Equipment & Services–(continued)

               

iQor US, Inc.

               

Term Loan (1 mo. USD LIBOR + 7.50%)

      12.13%        11/19/2024        $        478      $ 475,869  

 

  

Term Loan (1 mo. USD LIBOR + 7.50%)(e)

      12.13%        11/19/2025                       779        565,055  

 

  

Konecta (Kronosnet CX Bidco 2022, S.L.) (Spain), Term Loan (3 mo. EURIBOR + 5.75%)

      8.20%        09/30/2029        EUR        34        33,671  

 

  

Monitronics International, Inc.

               

Term Loan (3 mo. USD LIBOR + 7.50%)

(Acquired 08/30/2019-01/28/2021; Cost $1,349,406)(f)

      12.33%        03/29/2024           1,388        908,831  

 

  

Term Loan (1 mo. USD LIBOR + 6.00%)

(Acquired 04/27/2022; Cost $68,684)(e)(f)

      10.83%        07/03/2024           69        65,146  

 

  

Orchid Merger Sub II LLC, Term Loan (6 mo. TSFR + 4.75%)(e)

      9.48%        07/27/2027           516        446,194  

 

  

Prime Security Services Borrower LLC, First Lien Term Loan B-1 (3 mo. USD LIBOR + 2.75%)

      7.52%        09/23/2026           231        230,642  

 

  

Red Ventures LLC (New Imagitas, Inc.), Term Loan B-2 (1 mo. TSFR + 2.50%)

      9.25%        11/08/2024           726        725,761  

 

  

Skillsoft Corp., Term Loan (1 mo. TSFR + 4.75%)

      9.93%        07/14/2028           204        177,273  

 

  

Spin Holdco, Inc., Term Loan (3 mo. USD LIBOR + 4.00%)

      8.77%        03/04/2028           988        837,063  

 

  

Thevelia (US) LLC, First Lien Term Loan B (3 mo. TSFR + 4.00%)

      8.73%        06/17/2029           241        236,306  

 

  

Trans Union LLC, Term Loan (1 mo. USD LIBOR + 2.25%)

      6.88%        11/30/2028           417        415,189  

 

  

Verra Mobility Corp., Term Loan B (6 mo. USD LIBOR + 3.25%)

      7.88%        03/19/2028           507        507,021  

 

  

Virtusa Corp.

               

Incremental Term Loan B (1 mo. TSFR + 3.75%)

      8.47%        02/08/2029           279        277,623  

 

  

Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        02/11/2028           155        154,374  

 

  

WebHelp (France), Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.05%        08/04/2028           337        327,070  

 

  
                   12,664,169  

 

  

Cable & Satellite Television–3.64%

               

Altice Financing S.A. (Luxembourg), Term Loan (e)

      9.57%        10/31/2027           1,000        998,176  

 

  

Atlantic Broadband Finance LLC, Incremental Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.13%        09/01/2028           50        49,561  

 

  

CSC Holdings LLC, Term Loan B (1 mo. TSFR + 4.50%)

      9.06%        01/15/2028           31        29,345  

 

  

Numericable-SFR S.A. (France)

               

Incremental Term Loan B-13 (3 mo. USD LIBOR + 4.00%)

      8.86%        08/14/2026           520        506,304  

 

  

Term Loan B-12 (3 mo. USD LIBOR + 3.69%)

      8.52%        01/31/2026           379        367,940  

 

  

Telenet - LG, Term Loan AR (6 mo. USD LIBOR + 2.00%)

      6.59%        04/30/2028           660        646,256  

 

  

UPC - LG

               

Term Loan AT (1 mo. USD LIBOR + 2.25%)

      6.84%        04/30/2028           99        97,760  

 

  

Term Loan AX (1 mo. USD LIBOR + 2.93%)

      7.51%        01/31/2029           1,129        1,115,796  

 

  

Virgin Media 02 - LG (United Kingdom)

               

Term Loan N (1 mo. USD LIBOR + 2.50%)

      7.09%        01/31/2028           331        325,337  

 

  

Term Loan Q (1 mo. USD LIBOR + 3.25%)

      7.84%        01/31/2029           444        442,437  

 

  

Vodafone Ziggo - LG, Term Loan H (6 mo. EURIBOR + 3.00%)

      6.10%        01/31/2029        EUR        1,000        1,016,761  

 

  
                 5,595,673  

 

  

Chemicals & Plastics–4.28%

               

AkzoNoble Chemicals, Term Loan (3 mo. USD LIBOR + 2.75%)

      7.53%        10/01/2025           704        700,997  

 

  

Ascend Performance Materials Operations LLC, Term Loan (6 mo. TSFR + 4.75%)

      8.83%        08/27/2026           132        132,568  

 

  

Axalta Coating Systems U.S. Holdings, Inc., Term Loan B-4 (1 mo. TSFR + 3.00%)

      7.51%        12/20/2029           380        382,055  

 

  

BASF Construction Chemicals (Germany), Term Loan B-3 (3 mo. USD LIBOR + 3.50%)

      8.23%        09/29/2027           1,532        1,531,219  

 

  

BES (Discovery Purchaser Corp.), Second Lien Term Loan (3 mo. TSFR + 4.38%)

      8.96%        10/03/2029           147        141,629  

 

  

Charter NEX US, Inc., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.48%        12/01/2027           352        347,155  

 

  

Colouroz Investment LLC (Germany), PIK Second Lien Term Loan B-2, 5.75% PIK Rate, 9.07% Cash Rate(g)

      5.75%        09/21/2024           9        4,592  

 

  

Cyanco Intermediate 2 Corp., First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.13%        03/16/2025           433        426,647  

 

  

Eastman Tire Additives (River Buyer, Inc.), First Lien Term Loan (1 mo. USD LIBOR + 5.25%)

      9.98%        11/01/2028           446        407,213  

 

  

Fusion (Fusion UK Holding Ltd. & US HoldCo VAD, Inc.), Term Loan B (3 mo. TSFR + 3.75%)

      8.30%        05/28/2029           124        117,614  

 

  

Gemini HDPE LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.83%        12/31/2027           320        319,492  

 

  

H.B. Fuller Co., Term Loan B(d)

      –        02/08/2030           113        113,809  

 

  

ICP Group Holdings LLC, First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        12/29/2027           377        318,795  

 

  

Ineos US Finance LLC

               

Term Loan(d)

      –        11/08/2027           166        166,289  

 

  

Term Loan(d)

      –        02/09/2030           241        239,373  

 

  

Lummus Technology (Illuminate Buyer LLC), Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        06/30/2027           317        311,269  

 

  

Potters Industries LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%        12/14/2027           101        100,874  

 

  

 

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

 

6

   Invesco Master Loan Fund

    

Interest

Rate

    

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Chemicals & Plastics–(continued)

              

PQ Corp., Term Loan (3 mo. USD LIBOR + 2.50%)

      7.33 %      06/09/2028        $        204      $ 203,485  

 

  

Tronox Finance LLC, Incremental Term Loan B (3 mo. TSFR + 3.25%)

      7.83 %      03/03/2029           316        315,287  

 

  

W.R. Grace & Co., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.50 %      09/22/2028           306        304,640  

 

  
                6,585,002  

 

  

Clothing & Textiles–0.54%

              

ABG Intermediate Holdings 2 LLC

              

First Lien Term Loan B-1 (1 mo. TSFR + 3.50%)

      8.22 %      12/21/2028                       366        359,546  

 

  

Second Lien Term Loan (1 mo. TSFR + 6.00%)

      10.72 %      12/20/2029           130        121,123  

 

  

BK LC Lux SPV S.a.r.l. (Birkenstock), Term Loan B (1 mo. USD LIBOR + 3.25%)

      8.06 %      04/28/2028           356        353,533  

 

  
                834,202  

 

  

Conglomerates–0.36%

              

APi Group DE, Inc., Incremental Term Loan (1 mo. USD LIBOR + 2.75%)

      7.38 %      01/03/2029           144        144,358  

 

  

Safe Fleet Holdings LLC

              

Incremental First Lien Term Loan (1 mo. TSFR + 5.00%)(e)

      9.66 %      02/23/2029           59        58,976  

 

  

Term Loan B (1 mo. TSFR + 3.75%)

      8.41 %      02/17/2029           364        356,998  

 

  
                560,332  

 

  

Containers & Glass Products–1.15%

              

Berlin Packaging LLC, Term Loan B-5 (1 mo. USD LIBOR + 3.75%)

      8.48 %      03/11/2028           291        285,256  

 

  

Brook & Whittle Holding Corp., First Lien Term Loan (3 mo. TSFR + 4.00%)

      9.04 %      12/14/2028           267        245,204  

 

  

Keter Group B.V. (Netherlands), Term Loan B-1 (3 mo. EURIBOR + 4.25%)
(Acquired 04/29/2022; Cost $113,669)(f)

      6.74 %      10/31/2023        EUR        109        91,242  

 

  

LABL, Inc. (Multi-Color), Term Loan (1 mo. USD LIBOR + 5.00%)

      9.63 %      10/29/2028           663        648,169  

 

  

Logoplaste (Mar Bidco S.a.r.l.) (Portugal), Term Loan B (1 mo. USD LIBOR + 4.30%)

      9.03 %      07/07/2028           167        155,718  

 

  

Mold-Rite Plastics LLC (Valcour Packaging LLC)

              

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)(e)

      7.98 %      10/04/2028           151        132,420  

 

  

Second Lien Term Loan (6 mo. USD LIBOR + 7.00%)(e)

      11.23 %      10/04/2029           74        52,094  

 

  

Refresco Group N.V. (Netherlands), Term Loan B (3 mo. TSFR + 4.25%)

      9.01 %      07/12/2029           164        163,059  

 

  
                    1,773,162  

 

  

Cosmetics & Toiletries–0.80%

              

Bausch and Lomb, Inc., Term Loan (1 mo. TSFR + 3.25%)

      7.84 %      05/10/2027           779        763,611  

 

  

Coty, Inc., Term Loan B (3 mo. USD LIBOR + 2.25%)

      6.84 %      04/05/2025           120        119,882  

 

  

Rodenstock (Germany), Term Loan B (3 mo. EURIBOR + 5.00%)

      7.49 %      06/29/2028        EUR        302        273,538  

 

  

Wella (Rainbow FinCo S.a.r.l.), Term Loan B (6 mo. EURIBOR + 3.50%)

      6.70 %      02/24/2029        EUR        76        77,295  

 

  
                1,234,326  

 

  

Ecological Services & Equipment–0.50%

              

Anticimex (Sweden), Term Loan B-1 (3 mo. USD LIBOR + 3.50%)

      8.45 %      11/16/2028           312        308,808  

 

  

EnergySolutions LLC, Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48 %      05/11/2025           173        167,734  

 

  

Patriot Container Corp., First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.47 %      03/20/2025           114        107,963  

 

  

TruGreen L.P., Second Lien Term Loan (1 mo. USD LIBOR + 8.50%)(e)

      13.33 %      11/02/2028           256        184,403  

 

  
                768,908  

 

  

Electronics & Electrical–8.68%

              

Altar BidCo, Inc. (Brooks Automation, Inc.)

              

First Lien Term Loan (1 mo. TSFR + 3.35%)

      7.99 %      02/01/2029           98        95,357  

 

  

Second Lien Term Loan (6 mo. TSFR + 5.60%)

      10.49 %      02/01/2030           66        58,301  

 

  

AppLovin Corp., Term Loan (3 mo. TSFR + 3.00%)

      7.69 %      10/25/2028           393        390,321  

 

  

Boxer Parent Co., Inc., Term Loan B (1 mo. EURIBOR + 4.00%)

      6.43 %      10/02/2025        EUR        7        7,481  

 

  

Brave Parent Holdings, Inc., First Lien Term Loan (3 mo. USD LIBOR + 4.00%)

      8.63 %      04/18/2025           531        525,496  

 

  

CDK Global, Inc., First Lien Term Loan (3 mo. TSFR + 4.50%)

      9.08 %      07/06/2029           168        167,962  

 

  

CommerceHub, Inc., Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.78 %      01/01/2028           226        216,095  

 

  

Delta Topco, Inc. (Infoblox, Inc.), First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.15 %      12/01/2027           100        93,836  

 

  

Diebold Nixdorf, Inc.

              

Term Loan (1 mo. TSFR + 5.25%)

      9.97 %      07/15/2025           283        193,601  

 

  

Term Loan (1 mo. TSFR + 6.40%)

      11.63 %      07/15/2025           111        116,146  

 

  

Digi International, Inc., Term Loan (6 mo. USD LIBOR + 5.00%)(e)

      9.63 %      11/01/2028           273        273,318  

 

  

 

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

 

7

   Invesco Master Loan Fund

    

  Interest  

  Rate  

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Electronics & Electrical–(continued)

               

E2Open LLC, Term Loan (3 mo. USD LIBOR + 3.50%)

      8.08%        02/04/2028        $        360      $ 359,112  

 

  

Entegris, Inc., Term Loan B (1 mo. TSFR + 3.00%)

      7.62%        07/06/2029           424        425,153  

 

  

ETA Australia Holdings III Pty. Ltd. (Australia), First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.62%        05/06/2026           12        11,820  

 

  

EverCommerce, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        07/01/2028                       191             190,261  

 

  

Forcepoint, Term Loan (3 mo. USD LIBOR + 4.25%)

      9.08%        01/07/2028           106        99,955  

 

  

Go Daddy Operating Co. LLC, Term Loan (1 mo. SOFR+3.25%)

      7.87%        11/09/2029           24        23,648  

 

  

GoTo Group, Inc. (LogMeIn), First Lien Term Loan (1 mo. USD LIBOR + 4.75%)

      9.38%        08/31/2027           922        511,509  

 

  

Imperva, Inc.

               

Second Lien Term Loan (3 mo. USD LIBOR + 7.75%)

      12.65%        01/11/2027           73        54,334  

 

  

Term Loan (3 mo. USD LIBOR + 4.00%)

      8.86%        01/10/2026           71        60,378  

 

  

Inetum (Granite Fin Bidco SAS) (France), Term Loan B (3 mo. EURIBOR + 7.75%)

      7.06%        10/17/2028        EUR        93        93,611  

 

  

Infinite Electronics, Second Lien Term Loan (3 mo. USD LIBOR + 7.00%)

      11.73%        03/02/2029           64        58,134  

 

  

Informatica Corp., Term Loan (1 mo. USD LIBOR + 2.75%)

      7.44%        10/15/2028           587        586,471  

 

  

Internap Corp., Second Lien Term Loan(d)(e)

      –        05/08/2025           856        427,752  

 

  

Mavenir Systems, Inc., Term Loan B (3 mo. USD LIBOR + 4.75%)

      9.65%        08/13/2028           646        435,913  

 

  

McAfee Enterprise

               

Second Lien Term Loan (1 mo. USD LIBOR + 8.25%)

      13.08%        07/27/2029           246        193,654  

 

  

Term Loan B (1 mo. USD LIBOR + 4.75%)

      9.58%        07/27/2028           246        210,247  

 

  

McAfee LLC, Term Loan B-1 (1 mo. TSFR + 4.50%)

      8.42%        03/01/2029           378        355,136  

 

  

Mirion Technologies, Inc., Term Loan (6 mo. USD LIBOR + 2.75%)

      7.48%        10/20/2028           344        342,188  

 

  

Natel Engineering Co., Inc., Term Loan (3 mo. USD LIBOR + 6.25%)
(Acquired 04/16/2020-02/01/2022; Cost $670,757)(f)

      10.42%        04/29/2026           738        662,342  

 

  

NCR Corp., Term Loan B (3 mo. USD LIBOR + 2.50%)

      7.33%        08/28/2026           220        218,289  

 

  

Oberthur Tech, Term Loan B (3 mo. USD LIBOR + 4.50%)

      9.23%        01/09/2026           500        496,055  

 

  

Open Text Corp. (Canada), Incremental Term Loan B(d)

      –        08/27/2029           693        693,402  

 

  

Optiv, Inc., Term Loan (3 mo. USD LIBOR + 3.25%)

      7.42%        02/01/2024           932        926,789  

 

  

Project Accelerate Parent LLC, First Lien Term Loan (3 mo. USD LIBOR + 4.25%)(e)

      8.88%        01/02/2025           368        358,833  

 

  

Quest Software US Holdings, Inc.

               

Second Lien Term Loan (3 mo. TSFR + 7.50%)

      12.33%        01/20/2030           43        27,981  

 

  

Term Loan B (3 mo. TSFR + 4.25%)

      9.08%        01/19/2029           926        800,728  

 

  

Riverbed Technology, Inc., PIK Term Loan, 2.00% PIK Rate, 10.83% Cash Rate (Acquired 12/06/2021-02/07/2023; Cost $1,315,200)(f)(g)

      2.00%        12/08/2026           1,114        405,948  

 

  

Sandvine Corp.

               

First Lien Term Loan (3 mo. USD LIBOR + 4.50%)

      9.33%        10/31/2025           189        178,897  

 

  

Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)

      12.83%        11/02/2026           76        67,583  

 

  

SonicWall U.S. Holdings, Inc.

               

First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.71%        05/16/2025           379        375,490  

 

  

Second Lien Term Loan (3 mo. USD LIBOR + 7.50%)

      12.46%        05/18/2026           97        90,445  

 

  

Ultimate Software Group, Inc.

               

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.58%        05/04/2026           690        682,106  

 

  

Incremental First Lien Term Loan (3 mo. USD LIBOR + 3.25%)

      8.03%        05/04/2026           52        51,491  

 

  

Second Lien Term Loan (3 mo. USD LIBOR + 5.25%)

      10.03%        05/03/2027           53        52,201  

 

  

UST Holdings Ltd., Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.48%        11/19/2028           214        213,359  

 

  

Veritas US, Inc., Term Loan B (3 mo. USD LIBOR + 5.00%)

      9.73%        09/01/2025           611        481,102  

 

  
                 13,360,231  

 

  

Financial Intermediaries–0.84%

               

Edelman Financial Center LLC (The)

               

Incremental Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        04/07/2028           808        788,257  

 

  

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        07/20/2026           37        35,634  

 

  

LendingTree, Inc., First Lien Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.39%        09/15/2028           334        309,439  

 

  

Tegra118 Wealth Solutions, Inc., Term Loan (1 mo. USD LIBOR + 4.00%)

      8.56%        02/18/2027           165        161,381  

 

  
                 1,294,711  

 

  

Food Products–1.61%

               

Arnott’s (Snacking Investments US LLC), Term Loan (1 mo. USD LIBOR + 4.00%)

      8.56%        12/18/2026           168        167,808  

 

  

 

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

 

8

   Invesco Master Loan Fund

    

Interest

Rate

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Food Products–(continued)

               

Florida Food Products LLC

               

First Lien Term Loan (1 mo. TSFR + 5.00%)(e)

      9.62%        10/18/2028        $        146      $ 136,643  

 

  

First Lien Term Loan (1 mo. TSFR + 5.00%)(e)

      9.63%        10/18/2028           1,093        1,021,733  

 

  

Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)

      12.63%        10/08/2029                       218               196,280  

 

  

H-Food Holdings LLC

               

Incremental Term Loan B-2 (1 mo. USD LIBOR + 4.00%)

      8.63%        05/23/2025           194        174,994  

 

  

Term Loan (3 mo. USD LIBOR + 3.69%)

      8.32%        05/23/2025           373        336,178  

 

  

Panzani/Pimente (France), Term Loan B (3 mo. EURIBOR + 4.25%)

      6.45%        12/02/2028        EUR        61        62,852  

 

  

Sigma Bidco B.V. (Netherlands), Term Loan B-2 (3 mo. USD LIBOR + 3.00%)

      7.46%        07/02/2025           35        33,176  

 

  

United Natural Foods, Inc., Term Loan (3 mo. USD LIBOR + 3.25%)

      7.98%        10/22/2025           19        19,130  

 

  

Valeo Foods (Jersey) Ltd. (United Kingdom), First Lien Term Loan B (6 mo. EURIBOR + 4.00%)

      5.16%        09/29/2028        EUR        370        333,227  

 

  
                 2,482,021  

 

  

Food Service–0.61%

               

Euro Garages (Netherlands), Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%        02/07/2025           443        415,436  

 

  

US Foods, Inc., Incremental Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        11/22/2028           238        238,399  

 

  

WW International, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.14%        04/13/2028           478        277,685  

 

  
                 931,520  

 

  

Health Care–2.75%

               

Acacium (Impala Bidco Ltd./ICS US, Inc.) (United Kingdom), Term Loan (1 mo. SONIA+4.75%)

      8.68%        06/08/2028        GBP        119        137,416  

 

  

Ascend Learning LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.12%        12/11/2028           93        87,526  

 

  

athenahealth Group, Inc.

               

Term Loan (1 mo. TSFR + 3.50%)

      8.06%        02/15/2029           742        688,645  

 

  

Delayed Draw Term Loan(h)

      0.00%        02/15/2029           91        84,386  

 

  

Cheplapharm Arzneimittel GmbH (Germany), Term Loan B (3 mo. EURIBOR + 4.00%)

      6.30%        02/22/2029        EUR        106        109,199  

 

  

Dermatology Intermediate Holdings III, Inc.

               

Delayed Draw Term Loan (1 mo. TSFR + 4.25%)(e)

      4.25%        03/31/2029           4        3,686  

 

  

Delayed Draw Term Loan(e)(h)

      0.00%        03/31/2029           1        137  

 

  

Term Loan B(d)(e)

      –        03/23/2029           21        20,348  

 

  

Ethypharm (Financiere Verdi, Orphea Ltf) (France), Term Loan B (3 mo. SONIA+4.50%)

      7.93%        04/17/2028        GBP        133        142,298  

 

  

Explorer Holdings, Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.50%)

      9.13%        02/04/2027           351        324,472  

 

  

Gainwell Acquisition Corp., First Lien Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%        10/01/2027           140        135,343  

 

  

Global Medical Response, Inc.

               

Term Loan (1 mo. USD LIBOR + 4.25%)

      9.20%        03/14/2025           72        57,789  

 

  

Term Loan (1 mo. USD LIBOR + 4.25%)

      8.83%        10/02/2025           235        187,531  

 

  

HC Group Holdings III, Inc., Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        10/25/2028           35        35,093  

 

  

ICU Medical, Inc., Term Loan B (1 mo. TSFR + 2.50%)

      7.22%        12/15/2028           66        65,912  

 

  

International SOS L.P., Term Loan B (3 mo. USD LIBOR + 3.75%)(e)

      8.50%        09/07/2028           390        384,217  

 

  

MedAssets Software Intermediate Holdings, Inc. (nThrive TSG)

               

First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63%        12/18/2028           470        440,858  

 

  

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        12/17/2029           128        91,984  

 

  

Neuraxpharm (Cerebro BidCo/Blitz F20-80 GmbH) (Germany)

               

Term Loan B (3 mo. EURIBOR + 4.25%)

      6.74%        12/15/2027        EUR        44        46,061  

 

  

Term Loan B-2 (3 mo. EURIBOR + 4.25%)

      6.74%        12/15/2027        EUR        26        26,607  

 

  

Organon & Co., Term Loan B (3 mo. USD LIBOR + 3.00%)

      7.75%        06/02/2028           518        513,856  

 

  

Recipharm (Roar BidCo), Term Loan B (3 mo. EURIBOR + 3.20%)

      5.88%        02/17/2028        EUR        97        97,485  

 

  

Sharp Midco LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)(e)

      8.73%        12/15/2028           13        12,560  

 

  

Summit Behavioral Healthcare LLC, First Lien Term Loan (3 mo. USD LIBOR + 4.75%)

      9.88%        11/24/2028           352        341,601  

 

  

Verscend Holding Corp., Term Loan B-1 (1 mo. USD LIBOR + 4.00%)

      8.63%        08/27/2025           124        124,277  

 

  

Women’s Care Holdings, Inc. LLC, Second Lien Term Loan (1 mo. USD LIBOR + 8.25%)

      13.08%        01/15/2029           80        72,384  

 

  
                 4,231,671  

 

  

Home Furnishings–1.81%

               

Griffon Corp., Term Loan B (1 mo. TSFR + 2.75%)

      9.00%        01/19/2029           16        15,379  

 

  

Hunter Douglas Holding B.V., Term Loan B-1 (3 mo. TSFR + 3.50%)

      8.37%        02/26/2029           766        707,460  

 

  

Mattress Holding Corp., Term Loan (6 mo. USD LIBOR + 4.25%)

      8.44%        09/25/2028           641        606,932  

 

  

 

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

 

9

   Invesco Master Loan Fund

    

Interest

Rate

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Home Furnishings–(continued)

               

Serta Simmons Bedding LLC

               

First Lien Term Loan(i)(j)

      0.00%        08/10/2023        $        412      $ 407,876  

 

  

Second Lien Term Loan(i)(j)

      0.00%        08/10/2023           844        473,296  

 

  

SIWF Holdings, Inc., Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.75%        10/06/2028           314        270,683  

 

  

TGP Holdings III LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      8.08%        06/29/2028           78        62,636  

 

  

VC GB Holdings, Inc., Second Lien Term Loan (3 mo. USD LIBOR + 6.75%)

      11.38%        07/01/2029                       120        95,663  

 

  

Weber-Stephen Products LLC

               

Incremental Term Loan B (1 mo. TSFR + 4.25%)

      8.97%        10/30/2027           24        20,841  

 

  

Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        10/30/2027           131        115,230  

 

  
                     2,775,996  

 

  

Industrial Equipment–2.57%

               

Alliance Laundry Systems LLC, Term Loan B (d)

      –        10/08/2027           305        302,992  

 

  

Chart Industries, Inc., Term Loan B(d)

      –        12/08/2029           309        309,089  

 

  

CIRCOR International, Inc., Term Loan (1 mo. USD LIBOR + 5.50%)

      10.13%        12/20/2028           238        236,655  

 

  

Deliver Buyer, Inc. (MHS Holdings), Term Loan B (3 mo. TSFR + 5.50%)

      10.08%        06/08/2029           373        323,049  

 

  

DXP Enterprises, Inc., Term Loan (1 mo. TSFR + 4.75%)

      10.17%        12/23/2027           194        191,132  

 

  

Engineered Machinery Holdings, Inc., Second Lien Incremental Term Loan (3 mo. USD LIBOR + 6.00%)(e)

      10.73%        05/21/2029           40        37,313  

 

  

Kantar (Summer BC Bidco) (United Kingdom), Term Loan B (3 mo. USD LIBOR + 5.00%)(e)

      9.77%        12/04/2026           177        168,259  

 

  

Madison IAQ LLC, Term Loan (3 mo. USD LIBOR + 3.25%)

      7.99%        06/21/2028           548        523,134  

 

  

MKS Instruments, Inc., Term Loan B (1 mo. TSFR + 2.75%)

      7.41%        08/17/2029           12        12,122  

 

  

MX Holdings US, Inc., Term Loan B-1-C (1 mo. USD LIBOR + 2.50%)

      7.13%        07/31/2025           24        24,032  

 

  

Robertshaw US Holding Corp.

               

First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.25%        02/28/2025           943        527,443  

 

  

Second Lien Term Loan (3 mo. USD LIBOR + 8.00%)

      12.75%        02/28/2026           166        57,300  

 

  

Thyssenkrupp Elevators (Vertical Midco GmbH) (Germany), Term Loan B (6 mo. USD LIBOR + 3.50%)

      8.60%        07/31/2027           1,019        998,137  

 

  

Victory Buyer LLC (Vantage Elevator)

               

Second Lien Term Loan B (1 mo. USD LIBOR + 7.00%)(e)

      11.59%        11/19/2029           60        48,284  

 

  

Term Loan B (1 mo. USD LIBOR + 3.75%)(e)

      8.34%        11/15/2028           213        187,007  

 

  
                 3,945,948  

 

  

Insurance–2.27%

               

Acrisure LLC

               

First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        02/15/2027           783        750,149  

 

  

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        02/15/2027           229        219,691  

 

  

Alliant Holdings Intermediate LLC, Term Loan(d)

      –        05/09/2025           410        405,363  

 

  

AmWINS Group LLC, Term Loan B(d)

      –        02/19/2028           136        135,599  

 

  

HUB International Ltd.

               

Incremental Term Loan B-3 (1 mo. USD LIBOR + 3.25%)

      8.06%        04/25/2025           266        266,108  

 

  

Term Loan (3 mo. USD LIBOR + 3.00%)

      7.82%        04/25/2025           262        261,492  

 

  

Ryan Specialty Group LLC, Term Loan (1 mo. USD LIBOR + 3.00%)

      7.72%        09/01/2027           101        101,151  

 

  

Sedgwick Claims Management Services, Inc., Term Loan B

      8.32%        02/21/2028           271        268,445  

 

  

USI, Inc.

               

Term Loan (1 mo. USD LIBOR + 3.25%)

      7.98%        12/02/2026           304        304,468  

 

  

Term Loan (1 mo. TSFR + 3.75%)

      8.33%        11/22/2029           783        782,247  

 

  
                 3,494,713  

 

  

Leisure Goods, Activities & Movies–1.90%

               

AMC Entertainment, Inc., Term Loan B-1 (1 mo. USD LIBOR + 3.00%)

      7.57%        04/22/2026           78        48,987  

 

  

Carnival Corp.

               

Incremental Term Loan (6 mo. USD LIBOR + 3.25%)

      7.88%        10/18/2028           683        664,657  

 

  

Term Loan (6 mo. USD LIBOR + 3.00%)

      7.63%        06/30/2025           80        79,002  

 

  

Crown Finance US, Inc.

               

DIP Term Loan

(Acquired 09/14/2022-09/23/2022; Cost $ 1,133,798)(f)

      14.40%        09/07/2023           1,191        1,218,097  

 

  

Term Loan

(Acquired 08/28/2020-12/15/2021; Cost $ 71,550)(f)(i)(j)

      0.00%        02/28/2025        EUR        80        13,742  

 

  

Delta 2 Lux S.a.r.l. (United Kingdom), First Lien Term Loan (1 mo. SOFR+3.25%)

      7.87%        01/15/2030           269        270,036  

 

  

 

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

 

10

   Invesco Master Loan Fund

    

Interest

Rate

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Leisure Goods, Activities & Movies–(continued)

               

Eagle Midco Ltd. (United Kingdom), Term Loan (1 mo. SONIA + 4.25%)

      8.71%        03/20/2028        GBP        83      $ 93,685  

 

  

Fitness International LLC, Term Loan B (3 mo. USD LIBOR + 3.25%)

      8.08%        04/18/2025        $        121        115,938  

 

  

Nord Anglia Education, Term Loan B(d)

      –        01/25/2028           108        108,142  

 

  

SeaWorld Parks & Entertainment, Inc., Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.69%        08/25/2028                       243        242,720  

 

  

Vue International Bidco PLC (United Kingdom), Term Loan

      9.77%        06/30/2027        EUR        64        59,211  

 

  
                     2,914,217  

 

  

Lodging & Casinos–4.19%

               

Aimbridge Acquisition Co., Inc.

               

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        02/02/2026           300        285,139  

 

  

First Lien Term Loan (1 mo. USD LIBOR + 4.75%)

      9.34%        02/02/2026           140        133,862  

 

  

B&B Hotels S.A.S. (France), Term Loan B-4 (6 mo. EURIBOR + 5.50%)

      7.89%        07/31/2026        EUR        143        150,263  

 

  

Bally’s Corp., Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.85%        10/02/2028           360        343,848  

 

  

Caesars Entertainment, Inc., Term Loan B(d)

      –        01/26/2030           576        575,856  

 

  

Everi Payments, Inc., Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.13%        08/03/2028           794        791,980  

 

  

Fertitta Entertainment LLC (Golden Nugget), Term Loan (1 mo. TSFR + 4.00%)

      8.62%        01/31/2029           312        304,205  

 

  

Flutter Financing B.V. (Stars Group), Term Loan B (1 mo. TSFR + 3.25%)

      8.09%        07/04/2028           370        370,292  

 

  

Four Seasons Holdings, Inc. (Canada), Term Loan (1 mo. TSFR + 3.25%)

      7.87%        11/30/2029           79        79,303  

 

  

GVC Finance LLC

               

First Lien Term Loan (1 mo. TSFR + 3.50%)

      8.18%        10/31/2029           426        425,898  

 

  

Term Loan B-4 (3 mo. USD LIBOR + 2.50%)

      7.23%        03/16/2027           392        391,935  

 

  

Hilton Grand Vacations Borrower LLC, Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        08/02/2028           247        246,934  

 

  

HotelBeds (United Kingdom), Term Loan D (6 mo. EURIBOR + 5.50%)

      7.75%        09/12/2027        EUR        1,206        1,212,041  

 

  

Light & Wonder, Inc., Term Loan (1 mo. TSFR + 3.00%)

      7.66%        04/07/2029           327        327,200  

 

  

Scientific Games Lottery, Term Loan B (3 mo. TSFR + 3.50%)

      8.10%        04/04/2029           301        296,989  

 

  

Tackle Group S.a.r.l. (Luxembourg), Term Loan B (6 mo. EURIBOR + 3.50%)

      6.73%        05/22/2028        EUR        315        321,416  

 

  

Travel + Leisure Co., Incremental Term Loan (1 mo. TSFR + 4.00%)

      8.61%        12/14/2029           109        108,451  

 

  

Wyndham Hotels & Resorts, Inc., Term Loan B (3 mo. USD LIBOR + 1.75%)

      6.38%        05/30/2025           86        86,251  

 

  
                 6,451,863  

 

  

Nonferrous Metals & Minerals–0.68%

               

ACNR Holdings, Inc., PIK Term Loan, 3.00% PIK Rate, 17.82% Cash Rate (g)

      17.82%        09/16/2025           124        124,547  

 

  

American Rock Salt Co. LLC

               

First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63%        06/09/2028           82        78,996  

 

  

Second Lien Term Loan (1 mo. USD LIBOR + 7.25%)(e)

      11.88%        06/11/2029           23        22,048  

 

  

AZZ, Inc., Term Loan (1 mo. SOFR+4.25%) (TSFR1M + 4.25%)

      8.97%        05/13/2029           348        348,725  

 

  

Corialis (United Kingdom), Term Loan B (1 mo. SONIA+4.40%)

      8.36%        07/06/2028        GBP        44        48,121  

 

  

Form Technologies LLC

               

First Lien Term Loan (3 mo. USD LIBOR + 4.50%)

      9.46%        07/19/2025           156        143,196  

 

  

First Lien Term Loan (3 mo. USD LIBOR + 9.00%)(e)

      13.96%        10/22/2025           142        114,773  

 

  

SCIH Salt Holdings Inc. (Kissner Group), Incremental First Lien Term Loan B-1 (1 mo. USD LIBOR + 4.00%)

      8.83%        03/16/2027           175        171,020  

 

  
                 1,051,426  

 

  

Oil & Gas–1.96%

               

Brazos Delaware II LLC, First Lien Term Loan (d)

      –        02/01/2030           320        318,554  

 

  

Gulf Finance LLC, Term Loan (1 mo. USD LIBOR + 6.75%)

      11.48%        08/25/2026           237        233,093  

 

  

McDermott International Ltd.

               

LOC(h)

      0.00%        06/30/2024           342        278,823  

 

  

LOC (3 mo. USD LIBOR + 4.00%)(e)

      4.09%        06/30/2024           182        127,346  

 

  

PIK Term Loan, 3.00% PIK Rate, 5.63% Cash Rate(g)

      3.00%        06/30/2025           96        64,056  

 

  

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        06/30/2024           10        5,821  

 

  

Petroleum GEO-Services ASA (Norway)

               

Term Loan

(Acquired 05/23/2022; Cost $82,020)(e)(f)

      11.33%        03/18/2024           82        83,250  

 

  

Term Loan (1 mo. USD LIBOR + 7.50%)

(Acquired 02/03/2021-02/09/2021; Cost $195,623)(f)

      12.14%        03/19/2024           221        217,601  

 

  

QuarterNorth Energy, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)
(Acquired 08/03/2021-10/14/2022; Cost $1,183,351)(f)

      12.63%        08/27/2026           1,202        1,199,938  

 

  

 

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

 

11

   Invesco Master Loan Fund

    

Interest

Rate

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Oil & Gas–(continued)

               

TransMontaigne Partners LLC, Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.09%        11/17/2028        $        393      $ 391,794  

 

  

WhiteWater Whistler Holdings LLC, Term Loan B(d)

      –        01/25/2030           99        99,120  

 

  
                 3,019,396  

 

  

Publishing–3.44%

               

Adtalem Global Education, Inc., Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.63%        08/12/2028                       127        127,275  

 

  

Cengage Learning, Inc., Term Loan B (6 mo. USD LIBOR + 4.75%)

      9.88%        06/29/2026           894        847,297  

 

  

Clear Channel Worldwide Holdings, Inc., Term Loan B (3 mo. USD LIBOR + 3.50%)

      8.23%        08/21/2026           765        725,735  

 

  

Dotdash Meredith, Inc., Term Loan B (1 mo. TSFR + 4.00%)(e)

      8.67%        12/01/2028           793        701,876  

 

  

Harbor Purchaser, Inc. (Houghton Mifflin Harcourt)

               

Second Lien Term Loan (1 mo. SOFR+8.50%)(e)

      13.12%        04/08/2030           468        407,271  

 

  

Term Loan B (1 mo. TSFR + 5.25%)

      9.97%        04/09/2029           764        703,069  

 

  

McGraw-Hill Education, Inc., Term Loan B (1 mo. USD LIBOR + 4.75%)

      9.38%        07/30/2028           966        929,984  

 

  

Micro Holding L.P.

               

First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.38%        09/13/2024           175        174,099  

 

  

Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        09/13/2024           673        669,295  

 

  
                     5,285,901  

 

  

Radio & Television–1.36%

               

Diamond Sports Holdings LLC, Second Lien Term Loan (1 mo. TSFR + 3.25%) (Acquired 03/01/2022; Cost $295,934)(f)

      8.03%        08/24/2026           450        52,945  

 

  

E.W. Scripps Co. (The), Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        01/07/2028           577        569,848  

 

  

Gray Television, Inc., Term Loan D (1 mo. USD LIBOR + 3.00%)

      7.57%        12/01/2028           371        367,394  

 

  

iHeartCommunications, Inc.

               

Incremental Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        05/01/2026           79        77,519  

 

  

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        05/01/2026           236        228,686  

 

  

Sinclair Television Group, Inc.

               

Term Loan B-2-B (1 mo. USD LIBOR + 2.50%)

      7.14%        09/30/2026           652        632,887  

 

  

Term Loan B-3 (1 mo. USD LIBOR + 3.00%)

      7.64%        04/01/2028           169        163,419  

 

  

Univision Communications, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        05/05/2028           1        154  

 

  
                 2,092,852  

 

  

Retailers (except Food & Drug)–2.00%

               

Bass Pro Group LLC, Term Loan B-2 (1 mo. USD LIBOR + 3.75%)

      8.38%        03/06/2028           760        750,061  

 

  

CNT Holdings I Corp. (1-800 Contacts), First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        11/08/2027           448        440,581  

 

  

Petco Animal Supplies, Inc., First Lien Term loan (3 mo. TSFR + 3.25%)

      8.09%        03/02/2028           453        448,882  

 

  

PetSmart LLC, Term Loan (1 mo. TSFR + 3.75%)

      8.47%        02/11/2028           1,058        1,056,230  

 

  

Savers, Inc., Term Loan (3 mo. USD LIBOR + 5.50%)

      10.34%        04/26/2028           386        383,094  

 

  
                 3,078,848  

 

  

Surface Transport–1.98%

               

American Trailer World Corp., First Lien Term Loan (1 mo. TSFR + 3.75%)

      8.47%        03/03/2028           185        164,478  

 

  

Carriage Purchaser, Inc., Term Loan B (1 mo. USD LIBOR + 4.25%)

      8.88%        09/30/2028           230        226,821  

 

  

First Student Bidco, Inc.

               

Delayed Draw Term Loan (3 mo. TSFR + 4.00%)

      8.68%        07/21/2028           37        35,926  

 

  

Incremental Term Loan B (3 mo. TSFR + 4.00%)

      8.68%        07/21/2028           530        517,335  

 

  

Term Loan B (3 mo. USD LIBOR + 3.00%)

      7.73%        07/21/2028           477        455,835  

 

  

Term Loan C (3 mo. USD LIBOR + 3.00%)

      7.73%        07/21/2028           178        169,961  

 

  

Hurtigruten (Explorer II AS) (Norway), Term Loan B (3 mo. EURIBOR + 4.00%) (Acquired 04/16/2021-05/25/2021; Cost $808,929)(f)

      7.20%        02/24/2025        EUR        691        666,349  

 

  

Novae LLC, Term Loan B (3 mo. TSFR + 5.00%)

      9.70%        12/22/2028           104        90,387  

 

  

PODS LLC, Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.73%        04/01/2028           624        610,649  

 

  

STG - XPOI Opportunity, Term Loan B (1 mo. TSFR + 6.00%)

      10.78%        04/30/2028           108        103,999  

 

  
                 3,041,740  

 

  

 

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

 

12

   Invesco Master Loan Fund

    

Interest

Rate

     

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Telecommunications–5.77%

               

Avaya, Inc.

               

DIP Term Loan(e)

      0.00%        08/15/2023        $        212      $ 220,516  

 

  

DIP Term Loan(e)(h)

      0.00%        08/15/2023           53        55,129  

 

  

First Lien Term Loan(i)(j)

      0.00%        12/15/2027           947        247,141  

 

  

Term Loan B-2(i)(j)

      0.00%        12/15/2027                       471               121,982  

 

  

Cablevision Lightpath LLC, Term Loan (1 mo. USD LIBOR + 3.25%)

      7.84%        11/30/2027           171        170,384  

 

  

CCI Buyer, Inc. (Consumer Cellular), Term Loan(d)

      –        12/17/2027           455        448,420  

 

  

CenturyLink, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%)

      6.88%        03/15/2027           492        410,170  

 

  

Crown Subsea Communications Holding, Inc., Term Loan (1 mo. TSFR + 4.75%)

      9.32%        04/27/2027           467        460,358  

 

  

Eagle Broadband Investments LLC (Mega Broadband), Term Loan (3 mo. USD LIBOR + 3.00%)

      7.75%        11/12/2027           283        280,654  

 

  

II-VI, Inc., Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        07/01/2029           522        521,208  

 

  

Inmarsat Finance PLC (United Kingdom), Term Loan (1 mo. USD LIBOR + 3.50%)

      8.14%        12/11/2026           329        323,932  

 

  

Intelsat Jackson Holdings S.A. (Luxembourg), Term Loan B (6 mo. TSFR + 4.25%)

      9.08%        02/01/2029           1,240        1,228,176  

 

  

Level 3 Financing, Inc., Term Loan B (1 mo. USD LIBOR + 1.75%)

      6.38%        03/01/2027           140        128,243  

 

  

MLN US HoldCo LLC (dba Mitel)

               

First Lien Term Loan (6 mo. SOFR+6.70%)(e)

      11.15%        11/01/2027           1,086        787,333  

 

  

Term Loan (6 mo. SOFR+6.44%)

      10.89%        11/01/2027           462        452,826  

 

  

Radiate Holdco LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        09/25/2026           463        385,678  

 

  

Telesat LLC, Term Loan B-5 (1 mo. USD LIBOR + 2.75%)

      7.58%        12/07/2026           814        439,855  

 

  

Viasat, Inc., Term Loan (1 mo. TSFR + 3.75%)

      9.23%        03/02/2029           334        331,320  

 

  

Voyage Digital (NC) Ltd., Term Loan B (3 mo. TSFR + 4.50%)(e)

      9.30%        05/10/2029           288        286,260  

 

  

Windstream Services LLC, Term Loan (1 mo. TSFR + 6.25%)

      10.97%        09/21/2027           948        853,023  

 

  

Zayo Group Holdings, Inc., Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        03/09/2027           695        579,997  

 

  

Zayo Group LLC, Incremental Term Loan (1 mo. TSFR + 4.25%)

      8.87%        03/09/2027           176        150,268  

 

  
                 8,882,873  

 

  

Utilities–2.53%

               

APLP Holdings L.P. (Canada), Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        05/14/2027           142        142,019  

 

  

Brookfield WEC Holdings, Inc.

               

First Lien Term Loan (1 mo. USD LIBOR + 2.75%)

      7.38%        08/01/2025           424        423,090  

 

  

Incremental Term Loan (1 mo. SOFR+3.75%)

      8.37%        08/01/2025           714        715,396  

 

  

Calpine Corp., Term Loan (1 mo. USD LIBOR + 2.50%)

      7.14%        12/16/2027           21        20,996  

 

  

Covanta Holding Corp.

               

Term Loan B (1 mo. TSFR + 2.50%)

      7.12%        11/30/2028           175        174,639  

 

  

Term Loan C (1 mo. TSFR + 2.50%)

      7.12%        11/30/2028           13        13,181  

 

  

Eastern Power LLC, Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        10/02/2025           380        346,633  

 

  

Frontera Generation Holdings LLC

               

First Lien Term Loan (Prime Rate + 13.00%)

(Acquired 07/28/2021; Cost $243,764)(e)(f)

      17.73%        07/28/2026           245        244,989  

 

  

Second Lien Term Loan (Prime Rate + 1.50%)

(Acquired 07/28/2021; Cost $121,713)(e)(f)

      6.23%        07/28/2028           238        59,448  

 

  

Generation Bridge LLC

               

Term Loan B (3 mo. USD LIBOR + 5.00%)

      9.73%        12/01/2028           211        210,939  

 

  

Term Loan C (1 mo. USD LIBOR + 5.00%)

      9.73%        12/01/2028           5        4,642  

 

  

Granite Acquisition, Inc., Term Loan B (3 mo. USD LIBOR + 2.75%)

      7.48%        03/24/2028           127        120,609  

 

  

Granite Generation LLC, Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        11/09/2026           144        138,303  

 

  

Innio Group Holding GmbH, Term Loan B (3 mo. EURIBOR + 3.75%)

      5.48%        10/31/2025        EUR        102        105,788  

 

  

KAMC Holdings, Inc. (Franklin Energy Group), First Lien Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.95%        08/14/2026           17        15,055  

 

  

Lightstone Holdco LLC

               

Term Loan B (1 mo. TSFR + 5.75%)

      10.37%        02/01/2027           457        390,353  

 

  

Term Loan C (1 mo. TSFR + 5.75%)

      10.37%        02/01/2027           26        22,119  

 

  

Nautilus Power LLC, Term Loan (3 mo. USD LIBOR + 4.25%) (Acquired 05/21/2020; Cost $127,093)

      8.88%        05/16/2024           129        96,274  

 

  

Osmose Utilities Services, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        06/23/2028           204        197,266  

 

  

Pike Corp., Term Loan (1 mo. TSFR + 3.50%)

      8.12%        01/21/2028           72        71,714  

 

  

Talen Energy Supply LLC, DIP Term Loan (3 mo. TSFR + 4.75%)

      9.27%        11/11/2023           130        131,711  

 

  

 

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

 

13

   Invesco Master Loan Fund

    

Interest

Rate

    

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

Utilities–(continued)

              

USIC Holding, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13 %      05/12/2028      $                      259      $ 251,746  

 

  
                3,896,910  

 

  

Total Variable Rate Senior Loan Interests (Cost $128,348,724)

                 119,978,872  

 

  
                  Shares         

Common Stocks & Other Equity Interests–5.48%(k)

              

Business Equipment & Services–0.01%

              

iQor US, Inc., Term Loan(e)

              23,470        17,602  

 

  

Containers & Glass Products–0.16%

              

Libbey Glass, Inc. (Acquired 11/13/2020-02/10/2022; Cost $131,797)(f)

              29,078        250,798  

 

  

Electronics & Electrical–0.00%

              

Fusion Connect, Inc. (Acquired 05/03/2018-12/31/2019; Cost $101)(e)(f)

              10        0  

 

  

Fusion Connect, Inc., Wts., expiring 01/14/2040 (Acquired 05/03/2018-12/31/2019; Cost $911,159)(e)(f)

              90,368        904  

 

  

Internap Corp. (Acquired 02/06/2018-02/24/2020; Cost $783,891)(e)(f)

              218,015        0  

 

  

Riverbed Technology, Inc. (Acquired 12/06/2021; Cost $77,151)(e)(f)

              4,606        1,175  

 

  

Sungard Availability Services Capital, Inc. (Acquired 06/27/2018-05/03/2019; Cost $276,791)(f)

              3,420        1,932  

 

  
                4,011  

 

  

Industrial Equipment–0.19%

              

North American Lifting Holdings, Inc.

              38,021        289,910  

 

  

Leisure Goods, Activities & Movies–0.00%

              

Crown Finance US, Inc., Wts., expiring 11/23/2025 (Acquired 12/09/2020; Cost $0)(f)

              35,578        0  

 

  

Vue International Bidco PLC(e)

              326,260        0  

 

  
                0  

 

  

Oil & Gas–5.03%

              

Catalina Marketing Corp.

              19,788        6,184  

 

  

Harvey Gulf International Marine LLC (Acquired 04/18/2016-12/08/2016; Cost $450,897)(e)(f)

              6,360        143,100  

 

  

Larchmont Resources LLC (Acquired 12/09/2016; Cost $46,001)(e)(f)

              137        3,544  

 

  

McDermott International Ltd.(e)

              19,276        7,508  

 

  

QuarterNorth Energy, Inc. (Acquired 08/27/2021-10/29/2021;
Cost $1,283,381)(e)(f)

              31,622        6,308,273  

 

  

Sabine Oil & Gas Holdings, Inc. (Acquired 02/26/2014-11/09/2016;
Cost $1,858,384)(e)(f)

              1,419        28  

 

  

Southcross Energy Partners L.P. (Acquired 04/26/2016-10/29/2020;
Cost $2,491,123)(e)(f)

              251,018        1,883  

 

  

Tribune Resources LLC (Acquired 03/30/2018; Cost $1,878,647)(f)

              606,015        1,268,995  

 

  

Tribune Resources LLC, Wts., expiring 04/03/2023 (Acquired 03/30/2018; Cost $15,690)(e)(f)

              156,901        3,922  

 

  
                7,743,437  

 

  

Surface Transport–0.09%

              

Commercial Barge Line Co. (Acquired 01/31/2020-02/06/2020;
Cost $104,219)(f)

              2,003        59,089  

 

  

Commercial Barge Line Co., Series A, Wts., expiring 08/18/2030 (Acquired 02/03/2023; Cost $0)(f)

              7,833        3,672  

 

  

Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045 (Acquired 02/03/2023; Cost $0)(f)

              5,672        3,545  

 

  

Commercial Barge Line Co., Wts., expiring 04/27/2045 (Acquired 01/31/2020-02/06/2020; Cost $109,549)(f)

              2,105        62,097  

 

  
                128,403  

 

  

Utilities–0.00%

              

Frontera Generation Holdings LLC (Acquired 07/28/2021;
Cost $60,932)(e)(f)

              17,409        261  

 

  

Total Common Stocks & Other Equity Interests (Cost $12,166,371)

                 8,434,422  

 

  

 

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

 

14

   Invesco Master Loan Fund

    

Interest

Rate

    

Maturity

Date

     

Principal

Amount

(000)(a)

      Value  

 

  

U.S. Dollar Denominated Bonds & Notes–2.77%

              

Aerospace & Defense–0.26%

              

Castlelake Aviation Finance DAC (l)

      5.00 %      04/15/2027        $        200      $ 179,836  

 

  

Rand Parent LLC(l)

      8.50 %      02/15/2030           221        212,436  

 

  
                392,272  

 

  

Building & Development–0.52%

              

Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (Acquired 09/22/2021-12/15/2021; Cost $432,571)(f)(l)

      4.50 %      04/01/2027           435        373,189  

 

  

Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (Acquired 10/15/2020-11/19/2020; Cost $428,936)(f)(l)

      5.75 %      05/15/2026           471        434,118  

 

  
                807,307  

 

  

Cable & Satellite Television–0.72%

              

Altice Financing S.A. (Luxembourg) (l)

      5.75 %      08/15/2029           45        36,850  

 

  

Altice Financing S.A. (Luxembourg)(l)

      5.00 %      01/15/2028           689        572,408  

 

  

Altice France S.A. (France)(l)

      5.50 %      10/15/2029           310        242,942  

 

  

Virgin Media Secured Finance PLC (United Kingdom)(l)

      4.50 %      08/15/2030           316        260,426  

 

  
                1,112,626  

 

  

Chemicals & Plastics–0.20%

              

SK Invictus Intermediate II S.a.r.l. (Luxembourg) (l)

      5.00 %      10/30/2029           385        306,741  

 

  

Food Service–0.08%

              

WW International, Inc. (l)

      4.50 %      04/15/2029           229        117,050  

 

  

Health Care–0.05%

              

Global Medical Response, Inc. (l)

      6.50 %      10/01/2025           95        71,356  

 

  

Industrial Equipment–0.02%

              

Chart Industries, Inc. (l)

      7.50 %      01/01/2030           31        31,504  

 

  

Publishing–0.31%

              

McGraw-Hill Education, Inc. (l)

      5.75 %      08/01/2028           541        474,299  

 

  

Radio & Television–0.02%

              

Diamond Sports Group LLC/Diamond Sports Finance Co. (Acquired 08/17/2020-10/23/2020; Cost $256,512)(f)(l)

      5.38 %      08/15/2026           335        38,006  

 

  

Retailers (except Food & Drug)–0.15%

              

Evergreen Acqco 1 L.P./TVI, Inc. (l)

      9.75 %      04/26/2028           237        234,664  

 

  

Telecommunications–0.15%

              

Windstream Escrow LLC/Windstream Escrow Finance Corp. (l)

      7.75 %      08/15/2028           280        229,148  

 

  

Utilities–0.29%

              

Calpine Corp. (l)

      4.50 %      02/15/2028           495        446,169  

 

  

Total U.S. Dollar Denominated Bonds & Notes (Cost $5,130,887)

                 4,261,142  

 

  
                         Shares         

Preferred Stocks–1.83%(k)

              

Electronics & Electrical–0.00%

              

Riverbed Technology, Inc., Pfd. (Acquired 12/06/2021; Cost $0)(e)(f)

              9,494        2,421  

 

  

Riverbed Technology, Inc., Pfd.(e)

              1,997        509  

 

  
                2,930  

 

  

Nonferrous Metals & Minerals–1.17%

              

ACNR Holdings, Inc., Pfd.

              2,982        1,793,673  

Oil & Gas–0.08%

              

McDermott International Ltd., Pfd.(e)

              103        66,782  

 

  

Southcross Energy Partners L.P., Series A, Pfd. (Acquired 05/07/2019-10/31/2019; Cost $999,531)(e)(f)

              999,705        54,984  

 

  
                121,766  

 

  

 

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

 

15

   Invesco Master Loan Fund

                  Shares      Value  

 

  

Surface Transport–0.58%

              

Commercial Barge Line Co., Series A, Pfd. (Acquired 01/31/2020-02/06/2020; Cost $232,695)(f)

              7,452      $ 160,218  

 

  

Commercial Barge Line Co., Series A, Pfd., Wts., expiring 04/27/2045 (Acquired 01/31/2020-02/06/2020; Cost $244,588)(f)

              7,833        168,410  

 

  

Commercial Barge Line Co., Series B, Pfd. (Acquired 02/05/2020-10/27/2020; Cost $192,008)(f)

              8,078        331,198  

 

  

Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045 (Acquired 02/05/2020-10/27/2020; Cost $134,829)(f)

              5,672        232,552  

 

  
                892,378  

 

  

Total Preferred Stocks (Cost $1,908,290)

                 2,810,747  

 

  
     Interest
Rate		     Maturity
Date		     

Principal

Amount

(000)

         

Non-U.S. Dollar Denominated Bonds & Notes–1.38%(m)

              

Automotive–0.21%

              

Cabonline Group Holding AB (Sweden) (3 mo. STIBOR + 9.50%)(l)(n)

      12.37 %      04/19/2026        SEK        3,750        329,576  

 

  

Chemicals & Plastics–0.10%

              

Herens Midco S.a.r.l. (Luxembourg)(l)

      5.25 %      05/15/2029        EUR                    203        148,420  

 

  

Financial Intermediaries–0.38%

              

AnaCap Financial Europe S.A. SICAV-RAIF (Italy) (3 mo. EURIBOR + 5.00%)(l)(n)

      7.48 %      08/01/2024        EUR        356        314,254  

 

  

Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 4.63%)(l)(n)

      7.28 %      11/15/2027        EUR        267        268,956  

 

  
                583,210  

 

  

Home Furnishings–0.32%

              

Ideal Standard International S.A. (Belgium)(l)

      6.38 %      07/30/2026        EUR        122        72,895  

 

  

Very Group Funding PLC (The) (United Kingdom)(l)

      6.50 %      08/01/2026        GBP        426        413,134  

 

  
                486,029  

 

  

Retailers (except Food & Drug)–0.24%

              

Douglas GmbH (Germany)(l)

      6.00 %      04/08/2026        EUR        282        263,148  

 

  

Kirk Beauty SUN GmbH (Germany)(g)(l)

      8.25 %      10/01/2026        EUR        126        101,448  

 

  
                364,596  

 

  

Surface Transport–0.13%

              

Zenith Finco PLC (United Kingdom)(l)

      6.50 %      06/30/2027        GBP        217        207,190  

 

  

Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $2,924,249)

 

              2,119,021  

 

  
                  Shares         

Money Market Funds–7.55%

              

Invesco Government & Agency Portfolio,Institutional Class, 4.51%(o)(p)

              6,969,812        6,969,812  

 

  

Invesco Treasury Portfolio,Institutional Class, 4.50%(o)(p)

              4,646,542        4,646,542  

 

  

Total Money Market Funds (Cost $11,616,354)

                 11,616,354  

 

  

TOTAL INVESTMENTS IN SECURITIES–96.99% (Cost $162,094,875)

                 149,220,558  

 

  

OTHER ASSETS LESS LIABILITIES–3.01%

                 4,625,480  

 

  

NET ASSETS–100.00%

               $ 153,846,038  

 

  

 

Investment Abbreviations:

 

DIP   – Debtor-in-Possession
EUR   – Euro
EURIBOR   – Euro Interbank Offered Rate
GBP   – British Pound Sterling
LIBOR   – London Interbank Offered Rate
LOC   – Letter of Credit
Pfd.   – Preferred
PIK   – Pay-in-Kind
SEK   – Swedish Krona
SONIA   – Sterling Overnight Index Average
STIBOR   – Stockholm Interbank Offered Rate
USD   – U.S. Dollar
Wts.   – Warrants

 

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

 

16

   Invesco Master Loan Fund

Notes to Schedule of Investments:

 

(a) 

Principal amounts are denominated in U.S. dollars unless otherwise noted.

(b) 

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 any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years.

(c) 

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. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

(d) 

This variable rate interest will settle after February 28, 2023, at which time the interest rate will be determined.

(e) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

(f) 

Restricted security. The aggregate value of these securities at February 28, 2023 was $15,798,182, which represented 10.27% of the Fund’s Net Assets.

(g) 

All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities.

(h) 

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 7.

(i) 

The borrower has filed for protection in federal bankruptcy court.

(j) 

Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 28, 2023 was $1,264,037, which represented less than 1% of the Fund’s Net Assets.

(k) 

Securities acquired through the restructuring of senior loans.

(l) 

Security purchased or received in a transaction exempt from registration under 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 February 28, 2023 was $6,380,163, which represented 4.15% of the Fund’s Net Assets.

(m) 

Foreign denominated security. Principal amount is denominated in the currency indicated.

(n) 

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2023.

(o) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

     Value
August 31, 2022		   Purchases
at Cost		   Proceeds
from Sales		   Change in
Unrealized
Appreciation		   Realized
Gain		   Value
February 28, 2023		   Dividend Income

Investments in Affiliated Money Market Funds:

                                                                      

Invesco Government & Agency Portfolio, Institutional Class

     $ 2,303,588     $ 21,330,329     $ (16,664,105 )     $ -     $ -     $ 6,969,812     $ 65,606

Invesco Treasury Portfolio, Institutional Class

       1,535,725       14,220,219       (11,109,402 )       -       -       4,646,542       41,276

Total

     $ 3,839,313     $ 35,550,548     $ (27,773,507 )     $ -     $ -     $ 11,616,354     $ 106,882

 

(p) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

 

Open Forward Foreign Currency Contracts

 

         

 

Contract to

      Unrealized
Settlement
Date		    Counterparty    Deliver      Receive      Appreciation
(Depreciation)

Currency Risk

                       
04/28/2023    Barclays Capital    EUR 60,973      USD 65,290      $         583
04/28/2023    Barclays Capital    GBP 345,532      USD 418,712      2,651
03/31/2023    BNP Paribas S.A.    EUR 3,306,280      USD 3,611,747      108,620
03/31/2023    BNP Paribas S.A.    GBP 629,255      USD 776,730      19,433
04/28/2023    BNP Paribas S.A.    EUR 3,057,658      USD 3,268,899      24,000
04/28/2023    Canadian Imperial Bank of Commerce    GBP 350,767      USD 425,679      3,314
03/31/2023    Morgan Stanley and Co. International PLC    EUR  3,360,445      USD 3,674,628      114,112
03/31/2023    Morgan Stanley and Co. International PLC    GBP 69,886      USD 85,107      1,000
03/31/2023    Morgan Stanley and Co. International PLC    USD 1,107,994      GBP 921,047      471
04/28/2023    Morgan Stanley and Co. International PLC    EUR 3,028,982      USD  3,238,672      24,205
04/28/2023    Morgan Stanley and Co. International PLC    SEK 3,435,237      USD 333,617      4,452
03/31/2023    Royal Bank of Canada    EUR 3,460,611      USD 3,780,044      113,398
03/31/2023    Royal Bank of Canada    GBP 619,863      USD 763,287      17,292
04/28/2023    Royal Bank of Canada    EUR 3,057,658      USD 3,271,394      26,496
03/31/2023    State Street Bank & Trust Co.    SEK  3,384,177      USD 331,575      7,798
03/31/2023    Toronto Dominion Bank    GBP 629,255      USD 776,446      19,148
04/28/2023    Toronto Dominion Bank    GBP 350,767      USD 426,185      3,821

        Subtotal-Appreciation

                      490,794

 

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

 

17

   Invesco Master Loan Fund

Open Forward Foreign Currency Contracts (continued)
          Contract to      Unrealized
Settlement
Date		    Counterparty    Deliver      Receive      Appreciation
(Depreciation)

Currency Risk

                       
03/31/2023    Barclays Capital    USD 418,085      GBP 345,216      $    (2,623)
03/31/2023    BNP Paribas S.A.    USD 3,263,624      EUR 3,057,658      (23,923)
03/31/2023    Canadian Imperial Bank of Commerce    USD 425,044      GBP 350,447      (3,287)
03/31/2023    Morgan Stanley and Co. International PLC    SEK 34,811      USD 3,285      (45)
03/31/2023    Morgan Stanley and Co. International PLC    USD 4,294,427      EUR 4,012,021      (43,543)
03/31/2023    Morgan Stanley and Co. International PLC    USD 331,540      SEK 3,418,988      (4,432)
04/28/2023    Morgan Stanley and Co. International PLC    USD 1,069,838      EUR  1,000,000      (8,601)
03/31/2023    Royal Bank of Canada    GBP 18,899      USD 22,703      (42)
03/31/2023    Royal Bank of Canada    USD 3,266,129      EUR 3,057,658      (26,427)
03/31/2023    Toronto Dominion Bank    USD 425,550      GBP 350,447      (3,793)

        Subtotal–Depreciation

                      (116,716)

        Total Forward Foreign Currency Contracts

                      $  374,078

Abbreviations:

EUR – Euro

GBP – British Pound Sterling

SEK – Swedish Krona

USD – U.S. Dollar

Portfolio Composition†*

By credit quality, based on total investments

as of February 28, 2023

 

BBB-

      1.41 % 

BB+

      2.47  

BB

      7.04  

BB-

      9.44  

B+

      12.27  

B

      25.62  

B-

      19.83  

CCC+

      5.99  

CCC

      1.82  

CCC-

      0.04  

CC

      0.04  

D

      0.30  

NR

      5.61  

Equity

      8.13  

† Source:  Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non- Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard & Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Rating Resources on the homepage.

*

Excluding money market fund holdings, if any.

 

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

 

18

   Invesco Master Loan Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value (Cost $150,478,521)

    $ 137,604,204  

 

  

Investments in affiliated money market funds, at value (Cost $11,616,354)

      11,616,354  

 

  

Other investments:

   

Unrealized appreciation on forward foreign currency contracts outstanding

      490,794  

 

  

Cash

      2,031,384  

 

  

Foreign currencies, at value (Cost $445,872)

      444,653  

 

  

Receivable for:

   

Investments sold

      7,349,704  

 

  

Dividends

      34,959  

 

  

Interest

      1,750,033  

 

  

Investments matured, at value (Cost $657,571)

      510,173  

 

  

Investment for trustee deferred compensation and retirement plans

      66,930  

 

  

Other assets

      35,703  

 

  

Total assets

      161,934,891  

 

  

Liabilities:

   

Other investments:

   

Unrealized depreciation on forward foreign currency contracts outstanding

      116,716  

 

  

Payable for:

   

Investments purchased

      7,247,657  

 

  

Accrued fees to affiliates

      7,719  

 

  

Accrued trustees’ and officers’ fees and benefits

      1,112  

 

  

Accrued other operating expenses

      164,152  

 

  

Trustee deferred compensation and retirement plans

      66,930  

 

  

Unfunded loan commitments

      484,567  

 

  

Total liabilities

      8,088,853  

 

  

Net assets applicable to shares outstanding

    $ 153,846,038  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ (721,049,316 ) 

 

  

Distributable earnings

      874,895,354  

 

  
   $ 153,846,038  

 

  

Net Assets:

   

Class R6

    $ 153,846,038  

 

  

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

 

Class R6

      10,078,015  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 15.27  

 

  
 

 

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

 

19

   Invesco Master Loan Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Interest

    $ 6,265,498  

 

  

Dividends

      391,623  

 

  

Dividends from affiliated money market funds

      106,882  

 

  

Other income

      72,518  

 

  

Total investment income

      6,836,521  

 

  

Expenses:

   

Advisory fees

      225,683  

 

  

Administrative services fees

      11,511  

 

  

Custodian fees

      13,652  

 

  

Interest, facilities and maintenance fees

      34,900  

 

  

Transfer agent fees

      25,266  

 

  

Trustees’ and officers’ fees and benefits

      7,553  

 

  

Registration and filing fees

      11,204  

 

  

Reports to shareholders

      4,729  

 

  

Professional services fees

      48,466  

 

  

Other

      2,237  

 

  

Total expenses

      385,201  

 

  

Less: Fees waived

      (52,780 ) 

 

  

Net expenses

      332,421  

 

  

Net investment income

      6,504,100  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (3,271,702 ) 

 

  

Foreign currencies

      45,495  

 

  

Forward foreign currency contracts

      (462,162 ) 

 

  
     (3,688,369 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      2,312,093  

 

  

Foreign currencies

      (86,675 ) 

 

  

Forward foreign currency contracts

      32,279  

 

  
     2,257,697  

 

  

Net realized and unrealized gain (loss)

      (1,430,672 ) 

 

  

Net increase in net assets resulting from operations

    $ 5,073,428  

 

  

 

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

 

20

   Invesco Master Loan Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,     August 31,  
     2023     2022  

 

  

Operations:

     

Net investment income

      $    6,504,100       $    10,182,729  

 

  

Net realized gain (loss)

      (3,688,369 )      206,997  

 

  

Change in net unrealized appreciation (depreciation)

      2,257,697       (8,080,828 ) 

 

  

Net increase in net assets resulting from operations

      5,073,428       2,308,898  

 

  

Distributions to shareholders from distributable earnings:

     

Class R6

      (6,408,675 )      (10,090,269 ) 

 

  

Share transactions–net:

     

Class R6

      (21,137,394 )      (14,990,915 ) 

 

  

Net increase (decrease) in net assets

      (22,472,641 )      (22,772,286 ) 

 

  

Net assets:

     

Beginning of period

      176,318,679       199,090,965  

 

  

End of period

      $153,846,038       $176,318,679  

 

  

 

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

 

21

   Invesco Master Loan Fund

Financial Highlights

(Unaudited)

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

 

    

Net asset

value,

beginning

of period

    

Net

investment

income(a)

    

Net gains

(losses)

on securities

(both

realized and

unrealized)

    

Total from

investment

operations

    

Dividends

from net

investment

income

    

Net asset

value, end

of period

    

Total

return(b)

    

Net assets,

end of period

(000’s omitted)

    

Ratio of

expenses

to average
net assets
with

fee waivers

and/or

expenses

absorbed

    

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed(c)

    

Supplemental

ratio of

expenses

to average

net assets

with fee waivers

(excluding

interest,

facilities and

maintenance

fees)

    

Ratio of net

investment

income

to average

net assets

    

Portfolio

turnover (d)

  

Class R6

                          

Six months ended 02/28/23

     $15.38       $0.62       $(0.11 )      $0.51       $(0.62 )      $15.27       3.37 %      $153,846       0.42 %(e)      0.48 %(e)      0.38 %(e)      8.23 %(e)      10 % 

Year ended 08/31/22

     16.07       0.87       (0.70 )      0.17       (0.86 )      15.38       1.11       176,319       0.51       0.51       0.46       5.49       58  

Year ended 08/31/21

     15.15       0.78       0.91       1.69       (0.77 )      16.07       11.46       199,091       0.50       0.59       0.38       4.99       89  

Year ended 08/31/20

     17.21       0.85       (2.40 )      (1.55 )      (0.51 )      15.15       (8.97 )      179,282       0.69       0.69       0.50       5.17       53  

Eleven months ended 08/31/19

     17.56       0.94       (1.29 )      (0.35 )      –       17.21       (1.99 )      667,514       0.50 (e)      0.50 (e)      0.36 (e)      5.90 (e)      42  

Year ended 09/30/18

     16.58       0.94       0.04       0.98       –       17.56       5.91       1,352,914       0.36       0.37       0.36       5.52       66  

Year ended 09/30/17

     15.61       0.92       0.05       0.97       –       16.58       6.21       1,558,751       0.35       0.36       0.35       5.63       80  

 

(a) 

Calculated using average shares outstanding.

(b) 

Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

(c) 

Does not include indirect expenses from affiliated fund fees and expenses of 0.00%, 0.01% and 0.01% for the eleven months ended August 31, 2019 and the years ended September 30, 2018 and 2017, respectively.

(d) 

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

(e) 

Annualized.

 

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

 

22

   Invesco Master Loan Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1—Significant Accounting Policies

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

The Fund’s investment objective is to seek income.

Shares of the Fund are sold only to other investment companies. The Fund currently offers Class R6 shares. Class R6 shares are sold at net asset value.

For federal income tax purposes, the Fund qualifies as a partnership, and each investor in the Fund is treated as the owner of its proportionate share of the net assets, income, expenses, and realized and unrealized gains and losses of the Fund. Accordingly, as a “pass-through” entity, the Fund pays no dividends or capital gain distributions.

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

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

A.

Security Valuations – Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 (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 daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and the asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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, if available, 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, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or

 

23

   Invesco Master Loan Fund

other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

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

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

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

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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

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

E.

Federal Income Taxes – The Fund, as an entity, will not be subject to U.S. federal income tax. The Fund will be treated for U.S. federal income tax purposes as a partnership, and not as an association taxable as a corporation. Therefore, a tax provision is not required. Each shareholder is required for U.S. federal income tax purposes to take into account, in its taxable year with which (or within which a taxable year of the Fund ends), it distributive share of all items of Fund income, gains, losses and deduction for such taxable year of the Fund. A shareholder must take such items into account even if the Fund does not distribute cash or other property to such shareholder during its taxable year.

Although the Fund is treated as a partnership for Federal tax purposes, it is intended that the Fund’s assets, income and distributions will be managed in such a way that investment in the Fund would not cause an investor that is a regulated investment company under Subchapter M of the Code to fail that qualification.

The Fund has analyzed its tax positions, including open tax years, and does not believe there are any uncertain tax positions requiring recognition in the Fund’s financial statements.

F.

Interest, Facilities and Maintenance Fees – Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses and other expenses associated with establishing and maintaining the line of credit.

G.

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

H.

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

I.

Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.

J.

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

 

24

   Invesco Master Loan Fund

 

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

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

K.

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

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

L.

Industry Focus – To the extent that the Fund invests a greater amount of its assets in securities of issuers in the banking and financial services industries, the Fund’s performance will depend to a greater extent on the overall condition of those industries. The value of these securities can be sensitive to changes in government regulation, interest rates and economic downturns in the U.S. and abroad.

M.

Bank Loan Risk – 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, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. 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 seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

N.

Leverage Risk – The Fund may utilize leverage to seek to enhance the yield of the Fund by borrowing. There are risks associated with borrowing in an effort to increase the yield and distributions on the common shares, including that the costs of the financial leverage may exceed the income from investments purchased with such leverage proceeds, the higher volatility of the net asset value of the shares, and that fluctuations in the interest rates on the borrowing may affect the yield and distributions to the common shareholders. There can be no assurance that the Fund’s leverage strategy will be successful.

O.

Other Risks – The Fund may invest all or substantially all of its assets in senior secured floating rate loans and senior secured debt securities that are determined to be 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”.

Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.

Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.

P.

COVID-19 Risk – The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”) Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an annual fee of 0.29% based on the average daily net assets of the Fund. The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least December 31, 2023, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) to 0.38% of the Fund’s average daily net

 

25

   Invesco Master Loan Fund

assets (the “expense limit”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limit or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended February 28, 2023, the Adviser waived advisory fees of $52,780.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Fund, SSB also serves as the funds’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     

Level 1

 

     

Level 2

 

     

Level 3

 

     

Total

 

  

Investments in Securities

                                    

Variable Rate Senior Loan Interests

    $ –      $ 110,815,816      $ 9,163,056      $ 119,978,872  

Common Stocks & Other Equity Interests

      –        1,946,222        6,488,200        8,434,422  

U.S. Dollar Denominated Bonds & Notes

      –        4,261,142        –        4,261,142  

Preferred Stocks

      –        2,686,051        124,696        2,810,747  

Non-U.S. Dollar Denominated Bonds & Notes

      –        2,119,021        –        2,119,021  

Money Market Funds

      11,616,354        –        –        11,616,354  

Total Investments in Securities

      11,616,354        121,828,252        15,775,952        149,220,558  

Other Investments - Assets*

                                    

Investments Matured

      –        510,173        –        510,173  

Forward Foreign Currency Contracts

      –        490,794        –        490,794  
       –        1,000,967        –        1,000,967  

Other Investments - Liabilities*

                                    

Forward Foreign Currency Contracts

      –        (116,716 )       –        (116,716 ) 

Total Other Investments

      –        884,251        –        884,251  

Total Investments

    $ 11,616,354      $ 122,712,503      $ 15,775,952      $ 150,104,809  

 

*

Unrealized appreciation (depreciation).

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.

 

26

   Invesco Master Loan Fund

    The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended February 28, 2023:

 

     Value
08/31/22		    

Purchases

at Cost

     Proceeds
from Sales		     Accrued
Discounts/
Premiums		     Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		    

Transfers

into

Level 3*

    

Transfers

out of

Level 3*

     Value
02/28/23		  

Variable Rate Senior Loan Interests

   $ 9,290,887     $ 2,469,760     $ (1,305,966 )      $26,060       $  (46,574)       $ (379,418 )    $ 2,667,640     $ (3,559,333 )    $ 9,163,056  

Common Stocks & Other Equity Interests

     896,150       –       (48,301 )      –       (1,933)       2,332,870       3,820,990       (511,576 )      6,488,200  

Preferred Stocks

     141,760       –       –       –       –       (74,519 )      57,455       –       124,696  

    Total

   $ 10,328,797     $ 2,469,760     $ (1,354,267 )      $26,060       $(48,507)       $1,878,933     $ 6,546,085     $ (4,070,909 )    $ 15,775,952  

* Transfers into and out of level 3 are due to increases or decreases in market activity impacting the available market inputs to determine the price.

    Securities determined to be Level 3 at the end of the reporting period were valued primarily by utilizing evaluated prices from a third-party vendor pricing service. A significant change in third-party pricing information could result in a lower or higher value in Level 3 investments.

    The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as level 3 at period end:

 

      Fair Value
at 02/28/23		      Valuation
Technique		      Unobservable
Inputs		      Range of
Unobservable
Inputs		      Unobservable
Input Used		  

QuarterNorth Energy, Inc.

    $ 6,308,273        Bid Offer        Bid Offer Price        N/A      $ 199.49 (a) 

 

(a) 

QuarterNorth Energy, Inc. publicly announced that it has engaged a financial advisor to pursue a sale of the company. The Adviser values the common shares at the first round of bids for the sale of the business. The Adviser periodically reviews the financial statements and monitors such investments for additional market information of the occurrence of a significant event which would warrant a re-evaluation of the security’s fair valuation.

NOTE 4 – Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value
Derivative Assets    Currency
Risk

Unrealized appreciation on forward foreign currency contracts outstanding

    $490,794

Derivatives not subject to master netting agreements

    –

Total Derivative Assets subject to master netting agreements

    $490,794

 

     Value
Derivative Liabilities    Currency
Risk

Unrealized depreciation on forward foreign currency contracts outstanding

    $(116,716)

Derivatives not subject to master netting agreements

    –

Total Derivative Liabilities subject to master netting agreements

    $(116,716)

 

27

   Invesco Master Loan Fund

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2023.

 

   

Financial

Derivative

        Assets         

           

Financial
Derivative
        Liabilities         

           

Collateral
(Received)/Pledged

       
Counterparty   Forward Foreign
Currency Contracts		            Forward Foreign
Currency Contracts		      Net Value of
Derivatives		     Non-Cash    Cash    Net
Amount		  

 

  

Barclays Capital

     $    3,234                $      (2,623)              $        611     $  –          $  –            $        611  

 

  

BNP Paribas S.A.

     152,053                (23,923)              128,130       –            –            128,130  

 

  

Canadian Imperial Bank of Commerce

     3,314                (3,287)              27       –            –            27  

 

  

Morgan Stanley and Co. International PLC

     144,240                (56,621)              87,619       –            –            87,619  

 

  

Royal Bank of Canada

     157,186                (26,469)              130,717       –            –            130,717  

 

  

State Street Bank & Trust Co.

     7,798                –                7,798       –            –            7,798  

 

  

Toronto Dominion Bank

     22,969                (3,793)              19,176       –            –            19,176  

 

  

Total

     $490,794                $  (116,716)              $ 374,078     $  –          $  –            $ 374,078  

 

  

Effect of Derivative Investments for the six months ended February 28, 2023

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

 

     Location of Gain (Loss) on
Statement of Operations
     

Currency

Risk

Realized Gain (Loss):

   

Forward foreign currency contracts

     $(462,162)

Change in Net Unrealized Appreciation:

   

Forward foreign currency contracts

          32,279

Total

      $(429,883)

The table below summarizes the average notional value of derivatives held during the period.

 

      Forward
Foreign Currency
Contracts

Average notional value

    $39,158,167

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6–Cash Balances and Borrowings

Effective February 17, 2023, the Fund has entered into a credit agreement, which enables the Fund to participate with certain other Invesco Funds in a committed secured borrowing facility that permits borrowings up to $1.07 billion, collectively by certain Invesco Funds, and which will expire on February 16, 2024. Prior to February 17, 2023, the credit agreement permitted borrowings up to $1.1 billion. The credit agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the credit agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the credit agreement. During the six months ended February 28, 2023, the Fund did not borrow under this agreement.

    Additionally, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

 

28

   Invesco Master Loan Fund

NOTE 7—Unfunded Loan Commitments

Pursuant to the terms of certain Senior Loan agreements, the Fund held the following unfunded loan commitments as of February 28, 2023. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid Senior Loans as a reserve. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

 

Borrower    Type    Unfunded Loan
Commitment		      Unrealized
Appreciation
(Depreciation)

athenahealth Group, Inc.

    Delayed Draw Term Loan      $  90,942            $  (6,556)  

Avaya, Inc.

    DIP Term Loan      51,371      3,758  

Dermatology Intermediate Holdings III, Inc.

    Delayed Draw Term Loan      140      (3)  

McDermott International Ltd.

    LOC      342,114      (63,291)  
            $484,567              $(66,092)  

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $14,608,764 and $46,650,827, respectively.

NOTE 9–Senior Loan Participation 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 six months ended February 28, 2023, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.

 

Selling Participant    Principal
Amount		      Value  

Barclays Bank PLC

    $ 342,114      $ 283,955  

Bank of America, N.A.

      214,684        196,436  

NOTE 10–Share Information

 

    

Summary of Share Activity

  

 

  
    

Six months ended

February 28, 2023(a)

    

Year ended

August 31, 2022

  
  

 

 

    

 

 

  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class R6

      –     $ –       1,491,111     $ 23,923,385  

 

  

Issued as reinvestment of dividends:

         

Class R6

      420,038       6,392,557       641,676       10,090,269  

 

  

Reacquired:

         

Class R6

      (1,803,164 )      (27,529,951 )      (3,062,481 )      (49,004,569 ) 

 

  

Net increase (decrease) in share activity

      (1,383,126 )    $ (21,137,394 )      (929,694 )    $ (14,990,915 ) 

 

  

 

(a) 

100% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.

 

29

   Invesco Master Loan Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

    The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

    Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

         

ACTUAL

  

HYPOTHETICAL

    (5% annual return before    

expenses)

     
     Beginning
    Account Value    
(09/01/22)		   Ending
    Account Value    
(02/28/23)1		   Expenses
    Paid During    
Period2		   Ending
    Account Value    
(02/28/23)2		   Expenses
    Paid During    
Period		  

    Annualized    
Expense

Ratio

Class R6

   $1,000.00   $1,033.70   $2.12   $1,022.71   $2.11   0.42%

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

30

   Invesco Master Loan Fund

 

 

 

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Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

 

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SEC file number(s): 811-09913 and 333-36074    Invesco Distributors, Inc.                O-MLF-SAR-1

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Semiannual Report to Shareholders    February 28, 2023

Invesco NASDAQ 100 Index Fund

Nasdaq:

R6: IVNQX

 

 

 

 

    

2    Fund Performance
4    Schedule of Investments
7    Financial Statements
10    Financial Highlights
11    Notes to Financial Statements
16    Fund Expenses

 

 

 

 

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class R6 Shares

      -0.90 % 

NASDAQ-100 Index▼ (Broad Market/Style-Specific Index)

      -1.42  

Lipper Large-Cap Growth Funds Index∎ (Peer Group Index)

      -0.72  

Source(s): ▼Bloomberg LP; ∎Lipper Inc.

 

 

The NASDAQ-100® Index includes 100 of the largest domestic and international nonfinancial securities listed on The Nasdaq Stock Market, based on the market capitalization.

  The Lipper Large-Cap Growth Funds Index is an unmanaged index considered representative of large-cap growth funds tracked by Lipper.

  A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 

 

 

 

 

 

 

For more information about your Fund

 

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

 

    

 

 

2   Invesco NASDAQ 100 Index Fund

    

 

 Average Annual Total Returns

 

 As of 2/28/23

 

Class R6 Shares

 

Inception (10/13/20)

      0.57 % 

1 Year

      -14.19  

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Performance figures reflect reinvested distributions and changes in net asset value. Shares of the Fund are sold at net asset value without a sales charge. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

    The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

 

3   Invesco NASDAQ 100 Index Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–98.92%

 

Apparel Retail–0.32%

      

Ross Stores, Inc.

      371      $ 41,010  

Apparel, Accessories & Luxury Goods–0.31%

 

lululemon athletica, inc.(b)

      132        40,814  

Application Software–4.50%

      

Adobe, Inc.(b)

      498        161,327  

ANSYS, Inc.(b)

      93        28,236  

Atlassian Corp., Class A(b)

      159        26,129  

Autodesk, Inc.(b)

      231        45,897  

Cadence Design Systems, Inc.(b)

      295        56,917  

Datadog, Inc., Class A(b)

      314        24,027  

Intuit, Inc.

      301        122,561  

Synopsys, Inc.(b)

      164        59,657  

Workday, Inc., Class A(b)

      217        40,247  

Zoom Video Communications, Inc.,

                  

Class A(b)

      263        19,617  
                584,615  

Automobile Manufacturers–4.40%

      

Lucid Group, Inc.(b)

      1,783        16,279  

Rivian Automotive, Inc., Class A(b)

      969        18,701  

Tesla, Inc.(b)

      2,607        536,286  
                571,266  

Automotive Retail–0.43%

      

O’Reilly Automotive, Inc.(b)

      67        55,617  

Biotechnology–4.17%

      

Amgen, Inc.

      571        132,278  

Biogen, Inc.(b)

      154        41,559  

Gilead Sciences, Inc.

      1,344        108,232  

Moderna, Inc.(b)

      411        57,051  

Regeneron Pharmaceuticals, Inc.(b)

      115        87,448  

Seagen, Inc.(b)

      199        35,758  

Vertex Pharmaceuticals, Inc.(b)

      275        79,830  
                542,156  

Cable & Satellite–1.93%

      

Charter Communications, Inc.,

      

Class A(b)

      167        61,391  

Comcast Corp., Class A

      4,621        171,763  

Sirius XM Holdings, Inc.(c)

      4,127        18,117  
                251,271  

Communications Equipment–1.64%

 

Cisco Systems, Inc.

      4,400        213,048  

Construction Machinery & Heavy Trucks–0.31%

 

PACCAR, Inc.

      558        40,288  

Data Processing & Outsourced Services–2.38%

 

Automatic Data Processing, Inc.

      445        97,820  

Fiserv, Inc.(b)

      679        78,146  

Paychex, Inc.

      388        42,835  

PayPal Holdings, Inc.(b)

      1,221        89,866  
                308,667  
      Shares      Value  

Diversified Support Services–0.64%

      

Cintas Corp.

      109      $ 47,793  

Copart, Inc.(b)

      511        36,005  
                83,798  

Drug Retail–0.25%

      

Walgreens Boots Alliance, Inc.

      927        32,936  

Electric Utilities–1.20%

      

American Electric Power Co., Inc.

      551        48,472  

Constellation Energy Corp.

      351        26,286  

Exelon Corp.

      1,063        42,935  

Xcel Energy, Inc.

      585        37,773  
                155,466  

General Merchandise Stores–0.26%

 

Dollar Tree, Inc.(b)

      237        34,431  

Health Care Equipment–1.35%

      

DexCom, Inc.(b)

      414        45,958  

IDEXX Laboratories, Inc.(b)

      89        42,118  

Intuitive Surgical, Inc.(b)

      378        86,710  
                174,786  

Health Care Supplies–0.20%

      

Align Technology, Inc.(b)

      83        25,688  

Hotels, Resorts & Cruise Lines–1.66%

 

Airbnb, Inc., Class A(b)

      426        52,517  

Booking Holdings, Inc.(b)

      42        106,008  

Marriott International, Inc., Class A

      338        57,203  
                215,728  

Hypermarkets & Super Centers–1.77%

 

Costco Wholesale Corp.

      474        229,501  

Industrial Conglomerates–1.06%

      

Honeywell International, Inc.

      720        137,866  

Interactive Home Entertainment–0.74%

 

Activision Blizzard, Inc.

      839        63,974  

Electronic Arts, Inc.

      296        32,838  
                96,812  

Interactive Media & Services–10.22%

 

Alphabet, Inc., Class A(b)

      5,026        452,642  

Alphabet, Inc., Class C(b)

      5,025        453,757  

Meta Platforms, Inc., Class A(b)

      2,408        421,256  
                1,327,655  

Internet & Direct Marketing Retail–7.34%

 

Amazon.com, Inc.(b)

      8,422        793,605  

eBay, Inc.

      585        26,852  

JD.com, Inc., ADR (China)

      521        23,153  

MercadoLibre, Inc. (Brazil)(b)

      54        65,880  

PDD Holdings Inc., ADR (China)(b)

      501        43,953  
                953,443  

IT Consulting & Other Services–0.26%

 

Cognizant Technology Solutions Corp., Class A

      550        34,446  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

4   Invesco NASDAQ 100 Index Fund

      Shares      Value  

Life Sciences Tools & Services–0.26%

 

Illumina, Inc.(b)

      168      $ 33,466  

Movies & Entertainment–1.49%

 

Netflix, Inc.(b)

      476        153,334  

Warner Bros Discovery, Inc.(b)

      2,598        40,581  
         193,915  

Oil & Gas Equipment & Services–0.25%

 

Baker Hughes Co., Class A

      1,072        32,803  

Oil & Gas Exploration & Production–0.20%

 

Diamondback Energy, Inc.

      189        26,570  

Packaged Foods & Meats–1.13%

 

Kraft Heinz Co. (The)

      1,311        51,050  

Mondelez International, Inc., Class A

      1,462        95,293  
         146,343  

Pharmaceuticals–0.33%

 

AstraZeneca PLC, ADR (United Kingdom)

      654        42,628  

Railroads–0.53%

 

CSX Corp.

      2,252        68,663  

Research & Consulting Services–0.46%

 

CoStar Group, Inc.(b)

      436        30,808  

Verisk Analytics, Inc.

      168        28,746  
         59,554  

Restaurants–0.97%

 

Starbucks Corp.

      1,230        125,571  

Semiconductor Equipment–2.50%

 

Applied Materials, Inc.

      922        107,090  

ASML Holding N.V., New York Shares (Netherlands)

      95        58,684  

Enphase Energy, Inc.(b)

      146        30,737  

KLA Corp.

      151        57,287  

Lam Research Corp.

      147        71,444  
         325,242  

Semiconductors–13.66%

 

Advanced Micro Devices, Inc.(b)

      1,727        135,708  

Analog Devices, Inc.

      546        100,175  

Broadcom, Inc.

      434        257,922  

GLOBALFOUNDRIES, Inc.(b)

      583        38,093  

Intel Corp.

      4,420        110,191  

Marvell Technology, Inc.

      912        41,177  

Microchip Technology, Inc.

      592        47,970  

Micron Technology, Inc.

      1,161        67,129  

NVIDIA Corp.

      2,635        611,741  

NXP Semiconductors N.V. (China)

      277        49,439  

QUALCOMM, Inc.

      1,201        148,359  

Texas Instruments, Inc.

      971        166,478  
         1,774,382  

Investment Abbreviations:

ADR – American Depositary Receipt

      Shares     Value  

Soft Drinks–2.81%

 

Keurig Dr Pepper, Inc.

      1,516     $ 52,378  

 

  

Monster Beverage Corp.(b)

      559       56,884  

 

  

PepsiCo, Inc.

      1,474       255,783  

 

  
    365,045  

 

  

Systems Software–12.99%

 

Crowdstrike Holdings, Inc., Class A(b)

      235       28,362  

 

  

Fortinet, Inc.(b)

      836       49,692  

 

  

Microsoft Corp.

      6,130       1,528,945  

 

  

Palo Alto Networks, Inc.(b)

      324       61,032  

 

  

Zscaler, Inc.(b)

      156       20,459  

 

  
    1,688,490  

 

  

Technology Hardware, Storage & Peripherals–11.99%

 

Apple, Inc.(d)

      10,566       1,557,534  

 

  

Trading Companies & Distributors–0.24%

 

Fastenal Co.

      614       31,658  

 

  

Trucking–0.31%

 

Old Dominion Freight Line, Inc.

      119       40,372  

 

  

Wireless Telecommunication Services–1.46%

 

T-Mobile US, Inc.(b)

      1,333       189,526  

 

  

Total Common Stocks & Other Equity Interests
(Cost $12,763,706)

 

     12,853,070  

 

  

Money Market Funds–1.14%

 

Invesco Government & Agency Portfolio, Institutional Class,
4.51%(e)(f)

      52,109       52,109  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(e)(f)

      37,215       37,223  

 

  

Invesco Treasury Portfolio, Institutional Class, 4.50%(e)(f)

      59,553       59,553  

 

  

Total Money Market Funds (Cost $148,881)

 

     148,885  

 

  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.06% (Cost $12,912,587)

 

     13,001,955  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–0.14%

 

Invesco Private Government Fund, 4.58%(e)(f)(g)

      5,173       5,173  

 

  

Invesco Private Prime Fund,
4.83%(e)(f)(g)

      12,563       12,565  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $17,738)

 

     17,738  

 

  

TOTAL INVESTMENTS IN SECURITIES–100.20%
(Cost $12,930,325)

 

     13,019,693  

 

  

OTHER ASSETS LESS LIABILITIES–(0.20)%

 

     (26,463 ) 

 

  

NET ASSETS–100.00%

 

   $ 12,993,230  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

5   Invesco NASDAQ 100 Index Fund

Notes to Schedule of Investments:

 

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at February 28, 2023.

(d) 

All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I.

(e) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

     

Value

August 31, 2022

   

Purchases

at Cost

   

Proceeds

from Sales

  

Change in

Unrealized

Appreciation

(Depreciation)

  

Realized

Gain

(Loss)

  

Value

February 28,
2023

   

Dividend Income

Investments in Affiliated Money Market Funds:

                                                                          

Invesco Government & Agency Portfolio, Institutional Class

      $ 207,032      $ 1,858,460      $ (2,013,383 )     $ -     $ -     $ 52,109      $ 1,783

Invesco Liquid Assets Portfolio, Institutional Class

        147,886        1,327,471        (1,438,131 )       (6 )       3       37,223        1,499

Invesco Treasury Portfolio, Institutional Class

        236,608        2,123,954        (2,301,009 )       -       -       59,553        2,312

Investments Purchased with Cash Collateral from Securities on Loan:

                                                                          

Invesco Private Government Fund

        31,849        493,269        (519,945 )       -       -       5,173        391 *

Invesco Private Prime Fund

        81,896        1,242,673        (1,311,990 )       (8 )       (6 )       12,565        1,057 *

Total

      $ 705,271      $ 7,045,827      $ (7,584,458 )     $ (14 )     $ (3 )     $ 166,623      $ 7,042

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(f) 

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(g) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1H.

 

Open Futures Contracts  
Long Futures Contracts    Number of
Contracts		      Expiration
Month		      Notional
Value		      Value      Unrealized
Appreciation		  

Equity Risk

                                             

Micro E-Mini Nasdaq 100 Index

      5        March-2023        $120,723        $3,192        $3,192  

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Information Technology

      49.92 % 

Communication Services

      15.85  

Consumer Discretionary

      15.68  

Health Care

      6.30  

Consumer Staples

      5.95  

Industrials

      3.56  

Other Sectors, Each Less than 2% of Net Assets

      1.66  

Money Market Funds Plus Other Assets Less Liabilities

      1.08  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

6   Invesco NASDAQ 100 Index Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

  

Investments in unaffiliated securities, at value
(Cost $ 12,763,706)*

   $ 12,853,070  

Investments in affiliated money market funds, at value
(Cost $ 166,619)

     166,623  

Receivable for:

  

Fund shares sold

     13,420  

Fund expenses absorbed

     69,646  

Dividends

     12,616  

Investment for trustee deferred compensation and retirement plans

     10,544  

Other assets

     13,590  

Total assets

     13,139,509  

Liabilities:

  

Other investments:

  

Variation margin payable - futures contracts

     114  

Payable for:

  

Investments purchased

     17,623  

Fund shares reacquired

     4,789  

Collateral upon return of securities loaned

     17,738  

Accrued fees to affiliates

     21,234  

Accrued trustees’ and officers’ fees and benefits

     1,458  

Accrued other operating expenses

     72,779  

Trustee deferred compensation and retirement plans

     10,544  

Total liabilities

     146,279  

Net assets applicable to shares outstanding

   $ 12,993,230  

Net assets consist of:

   

Shares of beneficial interest

    $ 13,982,778  

Distributable earnings (loss)

      (989,548 ) 
     $ 12,993,230  

Net Assets:

   

Class R6

    $ 12,993,230  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class R6

      521,791  

Class R6:

   

Net asset value and offering price per share

    $ 24.90  

 

*

At February 28, 2023, security with a value of $17,029 was on loan to brokers.

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

7   Invesco NASDAQ 100 Index Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Dividends (net of foreign withholding taxes of $101)

    $ 51,404  

 

  

Dividends from affiliated money market funds (includes net securities lending income of $744)

      6,338  

 

  

Total investment income

      57,742  

 

  

Expenses:

   

Advisory fees

      8,146  

 

  

Administrative services fees

      688  

 

  

Custodian fees

      7,798  

 

  

Transfer agent fees

      1,362  

 

  

Trustees’ and officers’ fees and benefits

      6,818  

 

  

Registration and filing fees

      16,531  

 

  

Licensing fees

      2,523  

 

  

Reports to shareholders

      4,621  

 

  

Professional services fees

      31,669  

 

  

Other

      1,182  

 

  

Total expenses

      81,338  

 

  

Less: Fees waived

      (65,754 ) 

 

  

Net expenses

      15,584  

 

  

Net investment income

      42,158  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

 

Unaffiliated investment securities

      (643,547 ) 

 

  

Affiliated investment securities

      (3 ) 

 

  

Futures contracts

      (7,359 ) 

 

  
     (650,909 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      626,934  

 

  

Affiliated investment securities

      (14 ) 

 

  

Futures contracts

      2,574  

 

  
     629,494  

 

  

Net realized and unrealized gain (loss)

      (21,415 ) 

 

  

Net increase in net assets resulting from operations

    $ 20,743  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

8   Invesco NASDAQ 100 Index Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,     August 31,  
      2023     2022  

Operations:

     

Net investment income

    $ 42,158     $ 33,709  

Net realized gain (loss)

      (650,909 )      (428,736 ) 

Change in net unrealized appreciation (depreciation)

      629,494       (1,316,627 ) 

Net increase (decrease) in net assets resulting from operations

      20,743       (1,711,654 ) 

Distributions to shareholders from distributable earnings:

     

Class R6

      (43,579 )      (56,806 ) 

Share transactions-net:

     

Class R6

      4,220,139       6,168,102  

Net increase in net assets

      4,197,303       4,399,642  

Net assets:

     

Beginning of period

      8,795,927       4,396,285  

End of period

    $ 12,993,230     $ 8,795,927  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

9   Invesco NASDAQ 100 Index Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

   Total return (b)  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class R6

                            

Six months ended 02/28/23

     $25.23        $0.09         $(0.32 )        $(0.23 )        $(0.10 )       $      –       $(0.10 )        $24.90        (0.90 )%      $12,993         0.29 %(d)      1.50 %(d)      0.77 %(d)      18 % 

Year ended 08/31/22

     32.18       0.15       (6.81 )      (6.66 )      (0.14 )      (0.15 )      (0.29 )      25.23       (20.86 )      8,796       0.29       1.71       0.52       21  

Period ended 08/31/21(e)

     25.00       0.11       7.18       7.29       (0.11 )      –       (0.11 )      32.18       29.24       4,396       0.29 (d)      5.30 (d)      0.46 (d)      6  

 

(a) 

Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable.

(c)

Portfolio turnover is not annualized for periods less than one year, if applicable.

(d)

Annualized.

(e)

Commencement date of October 13, 2020.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

10   Invesco NASDAQ 100 Index Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco NASDAQ 100 Index Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is to seek to track the investment results (before fees and expenses) of the NASDAQ-100 Index® (the “Underlying Index”).

The Fund currently consists of one class of shares, Class R6. Class R6 shares are sold at net asset value.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations – Securities, including restricted securities, are valued according to the following policy.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from

 

11   Invesco NASDAQ 100 Index Fund

settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C.

Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions – Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes –The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Accounting Estimates –The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

G.

Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

H.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.

When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.

I.

Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) 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

 

12   Invesco NASDAQ 100 Index Fund

between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

J.

Collateral – To the extent the Fund has 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. This practice does not apply to securities pledged as collateral for securities lending transactions.

K.

Other Risks – The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.

L.

COVID-19 Risk – The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

 

Average Daily Net Assets    Rate  

 

  

First $2 billion

      0.150%  

 

  

Over $ 2 billion

      0.140%  

 

  

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.15%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least December 31, 2023, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class R6 shares to 0.29% of the Fund’s average daily net assets (the “expense limit”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended February 28, 2023, the Adviser waived advisory fees of $65,590 and reimbursed Fund expenses of $164.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Trust has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Trust and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Trust, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund’s shares. The Fund does not pay a distribution fee to IDI under the agreement.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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.

 

13   Invesco NASDAQ 100 Index Fund

Level 3 -   Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1      Level 2      Level 3      Total  

 

  

Investments in Securities

            

 

  

Common Stocks & Other Equity Interests

      $12,853,070        $         –        $–        $12,853,070  

 

  

Money Market Funds

      148,885        17,738          –        166,623  

 

  

Total Investments in Securities

      13,001,955        17,738          –        13,019,693  

 

  

Other Investments - Assets*

            

 

  

Futures Contracts

      3,192        –          –        3,192  

 

  

Total Investments

      $13,005,147        $17,738        $–        $13,022,885  

 

  

 

*

Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  
  

 

 

  
     Equity  
Derivative Assets    Risk  

 

  

Unrealized appreciation on futures contracts –Exchange-Traded(a)

    $ 3,192  

 

  

Derivatives not subject to master netting agreements

      (3,192 ) 

 

  

Total Derivative Assets subject to master netting agreements

    $ –  

 

  

 

(a) 

The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended February 28, 2023

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

 

     Location of Gain (Loss) on  
     Statement of Operations  
  

 

 

  
     Equity  
     Risk  

 

  

Realized Gain (Loss):

   

Futures contracts

      $   (7,359)  

 

  

Change in Net Unrealized Appreciation:

   

Futures contracts

      2,574  

 

  

Total

      $(4,785)  

 

  

The table below summarizes the average notional value of derivatives held during the period.

 

     Futures  
     Contracts  

 

  

Average notional value

    $ 196,199  

 

  

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

 

14   Invesco NASDAQ 100 Index Fund

NOTE 6–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

Capital Loss Carryforward*  

 

  
Expiration    Short-Term      Long-Term      Total  

 

  

Not subject to expiration

    $ 23,554      $ 28,228      $ 51,782  

 

  

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $6,146,218 and $1,919,733, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of investments

    $ 386,609  

 

  

Aggregate unrealized (depreciation) of investments

      (683,279 ) 

 

  

Net unrealized appreciation (depreciation) of investments

    $ (296,670 ) 

 

  

Cost of investments for tax purposes is $13,319,555.

NOTE 9–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class R6

      240,760     $ 5,864,203       269,443     $ 7,704,101  

 

  

Issued as reinvestment of dividends:

         

Class R6

      1,546       37,187       1,103       33,119  

 

  

Reacquired:

         

Class R6

      (69,080 )      (1,681,251 )      (58,592 )      (1,569,118 ) 

 

  

Net increase in share activity

      173,226     $ 4,220,139       211,954     $ 6,168,102  

 

  

 

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 59% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

  

    In addition, 8% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.

 

15   Invesco NASDAQ 100 Index Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

    The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

    Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

          ACTUAL  

HYPOTHETICAL

(5% annual return before

expenses)

     
     Beginning
    Account Value    
(09/01/22)		   Ending
    Account Value    
(02/28/23)1		   Expenses
    Paid During    
Period2		   Ending
    Account Value    
(02/28/23)		   Expenses
    Paid During    
Period2		  

    Annualized    
Expense

Ratio

Class R6

   $1,000.00   $991.00   $1.43   $1,023.36   $1.45   0.29%

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

16   Invesco NASDAQ 100 Index Fund

 

 

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Go paperless with eDelivery

Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

 

∎

Fund reports and prospectuses

∎

Quarterly statements

∎

Daily confirmations

∎

Tax forms

 

 

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

    Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

 

 

LOGO

 

SEC file number(s): 811-09913 and 333-36074                     Invesco Distributors, Inc.    NDQ-SAR-1                                         

LOGO

 

   
Semiannual Report to Shareholders   February 28, 2023

Invesco S&P 500 Index Fund

Nasdaq:

A: SPIAX ∎ C: SPICX ∎ Y: SPIDX ∎ R6: SPISX

 

    

2   Fund Performance
4   Schedule of Investments
13   Financial Statements
16   Financial Highlights
17   Notes to Financial Statements
23   Fund Expenses

 

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

 

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     0.99 % 

Class C Shares

     0.63  

Class Y Shares

     1.11  

Class R6 Shares

     1.16  

S&P 500 Index▼ (Broad Market/Style-Specific Index)

     1.26  

Lipper S&P 500 Objective Funds Index∎ (Peer Group Index)

     1.14  

Source(s): ▼RIMES Technologies Corp.; ∎ Lipper Inc.

        

The S&P 500® Index is an unmanaged index considered representative of the US stock market.

 

    The Lipper S&P 500 Objective Funds Index is an unmanaged index considered representative of S&P 500 funds tracked by Lipper.

 

    A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 

 

 

 

For more information about your Fund

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

    Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

 

2   Invesco S&P 500 Index Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (9/26/97)

     6.94 % 

10 Years

     11.00  

  5 Years

     8.01  

  1 Year

     -13.22  

Class C Shares

        

Inception (9/26/97)

     6.92 % 

10 Years

     10.97  

  5 Years

     8.44  

  1 Year

     -9.77  

Class Y Shares

        

Inception (9/26/97)

     7.44 % 

10 Years

     11.90  

  5 Years

     9.50  

  1 Year

     -7.95  

Class R6 Shares

        

10 Years

     11.84 % 

  5 Years

     9.57  

  1 Year

     -7.88  

Effective June 1, 2010, Class A, Class C and Class I shares of the predecessor fund, Morgan Stanley S&P 500 Index Fund, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class C and Class Y shares, respectively, of Invesco S&P 500 Index Fund. Returns shown above, prior to June 1, 2010, for Class A, Class C and Class Y shares are those for Class A, Class C and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of the Fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y and Class R6 shares do not have a front-end sales charge or a

CDSC; therefore, performance is at net asset value.

    The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

    

 

 

3   Invesco S&P 500 Index Fund

Schedule of Investments(a)

February 28, 2023

(Unaudited)

 

     Shares      Value  

 

  

Common Stocks & Other Equity Interests-98.01%

 

Advertising-0.10%

      

Interpublic Group of Cos., Inc. (The)

      23,863      $ 848,091  

 

  

Omnicom Group, Inc.

      12,559               1,137,469  

 

  
        1,985,560  

 

  

Aerospace & Defense-1.78%

      

Boeing Co. (The)(b)

      34,458        6,945,010  

 

  

General Dynamics Corp.

      13,792        3,143,335  

 

  

Howmet Aerospace, Inc.

      22,798        961,619  

 

  

Huntington Ingalls Industries, Inc.

      2,498        537,569  

 

  

L3Harris Technologies, Inc.

      11,732        2,477,681  

 

  

Lockheed Martin Corp.

      14,346        6,803,734  

 

  

Northrop Grumman Corp.

      8,893        4,127,330  

 

  

Raytheon Technologies Corp.

      90,421        8,869,396  

 

  

Textron, Inc.

      12,841        931,358  

 

  

TransDigm Group, Inc.

      3,195        2,376,665  

 

  
        37,173,697  

 

  

Agricultural & Farm Machinery-0.34%

 

Deere & Co.

      16,893        7,082,221  

 

  

Agricultural Products-0.13%

      

Archer-Daniels-Midland Co.

      33,788        2,689,525  

 

  

Air Freight & Logistics-0.62%

      

C.H. Robinson Worldwide, Inc.

      7,241        723,810  

 

  

Expeditors International of Washington, Inc.

      9,788        1,023,433  

 

  

FedEx Corp.

      14,725        2,992,415  

 

  

United Parcel Service, Inc., Class B

      44,970        8,206,575  

 

  
        12,946,233  

 

  

Airlines-0.23%

      

Alaska Air Group, Inc.(b)(c)

      7,635        365,182  

 

  

American Airlines Group, Inc.(b)

      38,654        617,691  

 

  

Delta Air Lines, Inc.(b)

      39,438        1,512,053  

 

  

Southwest Airlines Co.

      36,521        1,226,375  

 

  

United Airlines Holdings, Inc.(b)

      20,108        1,044,812  

 

  
        4,766,113  

 

  

Alternative Carriers-0.01%

      

Lumen Technologies, Inc.(c)

      55,864        189,938  

 

  

Apparel Retail-0.38%

      

Ross Stores, Inc.

      21,420        2,367,767  

 

  

TJX Cos., Inc. (The)

      71,414        5,470,312  

 

  
        7,838,079  

 

  

Apparel, Accessories & Luxury Goods-0.07%

 

Ralph Lauren Corp.(c)

      2,527        298,666  

 

  

Tapestry, Inc.

      14,821        644,862  

 

  

VF Corp.

      20,314        504,193  

 

  
        1,447,721  

 

  

Application Software-2.08%

      

Adobe, Inc.(b)

      28,595        9,263,350  

 

  

ANSYS, Inc.(b)

      5,291        1,606,401  

 

  
     Shares      Value  

 

  

Application Software-(continued)

 

Autodesk, Inc.(b)

      13,335      $ 2,649,531  

 

  

Cadence Design Systems, Inc.(b)

      16,801               3,241,585  

 

  

Ceridian HCM Holding, Inc.(b)

      9,386        684,521  

 

  

Intuit, Inc.

      17,301        7,044,621  

 

  

Paycom Software, Inc.(b)

      2,990        864,289  

 

  

PTC, Inc.(b)

      6,381        799,731  

 

  

Roper Technologies, Inc.

      6,541        2,813,938  

 

  

salesforce.com, inc.(b)

      61,508        10,063,324  

 

  

Synopsys, Inc.(b)

      9,406        3,421,527  

 

  

Tyler Technologies, Inc.(b)

      2,561        822,721  

 

  
        43,275,539  

 

  

Asset Management & Custody Banks-0.80%

 

Ameriprise Financial, Inc.

      6,546        2,244,427  

 

  

Bank of New York Mellon Corp. (The)

      45,354        2,307,612  

 

  

BlackRock, Inc.

      9,247        6,375,159  

 

  

Franklin Resources, Inc.

      16,776        494,389  

 

  

Invesco Ltd.(d)

      27,899        492,696  

 

  

Northern Trust Corp.

      12,931        1,231,936  

 

  

State Street Corp.

      22,569        2,001,419  

 

  

T. Rowe Price Group, Inc.

      13,894        1,560,018  

 

  
        16,707,656  

 

  

Auto Parts & Equipment-0.13%

      

Aptiv PLC(b)

      16,666        1,937,922  

 

  

BorgWarner, Inc.

      14,313        719,658  

 

  
        2,657,580  

 

  

Automobile Manufacturers-1.93%

      

Ford Motor Co.

      243,017        2,933,215  

 

  

General Motors Co.

      87,384        3,385,256  

 

  

Tesla, Inc.(b)

      165,093        33,961,281  

 

  
        40,279,752  

 

  

Automotive Retail-0.35%

      

Advance Auto Parts, Inc.

      3,814        552,878  

 

  

AutoZone, Inc.(b)

      1,167        2,901,792  

 

  

CarMax, Inc.(b)(c)

      9,679        668,238  

 

  

O’Reilly Automotive, Inc.(b)

      3,849        3,195,055  

 

  
        7,317,963  

 

  

Biotechnology-2.22%

      

AbbVie, Inc.

      108,776        16,740,626  

 

  

Amgen, Inc.

      32,819        7,602,850  

 

  

Biogen, Inc.(b)(c)

      8,904        2,402,833  

 

  

Gilead Sciences, Inc.

      77,131        6,211,359  

 

  

Incyte Corp.(b)

      11,406        878,034  

 

  

Moderna, Inc.(b)

      20,322        2,820,897  

 

  

Regeneron Pharmaceuticals, Inc.(b)

      6,571        4,996,720  

 

  

Vertex Pharmaceuticals, Inc.(b)

      15,788        4,583,099  

 

  
        46,236,418  

 

  

Brewers-0.03%

      

Molson Coors Beverage Co., Class B

      11,246        598,175  

 

  

Broadcasting-0.08%

      

Fox Corp., Class A

      18,847        660,022  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

4   Invesco S&P 500 Index Fund

     Shares      Value  

 

  

Broadcasting-(continued)

      

Fox Corp., Class B

      8,644      $ 278,769  

 

  

Paramount Global, Class B(c)

      30,969        663,356  

 

  
        1,602,147  

 

  

Building Products-0.46%

      

A.O. Smith Corp.

      8,256        541,841  

 

  

Allegion PLC

      5,355        603,562  

 

  

Carrier Global Corp.

      51,730        2,329,402  

 

  

Johnson Controls International PLC

      42,597        2,671,684  

 

  

Masco Corp.

      13,872        727,309  

 

  

Trane Technologies PLC

      14,180        2,622,875  

 

  
               9,496,673  

 

  

Cable & Satellite-0.60%

      

Charter Communications, Inc., Class A(b)(c)

      6,607        2,428,799  

 

  

Comcast Corp., Class A

      265,343        9,862,799  

 

  

DISH Network Corp., Class A(b)

      14,906        170,078  

 

  
        12,461,676  

 

  

Casinos & Gaming-0.16%

      

Caesars Entertainment, Inc.(b)

      12,960        657,850  

 

  

Las Vegas Sands Corp.(b)

      20,523        1,179,457  

 

  

MGM Resorts International

      19,605        843,211  

 

  

Wynn Resorts Ltd.(b)

      6,282        680,780  

 

  
        3,361,298  

 

  

Commodity Chemicals-0.19%

      

Dow, Inc.

      43,287        2,476,016  

 

  

LyondellBasell Industries N.V., Class A

      15,939        1,529,985  

 

  
        4,006,001  

 

  

Communications Equipment-0.87%

      

Arista Networks, Inc.(b)

      15,116        2,096,589  

 

  

Cisco Systems, Inc.

      252,549        12,228,423  

 

  

F5, Inc.(b)

      3,681        526,309  

 

  

Juniper Networks, Inc.

      19,715        606,828  

 

  

Motorola Solutions, Inc.

      10,238        2,690,649  

 

  
        18,148,798  

 

  

Computer & Electronics Retail-0.05%

 

Best Buy Co., Inc.

      12,316        1,023,583  

 

  

Construction & Engineering-0.07%

 

Quanta Services, Inc.

      8,789        1,418,545  

 

  

Construction Machinery & Heavy Trucks-0.64%

 

Caterpillar, Inc.

      32,009        7,667,756  

 

  

Cummins, Inc.

      8,633        2,098,510  

 

  

PACCAR, Inc.

      32,086        2,316,609  

 

  

Wabtec Corp.

      11,326        1,181,641  

 

  
        13,264,516  

 

  

Construction Materials-0.14%

      

Martin Marietta Materials, Inc.

      3,782        1,361,029  

 

  

Vulcan Materials Co.

      8,175        1,478,939  

 

  
        2,839,968  

 

  

Consumer Electronics-0.04%

      

Garmin Ltd.

      9,533        935,473  

 

  

Consumer Finance-0.57%

      

American Express Co.

      36,785        6,400,222  

 

  
     Shares      Value  

 

  

Consumer Finance-(continued)

      

Capital One Financial Corp.

      23,478      $ 2,560,980  

 

  

Discover Financial Services

      17,089        1,913,968  

 

  

Synchrony Financial

      27,712        989,596  

 

  
             11,864,766  

 

  

Copper-0.17%

      

Freeport-McMoRan, Inc.

      87,915        3,601,877  

 

  

Data Processing & Outsourced Services-3.12%

 

Automatic Data Processing, Inc.

      25,464        5,597,497  

 

  

Broadridge Financial Solutions, Inc.

      7,236        1,018,684  

 

  

Fidelity National Information Services, Inc.

      36,497        2,312,815  

 

  

Fiserv, Inc.(b)

      39,225        4,514,405  

 

  

FleetCor Technologies, Inc.(b)

      4,536        974,287  

 

  

Global Payments, Inc.

      16,632        1,866,110  

 

  

Jack Henry & Associates, Inc.

      4,419        725,777  

 

  

Mastercard, Inc., Class A

      52,213        18,550,757  

 

  

Paychex, Inc.

      19,945        2,201,928  

 

  

PayPal Holdings, Inc.(b)

      70,120        5,160,832  

 

  

Visa, Inc., Class A(c)

      100,566        22,118,486  

 

  
        65,041,578  

 

  

Distillers & Vintners-0.14%

      

Brown-Forman Corp., Class B

      11,247        729,593  

 

  

Constellation Brands, Inc., Class A

      9,964        2,228,947  

 

  
        2,958,540  

 

  

Distributors-0.16%

      

Genuine Parts Co.

      8,633        1,526,832  

 

  

LKQ Corp.

      16,008        917,098  

 

  

Pool Corp.

      2,430        867,170  

 

  
        3,311,100  

 

  

Diversified Banks-2.95%

      

Bank of America Corp.

      429,229        14,722,555  

 

  

Citigroup, Inc.

      119,357        6,050,206  

 

  

JPMorgan Chase & Co.

      180,416        25,862,633  

 

  

U.S. Bancorp

      83,293        3,975,575  

 

  

Wells Fargo & Co.

      234,375        10,961,719  

 

  
        61,572,688  

 

  

Diversified Support Services-0.20%

      

Cintas Corp.

      5,346        2,344,060  

 

  

Copart, Inc.(b)

      26,358        1,857,185  

 

  
        4,201,245  

 

  

Drug Retail-0.08%

      

Walgreens Boots Alliance, Inc.

      44,150        1,568,649  

 

  

Electric Utilities-1.79%

      

Alliant Energy Corp.

      15,177        778,125  

 

  

American Electric Power Co., Inc.

      31,607        2,780,468  

 

  

Constellation Energy Corp.

      20,114        1,506,337  

 

  

Duke Energy Corp.

      47,279        4,456,518  

 

  

Edison International

      23,489        1,555,207  

 

  

Entergy Corp.

      12,714        1,307,889  

 

  

Evergy, Inc.

      13,900        817,459  

 

  

Eversource Energy

      21,424        1,614,513  

 

  

Exelon Corp.

      60,800        2,455,712  

 

  

FirstEnergy Corp.

      33,291        1,316,326  

 

  

NextEra Energy, Inc.

      122,226        8,681,713  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

5   Invesco S&P 500 Index Fund

    Shares     Value  

 

  

Electric Utilities-(continued)

    

NRG Energy, Inc.

     14,616     $ 479,259  

 

  

PG&E Corp.(b)

     98,530       1,539,038  

 

  

Pinnacle West Capital Corp.

     6,839       503,897  

 

  

PPL Corp.

     45,168       1,222,698  

 

  

Southern Co. (The)

     66,962       4,222,624  

 

  

Xcel Energy, Inc.

     33,660       2,173,426  

 

  
           37,411,209  

 

  

Electrical Components & Equipment-0.57%

 

AMETEK, Inc.

     14,024       1,985,238  

 

  

Eaton Corp. PLC

     24,568       4,297,680  

 

  

Emerson Electric Co.

     36,370       3,008,163  

 

  

Generac Holdings, Inc.(b)(c)

     3,825       459,038  

 

  

Rockwell Automation, Inc.

     7,043       2,077,192  

 

  
      11,827,311  

 

  

Electronic Components-0.21%

 

Amphenol Corp., Class A

     36,604       2,837,542  

 

  

Corning, Inc.

     46,821       1,589,573  

 

  
      4,427,115  

 

  

Electronic Equipment & Instruments-0.23%

 

Keysight Technologies, Inc.(b)

     11,094       1,774,596  

 

  

Teledyne Technologies, Inc.(b)

     2,882       1,239,462  

 

  

Trimble, Inc.(b)

     15,216       792,145  

 

  

Zebra Technologies Corp., Class A(b)

     3,191       958,098  

 

  
      4,764,301  

 

  

Electronic Manufacturing Services-0.12%

 

TE Connectivity Ltd.

     19,739       2,513,169  

 

  

Environmental & Facilities Services-0.27%

 

Republic Services, Inc.

     12,660       1,632,254  

 

  

Rollins, Inc.

     13,722       483,014  

 

  

Waste Management, Inc.

     22,976       3,440,886  

 

  
      5,556,154  

 

  

Fertilizers & Agricultural Chemicals-0.28%

 

CF Industries Holdings, Inc.

     12,221       1,049,662  

 

  

Corteva, Inc.

     44,075       2,745,432  

 

  

FMC Corp.

     7,683       992,259  

 

  

Mosaic Co. (The)

     21,175       1,126,298  

 

  
      5,913,651  

 

  

Financial Exchanges & Data-1.14%

    

Cboe Global Markets, Inc.

     6,366       803,198  

 

  

CME Group, Inc., Class A

     22,120       4,100,163  

 

  

FactSet Research Systems, Inc.

     2,344       971,705  

 

  

Intercontinental Exchange, Inc.

     34,356       3,497,441  

 

  

MarketAxess Holdings, Inc.

     2,269       774,750  

 

  

Moody’s Corp.

     9,690       2,811,554  

 

  

MSCI, Inc.

     4,920       2,568,978  

 

  

Nasdaq, Inc.(c)

     21,287       1,193,349  

 

  

S&P Global, Inc.

     20,482       6,988,459  

 

  
      23,709,597  

 

  

Food Distributors-0.11%

    

Sysco Corp.

     30,988       2,310,775  

 

  

Food Retail-0.08%

    

Kroger Co. (The)

     40,398       1,742,770  

 

  
    Shares     Value  

 

  

Footwear-0.44%

    

NIKE, Inc., Class B

     77,376     $ 9,191,495  

 

  

Gas Utilities-0.05%

    

Atmos Energy Corp.(c)

     8,455       953,809  

 

  

General Merchandise Stores-0.46%

    

Dollar General Corp.

     13,875       3,001,162  

 

  

Dollar Tree, Inc.(b)

     12,945       1,880,650  

 

  

Target Corp.

     28,310       4,770,235  

 

  
      9,652,047  

 

  

Gold-0.10%

    

Newmont Corp.

     48,821       2,129,084  

 

  

Health Care Distributors-0.31%

    

AmerisourceBergen Corp.

     9,962       1,549,689  

 

  

Cardinal Health, Inc.

     16,124       1,220,748  

 

  

Henry Schein, Inc.(b)

     8,406       658,274  

 

  

McKesson Corp.

     8,721       3,050,693  

 

  
      6,479,404  

 

  

Health Care Equipment-2.59%

    

Abbott Laboratories

     107,158            10,900,112  

 

  

Baxter International, Inc.

     31,424       1,255,389  

 

  

Becton, Dickinson and Co.

     17,511       4,107,205  

 

  

Boston Scientific Corp.(b)

     88,107       4,116,359  

 

  

DexCom, Inc.(b)

     23,874       2,650,253  

 

  

Edwards Lifesciences Corp.(b)

     37,850       3,044,654  

 

  

GE HealthCare Technologies, Inc.(b)(c)

     22,402       1,702,552  

 

  

Hologic, Inc.(b)

     15,131       1,205,033  

 

  

IDEXX Laboratories, Inc.(b)

     5,142       2,433,400  

 

  

Intuitive Surgical, Inc.(b)

     21,736       4,986,021  

 

  

Medtronic PLC

     81,872       6,779,001  

 

  

ResMed, Inc.

     9,010       1,919,130  

 

  

STERIS PLC

     6,070       1,141,342  

 

  

Stryker Corp.

     20,716       5,445,822  

 

  

Teleflex, Inc.

     2,841       676,811  

 

  

Zimmer Biomet Holdings, Inc.

     12,908       1,598,914  

 

  
      53,961,998  

 

  

Health Care Facilities-0.18%

    

HCA Healthcare, Inc.

     13,042       3,175,075  

 

  

Universal Health Services, Inc., Class B

     4,082       545,233  

 

  
      3,720,308  

 

  

Health Care REITs-0.20%

    

Healthpeak Properties, Inc.

     32,696       786,666  

 

  

Ventas, Inc.

     24,264       1,180,443  

 

  

Welltower, Inc.

     29,064       2,154,224  

 

  
      4,121,333  

 

  

Health Care Services-0.71%

    

Cigna Group (The)

     18,805       5,492,940  

 

  

CVS Health Corp.

     80,819       6,751,619  

 

  

DaVita, Inc.(b)

     3,380       278,039  

 

  

Laboratory Corp. of America Holdings

     5,450       1,304,512  

 

  

Quest Diagnostics, Inc.

     7,005       969,212  

 

  
      14,796,322  

 

  

Health Care Supplies-0.14%

    

Align Technology, Inc.(b)

     4,446       1,376,037  

 

  

Cooper Cos., Inc. (The)

     2,990       977,640  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

6   Invesco S&P 500 Index Fund

    Shares     Value  

 

  

Health Care Supplies-(continued)

    

DENTSPLY SIRONA, Inc.

     13,048     $ 496,738  

 

  
             2,850,415  

 

  

Home Furnishings-0.02%

    

Mohawk Industries, Inc.(b)

     3,259       335,188  

 

  

Home Improvement Retail-1.27%

    

Home Depot, Inc. (The)

     63,031       18,691,213  

 

  

Lowe’s Cos., Inc.

     38,178       7,855,123  

 

  
      26,546,336  

 

  

Homebuilding-0.24%

    

D.R. Horton, Inc.

     19,458       1,799,476  

 

  

Lennar Corp., Class A

     15,670       1,515,916  

 

  

NVR, Inc.(b)

     185       957,119  

 

  

PulteGroup, Inc.

     14,013       766,091  

 

  
      5,038,602  

 

  

Hotel & Resort REITs-0.03%

    

Host Hotels & Resorts, Inc.

     43,288       727,238  

 

  

Hotels, Resorts & Cruise Lines-0.68%

 

Booking Holdings, Inc.(b)

     2,386       6,022,264  

 

  

Carnival Corp.(b)(c)

     60,921       646,981  

 

  

Expedia Group, Inc.(b)

     9,107       992,390  

 

  

Hilton Worldwide Holdings, Inc.

     16,635       2,403,924  

 

  

Marriott International, Inc., Class A

     16,549       2,800,752  

 

  

Norwegian Cruise Line Holdings Ltd.(b)(c)

     24,951       369,774  

 

  

Royal Caribbean Cruises Ltd.(b)(c)

     13,594       960,280  

 

  
      14,196,365  

 

  

Household Appliances-0.02%

    

Whirlpool Corp.

     3,419       471,754  

 

  

Household Products-1.38%

    

Church & Dwight Co., Inc.

     14,999       1,256,616  

 

  

Clorox Co. (The)

     7,460       1,159,582  

 

  

Colgate-Palmolive Co.

     51,372       3,765,568  

 

  

Kimberly-Clark Corp.

     20,808       2,602,040  

 

  

Procter & Gamble Co. (The)

     145,755       20,050,058  

 

  
      28,833,864  

 

  

Housewares & Specialties-0.02%

 

Newell Brands, Inc.

     22,601       332,009  

 

  

Human Resource & Employment Services-0.03%

 

Robert Half International, Inc.

     6,646       535,800  

 

  

Hypermarkets & Super Centers-1.22%

 

Costco Wholesale Corp.

     27,223       13,180,832  

 

  

Walmart, Inc.

     86,813       12,338,732  

 

  
      25,519,564  

 

  

Independent Power Producers & Energy Traders-0.05%

 

AES Corp. (The)(c)

     40,421       997,590  

 

  

Industrial Conglomerates-0.83%

    

3M Co.

     33,840       3,645,922  

 

  

General Electric Co.

     67,207       5,693,105  

 

  

Honeywell International, Inc.

     41,353       7,918,272  

 

  
      17,257,299  

 

  
    Shares     Value  

 

  

Industrial Gases-0.70%

    

Air Products and Chemicals, Inc.

     13,669     $ 3,909,061  

 

  

Linde PLC (United Kingdom)

     30,408       10,593,235  

 

  
           14,502,296  

 

  

Industrial Machinery-0.87%

    

Dover Corp.

     8,728       1,308,327  

 

  

Fortive Corp.

     21,740       1,449,188  

 

  

IDEX Corp.

     4,609       1,036,933  

 

  

Illinois Tool Works, Inc.

     17,317       4,037,632  

 

  

Ingersoll Rand, Inc.

     24,709       1,434,852  

 

  

Nordson Corp.

     3,252       714,269  

 

  

Otis Worldwide Corp.

     25,764       2,180,150  

 

  

Parker-Hannifin Corp.

     7,898       2,778,911  

 

  

Pentair PLC

     10,032       561,190  

 

  

Snap-on, Inc.(c)

     3,241       805,972  

 

  

Stanley Black & Decker, Inc.

     9,183       786,157  

 

  

Xylem, Inc.

     10,930       1,121,964  

 

  
      18,215,545  

 

  

Industrial REITs-0.34%

    

Prologis, Inc.

     56,634       6,988,636  

 

  

Insurance Brokers-0.65%

    

Aon PLC, Class A

     12,723       3,868,428  

 

  

Arthur J. Gallagher & Co.

     12,969       2,429,742  

 

  

Brown & Brown, Inc.

     14,215       797,035  

 

  

Marsh & McLennan Cos., Inc.

     30,609       4,962,943  

 

  

Willis Towers Watson PLC

     6,658       1,560,369  

 

  
      13,618,517  

 

  

Integrated Oil & Gas-2.30%

 

Chevron Corp.

     109,420       17,591,454  

 

  

Exxon Mobil Corp.(e)

     253,307       27,840,972  

 

  

Occidental Petroleum Corp.

     44,725       2,619,096  

 

  
      48,051,522  

 

  

Integrated Telecommunication Services-0.88%

 

AT&T, Inc.

     438,791       8,297,538  

 

  

Verizon Communications, Inc.

     258,321       10,025,438  

 

  
      18,322,976  

 

  

Interactive Home Entertainment-0.30%

 

Activision Blizzard, Inc.

     43,660       3,329,075  

 

  

Electronic Arts, Inc.

     16,199       1,797,117  

 

  

Take-Two Interactive Software, Inc.(b)

     9,792       1,072,714  

 

  
      6,198,906  

 

  

Interactive Media & Services-4.19%

 

Alphabet, Inc., Class A(b)

     367,652       33,110,739  

 

  

Alphabet, Inc., Class C(b)

     325,674       29,408,362  

 

  

Match Group, Inc.(b)

     17,161       710,809  

 

  

Meta Platforms, Inc., Class A(b)

     138,311       24,196,126  

 

  
      87,426,036  

 

  

Internet & Direct Marketing Retail-2.59%

 

Amazon.com, Inc.(b)

     545,908       51,440,911  

 

  

eBay, Inc.

     33,974       1,559,406  

 

  

Etsy, Inc.(b)

     7,685       933,036  

 

  
      53,933,353  

 

  

Internet Services & Infrastructure-0.09%

 

Akamai Technologies, Inc.(b)

     9,851       715,183  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

7   Invesco S&P 500 Index Fund

    Shares     Value  

 

  

Internet Services & Infrastructure-(continued)

 

VeriSign, Inc.(b)

     5,673     $ 1,116,616  

 

  
      1,831,799  

 

  

Investment Banking & Brokerage-1.14%

 

Charles Schwab Corp. (The)

     93,646       7,296,896  

 

  

Goldman Sachs Group, Inc. (The)

     20,829       7,324,518  

 

  

Morgan Stanley

     81,085       7,824,702  

 

  

Raymond James Financial, Inc.(c)

     11,825       1,282,540  

 

  
           23,728,656  

 

  

IT Consulting & Other Services-1.08%

    

Accenture PLC, Class A

     38,756       10,291,656  

 

  

Cognizant Technology Solutions Corp., Class A

     31,845       1,994,452  

 

  

DXC Technology Co.(b)

     14,863       412,300  

 

  

EPAM Systems, Inc.(b)

     3,585       1,102,925  

 

  

Gartner, Inc.(b)

     4,861       1,593,485  

 

  

International Business Machines Corp.

     55,611       7,190,502  

 

  
      22,585,320  

 

  

Leisure Products-0.02%

    

Hasbro, Inc.

     7,861       432,434  

 

  

Life & Health Insurance-0.47%

    

Aflac, Inc.

     34,803       2,371,824  

 

  

Globe Life, Inc.

     5,632       685,358  

 

  

Lincoln National Corp.

     10,294       326,526  

 

  

MetLife, Inc.

     40,538       2,907,791  

 

  

Principal Financial Group, Inc.

     13,996       1,253,482  

 

  

Prudential Financial, Inc.

     22,914       2,291,400  

 

  
      9,836,381  

 

  

Life Sciences Tools & Services-1.80%

    

Agilent Technologies, Inc.

     18,208       2,584,990  

 

  

Bio-Rad Laboratories, Inc., Class A(b)

     1,291       616,891  

 

  

Bio-Techne Corp.

     9,530       692,259  

 

  

Charles River Laboratories International, Inc.(b)

     3,061       671,400  

 

  

Danaher Corp.

     40,298       9,974,964  

 

  

Illumina, Inc.(b)

     9,797       1,951,562  

 

  

IQVIA Holdings, Inc.(b)

     11,424       2,381,561  

 

  

Mettler-Toledo International, Inc.(b)

     1,371       1,965,616  

 

  

PerkinElmer, Inc.

     7,651       953,085  

 

  

Thermo Fisher Scientific, Inc.

     24,123       13,068,877  

 

  

Waters Corp.(b)

     3,700       1,150,293  

 

  

West Pharmaceutical Services, Inc.

     4,491       1,423,782  

 

  
      37,435,280  

 

  

Managed Health Care-1.99%

    

Centene Corp.(b)

     35,055       2,397,762  

 

  

Elevance Health, Inc.

     14,714       6,910,724  

 

  

Humana, Inc.

     7,786       3,854,226  

 

  

Molina Healthcare, Inc.(b)

     3,541       974,943  

 

  

UnitedHealth Group, Inc.

     57,470       27,352,272  

 

  
      41,489,927  

 

  

Metal & Glass Containers-0.05%

    

Ball Corp.

     19,637       1,103,796  

 

  

Movies & Entertainment-1.09%

    

Live Nation Entertainment, Inc.(b)(c)

     8,785       633,047  

 

  

Netflix, Inc.(b)

     27,372       8,817,342  

 

  
    Shares     Value  

 

  

Movies & Entertainment-(continued)

 

Walt Disney Co. (The)(b)

     112,133     $ 11,169,568  

 

  

Warner Bros Discovery, Inc.(b)

     137,277       2,144,267  

 

  
      22,764,224  

 

  

Multi-line Insurance-0.23%

    

American International Group, Inc.

     45,699       2,792,666  

 

  

Assurant, Inc.

     3,465       441,406  

 

  

Hartford Financial Services Group, Inc. (The)

     19,565       1,531,548  

 

  
      4,765,620  

 

  

Multi-Sector Holdings-1.62%

    

Berkshire Hathaway, Inc., Class B(b)

     110,820       33,820,048  

 

  

Multi-Utilities-0.80%

    

Ameren Corp.

     15,901       1,315,172  

 

  

CenterPoint Energy, Inc.

     38,125       1,060,638  

 

  

CMS Energy Corp.

     17,567       1,035,926  

 

  

Consolidated Edison, Inc.

     21,827       1,950,242  

 

  

Dominion Energy, Inc.

     51,057       2,839,790  

 

  

DTE Energy Co.

     12,003       1,316,849  

 

  

NiSource, Inc.

     24,683       677,055  

 

  

Public Service Enterprise Group, Inc.

     30,656       1,852,542  

 

  

Sempra Energy

     19,334       2,899,327  

 

  

WEC Energy Group, Inc.

     19,402       1,720,181  

 

  
      16,667,722  

 

  

Office REITs-0.09%

    

Alexandria Real Estate Equities, Inc.(c)

     9,184       1,375,580  

 

  

Boston Properties, Inc.

     8,617       564,241  

 

  
      1,939,821  

 

  

Oil & Gas Equipment & Services-0.41%

    

Baker Hughes Co., Class A

     62,050       1,898,730  

 

  

Halliburton Co.

     55,852       2,023,518  

 

  

Schlumberger Ltd.

     87,219       4,640,923  

 

  
      8,563,171  

 

  

Oil & Gas Exploration & Production-1.18%

 

   

APA Corp.

     19,776       759,003  

 

  

ConocoPhillips

     76,644       7,921,158  

 

  

Coterra Energy, Inc.

     49,013       1,223,855  

 

  

Devon Energy Corp.(c)

     40,158       2,165,319  

 

  

Diamondback Energy, Inc.

     10,902       1,532,603  

 

  

EOG Resources, Inc.

     36,092       4,079,118  

 

  

EQT Corp.

     22,757       755,077  

 

  

Hess Corp.

     17,067       2,298,925  

 

  

Marathon Oil Corp.

     39,062       982,409  

 

  

Pioneer Natural Resources Co.

     14,637       2,933,401  

 

  
      24,650,868  

 

  

Oil & Gas Refining & Marketing-0.46%

 

Marathon Petroleum Corp.

     28,826       3,562,893  

 

  

Phillips 66

     29,262       3,001,111  

 

  

Valero Energy Corp.

     23,712       3,123,582  

 

  
      9,687,586  

 

  

Oil & Gas Storage & Transportation-0.34%

 

Kinder Morgan, Inc.

     121,594       2,074,394  

 

  

ONEOK, Inc.

     27,492       1,799,351  

 

  

Targa Resources Corp.

     13,958       1,034,288  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

8   Invesco S&P 500 Index Fund

    Shares     Value  

 

  

Oil & Gas Storage & Transportation-(continued)

 

Williams Cos., Inc. (The)

     75,614     $ 2,275,981  

 

  
      7,184,014  

 

  

Packaged Foods & Meats-0.96%

    

Campbell Soup Co.

     12,256       643,685  

 

  

Conagra Brands, Inc.

     29,081       1,058,839  

 

  

General Mills, Inc.

     36,568       2,907,522  

 

  

Hershey Co. (The)

     9,101       2,168,950  

 

  

Hormel Foods Corp.

     17,805       790,186  

 

  

JM Smucker Co. (The)

     6,569       971,489  

 

  

Kellogg Co.

     15,512       1,022,861  

 

  

Kraft Heinz Co. (The)

     48,851       1,902,258  

 

  

Lamb Weston Holdings, Inc.

     8,718       877,380  

 

  

McCormick & Co., Inc.

     15,414       1,145,569  

 

  

Mondelez International, Inc., Class A

     84,056       5,478,770  

 

  

Tyson Foods, Inc., Class A

     17,599       1,042,565  

 

  
      20,010,074  

 

  

Paper Packaging-0.21%

    

Amcor PLC

     91,526       1,019,600  

 

  

Avery Dennison Corp.

     5,018       914,229  

 

  

International Paper Co.

     22,544       820,376  

 

  

Packaging Corp. of America(c)

     5,758       787,234  

 

  

Sealed Air Corp.

     8,981       436,656  

 

  

WestRock Co.

     15,733       494,016  

 

  
      4,472,111  

 

  

Personal Products-0.17%

    

Estee Lauder Cos., Inc. (The), Class A

     14,225       3,457,386  

 

  

Pharmaceuticals-4.13%

    

Bristol-Myers Squibb Co.

     130,776       9,018,313  

 

  

Catalent, Inc.(b)

     10,857       740,665  

 

  

Eli Lilly and Co.

     48,508       15,096,660  

 

  

Johnson & Johnson

     160,811       24,645,894  

 

  

Merck & Co., Inc.

     155,947       16,567,809  

 

  

Organon & Co.

     15,135       370,656  

 

  

Pfizer, Inc.

     345,262       14,007,279  

 

  

Viatris, Inc.

     74,590       850,326  

 

  

Zoetis, Inc.

     28,682       4,789,894  

 

  
      86,087,496  

 

  

Property & Casualty Insurance-0.94%

    

Allstate Corp. (The)

     16,313       2,100,788  

 

  

Arch Capital Group Ltd.(b)

     22,630       1,584,100  

 

  

Chubb Ltd.

     25,613       5,404,855  

 

  

Cincinnati Financial Corp.

     9,764       1,178,515  

 

  

Loews Corp.

     11,846       723,672  

 

  

Progressive Corp. (The)

     35,967       5,161,984  

 

  

Travelers Cos., Inc. (The)

     14,415       2,668,505  

 

  

W.R. Berkley Corp.

     12,699       840,547  

 

  
      19,662,966  

 

  

Publishing-0.03%

    

News Corp., Class A

     23,462       402,373  

 

  

News Corp., Class B

     7,115       122,805  

 

  
      525,178  

 

  

Railroads-0.72%

    

CSX Corp.

     129,315       3,942,814  

 

  

Norfolk Southern Corp.

     14,240       3,201,437  

 

  
    Shares     Value  

 

  

Railroads-(continued)

    

Union Pacific Corp.

     37,815     $ 7,838,293  

 

  
      14,982,544  

 

  

Real Estate Services-0.08%

    

CBRE Group, Inc., Class A(b)

     19,434       1,654,611  

 

  

Regional Banks-0.95%

    

Citizens Financial Group, Inc.

     30,293       1,265,036  

 

  

Comerica, Inc.

     7,806       547,201  

 

  

Fifth Third Bancorp

     42,219       1,532,550  

 

  

First Republic Bank

     11,252       1,384,108  

 

  

Huntington Bancshares, Inc.

     88,739       1,359,481  

 

  

KeyCorp

     57,385       1,049,572  

 

  

M&T Bank Corp.

     10,770       1,672,473  

 

  

PNC Financial Services Group, Inc. (The)

     24,807       3,917,521  

 

  

Regions Financial Corp.

     56,907       1,327,071  

 

  

Signature Bank

     3,804       437,650  

 

  

SVB Financial Group(b)

     3,561       1,025,960  

 

  

Truist Financial Corp.

     81,607       3,831,449  

 

  

Zions Bancorporation N.A.

     9,582       485,041  

 

  
      19,835,113  

 

  

Reinsurance-0.04%

    

Everest Re Group Ltd.

     2,386       916,152  

 

  

Research & Consulting Services-0.32%

    

CoStar Group, Inc.(b)

     25,014       1,767,489  

 

  

Equifax, Inc.(c)

     7,531       1,525,254  

 

  

Jacobs Solutions, Inc.

     7,778       929,471  

 

  

Leidos Holdings, Inc.

     8,506       825,677  

 

  

Verisk Analytics, Inc.

     9,771       1,671,916  

 

  
      6,719,807  

 

  

Residential REITs-0.36%

    

AvalonBay Communities, Inc.

     8,605       1,484,535  

 

  

Camden Property Trust

     6,479       743,530  

 

  

Equity Residential

     20,716       1,295,164  

 

  

Essex Property Trust, Inc.

     3,956       902,205  

 

  

Invitation Homes, Inc.

     35,561       1,111,637  

 

  

Mid-America Apartment Communities, Inc.

     6,992       1,119,419  

 

  

UDR, Inc.(c)

     18,822       806,335  

 

  
      7,462,825  

 

  

Restaurants-1.23%

    

Chipotle Mexican Grill, Inc.(b)

     1,706       2,543,782  

 

  

Darden Restaurants, Inc.

     7,528       1,076,429  

 

  

Domino’s Pizza, Inc.

     2,206       648,586  

 

  

McDonald’s Corp.

     45,050       11,889,146  

 

  

Starbucks Corp.

     70,492       7,196,528  

 

  

Yum! Brands, Inc.

     17,498       2,225,046  

 

  
      25,579,517  

 

  

Retail REITs-0.32%

    

Federal Realty Investment Trust

     4,496       480,083  

 

  

Kimco Realty Corp.

     37,385       770,505  

 

  

Realty Income Corp.

     38,575       2,466,871  

 

  

Regency Centers Corp.

     9,199       578,617  

 

  

Simon Property Group, Inc.

     20,109       2,455,108  

 

  
      6,751,184  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

9   Invesco S&P 500 Index Fund

     Shares      Value  

 

  

Semiconductor Equipment–0.83%

      

Applied Materials, Inc.

      52,916      $        6,146,193  

 

  

Enphase Energy, Inc.(b)

      8,366        1,761,294  

 

  

KLA Corp.

      8,697        3,299,468  

 

  

Lam Research Corp.

      8,388        4,076,652  

 

  

SolarEdge Technologies, Inc.(b)

      3,437        1,092,691  

 

  

Teradyne, Inc.

      9,883        999,567  

 

  
        17,375,865  

 

  

Semiconductors–4.98%

      

Advanced Micro Devices, Inc.(b)

      99,175        7,793,172  

 

  

Analog Devices, Inc.

      31,636        5,804,257  

 

  

Broadcom, Inc.

      24,911        14,804,358  

 

  

First Solar, Inc.(b)

      6,098        1,031,416  

 

  

Intel Corp.

      253,843        6,328,306  

 

  

Microchip Technology, Inc.

      33,707        2,731,278  

 

  

Micron Technology, Inc.

      66,870        3,866,423  

 

  

Monolithic Power Systems, Inc.

      2,745        1,329,376  

 

  

NVIDIA Corp.

      153,155        35,556,465  

 

  

NXP Semiconductors N.V. (China)

      15,939        2,844,793  

 

  

ON Semiconductor Corp.(b)

      26,428        2,045,791  

 

  

Qorvo, Inc.(b)

      6,236        629,150  

 

  

QUALCOMM, Inc.

      68,873        8,507,882  

 

  

Skyworks Solutions, Inc.

      9,859        1,099,969  

 

  

Texas Instruments, Inc.

      55,823        9,570,853  

 

  
        103,943,489  

 

  

Soft Drinks–1.59%

      

Coca-Cola Co. (The)

      239,393        14,246,278  

 

  

Keurig Dr Pepper, Inc.

      52,108        1,800,331  

 

  

Monster Beverage Corp.(b)

      23,589        2,400,417  

 

  

PepsiCo, Inc.

      84,740        14,704,932  

 

  
        33,151,958  

 

  

Specialized REITs–1.21%

      

American Tower Corp.

      28,639        5,670,808  

 

  

Crown Castle, Inc.

      26,636        3,482,657  

 

  

Digital Realty Trust, Inc.

      17,701        1,844,975  

 

  

Equinix, Inc.

      5,692        3,917,633  

 

  

Extra Space Storage, Inc.

      8,117        1,336,464  

 

  

Iron Mountain, Inc.(c)

      17,554        925,974  

 

  

Public Storage

      9,689        2,896,527  

 

  

SBA Communications Corp., Class A

      6,595        1,710,413  

 

  

VICI Properties, Inc.

      59,238        1,986,250  

 

  

Weyerhaeuser Co.

      45,305        1,415,781  

 

  
        25,187,482  

 

  

Specialty Chemicals–0.69%

      

Albemarle Corp.

      7,206        1,832,558  

 

  

Celanese Corp.

      6,135        713,071  

 

  

DuPont de Nemours, Inc.

      30,927        2,258,599  

 

  

Eastman Chemical Co.

      7,380        628,776  

 

  

Ecolab, Inc.

      15,113        2,408,559  

 

  

International Flavors & Fragrances, Inc.(c)

      15,682        1,461,562  

 

  

PPG Industries, Inc.

      14,391        1,900,476  

 

  

Sherwin-Williams Co. (The)

      14,624        3,237,022  

 

  
        14,440,623  

 

  

Specialty Stores–0.18%

      

Bath & Body Works, Inc.

      14,505        592,819  

 

  

Tractor Supply Co.

      6,899        1,609,261  

 

  
     Shares      Value  

 

  

Specialty Stores–(continued)

      

Ulta Beauty, Inc.(b)

      3,177      $        1,648,228  

 

  
        3,850,308  

 

  

Steel–0.19%

      

Nucor Corp.

      15,780        2,642,203  

 

  

Steel Dynamics, Inc.

      10,342        1,304,230  

 

  
        3,946,433  

 

  

Systems Software–6.28%

      

Fortinet, Inc.(b)

      39,883        2,370,646  

 

  

Gen Digital, Inc.

      35,275        688,215  

 

  

Microsoft Corp.

      458,508        114,361,065  

 

  

Oracle Corp.

      94,526        8,261,573  

 

  

ServiceNow, Inc.(b)

      12,425        5,369,712  

 

  
        131,051,211  

 

  

Technology Distributors–0.08%

      

CDW Corp.

      8,227        1,665,309  

 

  

Technology Hardware, Storage & Peripherals–6.75%

 

Apple, Inc.

      919,765        135,582,559  

 

  

Hewlett Packard Enterprise Co.

      78,086        1,218,921  

 

  

HP, Inc.

      54,449        1,607,334  

 

  

NetApp, Inc.

      13,350        861,743  

 

  

Seagate Technology Holdings PLC

      12,274        792,409  

 

  

Western Digital Corp.(b)

      18,970        729,966  

 

  
        140,792,932  

 

  

Tobacco–0.69%

      

Altria Group, Inc.

      110,530        5,131,908  

 

  

Philip Morris International, Inc. (Switzerland)

      95,350        9,277,555  

 

  
        14,409,463  

 

  

Trading Companies & Distributors–0.27%

 

Fastenal Co.(c)

      34,892        1,799,032  

 

  

United Rentals, Inc.

      4,263        1,997,343  

 

  

W.W. Grainger, Inc.

      2,776        1,855,562  

 

  
        5,651,937  

 

  

Trucking–0.14%

      

J.B. Hunt Transport Services, Inc.

      5,094        920,944  

 

  

Old Dominion Freight Line, Inc.

      5,648        1,916,141  

 

  
        2,837,085  

 

  

Water Utilities–0.08%

      

American Water Works Co., Inc.

      11,184        1,570,010  

 

  

Wireless Telecommunication Services–0.25%

 

T-Mobile US, Inc.(b)

      36,917        5,248,859  

 

  

Total Common Stocks & Other Equity Interests
(Cost $866,572,825)

 

      2,043,679,549  

 

  

Money Market Funds–1.95%

      

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(f)

      14,929,120        14,929,120  

 

  

Invesco Liquid Assets Portfolio, Institutional Class, 4.64%(d)(f)

      8,735,390        8,737,137  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

10   Invesco S&P 500 Index Fund

    Shares     Value  

 

  

Money Market Funds–(continued)

 

Invesco Treasury Portfolio, Institutional Class, 4.50%(d)(f)

     17,061,852     $ 17,061,852  

 

  

Total Money Market Funds
(Cost $40,724,649)

 

     40,728,109  

 

  

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.96%
(Cost $907,297,474)

 

     2,084,407,658  

 

  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–1.98%

    

Invesco Private Government Fund, 4.58%(d)(f)(g)

     11,555,790       11,555,790  

 

  

 

    Shares     Value  

 

  

Money Market Funds–(continued)

    

Invesco Private Prime Fund, 4.83%(d)(f)(g)

    29,708,947     $ 29,714,888  

 

  

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $41,270,679)

 

     41,270,678  

 

  

TOTAL INVESTMENTS IN SECURITIES–101.94%
(Cost $948,568,153)

 

     2,125,678,336  

 

  

OTHER ASSETS LESS LIABILITIES–(1.94)%

 

     (40,358,091 ) 

 

  

NET ASSETS–100.00%

     $ 2,085,320,245  

 

  
 

 

Investment Abbreviations:
REIT - Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c)

All or a portion of this security was out on loan at February 28, 2023.

(d)

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

      Value
August 31, 2022		    Purchases
at Cost		    Proceeds
from Sales		    Change in
Unrealized
Appreciation
(Depreciation)		    Realized
Gain		   Value
February 28, 2023		    Dividend Income

Invesco Ltd.

      $ 328,856      $ 129,352      $ -      $ 34,488      $ -     $ 492,696      $ 10,358
Investments in Affiliated Money Market Funds:                                                                            

Invesco Government & Agency Portfolio, Institutional Class

        9,532,355        38,571,791        (33,175,026)          -        -       14,929,120        291,325

Invesco Liquid Assets Portfolio, Institutional Class

        4,881,331        27,551,278        (23,696,446)        295        679       8,737,137        179,796

Invesco Treasury Portfolio, Institutional Class

        10,894,120        44,082,047        (37,914,315)          -        -       17,061,852        332,877
Investments Purchased with Cash Collateral from Securities on Loan:                                                                            

Invesco Private Government Fund

        12,103,315        137,802,770        (138,350,295)        -        -       11,555,790        279,015*

Invesco Private Prime Fund

        31,122,812        289,429,204        (290,846,024)        (2,456)        11,352       29,714,888        766,229*

Total

      $ 68,862,789      $ 537,566,442      $ (523,982,106)      $ 32,327      $ 12,031     $ 82,491,483      $ 1,859,600

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(e) 

All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J.

(f)

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

(g)

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

 

Open Futures Contracts  

 

  
Long Futures Contracts   

Number of

Contracts

     

Expiration

Month

     

Notional

Value

      Value    

Unrealized

Appreciation

(Depreciation)

  

 

  

Equity Risk

              

 

  

E-Mini S&P 500 Index

      216        March-2023      $ 42,935,400      $ (206,938 )    $ (206,938 ) 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

11   Invesco S&P 500 Index Fund

Portfolio Composition

By sector, based on Net Assets

as of February 28, 2023

 

Information Technology

      26.73%  

 

  

Health Care

      14.06      

 

  

Financials

      11.51      

 

  

Consumer Discretionary

      10.44      

 

  

Industrials

      8.34      

 

  

Communication Services

      7.52      

 

  

Consumer Staples

      6.58      

 

  

Energy

      4.71      

 

  

Utilities

      2.76      

 

  

Materials

      2.73      

 

  

Real Estate

      2.63      

 

  

Money Market Funds Plus Other Assets Less Liabilities

      1.99      

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

12   Invesco S&P 500 Index Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

  

Investments in unaffiliated securities, at value
(Cost $ 865,993,576)*

   $ 2,043,186,853  

 

  

Investments in affiliates, at value
(Cost $ 82,574,577)

     82,491,483  

 

  

Receivable for:

  

Investments sold

     38  

 

  

Fund shares sold

     1,358,414  

 

  

Dividends

     3,454,319  

 

  

Investment for trustee deferred compensation and retirement plans

     68,667  

 

  

Other assets

     68,933  

 

  

Total assets

     2,130,628,707  

 

  

Liabilities:

  

Other investments:

  

Variation margin payable — futures contracts

     135,153  

 

  

Payable for:

  

Fund shares reacquired

     2,208,944  

 

  

Collateral upon return of securities loaned

     41,270,679  

 

  

Accrued fees to affiliates

     1,082,508  

 

  

Accrued trustees’ and officers’ fees and benefits

     2,067  

 

  

Accrued other operating expenses

     528,828  

 

  

Trustee deferred compensation and retirement plans

     80,283  

 

  

Total liabilities

     45,308,462  

 

  

Net assets applicable to shares outstanding

   $ 2,085,320,245  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 927,534,814  

 

  

Distributable earnings

      1,157,785,431  

 

  
   $ 2,085,320,245  

 

  

Net Assets:

   

Class A

    $ 1,440,328,615  

 

  

Class C

    $ 310,592,748  

 

  

Class Y

    $ 315,713,519  

 

  

Class R6

    $ 18,685,363  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      34,370,692  

 

  

Class C

      7,750,056  

 

  

Class Y

      7,418,077  

 

  

Class R6

      438,500  

 

  

Class A:

   

Net asset value per share

    $ 41.91  

 

  

Maximum offering price per share
(Net asset value of $41.91 ÷ 94.50%)

    $ 44.35  

 

  

Class C:

   

Net asset value and offering price per share

    $ 40.08  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 42.56  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 42.61  

 

  

 

*

At February 28, 2023, securities with an aggregate value of $40,212,031 were on loan to brokers.

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

13   Invesco S&P 500 Index Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

 

Dividends (net of foreign withholding taxes of $4,005)

    $ 16,586,586  

 

  

Dividends from affiliates (includes net securities lending income of $64,798)

      879,154  

 

  

Total investment income

      17,465,740  

 

  

Expenses:

 

Advisory fees

      1,202,293  

 

  

Administrative services fees

      135,608  

 

  

Custodian fees

      9,065  

 

  

Distribution fees:

 

Class A

      1,722,449  

 

  

Class C

      1,589,685  

 

  

Transfer agent fees - A, C and Y

      1,265,747  

 

  

Transfer agent fees - R6

      2,499  

 

  

Trustees’ and officers’ fees and benefits

      12,526  

 

  

Registration and filing fees

      60,194  

 

  

Licensing fees

      227,319  

 

  

Reports to shareholders

      37,972  

 

  

Professional services fees

      30,927  

 

  

Other

      11,776  

 

  

Total expenses

      6,308,060  

 

  

Less: Fees waived and/or expense offset arrangement(s)

      (34,749 ) 

 

  

Net expenses

      6,273,311  

 

  

Net investment income

      11,192,429  

 

  

Realized and unrealized gain (loss) from:

 

Net realized gain (loss) from:

 

Unaffiliated investment securities

      (383,042 ) 

 

  

Affiliated investment securities

      12,031  

 

  

Futures contracts

      493,650  

 

  
     122,639  

 

  

Change in net unrealized appreciation (depreciation) of:

 

Unaffiliated investment securities

      8,784,487  

 

  

Affiliated investment securities

      32,327  

 

  

Futures contracts

      (457,134 ) 

 

  
     8,359,680  

 

  

Net realized and unrealized gain

      8,482,319  

 

  

Net increase in net assets resulting from operations

    $ 19,674,748  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

14   Invesco S&P 500 Index Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,     August 31,  
     2023     2022  

 

  

Operations:

     

Net investment income

    $ 11,192,429     $ 18,700,160  

 

  

Net realized gain

      122,639       763,744  

 

  

Change in net unrealized appreciation (depreciation)

      8,359,680       (292,359,933 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      19,674,748       (272,896,029 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (14,619,439 )      (30,656,639 ) 

 

  

Class C

      (2,697,047 )      (5,524,672 ) 

 

  

Class Y

      (3,119,538 )      (6,585,646 ) 

 

  

Class R6

      (201,236 )      (322,866 ) 

 

  

Total distributions from distributable earnings

      (20,637,260 )      (43,089,823 ) 

 

  

Share transactions–net:

     

Class A

      48,178,523       62,649,656  

 

  

Class C

      (17,928,709 )      (18,470,272 ) 

 

  

Class Y

      31,410,720       43,987,251  

 

  

Class R6

      2,187,611       5,899,741  

 

  

Net increase in net assets resulting from share transactions

      63,848,145       94,066,376  

 

  

Net increase (decrease) in net assets

      62,885,633       (221,919,476 ) 

 

  

Net assets:

     

Beginning of period

      2,022,434,612       2,244,354,088  

 

  

End of period

    $ 2,085,320,245     $ 2,022,434,612  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

15   Invesco S&P 500 Index Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Distributions

from net

realized

gains

  

Total

distributions

  

Net asset

value, end

of period

  

Total

return (b)

  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                            

Six months ended 02/28/23

     $41.94       $0.25       $0.15       $0.40       $(0.43 )      $—       $(0.43 )      $41.91       0.99 %      $1,440,329       0.55 %(d)      0.55 %(d)      1.19 %(d)      1 % 

Year ended 08/31/22

     48.42       0.44       (5.97 )      (5.53 )      (0.39 )      (0.56 )      (0.95 )      41.94       (11.70 )      1,392,433       0.54       0.54       0.95       2  

Year ended 08/31/21

     37.59       0.39       10.94       11.33       (0.43 )      (0.07 )      (0.50 )      48.42       30.46       1,544,523       0.54       0.54       0.93       5  

Year ended 08/31/20

     31.59       0.45       6.21       6.66       (0.45 )      (0.21 )      (0.66 )      37.59       21.33 (e)      1,147,062       0.54 (e)      0.54 (e)      1.36 (e)      2  

Year ended 08/31/19

     31.63       0.45       0.20       0.65       (0.42 )      (0.27 )      (0.69 )      31.59       2.36 (e)      906,581       0.55 (e)      0.55 (e)      1.47 (e)      3  

Year ended 08/31/18

     26.93       0.38       4.69       5.07       (0.37 )      —       (0.37 )      31.63       18.96       805,009       0.57       0.57       1.30       4  

Class C

                            

Six months ended 02/28/23

     40.17       0.09       0.15       0.24       (0.33 )      —       (0.33 )      40.08       0.63       310,593       1.30 (d)      1.30 (d)      0.44 (d)      1  

Year ended 08/31/22

     46.48       0.09       (5.75 )      (5.66 )      (0.09 )      (0.56 )      (0.65 )      40.17       (12.38 )      329,140       1.29       1.29       0.20       2  

Year ended 08/31/21

     36.09       0.12       10.52       10.64       (0.18 )      (0.07 )      (0.25 )      46.48       29.65 (f)      400,963       1.18 (f)      1.18 (f)      0.29 (f)      5  

Year ended 08/31/20

     30.36       0.19       5.96       6.15       (0.21 )      (0.21 )      (0.42 )      36.09       20.41       353,371       1.30       1.30       0.60       2  

Year ended 08/31/19

     30.43       0.21       0.21       0.42       (0.22 )      (0.27 )      (0.49 )      30.36       1.60       294,011       1.31       1.31       0.71       3  

Year ended 08/31/18

     25.95       0.17       4.51       4.68       (0.20 )      —       (0.20 )      30.43       18.11 (f)      345,823       1.29 (f)      1.29 (f)      0.58 (f)      4  

Class Y

                            

Six months ended

                            

02/28/23

     42.57       0.30       0.16       0.46       (0.47 )      —       (0.47 )      42.56       1.11       315,714       0.30 (d)      0.30 (d)      1.44 (d)      1  

Year ended 08/31/22

     49.12       0.56       (6.05 )      (5.49 )      (0.50 )      (0.56 )      (1.06 )      42.57       (11.48 )      284,424       0.29       0.29       1.20       2  

Year ended 08/31/21

     38.11       0.50       11.10       11.60       (0.52 )      (0.07 )      (0.59 )      49.12       30.80       286,102       0.29       0.29       1.18       5  

Year ended 08/31/20

     32.01       0.53       6.30       6.83       (0.52 )      (0.21 )      (0.73 )      38.11       21.62       203,430       0.30       0.30       1.60       2  

Year ended 08/31/19

     32.04       0.53       0.20       0.73       (0.49 )      (0.27 )      (0.76 )      32.01       2.62       181,204       0.31       0.31       1.71       3  

Year ended 08/31/18

     27.26       0.46       4.75       5.21       (0.43 )      —       (0.43 )      32.04       19.29       152,974       0.32       0.32       1.55       4  

Class R6

                            

Six months ended 02/28/23

     42.61       0.32       0.16       0.48       (0.48 )      —       (0.48 )      42.61       1.16       18,685       0.20 (d)      0.20 (d)      1.54 (d)      1  

Year ended 08/31/22

     49.15       0.60       (6.05 )      (5.45 )      (0.53 )      (0.56 )      (1.09 )      42.61       (11.40 )      16,438       0.20       0.20       1.29       2  

Year ended 08/31/21

     38.13       0.53       11.09       11.62       (0.53 )      (0.07 )      (0.60 )      49.15       30.86       12,765       0.24       0.24       1.23       5  

Year ended 08/31/20

     32.02       0.55       6.31       6.86       (0.54 )      (0.21 )      (0.75 )      38.13       21.70       8,020       0.24       0.24       1.66       2  

Year ended 08/31/19

     32.05       0.54       0.20       0.74       (0.50 )      (0.27 )      (0.77 )      32.02       2.65       5,646       0.26       0.26       1.76       3  

Year ended 08/31/18

     27.28       0.48       4.75       5.23       (0.46 )      —       (0.46 )      32.05       19.33       4,186       0.29       0.29       1.58       4  

 

(a)

Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c)

Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

(d)

Annualized.

(e)

The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the years ended August 31, 2020 and 2019, respectively.

(f)

The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.89% and 0.97% for the years ended August 31, 2021 and August 31, 2018, respectively.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

16   Invesco S&P 500 Index Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco S&P 500 Index Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is total return through growth of capital and current income.

The Fund currently consists of four different classes of shares: Class A, Class C, Class Y and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.

 

17   Invesco S&P 500 Index Fund

Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

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 on a timely basis 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 as a reduction of the cost of the related investment. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes –The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders.

Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

Accounting Estimates –The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H.

Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I.

Securities Lending - The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are

 

18   Invesco S&P 500 Index Fund

  net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, the Fund paid the Adviser $4,141 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.

J.

Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

K.

Collateral –To the extent the Fund has 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. This practice does not apply to securities pledged as collateral for securities lending transactions.

L.

COVID-19 Risk - The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

 

Average Daily Net Assets    Rate  

 

  

First $2 billion

      0.120 % 

 

  

Over $ 2 billion

      0.100 % 

 

  

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.12%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y and Class R6 shares to 2.00%, 2.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended February 28, 2023, the Adviser waived advisory fees of $22,031.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”), an affiliate of the Adviser. The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates: (1) Class A — up to 0.25% of the average daily net assets of Class A shares; and (2) Class C — up to 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly.

 

19   Invesco S&P 500 Index Fund

For the six months ended February 28, 2023, expenses incurred under these agreements are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $144,390 in front-end sales commissions from the sale of Class A shares and $2,857 and $13,615 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

For the six months ended February 28, 2023, the Fund incurred $5,314 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1     Level 2      Level 3      Total  

 

  

Investments in Securities

           

 

  

Common Stocks & Other Equity Interests

    $ 2,043,679,549     $ –      $ –      $ 2,043,679,549  

 

  

Money Market Funds

      40,728,109       41,270,678        –        81,998,787  

 

  

Total Investments in Securities

      2,084,407,658       41,270,678        –        2,125,678,336  

 

  

Other Investments - Liabilities*

           

 

  

Futures Contracts

      (206,938 )      –        –        (206,938 ) 

 

  

Total Investments

    $ 2,084,200,720     $ 41,270,678      $ –      $ 2,125,471,398  

 

  

 

*

Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  
     Equity  
Derivative Liabilities    Risk  

 

  

Unrealized depreciation on futures contracts —Exchange-Traded(a)

    $ (206,938 ) 

 

  

Derivatives not subject to master netting agreements

      206,938  

 

  

Total Derivative Liabilities subject to master netting agreements

    $ –  

 

  

 

(a) 

The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended February 28, 2023

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

 

     Location of Gain (Loss) on  
     Statement of Operations  
     Equity  
     Risk  

 

  

Realized Gain:

   

Futures contracts

      $  493,650  

 

  

 

20   Invesco S&P 500 Index Fund

     Location of Gain (Loss) on  
     Statement of Operations  
     Equity  
     Risk  

 

  

Change in Net Unrealized Appreciation (Depreciation):

   

Futures contracts

      $(457,134)  

 

  

Total

      $   36,516   

 

  

The table below summarizes the average notional value of derivatives held during the period.

 

     Futures  
     Contracts  

 

  

Average notional value

    $ 45,549,563  

 

  

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $12,718.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 8–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of August 31, 2022.

NOTE 9–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $64,364,954 and $25,117,008, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

   $ 1,198,997,319  

 

  

Aggregate unrealized (depreciation) of investments

     (40,418,397 ) 

 

  

Net unrealized appreciation of investments

   $ 1,158,578,922  

 

  

Cost of investments for tax purposes is $966,892,476.

NOTE 10–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended
February 28, 2023(a) 		     Year ended
August 31, 2022		  
     Shares      Amount      Shares      Amount  

 

  

Sold:

            

Class A

      2,405,622      $ 99,340,892        4,519,315      $ 208,693,476  

 

  

Class C

      630,454        24,768,806        1,215,205        53,651,131  

 

  

Class Y

      2,013,494        85,282,660        2,834,966        133,402,035  

 

  

Class R6

      89,344        3,732,606        218,902        10,153,148  

 

  

 

21   Invesco S&P 500 Index Fund

     Summary of Share Activity  

 

  
     Six months ended
February 28, 2023(a) 		    Year ended
August 31, 2022		  
     Shares     Amount     Shares     Amount  

 

  

Issued as reinvestment of dividends:

         

Class A

      316,826     $ 12,853,559       555,173     $ 27,286,842  

 

  

Class C

      62,344       2,422,678       106,663       5,049,443  

 

  

Class Y

      59,930       2,467,906       108,842       5,420,328  

 

  

Class R6

      4,666       192,374       6,202       308,974  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      525,362       21,983,553       679,046       31,059,957  

 

  

Class C

      (549,079 )      (21,983,553 )      (707,353 )      (31,059,957 ) 

 

  

Reacquired:

         

Class A

      (2,079,268 )      (85,999,481 )      (4,447,608 )      (204,390,619 ) 

 

  

Class C

      (586,426 )      (23,136,640 )      (1,048,533 )      (46,110,889 ) 

 

  

Class Y

      (1,336,966 )      (56,339,846 )      (2,086,614 )      (94,835,112 ) 

 

  

Class R6

      (41,287 )      (1,737,369 )      (99,040 )      (4,562,381 ) 

 

  

Net increase in share activity

      1,515,016     $ 63,848,145       1,855,166     $ 94,066,376  

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 42% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

22   Invesco S&P 500 Index Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

    The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

    Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

          ACTUAL  

HYPOTHETICAL
(5% annual return before

expenses)

     
    

Beginning

    Account Value    

(09/01/22)

  

Ending

    Account Value    

(02/28/23)1

  

Expenses

      Paid During    

Period2

  

Ending

    Account Value    

(02/28/23)

  

Expenses

      Paid During      

Period2

 

      Annualized      

Expense

Ratio

Class A

   $1,000.00   $1,009.90   $2.74   $1,022.07   $2.76   0.55%

Class C

     1,000.00     1,006.30     6.47     1,018.35     6.51     1.30

Class Y

     1,000.00     1,011.10     1.50     1,023.31     1.51     0.30

Class R6

     1,000.00     1,011.60     1.00     1,023.80     1.00     0.20

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

23   Invesco S&P 500 Index Fund

 

 

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Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

    Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

 

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SEC file number(s): 811-09913 and 333-36074   Invesco Distributors, Inc.                                           MS-SPI-SAR-1

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Semiannual Report to Shareholders      February 28, 2023  

Invesco Senior Floating Rate Fund

Nasdaq:

A: OOSAX ∎ C: OOSCX ∎ R: OOSNX ∎ Y: OOSYX ∎ R5: SFRRX ∎ R6: OOSIX

 

      
2   Fund Performance
4   Schedule of Investments
23   Financial Statements
26   Financial Highlights
27   Notes to Financial Statements
36   Fund Expenses

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     3.39 % 

Class C Shares

     3.16  

Class R Shares

     3.26  

Class Y Shares

     3.51  

Class R5 Shares

     3.55  

Class R6 Shares

     3.69  

Custom Invesco Senior Floating Rate Index▼

     4.01  

JP Morgan Leveraged Loan Index∎

     4.01  

Source(s): ▼Invesco, Bloomberg LP; ∎ Bloomberg LP

 

The Custom Invesco Senior Floating Rate Index is composed of the Credit Suisse Leveraged Loan Index through September 30, 2014, and the JP Morgan Leveraged Loan Index from October 1, 2014 to present. The Credit Suisse Leveraged Loan Index represents tradable, senior-secured, US-dollar-denominated, noninvestment-grade loans.

 

  The JP Morgan Leveraged Loan Index tracks the performance of US dollar-denominated senior floating rate bank loans.

 

  The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

 

  A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not

 

 

For more information about your Fund

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

 

2   Invesco Senior Floating Rate Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (9/8/99)

     3.97 % 

10 Years

     2.32  

  5 Years

     0.57  

  1 Year

     -1.24  

Class C Shares

        

Inception (9/8/99)

     3.95 % 

10 Years

     2.08  

  5 Years

     0.47  

  1 Year

     0.45  

Class R Shares

        

Inception (10/26/12)

     2.56 % 

10 Years

     2.41  

  5 Years

     0.97  

  1 Year

     1.88  

Class Y Shares

        

Inception (11/28/05)

     3.84 % 

10 Years

     2.93  

  5 Years

     1.49  

  1 Year

     2.36  

Class R5 Shares

        

10 Years

     2.79 % 

  5 Years

     1.48  

  1 Year

     2.47  

Class R6 Shares

        

Inception (10/26/12)

     3.17 % 

10 Years

     3.03  

  5 Years

     1.60  

  1 Year

     2.45  

Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Senior Floating Rate Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the In-vesco Oppenheimer Senior Floating Rate Fund. The Fund was subsequently renamed the Invesco Senior Floating Rate Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated.

Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 3.25% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

    The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

 

3   Invesco Senior Floating Rate Fund

Schedule of Investments

February 28, 2023

(Unaudited)

 

         Interest   
Rate		      Maturity
Date		     

   Principal   
Amount

(000)(a)

      Value

Variable Rate Senior Loan Interests-82.45%(b)(c)

 

      

Aerospace & Defense-3.87%

            

Brown Group Holding LLC (Signature Aviation US Holdings, Inc.)
Incremental Term Loan B-2 (1 mo. Term SOFR + 3.75%)

      8.37%        07/01/2029             $ 6,020      $       6,028,377

Term Loan (1 mo. USD LIBOR + 2.50%)

      7.13%        06/07/2028        14,951      14,855,687

Castlelake Aviation Ltd.

            

Term Loan (3 mo. USD LIBOR + 2.75%)

      7.52%        10/22/2026                 12,879      12,785,696

Term Loan(d)

      -        10/22/2027        5,807      5,750,919

CEP IV Investment 16 S.a.r.l. (ADB Safegate) (Luxembourg),
Term Loan B(d)

      -        10/03/2026      EUR 12,104      10,817,694

Dynasty Acquisition Co., Inc.

            

Term Loan B-1 (1 mo. USD LIBOR + 3.50%)

      8.22%        04/08/2026        13,193      12,942,172

Term Loan B-2 (1 mo. USD LIBOR + 3.50%)

      8.12%        04/08/2026        7,087      6,951,685

Gogo Intermediate Holdings LLC, Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.70%        04/30/2028        2,959      2,949,505

Greenrock Finance, Inc.

            

Delayed Draw Term Loan (3 mo. Term SOFR + 4.35%)

      8.93%        06/21/2029        1,188      1,180,673

Term Loan B (3 mo. Term SOFR + 4.25%)

      8.93%        06/21/2029        2,574      2,558,124

KKR Apple Bidco LLC

            

First Lien Term Loan (1 mo. Term SOFR + 2.75%)

      7.38%        09/22/2028        14,942      14,873,180

First Lien Term Loan (1 mo. Term SOFR + 4.00%)

      8.62%        09/22/2028        5,044      5,055,666

Second Lien Term Loan (1 mo. USD LIBOR + 5.75%)

      10.38%        09/21/2029        2,335      2,292,306

Peraton Corp., Second Lien Term Loan (1 mo. USD LIBOR + 7.75%)

      12.65%        02/01/2029        9,237      9,073,500

Propulsion (BC) Finco S.a.r.l. (Spain), Term Loan B (3 mo. Term SOFR + 4.00%)

      8.58%        09/13/2029        7,789      7,735,429

Rand Parent LLC (Atlas Air), Term Loan B(d)

      -        02/09/2030        5,682      5,532,725

Spirit AeroSystems, Inc., First Lien Term Loan (1 mo. Term SOFR + 4.50%)

      9.18%        01/14/2027        8,019      8,039,866

Transdigm, Inc., Term Loan H (1 mo. Term SOFR + 3.25%)

      7.83%        02/28/2027        496      495,964
                                129,919,168

Air Transport-2.94%

            

AAdvantage Loyalty IP Ltd. (American Airlines, Inc.), Term Loan (3 mo. USD LIBOR + 4.75%)

      9.56%        04/20/2028        30,762      31,583,625

American Airlines, Inc., Term Loan(d)

      -        02/09/2028        6,064      5,914,101

Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Term Loan (3 mo. USD LIBOR + 5.25%)

      10.00%        06/21/2027        18,093      18,869,833

PrimeFlight Aviation Services, Inc., Term Loan(e)

      10.30%        05/09/2024        2,861      2,861,515

SkyMiles IP Ltd. (Delta Air Lines, Inc.), Term Loan (3 mo. USD LIBOR + 3.75%)

      8.56%        10/20/2027        2,643      2,740,820

United Airlines, Inc., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.57%        04/21/2028        24,976      24,997,597

WestJet Airlines Ltd. (Canada), Term Loan (1 mo. USD LIBOR + 3.00%)

      7.59%        12/11/2026        12,271      11,721,243
                                98,688,734

Automotive-1.98%

            

Adient PLC, Term Loan B-1 (1 mo. USD LIBOR + 3.25%)

      7.88%        04/10/2028        16,158      16,173,428

American Axle & Manufacturing, Inc., Term Loan (1 mo. Term SOFR + 3.50%)

      8.16%        12/08/2029        2,515      2,518,401

Autokiniton US Holdings, Inc., Term Loan B (1 mo. USD LIBOR + 4.50%)

      9.10%        04/06/2028        11,166      11,097,606

BCA Marketplace (United Kingdom)

            

Second Lien Term Loan B

      11.43%        07/27/2029      GBP 5,046      3,206,482

Term Loan B

      8.18%        07/28/2028      GBP 1,187      1,152,210

DexKo Global, Inc., First Lien Term Loan (1 mo. Term SOFR + 6.50%)(e)

      11.08%        10/04/2028        1,328      1,268,279

Driven Holdings LLC, Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.74%        12/16/2028        2,318      2,273,117

First Brands Group Intermediate LLC

            

Term Loan B (6 mo. Term SOFR + 5.00%)

      10.25%        03/30/2027        3,030      2,956,290

Term Loan B(d)

      -        03/30/2027        8,737      8,373,150

Garrett Borrowing LLC, Term Loan (3 mo. USD LIBOR + 3.25%)

      8.08%        04/30/2028        1,170      1,159,579

Highline Aftermarket Acquisition LLC, Term Loan (1 mo. USD LIBOR + 4.50%)

      9.13%        11/09/2027        6,122      5,853,753

Mavis Tire Express Services TopCo L.P., First Lien Term Loan (1 mo. Term SOFR + 4.00%)

      8.73%        05/04/2028        9,270      8,993,973

Panther BF Aggregator 2 L.P. (Canada), Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        04/30/2026        1,469      1,465,504
                                66,491,772

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

4   Invesco Senior Floating Rate Fund

         Interest   
Rate		      Maturity
Date		     

   Principal   
Amount

(000)(a)

      Value

Beverage & Tobacco-0.76%

            

AI Aqua Merger Sub, Inc., Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.37%        07/31/2028             $ 14,148      $       13,665,517

Arctic Glacier U.S.A., Inc., Term Loan (3 mo. USD LIBOR + 3.50%)

      8.23%        03/20/2024        5,604      5,214,914

City Brewing Co. LLC, Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.33%        03/31/2028                 13,569      6,711,152
                                25,591,583

Brokers, Dealers & Investment Houses-0.12%

            

AqGen Island Intermediate Holdings, Inc., Second Lien Term Loan B (3 mo. USD LIBOR + 6.50%)

      11.31%        08/05/2029        143      128,981

Zebra Buyer LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.75%        11/01/2028        3,811      3,796,687
                                3,925,668

Building & Development-1.81%

            

Chariot Buyer LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        11/03/2028        5,157      4,977,484

Empire Today LLC, Term Loan B (1 mo. USD LIBOR + 5.00%)

      9.60%        04/01/2028        12,131      9,832,209

Fusilli HoldCo (Jersey), Term Loan B (3 mo. EURIBOR + 6.00%)
(Acquired 02/24/2022-03/03/2022; Cost $2,356,708)(f)

      8.54%        10/12/2023      EUR 2,175      2,002,709

Icebox Holdco III, Inc., First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.23%        12/22/2028        8,465      8,042,135

LBM Holdings LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        12/17/2027        5      4,582

LHS Borrow LLC (Leaf Home Solutions), Term Loan (1 mo. Term SOFR + 4.75%)

      9.47%        02/16/2029        12,847      10,614,508

Mayfair Mall LLC, Term Loan(e)

      7.82%        04/20/2023        3,608      3,300,909

Oldcastle BuildingEnvelope, Inc., Term Loan B (3 mo. Term SOFR + 4.50%)

      9.18%        04/29/2029        8,781      8,523,785

Quikrete Holdings, Inc.

            

First Lien Term Loan (3 mo. USD LIBOR + 2.63%)

      7.26%        02/01/2027        2,019      2,005,143

Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.63%        06/11/2028        6,073      6,058,524

Standard Industries, Inc., Term Loan B (6 mo. USD LIBOR + 2.25%)

      6.43%        09/22/2028        1,992      1,989,947

TAMKO Building Products LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.78%        05/29/2026        3,386      3,349,729
                                60,701,664

Business Equipment & Services-7.96%

            

Aegion Corp., Term Loan (1 mo. USD LIBOR + 4.75%)

      9.38%        05/17/2028        4,025      3,932,046

Allied Universal Holdco LLC (USAGM Holdco LLC/UNSEAM), Term Loan (1 mo. USD LIBOR + 3.75%)

      8.47%        05/12/2028        807      778,752

Asurion LLC (fka Asurion Corp.), Term Loan B-7 (1 mo. USD LIBOR + 3.00%)

      7.63%        11/03/2024        3,325      3,318,082

Camelot Finance L.P.

            

Incremental Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        10/30/2026        6,741      6,728,696

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        10/30/2026        5,419      5,405,206

Checkout Holding Corp.

            

Term Loan

      0.00%        06/30/2023        1,040      1,040,062

Term Loan(e)

      14.87%        09/08/2029        0      23

Cimpress USA, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        05/17/2028        9,699      8,818,797

Constant Contact

            

Second Lien Term Loan (3 mo. USD LIBOR + 7.50%)

      12.31%        02/15/2029        3,743      3,134,345

Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.81%        02/10/2028        7,916      7,507,039

Corp. Service Co., Term Loan B (1 mo. Term SOFR + 3.25%)

      7.97%        08/08/2029        5,522      5,530,787

Creation Technologies, Inc., Term Loan B (3 mo. USD LIBOR +
5.50%)(e)

      10.28%        10/05/2028        6,271      5,409,036

Dakota Holding Corp.

            

First Lien Term Loan (1 mo. Term SOFR + 3.75%)

      8.37%        04/09/2027        8,866      8,524,968

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        04/07/2028        1,901      1,785,533

Dun & Bradstreet Corp. (The)

            

Incremental Term Loan B-2 (1 mo. Term SOFR + 3.25%)

      7.85%        01/18/2029        2,820      2,810,488

Revolver Loan (1 mo. USD LIBOR + 3.00%)(e)

      4.06%        09/11/2025        2,032      2,011,055

Revolver Loan(e)(g)

      0.00%        09/11/2025        11,786      11,664,118

Term Loan (1 mo. USD LIBOR + 3.25%)

      7.87%        02/06/2026        11,593      11,580,828

Garda World Security Corp. (Canada)

            

Incremental Term Loan (1 mo. Term SOFR + 4.25%)

      8.81%        02/01/2029        7,036      7,005,076

Term Loan B-2 (1 mo. USD LIBOR + 4.25%)

      8.91%        10/30/2026        11,373      11,376,503

GI Revelation Acquisition LLC, First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63%        05/12/2028        14,316      13,722,018

Holding Socotec (France), Term Loan B(d)

      -        06/30/2028        515      503,015

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

5   Invesco Senior Floating Rate Fund

         Interest   
Rate		      Maturity
Date		     

   Principal   
Amount

(000)(a)

      Value

Business Equipment & Services-(continued)

            

iQor US, Inc.

            

Term Loan

      12.13%        11/19/2024             $ 11,503      $     11,445,937

Term Loan(e)

      12.13%        11/19/2025                 15,413      11,174,624

Karman Buyer Corp., First Lien Term Loan B-1 (1 mo. USD LIBOR + 4.50%)

      9.29%        10/28/2027        9,274      7,671,211

Konecta (Kronosnet CX Bidco 2022, S.L.) (Spain)

            

First Lien Term Loan (3 mo. EURIBOR + 5.75%)

      8.17%        09/30/2029      EUR 1,192      1,173,589

Term Loan

      8.20%        09/30/2029      EUR 740      728,431

Monitronics International, Inc.

            

Term Loan (3 mo. USD LIBOR + 7.50%)

(Acquired 08/30/2019-01/28/2021; Cost $31,831,371)(f)

      12.33%        03/29/2024        33,327      21,829,459

Term Loan (1 mo. USD LIBOR + 6.00%)

(Acquired 04/27/2022; Cost $1,535,884)(e)(f)

      10.83%        07/03/2024        1,533      1,456,174

Orchid Merger Sub II LLC, Term Loan (6 mo. Term SOFR + 4.75%)(e)

      9.48%        07/27/2027        10,582      9,153,385

Prime Security Services Borrower LLC, First Lien Term Loan B-1 (3 mo. USD LIBOR + 2.75%)

      6.41%        09/23/2026        2,224      2,222,343

QA Group (IndigoCyan) (Jersey), Term Loan B (3 mo. GBP LIBOR + 4.75%)

      8.80%        06/23/2024      GBP 10,053      11,661,945

Red Ventures LLC (New Imagitas, Inc.), Term Loan B-2 (1 mo. Term SOFR + 2.50%)

      9.25%        11/08/2024        8,568      8,569,346

Sitel Worldwide Corp., Term Loan (1 mo. USD LIBOR + 3.75%)

      8.39%        08/28/2028        392      391,479

Skillsoft Corp., Term Loan (1 mo. Term SOFR + 4.75%)

      9.93%        07/14/2028        4,131      3,581,364

Solera (Polaris Newco LLC), Term Loan B

      9.18%        06/05/2028      GBP 1,509      1,695,514

Spin Holdco, Inc., Term Loan (3 mo. USD LIBOR + 4.00%)

      8.77%        03/04/2028        20,139      17,061,070

Tempo Acquisition LLC, Term Loan B (1 mo. Term SOFR + 3.00%)

      7.62%        08/31/2028        2,962      2,962,737

Thevelia (US) LLC, First Lien Term Loan B (3 mo. Term SOFR + 4.00%)

      8.73%        06/17/2029        6,392      6,255,778

Trans Union LLC, Term Loan (1 mo. USD LIBOR + 2.25%)

      6.88%        11/30/2028        6,005      5,979,424

Verra Mobility Corp., Term Loan B (6 mo. USD LIBOR + 3.25%)

      7.88%        03/19/2028        7,854      7,852,822

Virtusa Corp.

            

Incremental Term Loan B (1 mo. Term SOFR + 3.75%)

      8.47%        02/08/2029        4,237      4,221,903

Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        02/11/2028        2,644      2,636,151

WebHelp (France), Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.05%        08/04/2028        5,219      5,064,147
                                267,375,306

Cable & Satellite Television-3.67%

            

Altice Financing S.A. (Luxembourg), Term Loan (e)

      9.57%        10/31/2027        27,382      27,347,971

Atlantic Broadband Finance LLC, Incremental Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.13%        09/01/2028        1,118      1,102,729

CSC Holdings LLC

            

Term Loan (1 mo. Term SOFR + 2.50%)

      7.09%        04/15/2027        566      511,621

Term Loan B (1 mo. Term SOFR + 4.50%)

      9.06%        01/15/2028        17,160      16,108,683

Numericable-SFR S.A. (France)

            

Incremental Term Loan B-13 (3 mo. USD LIBOR + 4.00%)

      8.86%        08/14/2026        14,677      14,289,044

Term Loan B-12 (3 mo. USD LIBOR + 3.69%)

      8.52%        01/31/2026        23,399      22,745,021

Telenet - LG, Term Loan AR (6 mo. USD LIBOR + 2.00%)

      0.00%        04/30/2028        526      514,910

UPC - LG, Term Loan AX (1 mo. USD LIBOR + 2.93%)

      7.51%        01/31/2029        17,002      16,799,797

Virgin Media 02 - LG (United Kingdom)

            

Term Loan N (1 mo. USD LIBOR + 2.50%)

      7.09%        01/31/2028        11,928      11,721,209

Term Loan Q (1 mo. USD LIBOR + 3.25%)

      7.84%        01/31/2029        10,195      10,162,762

Vodafone Ziggo - LG, Term Loan I

      7.09%        04/30/2028        2,000      1,961,670
                                123,265,417

Chemicals & Plastics-4.80%

            

AkzoNoble Chemicals, Term Loan (3 mo. USD LIBOR + 2.75%)

      7.53%        10/01/2025        12,905      12,851,987

Aruba Investments, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.75%)

      12.38%        11/24/2028        4,299      3,911,762

Ascend Performance Materials Operations LLC, Term Loan (6 mo. Term SOFR + 4.75%)

      8.83%        08/27/2026        7,014      7,014,902

Axalta Coating Systems U.S. Holdings, Inc., Term Loan B-4 (1 mo. Term SOFR + 3.00%)

      7.51%        12/20/2029        8,167      8,214,118

BASF Construction Chemicals (Germany), Term Loan B-3 (3 mo. USD LIBOR + 3.50%)

      7.17%        09/29/2027        24,855      24,846,909

BES (Discovery Purchaser Corp.), Second Lien Term Loan (3 mo. Term SOFR + 4.38%)

      8.96%        10/03/2029        1,394      1,338,718

Charter NEX US, Inc., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.48%        12/01/2027        7,122      7,017,799

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

6   Invesco Senior Floating Rate Fund

         Interest   
Rate		      Maturity
Date		     

   Principal   
Amount

(000)(a)

      Value

Chemicals & Plastics-(continued)

            

Colouroz Investment LLC (Germany)

            

First Lien Term Loan B-4 (3 mo. EURIBOR + 4.25%)

      0.75%        09/21/2023      EUR 0      $                205

First Lien Term Loan B-5(d)

      -        09/21/2023      EUR 0      235

PIK First Lien Term Loan, 0.75% PIK Rate, 5.75% Cash Rate(h)

      0.75%        09/21/2023      EUR 23      17,608

PIK Second Lien Term Loan B-2, 5.75% PIK Rate, 9.07% Cash Rate(h)

      5.75%        09/21/2024             $ 155      81,319

Cyanco Intermediate 2 Corp., First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.13%        03/16/2025        865      850,776

Eastman Tire Additives (River Buyer, Inc.), First Lien Term Loan (1 mo. USD LIBOR + 5.25%)

      9.98%        11/01/2028        10,870      9,928,301

Fusion (Fusion UK Holding Ltd. & US HoldCo VAD, Inc.), Term Loan B (3 mo. Term SOFR + 3.75%)

      8.30%        05/28/2029        2,485      2,360,552

Gemini HDPE LLC, Term Loan (3 mo. USD LIBOR + 3.00%)

      7.83%        12/31/2027        8,115      8,111,124

H.B. Fuller Co., Term Loan B(d)

      -        02/08/2030        2,512      2,532,682

ICP Group Holdings LLC, First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        12/29/2027        7,764      6,570,693

Ineos US Finance LLC

            

Term Loan(d)

      -        11/08/2027                12,554      12,536,115

Term Loan(d)

      -        02/09/2030        5,356      5,323,789

Kersia International S.A.S. (Belgium), Term Loan B (3 mo. EURIBOR + 3.93%)

      6.13%        12/23/2027      EUR 14      13,455

Lummus Technology (Illuminate Buyer LLC), Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.13%        06/30/2027        6,179      6,058,905

Nobian Finance B.V., Term Loan B

      5.40%        07/01/2026      EUR 6,100      6,157,358

Proampac PG Borrower LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      7.58%        11/03/2025        4,944      4,878,408

Quantix, Term Loan(e)

      10.80%        05/03/2025        4,916      4,817,223

Tronox Finance LLC, Incremental Term Loan B (3 mo. Term SOFR + 3.25%)

      7.83%        03/03/2029        6,591      6,574,019

Vertellus

            

Revolver Loan(e)

      10.42%        12/22/2025        169      158,258

Revolver Loan(e)(g)

      0.00%        12/22/2025        721      676,992

Term Loan B(e)

      10.87%        12/22/2027        7,260      6,947,438

W.R. Grace & Co., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.50%        09/22/2028        11,279      11,244,867
                                161,036,517

Clothing & Textiles-0.73%

            

ABG Intermediate Holdings 2 LLC

            

First Lien Term Loan B-1 (1 mo. Term SOFR + 3.50%)

      8.22%        12/21/2028        15,343      15,089,137

Second Lien Term Loan (1 mo. Term SOFR + 6.00%)

      10.72%        12/20/2029        2,770      2,572,424

BK LC Lux SPV S.a.r.l. (Birkenstock), Term Loan B (1 mo. USD LIBOR + 3.25%)

      8.06%        04/28/2028        6,822      6,783,972
                                24,445,533

Conglomerates-0.33%

            

APi Group DE, Inc., Incremental Term Loan (1 mo. USD LIBOR + 2.75%)

      7.38%        01/03/2029        3,246      3,249,582

Safe Fleet Holdings LLC

            

Incremental First Lien Term Loan (1 mo. Term SOFR + 5.00%)(e)

      9.66%        02/23/2029        1,239      1,232,846

Term Loan B (1 mo. Term SOFR + 3.75%)

      8.41%        02/17/2029        6,541      6,416,041
                                10,898,469

Containers & Glass Products-2.10%

            

Berlin Packaging LLC, Term Loan B-5 (1 mo. USD LIBOR + 3.75%)

      8.48%        03/11/2028        6,940      6,813,759

Keter Group B.V. (Netherlands)

            

Term Loan B-1 (3 mo. EURIBOR + 4.25%)

(Acquired 11/03/2020-02/21/2023; Cost $16,182,015)(f)

      6.74%        10/31/2023      EUR 16,109      13,432,139

Term Loan B-3

(Acquired 09/01/2020-02/21/2023; Cost $5,932,424)(d)(f)

      -        10/31/2023      EUR 6,460      5,386,244

LABL, Inc. (Multi-Color), Term Loan (1 mo. USD LIBOR + 5.00%)

      9.63%        10/29/2028        15,198      14,870,216

Libbey Glass, Inc., First Lien Term Loan

            

(Acquired 11/22/2022-02/22/2023; Cost $11,467,503)(f)

      8.71%        11/22/2027        12,128      11,673,627

Logoplaste (Mar Bidco S.a.r.l.) (Portugal), Term Loan B (1 mo. USD LIBOR + 4.30%)

      9.03%        07/07/2028        3,568      3,318,206

Mold-Rite Plastics LLC (Valcour Packaging LLC)

            

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)(e)

      7.98%        10/04/2028        4,739      4,158,212

Second Lien Term Loan (6 mo. USD LIBOR + 7.00%)(e)

      11.23%        10/04/2029        1,504      1,052,806

Refresco Group N.V. (Netherlands), Term Loan B (3 mo. Term SOFR + 4.25%)

      9.01%        07/12/2029        9,735      9,703,097
                                70,408,306

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

7   Invesco Senior Floating Rate Fund

         Interest   
Rate		      Maturity
Date		     

   Principal   
Amount

(000)(a)

      Value

Cosmetics & Toiletries-0.74%

            

Bausch and Lomb, Inc., Term Loan (1 mo. Term SOFR + 3.25%)

      7.84%        05/10/2027             $          18,889      $     18,517,726

Coty, Inc., Term Loan B (3 mo. USD LIBOR + 2.25%)

      6.84%        04/05/2025        5,707      5,701,196

Rodenstock (Germany), Term Loan B (3 mo. EURIBOR + 5.00%)

      7.49%        06/29/2028      EUR 832      753,732
                                24,972,654

Drugs-0.17%

            

Grifols Worldwide Operations USA, Inc., Term Loan B (1 mo. USD LIBOR + 2.00%)

      6.63%        11/15/2027        1,640      1,599,297

Perrigo Investments LLC, Term Loan B (1 mo. Term SOFR + 2.50%)

      7.22%        04/06/2029        4,045      4,057,453
                                5,656,750

Ecological Services & Equipment-0.87%

            

Anticimex (Sweden), Term Loan B-1 (3 mo. USD LIBOR + 3.50%)

      8.45%        11/16/2028        3,021      2,995,080

EnergySolutions LLC, Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        05/11/2025        7,477      7,238,333

GFL Environmental, Inc. (Canada), Term Loan B

      7.72%        05/28/2027        1,109      1,112,482

Groundworks LLC

            

Delayed Draw Term Loan(e)

      9.48%        01/17/2026        224      223,736

Delayed Draw Term Loan(e)

      9.48%        01/17/2026        6,771      6,770,905

Delayed Draw Term Loan(e)(g)

      0.00%        01/17/2026        1,780      1,779,626

Term Loan(e)

      9.48%        01/17/2026        397      396,809

Term Loan(e)(g)

      0.00%        03/14/2029        265      257,393

Term Loan(e)(g)

      0.00%        03/14/2030        829      804,354

OGF (France), Term Loan B-2 (6 mo. EURIBOR + 4.75%)

      7.11%        12/31/2025      EUR 1,133      1,114,968

Patriot Container Corp., First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.47%        03/20/2025        2,458      2,317,003

TruGreen L.P., Second Lien Term Loan (1 mo. USD LIBOR + 8.50%)(e)

      13.33%        11/02/2028        5,636      4,057,645
                                29,068,334

Electronics & Electrical-9.18%

            

Altar BidCo, Inc. (Brooks Automation, Inc.), Second Lien Term Loan (6 mo. Term SOFR + 5.60%)

      10.49%        02/01/2030        1,427      1,262,000

AppLovin Corp., Term Loan (3 mo. Term SOFR + 3.00%)

      9.50%        10/25/2028        7,553      7,496,120

Boxer Parent Co., Inc., Term Loan B (1 mo. EURIBOR + 4.00%)

      6.43%        10/02/2025      EUR 134      139,568

Brave Parent Holdings, Inc., First Lien Term Loan (3 mo. USD LIBOR + 4.00%)

      8.63%        04/18/2025        7,414      7,331,081

CommerceHub, Inc., Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.78%        01/01/2028        7,863      7,526,821

CommScope, Inc., Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        04/06/2026        10,078      9,805,747

Delta Topco, Inc. (Infoblox, Inc.), First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.15%        12/01/2027        2,657      2,483,918

Diebold Nixdorf, Inc.

            

Term Loan (1 mo. Term SOFR + 5.25%)

      9.97%        07/15/2025        5,851      4,000,388

Term Loan (1 mo. Term SOFR + 6.40%)

      11.63%        07/15/2025        2,297      2,399,933

Digi International, Inc., Term Loan (6 mo. USD LIBOR + 5.00%)(e)

      9.63%        11/01/2028        5,343      5,349,522

E2Open LLC, Term Loan (3 mo. USD LIBOR + 3.50%)

      8.08%        02/04/2028        3,344      3,332,193

Entegris, Inc., Term Loan B (1 mo. Term SOFR + 3.00%)

      7.62%        07/06/2029        9,574      9,607,514

ETA Australia Holdings III Pty. Ltd. (Australia), First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.62%        05/06/2026        163      157,670

EverCommerce, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        07/01/2028        1,395      1,391,935

Forcepoint, Term Loan (3 mo. USD LIBOR + 4.25%)

      9.08%        01/07/2028        2,279      2,154,176

Go Daddy Operating Co. LLC, Term Loan

      7.87%        11/09/2029        497      497,824

GoTo Group, Inc. (LogMeIn), First Lien Term Loan (1 mo. USD LIBOR + 4.75%)

      9.38%        08/31/2027        26,412      14,653,303

Imperva, Inc.

            

Second Lien Term Loan (3 mo. USD LIBOR + 7.75%)

      12.65%        01/11/2027        5,160      3,866,647

Term Loan (3 mo. USD LIBOR + 4.00%)

      8.86%        01/10/2026        4,895      4,182,768

Inetum (Granite Fin Bidco SAS) (France)

            

Term Loan(d)(e)

      -        09/23/2028      EUR 1,128      1,139,626

Term Loan B

      7.06%        10/17/2028      EUR 1,995      2,014,914

Infinite Electronics, Second Lien Term Loan (3 mo. USD LIBOR + 7.00%)

      11.73%        03/02/2029        1,609      1,451,730

Informatica Corp., Term Loan (1 mo. USD LIBOR + 2.75%)

      7.44%        10/15/2028        4,420      4,417,767

Internap Corp., Second Lien Term Loan(d)(e)

      -        05/08/2025        9,522      4,761,262

Learning Pool (Brook Bidco Ltd.) (United Kingdom)

            

Term Loan(e)

      9.97%        08/17/2028      GBP 2,181      2,565,721

Term Loan 1(d)(e)

      -        08/17/2028        2,878      2,762,534

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

8   Invesco Senior Floating Rate Fund

         Interest   
Rate		      Maturity
Date		     

   Principal   
Amount

(000)(a)

      Value

Electronics & Electrical-(continued)

            

Mavenir Systems, Inc., Term Loan B (3 mo. USD LIBOR + 4.75%)

      9.65%        08/13/2028             $ 14,058      $       9,489,152

McAfee Enterprise

            

Second Lien Term Loan (1 mo. USD LIBOR + 8.25%)

      13.08%        07/27/2029        1,712      1,350,072

Term Loan B (1 mo. USD LIBOR + 4.75%)

      9.58%        07/27/2028        2,504      2,142,543

McAfee LLC, Term Loan B-1 (1 mo. Term SOFR + 4.50%)

      8.42%        03/01/2029        10,558      9,920,899

Mirion Technologies, Inc., Term Loan (6 mo. USD LIBOR + 2.75%)

      7.48%        10/20/2028        6,777      6,739,099

Natel Engineering Co., Inc., Term Loan (3 mo. USD LIBOR + 6.25%)
(Acquired 04/16/2020-02/01/2022; Cost $12,439,019)(f)

      10.42%        04/29/2026                 13,585      12,192,261

Native Instruments (Germany), Term Loan(e)

      7.98%        03/03/2028      EUR 5,364      5,349,932

NCR Corp., Term Loan B (3 mo. USD LIBOR + 2.50%)

      7.33%        08/28/2026        5,085      5,055,371

Oberthur Tech, Term Loan B (3 mo. USD LIBOR + 4.50%)

      9.23%        01/09/2026        1,711      1,696,165

Open Text Corp. (Canada), Incremental Term Loan B(d)

      -        08/27/2029        14,483      14,481,781

Optiv, Inc.

            

Second Lien Term Loan (3 mo. USD LIBOR + 7.25%)

      11.42%        01/31/2025        2,025      1,884,629

Term Loan (3 mo. USD LIBOR + 3.25%)

      7.42%        02/01/2024        17,110      17,019,162

Philips Domestic Appliances (Nobel Bidco) (Netherlands), Term Loan(d)

      -        06/23/2028      EUR 5,000      4,358,807

Project Accelerate Parent LLC, First Lien Term Loan (3 mo. USD LIBOR + 4.25%)(e)

      8.88%        01/02/2025        7,421      7,235,849

Proofpoint, Inc., Term Loan B (3 mo. USD LIBOR + 3.25%)

      7.88%        08/31/2028        4,974      4,843,064

Quest Software US Holdings, Inc.

            

Second Lien Term Loan (3 mo. Term SOFR + 7.50%)

      12.33%        01/20/2030        938      609,151

Term Loan B (3 mo. Term SOFR + 4.25%)

      9.08%        01/19/2029        19,802      17,115,149

Riverbed Technology, Inc., PIK Term Loan, 2.00% PIK Rate, 10.83% Cash Rate
(Acquired 12/06/2021-02/07/2023; Cost $24,059,059)(f)(h)

      2.00%        12/08/2026        20,380      7,425,974

Sandvine Corp.

            

First Lien Term Loan (3 mo. USD LIBOR + 4.50%)

      9.33%        10/31/2025        3,981      3,778,533

Second Lien Term Loan

      12.83%        11/02/2026        1,652      1,474,426

SonicWall U.S. Holdings, Inc.

            

First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.71%        05/16/2025        5,925      5,871,742

Second Lien Term Loan (3 mo. USD LIBOR + 7.50%)

      12.46%        05/18/2026        1,804      1,689,152

Ultimate Software Group, Inc.

            

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.58%        05/04/2026        7,072      6,991,269

Incremental First Lien Term Loan (3 mo. USD LIBOR + 3.25%)

      8.03%        05/04/2026        8,147      7,999,700

Second Lien Term Loan (3 mo. USD LIBOR + 5.25%)

      10.03%        05/03/2027        1,068      1,044,206

UST Holdings Ltd., Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.48%        11/19/2028        5,477      5,461,212

Utimaco (Germany)

            

Term Loan B(e)

      8.95%        05/31/2029      EUR 13,364      13,541,134

Term Loan B(e)

      11.06%        05/31/2029        7,500      7,245,292

Veritas US, Inc., Term Loan B (3 mo. USD LIBOR + 5.00%)

      9.73%        09/01/2025        13,767      10,831,329

WebPros, Term Loan (3 mo. USD LIBOR + 5.25%)

      9.98%        02/18/2027        6,788      6,669,370
                                308,259,107

Financial Intermediaries-1.00%

            

Edelman Financial Center LLC (The)

            

Incremental Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        04/07/2028        18,000      17,569,985

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        07/20/2026        705      688,548

LendingTree, Inc., First Lien Term Loan B (1 mo. USD LIBOR + 3.75%)

      8.39%        09/15/2028        7,050      6,527,355

MoneyGram International, Inc., First Lien Term Loan B (1 mo. USD LIBOR + 4.50%)

      9.13%        07/21/2026        3,974      3,968,481

Stiphout Finance LLC, Incremental Term Loan (1 mo. EURIBOR + 3.75%)

      6.18%        10/26/2025      EUR 6      6,314

Tegra118 Wealth Solutions, Inc., Term Loan (1 mo. USD LIBOR + 4.00%)

      8.56%        02/18/2027        4,854      4,737,469
                                33,498,152

Food Products-1.81%

            

Biscuit Intl (Cookie Acq S.A.S., De Banketgroep Holding) (France), First Lien Term Loan (6 mo. EURIBOR + 4.00%)

      5.86%        02/15/2027      EUR 11,538      9,583,462

Florida Food Products LLC

            

First Lien Term Loan (1 mo. Term SOFR + 5.00%)(e)

      9.62%        10/18/2028        3,055      2,856,429

First Lien Term Loan (1 mo. Term SOFR + 5.00%)(e)

      9.63%        10/18/2028        20,626      19,284,839

Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)

      12.63%        10/08/2029        4,194      3,774,714

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

9   Invesco Senior Floating Rate Fund

         Interest   
Rate		      Maturity
Date		     

   Principal   
Amount

(000)(a)

      Value

Food Products-(continued)

            

H-Food Holdings LLC

            

Incremental Term Loan B-2 (1 mo. USD LIBOR + 4.00%)

      8.63%        05/23/2025             $ 2,401      $       2,168,364

Incremental Term Loan B-3 (1 mo. USD LIBOR + 5.00%)

      9.63%        05/23/2025        736      666,375

Term Loan (3 mo. USD LIBOR + 3.69%)

      8.32%        05/23/2025                 7,831      7,065,442

Nomad Foods US LLC (United Kingdom), Term Loan B (1 mo. Term SOFR + 3.75%)

      8.23%        11/10/2029        2,212      2,218,802

Sigma Bidco B.V. (Netherlands)

            

Term Loan B-1 (3 mo. EURIBOR + 3.50%)

      6.24%        07/02/2025      EUR 9,400      9,277,977

Term Loan B-2 (3 mo. USD LIBOR + 3.00%)

      7.46%        07/02/2025        1,852      1,739,773

United Natural Foods, Inc., Term Loan (3 mo. USD LIBOR + 3.25%)

      7.98%        10/22/2025        348      349,698

Valeo Foods (Jersey) Ltd. (United Kingdom), First Lien Term Loan B

      5.16%        09/29/2028      EUR 2,109      1,898,723
                                60,884,598

Food Service-0.77%

            

Euro Garages (Netherlands), Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%        02/07/2025        1,116      1,047,052

Financiere Pax S.A.S.

            

Revolver Loan(e)

      3.52%        01/02/2026      EUR 395      340,945

Revolver Loan(e)(g)

      0.00%        03/25/2023      EUR 1,186      1,022,835

Term Loan B (6 mo. EURIBOR + 4.75%)

      7.19%        07/01/2026      EUR 12,436      12,018,775

US Foods, Inc., Incremental Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        11/22/2028        4,852      4,852,433

WW International, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.14%        04/13/2028        11,008      6,398,463
                                25,680,503

Health Care-1.71%

            

athenahealth Group, Inc.

            

Term Loan (1 mo. Term SOFR + 3.50%)

      8.06%        02/15/2029        12,648      11,736,397

Delayed Draw Term Loan(g)

      0.00%        02/15/2029        1,266      1,174,665

Biogroup-LCD (France), Term Loan

      6.49%        04/25/2026      EUR 13      13,190

Dermatology Intermediate Holdings III, Inc.

            

Delayed Draw Term Loan (1 mo. Term SOFR + 4.25%)(e)

      4.25%        03/31/2029        21      20,701

Delayed Draw Term Loan(e)(g)

      0.00%        03/31/2029        1      772

Term Loan B(d)(e)

      -        03/23/2029        116      114,305

Ethypharm (Financiere Verdi, Orphea Ltf) (France), Term Loan B

      7.93%        04/17/2028      GBP 2,378      2,547,069

Explorer Holdings, Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.50%)

      9.13%        02/04/2027        3,920      3,618,933

Global Medical Response, Inc.

            

Term Loan (1 mo. USD LIBOR + 4.25%)

      9.20%        03/14/2025        1,991      1,595,339

Term Loan (1 mo. USD LIBOR + 4.25%)

      8.83%        10/02/2025        7,333      5,849,521

International SOS L.P., Term Loan B (3 mo. USD LIBOR + 3.75%)(e)

      8.50%        09/07/2028        2,606      2,570,248

MedAssets Software Intermediate Holdings, Inc. (nThrive TSG)

            

First Lien Term Loan (1 mo. USD LIBOR + 4.00%)

      8.63%        12/18/2028        10,713      10,039,021

Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)

      11.38%        12/17/2029        2,752      1,969,673

Neuraxpharm (Cerebro BidCo/Blitz F20-80 GmbH) (Germany)

            

Term Loan B (3 mo. EURIBOR + 4.25%)

      6.74%        12/15/2027      EUR 10      10,722

Term Loan B-2 (3 mo. EURIBOR + 4.25%)

      6.74%        12/15/2027      EUR 6      6,193

Organon & Co., Term Loan B (3 mo. USD LIBOR + 3.00%)

      7.75%        06/02/2028        4,095      4,062,826

Stamina BidCo B.V. (Synthon) (Netherlands), Term Loan B (3 mo. EURIBOR + 4.00%)(e)

      6.33%        11/02/2028      EUR 883      908,009

Summit Behavioral Healthcare LLC, First Lien Term Loan (3 mo. USD LIBOR + 4.75%)

      9.88%        11/24/2028        6,302      6,116,577

Veonet (Blitz F21-433 GmbH) (Germany), First Lien Term Loan(e)

      6.95%        03/14/2029      EUR 762      785,916

Verscend Holding Corp., Term Loan B-1 (1 mo. USD LIBOR + 4.00%)

      8.63%        08/27/2025        1,497      1,498,336

Women’s Care Holdings, Inc. LLC

            

First Lien Term Loan (6 mo. USD LIBOR + 4.50%)

      9.33%        01/15/2028        1,581      1,485,835

Second Lien Term Loan (1 mo. USD LIBOR + 8.25%)

      13.08%        01/15/2029        1,508      1,368,012
                                57,492,260

Home Furnishings-2.07%

            

Hunter Douglas Holding B.V., Term Loan B-1 (3 mo. Term SOFR + 3.50%)

      8.37%        02/26/2029        19,800      18,276,558

Hunter Douglas, Inc., First Lien Term Loan (3 mo. EURIBOR + 4.00%)

      6.67%        02/26/2029      EUR 6,748      6,538,311

Mattress Holding Corp., Term Loan (6 mo. USD LIBOR + 4.25%)

      8.44%        09/25/2028        15,322      14,498,028

Serta Simmons Bedding LLC

            

First Lien Term Loan(i)(j)

      0.00%        08/10/2023        8,185      8,097,080

Second Lien Term Loan(i)(j)

      0.00%        08/10/2023        15,003      8,412,157

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

10   Invesco Senior Floating Rate Fund

     

   Interest   

Rate

     

Maturity

Date

     

   Principal   

Amount

(000)(a)

      Value

Home Furnishings–(continued)

            

SIWF Holdings, Inc., Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.75%        10/06/2028        $         9,290      $       8,020,074

TGP Holdings III LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      8.08%        06/29/2028        1,657      1,334,431

VC GB Holdings, Inc., Second Lien Term Loan (3 mo. USD LIBOR + 6.75%)

      11.38%        07/01/2029        2,063      1,638,135

Weber-Stephen Products LLC

            

Incremental Term Loan B (1 mo. Term SOFR + 4.25%)

      8.97%        10/30/2027        491      432,454

Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        10/30/2027        2,734      2,400,789
                                69,648,017

Industrial Equipment–3.54%

            

Chart Industries, Inc., Term Loan B (d)

      -        12/08/2029        6,641      6,645,372

Deliver Buyer, Inc. (MHS Holdings), Term Loan B (3 mo. Term SOFR + 5.50%)

      10.08%        06/08/2029        8,456      7,314,537

DXP Enterprises, Inc., Term Loan (1 mo. Term SOFR + 4.75%)

      10.17%        12/23/2027        5,823      5,731,729

Engineered Machinery Holdings, Inc., Second Lien Incremental Term Loan (3 mo. USD LIBOR + 6.00%)(e)

      10.73%        05/21/2029        754      704,937

Kantar (Summer BC Bidco) (United Kingdom)

            

Revolver Loan(e)(g)

      0.00%        06/04/2026        10,250      9,327,500

Term Loan (3 mo. EURIBOR + 4.25%)

      6.32%        12/04/2026        EUR         1,204      1,213,479

Term Loan B (3 mo. USD LIBOR + 5.00%)(e)

      9.77%        12/04/2026        10,259      9,746,100

Term Loan B-2(d)

      -        12/04/2026        2,278      2,172,325

Madison IAQ LLC, Term Loan (3 mo. USD LIBOR + 3.25%)

      7.99%        06/21/2028        11,154      10,648,488

MKS Instruments, Inc., Term Loan B (1 mo. Term SOFR + 2.75%)

      7.41%        08/17/2029        5,771      5,737,772

New VAC US LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)

      8.73%        03/08/2025        4,613      4,151,733

Robertshaw US Holding Corp.

            

First Lien Term Loan (3 mo. USD LIBOR + 3.50%)

      8.25%        02/28/2025        20,788      11,624,141

Second Lien Term Loan (3 mo. USD LIBOR + 8.00%)

      12.75%        02/28/2026        3,526      1,220,817

Tank Holding Corp.

            

Revolver Loan(e)

      10.47%        03/31/2028        295      274,174

Revolver Loan(e)(g)

      0.00%        03/31/2028        627      582,621

Term Loan (1 mo. Term SOFR + 6.00%)

      12.25%        03/31/2028        13,783      13,240,686

Thyssenkrupp Elevators (Vertical Midco GmbH) (Germany), Term Loan B (6 mo. USD LIBOR + 3.50%)

      8.60%        07/31/2027        18,222      17,850,185

Victory Buyer LLC (Vantage Elevator)

            

Second Lien Term Loan B(e)

      11.59%        11/19/2029        1,148      924,081

Term Loan B (1 mo. USD LIBOR + 3.75%)(e)

      8.34%        11/15/2028        11,241      9,892,441
                                119,003,118

Insurance–2.00%

            

Acrisure LLC

            

First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        02/15/2027        17,476      16,743,783

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        02/15/2027        4,764      4,575,793

First Lien Term Loan (1 mo. USD LIBOR + 4.25%)

      8.88%        02/15/2027        4,128      3,987,332

Term Loan (1 mo. Term SOFR + 5.75%)

      10.45%        02/15/2027        4,529      4,540,252

Alliant Holdings Intermediate LLC

            

Term Loan(d)

      -        05/09/2025        3,960      3,918,377

Term Loan (1 mo. USD LIBOR + 3.50%)

      8.09%        11/06/2027        3,265      3,232,124

AmWINS Group LLC, Term Loan B(d)

      -        02/19/2028        3,024      3,015,803

HUB International Ltd.

            

Incremental Term Loan B-3 (1 mo. USD LIBOR + 3.25%)

      8.06%        04/25/2025        3,506      3,504,986

Term Loan (3 mo. USD LIBOR + 3.00%)

      7.82%        04/25/2025        1,258      1,256,364

Ryan Specialty Group LLC, Term Loan (1 mo. USD LIBOR + 3.00%)

      7.72%        09/01/2027        5,473      5,474,968

Sedgwick Claims Management Services, Inc., Term Loan B(d)

      -        02/21/2028        1,400      1,385,534

USI, Inc.

            

Term Loan (1 mo. USD LIBOR + 3.25%)

      7.98%        12/02/2026        6,571      6,572,772

Term Loan

      8.33%        11/22/2029        9,029      9,024,703
                                67,232,791

Leisure Goods, Activities & Movies–3.18%

            

Carnival Corp.

            

Incremental Term Loan (6 mo. USD LIBOR + 3.25%)

      7.88%        10/18/2028        31,086      30,230,821

Term Loan (6 mo. USD LIBOR + 3.00%)

      7.63%        06/30/2025        1,677      1,653,293

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

11   Invesco Senior Floating Rate Fund

     

   Interest   

Rate

     

Maturity

Date

     

   Principal   

Amount

(000)(a)

      Value

Leisure Goods, Activities & Movies–(continued)

            

Crown Finance US, Inc.

            

DIP Term Loan

(Acquired 09/14/2022-09/23/2022; Cost $19,587,610)(f)

      14.40%        09/07/2023        $       20,466      $     20,926,717

First Lien Term Loan

(Acquired 02/27/2020-07/26/2022; Cost $10,169,548)(f)(i)(j)

      0.00%        09/30/2026        14,274      2,332,371

Revolver Loan(i)

      0.00%        03/02/2023        3,916      658,383

Term Loan

(Acquired 08/28/2020-11/30/2022; Cost $1,558,678)(f)(i)(j)

      0.00%        02/28/2025        EUR         1,928      333,375

Term Loan

(Acquired 02/09/2022-10/20/2022; Cost $3,535,751)(f)(i)(j)

      0.00%        02/28/2025        5,451      896,649

Delta 2 Lux S.a.r.l. (United Kingdom), First Lien Term Loan

      7.87%        01/15/2030        5,617      5,639,736

Fitness International LLC, Term Loan B (3 mo. USD LIBOR + 3.25%)

      8.08%        04/18/2025        2,900      2,786,125

Global University Systems (Netherlands), Term Loan B

      5.55%        01/29/2027        EUR         1,035      1,034,903

Nord Anglia Education, Term Loan B(d)

      -        01/25/2028        2,420      2,422,529

Parques Reunidos (Piolin Bidco s.a.u) (Spain)

            

Revolver Loan(e)

      5.63%        03/16/2026        EUR         1,678      1,588,835

Revolver Loan(e)(g)

      0.00%        03/16/2026        EUR            963      911,526

Royal Caribbean Cruises

            

Revolver Loan(d)(e)

      -        04/05/2024        12,468      11,937,742

Revolver Loan(e)(g)

      0.00%        04/05/2024        3,195      3,059,680

Scenic (Columbus Capital B.V.) (Australia), Term Loan B (3 mo. EURIBOR + 3.75%)

      5.95%        02/27/2027        EUR         5,217      4,519,429

SeaWorld Parks & Entertainment, Inc., Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.69%        08/25/2028        6,997      6,987,279

Vue International Bidco PLC (United Kingdom)

            

First Lien Term Loan(e)(j)

      0.00%        07/03/2025        GBP         2,500      1,661,436

Term Loan

      0.00%        06/30/2027        EUR            326      301,371

Term Loan

      9.77%        06/30/2027        EUR         1,867      1,728,026

Term Loan

      4.35%        12/31/2027        EUR         7,856      5,238,320
                                106,848,546

Lodging & Casinos–3.78%

            

Aimbridge Acquisition Co., Inc.

            

First Lien Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        02/02/2026        6,891      6,556,971

First Lien Term Loan (1 mo. USD LIBOR + 4.75%)

      9.34%        02/02/2026        6,611      6,301,798

B&B Hotels S.A.S. (France), Term Loan B-3-A (6 mo. EURIBOR + 3.38%)

      6.04%        07/31/2026        EUR         3,892      3,988,660

Bally’s Corp., Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.85%        10/02/2028        5,833      5,570,956

Caesars Entertainment, Inc., Term Loan B(d)

      -        01/26/2030        12,901      12,899,972

Everi Payments, Inc., Term Loan B (1 mo. USD LIBOR + 2.50%)

      7.13%        08/03/2028        7,630      7,611,470

Fertitta Entertainment LLC (Golden Nugget), Term Loan (1 mo. Term SOFR + 4.00%)

      8.62%        01/31/2029        6,996      6,818,767

Flutter Financing B.V. (Stars Group), Term Loan B (1 mo. Term SOFR + 3.25%)

      8.09%        07/04/2028        8,098      8,110,227

GVC Finance LLC

            

First Lien Term Loan (1 mo. Term SOFR + 3.50%)

      8.18%        10/31/2029        9,135      9,142,290

Term Loan B-4 (3 mo. USD LIBOR + 2.50%)

      7.23%        03/16/2027        5,475      5,474,600

Hilton Grand Vacations Borrower LLC, Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        08/02/2028        2,378      2,377,079

HotelBeds (United Kingdom)

            

Term Loan B (3 mo. EURIBOR + 4.25%)

      6.71%        09/12/2025        EUR         9,800      9,739,952

Term Loan C

      6.96%        09/30/2027        EUR       10,722      10,579,555

Term Loan D (6 mo. EURIBOR + 5.50%)

      7.75%        09/12/2027        EUR       14,533      14,607,209

Light & Wonder, Inc., Term Loan (1 mo. Term SOFR + 3.00%)

      7.66%        04/07/2029        4,994      4,988,843

Penn National Gaming, Inc., Term Loan B (1 mo. Term SOFR + 2.75%)

      7.47%        05/03/2029        7,867      7,853,517

Scientific Games Lottery, Term Loan B

      8.10%        04/04/2029        1,917      1,887,826

Travel + Leisure Co., Incremental Term Loan (1 mo. Term SOFR + 4.00%)

      8.61%        12/14/2029        2,505      2,501,675
                                127,011,367

Nonferrous Metals & Minerals–0.48%

            

ACNR Holdings, Inc., PIK Term Loan, 3.00% PIK Rate, 17.82%
Cash Rate (h)

      3.00%        09/16/2025        2,026      2,039,679

American Rock Salt Co. LLC, Second Lien Term Loan (1 mo. USD LIBOR + 7.25%)(e)

      11.88%        06/11/2029        369      350,406

AZZ, Inc., Term Loan

      8.97%        05/13/2029        6,188      6,198,370

Form Technologies LLC

            

First Lien Term Loan (3 mo. USD LIBOR + 4.50%)

      9.46%        07/19/2025        5,111      4,680,816

First Lien Term Loan (3 mo. USD LIBOR + 9.00%)(e)

      13.96%        10/22/2025        3,053      2,472,928

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

12   Invesco Senior Floating Rate Fund

     

   Interest   

Rate

     

Maturity

Date

     

   Principal   

Amount

(000)(a)

      Value

Nonferrous Metals & Minerals–(continued)

            

SCIH Salt Holdings Inc. (Kissner Group), Incremental First Lien Term Loan B-1 (1 mo. USD LIBOR + 4.00%)

      8.83%        03/16/2027        $            447      $          436,135
                                16,178,334

Oil & Gas–2.50%

            

Brazos Delaware II LLC, First Lien Term Loan (d)

      -        02/01/2030        7,152      7,119,322

Gulf Finance LLC, Term Loan (1 mo. USD LIBOR + 6.75%)

      11.48%        08/25/2026        5,018      4,933,943

McDermott International Ltd.

            

LOC(g)

      0.00%        06/30/2024        15,188      12,377,968

LOC(e)

      5.48%        06/30/2024        7,455      5,218,209

PIK Term Loan, 3.00% PIK Rate, 5.63% Cash Rate(h)

      3.00%        06/30/2025        3,954      2,624,768

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        06/30/2024        425      258,409

Par Petroleum LLC and Par Petroleum Finance Corp. (Par Pacific), Term Loan B(d)

      -        02/14/2030        4,955      4,901,981

Petroleum GEO-Services ASA (Norway)

            

Term Loan

(Acquired 05/23/2022; Cost $1,752,010)(e)(f)

      11.33%        03/18/2024        1,752      1,778,290

Term Loan (1 mo. USD LIBOR + 7.50%)

(Acquired 02/03/2021-03/02/2021; Cost $11,391,684)(f)

      12.14%        03/19/2024        12,926      12,732,669

QuarterNorth Energy, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)
(Acquired 08/03/2021-10/14/2022; Cost $24,041,870)(f)

      12.63%        08/27/2026        24,443      24,402,755

TransMontaigne Partners LLC, Term Loan B (1 mo. USD LIBOR + 3.50%)

      8.09%        11/17/2028        5,432      5,411,780

WhiteWater Whistler Holdings LLC, Term Loan B(d)

      -        01/25/2030        2,222      2,220,430
                                83,980,524

Publishing–3.38%

            

Adtalem Global Education, Inc., Term Loan B (1 mo. USD LIBOR + 4.00%)

      8.63%        08/12/2028        1,232      1,231,652

Cengage Learning, Inc., Term Loan B (6 mo. USD LIBOR + 4.75%)

      9.88%        06/29/2026        20,654      19,581,239

Clear Channel Worldwide Holdings, Inc., Term Loan B (3 mo. USD LIBOR + 3.50%)

      4.56%        08/21/2026        17,818      16,911,960

Dotdash Meredith, Inc., Term Loan B (1 mo. Term SOFR + 4.00%)(e)

      8.67%        12/01/2028        20,131      17,815,496

Harbor Purchaser, Inc. (Houghton Mifflin Harcourt)

            

Second Lien Term Loan(e)

      13.12%        04/08/2030        9,822      8,544,950

Term Loan B (1 mo. Term SOFR + 5.25%)

      9.97%        04/09/2029        14,427      13,273,372

McGraw-Hill Education, Inc., Term Loan B (1 mo. USD LIBOR + 4.75%)

      9.38%        07/30/2028        23,404      22,526,541

Micro Holding L.P.

            

First Lien Term Loan (3 mo. USD LIBOR + 3.75%)

      8.38%        09/13/2024        584      580,989

Term Loan (1 mo. USD LIBOR + 3.75%)

      8.38%        09/13/2024        13,241      13,166,489
                                113,632,688

Radio & Television–1.43%

            

Diamond Sports Holdings LLC, Second Lien Term Loan (1 mo. Term SOFR + 3.25%)
(Acquired 03/01/2022; Cost $6,394,647)(f)

      8.03%        08/24/2026        9,684      1,138,697

E.W. Scripps Co. (The), Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        01/07/2028        5,345      5,279,815

Gray Television, Inc., Term Loan D (1 mo. USD LIBOR + 3.00%)

      7.57%        12/01/2028        9,405      9,316,548

iHeartCommunications, Inc.

            

Incremental Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        05/01/2026        2,801      2,730,496

Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        05/01/2026        12,780      12,405,396

Sinclair Television Group, Inc.

            

Term Loan B-2-B (1 mo. USD LIBOR + 2.50%)

      7.14%        09/30/2026        5,129      4,981,906

Term Loan B-3 (1 mo. USD LIBOR + 3.00%)

      7.64%        04/01/2028        12,428      12,002,100
                                47,854,958

Retailers (except Food & Drug)–1.93%

            

Bass Pro Group LLC, Term Loan B-2 (1 mo. USD LIBOR + 3.75%)

      8.38%        03/06/2028        13,427      13,255,066

CNT Holdings I Corp. (1-800 Contacts), First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        11/08/2027        11,078      10,898,107

Kirk Beauty One GmbH (Germany)

            

Term Loan B-1 (6 mo. EURIBOR + 5.50%)

      7.45%        04/08/2026        EUR         1,487      1,503,839

Term Loan B-2 (6 mo. EURIBOR + 5.50%)

      7.45%        04/08/2026        EUR            858      867,595

Term Loan B-3

      7.45%        04/08/2026        EUR         1,724      1,742,987

Term Loan B-4 (6 mo. EURIBOR + 5.50%)

      7.45%        04/08/2026        EUR         2,624      2,652,390

Term Loan B-5 (6 mo. EURIBOR + 5.50%)

      7.45%        04/08/2026        EUR            585      591,181

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

13   Invesco Senior Floating Rate Fund

     

   Interest   

Rate

     

Maturity

Date

     

   Principal   

Amount

(000)(a)

      Value

Retailers (except Food & Drug)–(continued)

            

Petco Animal Supplies, Inc., First Lien Term loan (3 mo. Term SOFR + 3.25%)

      8.09%        03/02/2028        $         6,949      $       6,888,372

PetSmart LLC, Term Loan (1 mo. Term SOFR + 3.75%)

      8.47%        02/11/2028        18,875      18,849,283

Savers, Inc., Term Loan (3 mo. USD LIBOR + 5.50%)

      10.34%        04/26/2028        7,705      7,634,174
                                64,882,994

Structured Products–0.08%

            

Madison Park Funding XVIII Ltd. (Cayman Islands), Series 2015-18A, Class ER (k)

      6.35%        10/21/2030        3,150      2,804,328

Surface Transport–2.10%

            

American Trailer World Corp., First Lien Term Loan (1 mo. Term SOFR + 3.75%)

      8.47%        03/03/2028        4,119      3,662,350

Carriage Purchaser, Inc., Term Loan B (1 mo. USD LIBOR + 4.25%)

      8.88%        09/30/2028        3,727      3,676,926

First Student Bidco, Inc.

            

Delayed Draw Term Loan (3 mo. Term SOFR + 4.00%)

      8.68%        07/21/2028        721      704,192

Incremental Term Loan B (3 mo. Term SOFR + 4.00%)

      8.68%        07/21/2028        10,380      10,140,360

Term Loan B (3 mo. USD LIBOR + 3.00%)

      7.73%        07/21/2028        14,021      13,408,781

Term Loan C (3 mo. USD LIBOR + 3.00%)

      7.73%        07/21/2028        5,228      4,999,545

Hurtigruten (Explorer II AS) (Norway)

            

Term Loan B (3 mo. EURIBOR + 4.00%)
(Acquired 04/16/2021-09/27/2021; Cost $16,530,827)(f)

      7.20%        02/24/2025        EUR       14,280      13,767,017

Term Loan C (3 mo. EURIBOR + 8.00%)
(Acquired 10/05/2021; Cost $2,322,126)(f)

      10.63%        06/16/2023        EUR         2,000      2,108,789

Term Loan D (3 mo. EURIBOR + 8.00%)
(Acquired 09/30/2021; Cost $1,748,584)(f)

      9.30%        06/22/2023        EUR         1,505      1,587,142

Novae LLC, Term Loan B (3 mo. Term SOFR + 5.00%)

      9.70%        12/22/2028        2,141      1,855,473

PODS LLC

            

Term Loan(d)(e)

      -        04/01/2028        3,869      3,849,987

Term Loan B (1 mo. USD LIBOR + 3.00%)

      7.73%        04/01/2028        6,910      6,758,422

STG - XPOI Opportunity, Term Loan B (1 mo. Term SOFR + 6.00%)

      10.78%        04/30/2028        4,047      3,879,505
                                70,398,489

Telecommunications–6.36%

            

Avaya, Inc.

            

DIP Term Loan(e)

      0.00%        08/15/2023        4,152      4,318,317

DIP Term Loan(e)(g)

      0.00%        08/15/2023        1,038      1,079,579

First Lien Term Loan(i)(j)

      0.00%        12/15/2027        21,667      5,655,023

Term Loan B-2(i)(j)

      0.00%        12/15/2027        6,107      1,580,301

Cablevision Lightpath LLC, Term Loan (1 mo. USD LIBOR + 3.25%)

      7.84%        11/30/2027        3,183      3,166,887

CCI Buyer, Inc. (Consumer Cellular), Term Loan(d)

      -        12/17/2027        13,823      13,625,489

CenturyLink, Inc.

            

Term Loan A(d)

      -        01/31/2025        3,613      3,482,339

Term Loan B (1 mo. USD LIBOR + 2.25%)

      6.88%        03/15/2027        23,609      19,690,898

Crown Subsea Communications Holding, Inc.

            

Incremental Term Loan(d)

      -        04/27/2027        4,089      4,031,609

Term Loan (1 mo. Term SOFR + 4.75%)

      9.32%        04/27/2027        10,393      10,247,275

Eagle Broadband Investments LLC (Mega Broadband), Term Loan (3 mo. USD LIBOR + 3.00%)

      7.75%        11/12/2027        5,597      5,544,999

Frontier Communications Corp., Term Loan B (3 mo. USD LIBOR + 3.75%)

      8.50%        05/01/2028        39      38,168

II-VI, Inc., Term Loan B (1 mo. USD LIBOR + 2.75%)

      7.38%        07/01/2029        11,221      11,199,850

Inmarsat Finance PLC (United Kingdom), Term Loan (1 mo. USD LIBOR + 3.50%)

      8.14%        12/11/2026        5,434      5,351,226

Intelsat Jackson Holdings S.A. (Luxembourg), Term Loan B (6 mo. Term SOFR + 4.25%)

      9.08%        02/01/2029        28,728      28,447,281

MLN US HoldCo LLC (dba Mitel)

            

First Lien Term Loan (6 mo. USD LIBOR + 4.50%)

      8.25%        11/30/2025        164      48,701

First Lien Term Loan(e)

      11.15%        11/01/2027        23,471      17,016,089

First Lien Term Loan

      13.70%        11/01/2027        8,152      6,236,182

Term Loan

      10.89%        11/01/2027        9,986      9,786,621

Radiate Holdco LLC, Term Loan B (1 mo. USD LIBOR + 3.25%)

      7.88%        09/25/2026        10,427      8,684,320

Telesat LLC, Term Loan B-5 (1 mo. USD LIBOR + 2.75%)

      7.58%        12/07/2026        15,834      8,561,761

Viasat, Inc., Term Loan (1 mo. Term SOFR + 3.75%)

      9.23%        03/02/2029        7,317      7,252,991

Voyage Digital (NC) Ltd., Term Loan B (3 mo. Term SOFR + 4.50%)(e)

      9.30%        05/10/2029        6,014      5,968,897

Windstream Services LLC, Term Loan (1 mo. Term SOFR + 6.25%)

      10.97%        09/21/2027        18,426      16,588,994

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

14   Invesco Senior Floating Rate Fund

     

   Interest   

Rate

     

Maturity

Date

     

   Principal   

Amount

(000)(a)

      Value

Telecommunications–(continued)

            

Zayo Group Holdings, Inc., Term Loan (1 mo. USD LIBOR + 3.00%)

      7.63%        03/09/2027      $        15,138      $     12,638,447

Zayo Group LLC, Incremental Term Loan (1 mo. Term SOFR + 4.25%)

      8.87%        03/09/2027        3,825      3,274,042
                                213,516,286

Utilities–2.30%

            

APLP Holdings L.P. (Canada), Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        05/14/2027        3,314      3,323,109

Brookfield WEC Holdings, Inc.

            

First Lien Term Loan (1 mo. USD LIBOR + 2.75%)

      7.38%        08/01/2025        3,303      3,294,897

Incremental Term Loan

      8.37%        08/01/2025        9,705      9,715,885

Eastern Power LLC, Term Loan (3 mo. USD LIBOR + 3.75%)

      8.48%        10/02/2025        8,014      7,315,967

Frontera Generation Holdings LLC

            

First Lien Term Loan (Prime Rate + 13.00%)

(Acquired 07/28/2021; Cost $4,144,155)(e)(f)

      17.73%        07/28/2026        4,165      4,164,980

Second Lien Term Loan (Prime Rate + 1.50%)

(Acquired 07/28/2021; Cost $2,069,196)(e)(f)

      6.23%        07/28/2028        4,043      1,010,645

Generation Bridge LLC

            

Term Loan B (3 mo. USD LIBOR + 5.00%)

      9.73%        12/01/2028        2,561      2,558,979

Term Loan C (1 mo. USD LIBOR + 5.00%)

      9.73%        12/01/2028        56      56,318

Granite Generation LLC, Term Loan (1 mo. USD LIBOR + 3.75%)

      10.50%        11/09/2026        6,673      6,410,143

KAMC Holdings, Inc. (Franklin Energy Group), First Lien Term Loan B

      8.95%        08/14/2026        2,974      2,601,967

Lightstone Holdco LLC

            

Term Loan B (1 mo. Term SOFR + 5.75%)

      10.37%        02/01/2027        13,431      11,470,809

Term Loan C (1 mo. Term SOFR + 5.75%)

      10.37%        02/01/2027        756      646,069

Nautilus Power LLC, Term Loan (3 mo. USD LIBOR + 4.25%)
(Acquired 05/21/2020-06/02/2020; Cost $6,159,189)(f)

      8.88%        05/16/2024        6,246      4,643,874

Osmose Utilities Services, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%)

      7.88%        06/23/2028        2,513      2,432,541

Talen Energy Supply LLC

            

DIP Term Loan (3 mo. Term SOFR + 4.75%)

      9.27%        11/11/2023        5,859      5,921,222

Term Loan

      0.00%        09/30/2024        7,332      8,811,923

USIC Holding, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.50%)

      8.13%        05/12/2028        3,032      2,946,714
                                77,326,042

Total Variable Rate Senior Loan Interests (Cost $2,969,255,234)

                               2,768,578,977
                   Shares       

Common Stocks & Other Equity Interests–5.94%(l)

            

Building & Development–0.00%

            

Haya (Holdco2 PLC/Real Estate SAU) (Acquired 06/14/2022; Cost $0)(e)(f)

                        12,156      0

Business Equipment & Services–0.77%

            

iQor US, Inc., Term Loan(e)

                        451,676      338,757

My Alarm Center LLC, Class A (Acquired 03/09/2021-12/03/2021; Cost $21,866,485)(e)(f)(m)

                        162,067      25,525,595
                                25,864,352

Containers & Glass Products–0.22%

            

Libbey Glass, Inc. (Acquired 11/13/2020-02/10/2022; Cost $3,769,108)(f)

                        864,916      7,459,900

Electronics & Electrical–0.00%

            

Fusion Connect, Inc. (Acquired 05/03/2018-12/31/2019; Cost $1,142)(e)(f)

                        113      1

Fusion Connect, Inc., Wts., expiring 01/14/2040 (Acquired 05/03/2018-12/31/2019; Cost $10,615,018)(e)(f)(m)

                        1,052,649      10,526

Internap Corp. (Acquired 02/06/2018-02/24/2020; Cost $8,725,189)(e)(f)

                        2,426,706      0

Riverbed Technology, Inc. (Acquired 12/06/2021; Cost $1,900,489)(e)(f)

                        113,462      28,933

Sungard Availability Services Capital, Inc. (Acquired 06/27/2018-05/03/2019; Cost $3,020,003)(f)

                        37,318      21,085
                                60,545

Industrial Equipment–0.15%

            

North American Lifting Holdings, Inc.(m)

                        679,193      5,178,847

Leisure Goods, Activities & Movies–0.00%

            

Crown Finance US, Inc., Wts., expiring 11/23/2025 (Acquired 12/09/2020;
Cost $0)(f)

                        781,854      0

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

15   Invesco Senior Floating Rate Fund

                   Shares      Value

 

Leisure Goods, Activities & Movies–(continued)

            

Vue International Bidco PLC(e)

            7,855,967      $0

 

            0

 

Oil & Gas–4.73%

            

Aquadrill LLC (Acquired 05/27/2021; Cost $5,147,302)(f)

            166,042      9,353,727

 

Catalina Marketing Corp.

            245,192      76,622

 

Harvey Gulf International Marine LLC (Acquired 03/18/2014-07/02/2018;
Cost $10,077,450)(e)(f)(m)

            116,926      2,630,835

 

Larchmont Resources LLC (Acquired 12/09/2016; Cost $2,732,241)(e)(f)(m)

            8,096      210,484

 

McDermott International Ltd.(e)

            789,865      307,652

 

QuarterNorth Energy, Inc. (Acquired 06/02/2021-10/29/2021;
Cost $27,641,655)(e)(f)(m)

            671,335      133,924,617

 

Sabine Oil & Gas Holdings, Inc. (Acquired 01/16/2013-03/12/2021;
Cost $18,267,226)(e)(f)

            18,025      361

 

Southcross Energy Partners L.P. (Acquired 07/30/2014-10/29/2020;
Cost $29,026,224)(e)(f)(m)

            2,914,935      21,862

 

Tribune Resources LLC (Acquired 03/30/2018; Cost $18,014,717)(f)(m)

            5,811,199      12,168,651

 

Tribune Resources LLC, Wts., expiring 04/03/2023 (Acquired 03/30/2018;
Cost $150,456)(e)(f)(m)

            1,504,557      37,614

 

            158,732,425

 

Surface Transport–0.07%

            

Commercial Barge Line Co. (Acquired 01/31/2020-02/06/2020;
Cost $1,838,610)(f)

            35,397      1,044,212

 

Commercial Barge Line Co., Series A, Wts., expiring 08/18/2030
(Acquired 02/03/2023; Cost $0)(f)(m)

            138,456      64,901

 

Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045
(Acquired 02/03/2023; Cost $0)(f)(m)

            100,115      62,572

 

Commercial Barge Line Co., Wts., expiring 04/27/2045 (Acquired 01/31/2020-08/25/2020; Cost $1,932,877)(f)(m)

            37,211      1,097,724

 

            2,269,409

 

Utilities–0.00%

            

Frontera Generation Holdings LLC (Acquired 07/28/2021-11/30/2021;
Cost $1,035,881)(e)(f)(m)

            295,967      4,440

 

Total Common Stocks & Other Equity Interests (Cost $194,067,321)

             199,569,918

 

        Interest   
Rate		      Maturity
Date		     

   Principal   

Amount

(000)(a)

       

Non-U.S. Dollar Denominated Bonds & Notes–3.67%(n)

            

Automotive–0.22%

            

Cabonline Group Holding AB (Sweden) (3 mo. STIBOR + 9.50%)(k)(o)

      12.37%        04/19/2026      SEK  71,250      6,261,941

 

Leather 2 S.p.A. (Italy) (3 mo. EURIBOR + 4.50%)(k)(o)

      6.70%        09/30/2028      EUR  1,369      1,164,684

 

            7,426,625

 

Building & Development–0.15%

            

APCOA Parking Holdings GmbH (Germany) (3 mo. EURIBOR + 5.00%)(k)(o)

      7.29%        01/15/2027      EUR  750      776,576

 

Haya (Holdco2 PLC/Real Estate SAU) (Spain) (Acquired 06/14/2022;
Cost $7,341,357)(f)

      10.95%        11/30/2025      EUR  10,024      4,161,276

 

            4,937,852

 

Cable & Satellite Television–0.09%

            

Altice Finco S.A. (Luxembourg)(k)

      4.75%        01/15/2028      EUR  3,744      3,072,823

 

Chemicals & Plastics–0.07%

            

Herens Midco S.a.r.l. (Luxembourg)(k)

      5.25%        05/15/2029      EUR  3,268      2,389,349

 

Electronics & Electrical–0.20%

            

Nobel Bidco B.V. (Netherlands)(k)

      3.13%        06/15/2028      EUR  9,070      6,742,033

 

Financial Intermediaries–1.23%

            

AnaCap Financial Europe S.A. SICAV-RAIF (Italy) (3 mo. EURIBOR + 5.00%)(k)(o)

      7.48%        08/01/2024      EUR  13,583      11,990,189

 

Garfunkelux Holdco 3 S.A. (Luxembourg)(k)

      6.75%        11/01/2025      EUR  2,100      1,828,533

 

Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 6.25%)(k)(o)

      8.73%        05/01/2026      EUR  10,341      9,648,667

 

Garfunkelux Holdco 3 S.A. (Luxembourg)(k)

      6.75%        11/01/2025      EUR  1,000      870,730

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

16   Invesco Senior Floating Rate Fund

    

   Interest   

Rate

      Maturity
Date		     

   Principal   

Amount

(000)(a)

      Value

 

Financial Intermediaries–(continued)

            

Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 6.25%)(k)(o)

      8.73%        05/01/2026      EUR  1,825      $1,702,816

 

Kane Bidco Ltd. (United Kingdom)(k)

      5.00%        02/15/2027      EUR  976      964,624

 

Kane Bidco Ltd. (United Kingdom)(k)

      6.50%        02/15/2027      GBP  1,219      1,338,589

 

Sherwood Financing PLC (United Kingdom)(k)

      4.50%        11/15/2026      EUR  1,391      1,297,927

 

Sherwood Financing PLC (United Kingdom)(k)

      6.00%        11/15/2026      GBP  1,404      1,408,460

 

Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR +
4.63%)(k)(o)

      7.28%        11/15/2027      EUR  9,180      9,247,259

 

Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR +
4.63%)(k)(o)

      7.28%        11/15/2027      EUR  1,000      1,007,327

 

            41,305,121

 

Food Products–0.30%

            

Sigma Holdco B.V. (Netherlands)(k)

      5.75%        05/15/2026      EUR  11,623      9,949,651

 

Home Furnishings–0.45%

            

Ideal Standard International S.A. (Belgium)(k)

      6.38%        07/30/2026      EUR  2,054      1,227,262

 

Very Group Funding PLC (The) (United Kingdom)(k)

      6.50%        08/01/2026      GBP  14,141      13,713,909

 

            14,941,171

 

Industrial Equipment–0.12%

            

Summer (BC) Holdco A S.a.r.l. (Luxembourg)(k)

      9.25%        10/31/2027      EUR  4,597      4,051,446

 

Leisure Goods, Activities & Movies–0.04%

            

Deuce Finco PLC (United Kingdom)(k)

      5.50%        06/15/2027      GBP  1,363      1,392,422

 

Retailers (except Food & Drug)–0.52%

            

Douglas GmbH (Germany)(k)

      6.00%        04/08/2026      EUR            5,000      4,665,751

 

Douglas GmbH (Germany)(k)

      6.00%        04/08/2026      EUR  6,486      6,052,412

 

Kirk Beauty SUN GmbH (Germany)(k)

      8.25%        10/01/2026      EUR  8,485      6,854,312

 

            17,572,475

 

Surface Transport–0.28%

            

Zenith Finco PLC (United Kingdom)(k)

      6.50%        06/30/2027      GBP  9,042      8,633,230

 

Zenith Finco PLC (United Kingdom)(k)

      6.50%        06/30/2027      GBP  752      718,004

 

            9,351,234

 

Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $152,067,071)

             123,132,202

 

U.S. Dollar Denominated Bonds & Notes–2.08%

            

Aerospace & Defense–0.30%

            

Castlelake Aviation Finance DAC (k)

      5.00%        04/15/2027             $ 5,800      5,215,250

 

Rand Parent LLC(k)

      8.50%        02/15/2030        4,914      4,723,582

 

            9,938,832

 

Building & Development–0.38%

            

Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (Acquired 11/02/2020-12/11/2020; Cost $4,792,041)(f)(k)

      5.75%        05/15/2026        5,180      4,774,378

 

Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (Acquired 09/22/2021-12/15/2021; Cost $9,299,448)(f)(k)

      4.50%        04/01/2027        9,367      8,035,996

 

            12,810,374

 

Business Equipment & Services–0.12%

            

ADT Security Corp. (The) (k)

      4.13%        08/01/2029        4,743      4,086,047

 

Cable & Satellite Television–0.61%

            

Altice Financing S.A. (Luxembourg) (k)

      5.75%        08/15/2029        1,414      1,157,918

 

Altice Financing S.A. (Luxembourg)(k)

      5.00%        01/15/2028        13,121      10,900,664

 

Altice France S.A. (France)(k)

      5.50%        10/15/2029        6,838      5,358,828

 

Virgin Media Secured Finance PLC (United Kingdom)(k)

      4.50%        08/15/2030        3,741      3,083,080

 

            20,500,490

 

Chemicals & Plastics–0.17%

            

SK Invictus Intermediate II S.a.r.l. (Luxembourg) (k)

      5.00%        10/30/2029        7,312      5,825,690

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

17   Invesco Senior Floating Rate Fund

    

   Interest   

Rate

      Maturity
Date		     

   Principal   

Amount

(000)(a)

      Value

 

Food Service–0.07%

            

WW International, Inc. (k)

      4.50%        04/15/2029      $ 4,476      $2,287,840

 

Health Care–0.05%

            

Global Medical Response, Inc. (k)

      6.50%        10/01/2025        2,186      1,641,949

 

Industrial Equipment–0.02%

            

Chart Industries, Inc. (k)

      7.50%        01/01/2030        669      679,871

 

Lodging & Casinos–0.05%

            

Caesars Entertainment, Inc. (k)

      7.00%        02/15/2030        1,548      1,561,429

 

Nonferrous Metals & Minerals–0.04%

            

SCIH Salt Holdings, Inc. (k)

      4.88%        05/01/2028        1,735      1,501,816

 

Publishing–0.06%

            

McGraw-Hill Education, Inc. (k)

      5.75%        08/01/2028        2,153      1,887,551

 

Radio & Television–0.02%

            

Diamond Sports Group LLC/Diamond Sports Finance Co. (Acquired 10/14/2020-10/23/2020; Cost $4,635,672)(f)(k)

      5.38%        08/15/2026        6,116      693,860

 

Retailers (except Food & Drug)–0.10%

            

Evergreen Acqco 1 L.P./TVI, Inc. (k)

      9.75%        04/26/2028        3,315      3,282,331

 

Telecommunications–0.09%

            

Windstream Escrow LLC/Windstream Escrow Finance Corp. (k)

      7.75%        08/15/2028        3,818      3,124,594

 

Total U.S. Dollar Denominated Bonds & Notes (Cost $84,414,588)

             69,822,674

 

                   Shares       

Preferred Stocks–1.81%(l)

            

Electronics & Electrical–0.00%

            

Riverbed Technology, Inc., Pfd. (Acquired 12/06/2021; Cost $0)(e)(f)

            174,464      44,488

 

Riverbed Technology, Inc., Pfd.(e)

            49,182      12,542

 

            57,030

 

Nonferrous Metals & Minerals–1.24%

            

ACNR Holdings, Inc., Pfd.

            68,978      41,490,267

 

Oil & Gas–0.10%

            

McDermott International Ltd., Pfd.(e)

            4,210      2,736,505

 

Southcross Energy Partners L.P., Series A, Pfd. (Acquired 05/07/2019-10/31/2019; Cost $11,607,048)(e)(f)(m)

            11,609,066      638,499

 

            3,375,004

 

Surface Transport–0.47%

            

Commercial Barge Line Co., Series A, Pfd. (Acquired 01/31/2020-08/25/2020; Cost $4,105,181)(f)

            131,713      2,831,829

 

Commercial Barge Line Co., Series A, Pfd., Wts., expiring 04/27/2045 (Acquired 01/31/2020-02/01/2021; Cost $4,315,155)(f)(m)

            138,456      2,976,804

 

Commercial Barge Line Co., Series B, Pfd. (Acquired 02/05/2020-10/27/2020; Cost $3,389,672)(f)

            142,554      5,844,714

 

Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045 (Acquired 02/05/2020-02/17/2021; Cost $2,380,533)(f)(m)

            100,115      4,104,715

 

            15,758,062

 

Total Preferred Stocks (Cost $28,307,719)

             60,680,363

 

    

   Interest   

Rate

      Maturity
Date		     

   Principal   

Amount

(000)(a)

       

Asset-Backed Securities–0.35%

            

Structured Products–0.35%

            

Babson Euro CLO B.V., Series 2021-1A, Class E (Ireland) (3 mo. EURIBOR + 7.05%) (k)(n)(o)

      9.47%        04/24/2034      EUR            977      918,263

 

CIFC Funding Ltd., Series 2014-4RA, Class DR (Cayman Islands) (3 mo. USD LIBOR + 7.00%)(k)(o)

      11.79%        01/17/2035             $ 1,250      1,126,416

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

18   Invesco Senior Floating Rate Fund

    

   Interest   

Rate

      Maturity
Date		     

   Principal   

Amount

(000)(a)

      Value

 

Structured Products–(continued)

            

CVC Cordatus Loan Fund XXIII, Series 23A, Class E (Ireland) (3 mo. EURIBOR + 7.26%)(k)(n)(o)

      9.71%        04/25/2036      EUR            2,873      $2,864,684

 

Jubilee CLO, Series 2018-21A, Class E-R (Ireland) (3 mo. EURIBOR + 6.07%)(k)(n)(o)

      8.36%        04/15/2035      EUR  1,959      1,860,987

 

Madison Park Funding XXX Ltd., Series 2018-30A, Class E (Cayman Islands) (3 mo. USD LIBOR + 4.95%)(k)(o)

      9.74%        04/15/2029             $ 3,275      3,017,221

 

Regatta XIV Funding Ltd., Series 2018-3A, Class E (Cayman Islands) (3 mo. USD LIBOR + 5.95%)(k)(o)

      10.77%        10/25/2031        2,200      1,890,304

 

Total Asset-Backed Securities (Cost $12,735,745)

             11,677,875

 

Municipal Obligations–0.37%

            

Arizona–0.37%

            

Arizona (State of) Industrial Development Authority,(NewLife Forest Restoration, LLC), Series 2022, RB
(Acquired 02/22/2022; Cost $13,788,812) (Cost $15,269,219)(f)(k)

      0.00%        01/01/2028        15,101      12,579,255

 

                   Shares       

Money Market Funds–2.78%

            

Invesco Government & Agency Portfolio,Institutional Class, 4.51%(m)(p)

            58,234,151      58,234,151

 

Invesco Treasury Portfolio,Institutional Class, 4.50%(m)(p)

            35,136,767      35,136,767

 

Total Money Market Funds (Cost $93,370,918)

             93,370,918

 

TOTAL INVESTMENTS IN SECURITIES–99.45%
(Cost $3,549,487,815)

             3,339,412,182

 

OTHER ASSETS LESS LIABILITIES–0.55%

             18,402,226

 

NET ASSETS–100.00%

             $3,357,814,408

 

Investment Abbreviations:

 

CLO    – Collateralized Loan Obligation
DIP    – Debtor-in-Possession
EUR    – Euro
EURIBOR    – Euro Interbank Offered Rate
GBP    – British Pound Sterling
LIBOR    – London Interbank Offered Rate
LOC    – Letter of Credit
Pfd.    – Preferred
PIK    – Pay-in-Kind
RB    – Revenue Bonds
SEK    – Swedish Krona
SOFR    – Secured Overnight Financing Rate
STIBOR    – Stockholm Interbank Offered Rate
USD    – U.S. Dollar
Wts.    – Warrants

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

19   Invesco Senior Floating Rate Fund

Notes to Schedule of Investments:

 

(a)

Principal amounts are denominated in U.S. dollars unless otherwise noted.

(b)

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 any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years.

(c)

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. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

(d)

This variable rate interest will settle after February 28, 2023, at which time the interest rate will be determined.

(e) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

(f)

Restricted security. The aggregate value of these securities at February 28, 2023 was $407,576,411, which represented 12.14% of the Fund’s Net Assets.

(g) 

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 8.

(h)

All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities.

(i) 

The borrower has filed for protection in federal bankruptcy court.

(j)

Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 28, 2023 was $28,968,392, which represented less than 1% of the Fund’s Net Assets.

(k)

Security purchased or received in a transaction exempt from registration under 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 February 28, 2023 was $215,855,058, which represented 6.43% of the Fund’s Net Assets.

(l)

Securities acquired through the restructuring of senior loans.

(m)

Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or is an “affiliated person” under the Investment Company Act of 1940, as amended (the “1940 Act”), which defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. For the Investments in Other Affiliates below, the Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 28, 2023.

 

    

Value

August 31, 2022

     

Purchases

at Cost

     

Proceeds

from Sales

     Change in
Unrealized
Appreciation
(Depreciation)		     Realized
Gain		      Value
February 28, 2023		      Income  

 

  
Investments in Affiliated Money Market Funds:                   

 

  

Invesco Government & Agency Portfolio, Institutional Class

    $ 110,290,453      $ 217,361,904      $ (269,418,206 )    $ -     $ -      $ 58,234,151      $ 1,305,666  

 

  

Invesco Treasury Portfolio, Institutional Class

      69,840,969        144,907,936        (179,612,138 )      -       -        35,136,767        677,223  

 

  

Investments in Other Affiliates:

                   

 

  

Commercial Barge Line Co., Wts., expiring 04/27/2045

      725,614        -        -       372,110       -        1,097,724        -  

 

  

Commercial Barge Line Co., Series A, Pfd., Wts., expiring 04/27/2045

      3,484,453        -        -       (507,649 )      -        2,976,804        -  

 

  

Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045

      4,880,606        -        -       (775,891 )      -        4,104,715        -  

 

  

Commercial Barge Line Co., Series A, Wts.,expiring 08/18/2030

      584,111        -        (584,133 )      (519,210 )      584,133        64,901        -  

 

  

Commercial Barge Line Co., Series B, Wts.,expiring 04/30/2045

      563,147        -        (563,168 )      (500,575 )      563,168        62,572        -  

 

  

Frontera Generation Holdings LLC

      92,490        -        -       (88,050 )      -        4,440        -  

 

  

Fusion Connect, Inc., Wts., expiring 01/14/2040

      10,526        -        -       -       -        10,526        -  

 

  

Harvey Gulf International Marine LLC

      2,747,761        -        -       (116,926 )      -        2,630,835        -  

 

  

Larchmont Resources LLC

      809,553        -        -       (599,069 )      -        210,484        546,742  

 

  

My Alarm Center LLC, Class A

      25,849,729        -        -       (324,134 )      -        25,525,595        -  

 

  

North American Lifting Holdings, Inc.

      6,791,930        -        -       (1,613,083 )      -        5,178,847        -  

 

  

QuarterNorth Energy, Inc.

      80,784,090        -        -       53,140,527       -        133,924,617        4,160,800  

 

  

Southcross Energy Partners L.P., Series A, Pfd.

      870,680        -        -       (232,181 )      -        638,499        1,139,915  

 

  

Southcross Energy Partners L.P.

      87,448        -        -       (65,586 )      -        21,862        -  

 

  

Tribune Resources LLC, Wts., expiring 04/03/2023

      37,614        -        -       -       -        37,614        -  

 

  

Tribune Resources LLC

      16,163,850        -        -       (3,995,199 )      -        12,168,651        639,232  

 

  

Total

    $ 324,615,024      $ 362,269,840      $ (450,177,645 )    $ 44,175,084     $ 1,147,301      $ 282,029,604      $ 8,469,578  

 

  

 

(n)

Foreign denominated security. Principal amount is denominated in the currency indicated.

(o)

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2023.

(p)

The rate shown is the 7-day SEC standardized yield as of February 28, 2023.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

20   Invesco Senior Floating Rate Fund

Open Forward Foreign Currency Contracts  

 

  
Settlement         Contract to      Unrealized
Appreciation		  
Date    Counterparty    Deliver      Receive      (Depreciation)  

 

  

Currency Risk

                  

 

  

04/28/2023

    Barclays Bank PLC      EUR        4,889,862        USD        5,236,042      $ 46,742  

 

  

04/28/2023

    Barclays Bank PLC      GBP        13,238,993        USD        16,042,870        101,572  

 

  

03/31/2023

    BNP Paribas S.A.      EUR        90,335,879        USD        98,681,993        2,967,785  

 

  

03/31/2023

    BNP Paribas S.A.      GBP        16,701,021        USD        20,615,164        515,764  

 

  

04/28/2023

    BNP Paribas S.A.      EUR        88,361,330        USD        94,465,852        693,572  

 

  

04/28/2023

    Canadian Imperial Bank of Commerce      GBP        13,439,584        USD        16,309,817        126,983  

 

  

03/31/2023

    Morgan Stanley Capital Services LLC      EUR        91,704,604        USD        100,278,526        3,114,103  

 

  

03/31/2023

    Morgan Stanley Capital Services LLC      GBP        1,760,774        USD        2,142,784        23,721  

 

  

03/31/2023

    Morgan Stanley Capital Services LLC      USD        388,471        GBP        322,926        165  

 

  

04/28/2023

    Morgan Stanley Capital Services LLC      EUR        88,402,737        USD        94,524,628        708,405  

 

  

04/28/2023

    Morgan Stanley Capital Services LLC      SEK        65,269,489        USD        6,338,733        84,584  

 

  

03/31/2023

    Royal Bank of Canada      EUR        91,704,604        USD        100,213,691        3,049,268  

 

  

03/31/2023

    Royal Bank of Canada      GBP        16,451,752        USD        20,258,359        458,949  

 

  

04/28/2023

    Royal Bank of Canada      EUR        88,361,330        USD        94,537,963        765,684  

 

  

03/31/2023

    State Street Bank & Trust Co.      EUR        1,510,981        USD        1,651,519        50,578  

 

  

03/31/2023

    State Street Bank & Trust Co.      SEK        64,299,379        USD        6,299,929        148,157  

 

  

03/31/2023

    Toronto Dominion Bank (The)      EUR        1,000,000        USD        1,070,701        11,164  

 

  

03/31/2023

    Toronto Dominion Bank (The)      GBP        16,701,021        USD        20,607,615        508,215  

 

  

04/28/2023

    Toronto Dominion Bank (The)      GBP        13,439,584        USD        16,329,222        146,389  

 

  

03/31/2023

    UBS      EUR        3,509,094        USD        3,774,083        56,068  

 

  

Subtotal–Appreciation

 

               13,577,868  

 

  

Currency Risk

                  

 

  

03/31/2023

    Barclays Bank PLC      SEK        661,398        USD        62,414        (865 ) 

 

  

03/31/2023

    Barclays Bank PLC      USD        15,882,427        GBP        13,114,234        (99,665 ) 

 

  

03/31/2023

    BNP Paribas S.A.      USD        94,313,428        EUR        88,361,329        (691,328 ) 

 

  

03/31/2023

    Canadian Imperial Bank of Commerce      USD        16,146,766        GBP        13,312,935        (124,871 ) 

 

  

03/31/2023

    Morgan Stanley Capital Services LLC      GBP        495,653        USD        596,064        (446 ) 

 

  

03/31/2023

    Morgan Stanley Capital Services LLC      USD        100,569,086        EUR        94,042,504        (927,572 ) 

 

  

03/31/2023

    Morgan Stanley Capital Services LLC      USD        2,832,963        GBP        2,294,374        (71,722 ) 

 

  

03/31/2023

    Morgan Stanley Capital Services LLC      USD        6,299,256        SEK        64,960,777        (84,205 ) 

 

  

04/28/2023

    Morgan Stanley Capital Services LLC      USD        2,126,706        EUR        2,000,000        (4,232 ) 

 

  

03/31/2023

    Royal Bank of Canada      USD        100,931,181        EUR        94,361,330        (951,859 ) 

 

  

03/31/2023

    Toronto Dominion Bank (The)      USD        24,318,696        GBP        20,065,752        (169,898 ) 

 

  

03/31/2023

    UBS      USD        3,252,879        EUR        3,000,000        (74,268 ) 

 

  

03/31/2023

    UBS      USD        3,610,830        GBP        3,000,000        (380 ) 

 

  

Subtotal–Depreciation

 

               (3,201,311 ) 

 

  

Total Forward Foreign Currency Contracts

 

             $ 10,376,557  

 

  

Abbreviations:

EUR - Euro

GBP - British Pound Sterling

SEK - Swedish Krona

USD - U.S. Dollar

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

21   Invesco Senior Floating Rate Fund

Portfolio Composition†

By credit quality, based on total investments

as of February 28, 2023

 

BBB-

      1.31%  

 

  

BB+

      1.41     

 

  

BB

      6.68     

 

  

BB-

      8.62     

 

  

B+

      12.13     

 

  

B

      22.79     

 

  

B-

      19.37     

 

  

CCC+

      6.44     

 

  

CCC

      2.33     

 

  

CCC-

      0.23     

 

  

CC

      0.04     

 

  

D

      0.37     

 

  

Non-Rated

      10.34     

 

  

Equity

      7.94     

 

  

 

† 

Source: Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non- Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard & Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Rating Resources on the homepage.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

22   Invesco Senior Floating Rate Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $3,297,747,774)

    $ 3,057,382,578  

 

  

Investments in affiliates, at value
(Cost $251,740,041)

      282,029,604  

 

  

Other investments:

 

Unrealized appreciation on forward foreign currency contracts outstanding

      13,577,868  

 

  

Cash

      60,301,741  

 

  

Foreign currencies, at value (Cost $1,690,419)

      1,686,644  

 

  

Receivable for:

   

Investments sold

      143,134,109  

 

  

Fund shares sold

      2,257,271  

 

  

Dividends

      505,237  

 

  

Interest

      38,400,691  

 

  

Investments matured, at value
(Cost $11,602,385)

      9,028,201  

 

  

Investment for trustee deferred compensation and retirement plans

      389,554  

 

  

Other assets

      749,321  

 

  

Total assets

      3,609,442,819  

 

  

Liabilities:

 

Other investments:

   

Unrealized depreciation on forward foreign currency contracts outstanding

      3,201,311  

 

  

Payable for:

   

Investments purchased

      188,119,840  

 

  

Dividends

      6,606,993  

 

  

Fund shares reacquired

      4,292,850  

 

  

Accrued fees to affiliates

      1,428,424  

 

  

Accrued trustees’ and officers’ fees and benefits

      2,881  

 

  

Accrued other operating expenses

      474,920  

 

  

Trustee deferred compensation and retirement plans

      389,554  

 

  

Unfunded loan commitments

      47,111,638  

 

  

Total liabilities

      251,628,411  

 

  

Net assets applicable to shares outstanding

    $ 3,357,814,408  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 6,093,435,913  

 

  

Distributable earnings (loss)

      (2,735,621,505 ) 

 

  
   $ 3,357,814,408  

 

  

Net Assets:

 

Class A

    $ 1,562,061,611  

 

  

Class C

    $ 228,036,534  

 

  

Class R

    $ 54,680,324  

 

  

Class Y

    $ 1,334,338,888  

 

  

Class R5

    $ 19,597  

 

  

Class R6

    $ 178,677,454  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      236,273,304  

 

  

Class C

      34,469,997  

 

  

Class R

      8,275,806  

 

  

Class Y

      202,234,291  

 

  

Class R5

      2,962  

 

  

Class R6

      27,083,044  

 

  

Class A:

   

Net asset value per share

    $ 6.61  

 

  

Maximum offering price per share

   

(Net asset value of $6.61 ÷ 96.75%)

    $ 6.83  

 

  

Class C:

   

Net asset value and offering price per share

    $ 6.62  

 

  

Class R:

   

Net asset value and offering price per share

    $ 6.61  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 6.60  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 6.62  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 6.60  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

23   Invesco Senior Floating Rate Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Interest

    $ 148,407,288  

 

  

Dividends

      301,675  

 

  

Dividends from affiliates

      8,469,578  

 

  

Total investment income

      157,178,541  

 

  

Expenses:

   

Advisory fees

      10,453,971  

 

  

Administrative services fees

      249,580  

 

  

Custodian fees

      149,121  

 

  

Distribution fees:

   

Class A

      1,948,543  

 

  

Class C

      1,225,425  

 

  

Class R

      135,208  

 

  

Interest, facilities and maintenance fees

      729,570  

 

  

Transfer agent fees - A, C, R and Y

      2,213,778  

 

  

Transfer agent fees - R5

      2  

 

  

Transfer agent fees - R6

      30,591  

 

  

Trustees’ and officers’ fees and benefits

      19,081  

 

  

Registration and filing fees

      123,585  

 

  

Reports to shareholders

      102,055  

 

  

Professional services fees

      188,096  

 

  

Other

      20,036  

 

  

Total expenses

      17,588,642  

 

  

Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s)

      (686,527 ) 

 

  

Net expenses

      16,902,115  

 

  

Net investment income

      140,276,426  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities

      (55,016,243 ) 

 

  

Affiliated investment securities

      1,147,301  

 

  

Foreign currencies

      1,339,583  

 

  

Forward foreign currency contracts

      (13,902,332 ) 

 

  
     (66,431,691 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      (5,168,638 ) 

 

  

Affiliated investment securities

      44,175,084  

 

  

Foreign currencies

      830,663  

 

  

Forward foreign currency contracts

      1,263,164  

 

  
     41,100,273  

 

  

Net realized and unrealized gain (loss)

      (25,331,418 ) 

 

  

Net increase in net assets resulting from operations

    $ 114,945,008  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

24   Invesco Senior Floating Rate Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

    

February 28,

2023

     August 31,
2022		  

 

  

Operations:

     

Net investment income

    $ 140,276,426     $ 192,029,545  

 

  

Net realized gain (loss)

      (66,431,691 )      (11,120,621 ) 

 

  

Change in net unrealized appreciation (depreciation)

      41,100,273       (174,503,134 ) 

 

  

Net increase in net assets resulting from operations

      114,945,008       6,405,790  

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (94,713,592 )      (80,741,633 ) 

 

  

Class C

      (13,760,424 )      (13,510,386 ) 

 

  

Class R

      (3,201,635 )      (2,706,058 ) 

 

  

Class Y

      (84,282,475 )      (76,112,499 ) 

 

  

Class R5

      (746 )      (619 ) 

 

  

Class R6

      (11,832,883 )      (10,713,187 ) 

 

  

Total distributions from distributable earnings

      (207,791,755 )      (183,784,382 ) 

 

  

Share transactions–net:

     

Class A

      (35,161,984 )      49,014,679  

 

  

Class C

      (33,333,592 )      (116,082,537 ) 

 

  

Class R

      488,717       (1,790,388 ) 

 

  

Class Y

      (78,922,881 )      201,656,747  

 

  

Class R5

      8,335       –  

 

  

Class R6

      (61,469,249 )      59,681,079  

 

  

Net increase (decrease) in net assets resulting from share transactions

      (208,390,654 )      192,479,580  

 

  

Net increase (decrease) in net assets

      (301,237,401 )      15,100,988  

 

  

Net assets:

     

Beginning of period

      3,659,051,809       3,643,950,821  

 

  

End of period

    $ 3,357,814,408     $ 3,659,051,809  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

25   Invesco Senior Floating Rate Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Net asset

value, end

of period

  

Total

return(b)

  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with

fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed(c)

  

Supplemental

ratio of

expenses

to average

net assets

with fee waivers

(excluding

interest,

facilities and

maintenance

fees)

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (d)

Class A

                          

Six months ended 02/28/23

         $6.79             $0.27             $(0.05 )            $0.22             $(0.40 )            $6.61         3.39 %      $1,562,062         1.05 %(e)      1.09 %(e)      1.00 %(e)      8.12 %(e)      15 % 

Year ended 08/31/22

     7.10       0.35       (0.32 )      0.03       (0.34 )      6.79       0.40       1,639,394       1.04       1.04       1.00       5.05       68  

Year ended 08/31/21

     6.61       0.31       0.49       0.80       (0.31 )      7.10       12.35       1,666,116       1.07       1.10       1.00       4.56       86  

Year ended 08/31/20

     7.63       0.32       (1.02 )      (0.70 )      (0.32 )      6.61       (9.23 )      1,586,129       1.13       1.16       1.02       4.59       53  

One month ended 08/31/19

     7.77       0.03       (0.14 )      (0.11 )      (0.03 )      7.63       (1.37 )      2,962,352       1.11 (e)      1.12 (e)      1.01 (e)      5.25 (e)      1  

Year ended 07/31/19

     8.13       0.41       (0.37 )      0.04       (0.40 )      7.77       0.58       3,104,336       1.10       1.10       1.00       5.12       25  

Year ended 07/31/18

     8.15       0.37       (0.05 )      0.32       (0.34 )      8.13       3.96       3,899,006       1.11       1.12       0.99       4.53       66  

Class C

                          

Six months ended 02/28/23

     6.79       0.24       (0.03 )      0.21       (0.38 )      6.62       3.16       228,037       1.80 (e)      1.84 (e)      1.75 (e)      7.37 (e)      15  

Year ended 08/31/22

     7.11       0.30       (0.33 )      (0.03 )      (0.29 )      6.79       (0.49 )      268,127       1.79       1.79       1.75       4.30       68  

Year ended 08/31/21

     6.62       0.26       0.49       0.75       (0.26 )      7.11       11.50       398,409       1.82       1.85       1.75       3.81       86  

Year ended 08/31/20

     7.64       0.27       (1.02 )      (0.75 )      (0.27 )      6.62       (9.90 )      733,122       1.88       1.91       1.77       3.84       53  

One month ended 08/31/19

     7.78       0.03       (0.14 )      (0.11 )      (0.03 )      7.64       (1.43 )      1,640,440       1.86 (e)      1.87 (e)      1.76 (e)      4.50 (e)      1  

Year ended 07/31/19

     8.14       0.35       (0.36 )      (0.01 )      (0.35 )      7.78       (0.17 )      1,734,118       1.85       1.85       1.75       4.37       25  

Year ended 07/31/18

     8.16       0.31       (0.06 )      0.25       (0.27 )      8.14       3.18       2,497,209       1.86       1.87       1.74       3.78       66  

Class R

                          

Six months ended 02/28/23

     6.79       0.26       (0.05 )      0.21       (0.39 )      6.61       3.26       54,680       1.30 (e)      1.34 (e)      1.25 (e)      7.87 (e)      15  

Year ended 08/31/22

     7.10       0.34       (0.33 )      0.01       (0.32 )      6.79       0.14       55,615       1.29       1.29       1.25       4.80       68  

Year ended 08/31/21

     6.61       0.30       0.48       0.78       (0.29 )      7.10       12.07       60,060       1.32       1.35       1.25       4.31       86  

Year ended 08/31/20

     7.62       0.31       (1.01 )      (0.70 )      (0.31 )      6.61       (9.34 )      59,212       1.38       1.41       1.27       4.34       53  

One month ended 08/31/19

     7.76       0.03       (0.14 )      (0.11 )      (0.03 )      7.62       (1.39 )      87,586       1.36 (e)      1.37 (e)      1.26 (e)      5.00 (e)      1  

Year ended 07/31/19

     8.13       0.39       (0.38 )      0.01       (0.38 )      7.76       0.20       91,419       1.35       1.35       1.25       4.87       25  

Year ended 07/31/18

     8.14       0.35       (0.04 )      0.31       (0.32 )      8.13       3.82       88,230       1.36       1.37       1.24       4.29       66  

Class Y

                          

Six months ended 02/28/23

     6.78       0.28       (0.05 )      0.23       (0.41 )      6.60       3.51       1,334,339       0.80 (e)      0.84 (e)      0.75 (e)      8.37 (e)      15  

Year ended 08/31/22

     7.09       0.37       (0.33 )      0.04       (0.35 )      6.78       0.63       1,450,652       0.79       0.79       0.75       5.30       68  

Year ended 08/31/21

     6.60       0.33       0.49       0.82       (0.33 )      7.09       12.65       1,323,124       0.82       0.85       0.75       4.81       86  

Year ended 08/31/20

     7.61       0.35       (1.02 )      (0.67 )      (0.34 )      6.60       (8.90 )      1,571,552       0.88       0.91       0.77       4.84       53  

One month ended 08/31/19

     7.75       0.04       (0.14 )      (0.10 )      (0.04 )      7.61       (1.35 )      4,734,607       0.86 (e)      0.87 (e)      0.76 (e)      5.50 (e)      1  

Year ended 07/31/19

     8.11       0.43       (0.37 )      0.06       (0.42 )      7.75       0.82       5,266,308       0.85       0.85       0.75       5.37       25  

Year ended 07/31/18

     8.13       0.39       (0.05 )      0.34       (0.36 )      8.11       4.21       7,495,276       0.86       0.87       0.74       4.78       66  

Class R5

                          

Six months ended 02/28/23

     6.80       0.28       (0.05 )      0.23       (0.41 )      6.62       3.55       20       0.73 (e)      0.73 (e)      0.69 (e)      8.44 (e)      15  

Year ended 08/31/22

     7.11       0.38       (0.33 )      0.05       (0.36 )      6.80       0.74       12       0.70       0.70       0.66       5.39       68  

Year ended 08/31/21

     6.62       0.34       0.48       0.82       (0.33 )      7.11       12.65       12       0.73       0.74       0.66       4.90       86  

Year ended 08/31/20

     7.63       0.34       (1.00 )      (0.66 )      (0.35 )      6.62       (8.80 )      8       0.80       0.80       0.69       4.92       53  

One month ended 08/31/19

     7.77       0.04       (0.14 )      (0.10 )      (0.04 )      7.63       (1.34 )      10       0.80 (e)      0.82 (e)      0.71 (e)      5.55 (e)      1  

Period ended 07/31/19(f)

     7.87       0.08       (0.10 )      (0.02 )      (0.08 )      7.77       (0.28 )      10       0.77 (e)      0.77 (e)      0.67 (e)      5.45 (e)      25  

Class R6

                          

Six months ended 02/28/23

     6.77       0.28       (0.04 )      0.24       (0.41 )      6.60       3.69       178,677       0.73 (e)      0.73 (e)      0.69 (e)      8.44 (e)      15  

Year ended 08/31/22

     7.08       0.37       (0.32 )      0.05       (0.36 )      6.77       0.72       245,252       0.70       0.70       0.66       5.39       68  

Year ended 08/31/21

     6.60       0.34       0.47       0.81       (0.33 )      7.08       12.60       196,230       0.69       0.74       0.62       4.94       86  

Year ended 08/31/20

     7.61       0.36       (1.02 )      (0.66 )      (0.35 )      6.60       (8.80 )      194,825       0.77       0.79       0.66       4.95       53  

One month ended 08/31/19

     7.75       0.04       (0.14 )      (0.10 )      (0.04 )      7.61       (1.34 )      997,162       0.75 (e)      0.76 (e)      0.65 (e)      5.61 (e)      1  

Year ended 07/31/19

     8.11       0.43       (0.36 )      0.07       (0.43 )      7.75       0.93       1,056,032       0.74       0.74       0.64       5.48       25  

Year ended 07/31/18

     8.13       0.40       (0.06 )      0.34       (0.36 )      8.11       4.31       1,373,036       0.77       0.78       0.65       4.88       66  

 

(a) 

Calculated using average shares outstanding.

(b) 

Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

(c) 

In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. Estimated underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the Fund’s total return. Estimated acquired fund fees from underlying funds were 1.12%, 1.10% and 1.13% for the one month ended August 31, 2019 and the years ended July 31, 2019 and 2018, respectively.

(d) 

Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended ended August 31, 2021, the portfolio turnover calculation excludes the value of securities purchased of $42,745,724 in connection with the acquisition of Invesco Senior Floating Rate Plus Fund into the Fund.

(e) 

Annualized.

(f) 

Commencement date after the close of business on May 24, 2019.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

26   Invesco Senior Floating Rate Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Senior Floating Rate Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is to seek income.

The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations – Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 (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 daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and the asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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, if available, 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, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or

 

27   Invesco Senior Floating Rate Fund

other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Facility fees received may be amortized over the life of the loan. 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.

Other income is comprised primarily of amendment fees which are recorded when received. Amendment fees are received in return for changes in the terms of the loan or note.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions – Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

Interest, Facilities and Maintenance Fees – Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses and other expenses associated with establishing and maintaining the line of credit.

H.

Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

I.

Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

J.

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.

K.

Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases

 

28   Invesco Senior Floating Rate Fund

  and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

L.

Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

M.

Industry Focus – To the extent that the Fund invests a greater amount of its assets in securities of issuers in the banking and financial services industries, the Fund’s performance will depend to a greater extent on the overall condition of those industries. The value of these securities can be sensitive to changes in government regulation, interest rates and economic downturns in the U.S. and abroad.

N.

Bank Loan Risk – 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, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. 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 seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

O.

LIBOR Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. Although the publication of most LIBOR rates ceased at the end of 2021, a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly transition away from these rates.

There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.

P.

Leverage Risk – The Fund may utilize leverage to seek to enhance the yield of the Fund by borrowing. There are risks associated with borrowing in an effort to increase the yield and distributions on the common shares, including that the costs of the financial leverage may exceed the income from investments purchased with such leverage proceeds, the higher volatility of the net asset value of the shares, and that fluctuations in the interest rates on the borrowing may affect the yield and distributions to the common shareholders. There can be no assurance that the Fund’s leverage strategy will be successful.

Q.

Other Risks – The Fund may invest all or substantially all of its assets in senior secured floating rate loans and senior secured debt securities that are determined to be 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”.

Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.

Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.

R.

COVID-19 Risk – The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including

 

29   Invesco Senior Floating Rate Fund

  business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

 

Average Daily Net Assets    Rate*  

 

  

First $200 million

      0.750%  

 

  

Next $200 million

      0.720%  

 

  

Next $200 million

      0.690%  

 

  

Next $200 million

      0.660%  

 

  

Next $4.2 billion

      0.600%  

 

  

Next $5 billion

      0.580%  

 

  

Next $10 billion

      0.560%  

 

  

Over $20 billion

      0.550%  

 

  

 

*

The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with Invesco.

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.61%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.

Effective January 1, 2023, the Adviser has contractually agreed, through at least December 31, 2023, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.02%, 1.77%, 1.27%, 0.77%, 0.77% and 0.77%, respectively, of the Fund’s average daily net assets (the “expense limits”). Prior to January 1, 2023, the Adviser had contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.00%, 1.75%, 1.25%, 0.75%, 0.75% and 0.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees.

Further, the Adviser has contractually agreed, through at least June 30, 2024, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended February 28, 2023, the Adviser waived advisory fees of $53,829 and reimbursed class level expenses of $291,062, $46,911, $10,554, $264,542, $0 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Fund, SSB also serves as the funds’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $28,521 in front-end sales commissions from the sale of Class A shares and $14,075 and $18,809 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

 

30   Invesco Senior Floating Rate Fund

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1      Level 2     Level 3      Total  

 

  

Investments in Securities

           

 

  

Variable Rate Senior Loan Interests

    $ –              $ 2,457,541,928             $ 311,037,049              $ 2,768,578,977  

 

  

Common Stocks & Other Equity Interests

      –        36,528,241       163,041,677        199,569,918  

 

  

Non-U.S. Dollar Denominated Bonds & Notes

      –        123,132,202       –        123,132,202  

 

  

U.S. Dollar Denominated Bonds & Notes

      –        69,822,674       –        69,822,674  

 

  

Preferred Stocks

      –        57,248,329       3,432,034        60,680,363  

 

  

Municipal Obligations

      –        12,579,255       –        12,579,255  

 

  

Asset-Backed Securities

      –        11,677,875       –        11,677,875  

 

  

Money Market Funds

      93,370,918        –       –        93,370,918  

 

  

Total Investments in Securities

      93,370,918        2,768,530,504       477,510,760        3,339,412,182  

 

  

Other Investments - Assets*

           

 

  

Investments Matured

      –        9,028,201       –        9,028,201  

 

  

Forward Foreign Currency Contracts

      –        13,577,868       –        13,577,868  

 

  
     –        22,606,069       –        22,606,069  

 

  

Other Investments - Liabilities*

           

 

  

Forward Foreign Currency Contracts

      –        (3,201,311 )      –        (3,201,311 ) 

 

  

Total Other Investments

      –        19,404,758       –        19,404,758  

 

  

Total Investments

    $ 93,370,918      $ 2,787,935,262     $ 477,510,760      $ 3,358,816,940  

 

  

 

*

Forward foreign currency contracts are valued at unrealized appreciation (depreciation). Investments matured are shown at value.

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) during the six months ended February 28, 2023:

 

    

Value

08/31/22

     

Purchases

at Cost

     

Proceeds

from Sales

    

Accrued

Discounts/

Premiums

     

Realized

Gain

(Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Transfers

into

Level 3*

     

Transfers

out of

Level 3*

    

Value

02/28/23

  

 

  
Variable Rate Senior Loan Interests    $ 290,176,775      $ 75,981,572      $ (37,872,221 )    $ 1,510,354      $ (2,575,441 )    $ (8,190,390 )    $ 77,058,864      $ (85,052,464 )    $ 311,037,049  

 

  
Common Stocks & Other Equity Interests      48,978,198        –        (1,979,186 )      –        (79,225 )      49,735,146       81,131,871        (14,745,127 )      163,041,677  

 

  
Preferred Stocks      3,607,185        –        –       –        –       (1,293,381 )      1,118,230        –       3,432,034  

 

  

Total

    $ 342,762,158      $ 75,981,572      $ (39,851,407 )    $ 1,510,354      $ (2,654,666 )    $ 40,251,375     $ 159,308,965      $ (99,797,591 )    $ 477,510,760  

 

  

* Transfers into and out of level 3 are due to increases or decreases in market activity impacting the available market inputs to determine the price.

Securities determined to be Level 3 at the end of the reporting period were valued primarily by utilizing evaluated prices from a third-party vendor pricing service. A significant change in third-party pricing information could result in a lower or higher value in Level 3 investments.

The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as level 3 at period end:

 

    

Fair Value

at 02/28/23

     

Valuation

Technique

     

Unobservable

Inputs

     

Range of

Unobservable

Inputs

   

Unobservable

Input Used

  

 

  

QuarterNorth Energy, Inc.

    $ 133,924,617        Bid Offer        Bid Offer Price      N/A      $199.49          (a)  

 

  

 

(a) 

QuarterNorth Energy, Inc. publicly announced that it has engaged a financial advisor to pursue a sale of the company. The Adviser values the common shares at the first round of bids for the sale of the business. The Adviser periodically reviews the financial statements and monitors such investments for additional market information of the occurrence of a significant event which would warrant a re-evaluation of the security’s fair valuation.

 

31   Invesco Senior Floating Rate Fund

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2023:

 

     Value  
Derivative Assets   

Currency

Risk

  

 

  

Unrealized appreciation on forward foreign currency contracts outstanding

      $13,577,868  

 

  

Derivatives not subject to master netting agreements

      –  

 

  

Total Derivative Assets subject to master netting agreements

      $13,577,868  

 

  
     Value  
Derivative Liabilities    Currency
Risk		  

 

  

Unrealized depreciation on forward foreign currency contracts outstanding

      $(3,201,311 ) 

 

  

Derivatives not subject to master netting agreements

      –  

 

  

Total Derivative Liabilities subject to master netting agreements

      $(3,201,311 ) 

 

  

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2023.

 

     Financial
Derivative Assets		   Financial
Derivative
Liabilities		         Collateral
(Received)/Pledged		       
Counterparty    Forward Foreign
Currency Contracts		   Forward Foreign
Currency Contracts		   Net Value of
Derivatives		     Non-Cash    Cash   

Net

Amount

  

 

  

Barclays Bank PLC

      $     148,314        $   (100,530 )       $       47,784     $–    $–      $47,784  

 

  

BNP Paribas S.A.

      4,177,121       (691,328 )      3,485,793       –      –      3,485,793  

 

  

Canadian Imperial Bank of Commerce

      126,983       (124,871 )      2,112       –      –      2,112  

 

  

Morgan Stanley Capital Services LLC

      3,930,978       (1,088,177 )      2,842,801       –      –      2,842,801  

 

  

Royal Bank of Canada

      4,273,901       (951,859 )      3,322,042       –      –      3,322,042  

 

  

State Street Bank & Trust Co.

      198,735       –       198,735       –      –      198,735  

 

  

Toronto Dominion Bank (The)

      665,768       (169,898 )      495,870       –      –      495,870  

 

  

UBS

      56,068       (74,648 )      (18,580 )      –      –      (18,580 ) 

 

  

Total

      $13,577,868       $(3,201,311 )      $10,376,557     $–    $–      $10,376,557  

 

  

Effect of Derivative Investments for the six months ended February 28, 2023

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

 

     Location of Gain (Loss) on  
     Statement of Operations  
     Currency  
     Risk  

 

  

Realized Gain (Loss):

   

Forward foreign currency contracts

      $(13,902,332)  

 

  

Change in Net Unrealized Appreciation:

   

Forward foreign currency contracts

          1,263,164  

 

  

Total

      $(12,639,168)  

 

  

The table below summarizes the average notional value of derivatives held during the period.

     Forward
Foreign Currency
Contracts		  

 

  

Average notional value

      $1,116,473,393  

 

  

 

32   Invesco Senior Floating Rate Fund

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $19,629.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7–Cash Balances and Borrowings

Effective February 17, 2023, the Fund has entered into a credit agreement, which enables the Fund to participate with certain other Invesco Funds in a committed secured borrowing facility that permits borrowings up to $1.07 billion, collectively by certain Invesco Funds, and which will expire on February 16, 2024. Prior to February 17, 2023, the credit agreement permitted borrowings up to $1.1 billion. The credit agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the credit agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the credit agreement. During the six months ended February 28, 2023, the Fund did not borrow under this agreement.

Additionally, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8–Unfunded Loan Commitments

Pursuant to the terms of certain Senior Loan agreements, the Fund held the following unfunded loan commitments as of February 28, 2023. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid Senior Loans as a reserve. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

 

                 Unrealized  
          Unfunded Loan      Appreciation  
Borrower    Type    Commitment      (Depreciation)  

 

  

athenahealth Group, Inc.

   

Delayed Draw Term Loan

    $ 1,265,919      $ (91,254 ) 

 

  

Avaya, Inc.

   

DIP Term Loan

      1,006,358        73,221  

 

  

Dermatology Intermediate Holdings III, Inc.

   

Delayed Draw Term Loan

      784        (12 ) 

 

  

Dun & Bradstreet Corp. (The)

   

Revolver Loan

      10,890,083        774,035  

 

  

Financiere Pax S.A.S.

   

Revolver Loan

      1,152,650        (129,815 ) 

 

  

Groundworks LLC

   

Delayed Draw Term Loan

      1,762,720        16,906  

 

  

Groundworks LLC

   

Term Loan

      804,354        0  

 

  

Groundworks LLC

   

Term Loan

      257,393        0  

 

  

Kantar (Summer BC Bidco)

   

Revolver Loan

      9,376,125        (48,625 ) 

 

  

McDermott International Ltd.

   

LOC

      15,187,691        (2,809,722 ) 

 

  

Parques Reunidos (Piolin Bidco s.a.u)

   

Revolver Loan

      1,027,180        (115,654 ) 

 

  

Royal Caribbean Cruises

   

Revolver Loan

      3,054,973        4,707  

 

  

Tank Holding Corp.

   

Revolver Loan

      616,076        (33,455 ) 

 

  

Vertellus

   

Revolver Loan

      709,332        (32,340 ) 

 

  
   $ 47,111,638      $ (2,392,008 ) 

 

  

NOTE 9–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

Capital Loss Carryforward*  

 

  
Expiration    Short-Term      Long-Term      Total  

 

  

Not subject to expiration

    $ 176,781,660      $ 2,293,312,640      $ 2,470,094,300  

 

  

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

 

33   Invesco Senior Floating Rate Fund

NOTE 10–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $509,210,819 and $829,292,650, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $ 202,203,479  

 

  

Aggregate unrealized (depreciation) of investments

      (412,082,486 ) 

 

  

Net unrealized appreciation (depreciation) of investments

      $(209,879,007 ) 

 

  

Cost of investments for tax purposes is $3,568,695,947.

NOTE 11–Senior Loan Participation 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 six months ended February 28, 2023, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.

 

     Principal         
Selling Participant    Amount      Value  

 

  

Bank of America, N.A.

    $ 17,418,003              $ 16,853,905  

 

  

Barclays Bank PLC

      15,187,691        12,605,784  

 

  

Credit Agricole CIB

      1,582,065        1,313,114  

 

  

JPMorgan Europe Ltd.

      2,825,635        1,659,668  

 

  

NOTE 12–Dividends

The Fund declared the following monthly dividends from net investment income subsequent to February 28, 2023:

 

               Amount Per Share
Share Class    Record Date                Payable April 28, 2023

 

Class A

    Daily       $0.0422

 

Class C

    Daily       $0.0380

 

Class R

    Daily       $0.0407

 

Class Y

    Daily       $0.0434

 

Class R5

    Daily       $0.0440

 

Class R6

    Daily       $0.0439

 

NOTE 13–Share Information

 

           Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Sold:

         

Class A

      14,705,290     $ 98,020,143       47,641,433     $ 334,278,812  

 

  

Class C

      2,627,854       17,526,979       8,088,635       56,812,169  

 

  

Class R

      407,150       2,710,126       1,427,305       9,999,546  

 

  

Class Y

      39,016,825        259,513,006       152,010,600       1,065,154,555  

 

  

Class R5

      1,256       8,335       -       -  

 

  

Class R6

      9,936,659       65,854,094       47,951,917       333,995,515  

 

  

Issued as reinvestment of dividends:

         

Class A

      10,301,533       67,912,540       8,291,919       57,698,731  

 

  

Class C

      1,567,540       10,341,044       1,430,472       9,981,569  

 

  

Class R

      469,500       3,093,018       375,423       2,612,061  

 

  

Class Y

      8,023,486       52,799,242       7,087,693       49,232,229  

 

  

Class R6

      968,851       6,376,854       742,943       5,140,709  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      3,795,657       25,227,964       15,437,423       108,140,623  

 

  

Class C

      (3,792,018 )      (25,227,964 )      (15,424,045 )      (108,140,623 ) 

 

  

 

34   Invesco Senior Floating Rate Fund

           Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Reacquired:

         

Class A

      (33,985,839 )    $ (226,322,631 )      (64,565,601 )    $ (451,103,487 ) 

 

  

Class C

      (5,399,059 )      (35,973,651 )      (10,698,524 )      (74,735,652 ) 

 

  

Class R

      (797,274 )      (5,314,427 )      (2,070,887 )      (14,401,995 ) 

 

  

Class Y

      (58,907,275 )      (391,235,129 )      (131,743,792 )      (912,730,037 ) 

 

  

Class R6

      (20,025,699 )      (133,700,197 )      (40,196,462 )      (279,455,145 ) 

 

  

Net increase (decrease) in share activity

      (31,085,563 )    $ (208,390,654 )      25,786,452     $ 192,479,580  

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 57% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

35   Invesco Senior Floating Rate Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

    The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

    Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

          ACTUAL  

HYPOTHETICAL

(5% annual return before

expenses)

     
     Beginning
    Account Value    
(09/01/22)		   Ending
    Account Value    
(02/28/23)1		   Expenses
      Paid During      
Period2		   Ending
      Account Value      
(02/28/23)		   Expenses
      Paid During      
Period2		  

      Annualized      
Expense

Ratio

Class A

   $1,000.00   $1,033.90   $5.30   $1,019.59   $5.26   1.05%

Class C

     1,000.00     1,031.60     9.07     1,015.87     9.00   1.80   

Class R

     1,000.00     1,032.60     6.55     1,018.35     6.51   1.30   

Class Y

     1,000.00     1,035.10     4.04     1,020.83     4.01   0.80  

Class R5

     1,000.00     1,035.50     3.68     1,021.17     3.66   0.73   

Class R6

     1,000.00     1,036.90     3.69     1,021.17     3.66   0.73   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

36   Invesco Senior Floating Rate Fund

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Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

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To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

    Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

 

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SEC file number(s): 811-09913 and 333-36074                    Invesco Distributors, Inc.    O-SFLR-SAR-1                                         

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Semiannual Report to Shareholders    February 28, 2023

Invesco Short Duration High Yield Municipal Fund

Nasdaq:

A: ISHAX ∎ C: ISHCX ∎ Y: ISHYX ∎ R5: ISHFX ∎ R6: ISHSX

 

 

2   Fund Performance  
4   Schedule of Investments  
27   Financial Statements  
30   Financial Highlights  
31   Notes to Financial Statements  
38   Fund Expenses  

 

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

Performance summary

      

Fund vs. Indexes

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares

    -1.02%

Class C Shares

    -1.29    

Class Y Shares

    -0.79    

Class R5 Shares

    -0.79    

Class R6 Shares

    -0.75    

S&P Municipal Bond High Yield Indexq (Broad Market Index)

    -1.68    

Custom Invesco Short Duration High Yield Municipal Index∎ (Style-Specific Index)

    -0.87    

Lipper High Yield Municipal Debt Funds Index◆ (Peer Group Index)

    -1.54    

Source(s): qRIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp.; ◆Lipper Inc.

The S&P Municipal Bond High Yield Index is an unmanaged index considered representative of municipal bonds that are not rated or are rated below investment grade.

    The Custom Invesco Short Duration High Yield Municipal Index is composed of 60% S&P Municipal Bond High Yield Index and 40% S&P Municipal Bond Short Index. The S&P Municipal Bond Short Index is considered representative of US municipal bonds with maturities between six months and four years.

    The Lipper High Yield Municipal Debt Funds Index is an unmanaged index considered representative of high-yield municipal debt funds tracked by Lipper.

    The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

    A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 

 

 

 

For more information about your Fund

 

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

 

2                    Invesco Short Duration High Yield Municipal Fund

 

Average Annual Total Returns

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

         

Inception (9/30/15)

      1.98%  

  5 Years

      0.60     

  1 Year

      -9.12     

Class C Shares

         

Inception (9/30/15)

      1.57%  

  5 Years

      0.37     

  1 Year

      -8.37     

Class Y Shares

         

Inception (9/30/15)

      2.60%  

  5 Years

      1.37     

  1 Year

      -6.50     

Class R5 Shares

         

Inception (9/30/15)

      2.63%  

  5 Years

      1.39     

  1 Year

      -6.50     

Class R6 Shares

         

Inception

      2.58%  

  5 Years

      1.40     

  1 Year

      -6.43     

Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Class A share performance reflects the maximum 2.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

    

    

 

 

3                    Invesco Short Duration High Yield Municipal Fund

Schedule of Investments

February 28, 2023

(Unaudited)

 

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

Municipal Obligations–99.10%

           

Alabama–2.50%

           

Birmingham (City of), AL Special Care Facilities Financing Authority (Methodist Home for the Aging); Series 2016, RB

      5.25%       06/01/2025      $ 875      $          859,692

Black Belt Energy Gas District (The);

           

Series 2022 C-1, RB(a)

      5.25%       06/01/2029        5,750      6,071,036

Series 2022 F, RB(a)

      5.50%       12/01/2028        2,500      2,641,134

Fairfield (City of), AL; Series 2012, GO Wts. (Acquired 04/30/2012;
Cost $3,622,756)(b)(c)

      6.00%       06/01/2031        3,585      2,868,000

Huntsville (City of), AL Special Care Facilities Financing Authority (Redstone Village);

           

Series 2007, RB (Acquired 12/29/2015; Cost $90,000)(b)(c)

      5.50%       01/01/2028        90      55,800

Series 2014, RB

      3.50%       07/01/2026        5,022      3,113,940

Mobile (City of), AL Improvement District (McGowin Park);

           

Series 2016 A, RB

      5.00%       08/01/2025        770      759,665

Series 2016 A, RB

      5.25%       08/01/2030        200      190,146

Southeast Energy Authority A Cooperative District (No. 2); Series 2021 B, RB(a)

      4.00%       12/01/2031        5,390      5,253,355

Southeast Energy Authority A Cooperative District (No. 3); Series 2022 A-1, RB(a)

      5.50%       12/01/2029        5,000      5,361,650

Talladega (County of), AL; Series 2002 D, TAC (INS - NATL)(d)

      5.25%       01/01/2029        25      25,039

Tuscaloosa (County of), AL Industrial Development Authority (Hunt Refining);

           

Series 2019 A, Ref. IDR(e)

      4.50%       05/01/2032        7,691      6,910,900

Series 2019 A, Ref. IDR(e)

      5.25%       05/01/2044        1,000      867,590
                               34,977,947

American Samoa–0.07%

           

American Samoa (Territory of) Economic Development Authority; Series 2015 A,
Ref. RB

      6.25%       09/01/2029        1,000      1,041,201

Arizona–3.37%

           

Arizona (State of) Industrial Development Authority (Academies of Math & Science);

           

Series 2017 A, Ref. RB

      5.00%       07/01/2030        495      518,860

Series 2017 A, Ref. RB

      5.00%       07/01/2031        515      538,938

Series 2017 A, Ref. RB

      5.00%       07/01/2032        545      569,277

Series 2017 A, Ref. RB

      5.00%       07/01/2033        575      599,186

Arizona (State of) Industrial Development Authority (ACCEL Schools); Series 2018 A, RB(e)

      5.00%       08/01/2033        1,955      1,888,706

Arizona (State of) Industrial Development Authority (American Charter Schools Foundation);

           

Series 2017, Ref. RB(e)

      6.00%       07/01/2037        3,440      3,538,489

Series 2017, Ref. RB(e)

      6.00%       07/01/2047        1,385      1,405,359

Arizona (State of) Industrial Development Authority (Basis Schools); Series 2017 A, Ref. RB(e)

      5.00%       07/01/2026        410      411,595

Arizona (State of) Industrial Development Authority (Doral Academy of Northern Nevada); Series 2021 A, Ref. RB(e)

      4.00%       07/15/2041        530      433,976

Arizona (State of) Industrial Development Authority (Leman Academy-Parker Colorado);

           

Series 2019, RB(e)

      4.50%       07/01/2029        765      730,417

Series 2019, RB(e)

      5.00%       07/01/2039        2,135      1,975,217

Arizona (State of) Industrial Development Authority (Linder Village); Series 2020, RB(e)

      5.00%       06/01/2031        2,505      2,488,907

Arizona (State of) Industrial Development Authority (Mater Academy of Nevada Mountain Vista Campus Project); Series 2018 A, RB(e)

      4.75%       12/15/2028        1,440      1,443,098

Arizona (State of) Industrial Development Authority (Pinecrest Academy of Nevada-Horizon, Inspirada and St. Rose Campus Projects); Series 2018 A, RB(e)

      5.00%       07/15/2028        865      872,532

Arizona (State of) Industrial Development Authority (Pinecrest Academy of Northern Nevada); Series 2022 A, RB(e)

      4.50%       07/15/2029        2,970      2,845,898

Arizona (State of) Industrial Development Authority (Somerset Academy of Las Vegas - Lone Mountain Campus);

           

Series 2019 A, IDR(e)

      5.00%       12/15/2039        400      382,027

Series 2019 A, IDR(e)

      5.00%       12/15/2049        700      632,165

Chandler (City of) Industrial Development Authority (Intel Corp.); Series 2022, RB(a)(f)

      5.00%       09/01/2027        2,000      2,069,052

Glendale (City of), AZ Industrial Development Authority (Terraces of Phoenix);

           

Series 2018 A, Ref. RB

      3.60%       07/01/2023        155      154,067

Series 2018 A, Ref. RB

      5.00%       07/01/2038        320      278,316

Greater Arizona Development Authority; Series 2007 A, RB (INS - NATL)(d)

      4.38%       08/01/2032        5      5,006

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

4                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

Arizona–(continued)

           

Maricopa (County of), AZ Industrial Development Authority (Benjamin Franklin Charter School); Series 2018, RB(e)

      4.80%       07/01/2028      $ 1,600      $       1,610,737

Phoenix (City of), AZ Industrial Development Authority (Basis Schools); Series 2016 A, Ref. RB(e)

      5.00%       07/01/2035        2,900      2,879,490

Phoenix (City of), AZ Industrial Development Authority (Legacy Traditional Schools); Series 2015, Ref. RB(e)

      5.00%       07/01/2035        2,820      2,809,538

Pima (County of), AZ Industrial Development Authority (American Leadership Academy);

           

Series 2015, Ref. RB(e)

      4.60%       06/15/2025        930      927,746

Series 2015, Ref. RB(e)

      5.38%       06/15/2035        3,370      3,395,263

Series 2019, Ref. RB(e)

      5.00%       06/15/2034        730      730,101

Series 2022, Ref. RB(e)

      4.00%       06/15/2031        545      509,418

Pima (County of), AZ Industrial Development Authority (Arizona Charter Schools Ref.); Series 2013 Q, Ref. RB

      5.38%       07/01/2031        4,860      4,755,987

Pima (County of), AZ Industrial Development Authority (Career Success Schools); Series 2020, Ref. RB(e)

      4.75%       05/01/2030        1,925      1,843,620

Pima (County of), AZ Industrial Development Authority (Excalibur Charter School (The)); Series 2016, Ref. RB(e)

      5.00%       09/01/2026        230      228,401

Pima (County of), AZ Industrial Development Authority (Grande Innovations Academy); Series 2018, RB(e)

      4.13%       07/01/2026        1,000      967,748

Pima (County of), AZ Industrial Development Authority (Imagine East Mesa Charter Schools);

           

Series 2019, RB(e)

      5.00%       07/01/2029        300      301,623

Series 2019, RB(e)

      5.00%       07/01/2034        400      398,262

Series 2019, RB(e)

      5.00%       07/01/2039        500      478,963

Pima (County of), AZ Industrial Development Authority (Paideia Academies (The)); Series 2019, RB

      4.13%       07/01/2029        175      163,963

Tempe (City of), AZ Industrial Development Authority (Friendship Village of Tempe);

           

Series 2021 A, Ref. RB

      4.00%       12/01/2029        380      352,869

Series 2021 A, Ref. RB

      4.00%       12/01/2030        495      453,921

Series 2021 A, Ref. RB

      4.00%       12/01/2031        465      420,964

Tempe (City of), AZ Industrial Development Authority (Mirabella at ASU); Series 2017 A, RB(e)

      6.13%       10/01/2052        300      227,666
                               47,237,368

Arkansas–1.05%

           

Arkansas (State of) Development Finance Authority (Big River Steel); Series 2020,
RB(e)(f)

      4.75%       09/01/2049        7,370      6,816,143

Arkansas (State of) Development Finance Authority (Green Bonds); Series 2022, RB(e)(f)

      5.45%       09/01/2052        8,000      7,884,514
                               14,700,657

California–7.05%

           

California (State of);

           

Series 1996, GO Bonds (INS - FGIC)(d)

      5.38%       06/01/2026        1,885      1,896,733

Series 2020, GO Bonds

      4.00%       03/01/2046        2,500      2,443,095

Series 2021, GO Bonds

      3.00%       12/01/2046        2,000      1,572,424

California (State of) Community Choice Financing Authority (Green Bonds);

           

Series 2022 A-1, RB(a)

      4.00%       08/01/2028        21,065      21,045,294

Series 2023, RB(a)

      5.00%       08/01/2029        2,500      2,623,755

California (State of) County Tobacco Securitization Agency (Alameda County Tobacco Asset Securitization Corp.); Series 2002, RB

      6.00%       06/01/2042        135      137,233

California (State of) County Tobacco Securitization Agency (Stanislaus County Tobacco Funding Corp.); Series 2002 A, RB

      5.88%       06/01/2043        1,555      1,555,043

California (State of) Municipal Finance Authority (Bella Mente Montessori Academy);

           

Series 2018 A, RB(e)

      5.00%       06/01/2028        825      817,441

Series 2018 A, RB(e)

      5.00%       06/01/2038        845      798,363

California (State of) Municipal Finance Authority (Palomar Health);

           

Series 2022 A, Ref. COP (INS - AGM)(d)

      5.25%       11/01/2035        1,200      1,326,359

Series 2022 A, Ref. COP (INS - AGM)(d)

      5.25%       11/01/2036        1,250      1,362,016

California (State of) Municipal Finance Authority (United Airlines, Inc.); Series 2019, RB(f)

      4.00%       07/15/2029        7,000      6,706,520

California (State of) Municipal Finance Authority (Waste Management, Inc.);
Series 2022 A, RB(a)(f)

      4.13%       10/01/2025        4,000      4,008,203

California (State of) Pollution Control Financing Authority;

           

Series 2012, RB(e)(f)

      5.00%       07/01/2037        2,000      2,005,116

Series 2012, RB(e)(f)

      5.00%       11/21/2045        4,230      4,234,972

California (State of) Pollution Control Financing Authority (Aemerge Redpak Services Southern California LLC); Series 2016, RB (Acquired 01/22/2016-09/25/2017; Cost $707,500)(b)(c)(e)(f)

      7.00%       12/01/2027        710      71,000

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

5                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

California–(continued)

           

California (State of) Pollution Control Financing Authority (CalPlant I) (Green Bonds);

           

Series 2017, RB(b)(e)(f)

      7.50%       07/01/2032      $   4,950      $          247,500

Series 2020, RB (Acquired 10/06/2020; Cost $955,203)(b)(c)(e)(f)

      7.50%       07/01/2032        1,000      130,000

California (State of) Public Finance Authority (California University of Science and Medicine); Series 2019 A, RB(e)

      6.25%       07/01/2054        4,100      4,351,254

California (State of) Public Finance Authority (Enso Village) (Green Bonds);

           

Series 2021, RB(e)

      2.38%       11/15/2028        510      472,293

Series 2021, RB(e)

      3.13%       05/15/2029        2,000      1,763,729

California (State of) Public Finance Authority (Excelsior Charter Schools); Series 2020 A, RB(e)

      5.00%       06/15/2040        1,060      993,402

California (State of) Public Finance Authority (Trinity Classical Academy); Series 2019 B, RB(e)

      5.00%       07/01/2026        250      240,261

California (State of) School Finance Authority (New Designs Charter School); Series 2012 A, RB

      5.25%       06/01/2032        1,000      1,000,457

California (State of) School Finance Authority (Sonoma County Junior College); Series 2021, RB(e)

      4.00%       11/01/2031        1,000      932,329

California (State of) School Finance Authority (TEACH Public Schools);

           

Series 2019 A, RB(e)

      5.00%       06/01/2029        275      278,264

Series 2019 A, RB(e)

      5.00%       06/01/2039        740      731,029

California (State of) Statewide Communities Development Authority (Eskaton Properties, Inc.); Series 2012, RB

      5.25%       11/15/2034        6,250      6,249,663

California (State of) Statewide Communities Development Authority (Lancer Educational Student Housing); Series 2016, Ref. RB(e)

      4.00%       06/01/2026        410      399,861

California (State of) Statewide Communities Development Authority (Loma Linda University Medical Center);

           

Series 2014, RB

      5.25%       12/01/2034        500      509,057

Series 2014, RB

      5.50%       12/01/2054        5,000      4,955,907

California (State of) Statewide Communities Development Authority (NCCD-Hooper Street LLC-California College of the Arts); Series 2019, RB(e)

      5.00%       07/01/2029        900      874,743

Golden State Tobacco Securitization Corp.; Series 2017 A-1, Ref. RB(a)(g)

      5.00%       06/01/2027        145      158,255

Irvine Unified School District (Community Facilities District No. 09-1); Series 2017 B, RB

      5.00%       09/01/2033        225      235,375

North City (City of), CA West School Facilities Financing Authority; Series 2012 A, RB (INS - AGM)(d)

      5.00%       09/01/2026        605      605,841

Sacramento (County of), CA (Juvenile Courthouse); Series 2003, COP (INS - AMBAC)(d)

      5.00%       12/01/2034        5,405      5,414,878

Sacramento (County of), CA (Metro Air Park Community);

           

Series 2022, Ref. RB

      5.00%       09/01/2029        2,000      2,115,608

Series 2022, Ref. RB

      5.00%       09/01/2030        2,000      2,124,393

West Covina (City of), CA Public Financing Authority (Big League Dreams); Series 2006 A, RB

      5.00%       06/01/2030        2,935      2,940,191

Whittier (City of), CA (Presbyterian Intercommunity Hospital, Inc.); Series 2014, RB

      5.00%       06/01/2044        8,395      8,447,749
                               98,775,606

Colorado–6.74%

           

3rd and Havana Metropolitan District; Series 2020 A, GO Bonds

      4.50%       12/01/2030        2,490      2,275,511

Amber Creek Metropolitan District; Series 2017 A, Ref. GO Bonds

      5.00%       12/01/2037        713      671,321

Arista Metropolitan District;

           

Series 2018 A, Ref. GO Bonds

      4.38%       12/01/2028        1,000      948,909

Series 2018 A, Ref. GO Bonds

      5.00%       12/01/2038        1,240      1,187,688

Baseline Metropolitan District No. 1;

           

Seires 2018 A-2, RB

      5.13%       12/01/2028        1,500      1,518,843

Seires 2018 A-2, RB

      5.50%       12/01/2034        1,000      1,016,134

Brighton Crossing Metropolitan District No. 6;

           

Series 2020 A, GO Bonds

      5.00%       12/01/2035        530      501,346

Series 2020 A, GO Bonds

      5.00%       12/01/2040        515      468,199

Canyon Pines Metropolitan District; Series 2022 A, GO Bonds(h)

      0.00%       12/01/2027        8,770      6,045,961

Canyons Metropolitan District No. 5; Series 2016, GO Bonds

      7.00%       12/15/2057        1,500      1,017,895

Centerra Metropolitan District No. 1 (In the City of Loveland); Series 2020 A, Ref. GO Bonds

      4.00%       12/01/2029        1,115      1,032,399

Clear Creek Station Metropolitan District No. 2; Series 2017 A, Ref. GO Bonds

      4.38%       12/01/2032        738      687,313

Clear Creek Transit Metropolitan District No. 2; Series 2021 A, GO Bonds

      5.00%       12/01/2041        1,100      992,936

Colliers Hill Metropolitan District No. 2; Series 2022 B-2, GO Bonds

      7.63%       12/15/2042        2,000      1,810,450

Colorado (State of) Health Facilities Authority (Aberdeen Ridge);

           

Series 2021 A, RB

      5.00%       05/15/2035        5,205      4,597,794

Series 2021 B, RB

      2.63%       05/15/2029        1,125      1,006,799

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

6                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

Colorado–(continued)

           

Colorado (State of) Health Facilities Authority (CommonSpirit Health);

           

Series 2022, RB

      5.00%       11/01/2027      $ 600      $          638,982

Series 2022, RB

      5.00%       11/01/2028        500      540,829

Series 2022, RB

      5.00%       11/01/2029        900      982,442

Colorado (State of) Health Facilities Authority (Frasier Meadows Retirement Community);

           

Series 2017 A, Ref. RB

      5.00%       05/15/2025        525      525,177

Series 2017 A, Ref. RB

      5.00%       05/15/2026        475      474,548

Colorado (State of) Health Facilities Authority (Ralston Creek at Arvada); Series 2017 B, RB

      4.00%       11/01/2027        4,200      3,714,781

Colorado (State of) Health Facilities Authority (Sunny Vista Living Center); Series 2015 A, Ref. RB(e)

      5.00%       12/01/2025        105      95,163

Colorado (State of) Health Facilities Authority (Volunteers of America Care); Series 2007 A, RB

      5.30%       07/01/2037        1,285      1,019,979

Colorado (State of) International Center Metropolitan District No. 14; Series 2018, GO Bonds

      5.63%       12/01/2032        1,000      988,385

Colorado (State of) Science and Technology Park Metropolitan District No. 1; Series 2018, RB

      5.00%       12/01/2033        1,000      981,538

Copper Ridge Metropolitan District; Series 2019, RB

      4.00%       12/01/2029        2,739      2,505,468

Copperleaf Metropolitan District No. 6; Series 2022 B, GO Bonds

      6.00%       12/15/2041        1,225      1,164,298

Denver (City & County of), CO Health & Hospital Authority (550 Acoma, Inc.);

           

Series 2018, COP

      5.00%       12/01/2028        310      330,574

Series 2018, COP

      5.00%       12/01/2029        500      529,960

Series 2018, COP

      5.00%       12/01/2030        350      371,130

Series 2018, COP

      5.00%       12/01/2031        375      396,794

Series 2018, COP

      5.00%       12/01/2032        455      479,846

Denver Gateway Center Metropolitan District; Series 2018 A, GO Bonds

      5.50%       12/01/2038        1,369      1,339,266

Dominion Water & Sanitation District;

           

Series 2022, Ref. RB

      5.00%       12/01/2027        2,185      2,162,132

Series 2022, Ref. RB

      5.25%       12/01/2032        3,415      3,373,729

Elbert & Highway 86 Commercial Metropolitan District; Series 2021 A, Ref. GO Bonds(e)

      5.00%       12/01/2041        1,700      1,514,687

Frisco (Town of), CO (Marina Enterprise); Series 2019, RB

      5.00%       12/01/2036        600      602,916

Granby Ranch Metropolitan District; Series 2018, Ref. GO Bonds(e)

      4.88%       12/01/2028        675      655,382

Highlands Metropolitan District No. 1; Series 2021, GO Bonds

      4.00%       12/01/2031        1,190      1,056,351

Independence Water & Sanitation District; Series 2019, RB

      7.25%       12/01/2038        1,254      1,259,188

Jefferson (County of), CO Center Metropolitan District No. 1; Series 2020 B, Ref. RB

      5.75%       12/15/2050        5,499      5,239,994

Kinston Metropolitan District No. 5; Series 2020 A, GO Bonds

      4.63%       12/01/2035        1,000      854,620

Mirabelle Metropolitan District No. 2; Series 2020 A, GO Bonds

      5.00%       12/01/2039        700      658,172

Morgan Hill Metropolitan District No. 3;

           

Series 2021 A, GO Bonds

      3.00%       12/01/2031        980      786,599

Series 2021 A, GO Bonds

      3.50%       12/01/2041        2,940      2,177,060

Mulberry Metropolitan District No. 2; Series 2022, RB

      7.00%       12/01/2034        6,000      6,082,107

Neu Town Metropolitan District; Series 2018 A, Ref. GO Bonds

      5.13%       12/01/2031        1,445      1,412,224

Nexus North at DIA Metropolitan District; Series 2021, GO Bonds

      5.00%       12/01/2041        520      469,388

Nine Mile Metropolitan District; Series 2020, RB

      4.63%       12/01/2030        2,265      2,128,898

Painted Prairie Metropolitain District No. 2; Series 2018, GO Bonds

      5.25%       12/01/2048        2,250      2,068,510

Peak Metropolitan District No. 1; Series 2021 A, GO Bonds(e)

      4.00%       12/01/2035        540      454,532

Plaza Metropolitan District No. 1; Series 2013, Ref. RB(e)

      5.00%       12/01/2040        1,465      1,377,638

Prairie Center Metropolitan District No. 7; Series 2021, GO Bonds

      6.38%       06/15/2046        1,330      1,197,465

Rampart Range Metropolitan District No. 5; Series 2021, RB

      4.00%       12/01/2036        1,250      1,041,071

Riverwalk Metropolitan District No. 2; Series 2022 A, RB

      4.50%       12/01/2032        4,000      3,576,810

Rocky Mountain Rail Park Metropolitan District;

           

Series 2021 A, GO Bonds(e)

      5.00%       12/01/2031        1,945      1,839,888

Series 2021 A, GO Bonds(e)

      5.00%       12/01/2041        2,000      1,712,187

Thompson Crossing Metropolitan District No. 4; Series 2019, Ref. GO Bonds

      3.50%       12/01/2029        515      462,957

Transport Metropolitan District No. 3; Series 2021 A-1, GO Bonds

      5.00%       12/01/2041        2,700      2,387,209

Vauxmont Metropolitan District; Series 2019, Ref. GO Bonds (INS - AGM)(d)

      3.25%       12/15/2050        822      647,604

Verve Metropolitan District No. 1; Series 2023, GO Bonds

      5.75%       12/01/2033        2,895      2,722,208

Villages at Castle Rock Metropolitan District No. 6; Series 2021 B, Ref. GO Bonds(e)

      5.70%       12/01/2051        166      146,336

Westerly Metropolitan District No. 4;

           

Series 2021 A, GO Bonds

      4.13%       12/01/2031        615      543,902

Series 2021 A, GO Bonds

      5.00%       12/01/2040        1,000      913,118
                               94,383,540

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

7                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

Connecticut–0.24%

           

Hamden (Town of), CT (Whitney Center); Series 2019, Ref. RB

      5.00%       01/01/2030      $ 3,480      $       3,379,837

Delaware–0.16%

           

Millsboro (Town of), DE (Plantation Lakes Special Development District); Series 2018, Ref. RB(e)

      5.00%       07/01/2028        2,249      2,254,163

District of Columbia–3.20%

           

District of Columbia; Series 2013, RB

      5.00%       10/01/2035        1,285      1,264,107

District of Columbia (Ingleside at Rock Creek);

           

Series 2017 A, RB

      4.13%       07/01/2027        1,160      1,119,841

Series 2017 A, RB

      5.00%       07/01/2032        1,500      1,470,340

District of Columbia Tobacco Settlement Financing Corp.;

           

Series 2001, RB

      6.50%       05/15/2033        5,785      5,917,899

Series 2001, RB

      6.75%       05/15/2040        24,435      25,155,345

Metropolitan Washington Airports Authority; Series 2015 B, Ref. RB(f)

      5.00%       10/01/2032        9,575      9,879,468
                               44,807,000

Florida–5.07%

           

Alachua (County of), FL Health Facilities Authority (East Ridge Retirement Village, Inc.);

           

Series 2014, RB (Acquired 12/04/2020; Cost $185,398)(c)

      5.63%       11/15/2029        185      156,224

Series 2014, RB (Acquired 06/04/2020; Cost $861,250)(c)

      6.00%       11/15/2029        1,000      849,607

Series 2014, RB (Acquired 01/17/2020; Cost $1,408,850)(c)

      6.00%       11/15/2034        1,500      1,158,139

Alachua (County of), FL Health Facilities Authority (Terraces at Bonita Springs);

           

Series 2022 A, Ref. RB(e)

      5.00%       11/15/2061        965      646,367

Series 2022 B, RB(e)

      6.50%       11/15/2033        100      87,233

Amelia Concourse Community Development District; Series 2019 B-1, RB

      5.25%       05/01/2029        70      71,142

Broward (County of), FL; Series 2015 A, RB(f)

      5.00%       10/01/2045        10,000      10,084,345

Broward (County of), FL Housing Finance Authority (Golden Villas); Series 2008 B, RB(a)(f)

      6.75%       04/01/2025        40      40,108

Cape Coral (City of), FL Health Facilities Authority (Gulf Care, Inc.); Series 2015, Ref. RB(e)

      5.88%       07/01/2040        250      226,402

Capital Trust Agency, Inc. (Elim Senior Housing, Inc.); Series 2017, RB(e)

      5.38%       08/01/2032        1,000      835,014

Capital Trust Agency, Inc. (Franklin Academy); Series 2020, RB(e)

      5.00%       12/15/2035        1,085      1,030,783

Capital Trust Agency, Inc. (H-Bay Ministries, Inc.- Superior Residences);

           

Series 2018 B, RB(b)

      4.00%       07/01/2028        750      75,000

Series 2018 B, RB(b)

      4.25%       07/01/2033        625      62,500

Capital Trust Agency, Inc. (Imagine School at North Manatee);

           

Series 2021 C, RB(e)

      5.00%       06/01/2041        465      419,538

Series 2021, RB(e)

      3.25%       06/01/2031        230      196,456

Series 2021, RB(e)

      5.00%       06/01/2041        1,295      1,168,390

Capital Trust Agency, Inc. (Sarasota-Manatee Jewish Housing Council, Inc.); Series 2017, Ref. RB(e)

      5.00%       07/01/2027        1,000      961,537

Capital Trust Agency, Inc. (Sustainability Bonds); Series 2021, RB(e)

      4.00%       06/15/2031        700      635,177

Capital Trust Agency, Inc. (University Bridge LLC Student Housing);

           

Series 2018 A, RB(e)

      4.00%       12/01/2028        6,310      5,857,382

Series 2018 A, RB(e)

      5.25%       12/01/2043        2,500      2,360,997

Charlotte (County of), FL Industrial Development Authority (Town & Country Utilities);

           

Series 2019, RB(e)(f)

      5.00%       10/01/2029        895      904,073

Series 2021, RB(e)(f)

      4.00%       10/01/2041        1,800      1,457,869

Florida Development Finance Corp.; Series 2021, RB(e)

      3.00%       07/01/2031        325      290,173

Florida Development Finance Corp. (Brightline Fllorida Passenger Rail Expansion); Series 2022 A, Ref. RB(a)(e)(f)

      7.25%       10/03/2023        3,000      3,009,590

Florida Development Finance Corp. (IPS Florida LLC-Idea); Series 2022, RB(e)

      5.25%       06/15/2029        1,000      990,959

Florida Development Finance Corp. (Renaissance Charter School, Inc.);

           

Series 2020 C, Ref. RB(e)

      4.00%       09/15/2030        470      420,524

Series 2020 C, Ref. RB(e)

      5.00%       09/15/2040        400      346,028

Florida Development Finance Corp. (River City Science Academy);

           

Series 2022, RB

      4.00%       07/01/2031        345      336,060

Series 2022, RB

      5.00%       07/01/2042        435      435,648

Florida Development Finance Corp. (Virgin Trains USA Passenger Rail);

           

Series 2019 A, Ref. RB(a)(e)(f)

      6.25%       01/01/2024        3,405      3,311,512

Series 2019 A, Ref. RB(a)(e)(f)

      6.38%       01/01/2026        5,000      4,644,756

Florida Housing Finance Corp.; Series 2015 A, RB (CEP - GNMA)

      3.65%       07/01/2041        1,140      1,128,048

Lake (County of), FL (Lakeside at Waterman Village); Series 2020 A, Ref. RB

      5.50%       08/15/2030        3,805      3,680,801

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

8                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

Florida–(continued)

           

Lake Helen (City of), FL (Ivy Hawn Charter School of the Arts);

           

Series 2018 A, RB(e)

      5.00%       07/15/2028      $ 480      $          469,049

Series 2018 A, RB(e)

      5.38%       07/15/2038        1,300      1,188,573

Miami-Dade (County of), FL;

           

Series 2014, Ref. RB(f)

      5.00%       10/01/2031        3,000      3,039,968

Series 2014, Ref. RB(f)

      5.00%       10/01/2032        5,000      5,064,546

Palm Beach (County of), FL Health Facilities Authority (ACTS Retirement-Life Communities, Inc.); Series 2016, Ref. RB

      5.00%       11/15/2032        3,000      3,043,284

Palm Beach (County of), FL Health Facilities Authority (Harbour’s Edge); Series 2004 A, RB

      6.00%       11/15/2024        10      10,006

Palm Beach (County of), FL Health Facilities Authority (Toby & Leon Cooperman Sinai Residences of Boca Raton Expanison);

           

Series 2022, Ref. RB

      4.00%       06/01/2031        1,250      1,151,934

Series 2022, Ref. RB

      4.00%       06/01/2036        2,000      1,721,941

Pembroke Harbor Community Development District; Series 2008 A, RB

      7.00%       05/01/2038        1,060      1,061,748

Pinellas (County of), FL Industrial Development Authority (2017 Foundation for Global Understanding); Series 2019, RB

      5.00%       07/01/2029        1,620      1,635,073

Polk (County of), FL Industrial Development Authority (Carpenter’s Home Estates);

           

Series 2019, Ref. IDR

      5.00%       01/01/2039        300      275,626

Series 2019, Ref. IDR

      5.00%       01/01/2049        1,750      1,511,274

Polk (County of), FL Industrial Development Authority (Mineral Development LLC); Series 2020, RB(e)(f)

      5.88%       01/01/2033        3,000      3,011,938
                               71,063,342

Georgia–1.38%

           

Albany (City of) & Dougherty (Country of), GA Payroll Development Authority (Procter & Gamble Paper Products Co. (The)); Series 1998, RB(f)

      5.30%       05/15/2026        810      811,435

Burke (County of), GA Development Authority (Oglethorpe Power Corp.); Series 2017 E, RB(a)

      3.25%       02/03/2025        3,000      2,956,635

Floyd (County of), GA Development Authority (The Spires at Berry College); Series 2018 A, RB

      5.50%       12/01/2028        1,900      1,860,506

George L Smith II Congress Center Authority (Convention Center Hotel); Series 2021, RB(e)

      3.63%       01/01/2031        2,750      2,381,045

Georgia Municipal Association, Inc.; Series 1998, COP (INS - AGM)(d)

      5.00%       12/01/2023        5      5,008

Macon-Bibb (County of), GA Housing Authority (Green Meadows Apartments); Series 2021 B, RB(a)

      4.50%       05/01/2023        4,250      4,247,837

Macon-Bibb (County of), GA Urban Development Authority (Academy for Classical Education, Inc.); Series 2017 A, RB(e)

      5.00%       06/15/2027        390      388,337

Marietta (City of), GA Developing Authority (Life University, Inc.);

           

Series 2017 A, Ref. RB(e)

      5.00%       11/01/2023        2,280      2,287,087

Series 2017 A, Ref. RB(e)

      5.00%       11/01/2037        2,000      1,931,311

Oconee (County of), GA Industrial Development Authority (Presbyterian Village Athens); Series 2018 A-1, RB

      5.75%       12/01/2028        2,630      2,530,262
                               19,399,463

Guam–0.52%

           

Guam (Territory of); Series 2015 D, Ref. RB

      5.00%       11/15/2033        3,000      3,061,639

Guam (Territory of) Department of Education (John F. Kennedy);

           

Series 2020, Ref. COP

      4.25%       02/01/2030        1,500      1,484,478

Series 2020, Ref. COP

      5.00%       02/01/2040        2,750      2,726,541
                               7,272,658

Idaho–0.34%

           

Idaho (State of) Health Facilities Authority (Valley Vista Care Corp.); Series 2017 A, Ref. RB

      4.00%       11/15/2027        1,015      985,464

Idaho (State of) Housing & Finance Association (Compass Public Charter School, Inc.); Series 2018 A, RB(e)

      4.63%       07/01/2029        170      171,574

Idaho (State of) Housing & Finance Association (Future Public School); Series 2022 A, RB(e)

      4.00%       05/01/2042        2,280      1,824,631

Idaho (State of) Housing & Finance Association (North Star Charter School);

           

Series 2014 A, Ref. RB

      6.75%       07/01/2036        526      552,288

Series 2014 A, Ref. RB

      6.75%       07/01/2048        1,061      1,109,906

Power County Industrial Development Corp. (FMC Corp.); Series 1999, RB(f)

      6.45%       08/01/2032        130      130,461
                               4,774,324

Illinois–8.66%

           

Aurora (City of), IL (East River Area TIF No. 6); Series 2018 A, Ref. RB

      5.00%       12/30/2027        820      797,687

Aurora (City of), IL (River City TIF No. 3); Series 2018 B, Ref. RB

      4.50%       12/30/2023        420      417,085

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

9                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

Illinois–(continued)

           

Bartlett (Village of), IL (Quarry Redevelopment); Series 2016, Ref. RB

      4.00%       01/01/2024      $ 475      $471,315

Berwyn (City of), IL (South Berwyn Corridor); Series 2020, RB(e)

      4.00%       12/01/2028        1,440      1,340,294

Bradley (Village of), IL (Bradley Commons);

           

Series 2018 A, Ref. RB

      5.00%       01/01/2024        455      455,171

Series 2018 A, Ref. RB

      5.00%       01/01/2025        485      484,585

Series 2018 A, Ref. RB

      5.00%       01/01/2026        505      502,861

Series 2018 A, Ref. RB

      5.00%       01/01/2027        530      526,867

Chicago (City of), IL;

           

Series 2014 A, Ref. GO Bonds

      5.00%       01/01/2035        11,270      11,291,452

Series 2014, RB (INS - BAM)(d)

      5.00%       01/01/2039        2,000      2,011,937

Series 2017 A, Ref. GO Bonds

      5.63%       01/01/2029        1,000      1,044,927

Series 2017 A, Ref. GO Bonds

      5.75%       01/01/2034        1,500      1,568,304

Chicago (City of), IL (Hearts United Apartments); Series 1999 A, RB (CEP - GNMA)(f)

      5.60%       01/01/2041        70      70,362

Chicago (City of), IL (Lakeshore East);

           

Series 2022, Ref. RB(e)

      2.87%       12/01/2027        255      237,022

Series 2022, Ref. RB(e)

      3.04%       12/01/2028        270      248,294

Series 2022, Ref. RB(e)

      3.20%       12/01/2029        325      296,374

Series 2022, Ref. RB(e)

      3.29%       12/01/2030        342      310,730

Series 2022, Ref. RB(e)

      3.38%       12/01/2031        375      338,477

Series 2022, Ref. RB(e)

      3.45%       12/01/2032        300      269,527

Chicago (City of), IL (O’Hare International Airport);

           

Series 2015 C, RB(f)

      5.00%       01/01/2046        8,000      7,973,761

Series 2017 D, RB

      5.25%       01/01/2029        1,500      1,626,840

Series 2017 D, RB

      5.25%       01/01/2030        3,000      3,245,111

Series 2017 G, RB(f)

      5.25%       01/01/2028        250      262,956

Series 2017 G, RB(f)

      5.25%       01/01/2029        350      369,058

Series 2017 G, RB(f)

      5.25%       01/01/2030        400      422,136

Series 2017 G, RB(f)

      5.25%       01/01/2031        350      369,468

Chicago (City of), IL Board of Education;

           

Series 1998 B-1, GO Bonds (INS - NATL)(d)(h)

      0.00%       12/01/2025        1,000      895,075

Series 2012 A, GO Bonds

      5.00%       12/01/2042        15,000      14,171,195

Series 2017 C, Ref. GO Bonds

      5.00%       12/01/2024        1,000      1,013,937

Series 2018 C, Ref. GO Bonds

      5.00%       12/01/2023        2,000      2,014,162

Series 2018 C, Ref. GO Bonds

      5.00%       12/01/2026        2,000      2,053,007

Evanston (City of), IL (Roycemore School);

           

Series 2021, RB(e)

      4.00%       04/01/2032        245      204,367

Series 2021, RB(e)

      4.38%       04/01/2041        830      623,021

Hillside (Village of), IL (Mannheim Redevelopment);

           

Series 2018, Ref. RB

      5.00%       01/01/2024        335      335,977

Series 2018, Ref. RB

      5.00%       01/01/2030        2,195      2,177,205

Illinois (State of);

           

First Series 2020, GO Bonds (INS - NATL)(d)(i)(j)

      6.00%       11/01/2026        3,500      3,667,988

Series 2013, GO Bonds

      5.50%       07/01/2033        1,500      1,507,502

Series 2017 D, GO Bonds

      5.00%       11/01/2025        4,000      4,112,825

Series 2020 A, GO Bonds(i)(j)

      6.00%       05/01/2025        2,500      2,608,756

Series 2020, GO Bonds

      5.38%       05/01/2023        1,000      1,002,325

Series 2020, GO Bonds

      5.50%       05/01/2030        2,000      2,193,000

Illinois (State of) Development Finance Authority (CITGO Petroleum Corp.); Series 2002, RB(f)

      8.00%       06/01/2032        11,805      11,814,876

Illinois (State of) Finance Authority; Series 2007, RB

      5.40%       04/01/2027        140      137,387

Illinois (State of) Finance Authority (Benedictine University);

           

Series 2017, Ref. RB

      5.00%       10/01/2030        1,000      1,016,315

Series 2017, Ref. RB

      5.00%       10/01/2033        1,000      1,015,159

Illinois (State of) Finance Authority (Intrinsic Schools - Belmont School); Series 2015, RB(e)

      5.25%       12/01/2025        255      259,450

Illinois (State of) Finance Authority (Lutheran Communities Obligated Group);

           

Series 2019 A, Ref. RB

      5.00%       11/01/2027        2,065      2,017,905

Series 2019 A, Ref. RB

      5.00%       11/01/2035        2,020      1,822,454

Illinois (State of) Finance Authority (Montgomery Place); Series 2017, Ref. RB (Acquired 04/12/2017; Cost $1,125,253)(c)

      5.00%       05/15/2024        1,115      1,098,103

Illinois (State of) Finance Authority (Park Place of Elmhurst); Series 2016, RB

      5.13%       05/15/2060        1,089      632,742

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

10                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  

Illinois–(continued)

           

Illinois (State of) Finance Authority (Peace Village); Series 2013, RB(g)

      5.25 %      08/15/2023      $ 160      $           161,319  

Illinois (State of) Finance Authority (Plymouth Place); Series 2015, Ref. RB(g)

      5.00 %      05/15/2025        160        163,401  

Illinois (State of) Finance Authority (Roosevelt University);

           

Series 2007, RB

      5.50 %      04/01/2037        2,000        1,859,011  

Series 2019 A, RB(e)

      6.13 %      04/01/2049        3,000        2,914,028  

Illinois (State of) Finance Authority (Rosalind Franklin University);

           

Series 2017, Ref. RB

      5.00 %      08/01/2027        425        439,578  

Series 2017, Ref. RB

      5.00 %      08/01/2028        500        517,802  

Series 2017, Ref. RB

      5.00 %      08/01/2029        325        336,519  

Series 2017, Ref. RB

      5.00 %      08/01/2030        380        393,031  

Series 2017, Ref. RB

      5.00 %      08/01/2031        375        387,335  

Series 2017, Ref. RB

      5.00 %      08/01/2033        470        483,313  

Illinois (State of) Finance Authority (Rush University Medical Center); Series 2015 A, Ref. RB

      5.00 %      11/15/2038        8,700        8,789,572  

Illinois (State of) Finance Authority (Three Crowns Park); Series 2017, Ref. RB

      4.00 %      02/15/2027        1,460        1,414,796  

Illinois (State of) Medical District Commission;

           

Series 2002, COP (INS - NATL)(d)

      5.13 %      06/01/2026        50        50,054  

Series 2002, COP (INS - NATL)(d)

      5.25 %      06/01/2032        140        140,105  

Illinois (State of) Metropolitan Pier & Exposition Authority (McCormick Place Expansion); Series 2022 B, RB

      5.00 %      12/15/2027        3,000        3,089,373  

Illinois (State of) Regional Transportation Authority; Series 2018 B, RB(j)

      5.00 %      06/01/2030        3,000        3,324,196  

Manhattan (Village of), IL Special Service Area No. 2004-1 (Brookstone Springs); Series 2015, Ref. RB

      4.25 %      03/01/2024        82        81,632  

Morton Grove (Village of), IL (Sawmill Station Redevelopment); Series 2019, RB

      4.25 %      01/01/2029        880        834,322  

Yorkville (United City of), IL (Raintree Village); Series 2013, Ref. RB

      4.60 %      03/01/2025        640        629,879  
                                 121,356,600  

Indiana–1.92%

           

Evansville (City of), IN (Silver Birch of Evansville); Series 2017, RB

      4.80 %      01/01/2028        300        274,461  

Indiana (State of) Finance Authority; Series 2022, Ref. RB(a)(f)

      4.50 %      11/15/2023        10,000        9,974,350  

Indiana (State of) Finance Authority (Irvington Community School); Series 2018 A, Ref. RB(e)

      5.50 %      07/01/2028        815        809,001  

Indiana (State of) Finance Authority (Ohio Valley Electrical Corp.);

           

Series 2012 A, RB

      4.25 %      11/01/2030        1,580        1,533,663  

Series 2012 B, RB

      3.00 %      11/01/2030        2,000        1,782,099  

Series 2012 C, RB

      3.00 %      11/01/2030        2,000        1,782,099  

Indiana (State of) Finance Authority (United States Steel Corp.); Series 2021 A,
Ref. RB

      4.13 %      12/01/2026        6,980        6,859,593  

Indiana (State of) Finance Authority (University of Evansville); Series 2022 A, Ref. RB

      5.25 %      09/01/2037        1,865        1,863,084  

Lake County 2000 Building Corp.; Series 2012, RB (CEP - Colorado Higher Education Intercept Program)

      5.00 %      02/01/2024        1,520        1,520,062  

Mishawaka (City of), IN (Silver Birch of Mishwaka); Series 2017, RB(e)

      5.10 %      01/01/2032        555        480,731  
                                 26,879,143  

Iowa–1.52%

           

Ackley (City of), IA (Grand Jivante); Series 2018 A, RB

      4.50 %      08/01/2033        600        491,902  

Clear Lake (City of), IA (Timbercrest Apartments, LLC); Series 2018, RB

      4.30 %      10/01/2028        660        614,239  

Iowa (State of) Finance Authority (Iowa Fertilizer Co.); Series 2022, Ref. RB(a)

      4.00 %      12/01/2032        9,000        8,835,580  

Iowa (State of) Finance Authority (PHS Council Bluffs, Inc.);

           

Series 2018, RB

      4.45 %      08/01/2028        625        575,584  

Series 2018, RB

      5.00 %      08/01/2033        500        446,650  

PEFA, Inc.; Series 2019, RB(a)

      5.00 %      09/01/2026        10,000        10,293,209  
                                 21,257,164  

Kansas–1.00%

           

Lenexa (City of), KS (Lakeview Village, Inc.); Series 2018 A, Ref. RB

      5.00 %      05/15/2027        1,440        1,448,564  

Pittsburgh (City of), KS (North Broadway - Pittsburgh Town Center); Series 2006, RB

      4.80 %      04/01/2027        240        194,412  

University of Kansas Hospital Authority; Series 2015, Ref. RB

      5.00 %      09/01/2034        5,000        5,205,623  

Wichita (City of), KS (Kansas Masonic Home);

           

Series 2016 II-A, RB (Acquired 05/01/2017; Cost $ 499,162)(c)

      4.25 %      12/01/2024        500        115,000  

Series 2016 II-A, RB (Acquired 06/24/2016-11/06/2019; Cost $1,849,794)(c)

      5.00 %      12/01/2031        1,800        414,000  

Series 2016 II-A, RB (Acquired 06/24/2016-02/20/2018; Cost $1,014,014)(c)

      5.25 %      12/01/2036        1,000        230,000  

Wichita (City of), KS (Larksfield Place); Series 2013 III, Ref. RB(a)(g)

      7.13 %      12/15/2023        1,000        1,029,004  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

11                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  

Kansas–(continued)

           

Wichita (City of), KS (Presbyterian Manors, Inc.);

           

Series 2018 I, Ref. RB

      5.00 %      05/15/2028      $ 935      $           907,034  

Series 2018 I, Ref. RB

      5.00 %      05/15/2033        500        469,110  

Series 2019, Ref. RB

      4.00 %      05/15/2023        655        653,368  

Series 2019, Ref. RB

      5.00 %      05/15/2026        1,110        1,096,370  

Series 2019, Ref. RB

      5.00 %      05/15/2027        1,165        1,140,323  

Series 2019, Ref. RB

      5.00 %      05/15/2028        1,220        1,183,510  
                                 14,086,318  

Kentucky–0.60%

           

Ashland (City of), KY (King’s Daughters Medical Center); Series 2016 A, Ref. RB

      5.00 %      02/01/2029        1,000        1,033,477  

Christian (County of), KY (Jennie Stuart Medical Center, Inc.);

           

Series 2016, Ref. RB

      5.00 %      02/01/2026        470        480,832  

Series 2016, Ref. RB

      5.50 %      02/01/2044        2,170        2,205,405  

Henderson (City of), KY (Pratt Paper LLC); Series 2022 B, RB(e)(f)

      3.70 %      01/01/2032        2,500        2,433,665  

Kentucky (Commonwealth of) Economic Development Finance Authority (Christian Care Communities); Series 2021, Ref. RB

      4.25 %      07/01/2031        1,000        869,797  

Kentucky (Commonwealth of) Economic Development Finance Authority (Next Generation Kentucky Information Highway); Series 2015 A, RB

      5.00 %      07/01/2032        1,000        1,013,840  

Kentucky (Commonwealth of) Economic Development Finance Authority (Rosedale Green); Series 2015, Ref. RB

      5.00 %      11/15/2025        380        370,061  
                                 8,407,077  

Louisiana–2.06%

           

Calcasieu Parish Industrial Development Board, Inc. (Citgo Petroleum Corp.); Series 1993, RB(f)

      6.00 %      07/01/2023        70        70,054  

Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Livingston (Parish of), LA Gomesha) (Green Bonds); Series 2018, RB(e)

      5.38 %      11/01/2038        4,095        4,253,463  

Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Vermilion (Parish of), LA Gomesha) (Green Bonds); Series 2019, RB(e)

      4.63 %      11/01/2038        1,825        1,828,048  

Louisiana (State of) Public Facilities Authority (Encore Academy);

           

Series 2021, RB(e)

      5.00 %      06/01/2031        815        715,478  

Series 2021, RB(e)

      5.00 %      06/01/2041        1,640        1,233,133  

New Orleans (City of), LA Aviation Board; Series 2015 B, RB(f)

      5.00 %      01/01/2040        7,700        7,776,519  

New Orleans (City of), LA Aviation Board (Parking Facilities Corp. Consolidated Garage System);

           

Series 2018 A, RB (INS - AGM)(d)

      5.00 %      10/01/2034        540        584,104  

Series 2018 A, RB (INS - AGM)(d)

      5.00 %      10/01/2036        1,115        1,188,170  

Series 2018 A, RB (INS - AGM)(d)

      5.00 %      10/01/2037        755        801,502  

Series 2018 A, RB (INS - AGM)(d)

      5.00 %      10/01/2038        475        503,637  

Series 2018 B, Ref. RB (INS - AGM)(d)

      5.00 %      10/01/2032        1,000        1,094,215  

Series 2018 B, Ref. RB (INS - AGM)(d)

      5.00 %      10/01/2033        715        778,830  

Series 2018 B, Ref. RB (INS - AGM)(d)

      5.00 %      10/01/2034        515        557,063  

St. James (Parish of), LA (Nustar Logistics, L.P.); Series 2011, RB(a)(e)

      5.85 %      06/01/2025        4,000        4,109,568  

Tobacco Settlement Financing Corp.; Series 2013 A, Ref. RB

      5.25 %      05/15/2035        3,410        3,421,081  
                                 28,914,865  

Maryland–0.35%

           

Baltimore (City of), MD (Convention Center Hotel);

           

Series 2017, Ref. RB

      5.00 %      09/01/2026        2,160        2,152,577  

Series 2017, Ref. RB

      5.00 %      09/01/2027        1,100        1,099,424  

Baltimore (City of), MD (East Baltimore Research Park); Series 2017, Ref. RB

      4.00 %      09/01/2027        425        416,592  

Baltimore (City of), MD (Harbor Point); Series 2022, RB

      4.50 %      06/01/2033        400        389,092  

Howard (County of), MD (Downtown Columbia); Series 2017 A, RB(e)

      4.00 %      02/15/2028        480        464,491  

Maryland (State of) Health & Higher Educational Facilities Authority (Green Street Academy); Series 2017 A, RB(e)

      5.00 %      07/01/2027        400        399,971  

Maryland (State of) Health & Higher Educational Facilities Authority (Johns Hopkins Medical Institutions Parking Facilities); Series 1996, RB (INS - AMBAC)(d)

      5.50 %      07/01/2026        40        40,294  
                                 4,962,441  

Massachusetts–0.57%

           

Collegiate Charter School of Lowell; Series 2019, RB

      5.00 %      06/15/2039        1,000        967,463  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

12                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  

Massachusetts–(continued)

           

Lynn Housing Authority & Neighborhood Development;

           

Series 2018, Ref. RB

      3.60 %      10/01/2023      $ 200      $           198,433  

Series 2018, Ref. RB

      3.75 %      10/01/2024        250        246,099  

Series 2018, Ref. RB

      4.00 %      10/01/2025        200        200,004  

Series 2018, Ref. RB

      4.00 %      10/01/2026        100        100,100  

Series 2018, Ref. RB

      4.00 %      10/01/2027        150        150,274  

Series 2018, Ref. RB

      4.25 %      10/01/2028        320        321,364  

Series 2018, Ref. RB

      4.38 %      10/01/2029        385        386,998  

Series 2018, Ref. RB

      4.50 %      10/01/2030        690        694,111  

Massachusetts (Commonwealth of) Development Finance Agency (Lawrence General Hospital); Series 2017, Ref. RB

      5.00 %      07/01/2028        675        650,816  

Massachusetts (Commonwealth of) Development Finance Agency (Linden Ponds, Inc. Facility); Series 2018, RB(e)

      5.00 %      11/15/2033        1,500        1,565,955  

Massachusetts (Commonwealth of) Development Finance Agency (Newbridge Charles, Inc.); Series 2017, Ref. RB(e)

      5.00 %      10/01/2057        1,500        1,397,570  

Massachusetts (Commonwealth of) Development Finance Agency (Plantation Apartments L.P.); Series 2004 A, RB (LOC - Fleet National Bank)(f)(k)

      5.00 %      12/15/2024        1,155        1,155,502  
                                 8,034,689  

Michigan–1.82%

           

Advanced Technology Academy;

           

Series 2019, Ref. RB

      3.88 %      11/01/2029        1,210        1,111,241  

Series 2019, Ref. RB

      5.00 %      11/01/2034        1,200        1,140,821  

Detroit (City of), MI; Series 2018, GO Bonds

      5.00 %      04/01/2026        1,000        1,018,813  

Ecorse (City of), MI; Series 2011, GO Bonds

      5.80 %      11/01/2026        1,430        1,432,248  

Kalamazoo Economic Development Corp. (Friendship Village of Kalamazoo); Series 2021, Ref. RB(e)

      5.00 %      08/15/2031        1,080        1,009,853  

Michigan (State of) Finance Authority (Cesar Chavez Academy);

           

Series 2019, Ref. RB

      3.25 %      02/01/2024        90        88,780  

Series 2019, Ref. RB

      4.00 %      02/01/2029        700        663,829  

Series 2019, Ref. RB

      5.00 %      02/01/2033        830        822,930  

Michigan (State of) Finance Authority (Local Government Loan Program); Series 2003 B-2, RB

      6.00 %      11/01/2023        10        10,024  

Michigan (State of) Finance Authority (Madison Academy); Series 2021, Ref. RB

      4.25 %      12/01/2039        1,575        1,228,627  

Michigan (State of) Finance Authority (Universal Learning Academy);

           

Series 2018, Ref. RB

      5.00 %      11/01/2023        100        100,123  

Series 2018, Ref. RB

      5.50 %      11/01/2028        500        506,750  

Series 2018, Ref. RB

      6.00 %      11/01/2032        500        516,150  

Michigan (State of) Strategic Fund (Evangelical Homes); Series 2013, Ref. RB

      5.50 %      06/01/2047        3,000        2,558,348  

Michigan (State of) Strategic Fund (Friendship Village of Kalamazoo); Series 2021, Ref. RB(e)

      5.00 %      08/15/2031        810        757,390  

Michigan (State of) Strategic Fund (Green Bonds); Series 2021, RB(a)(f)

      4.00 %      10/01/2026        7,610        7,509,946  

Michigan (State of) Strategic Fund (I-75 Improvement Project);

           

Series 2018, RB(f)

      5.00 %      12/31/2032        1,730        1,790,912  

Series 2018, RB(f)

      5.00 %      12/31/2033        2,000        2,064,824  

Waterford Township Economic Development Corp. (Canterbury Health Care, Inc.); Series 2016 A, Ref. RB(e)

      5.00 %      07/01/2026        1,280        1,176,495  
                                 25,508,104  

Minnesota–1.35%

           

Bethel (City of), MN (Benedictine Health System - St. Peter Communities); Series 2018 A, Ref. RB

      5.00 %      12/01/2033        1,250        1,085,440  

Bethel (City of), MN (Spectrum High School); Series 2017 A, Ref. RB

      3.50 %      07/01/2027        620        573,208  

Brooklyn Park (City of), MN (Athlos Leadership Academy);

           

Series 2015 A, RB

      4.75 %      07/01/2025        530        517,877  

Series 2015 A, RB

      5.25 %      07/01/2030        580        552,142  

Series 2015, RB

      5.50 %      07/01/2035        665        612,827  

Series 2015, RB

      5.75 %      07/01/2046        1,400        1,215,900  

Dakota (County of), MN Community Development Agency (Sanctuary at West St. Paul); Series 2015, RB (Acquired 01/18/2019; Cost $965,250)(c)

      5.75 %      08/01/2030        975        783,703  

Deephaven (City of), MN (Seven Hills Preparatory Academy);

           

Series 2017, RB

      4.38 %      10/01/2027        235        226,160  

Series 2017, RB

      5.00 %      10/01/2037        1,000        906,383  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

13                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  

Minnesota–(continued)

           

Duluth (City of), MN Housing & Redevelopment Authority (Duluth Public Schools Academy);

           

Series 2018 A, Ref. RB

      4.25 %      11/01/2028      $ 1,680      $         1,605,637  

Series 2018 A, Ref. RB

      5.00 %      11/01/2033        1,070        1,033,043  

Minneapolis (City of), MN (Spero Academy);

           

Series 2017 A, RB(e)

      5.50 %      07/01/2027        590        591,130  

Series 2017 A, RB(e)

      6.00 %      07/01/2032        1,080        1,094,655  

Ramsey (City of), MN; Series 2022 A, Ref. RB

      5.00 %      06/01/2032        2,000        1,954,992  

Rochester (City of), MN (Homestead at Rochester, Inc.); Series 2013 A, RB

      6.88 %      12/01/2048        1,000        1,002,700  

St. Louis Park (City of), MN (Place Via Sol Project); Series 2018, RB (Acquired 12/26/2018; Cost $2,000,000)(a)(b)(c)(e)

      6.00 %      07/01/2027        2,000        1,800,000  

St. Paul (City of), MN Housing & Redevelopment Authority (Great River School); Series 2017 A, RB(e)

      5.25 %      07/01/2033        140        140,635  

St. Paul (City of), MN Housing & Redevelopment Authority (High School for Recording Arts); Series 2015, RB

      5.13 %      10/01/2023        80        79,827  

St. Paul (City of), MN Housing & Redevelopment Authority (Higher Ground Academy); Series 2023, Ref. RB

      4.25 %      12/01/2032        1,315        1,304,568  

St. Paul (City of), MN Housing & Redevelopment Authority (Hmong College Prep Academy); Series 2016, Ref. RB

      5.00 %      09/01/2026        810        811,228  

St. Paul (City of), MN Housing & Redevelopment Authority (Rossy & Richard Shaller Family Sholom East Campus);

           

Series 2018, Ref. RB

      4.00 %      10/01/2031        250        214,264  

Series 2018, Ref. RB

      4.13 %      10/01/2033        250        209,140  

St. Paul Park (City of), MN (Presbyterian Homes Bloomington); Series 2017,
Ref. RB

      4.10 %      09/01/2033        500        480,577  

Wayzata (City of), MN (Folkstone Senior Living Co.); Series 2019, Ref. RB

      5.00 %      08/01/2035        100        98,452  
                                 18,894,488  

Mississippi–0.86%

           

Mississippi (State of) Development Bank (Hospital Construction); Series 2014, RB

      5.00 %      09/01/2030        720        739,113  

Mississippi (State of) Development Bank (Jackson County Gomesa); Series 2021, RB(e)

      3.63 %      11/01/2036        3,500        3,143,303  

Mississippi (State of) Hospital Equipment & Facilities Authority (Baptist Memorial Health Care); Series 2016, RB

      5.00 %      09/01/2046        3,870        3,836,295  

Mississippi Business Finance Corp. (Waste Pro USA Inc.); Series 2017, RB(a)(e)(f)

      5.00 %      08/02/2027        3,000        2,843,753  

Tunica (County of), MS; Series 2019, Ref. RB

      6.00 %      10/01/2040        1,620        1,427,154  
                                 11,989,618  

Missouri–1.94%

           

Arnold Retail Corridor Transportation Development District; Series 2019, Ref. RB

      3.00 %      11/01/2028        145        135,123  

Branson (City of), MO Industrial Development Authority (Branson Shoppes Redevelopment);

           

Series 2017 A, Ref. RB

      4.00 %      11/01/2025        1,440        1,396,311  

Series 2017 A, Ref. RB

      4.00 %      11/01/2026        750        715,711  

Cape Girardeau (County of), MO Industrial Development Authority (Procter & Gamble Paper Products Co. (The)); Series 1998, RB(f)

      5.30 %      05/15/2028        30        30,059  

I-470 Western Gateway Transportation Development District; Series 2019 A, RB(e)

      4.50 %      12/01/2029        1,680        1,640,728  

Kansas City (City of), MO Industrial Development Authority (Ward Parkway Center Community Improvement District);

           

Series 2016 A, Ref. RB(e)

      4.25 %      04/01/2026        310        299,483  

Series 2016 A, Ref. RB(e)

      5.00 %      04/01/2036        2,000        1,840,837  

Kansas City (City of), MO Land Clearance for Redevelopment Authority (Convention Center Hotel); Series 2018 B, RB(e)

      4.38 %      02/01/2031        960        818,742  

Kirkwood (City of), MO Industrial Development Authority (Aberdeen Heights);

           

Series 2017 A, Ref. IDR

      5.00 %      05/15/2026        1,000        979,399  

Series 2017 A, Ref. IDR

      5.00 %      05/15/2027        800        776,072  

Series 2017, Ref. RB

      5.00 %      05/15/2024        1,700        1,689,319  

Series 2017, Ref. RB

      5.25 %      05/15/2037        1,000        898,828  

Series 2017, Ref. RB

      5.25 %      05/15/2042        1,000        864,880  

Lee’s Summit (City of), MO Industrial Development Authority (John Knox Village Obligated Group);

           

Series 2014 A, RB

      5.00 %      08/15/2034        490        452,490  

Series 2014 A, RB

      5.25 %      08/15/2039        5,235        4,797,128  

Series 2018, Ref. RB

      5.00 %      08/15/2032        2,680        2,525,580  

Maryland Heights (City of), MO (Westport Plaza Redevelopment);

           

Series 2020, RB

      3.63 %      11/01/2031        1,365        1,201,714  

Series 2020, RB

      4.13 %      11/01/2038        2,500        2,068,397  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

14                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  

Missouri–(continued)

           

Missouri (State of) Health & Educational Facilities Authority (Truman Medical Center, Inc.); Series 2017, RB(e)

      5.00 %      12/01/2037      $ 300      $           308,119  

Northpark Lane Community Improvement District; Series 2018, RB

      4.50 %      11/01/2036        560        559,715  

St. Charles (County of), MO Industrial Development Authority (Suemandy/Mid-Rivers Community Improvement District); Series 2016, RB(e)

      4.25 %      10/01/2034        1,325        1,137,357  

St. Louis (County of), MO Industrial Development Authority (Friendship Village West County);

           

Series 2018 A, RB

      5.00 %      09/01/2025        1,000        1,002,555  

Series 2018 A, RB

      5.00 %      09/01/2026        1,000        1,003,495  
                                 27,142,042  

Nebraska–0.07%

           

Douglas (County of), NE Hospital Authority No. 2 (NE Methodist Health); Series 2015, Ref. RB

      5.00 %      11/01/2045        1,000        1,007,920  

Nevada–0.43%

           

Las Vegas (City of), NV Special Improvement District No. 607;

           

Series 2013, Ref. RB

      5.00 %      06/01/2023        205        205,527  

Series 2013, Ref. RB

      5.00 %      06/01/2024        50        50,619  

Las Vegas (City of), NV Special Improvement District No. 815; Series 2020, RB

      4.75 %      12/01/2040        350        332,323  

Nevada (State of) Department of Business & Industry (Doral Academy of Nevada);

           

Series 2017 A, RB(e)

      5.00 %      07/15/2027        335        336,837  

Series 2017 A, RB(e)

      5.00 %      07/15/2037        500        493,918  

Nevada (State of) Department of Business & Industry (Somerset Academy); Series 2018 A, RB(e)

      4.50 %      12/15/2029        525        508,576  

North Las Vegas (City of), NV Special Improvement District No. 66 (Villages at Tule Springs Village 1); Series 2022, RB(e)

      5.50 %      06/01/2037        750        747,001  

Sparks (City of), NV (Tourism Improvement District No. 1); Series 2019 A, Ref. RB(e)

      2.75 %      06/15/2028        2,500        2,246,264  

Tahoe-Douglas Visitors Authority; Series 2020, RB

      5.00 %      07/01/2032        1,000        1,038,364  
                                 5,959,429  

New Hampshire–0.60%

           

New Hampshire (State of) Business Finance Authority (Covanta);

           

Series 2018 A, Ref. RB(e)(f)

      4.00 %      11/01/2027        1,500        1,429,198  

Series 2020 A, Ref. RB(a)(e)

      3.63 %      07/02/2040        3,455        2,643,258  

New Hampshire (State of) Business Finance Authority (Social Bonds); Series 2022-2A, RB

      4.00 %      10/20/2036        3,980        3,717,300  

New Hampshire (State of) Health and Education Facilities Authority (Hillside Village);

           

Series 2017 A, RB (Acquired 06/12/2017; Cost $1,323,137)(b)(c)(e)

      5.25 %      07/01/2027        1,323        291,090  

Series 2017 B, RB (Acquired 06/12/2017; Cost $1,214,615)(b)(c)(e)

      4.13 %      07/01/2024        1,215        267,215  
                                 8,348,061  

New Jersey–2.23%

           

New Jersey (State of) Economic Development Authority; Series 2017 B, Ref. RB

      5.00 %      11/01/2023        1,500        1,514,511  

New Jersey (State of) Economic Development Authority (Beloved Community Charter School, Inc.); Series 2019 A, RB(e)

      5.00 %      06/15/2039        825        792,071  

New Jersey (State of) Economic Development Authority (Golden Door Charter School); Series 2018 A, RB(e)

      5.13 %      11/01/2029        215        213,489  

New Jersey (State of) Economic Development Authority (Hatikvah International Academy Charter School); Series 2017 A, RB(e)

      5.00 %      07/01/2027        395        389,839  

New Jersey (State of) Economic Development Authority (Marion P. Thomas Charter School); Series 2018 A, RB(e)

      4.75 %      10/01/2028        1,305        1,275,581  

New Jersey (State of) Economic Development Authority (New Jersey Transportation Bonds); Series 2020 A, RB

      5.00 %      11/01/2030        3,225        3,546,487  

New Jersey (State of) Economic Development Authority (Newark Downtown District Management Corp.); Series 2019, Ref. RB

      5.13 %      06/15/2037        517        551,537  

New Jersey (State of) Economic Development Authority (Paterson Charter School for Science and Technology, Inc.); Series 2012 C, RB

      5.00 %      07/01/2032        1,385        1,368,654  

New Jersey (State of) Economic Development Authority (Teaneck Community Charter School); Series 2017 A, Ref. RB(e)

      4.25 %      09/01/2027        210        205,876  

New Jersey (State of) Higher Education Student Assistance Authority; Series 2018 B, Ref. RB(f)

      5.00 %      12/01/2026        1,000        1,048,835  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

15                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  

New Jersey–(continued)

           

New Jersey (State of) Transportation Trust Fund Authority;

           

Series 2008 A, RB(h)

      0.00 %      12/15/2028      $ 715      $           575,602  

Series 2008 A, RB(h)

      0.00 %      12/15/2035        1,000        570,521  

Series 2009 A, RB(h)

      0.00 %      12/15/2032        1,465        981,143  

Series 2010 A, RB (INS - BAM)(d)(h)

      0.00 %      12/15/2028        4,850        3,944,565  

Series 2013 AA, RB

      5.25 %      06/15/2031        1,150        1,155,960  

Series 2018 A, Ref. RB

      5.00 %      12/15/2024        1,000        1,023,562  

Series 2018 A, RN(i)(j)

      5.00 %      06/15/2029        1,000        1,052,647  

Series 2018 A, RN(i)(j)

      5.00 %      06/15/2030        2,845        2,993,246  

Series 2019, Ref. RB

      5.00 %      12/15/2033        2,850        3,102,398  

Series 2020 A, Ref. RN(i)(j)

      5.00 %      06/15/2031        4,680        4,914,737  

Tobacco Settlement Financing Corp.; Series 2018 B, Ref. RB

      3.20 %      06/01/2027        45        44,971  
                                 31,266,232  

New Mexico–0.22%

           

New Mexico (State of) Hospital Equipment Loan Council (La Vida Expansion); Series 2019 C, RB

      2.25 %      07/01/2023        1,125        1,112,981  

Winrock Town Center Tax Increment Development District No. 1;

           

Series 2022, Ref. RB(e)

      3.75 %      05/01/2028        1,008        943,362  

Series 2022, Ref. RB(e)

      4.00 %      05/01/2033        1,250        1,092,867  
                                 3,149,210  

New York–6.49%

           

Allegany County Capital Resource Corp. (Houghton College); Series 2022 A, Ref. RB

      5.00 %      12/01/2032        1,385        1,462,948  

Buffalo & Erie County Industrial Land Development Corp. (Medaille College);

           

Series 2018, Ref. RB(e)

      5.00 %      10/01/2028        375        365,726  

Series 2018, Ref. RB(e)

      5.00 %      10/01/2038        2,445        2,197,310  

Build NYC Resource Corp. (Brooklyn Navy Yard);

           

Series 2019, Ref. RB(e)(f)

      5.25 %      12/31/2033        3,000        2,752,913  

Series 2019, Ref. RB(e)(f)

      5.50 %      12/31/2040        5,000        4,329,090  

Build NYC Resource Corp. (NY Preparatory Charter School);

           

Series 2021 A, RB

      4.00 %      06/15/2031        300        281,580  

Series 2021 A, RB

      4.00 %      06/15/2041        525        430,648  

Build NYC Resource Corp. (Shefa School);

           

Series 2021 A, RB(e)

      2.50 %      06/15/2031        375        312,472  

Series 2021 A, RB(e)

      5.00 %      06/15/2051        750        671,790  

Erie Tobacco Asset Securitization Corp.; Series 2005 A, RB

      5.00 %      06/01/2045        3,210        3,015,684  

Metropolitan Transportation Authority;

           

Series 2013 E, RB

      5.00 %      11/15/2038        1,400        1,395,996  

Subseries 2015 C-1, Ref. RB

      5.25 %      11/15/2031        2,000        2,038,536  

Metropolitan Transportation Authority (Green Bonds); Series 2020 E, Ref. RB

      5.00 %      11/15/2029        4,100        4,367,265  

Nassau (County of), NY Industrial Development Agency (Amsterdam at Harborside);

           

Series 2021, RB (Acquired 01/19/2016-02/28/2018; Cost $1,095,340)(c)

      5.00 %      01/01/2058        967        466,165  

Series 2021, Ref. RB (Acquired 09/07/2021; Cost $445,000)(c)(e)

      9.00 %      01/01/2041        445        367,873  

New York & New Jersey (States of) Port Authority; Series 2014, Ref. RB(f)

      5.00 %      10/15/2044        2,380        2,393,492  

New York (State of) Dormitory Authority (Montefiore Obligated Group); Series 2018 A, Ref. RB

      5.00 %      08/01/2035        1,250        1,253,952  

New York Counties Tobacco Trust II; Series 2001, RB

      5.63 %      06/01/2035        95        96,896  

New York Counties Tobacco Trust VI;

           

Series 2016 A, Ref. RB

      5.63 %      06/01/2035        1,255        1,291,258  

Series 2016 A, Ref. RB

      6.00 %      06/01/2043        3,360        3,415,560  

New York Liberty Development Corp. (3 World Trade Center); Series 2014, Class 3, Ref. RB(e)

      7.25 %      11/15/2044        3,000        3,030,980  

New York Transportation Development Corp. (American Airlines, Inc. John F. Kennedy International Airport); Series 2020, Ref. RB(f)

      5.25 %      08/01/2031        3,025        3,080,610  

New York Transportation Development Corp. (American Airlines, Inc.);

           

Series 2016, Ref. RB(f)

      5.00 %      08/01/2026        5,495        5,497,402  

Series 2016, Ref. RB(f)

      5.00 %      08/01/2031        8,500        8,507,788  

Series 2021, Ref. RB(f)

      3.00 %      08/01/2031        545        486,478  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

16                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

New York–(continued)

           

New York Transportation Development Corp. (Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment);

           

Series 2018, RB(f)

    5.00%     01/01/2030      $ 2,000      $       2,071,174

Series 2018, RB(f)

    5.00%     01/01/2031        5,000      5,163,567

Series 2018, RB(f)

    5.00%     01/01/2032        4,315      4,453,529

Series 2020, RB(f)

    4.00%     10/01/2030        6,000      5,847,579

Series 2020, RB(f)

    5.00%     10/01/2035        5,000      5,133,032

New York Transportation Development Corp. (Terminal 4 JFK International Airport); Series 2022, RB(f)

    5.00%     12/01/2029        7,000      7,449,333

Tompkins County Development Corp. (Tompkins Cortland Community College Foundation, Inc.);

                           

Series 2013 A, RB(b)

    5.00%     07/01/2027        1,000      495,000

Series 2013 A, RB(b)

    5.00%     07/01/2032        1,000      495,000

Westchester (County of), NY Industrial Development Agency (Million Air Two LLC General Aviation Facilities); Series 2017 A, RB(e)(f)

    7.00%     06/01/2046        3,500      3,068,294

Westchester County Local Development Corp.; Series 2021, Ref. RB(e)

    2.88%     07/01/2026        3,385      3,231,960
                           90,918,880

North Dakota–0.06%

           

Burleigh (County of), ND (University of Mary); Series 2016, RB

    4.38%     04/15/2026        820      802,089

Ohio–2.58%

           

Buckeye Tobacco Settlement Financing Authority; Series 2020 B-2, Ref. RB

    5.00%     06/01/2055        2,500      2,273,600

Cleveland (City of) & Cuyahoga (County of), OH Port Authority (Euclid Avenue Development Corp.); Series 2014, Ref. RB

    5.00%     08/01/2029        600      614,941

Cleveland (City of) & Cuyahoga (County of), OH Port Authority (Flats East Bank); Series 2010, RB

    6.00%     11/15/2035        1,000      1,002,052

Cleveland (City of), OH (Continental Airlines, Inc.); Series 1998, RB(f)

    5.38%     09/15/2027        485      484,968

Cuyahoga (County of), OH (MetroHealth System); Series 2017, Ref. RB

    5.00%     02/15/2031        2,500      2,598,140

Franklin (County of), OH (Wesley Communities); Series 2020, Ref. RB

    5.25%     11/15/2040        1,500      1,373,612

Greater Cincinnati (Port of), OH Development Authority;

           

Series 2004, RB

    6.30%     02/15/2024        165      164,613

Series 2004, RB

    6.40%     02/15/2034        1,950      1,888,891

Greater Cincinnati (Port of), OH Development Authority (IPS Cincinnati LLC); Series 2021, RB(a)

    4.38%     06/15/2026        1,700      1,626,860

Lorain (County of), OH Port Authority (Kendal at Oberlin); Series 2013 A, Ref. RB(a)(g)

    5.00%     11/15/2023        1,500      1,517,543

Lucas Metropolitan Housing Authority;

           

Series 2012, RB

    5.25%     09/01/2024        275      280,946

Series 2012, RB

    5.25%     09/01/2025        290      296,304

Series 2012, RB

    5.25%     09/01/2026        305      311,662

Series 2012, RB

    5.25%     09/01/2027        320      327,018

Marion (County of), OH (United Church Homes, Inc.); Series 2019, Ref. RB

    5.13%     12/01/2049        2,040      1,752,857

Muskingum (County of), OH (Genesis Healthcare System);

           

Series 2013, RB

    5.00%     02/15/2033        1,000      1,000,193

Series 2013, RB

    5.00%     02/15/2044        3,000      2,698,833

Series 2013, RB

    5.00%     02/15/2048        7,180      6,178,585

Ohio (State of) (Cleveland Clinic Health System Obligated Group); Series 2018, Ref. RB(e)

    5.00%     12/01/2023        1,460      1,451,460

Ohio (State of) (Portsmouth Bypass); Series 2015, RB(f)

    5.00%     12/31/2039        1,000      996,131

Ohio (State of) Air Quality Development Authority (Ohio Valley Electric Corp.); Series 2019 A, Ref. PCR

    3.25%     09/01/2029        2,000      1,818,096

Ohio (State of) Air Quality Development Authority (Pratt Paper LLC); Series 2017, RB(e)(f)

    4.25%     01/15/2038        250      240,379

Ohio (State of) Housing Finance Agency (Sanctuary at Springboro); Series 2017, RB(e)

    5.13%     01/01/2032        450      374,906

RiverSouth Authority; Series 2007 A, RB

    5.75%     12/01/2027        580      579,945

Southern Ohio Port Authority (Purecycle);

           

Series 2020 A, RB(e)(f)

    6.25%     12/01/2025        3,620      3,258,867

Series 2020 A, RB(e)(f)

    7.00%     12/01/2042        1,165      829,565

Youngstown (City of), OH Metropolitan Housing Authority;

           

Series 2014, RB

    3.20%     06/15/2023        35      34,836

Series 2014, RB

    4.00%     12/15/2024        210      210,046
                           36,185,849

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

17                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

Oklahoma–0.60%

           

Oklahoma (State of) Development Finance Authority (Provident Oklahoma Education Resources, Inc.-Cross Village Student Housing); Series 2017 A, RB(b)

    5.00%     08/01/2037      $ 1,650      $              1,650

Payne (County of), OK Economic Development Authority (Epworth Living at the Ranch); Series 2016 B-2, RB(b)

    4.75%     11/01/2023        978      2,446

Tulsa (City of), OK Airports Improvement Trust; Series 2001 C, Ref. RB(f)

    5.50%     12/01/2035        2,000      2,002,303

Tulsa (City of), OK Airports Improvement Trust (American Airlines Group, Inc.); Series 2015, Ref. RB(a)(f)

    5.00%     06/01/2025        6,340      6,347,515
                           8,353,914

Oregon–0.00%

           

Local Oregon Capital Assets Program; Series 2011 C, COP

    4.60%     06/01/2031        35      35,023

Oregon (State of) (Elderly & Disabled Housing); Series 1993 C, GO Bonds(f)

    5.65%     08/01/2026        10      10,019
                           45,042

Pennsylvania–2.87%

           

Allegheny (County of), PA Hospital Development Authority (Allegheny Health Network Obligated Group Issue);

           

Series 2018 A, Ref. RB

    5.00%     04/01/2032        3,000      3,206,628

Series 2018, Ref. RB

    5.00%     04/01/2030        3,875      4,144,583

Allegheny (County of), PA Industrial Development Authority (United States Steel Corp.); Series 2019, Ref. RB

    4.88%     11/01/2024        3,000      3,016,230

Allegheny (County of), PA Redevelopment Authority (Pittsburgh Mills); Series 2004, RB (Acquired 08/10/2017; Cost $500,092)(c)

    5.60%     07/01/2023        508      456,937

Allentown (City of), PA Neighborhood Improvement Zone Development Authority (615 Waterfront); Series 2021, RB(e)

    6.00%     05/01/2042        690      698,809

Allentown (City of), PA Neighborhood Improvement Zone Development Authority (City Center);

           

Series 2017, RB(e)

    5.00%     05/01/2027        2,750      2,796,532

Series 2018, RB(e)

    5.00%     05/01/2028        2,250      2,292,861

Series 2018, RB(e)

    5.00%     05/01/2033        500      506,763

Chester (County of), PA Industrial Development Authority (Woodlands at Greystone); Series 2018, RB(e)

    4.38%     03/01/2028        227      222,462

Delaware Valley Regional Finance Authority; Series 1997 B, RB (INS - AMBAC)(d)

    5.70%     07/01/2027        1,000      1,098,668

Franklin (County of), PA Industrial Development Authority (Menno-Haven, Inc.);

           

Series 2018, Ref. RB

    5.00%     12/01/2028        630      591,245

Series 2018, Ref. RB

    5.00%     12/01/2030        910      837,216

Montgomery (County of), PA Higher Education & Health Authority (Holy Redeemer Health System); Series 2014 A, Ref. RB

    5.00%     10/01/2024        1,165      1,168,578

Northampton (County of), PA Industrial Development Authority;

           

Series 2013 A, RB (Acquired 04/03/2013; Cost $308,057)(c)(l)(m)

    5.00%     12/31/2023        350      63,025

Series 2013, RB(l)(m)

    5.00%     12/31/2023        163      29,311

Pennsylvania (Commonwealth of) Higher Educational Facilities Authority (Thomas Jefferson University); Series 2015, Ref. RB

    5.25%     09/01/2050        10,080      10,188,996

Philadelphia (City of), PA Authority for Industrial Development (Alliance for Progress Charter School, Inc.);

           

Series 2019 A, RB

    4.00%     06/15/2029        765      722,936

Series 2019 A, RB

    5.00%     06/15/2039        1,840      1,751,209

Philadelphia (City of), PA Authority for Industrial Development (La Salle University);

           

Series 2017, Ref. RB

    5.00%     05/01/2027        1,735      1,705,599

Series 2017, Ref. RB

    5.00%     05/01/2028        1,810      1,772,041

Philadelphia (City of), PA Authority for Industrial Development (University of the Arts); Series 2017, Ref. RB(e)

    5.00%     03/15/2045        2,000      1,586,064

Philadelphia (City of), PA Authority for Industrial Development (Wesley Enhanced Living Obligated Group);

           

Series 2017, Ref. RB

    5.00%     07/01/2031        500      465,022

Series 2017, Ref. RB

    5.00%     07/01/2032        1,000      921,136
                           40,242,851

Puerto Rico–9.69%

           

Children’s Trust Fund;

           

Series 2002, RB

    5.38%     05/15/2033        185      185,062

Series 2002, RB

    5.50%     05/15/2039        13,770      13,770,800

Series 2002, RB

    5.63%     05/15/2043        7,645      7,721,860

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

18                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

Puerto Rico–(continued)

           

Corp. Para El Financiamiento Publico de Puerto Rico;

           

Series 2011, RB

    6.00%     08/01/2024      $ 10,675      $          280,219

Series 2011, RB

    6.00%     08/01/2025        17,475      458,719

Series 2011, RB

    6.00%     08/01/2026        6,495      170,494

Series 2011, RB

    6.50%     08/01/2028        37,400      981,750

Series 2011, RB

    5.50%     08/01/2031        54,770      1,437,712

PRHTA Custodial Trust; Series 2022, RB(l)

    5.75%     12/06/2049        258      92,786

PRPBA Custodial Trust; Series 2022, RB

    0.00%     03/15/2049        278      2,549

Puerto Rico (Commonwealth of);

           

Series 2021 A, GO Bonds(h)

    0.00%     07/01/2024        1,819      1,707,120

Series 2021 A, GO Bonds(h)

    0.00%     07/01/2033        2,034      1,159,219

Series 2021 A-1, GO Bonds

    5.25%     07/01/2023        5,006      5,020,784

Series 2021 A-1, GO Bonds

    5.63%     07/01/2027        10,510      10,857,084

Series 2021 A-1, GO Bonds

    5.63%     07/01/2029        3,000      3,130,196

Series 2021 A-1, GO Bonds

    4.00%     07/01/2033        3,300      2,957,016

Subseries 2022, RN

    0.00%     11/01/2043        8,027      3,461,829

Subseries 2022, RN

    0.00%     11/01/2051        2,118      926,447

Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority;

           

Series 2008 A, RB

    6.13%     07/01/2024        655      665,508

Series 2022 A, Ref. RB(e)

    5.00%     07/01/2029        5,000      5,093,601

Puerto Rico (Commonwealth of) Electric Power Authority;

           

Series 2004 PP, Ref. RB (INS - NATL)(d)

    5.00%     07/01/2023        2,500      2,499,998

Series 2005 RR, RB (INS - SGI)(d)

    5.00%     07/01/2025        100      100,387

Series 2005 RR, RB (INS - AGC)(d)

    5.00%     07/01/2026        155      156,048

Series 2007 TT, RB (INS - NATL)(d)

    5.00%     07/01/2026        165      165,156

Series 2007 TT, RB(b)

    5.00%     07/01/2032        1,990      1,388,025

Series 2007 TT, RB(b)

    5.00%     07/01/2037        500      348,750

Series 2007 TT, RB(b)

    5.00%     12/01/2049        1,380      940,125

Series 2007 UU, Ref. RB (INS - AGM)(d)

    5.00%     07/01/2023        10      10,068

Series 2007 UU, Ref. RB (INS - AGC)(d)

    5.00%     07/01/2026        1,435      1,444,698

Series 2007 VV, Ref. RB (INS - NATL)(d)

    5.25%     07/01/2025        1,705      1,710,353

Series 2007 VV, Ref. RB (INS - NATL)(d)

    5.25%     07/01/2030        1,000      1,003,605

Series 2010 AAA, RB(b)

    5.25%     07/01/2028        5,685      3,965,287

Series 2010 CCC, RB(b)

    5.25%     07/01/2026        6,565      4,579,087

Series 2010 DDD, Ref. RB (INS - AGM)(d)

    5.00%     07/01/2023        40      40,270

Series 2010 XX, RB(b)

    5.25%     07/01/2027        250      174,375

Series 2010 XX, RB(b)

    5.25%     07/01/2040        1,875      1,317,188

Series 2010 ZZ, Ref. RB(b)

    5.25%     07/01/2025        1,180      821,575

Series 2010 ZZ, Ref. RB(b)(n)

    5.00%     12/01/2049        6,280      4,278,250

Puerto Rico (Commonwealth of) Highway & Transportation Authority;

           

Series 2022 A, RB

    5.00%     07/01/2062        333      309,103

Series 2022 B, RB(h)

    0.00%     07/01/2032        217      135,361

Series 2022 C, RB(o)

    5.00%     07/01/2053        370      205,677

Puerto Rico (Commonwealth of) Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority; Series 2000, RB(f)

    6.63%     06/01/2026        6,580      6,682,807

Puerto Rico (Commonwealth of) Municipal Finance Agency;

           

Series 2002 A, RB (INS - AGM)(d)

    5.00%     08/01/2027        1,450      1,459,800

Series 2005 A, RB (INS - AGM)(d)

    5.00%     08/01/2030        305      307,061

Puerto Rico Sales Tax Financing Corp.;

           

Series 2018 A-1, RB(h)

    0.00%     07/01/2024        373      351,634

Series 2018 A-1, RB(h)

    0.00%     07/01/2027        1,027      841,851

Series 2018 A-1, RB(h)

    0.00%     07/01/2029        1,003      743,896

Series 2018 A-1, RB(h)

    0.00%     07/01/2033        11,167      6,670,852

Series 2018 A-1, RB

    4.50%     07/01/2034        7,162      7,101,478

Series 2018 A-1, RB

    4.55%     07/01/2040        538      502,423

Series 2018 A-1, RB(h)

    0.00%     07/01/2046        13,831      3,544,609

Series 2018 A-1, RB(h)

    0.00%     07/01/2051        11,268      2,126,046

Series 2018 A-1, RB

    4.75%     07/01/2053        3,953      3,543,398

Series 2019 A-2, RB

    4.33%     07/01/2040        5,475      4,975,145

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

19                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

Puerto Rico–(continued)

           

Series 2019 A-2, RB

    4.54%     07/01/2053      $ 163      $          140,961

Series 2019 A-2, RB

    4.78%     07/01/2058        2,196      1,962,924

Series 2019 A-2B, RB

    4.55%     07/01/2040        1,871      1,747,274

University of Puerto Rico;

           

Series 2006 P, Ref. RB

    5.00%     06/01/2023        2,535      2,530,579

Series 2006 Q, RB

    5.00%     06/01/2025        5,000      4,941,505
                           135,848,384

Rhode Island–0.02%

           

Pawtucket (City of), RI Housing Authority; Series 2010, RB

    5.50%     09/01/2028        195      197,316

Rhode Island Housing and Mortgage Finance Corp.; Series 1992 10-A, RB

    6.50%     04/01/2027        80      80,172
                           277,488

South Carolina–0.83%

           

South Carolina (State of) Jobs-Economic Development Authority (Green Charter Schools); Series 2021, Ref. RB(e)

    4.00%     06/01/2036        2,000      1,701,679

South Carolina (State of) Jobs-Economic Development Authority (Kiawah Life Plan Village, Inc.); Series 2021, RB(e)

    8.75%     07/01/2025        1,000      1,059,021

South Carolina (State of) Jobs-Economic Development Authority (South Carolina Episcopal Home at Still Hopes);

           

Series 2018 A, Ref. RB

    5.00%     04/01/2027        1,655      1,647,097

Series 2018, Ref. RB

    5.00%     04/01/2038        2,500      2,307,740

South Carolina (State of) Jobs-Economic Development Authority (South Carolina SAVES Green Community Program - AAC East LLC) (Green Bonds); Series 2019, RB(e)

    7.00%     05/01/2026        1,485      1,415,287

South Carolina (State of) Jobs-Economic Development Authority (Virtus Academy);

           

Series 2021 A, RB(e)

    4.00%     06/15/2031        200      177,292

Series 2021 A, RB(e)

    5.00%     06/15/2041        920      808,383

South Carolina (State of) Public Service Authority; Series 2014 A, RB

    5.50%     12/01/2054        2,450      2,472,133
                           11,588,632

Tennessee–2.23%

           

Bristol (City of), TN Industrial Development Board (Pinnacle); Series 2016, RB

    5.00%     06/01/2027        5,525      5,266,107

Knox (County of), TN Health, Educational & Housing Facility Board (University Health); Series 2017, Ref. RB

    5.00%     04/01/2036        2,605      2,677,688

Memphis (City of) & Shelby (County of), TN Economic Development Growth Engine Industrial Development Board (Graceland); Series 2017 A, Ref. RB

    5.50%     07/01/2037        350      255,553

Metropolitan Development and Housing Agency (Fifth + Broadway Development);

           

Series 2018, RB(e)

    4.50%     06/01/2028        1,215      1,217,013

Series 2018, RB(e)

    5.13%     06/01/2036        1,000      1,010,223

Nashville (City of) & Davidson (County of), TN Metropolitan Government Health & Educational Facilities Board (The) (Trousdale Foundation Properties); Series 2018 A, RB (Acquired 08/29/2018-01/31/2019; Cost $1,995,192)(c)(e)

    5.25%     04/01/2028        2,000      700,000

Shelby (County of), TN Health, Educational & Housing Facilities Board (Trezevant Manor);

           

Series 2013 A, Ref. RB

    5.38%     09/01/2041        205      175,053

Series 2013 A, Ref. RB

    5.50%     09/01/2047        200      166,400

Series 2016 A, Ref. RB(e)

    5.00%     09/01/2024        1,000      980,897

Series 2016 A, Ref. RB(e)

    5.00%     09/01/2031        3,000      2,703,843

Series 2016 A, Ref. RB(e)

    5.00%     09/01/2037        1,475      1,241,965

Tennergy Corp.;

           

Series 2021 A, RB(a)

    4.00%     09/01/2028        3,610      3,594,001

Series 2022 A, RB(a)

    5.50%     12/01/2030        5,950      6,325,781

Tennessee Energy Acquisition Corp.; Series 2018, RB(a)

    4.00%     11/01/2025        5,000      4,997,077
                           31,311,601

Texas–7.36%

           

Argyle (Town of), TX (The Highlands of Argyle Public Improvement District No. 1); Series 2017, RB

    4.25%     09/01/2027        315      312,199

Arlington Higher Education Finance Corp. (Legacy Traditional Schools);

           

Series 2021, Ref. RB

    4.00%     02/15/2031        1,400      1,242,044

Series 2021, Ref. RB

    4.13%     02/15/2041        3,325      2,518,551

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

20                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

Texas–(continued)

           

Arlington Higher Education Finance Corp. (Newman International Academy);

           

Series 2021, RB

    4.00%     08/15/2031      $ 200      $          182,593

Series 2021, RB

    5.00%     08/15/2041        600      551,775

Arlington Higher Education Finance Corp. (UME Preparatory Academy); Series 2017 A, RB

    4.55%     08/15/2028        585      566,944

Arlington Higher Education Finance Corp. (Winfree Academy Charter School);

           

Series 2019, RB

    5.50%     08/15/2023        110      108,902

Series 2019, Ref. RB

    5.15%     08/15/2029        890      884,196

Bexar County Health Facilities Development Corp. (Army Retirement Residence Foundation);

           

Series 2016, Ref. RB

    5.00%     07/15/2025        430      429,215

Series 2016, Ref. RB

    5.00%     07/15/2026        250      248,991

Series 2018, Ref. RB

    5.00%     07/15/2026        1,000      995,963

Series 2018, Ref. RB

    5.00%     07/15/2033        1,630      1,561,164

Brazoria County Industrial Development Corp. (Gladieux Metals Recycling LLC);

           

Series 2019, RB(f)

    7.00%     03/01/2039        400      370,007

Series 2019, RB(e)(f)

    9.00%     03/01/2039        2,095      2,209,288

Calhoun (County of), TX Navigation Industrial Development Authority (Max Midstream Texas LLC); Series 2021, RN(e)(f)

    3.63%     07/01/2026        7,000      6,337,290

Clifton Higher Education Finance Corp.; Series 2018 A, RB

    6.00%     03/01/2029        989      997,260

Clifton Higher Education Finance Corp. (International Leadership of Texas); Series 2018 D, RB

    5.75%     08/15/2033        2,000      2,034,164

Crandall (City of), TX;

           

Series 2021, RB(e)

    4.13%     09/15/2026        100      95,755

Series 2021, RB(e)

    4.75%     09/15/2031        100      92,460

Series 2021, RB(e)

    5.25%     09/15/2051        500      461,849

Edinburg Economic Development Corp.; Series 2019, RB(e)

    4.00%     08/15/2029        585      547,919

Gulf Coast Industrial Development Authority; Series 1998, RB(f)

    8.00%     04/01/2028        340      340,284

Harris (County of) & Houston (City of), TX Sports Authority; Series 2014 A, Ref. RB

    5.00%     11/15/2030        2,000      2,046,765

Houston (City of), TX;

           

Series 2002 A, RB (INS - AGM)(d)(f)

    5.13%     07/01/2032        5      5,004

Series 2002 B, RB (INS - AGM)(d)

    5.00%     07/01/2032        50      50,072

Series 2011, Ref. RB(f)

    6.50%     07/15/2030        1,450      1,450,756

Series 2015 B-1, RB(f)

    5.00%     07/15/2030        5,000      4,949,856

Houston (City of), TX Airport System (United Airlines, Inc. Terminal E);

           

Series 2014, Ref. RB(f)

    4.75%     07/01/2024        3,225      3,222,331

Series 2014, Ref. RB(f)

    5.00%     07/01/2029        1,500      1,478,417

Series 2020 A, Ref. RB(f)

    5.00%     07/01/2027        2,325      2,324,103

Houston (City of), TX Airport System (United Airlines, Inc.); Series 2018, RB(f)

    5.00%     07/15/2028        1,750      1,748,907

Houston Higher Education Finance Corp. (Houston Baptist University); Series 2021, RB

    3.38%     10/01/2037        700      577,756

Love Field Airport Modernization Corp. (Southwest Airlines Co.); Series 2012, RB(f)

    5.00%     11/01/2028        3,000      3,004,202

Lower Colorado River Authority (LCRA Transmission Services Corp.); Series 2023, Ref. RB (INS - AGM)(d)

    5.00%     05/15/2035        2,000      2,284,839

Mesquite Health Facilities Development Corp. (Christian Care Centers, Inc.); Series 2016, Ref. RB (Acquired 05/08/2018-12/17/2018; Cost $647,140)(b)(c)

    5.00%     02/15/2035        650      461,500

Mission Economic Development Corp. (Natgasoline); Series 2018, Ref. RB(e)(f)

    4.63%     10/01/2031        7,500      7,330,975

New Hope Cultural Education Facilities Finance Corp. (Carillon Lifecare Community);

           

Series 2016, Ref. RB

    4.00%     07/01/2023        1,235      1,225,512

Series 2016, Ref. RB

    4.00%     07/01/2028        2,915      2,557,262

Series 2016, Ref. RB

    5.00%     07/01/2036        3,950      3,221,563

New Hope Cultural Education Facilities Finance Corp. (Cumberland Academy); Series 2020 A, RB(e)

    4.00%     08/15/2030        5,000      4,668,308

New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries); Series 2022, Ref. RB

    4.00%     01/01/2032        1,500      1,286,347

New Hope Cultural Education Facilities Finance Corp. (MRC Senior Living-The Langford); Series 2016 A, RB

    5.38%     11/15/2036        1,165      1,031,693

New Hope Cultural Education Facilities Finance Corp. (Outlook at Windhaven (The)); Series 2022 B3, RB

    4.25%     10/01/2026        1,100      1,088,816

New Hope Cultural Education Facilities Finance Corp. (Presbyterian Village North); Series 2018, Ref. RB

    5.00%     10/01/2024        1,650      1,637,842

New Hope Cultural Education Facilities Finance Corp. (Wesleyan Homes, Inc.); Series 2019, Ref. RB

    5.00%     01/01/2039        500      409,375

Port Beaumont Navigation District (Jefferson Gulf Coast Energy);

           

Series 2020, Ref. RB(e)(f)

    3.63%     01/01/2035        3,000      2,442,330

Series 2021, RB(e)(f)

    2.50%     01/01/2030        3,150      2,582,963

Series 2021, RB(e)(f)

    2.63%     01/01/2031        800      643,229

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

21                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

Texas–(continued)

           

Red River Health Facilities Development Corp. (MRC Crossing);

           

Series 2014 A, RB(g)

    6.75%     11/15/2024      $ 95      $            97,786

Series 2014 A, RB(a)(g)

    7.50%     11/15/2024        100      106,849

Series 2014 A, RB(a)(g)

    7.75%     11/15/2024        1,815      1,946,757

Series 2014 A, RB(a)(g)

    8.00%     11/15/2024        1,355      1,457,754

Rowlett (City of), TX (Bayside Public Improvement District North Improvement Area);

           

Series 2016, RB

    4.90%     09/15/2024        130      128,581

Series 2016, RB

    5.38%     09/15/2030        670      664,222

Tarrant County Cultural Education Facilities Finance Corp. (Air Force Village Obligated Group); Series 2016, Ref. RB

    5.00%     05/15/2037        1,400      1,272,299

Tarrant County Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home);

           

Series 2017 A, RB (Acquired 12/15/2016; Cost $1,011,589)(b)(c)

    6.00%     02/15/2031        1,000      550,000

Series 2017, RB (Acquired 11/05/2019; Cost $3,271,528)(b)(c)

    6.38%     02/15/2041        3,000      1,650,000

Tarrant County Cultural Education Facilities Finance Corp. (MRC Stevenson Oaks);

           

Series 2020 B-2, Ref. RB

    3.00%     11/15/2026        450      429,857

Series 2020, Ref. RB

    4.00%     11/15/2027        1,000      945,649

Series 2020, Ref. RB

    6.25%     11/15/2031        1,000      970,561

Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way); Series 2020, RB

    5.75%     12/01/2054        2,355      1,530,644

Temple (City of), TX; Series 2018 A, RB

    5.00%     08/01/2028        4,320      4,399,500

Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC Segments 3A and 3B Facility); Series 2013, RB(f)

    6.75%     06/30/2043        10,000      10,117,260

Ysleta Independent School District Public Facility Corp.; Series 2001, Ref. RB (INS - AMBAC)(d)

    5.38%     11/15/2024        30      30,102
                           103,117,357

Utah–1.70%

           

Black Desert Public Infrastructure District;

           

Series 2021 A, GO Bonds(e)

    3.25%     03/01/2031        1,050      925,551

Series 2021 A, GO Bonds(e)

    3.50%     03/01/2036        1,750      1,450,004

Mida Golf and Equestrian Center Public Infrastructure District;

           

Series 2021, GO Bonds(e)

    4.13%     06/01/2036        1,790      1,481,066

Series 2021, GO Bonds(e)

    4.25%     06/01/2041        2,205      1,751,441

Mida Mountain Village Public Infrastructure District;

           

Series 2020 A, RB(e)

    4.25%     08/01/2035        1,645      1,509,815

Series 2020 A, RB(e)

    4.50%     08/01/2040        1,205      1,082,942

Military Installation Development Authority; Series 2021 A-2, RB

    4.00%     06/01/2036        1,500      1,247,256

Salt Lake City (City of), UT; Series 2017 A, RB(f)

    5.00%     07/01/2036        3,000      3,098,481

UIPA Crossroads Public Infrastructure District; Series 2021, RB(e)

    4.13%     06/01/2041        3,000      2,568,733

Utah (State of) Charter School Finance Authority (Ascent Academies of Utah);

           

Series 2022, RB(e)

    4.25%     06/15/2027        1,810      1,704,082

Series 2022, RB(e)

    4.50%     06/15/2032        2,000      1,801,835

Series 2022, RB(e)

    5.00%     06/15/2037        2,515      2,266,795

Utah (State of) Charter School Finance Authority (Freedom Academy Foundation (The)); Series 2017, Ref. RB(e)

    4.50%     06/15/2027        170      165,595

Utah (State of) Charter School Finance Authority (Merit Preparatory Academy);

           

Series 2019 A, RB(e)

    4.50%     06/15/2029        500      472,674

Series 2019 A, RB(e)

    5.00%     06/15/2034        1,270      1,193,612

Utah (State of) Charter School Finance Authority (Renaissance Academy);

           

Series 2020, Ref. RB(e)

    3.50%     06/15/2025        260      253,024

Series 2020, Ref. RB(e)

    4.00%     06/15/2030        520      491,276

Series 2020, Ref. RB(e)

    5.00%     06/15/2040        350      338,181
                           23,802,363

Virgin Islands–0.22%

           

Matching Fund Special Purpose Securitization Corp.;

           

Series 2022 A, Ref. RB

    5.00%     10/01/2025        1,000      1,021,793

Series 2022 A, Ref. RB

    5.00%     10/01/2026        1,000      1,027,978

Virgin Islands (Government of) Port Authority; Series 2014 A, Ref. RB(f)

    5.00%     09/01/2023        1,000      997,045
                           3,046,816

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

22                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

Virginia–0.85%

           

Hanover (County of), VA Economic Development Authority (Covenant Woods); Series 2018, Ref. RB

    5.00%     07/01/2038      $ 250      $          240,653

Norfolk (City of), VA Redevelopment & Housing Authority (Fort Norfolk Retirement Community, Inc. - Harbor’s Edge);

           

Series 2019 A, RB

    5.00%     01/01/2034        1,000      926,372

Series 2019 B, RB

    4.00%     01/01/2025        3,200      3,109,726

Peninsula Town Center Community Development Authority;

           

Series 2018, Ref. RB(e)

    4.00%     09/01/2023        140      139,219

Series 2018, Ref. RB(e)

    4.50%     09/01/2028        1,450      1,405,543

Roanoke (City of), VA Economic Development Authority (Richfield Living); Series 2020, RB (Acquired 01/23/2020; Cost $770,000)(c)

    4.30%     09/01/2030        770      585,298

Virginia (Commonwealth of) Small Business Financing Authority (95 Express Lanes LLC); Series 2022, Ref. RB(f)

    5.00%     01/01/2037        3,200      3,302,906

Virginia (Commonwealth of) Small Business Financing Authority (Covanta); Series 2018, RB(a)(e)(f)

    5.00%     07/01/2038        2,310      2,152,694
                           11,862,411

Washington–1.21%

           

Kalispel Tribe of Indians;

           

Series 2018 A, RB(e)

    5.00%     01/01/2032        395      407,846

Series 2018 B, RB(e)

    5.00%     01/01/2032        100      103,252

Kelso (City of), WA Housing Authority (Chinook & Columbia Apartments); Series 1998, RB

    5.60%     03/01/2028        105      104,989

King (County of), WA Housing Authority (Rural Preservation); Series 1997, RB(f)

    5.75%     01/01/2028        5      5,007

King (County of), WA Public Hospital District No. 4; Series 2015 A, RB

    6.25%     12/01/2045        1,175      1,202,838

Port of Seattle Industrial Development Corp. (Delta Airlines); Series 2012, Ref. RB(f)

    5.00%     04/01/2030        6,475      6,478,435

Washington (State of) Health Care Facilities Authority (Providence Health & Services); Series 2014 C, RB

    5.00%     10/01/2044        4,165      4,126,478

Washington (State of) Housing Finance Commission (Bayview Manor Homes); Series 2016 A, Ref. RB(e)

    4.00%     07/01/2026        440      418,082

Washington (State of) Housing Finance Commission (Judson Park);

           

Series 2018, Ref. RB(e)

    3.70%     07/01/2023        80      79,526

Series 2018, Ref. RB(e)

    5.00%     07/01/2038        385      337,940

Washington (State of) Housing Finance Commission (Presbyterian Retirement Co.); Series 2016, Ref. RB(e)

    5.00%     01/01/2036        1,755      1,489,938

Washington (State of) Housing Finance Commission (Spokane International Academy); Series 2021 A, RB(e)

    4.00%     07/01/2040        1,640      1,346,483

Washington (State of) Housing Finance Commission (The Hearthstone); Series 2018 A, Ref. RB(e)

    4.50%     07/01/2028        965      881,575
                           16,982,389

West Virginia–0.45%

           

Harrison (County of), WV Commission (Charles Pointe No. 2); Series 2008 A, Ref. RB

    6.50%     06/01/2023        175      175,030

Harrison (County of), WV County Commission (Charles Pointe Economic Opportunity Development District); Series 2019 A, RB(e)

    5.75%     06/01/2042        1,000      729,767

Monongalia (County of), WV Building Commission (Monongalia Health System Obligated Group);

           

Series 2015, Ref. RB

    5.00%     07/01/2025        360      365,830

Series 2015, Ref. RB

    5.00%     07/01/2026        460      465,667

Series 2015, Ref. RB

    5.00%     07/01/2027        560      567,475

Series 2015, Ref. RB

    4.00%     07/01/2035        190      179,504

Monongalia (County of), WV Commission Special District (University Town Centre Economic Opportunity Development District); Series 2017 A, Ref. RB(e)

    4.50%     06/01/2027        2,915      2,880,462

West Virginia (State of) Economic Development Authority (Entsorga West Virginia LLC);

           

Series 2016, RB(e)(f)

    6.75%     02/01/2026        1,000      700,000

Series 2018, RB(e)(f)

    8.75%     02/01/2036        320      256,000
                           6,319,735

Wisconsin–4.05%

           

Lomira (Village of), WI Community Development Authority;

           

Series 2018 B, Ref. RB

    3.65%     10/01/2028        705      704,994

Series 2018 B, Ref. RB

    3.75%     10/01/2029        175      169,144

Wisconsin (State of) Health & Educational Facilities Authority (American Baptist Homes of the Midwest Obligated Group); Series 2017, Ref. RB

    5.00%     08/01/2027        450      424,759

Wisconsin (State of) Health & Educational Facilities Authority (Benevolent Corp. Cedar Community); Series 2017, Ref. RB

    5.00%     06/01/2028        1,205      1,192,327

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

23                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		   Maturity
Date		      Principal
Amount
(000)		      Value

Wisconsin–(continued)

           

Wisconsin (State of) Health & Educational Facilities Authority (Camillus Health System);

           

Series 2019, Ref. RB

    5.00%     11/01/2028      $ 935      $          889,721

Series 2019, Ref. RB

    5.00%     11/01/2030        1,035      969,651

Series 2019, Ref. RB

    5.00%     11/01/2039        1,000      860,486

Wisconsin (State of) Health & Educational Facilities Authority (Clement Manor, Inc.); Series 2019, Ref. RB

    4.25%     08/01/2034        1,000      770,359

Wisconsin (State of) Health & Educational Facilities Authority (Hope Christian Schools);

           

Series 2021, RB

    3.00%     12/01/2031        560      481,040

Series 2021, RB

    4.00%     12/01/2041        850      656,140

Wisconsin (State of) Health & Educational Facilities Authority (Oakwood Lutheran Senior Ministries); Series 2021, Ref. RB

    4.00%     01/01/2037        1,470      1,211,992

Wisconsin (State of) Public Finance Authority;

           

Series 2020 A, RB(e)

    4.00%     03/01/2030        1,810      1,639,344

Series 2022 B, RB(e)

    7.00%     02/01/2028        700      685,359

Series 2022, RB(e)

    5.38%     06/01/2037        335      328,603

Wisconsin (State of) Public Finance Authority (Alabama Proton Therapy Center); Series 2017 A, RB(e)

    6.25%     10/01/2031        2,000      1,699,339

Wisconsin (State of) Public Finance Authority (Alamance Community School); Series 2021 A, RB(e)

    5.00%     06/15/2041        510      431,696

Wisconsin (State of) Public Finance Authority (American Dream at Meadowlands);

           

Series 2017, RB(b)(e)

    6.25%     08/01/2027        500      375,000

Series 2017, RB(b)(e)

    6.75%     08/01/2031        500      275,000

Wisconsin (State of) Public Finance Authority (Ascend Leadership Academy);

           

Series 2021 A, RB(e)

    4.25%     06/15/2031        550      479,324

Series 2021 A, RB(e)

    5.00%     06/15/2041        615      518,823

Wisconsin (State of) Public Finance Authority (Bancroft Neurohealth);

           

Series 2016 A, RB(e)

    5.00%     06/01/2025        650      644,918

Series 2016 A, RB(e)

    5.00%     06/01/2026        1,005      989,863

Wisconsin (State of) Public Finance Authority (Community School of Davidson); Series 2018, RB

    5.00%     10/01/2033        390      386,197

Wisconsin (State of) Public Finance Authority (Coral Academy of Science Reno);

           

Series 2019, Ref. RB(e)

    5.00%     06/01/2029        375      371,406

Series 2019, Ref. RB(e)

    5.00%     06/01/2039        1,415      1,312,247

Wisconsin (State of) Public Finance Authority (Delray Beach Radiation Therapy Center); Series 2017 A, RB (Acquired 04/03/2017; Cost $1,500,000)(b)(c)(e)

    5.75%     11/01/2024        1,500      900,000

Wisconsin (State of) Public Finance Authority (Explore Academy);

           

Series 2020 A, RB(e)

    6.13%     02/01/2039        4,310      3,878,704

Series 2020, RB(e)

    7.00%     02/01/2025        285      283,372

Series 2022 A, RB(e)

    6.13%     02/01/2039        4,175      3,757,214

Wisconsin (State of) Public Finance Authority (Mallard Creek Stem Academy); Series 2019 A, RB(e)

    4.38%     06/15/2029        1,655      1,588,467

Wisconsin (State of) Public Finance Authority (Million Air Two LLC General Aviation Facilities);

           

Series 2017 A, RB(f)

    7.25%     06/01/2035        3,800      3,611,455

Series 2017, Ref. RB(e)(f)

    7.13%     06/01/2041        160      142,631

Wisconsin (State of) Public Finance Authority (New Plan Learning, Inc.); Series 2021 A, Ref. RB

    3.75%     07/01/2031        3,780      3,266,722

Wisconsin (State of) Public Finance Authority (North Carolina Leadership Academy);

           

Series 2019, RB(e)

    4.00%     06/15/2029        555      522,483

Series 2019, RB(e)

    5.00%     06/15/2039        440      413,339

Series 2019, RB(e)

    5.00%     06/15/2049        540      478,726

Wisconsin (State of) Public Finance Authority (Proton International);

           

Series 2021 A, RB(e)

    5.50%     01/01/2031        5,375      4,672,027

Series 2021 A, RB(e)

    6.50%     01/01/2041        3,110      2,481,460

Wisconsin (State of) Public Finance Authority (Roseman University of Health Sciences); Series 2022, Ref. RB(e)

    4.00%     04/01/2032        915      842,538

Wisconsin (State of) Public Finance Authority (Searstone CCRC);

           

Series 2021 A, Ref. RB(e)

    4.00%     06/01/2031        2,500      2,241,557

Series 2021 A, Ref. RB(e)

    4.00%     06/01/2036        1,500      1,236,802

Wisconsin (State of) Public Finance Authority (Uwharrie Charter Academy); Series 2022 A, RB(e)

    4.50%     06/15/2032        500      467,438

Wisconsin (State of) Public Finance Authority (WhiteStone); Series 2017, Ref. RB(e)

    4.00%     03/01/2027        910      866,625

Wisconsin (State of) Public Finance Authority (Wingate University);

           

Series 2018 A, Ref. RB

    5.25%     10/01/2029        1,825      1,895,450

Series 2018 A, Ref. RB

    5.25%     10/01/2030        1,925      1,995,481

Series 2018 A, Ref. RB

    5.25%     10/01/2031        1,030      1,065,222

Series 2018 A, Ref. RB

    5.25%     10/01/2032        720      742,937

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

24                    Invesco Short Duration High Yield Municipal Fund

      Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value

Wisconsin–(continued)

           

Wisconsin (State of) Public Finance Authority (Wittenberg University); Series 2016, RB(e)

      5.25 %      12/01/2039      $ 1,000      $          870,702

 

           56,689,084

 

Total Municipal Obligations (Cost $1,469,454,824)

            1,388,625,392

 

U.S. Dollar Denominated Bonds & Notes–0.21%

           

California–0.21%

           

CalPlant I LLC;

           

Series 21A(e)(l)

      9.50 %      06/05/2023        255      255,000

 

Series 21B(e)(l)

      9.50 %      06/05/2023        955      955,000

 

Series 22A(e)(l)

      9.50 %      06/05/2023        530      530,000

 

Series 22B(e)(l)

      9.50 %      06/05/2023        45      45,000

 

Series 22C(e)(l)

      9.50 %      06/05/2023        345      345,000

 

Series 22X(e)

      9.50 %      03/31/2023        520      522,813

 

Series 23A(e)(l)

      9.50 %      03/31/2023        180      180,000

 

Series 23B(e)

      9.50 %      03/31/2023        165      165,000

 

Total U.S. Dollar Denominated Bonds & Notes (Cost $2,995,000)

            2,997,813

 

                  Shares       

Common Stocks & Other Equity Interests–0.01%

           

Resolute Forest Products, Inc. (Cost $80,903)

           6,757      148,113

 

TOTAL INVESTMENTS IN SECURITIES(p)-99.32% (Cost $1,472,530,727)

            1,391,771,318

 

FLOATING RATE NOTE OBLIGATIONS-(0.92)%

           

Notes with interest and fee rates ranging from 3.97% to 3.98% at 02/28/2023 and contractual maturities of collateral ranging from 05/01/2025 to 06/15/2031 (See Note 1J)(q)

            (12,950,000)

 

BORROWINGS–(0.12)%

            (1,700,000)

 

OTHER ASSETS LESS LIABILITIES-1.72%

            24,142,110

 

NET ASSETS–100.00%

            $1,401,263,428

 

 

Investment Abbreviations:
AGC    - Assured Guaranty Corp.
AGM    - Assured Guaranty Municipal Corp.
AMBAC    - American Municipal Bond Assurance Corp.
BAM    - Build America Mutual Assurance Co.
CEP    - Credit Enhancement Provider
COP    - Certificates of Participation
FGIC    - Financial Guaranty Insurance Company
GNMA    - Government National Mortgage Association
GO    - General Obligation
IDR    - Industrial Development Revenue Bonds
INS    - Insurer
LOC    - Letter of Credit
NATL    - National Public Finance Guarantee Corp.
PCR    - Pollution Control Revenue Bonds
RB    - Revenue Bonds
Ref.    - Refunding
RN    - Revenue Notes
SGI    - Syncora Guarantee, Inc.
Wts.    - Warrants

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

25                    Invesco Short Duration High Yield Municipal Fund

Notes to Schedule of Investments:

 

(a) 

Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

 

(b) 

Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 28, 2023 was $28,886,363, which represented 2.06% of the Fund’s Net Assets.

 

(c) 

Restricted security. The aggregate value of these securities at February 28, 2023 was $16,488,679, which represented 1.18% of the Fund’s Net Assets.

(d) 

Principal and/or interest payments are secured by the bond insurance company listed.

 

(e) 

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “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 February 28, 2023 was $342,179,946, which represented 24.42% of the Fund’s Net Assets.

(f) 

Security subject to the alternative minimum tax.

(g) 

Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.

(h)

Zero coupon bond issued at a discount.

 

(i) 

Security is subject to a reimbursement 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 TOB Trusts. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $10,940,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the TOB Trusts.

(j) 

Underlying security related to TOB Trusts entered into by the Fund. See Note 1J.

 

(k) 

Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.

(l) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

 

(m) 

The issuer is paying less than stated interest, but is not in default on principal because scheduled principal payments have not yet begun.

(n)

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2023.

 

(o) 

Convertible capital appreciation bond. The interest rate shown represents the coupon rate at which the bond will accrue at a specified future date.

 

(p) 

Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations. No concentration of any single entity was greater than 5% each.

 

(q) 

Floating rate note obligations related to securities held. The interest and fee rates shown reflect the rates in effect at February 28, 2023. At February 28, 2023, the Fund’s investments with a value of $18,561,570 are held by TOB Trusts and serve as collateral for the $12,950,000 in the floating rate note obligations outstanding at that date.

 

Open Futures Contracts(a)  

 

  
     Number of      Expiration      Notional            Unrealized  
Short Futures Contracts    Contracts      Month      Value     Value      Appreciation  

 

  

Interest Rate Risk

              

 

  

U.S. Treasury 10 Year Notes

      206        June-2023        $(23,001,188)       $22,531        $22,531  

 

  

 

(a) 

Futures contracts collateralized by $3,025,000 cash held with Goldman Sachs & Co., the futures commission merchant.

Portfolio Composition

By credit sector, based on total investments

As of February 28, 2023

 

Revenue Bonds

      89.71%  

 

  

General Obligation Bonds

      9.81     

 

  

Pre-Refunded Bonds

      0.48     

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

26                    Invesco Short Duration High Yield Municipal Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $1,472,530,727)

    $ 1,391,771,318  

 

  

Deposits with brokers:

   

Cash collateral – exchange-traded futures contracts

      3,025,000  

 

  

Receivable for:

   

Investments sold

      4,821,155  

 

  

Fund shares sold

      1,135,547  

 

  

Interest

      19,396,398  

 

  

Investments matured, at value (Cost $6,524,998)

      5,108,373  

 

  

Investment for trustee deferred compensation and retirement plans

      99,422  

 

  

Other assets

      512,871  

 

  

Total assets

      1,425,870,084  

 

  

Liabilities:

   

Floating rate note obligations

      12,950,000  

 

  

Other investments:

   

Variation margin payable – futures contracts

      9,646  

 

  

Payable for:

   

Borrowings

      1,700,000  

 

  

Investments purchased

      3,399,046  

 

  

Dividends

      1,683,644  

 

  

Fund shares reacquired

      1,610,682  

 

  

Amount due custodian

      2,341,278  

 

  

Accrued fees to affiliates

      508,753  

 

  

Accrued interest expense

      25,442  

 

  

Accrued trustees’ and officers’ fees and benefits

      1,423  

 

  

Accrued other operating expenses

      277,320  

 

  

Trustee deferred compensation and retirement plans

      99,422  

 

  

Total liabilities

      24,606,656  

 

  

Net assets applicable to shares outstanding

    $ 1,401,263,428  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 1,962,776,910  

 

  

Distributable earnings (loss)

      (561,513,482 ) 

 

  
   $ 1,401,263,428  

 

  

Net Assets:

   

Class A

    $ 842,384,704  

 

  

Class C

    $ 66,643,480  

 

  

Class Y

    $ 460,946,308  

 

  

Class R5

    $ 124,620  

 

  

Class R6

    $ 31,164,316  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

   

Class A

      90,445,397  

 

  

Class C

      7,164,074  

 

  

Class Y

      49,462,061  

 

  

Class R5

      13,344  

 

  

Class R6

      3,341,510  

 

  

Class A:

   

Net asset value per share

    $ 9.31  

 

  

Maximum offering price per share
(Net asset value of $9.31 ÷ 97.50%)

    $ 9.55  

 

  

Class C:

   

Net asset value and offering price per share

    $ 9.30  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 9.32  

 

  

Class R5:

   

Net asset value and offering price per share

    $ 9.34  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 9.33  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

27                    Invesco Short Duration High Yield Municipal Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

 

Interest

    $ 33,838,935  

 

  

Expenses:

 

Advisory fees

      2,907,995  

 

  

Administrative services fees

      107,998  

 

  

Custodian fees

      6,309  

 

  

Distribution fees:

   

Class A

      1,098,043  

 

  

Class C

      350,739  

 

  

Interest, facilities and maintenance fees

      760,493  

 

  

Transfer agent fees – A, C and Y

      603,305  

 

  

Transfer agent fees – R5

      2,739  

 

  

Transfer agent fees – R6

      2,374  

 

  

Trustees’ and officers’ fees and benefits

      11,941  

 

  

Registration and filing fees

      95,404  

 

  

Reports to shareholders

      25,802  

 

  

Professional services fees

      103,758  

 

  

Other

      110,826  

 

  

Total expenses

      6,187,726  

 

  

Less: Expense offset arrangement(s)

      (2,464 ) 

 

  

Net expenses

      6,185,262  

 

  

Net investment income

      27,653,673  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Unaffiliated investment securities (includes net gains (losses) from securities sold to affiliates of $(1,175,065))

      (142,290,196 ) 

 

  

Futures contracts

      881,849  

 

  
     (141,408,347 ) 

 

  

Change in net unrealized appreciation (depreciation) of:

   

Unaffiliated investment securities

      100,438,441  

 

  

Futures contracts

      (359,185 ) 

 

  
     100,079,256  

 

  

Net realized and unrealized gain (loss)

      (41,329,091 ) 

 

  

Net increase (decrease) in net assets resulting from operations

    $ (13,675,418 ) 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

28                    Invesco Short Duration High Yield Municipal Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,     August 31,  
      2023     2022  

Operations:

     

Net investment income

    $ 27,653,673     $ 47,478,640  

 

  

Net realized gain (loss)

      (141,408,347 )      (27,843,584 ) 

 

  

Change in net unrealized appreciation (depreciation)

      100,079,256       (129,965,122 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      (13,675,418 )      (110,330,066 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (16,275,753 )      (32,038,329 ) 

 

  

Class C

      (1,024,813 )      (2,303,684 ) 

 

  

Class Y

      (9,194,871 )      (16,315,132 ) 

 

  

Class R5

      (104,630 )      (439,600 ) 

 

  

Class R6

      (634,702 )      (980,820 ) 

 

  

Total distributions from distributable earnings

      (27,234,769 )      (52,077,565 ) 

 

  

Share transactions–net:

     

Class A

      (47,672,665 )      81,054,772  

 

  

Class C

      (8,150,146 )      (6,882,430 ) 

 

  

Class Y

      (23,168,522 )      180,742,643  

 

  

Class R5

      (9,500,664 )      (3,413,519 ) 

 

  

Class R6

      1,054,679       13,644,959  

 

  

Net increase (decrease) in net assets resulting from share transactions

      (87,437,318 )      265,146,425  

 

  

Net increase (decrease) in net assets

      (128,347,505 )      102,738,794  

 

  

Net assets:

     

Beginning of period

      1,529,610,933       1,426,872,139  

 

  

End of period

    $ 1,401,263,428     $ 1,529,610,933  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

29                    Invesco Short Duration High Yield Municipal Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

                                                 Supplemental        
                                                 ratio of        
                                                 expenses        
                                         Ratio of   Ratio of   to average        
                                         expenses   expenses   net assets        
               Net gains                         to average   to average net   with fee waivers        
               (losses)                         net assets   assets without   (excluding   Ratio of net    
     Net asset         on securities       Dividends                 with fee waivers   fee waivers   interest,   investment    
     value,    Net    (both   Total from   from net   Net asset        Net assets,    and/or   and/or   facilities and   income    
     beginning    investment    realized and   investment   investment   value, end        end of period    expenses   expenses   maintenance   to average   Portfolio
      of period    income(a)    unrealized)   operations   income   of period    Total return (b)   (000’s omitted)    absorbed   absorbed   fees)   net assets   turnover (c)

Class A

                                                         

Six months ended 02/28/23

      $ 9.58      $ 0.17      $ (0.27 )     $ (0.10 )     $ (0.17 )     $ 9.31        (1.02 )%     $ 842,385        0.89 %(d)       0.89 %(d)       0.79 %(d)       3.75 %(d)       20 %

Year ended 08/31/22

        10.67        0.32        (1.06 )       (0.74 )       (0.35 )       9.58        (7.07 )       914,354        0.84       0.84       0.77       3.13       26

Year ended 08/31/21

        10.17        0.34        0.51       0.85       (0.35 )       10.67        8.50       933,441        0.86       0.86       0.79       3.25       19

Year ended 08/31/20

        10.86        0.37        (0.71 )       (0.34 )       (0.35 )       10.17        (3.19 )       826,655        0.84       0.88       0.79       3.59       49

Year ended 08/31/19

        10.48        0.36        0.37       0.73       (0.35 )       10.86        7.09       193,076        0.86       0.98       0.79       3.40       24

Year ended 08/31/18

        10.47        0.34        0.01       0.35       (0.34 )       10.48        3.46       109,307        0.86       1.06       0.79       3.26       26

Class C

                                                         

Six months ended 02/28/23

        9.56        0.14        (0.26 )       (0.12 )       (0.14 )       9.30        (1.29 )       66,643        1.64 (d)        1.64 (d)        1.55 (d)        3.00 (d)        20

Year ended 08/31/22

        10.65        0.24        (1.06 )       (0.82 )       (0.27 )       9.56        (7.79 )       76,878        1.59       1.59       1.52       2.38       26

Year ended 08/31/21

        10.16        0.26        0.50       0.76       (0.27 )       10.65        7.60       92,982        1.61       1.61       1.54       2.50       19

Year ended 08/31/20

        10.84        0.29        (0.70 )       (0.41 )       (0.27 )       10.16        (3.84 )       167,426        1.59       1.63       1.54       2.84       49

Year ended 08/31/19

        10.46        0.28        0.37       0.65       (0.27 )       10.84        6.29       52,195        1.61       1.73       1.54       2.65       24

Year ended 08/31/18

        10.45        0.26        0.02       0.28       (0.27 )       10.46        2.69       52,446        1.61       1.81       1.54       2.51       26

Class Y

                                                         

Six months ended 02/28/23

        9.58        0.19        (0.27 )       (0.08 )       (0.18 )       9.32        (0.79 )       460,946        0.64 (d)        0.64 (d)        0.55 (d)        4.00 (d)        20

Year ended 08/31/22

        10.67        0.34        (1.06 )       (0.72 )       (0.37 )       9.58        (6.84 )       497,651        0.59       0.59       0.52       3.38       26

Year ended 08/31/21

        10.18        0.37        0.50       0.87       (0.38 )       10.67        8.66       365,892        0.61       0.61       0.54       3.50       19

Year ended 08/31/20

        10.87        0.40        (0.72 )       (0.32 )       (0.37 )       10.18        (2.94 )       280,243        0.59       0.63       0.54       3.84       49

Year ended 08/31/19

        10.48        0.39        0.37       0.76       (0.37 )       10.87        7.45       216,579        0.61       0.73       0.54       3.65       24

Year ended 08/31/18

        10.48        0.37        0.00       0.37       (0.37 )       10.48        3.62       102,388        0.61       0.81       0.54       3.51       26

Class R5

                                                         

Six months ended 02/28/23

        9.60        0.19        (0.27 )       (0.08 )       (0.18 )       9.34        (0.79 )       125        0.66 (d)        0.66 (d)        0.57 (d)        3.98 (d)        20

Year ended 08/31/22

        10.70        0.35        (1.08 )       (0.73 )       (0.37 )       9.60        (6.93 )       9,800        0.62       0.62       0.55       3.35       26

Year ended 08/31/21

        10.20        0.37        0.51       0.88       (0.38 )       10.70        8.78       14,437        0.61       0.61       0.54       3.50       19

Year ended 08/31/20

        10.88        0.40        (0.71 )       (0.31 )       (0.37 )       10.20        (2.83 )       10        0.57       0.57       0.52       3.86       49

Year ended 08/31/19

        10.49        0.39        0.37       0.76       (0.37 )       10.88        7.44       11        0.61       0.68       0.54       3.65       24

Year ended 08/31/18

        10.48        0.37        0.01       0.38       (0.37 )       10.49        3.72       11        0.61       0.82       0.54       3.51       26

Class R6

                                                         

Six months ended 02/28/23

        9.59        0.19        (0.26 )       (0.07 )       (0.19 )       9.33        (0.75 )       31,164        0.57 (d)        0.57 (d)        0.48 (d)        4.07 (d)        20

Year ended 08/31/22

        10.68        0.35        (1.06 )       (0.71 )       (0.38 )       9.59        (6.77 )       30,929        0.53       0.53       0.46       3.44       26

Year ended 08/31/21

        10.19        0.37        0.51       0.88       (0.39 )       10.68        8.73       20,121        0.54       0.54       0.47       3.57       19

Year ended 08/31/20

        10.88        0.40        (0.72 )       (0.32 )       (0.37 )       10.19        (2.94 )       12,639        0.57       0.57       0.52       3.86       49

Year ended 08/31/19

        10.49        0.39        0.37       0.76       (0.37 )       10.88        7.44       15,350        0.61       0.68       0.54       3.65       24

Year ended 08/31/18

        10.48        0.37        0.01       0.38       (0.37 )       10.49        3.72       9,738        0.61       0.76       0.54       3.52       26

 

(a) 

Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

(c) 

Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended August 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $1,007,963,117 in connection with the acquisition of Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund into the Fund.

(d) 

Annualized.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

30                    Invesco Short Duration High Yield Municipal Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Short Duration High Yield Municipal Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is to seek federal tax-exempt current income and taxable capital appreciation.

The Fund currently consists of five different classes of shares: Class A, Class C, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations – Securities, including restricted securities, are valued according to the following policy.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades 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 using prices provided by an independent pricing service they may be considered fair valued.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the 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.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

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 may be used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from    

 

31                    Invesco Short Duration High Yield Municipal Fund

 

settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions – Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Expenses –Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses and other expenses associated with establishing and maintaining the line of credit. In addition, interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any, are included.

H.

Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

I.

Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

J.

Floating Rate Note Obligations – The Fund invests in inverse floating rate securities, such as Tender Option Bonds (“TOBs”), for investment purposes and to enhance the yield of the Fund. Such securities may be purchased in the secondary market without first owning an underlying bond but generally are created through the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer or by the Fund (“TOB Trusts”) in exchange for cash and residual interests in the TOB Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The TOB 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 TOB Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the TOB Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate securities) 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 TOB Trust to the Fund, thereby collapsing the TOB Trust. Inverse floating rate securities 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.

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 decreases in the value of such securities in response to changes in interest rates to a greater extent than fixed rate securities 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 notes created by the TOB Trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such notes for repayment of principal, may not be able to be remarketed to third parties. In such cases, the TOB Trust holding the fixed rate bonds may be collapsed with the entity that contributed the fixed rate bonds to the TOB Trust. In the case where a TOB Trust is collapsed with the Fund, the Fund will be required to repay the principal amount of the tendered securities, which may require the Fund to sell other portfolio holdings to raise cash to meet that obligation. The Fund could therefore be required to sell other portfolio holdings at a    

 

32                    Invesco Short Duration High Yield Municipal Fund

disadvantageous time or price to raise cash to meet this obligation, which risk will be heightened during times of market volatility, illiquidity or uncertainty. The embedded leverage in the TOB Trust could cause the Fund to lose more money than the value of the asset it has contributed to the TOB Trust and greater levels of leverage create the potential for greater losses. In addition, a Fund may enter into reimbursement agreements with the liquidity provider of certain TOB transactions in connection with certain residuals held by the Fund. These agreements commit a Fund to reimburse the liquidity provider to the extent that the liquidity provider must provide cash to a TOB Trust, including following the termination of a TOB Trust resulting from a mandatory tender event (“liquidity shortfall”). The reimbursement agreement will effectively make the Fund liable for the amount of the negative difference, if any, between the liquidation value of the underlying security and the purchase price of the floating rate notes issued by the TOB Trust.

The Fund accounts for the transfer of fixed rate bonds to the TOB 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 carrying amount of the Fund’s floating rate note obligations as reported on the Statement of Assets and Liabilities approximates its fair value. 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 TOB Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.

Final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”) prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, “covered funds”, as defined in the rules. These rules preclude banking entities and their affiliates from sponsoring and/or providing services for existing TOB Trusts. A new TOB structure is being utilized by the Fund wherein the Fund, as holder of the residuals, will perform certain duties previously performed by banking entities as “sponsors” of TOB Trusts. These duties may be performed by a third-party service provider. The Fund’s expanded role under the new TOB structure may increase its operational and regulatory risk. The new structure is substantially similar to the previous structure; however, pursuant to the Volcker Rule, the remarketing agent would not be able to repurchase tendered floaters for its own account upon a failed remarketing. In the event of a failed remarketing, a banking entity serving as liquidity provider may loan the necessary funds to the TOB Trust to purchase the tendered floaters. The TOB Trust, not the Fund, would be the borrower and the loan from the liquidity provider will be secured by the purchased floaters now held by the TOB Trust. However, as previously described, the Fund would bear the risk of loss with respect to any liquidity shortfall to the extent it entered into a reimbursement agreement with the liquidity provider.

Further, the SEC and various banking agencies have adopted rules implementing credit risk retention requirements for asset-backed securities (the “Risk Retention Rules”). The Risk Retention Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Fund has adopted policies intended to comply with the Risk Retention Rules. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

There can be no assurances that the new TOB structure will continue to be a viable form of leverage. Further, there can be no assurances that alternative forms of leverage will be available to the Fund in order to maintain current levels of leverage. Any alternative forms of leverage may be less advantageous to the Fund, and may adversely affect the Fund’s net asset value, distribution rate and ability to achieve its investment objective.

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 (the “1933 Act”), 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 atypical, 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.

K.

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 (“Counterparties”) 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.

L.

Other Risks – The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located. Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and the 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.

Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.

Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.

The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile.

M.

COVID-19 Risk - The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

 

33                    Invesco Short Duration High Yield Municipal Fund

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

 

Average Daily Net Assets    Rate  

First $ 100 million

      0.483 % 

Next $150 million

      0.433 % 

Next $250 million

      0.408 % 

Next $4.5 billion

      0.383 % 

Next $5 billion

      0.373 % 

Over $10 billion

      0.353 % 

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.40%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least, June 30, 2023 to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y, Class R5 and Class R6 shares to 1.50%, 2.25%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund pursuant to the Class C Plan, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $(9,796) in front-end sales commissions from the sale of Class A shares and $58,149 and $2,422 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s 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.

 

34                    Invesco Short Duration High Yield Municipal Fund

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total  

Investments in Securities

                                    

Municipal Obligations

    $ —      $ 1,388,440,270      $ 185,122      $ 1,388,625,392  

U.S. Dollar Denominated Bonds & Notes

      —        687,813        2,310,000        2,997,813  

Common Stocks & Other Equity Interests

      148,113        —        —        148,113  

Total Investments in Securities

      148,113        1,389,128,083        2,495,122        1,391,771,318  

Other Investments - Assets*

                                    

Investments Matured

      —        5,108,373        —        5,108,373  

Futures Contracts

      22,531        —        —        22,531  

Total Investments

    $ 170,644      $ 1,394,236,456      $ 2,495,122      $ 1,396,902,222  

 

*

Futures contracts are valued at unrealized appreciation. Investments matured are shown at value.

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

 

     Value  
     Interest  
Derivative Assets    Rate Risk  

Unrealized appreciation on futures contracts —Exchange-Traded(a)

    $ 22,531  

Derivatives not subject to master netting agreements

      (22,531 ) 

Total Derivative Assets subject to master netting agreements

    $ —  

 

(a)

The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended February 28, 2023

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

 

     Location of Gain (Loss) on  
     Statement of Operations  
     Interest  
      Rate Risk  

Realized Gain:

   

Futures contracts

    $ 881,849  

Change in Net Unrealized Appreciation (Depreciation):

   

Futures contracts

      (359,185 ) 

Total

    $ 522,664  

The table below summarizes the average notional value of derivatives held during the period.

 

     Futures  
      Contracts  

Average notional value

    $ 45,635,016  

NOTE 5–Security Transactions with Affiliated Funds

The Fund is permitted to purchase securities from or sell securities to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund that is or could be considered an “affiliated person” by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s “current market price”, as provided for in these procedures and Rule 17a-7. Pursuant to these procedures, for the six months ended February 28, 2023, the Fund engaged in securities purchases of $6,309,235 and securities sales of $12,665,265, which resulted in net realized gains (losses) of $(1,175,065).

NOTE 6–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,464.

 

35                    Invesco Short Duration High Yield Municipal Fund

NOTE 7–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 8–Cash Balances and Borrowings

The Fund has entered into a revolving credit and security agreement, which enables the Fund to participate with certain other Invesco Funds in a committed secured borrowing facility that permits borrowings up to $2.5 billion, collectively by certain Invesco Funds, and which will expire on February 22, 2024. The revolving credit and security agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the revolving credit and security agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the revolving credit and security agreement.

During the six months ended February 28, 2023, the average daily balance of borrowing under the revolving credit and security agreement was $1,661,644 with an average interest rate of 4.45%. The carrying amount of the Fund’s payable for borrowings as reported on the Statement of Assets and Liabilities approximates its fair value. Expenses under the revolving credit and security agreement are shown in the Statement of Operations as Interest, facilities and maintenance fees. At February 28, 2023, the Fund had no borrowings outstanding under this agreement.

Additionally, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

Inverse floating rate obligations resulting from the transfer of bonds to TOB Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fee rate related to inverse floating rate note obligations during the six months ended February 28, 2023 were $16,111,429 and 4.96%, respectively.

NOTE 9–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

Capital Loss Carryforward*
Expiration    Short-Term    Long-Term    Total

Not subject to expiration

    $56,494,220    $272,455,249    $328,949,469

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 10–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $279,596,549 and $342,669,805, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of investments

    $ 12,501,760  

 

  

Aggregate unrealized (depreciation) of investments

      (107,819,424 ) 

 

  

Net unrealized appreciation (depreciation) of investments

    $ (95,317,664 ) 

 

  

Cost of investments for tax purposes is $1,492,219,886.

NOTE 11–Share Information

 

              Summary of Share Activity  
     Six months ended      Year ended  
     February 28, 2023(a)      August 31, 2022  
      Shares      Amount      Shares      Amount  

Sold:

            

Class A

      23,967,455      $ 223,153,772        34,556,377      $ 346,153,124  

Class C

      1,214,066        11,292,955        2,533,501        25,306,548  

Class Y

      21,160,152        196,943,009        45,685,270        456,750,375  

Class R5

      -        -        6,348        67,589  

Class R6

      1,752,659        16,350,030        3,178,747        31,754,461  

 

36                    Invesco Short Duration High Yield Municipal Fund

             Summary of Share Activity  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
      Shares     Amount     Shares     Amount  

Issued as reinvestment of dividends:

         

Class A

      1,094,030     $ 10,166,332       1,993,380     $ 20,154,927  

Class C

      78,267       726,421       162,500       1,645,038  

Class Y

      538,576       5,006,583       962,662       9,693,037  

Class R5

      240       2,235       942       9,529  

Class R6

      49,569       461,429       66,516       668,645  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      406,732       3,780,951       898,628       9,081,040  

Class C

      (407,208 )      (3,780,951 )      (899,832 )      (9,081,040 ) 

Reacquired:

         

Class A

      (30,511,841 )      (284,773,720 )      (29,478,381 )      (294,334,319 ) 

Class C

      (1,759,850 )      (16,388,571 )      (2,486,886 )      (24,752,976 ) 

Class Y

      (24,172,637 )      (225,118,114 )      (28,989,895 )      (285,700,769 ) 

Class R5

      (1,007,198 )      (9,502,899 )      (336,298 )      (3,490,637 ) 

Class R6

      (1,686,036 )      (15,756,780 )      (1,903,335 )      (18,778,147 ) 

Net increase (decrease) in share activity

      (9,283,024 )    $ (87,437,318 )      25,950,244     $ 265,146,425  

 

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 63% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

37                    Invesco Short Duration High Yield Municipal Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

        HYPOTHETICAL  
        (5% annual return before  
    ACTUAL expenses)  
  Beginning Ending Expenses Ending Expenses     Annualized    
      Account Value         Account Value         Paid During         Account Value         Paid During     Expense
  (09/01/22) (02/28/23)1 Period2 (02/28/23) Period2 Ratio

Class A

   $1,000.00   $989.80   $4.44   $1,020.33   $4.51   0.90 %

Class C

   1,000.00   987.10   8.13   1,016.61   8.25   1.65

Class Y

   1,000.00   992.10   3.21   1,021.57   3.26   0.65

Class R5

   1,000.00   992.10   3.31   1,021.47   3.36   0.67

Class R6

   1,000.00   992.50   2.87   1,021.92   2.91   0.58

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

38                    Invesco Short Duration High Yield Municipal Fund

 

 

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Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

 

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SEC file number(s): 811-09913 and 333-36074                Invesco Distributors, Inc.    SDHYM-SAR-1

LOGO

 

   
Semiannual Report to Shareholders   February 28, 2023

Invesco Short Term Municipal Fund

Nasdaq:

A: ORSTX ∎ Y: ORSYX ∎ R6: STMUX

 

   
2   Fund Performance
4   Schedule of Investments
23   Financial Statements
26   Financial Highlights
27   Notes to Financial Statements
32   Fund Expenses

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

 

Performance summary

 

 

Fund vs. Indexes

 

Cumulative total returns, 8/31/22 to 2/28/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     0.92 % 

Class Y Shares

     1.04  

Class R6 Shares

     0.81  

S&P Municipal Bond Short Index▼

     0.31  

Source(s): ▼RIMES Technologies Corp.

  

The S&P Municipal Bond Short Index tracks fixed-rate tax-free bonds and bonds subject to the alternative minimum tax (AMT) that have maturities between six months and four years.

 

    The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

 

    A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 

 

For more information about your Fund

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

 

2   Invesco Short Term Municipal Fund

    

    

    

 

 

Average Annual Total Returns

 

As of 2/28/23, including maximum applicable sales charges

 

Class A Shares

        

Inception (12/6/10)

     1.85 % 

10 Years

     1.48  

  5 Years

     1.33  

  1 Year

     0.23  

Class Y Shares

        

Inception (12/6/10)

     2.10 % 

10 Years

     1.73  

  5 Years

     1.58  

  1 Year

     0.48  

Class R6 Shares

        

10 Years

     1.63 % 

  5 Years

     1.62  

  1 Year

     0.55  

Effective May 24, 2019, Class A and Class Y shares of the Oppenheimer Short Term Municipal Fund, (the predecessor fund), were reorganized into Class A and Class Y shares, respectively, of the Invesco Oppenheimer Short Term Municipal Fund. The Fund was subsequently renamed the Invesco Short Term Municipal Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A and Class Y shares are those for Class A and Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    Class R6 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Class A, Class Y and Class R6 shares do not have a front-end sales charge or a contingent deferred sales charge (CDSC); therefore, performance is at net asset value.

    The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in

the past, returns would have been lower. See current prospectus for more information.

 

 

3   Invesco Short Term Municipal Fund

Schedule of Investments

February 28, 2023

(Unaudited)

 

     

   Interest   

Rate

     

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Municipal Obligations–95.28%

            

Alabama–1.06%

            

Alabama (City of), AL Industrial Development Board; Series 2009, VRD RB(a)

      1.95%      06/01/2034      $  8,600      $       8,600,000

Baldwin (County of), AL Public Building Authority (DHR); Series 2007 A, Revenue Wts. (INS - SGI)(b)

      4.38%      06/01/2028      10      10,009

Black Belt Energy Gas District (The) (No. 4); Series 2019 A-1, RB(c)

      4.00%      12/01/2025      7,000      7,006,588

Black Belt Energy Gas District (The) (No. 5); Series 2020 A-1, RB(c)

      4.00%      10/01/2026      5,000      4,991,344

University of Alabama (The); Series 2012 A, Ref. RB

      5.00%      07/01/2023      2,160      2,163,022
                            22,770,963

Alaska–0.12%

            

Northern Tobacco Securitization Corp.; Series 2021 B-1, Ref. RB

      4.00%      06/01/2050      2,610      2,493,225

Arizona–1.16%

            

Arizona (State of) Game & Fish Department & Commission; Series 2006, RB

      5.00%      07/01/2032      105      105,144

Arizona (State of) Health Facilities Authority (Scottsdale Lincoln Hospital); Series 2014, Ref. RB

      5.00%      12/01/2027      100      102,893

Chandler (City of) Industrial Development Authority (Intel Corp.); Series 2022,
RB(c)(d)

      5.00%      09/01/2027      10,000      10,345,262

Glendale Municipal Property Corp.;

            

Series 2012 B, Ref. RB

      5.00%      07/01/2025      1,000      1,001,366

Series 2012 B, Ref. RB

      5.00%      07/01/2029      3,550      3,554,267

Series 2012 B, Ref. RB

      5.00%      07/01/2033      570      570,615

Maricopa (County of), AZ Special Health Care District; Series 2018 C, GO Bonds

      5.00%      07/01/2025      2,475      2,579,843

Maricopa County School District No. 7; Series 2009 B, GO Bonds (INS - AGM)(b)

      4.50%      07/01/2024      15      15,024

Pima (County of), AZ; Series 2014, RB

      5.00%      07/01/2028      745      749,340

Pima (County of), AZ Industrial Development Authority (Excalibur Charter School (The)); Series 2016, Ref. RB(e)

      5.00%      09/01/2026      105      104,270

Pima (County of), AZ Industrial Development Authority (Paideia Academies (The)); Series 2019, RB

      4.13%      07/01/2029      210      196,755

Salt Verde Financial Corp.; Series 2007, RB

      5.25%      12/01/2025      4,000      4,077,886

Sun Devil Energy Center LLC; Series 2008, Ref. RB

      5.00%      07/01/2027      100      100,583

Sun Devil Energy Center LLC (Arizona State University); Series 2008, Ref. RB

      5.00%      07/01/2030      155      155,821

University of Arizona Board of Regents (Arizona Biomedical Research Collaborative Building); Series 2006, COP (INS - AMBAC)(b)

      4.38%      06/01/2024      10      10,010

Westpark Community Facility District; Series 2016, Ref. GO Bonds

      4.00%      07/15/2025      990      981,277

Yavapai (County of), AZ Industrial Development Authority; Series 2015 A, Ref. RB(e)

      3.90%      09/01/2024      365      358,351

Yavapai (County of), AZ Industrial Development Authority (The) (Yavapai Regional Medical Center); Series 2013 A, Ref. RB

      5.00%      08/01/2028      100      100,313
                            25,109,020

California–3.80%

            

Alameda (County of), CA Joint Powers Authority (Multiple Capital);

            

Series 2013 A, RB

      5.00%      12/01/2033      3,465      3,511,854

Series 2013 A, RB

      5.00%      12/01/2034      1,865      1,890,464

Alhambra (City of), CA (Police Facilities Assessment District No. 91-1); Series 1992, COP (INS - AMBAC)(b)

      6.75%      09/01/2023      2,000      2,024,595

Anaheim (City of), CA Public Financing Authority; Series 1997 A, RB (INS - AGM)(b)

      6.00%      09/01/2024      2,430      2,493,951

Beaumont (City of), CA Financing Authority (Improvement Area No. 17A); Series 2013 B, RB(f)

      5.00%      09/01/2023      475      479,362

California (State of);

            

Series 2012, GO Bonds (INS - AGM)(b)

      4.00%      09/01/2037      1,000      1,000,141

Series 2012, Ref. GO Bonds

      5.00%      09/01/2025      10      10,017

Series 2013, Ref. GO Bonds

      5.00%      10/01/2026      480      480,837

Series 2018, Ref. GO Bonds

      5.00%      10/01/2029      400      400,619

California (State of) Health Facilities Financing Authority (Adventist Health System); Series 2013 A, RB

      5.00%      03/01/2025      2,720      2,721,053

California (State of) Health Facilities Financing Authority (City of Hope); Series 2012 A, RB

      5.00%      11/15/2024      100      100,142

California (State of) Health Facilities Financing Authority (St. Joseph Health System); Series 2013 A, RB

      5.00%      07/01/2024      405      407,324

California (State of) Health Facilities Financing Authority (Sutter Health);

            

Series 2017 A, Ref. RB

      5.00%      11/15/2032      1,285      1,397,034

Series 2018 A, RB

      5.00%      11/15/2032      1,230      1,337,239

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

4   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

     

    Principal

    Amount

    (000)

      Value

California–(continued)

            

California (State of) Housing Finance Agency (Social Certificates); Series 2021-2A, Revenue Ctfs. (CEP - FHLMC)

    3.75%      03/25/2035        $  3,931      $       3,836,640

California (State of) Municipal Finance Authority (Waste Management, Inc.); Series 2022 A, RB(c)(d)

    4.13%      10/01/2025        5,000      5,010,254

California (State of) Public Finance Authority (Enso Village) (Green Bonds); Series 2021 B-3, RB(e)

    2.13%      11/15/2027        6,000      5,605,259

California (State of) Public Works Board (California Community Colleges); Series 2005 E, RB (INS - NATL)(b)

    4.50%      10/01/2026        170      170,203

California (State of) Public Works Board (Judicial Council of California);

            

Series 2013 A, RB

    5.00%      03/01/2025        1,525      1,527,410

Series 2013 A, RB

    5.00%      03/01/2026        1,600      1,602,659

California (State of) Public Works Board (Various Capital); Series 2013 I, RB

    5.50%      11/01/2031        2,000      2,029,544

Glendale (City of), CA;

            

Series 2013, RB

    5.00%      02/01/2027        125      125,802

Series 2013, Ref. RB

    5.00%      02/01/2030        175      175,200

Howell Mountain Elementary School District (Election of 2005); Series 2007, GO Bonds (INS - AGM)(b)(g)

    0.00%      08/01/2027        870      731,729

Imperial Irrigation District;

            

Series 2012 A, Ref. RB

    5.00%      11/01/2024        325      325,513

Series 2012 A, Ref. RB

    5.00%      11/01/2027        225      225,326

Lodi (City of), CA; Series 2004 A, COP (INS - NATL)(b)

    4.75%      10/01/2024        10      10,013

Long Beach Unified School District;

            

Series 2012, Ref. GO Bonds

    5.00%      08/01/2025        675      675,994

Series 2012, Ref. GO Bonds

    5.00%      08/01/2028        775      776,116

Series 2012, Ref. GO Bonds

    5.00%      08/01/2029        100      100,143

Los Angeles (City of), CA Department of Airports (Los Angeles International Airport);

            

Series 2013, RB

    5.00%      05/15/2029        1,115      1,120,228

Series 2013, RB

    5.00%      05/15/2030        1,200      1,205,537

Los Angeles (City of), CA Department of Water & Power;

            

Series 2013 B, RB

    5.00%      07/01/2028        8,890      8,940,906

Series 2013 B, RB

    5.00%      07/01/2029        820      824,777

Series 2013 B, RB

    5.00%      07/01/2030        1,265      1,272,202

Series 2013 B, RB

    5.00%      07/01/2031        10,000      10,057,262

Series 2013 B, RB

    5.00%      07/01/2031        110      110,615

Los Angeles (County of), CA Metropolitan Transportation Authority; Series 2013 B, RB

    5.00%      07/01/2031        900      905,632

Los Angeles (County of), CA Metropolitan Transportation Authority (Prop C);

            

Series 2013 B, RB

    5.00%      07/01/2025        140      140,936

Series 2013 B, RB

    5.00%      07/01/2030        725      729,561

Series 2013 B, RB

    5.00%      07/01/2033        6,170      6,204,717

Series 2014 A, Ref. RB

    5.00%      07/01/2029        500      503,195

Modesto (City of), CA (Golf Course); Series 1993 B, COP (INS - NATL)(b)

    5.00%      11/01/2023        5      4,970

Modesto (City of), CA Irrigation District; Series 2012 A, Ref. RB (INS - AGM)(b)

    5.00%      07/01/2026        100      100,566

Northern California Tobacco Securitization Authority; Series 2021 B-1, Ref. RB

    4.00%      06/01/2049        1,005      954,748

Pasadena (City of), CA; Series 2013 A, Ref. RB

    5.00%      06/01/2030        320      321,316

Rowland Unified School District; Series 2013, Ref. GO Bonds

    5.00%      08/01/2026        220      221,611

Sacramento (County of), CA; Series 2003 B, RB (INS - NATL)(b)

    5.73%      08/15/2023        337      337,305

San Francisco (City & County of), CA; Series 2015 R-1, Ref. GO Bonds

    5.00%      06/15/2025        370      372,523

San Francisco (City & County of), CA (Multiple Capital Imporovement); Series 2012 A, COP

    5.00%      04/01/2031        250      250,483

San Mateo (County of), CA Joint Powers Financing Authority (Capital); Series 2013 A, Ref. RB

    5.25%      07/15/2027        100      100,706

University of California;

            

Series 2013 AI, RB(c)(f)

    5.00%      05/15/2023        1,240      1,244,579

Series 2013 AL-3, Ref. VRD RB(a)

    0.01%      05/15/2048        4,800      4,800,000
                            81,906,812

Colorado–1.34%

            

Colorado (State of) Health Facilities Authority (Aberdeen Ridge); Series 2021 B, RB

    2.13%      05/15/2028        1,000      910,040

Colorado (State of) Health Facilities Authority (National Jewish Health); Series 2005, VRD RB (LOC - UMB Bank, N.A.)(a)(h)

    2.75%      01/01/2035        7,400      7,400,000

Colorado Springs (City of), CO; Series 2013 A, Ref. RB

    5.00%      11/15/2027        1,160      1,175,264

Denver (City & County of), CO; Series 2013 B, RB

    5.00%      11/15/2025        100      101,137

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

5   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Colorado–(continued)

            

Denver City & County School District No. 1;

            

Series 2013 C, COP

    5.00%    12/15/2024      $     100      $          101,442

Series 2013 C, COP

    5.00%    12/15/2026      1,680      1,701,813

Public Authority for Colorado Energy; Series 2008, RB

    6.13%    11/15/2023      440      445,967

Rib Floater Trust; Series 2022-004, VRD RB (LOC - Barclays Bank PLC)(a)(e)(h)

    2.95%    02/01/2046      15,500      15,500,000

Vauxmont Metropolitan District;

            

Series 2019, Ref. GO Bonds (INS - AGM)(b)

    5.00%    12/15/2024      130      133,590

Series 2019, Ref. GO Bonds (INS - AGM)(b)

    5.00%    12/15/2025      125      130,960

Series 2019, Ref. GO Bonds (INS - AGM)(b)

    5.00%    12/15/2026      140      148,843

Series 2020, Ref. GO Bonds (INS - AGM)(b)

    5.00%    12/01/2023      385      389,212

Series 2020, Ref. GO Bonds (INS - AGM)(b)

    5.00%    12/01/2024      400      410,565

Series 2020, Ref. GO Bonds (INS - AGM)(b)

    5.00%    12/01/2025      355      370,842
                        28,919,675

Connecticut–1.84%

            

Connecticut (State of);

            

Series 2013 A, RB

    5.00%    10/01/2025      565      570,914

Series 2013 A, RB

    5.00%    03/01/2026      550      550,000

Series 2013 A, RB

    5.00%    10/01/2028      350      353,651

Series 2013 A, RB

    5.00%    10/01/2031      1,175      1,185,492

Series 2013 B, GO Bonds(c)(f)

    5.00%    03/01/2023      5,200      5,200,000

Series 2016 A, GO Bonds

    5.00%    03/15/2032      3,280      3,464,404

Series 2018 C, GO Bonds

    4.00%    06/15/2024      10,000      10,115,727

Connecticut (State of) (Transportation Infrastructure);

            

Series 2013 A, RB

    5.00%    10/01/2024      275      277,907

Series 2013 A, RB

    5.00%    10/01/2027      150      151,584

Connecticut (State of) Health & Educational Facilities Authority (Hartford Healthcare);

            

Series 2014 E, RB

    5.00%    07/01/2025      125      127,460

Series 2014 E, RB

    5.00%    07/01/2026      1,000      1,019,615

Connecticut (State of) Health & Educational Facilities Authority (New Haven Hospital);

            

Series 2013 N, RB

    5.00%    07/01/2027      225      225,983

Series 2014 A, RB

    5.00%    07/01/2032      10,650      10,899,898

Connecticut (State of) Health & Educational Facilities Authority (Yale University); Series 2016 A, Ref. VRD RB(a)

    1.10%    07/01/2042      5,000      5,000,000

South Central Connecticut Regional Water Authority; Twenty Ninth Series 2014, Ref. RB

    5.00%    08/01/2025      500      503,861

Willington (Town of), CT; Series 2006, GO Bonds (INS - AGM)(b)

    4.00%    12/01/2023      5      5,004
                        39,651,500

Delaware–0.02%

            

Delaware (State of) River & Bay Authority; Series 2014 C, Ref. RB

    5.00%    01/01/2028      400      405,420

District of Columbia–0.32%

            

District of Columbia;

            

Series 2012, RB

    5.00%    12/01/2024      280      280,466

Series 2012, RB

    5.00%    12/01/2026      100      100,154

Series 2013 A, GO Bonds

    5.00%    06/01/2025      4,620      4,641,648

Series 2013 A, GO Bonds

    5.00%    06/01/2027      355      356,575

Series 2013 A, GO Bonds

    5.00%    06/01/2030      100      100,429

District of Columbia (KIPP Charter School); Series 2013, RB(f)

    5.00%    07/01/2023      165      165,852

Washington Metropolitan Area Transit Authority; Series 2017 B, RB

    5.00%    07/01/2029      1,110      1,201,162
                        6,846,286

Florida–7.13%

            

Board of Governors of Florida Atlantic University; Series 2017, Ref. RB

    5.00%    07/01/2031      1,000      1,062,125

Broward (County of), FL;

            

Series 2012 Q-1, RB

    5.00%    10/01/2024      1,850      1,852,586

Series 2013 B, RB

    5.00%    10/01/2026      260      262,603

Broward (County of), FL (Parks & Land Preservation); Series 2012, Ref. GO Bonds

    5.00%    01/01/2024      1,500      1,503,992

Broward (County of), FL School Board; Series 2016 A, Ref. COP

    5.00%    07/01/2032      1,115      1,171,935

Capital Trust Agency, Inc. (Gardens Apartements); Series 2015 A, RB

    3.50%    07/01/2025      545      479,487

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

6   Invesco Short Term Municipal Fund

     

   Interest   

Rate

     

Maturity

Date

     

    Principal

    Amount

    (000)

      Value

Florida–(continued)

            

Coral Springs (City of), FL (Municipal Complex); Series 2016 A, RB

      5.00%        09/01/2032        $  1,115      $       1,178,314

Florida (State of) Department of Transportation; Series 2013 A, Ref. RB

      5.00%        07/01/2024        575      578,510

Florida Development Finance Corp. (Brightline Fllorida Passenger Rail Expansion); Series 2021, RB(c)(d)

      2.90%        04/04/2023        4,000      3,995,749

Florida Development Finance Corp. (Mayflower Retirement Community); Series 2021, RB(e)

      1.75%        06/01/2026        1,020      918,044

Florida Housing Finance Corp.; Series 2015 A, RB (CEP - GNMA)

      3.65%        07/01/2041        1,155      1,142,891

Florida Housing Finance Corp. (Social Bonds); Series 2022 3, RB (CEP - GNMA)

      5.50%        01/01/2054        4,400      4,668,656

Gainesville (City of), FL;

            

Series 2012 B, Ref. VRD RB(a)

      1.90%        10/01/2042        9,005      9,005,000

Series 2017 A, RB

      5.00%        10/01/2031        1,265      1,383,352

Hialeah (City of), FL Utility System;

            

Series 2022, Ref. RB

      5.00%        10/01/2033        1,970      2,229,625

Series 2022, Ref. RB

      5.00%        10/01/2034        2,065      2,322,181

Jacksonville (City of), FL; Series 2014, Ref. RB

      5.00%        10/01/2031        1,000      1,029,166

JEA Electric System;

            

Series 2008 3-A, VRD RB(a)

      2.80%        10/01/2036        10,720      10,720,000

Series 2008 C-2, VRD RB(a)

      2.75%        10/01/2034        20,425      20,425,000

Series 2017 B, Ref. RB

      5.00%        10/01/2031        7,935      8,592,171

Series 2017 B, Ref. RB

      5.00%        10/01/2032        1,300      1,405,525

Miami (City of) & Dade (County of), FL School Board;

            

Series 2014 D, Ref. COP

      5.00%        11/01/2030        1,860      1,910,249

Series 2014 D, Ref. COP

      5.00%        11/01/2031        1,420      1,452,108

Miami-Dade (County of), FL;

            

Series 2012 B, Ref. RB

      5.00%        10/01/2024        1,285      1,286,796

Series 2014, RB

      5.00%        10/01/2032        1,160      1,185,859

Series 2015 B, Ref. GO Bonds

      5.00%        07/01/2029        1,105      1,136,225

Miami-Dade (County of), FL Educational Facilities Authority (University of Miami);

            

Series 2012 A, RB

      5.00%        04/01/2024        250      250,321

Series 2012 A, RB

      5.00%        04/01/2027        525      525,743

Series 2012 A, RB

      5.00%        04/01/2028        1,500      1,502,185

Miami-Dade (County of), FL Expressway Authority;

            

Series 2010 A, RB

      5.00%        07/01/2040        10,000      10,005,455

Series 2014 B, Ref. RB

      5.00%        07/01/2025        300      304,775

Miami-Dade (County of), FL Housing Finance Authority (Palm Lakes); Series 2012, RB (LOC - Fannie Mae)(h)

      4.05%        01/15/2028        8,430      8,470,912

Miami-Dade (County of), FL Industrial Development Authority (Florida Power & Light); Series 2021, Ref. VRD RB(a)

      2.10%        05/01/2046        10,000      10,000,000

Orange (County of), FL Health Facilities Authority (Orlando Health Obligated Group);

            

Series 2023 A, RB

      5.00%        10/01/2035        1,000      1,115,951

Series 2023 A, RB

      5.00%        10/01/2036        710      783,435

Orlando (City of), FL; Series 2013, Ref. RB

      5.00%        10/01/2027        750      758,142

Orlando (City of), FL Utilities Commission; Series 2015 B, Ref. VRD RB(a)

      2.95%        10/01/2039        31,450      31,450,000

Polk (County of), FL;

            

Series 2012, Ref. RB

      5.00%        10/01/2024        125      125,186

Series 2012, Ref. RB

      5.00%        10/01/2025        165      165,217

Pompano Beach (City of), FL (John Knox Village);

            

Series 2021 B-1, RB

      2.00%        01/01/2029        1,545      1,296,235

Series 2021 B-2, RB

      1.45%        01/01/2027        1,340      1,176,422

Port St. Lucie (City of), FL; Series 2005 A, RB (INS - NATL)(b)

      4.38%        07/01/2023        5      5,005

Reedy Creek Improvement District; Series 2017 A, GO Bonds

      5.00%        06/01/2023        1,600      1,606,180

Sarasota (County of), FL Public Hospital District (Sarasota Memorial Hospital); Series 1998 B, Ref. RB (INS - NATL)(b)

      5.25%        07/01/2024        250      253,698

St. Johns (County of), FL Industrial Development Authority (Vicar’s Landing); Series 2021, Ref. RB

      4.00%        12/15/2023        120      119,052

Sunrise Lakes Phase 4 Recreation District;

            

Series 2008, Ref. GO Bonds (INS - AGC)(b)

      4.00%        08/01/2023        5      5,004

Series 2008, Ref. GO Bonds (INS - AGC)(b)

      4.13%        08/01/2024        20      20,016

Volusia (County of), FL School Board; Series 2014 B, Ref. COP

      5.00%        08/01/2031        1,000      1,019,517
                                153,856,600

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

7   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Georgia–5.66%

            

Atlanta (City of), GA;

            

Series 2014 A, Ref. RB

    5.00%    01/01/2028      $  1,000      $       1,015,233

Series 2014 A, Ref. RB

    5.00%    01/01/2031      3,670      3,726,027

Series 2019 F, Ref. RB

    5.00%    07/01/2023      3,000      3,018,473

Series 2019 F, Ref. RB

    5.00%    07/01/2024      2,000      2,047,804

Brookhaven (City of), GA Development Authority (Children’s Healthcare of Atlanta, Inc.); Series 2019 A, RB

    5.00%    07/01/2025      1,050      1,095,201

Burke (County of), GA Development Authority (Georgia Power Co. Plant Vogtle);

            

Series 2012, Ref. RB(c)

    2.88%    08/19/2025      5,000      4,826,072

Series 2013, Ref. RB(c)

    2.93%    03/12/2024      7,000      6,891,209

College Park (City of), GA (Atlanta International Airport); Series 2006 B, RB (INS - NATL)(b)

    4.38%    01/01/2026      30      30,024

DeKalb (County of), GA; Series 2013, Ref. RB

    5.00%    10/01/2030      100      101,244

Fulton (County of), GA; Series 2013, Ref. RB

    5.00%    01/01/2027      1,605      1,607,610

Georgia (State of);

            

Series 2013 D, GO Bonds

    5.00%    02/01/2025      100      100,155

Series 2017 A-2, GO Bonds

    5.00%    02/01/2029      5,020      5,456,751

Georgia Municipal Association, Inc.; Series 1998, COP (INS - AGM)(b)

    5.00%    12/01/2023      25      25,041

Housing Authority of Clayton County Facilities Holding Co. LLC (The) (Riverwood Townhouses); Series 2021 B, RB(c)(e)

    1.40%    04/01/2023      2,000      1,999,154

Houston (County of), GA Hospital Authority (Houston Hospitals, Inc.); Series 2016 A, Ref. RB(c)(f)

    5.00%    04/01/2024      1,520      1,538,388

Macon-Bibb (County of), GA Housing Authority (Green Meadows Apartments); Series 2021 B, RB(c)

    4.50%    05/01/2023      2,000      1,998,982

Main Street Natural Gas, Inc.;

            

Series 2018 A, RB(c)

    4.00%    09/01/2023      27,930      27,989,005

Series 2018 B, RB (67% of 1 mo. USD LIBOR + 0.75%)(c)(i)

    3.87%    09/01/2023      1,000      1,001,556

Series 2021 A, RB(c)

    4.00%    09/01/2027      8,500      8,498,602

Subseries 2018 C, RB(c)

    4.00%    12/01/2023      18,970      19,020,823

Subseries 2018 D, RB (1 mo. USD LIBOR + 0.83%)(c)(i)

    3.95%    12/01/2023      30,000      30,076,416

Milledgeville (City of) & Baldwin (County of), GA Development Authority; Series 2003 A, RB (INS - AGC)(b)

    4.50%    09/01/2025      30      30,018
                        122,093,788

Hawaii–0.00%

            

Hawaii (State of) Department of Budget & Finance (Hawaii Pacific Health Obligated Group); Series 2013 B, Ref. RB

    5.00%    07/01/2030      100      100,173

Illinois–6.68%

            

Bellwood (Village of), IL; Series 2016 A, Ref. GO Bonds (INS - AGM)(b)

    5.00%    12/01/2026      210      224,205

Chicago (City of), IL;

            

Series 1999, GO Bonds (INS - NATL)(b)(g)

    0.00%    01/01/2024      6,110      5,902,341

Series 2008, Ref. RB (INS - AGM)(b)

    5.00%    11/01/2025      905      926,514

Series 2008, Ref. RB (INS - AGM)(b)

    5.25%    11/01/2033      3,905      3,940,642

Series 2012 A, Ref. RB (INS - AGM)(b)

    5.00%    11/01/2025      235      240,587

Series 2012, RB

    5.00%    01/01/2028      3,500      3,513,166

Series 2012, RB

    5.00%    11/01/2029      1,250      1,258,327

Series 2012, RB

    5.00%    11/01/2030      2,500      2,516,673

Chicago (City of), IL (O’Hare International Airport); Series 2012 B, Ref. RB(d)

    5.00%    01/01/2024      9,045      9,052,122

Chicago (City of), IL Board of Education; Series 2005 A, Ref. GO Bonds (INS - AMBAC)(b)

    5.50%    12/01/2023      200      202,622

Chicago (City of), IL Midway International Airport;

            

Series 2014 A, Ref. RB(d)

    5.00%    01/01/2034      2,090      2,105,204

Series 2014 B, Ref. RB

    5.00%    01/01/2033      3,830      3,874,887

Chicago (City of), IL Transit Authority (FTA Section 5307 Urbanized Area Formula Funds); Series 2021, Ref. RB

    5.00%    06/01/2023      1,320      1,324,014

Chicago State University; Series 1998, RB (INS - NATL)(b)

    5.50%    12/01/2023      465      469,346

Collinsville (City of), IL Area Recreation District;

            

Series 2004, GO Bonds (INS - NATL)(b)

    4.50%    12/01/2023      630      631,058

Series 2004, GO Bonds (INS - NATL)(b)

    4.60%    12/01/2025      350      350,347

Series 2004, GO Bonds (INS - NATL)(b)

    4.65%    12/01/2026      450      450,435

Series 2007, Ref. GO Bonds (INS - AMBAC)(b)

    4.00%    12/01/2027      65      64,057

Cook County Community High School District No. 212 Leyden; Series 2016 C, RB (INS - BAM)(b)

    5.00%    12/01/2028      2,385      2,445,542

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

8   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Illinois–(continued)

            

Illinois (State of);

            

Series 2016, GO Bonds

    5.00%    11/01/2025      $  2,000      $       2,056,413

Series 2017 D, GO Bonds

    5.00%    11/01/2025      10,960      11,269,141

Series 2018 A, GO Bonds

    4.00%    05/01/2024      2,085      2,087,770

Series 2020 A, GO Bonds

    5.00%    11/01/2026      2,935      3,047,990

Illinois (State of) Development Finance Authority (CITGO Petroleum Corp.); Series 2002, RB(d)

    8.00%    06/01/2032      560      560,469

Illinois (State of) Finance Authority (Advocate Health Care Network); Series 2014, Ref. RB

    5.00%    08/01/2025      155      158,786

Illinois (State of) Finance Authority (Lutheran Communities Obligated Group);

            

Series 2019 A, Ref. RB

    4.00%    11/01/2023      405      401,949

Series 2019 A, Ref. RB

    5.00%    11/01/2025      440      436,084

Series 2019 A, Ref. RB

    5.00%    11/01/2026      460      453,024

Illinois (State of) Finance Authority (Northshore Edward Elmhurst Health Credit Group); Series 2020 D, Ref. VRD RB(a)

    1.80%    08/15/2057      15,000      15,000,000

Illinois (State of) Finance Authority (Rehabilitation Institute of Chicago); Series 2013 A, RB(f)

    5.00%    07/01/2023      1,000      1,002,519

Illinois (State of) Finance Authority (The University of Chicago);

            

Series 2014 A, Ref. RB

    5.00%    10/01/2026      125      128,373

Series 2014 A, Ref. RB

    5.00%    10/01/2027      10      10,257

Illinois (State of) Finance Authority (UChicago Medicine); Series 2022 B-1, RB(c)

    5.00%    08/15/2025      10,000      10,327,848

Illinois (State of) Housing Development Authority; Series 2005, RB (INS - AGM)(b)

    4.60%    09/01/2025      20      20,021

Illinois (State of) Regional Transportation Authority; Series 1997, Ref. RB (INS - NATL)(b)

    6.00%    06/01/2023      495      498,190

Illinois (State of) Toll Highway Authority;

            

Series 2013 A, RB

    5.00%    01/01/2031      11,035      11,054,278

Series 2013 A, RB

    5.00%    01/01/2032      4,600      4,607,602

Series 2014 B, RB

    5.00%    01/01/2029      345      350,774

Series 2016 B, RB

    5.00%    01/01/2031      1,000      1,064,915

Lake County Community College District No. 532; Series 2013 A, GO Bonds

    4.00%    06/01/2023      500      500,315

Peoria (City of), IL Public Building Commission; Series 2019 A, Ref. RB (INS - AGM)(b)

    5.00%    12/01/2029      4,430      4,809,407

Rockford (City of), IL (Waterworks System Alternative Revenue Source); Series 2010, GO Bonds

    3.75%    12/15/2025      280      280,160

Sales Tax Securitization Corp.; Series 2017 A, Ref. RB

    5.00%    01/01/2024      10,200      10,334,006

University of Illinois;

            

Series 2008 A, Ref. COP (INS - AGM)(b)

    5.25%    10/01/2026      1,020      1,021,798

Series 2013 A, Ref. RB

    5.00%    04/01/2028      3,210      3,213,015

Series 2014 A, Ref. COP

    5.00%    10/01/2025      400      408,868

University Park (Village of), IL; Series 2003, GO Bonds (INS - AMBAC)(b)

    4.65%    12/01/2023      30      30,041

West Chicago Fire Protection District; Series 2008, GO Bonds (INS - NATL)(b)

    4.75%    01/01/2029      15      15,016

Will County Community Unit School District No. 365; Series 2003, GO Bonds (INS - AGM)(b)(g)

    0.00%    11/01/2023      19,955      19,479,522
                        144,120,640

Indiana–0.84%

            

Ball State University; Series 2013, RB

    5.00%    07/01/2025      410      411,886

Gary (City of), IN & Chicago (City of), IL International Airport Authority (Gary/Chicago International Airport); Series 2014, RB(d)

    5.50%    02/01/2025      385      385,283

Indiana (State of) Finance Authority;

            

Series 2014 A, RB

    5.00%    10/01/2026      1,750      1,796,676

Series 2014 A, RB

    5.00%    10/01/2027      1,750      1,796,676

Series 2022, Ref. RB(c)(d)

    4.50%    11/15/2023      10,000      9,974,350

Indiana (State of) Finance Authority (United States Steel Corp.); Series 2021 A, Ref. RB

    4.13%    12/01/2026      3,500      3,439,624

Merrillville (Town of), IN (Belvedere Housing); Series 2016, RB

    5.05%    04/01/2026      395      377,104
                        18,181,599

Iowa–0.70%

            

Iowa (State of) Finance Authority (Unitypoint Health); Series 2014 C, RB

    5.00%    02/15/2032      1,150      1,167,786

Iowa City (City of), IA Community School District; Series 2015, RB

    5.00%    06/01/2024      125      125,647

PEFA, Inc.; Series 2019, RB(c)

    5.00%    09/01/2026      13,500      13,895,832
                        15,189,265

Kansas–0.11%

            

Johnson County Unified School District No. 231 Gardner - Edgerton; Series 2013 A, Ref. GO Bonds

    5.00%    10/01/2025      250      252,570

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

9   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Kansas–(continued)

            

University of Kansas Hospital Authority; Series 2015, Ref. RB

    5.00%    09/01/2030      $  1,930      $       2,028,362
                        2,280,932

Kentucky–3.06%

            

Jefferson County Capital Projects Corp.; Series 2007 A, Ref. RB (INS - AGM)(b)

    4.38%    06/01/2028      25      25,025

Kentucky (Commonwealth of) Economic Development Finance Authority (Next Generation Kentucky Information Highway); Series 2015 A, RB

    5.00%    07/01/2025      1,635      1,647,186

Kentucky (Commonwealth of) Property & Building Commission (No. 112); Series 2016 A, RB

    5.00%    02/01/2032      1,000      1,046,824

Kentucky (Commonwealth of) Property & Building Commission (No. 119);

            

Series 2018, RB

    5.00%    05/01/2027      4,750      5,095,244

Series 2018, RB

    5.00%    05/01/2028      5,000      5,450,916

Kentucky (Commonwealth of) Public Energy Authority;

            

Series 2018 A, RB(c)

    4.00%    04/01/2024      5,000      5,003,683

Series 2019 A-1, RB(c)

    4.00%    06/01/2025      5,000      5,003,844

Series 2019 A-2, RB (1 mo. USD LIBOR + 1.12%)(c)(i)

    4.24%    06/01/2025      10,000      10,022,553

Louisville (City of) & Jefferson (County of), KY Metropolitan Government (Louisville Gas and Electric Co.); Series 2007, Ref. VRD RB(a)

    2.75%    06/01/2033      29,700      29,700,000

Louisville (City of) & Jefferson (County of), KY Metropolitan Government (Norton Healthcare, Inc.); Series 2016, Ref. RB

    5.00%    10/01/2032      2,660      2,775,301

Louisville (City of) & Jefferson (County of), KY Sewer District; Series 2013 B, Ref. RB

    5.00%    05/15/2026      220      220,871
                        65,991,447

Louisiana–0.94%

            

Jefferson (Parish of), LA Sales Tax District;

            

Series 2019 A, Ref. RB (INS - AGM)(b)

    5.00%    12/01/2023      1,000      1,013,460

Series 2019 A, Ref. RB (INS - AGM)(b)

    5.00%    12/01/2024      1,000      1,031,911

Louisiana (State of); Series 2022 A, Ref. RB (SOFR + 0.50%)(c)(i)

    3.69%    05/01/2026      3,175      3,100,888

Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Glen Retirement System); Series 2019 A, RB

    5.00%    01/01/2024      175      172,936

Louisiana (State of) Stadium & Exposition District; Series 2020, RB

    5.00%    07/03/2023      15,000      15,014,824
                        20,334,019

Maine–0.30%

            

Maine (State of) Educational Loan Authority; Series 2012 A-1, RB (INS - AGC)(b)(d)

    4.75%    12/01/2024      1,550      1,553,619

Maine (State of) State housing Authority (Social Bonds); Series 2023 B, RB(c)

    3.13%    05/01/2024      5,000      4,968,232
                        6,521,851

Maryland–0.63%

            

Anne Arundel (County of), MD; Series 2013, GO Bonds

    5.00%    04/01/2027      100      100,173

Baltimore (County of), MD; Series 2014 B, GO Bonds

    5.00%    08/01/2032      2,950      3,041,657

Maryland (State of) Health & Higher Educational Facilities Authority; Series 2017, Ref. RB

    5.00%    07/01/2031      3,000      3,166,412

Maryland (State of) Health & Higher Educational Facilities Authority (MedStar Health); Series 2013 B, RB

    5.00%    08/15/2027      200      200,923

Maryland Economic Development Corp. (CNX Marine Terminal, Inc. - Port of Baltimore Facility); Series 2010, Ref. RB

    5.75%    09/01/2025      7,030      7,095,958
                        13,605,123

Massachusetts–0.27%

            

Cheshire (Town of), MA; Series 2009, GO Bonds (INS - AGM)(b)

    4.75%    02/01/2024      10      10,018

Massachusetts (Commonwealth of);

            

Series 2018 C, GO Bonds

    5.00%    05/01/2029      150      150,480

Series 2018 C, GO Bonds

    5.00%    05/01/2030      100      100,306

Series 2018 C, GO Bonds

    5.00%    05/01/2031      930      932,739

Series 2018 C, GO Bonds

    5.00%    05/01/2032      1,245      1,248,630

Massachusetts (Commonwealth of) (Green Bonds); Series 2014 E, GO Bonds

    5.00%    09/01/2024      680      681,030

Massachusetts (Commonwealth of) Development Finance Agency; Series 2007 C, RB (3 mo. USD LIBOR + 0.82%)(i)

    4.08%    11/15/2032      2,645      2,603,526

North Reading (Town of), MA; Series 2005, GO Bonds (INS - AMBAC)(b)

    4.00%    09/15/2023      10      10,008

Waltham (City of), MA;

            

Series 2008, GO Bonds

    4.00%    09/15/2024      25      25,017

Series 2008, GO Bonds

    4.20%    09/15/2027      15      15,017

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

10   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Massachusetts–(continued)

            

Worcester (City of), MA;

            

Series 2005 C, GO Bonds (INS - AMBAC)(b)

    4.13%    09/15/2023      $       15      $            15,012

Series 2006, GO Bonds (INS - SGI)(b)

    4.20%    11/01/2024      10      10,009
                        5,801,792

Michigan–3.69%

            

Advanced Technology Academy; Series 2019, Ref. RB

    3.50%    11/01/2024      260      254,198

Charyl Stockwell Academy; Series 2015, Ref. RB

    4.88%    10/01/2023      60      59,749

Detroit (City of), MI; Series 2006, Ref. RB (3 mo. USD LIBOR + 0.60%)
(INS - AGM)(b)(i)

    3.79%    07/01/2032      7,825      7,416,973

Kenowa Hills Public Schools; Series 2015, Ref. GO Bonds

    5.00%    05/01/2025      1,000      1,025,218

Michigan (State of) Building Authority (Facilities Program);

            

Series 2013-1A, Ref. RB

    5.00%    10/15/2024      540      546,031

Series 2019, Ref. RB

    5.00%    04/15/2025      2,100      2,181,518

Michigan (State of) Finance Authority; Series 2022 A, Ref. RB

    5.00%    11/15/2023      2,210      2,230,456

Michigan (State of) Finance Authority (Detroit Water & Sewerage Department);

            

Series 2014 D-2, Ref. RB (INS - AGM)(b)

    5.00%    07/01/2028      3,475      3,546,196

Series 2014 D-4, Ref. RB

    5.00%    07/01/2029      1,400      1,424,474

Series 2014, Ref. RB (INS - AGM)(b)

    5.00%    07/01/2023      1,500      1,507,744

Michigan (State of) Finance Authority (Sparrow Obligated Group); Series 2015, Ref. RB

    5.00%    11/15/2032      1,620      1,662,775

Michigan (State of) Housing Development Authority; Series 2021 A, RB

    0.55%    04/01/2025      2,750      2,576,039

Muskegon Heights (City of), MI; Series 2006, Ref. RB (INS - NATL)(b)

    4.00%    11/01/2026      185      181,458

Rib Floater Trust; Series 2022-048, VRD RB(a)(e)

    1.87%    06/01/2044      34,995      34,995,000

Tender Option Bond Trust Receipts/Certificates; Series 2021, VRD RB(a)(e)

    2.86%    10/15/2051      1,145      1,145,000

Wayne (County of), MI Airport Authority; Series 2017 C, Ref. RB

    5.00%    12/01/2023      925      936,489

Wayne (County of), MI Airport Authority (Detroit Metropolitan Airport);

            

Series 2012 A, RB

    5.00%    12/01/2024      2,135      2,137,926

Series 2012 A, RB

    5.00%    12/01/2026      5,380      5,387,386

Series 2012 D, Ref. RB(d)

    5.00%    12/01/2028      9,050      9,056,612

Wayne State University;

            

Series 2013 A, RB

    5.00%    11/15/2025      1,245      1,257,822

Series 2015 A, Ref. RB

    5.00%    11/15/2030      125      127,525
                        79,656,589

Minnesota–1.39%

            

Eden Prairie (City of), MN (Eden Glen Apartments); Series 2016 A, Ref. VRD RB (LOC - Bridgewater Bank)(a)(h)

    2.93%    02/01/2031      1,880      1,880,000

Minneapolis & St. Paul (Cities of), MN Housing & Redevelopment Authority (Allina Health System);

            

Series 2009 B-2, VRD RB (LOC - JPMorgan Chase Bank, N.A.)(a)(h)

    1.85%    11/15/2035      10,000      10,000,000

Series 2019, Ref. RB

    5.00%    11/15/2023      1,600      1,617,592

Series 2019, Ref. RB

    5.00%    11/15/2024      1,900      1,950,398

Minneapolis & St. Paul (Cities of), MN Metropolitan Airports Commission;

            

Series 2014 A, Ref. RB

    5.00%    01/01/2027      140      142,025

Series 2014 A, Ref. RB

    5.00%    01/01/2030      315      319,399

Minneapolis (City of), MN (Riverton Community Housing); Series 2003, VRD RB (LOC - Bridgewater Bank)(a)(h)

    2.89%    10/01/2033      4,680      4,680,000

Minnesota (State of); Series 2014 A, RB

    5.00%    06/01/2031      2,500      2,507,291

Minnesota (State of) Governmental Agency Finance Group (Flexible Term Program); Series 2007 A-1, RB (INS - AGC)(b)

    4.13%    03/01/2027      15      15,001

Minnesota (State of) Higher Education Facilities Authority (University of St. Thomas); Series 2017 A, Ref. RB

    5.00%    10/01/2029      1,400      1,505,914

New Prague (City of), MN; Series 2009 A, GO Bonds

    4.15%    02/01/2024      5      5,003

North Mankato (City of), MN; Series 2009 C, GO Bonds

    4.00%    12/01/2024      10      10,006

Northern Municipal Power Agency;

            

Series 2013 A, RB

    5.00%    01/01/2030      340      340,423

Series 2013 A, RB

    5.00%    01/01/2031      460      460,572

Owatonna (City of), MN (Second Century); Series 2003 A, Ref. VRD RB (LOC - Bridgewater Bank)(a)(h)

    2.91%    01/01/2030      1,295      1,295,000

St. Louis Park (City of), MN (Shorehan (The)); Series 2015, VRD RB (LOC - Bridgewater Bank)(a)(h)

    2.90%    11/01/2045      1,375      1,375,000

St. Paul (City of), MN Housing & Redevelopment Authority (St. Paul City School); Series 2016 A, Ref. RB(c)(f)

    4.50%    07/01/2026      385      392,486

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

11   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Minnesota–(continued)

            

St. Paul (City of), MN Port Authority (Sibley); Series 2004, Ref. VRD RB(a)

    2.92%    02/01/2034      $  1,400      $       1,400,000
                        29,896,110

Mississippi–0.07%

            

Mississippi (State of) Development Bank; Series 2013 B, RB (INS - BAM)(b)

    5.00%    10/01/2023      270      272,697

Mississippi (State of) Hospital Equipment & Facilities Authority (Forrest Co. General Hospital); Series 2019 B, Ref. RB

    5.00%    01/01/2025      1,105      1,130,768

Mississippi Business Finance Corp. (Northrop Grumman Corp.); Series 2006, RB

    4.55%    12/01/2028      25      24,725
                        1,428,190

Missouri–0.59%

            

Arnold Retail Corridor Transportation Development District; Series 2019, Ref. RB

    3.00%    11/01/2028      180      167,738

Kansas City (City of), MO Industrial Development Authority (Ward Parkway Center Community Improvement District); Series 2016 A, Ref. RB(e)

    4.25%    04/01/2026      220      212,537

Lindbergh School District; Series 2019 A, GO Bonds

    5.00%    03/01/2033      1,475      1,596,182

Missouri (State of) Health & Educational Facilities Authority;

            

Series 2014, RB

    5.00%    01/01/2030      1,000      1,017,434

Series 2016, Ref. RB

    5.00%    11/15/2030      1,215      1,271,610

Missouri (State of) Housing Development Commission (First Place Homeownership Loan); Series 2023, RB (CEP - GNMA)

    5.75%    05/01/2053      2,800      3,010,199

Missouri (State of) Joint Municipal Electric Utility Commission (Iatan 2);

            

Series 2014 A, Ref. RB

    5.00%    01/01/2027      1,850      1,868,539

Series 2014 A, Ref. RB

    5.00%    01/01/2030      1,195      1,206,682

Series 2014 A, Ref. RB

    5.00%    01/01/2032      1,755      1,771,869

Missouri Western State University; Series 2012, Ref. RB

    3.00%    10/01/2024      50      48,797

Springfield Public Building Corp.; Series 2000 A, RB (INS - AMBAC)(b)(g)

    0.00%    06/01/2025      180      160,798

St. Louis (County of), MO Industrial Development Authority (Friendship Village of Sunset Hills); Series 2013 A, RB

    5.00%    09/01/2023      305      305,162
                        12,637,547

Montana–1.17%

            

Mizuho Floater/Residual Trust; Series 2020-MIZ9027, VRD Revenue Ctfs. (LOC - Mizuho Capital Markets LLC)(a)(e)(h)

    3.05%    01/01/2034      25,265      25,265,000

Ravalli County School District No. 7 Victor; Series 2006, GO Bonds (INS - AGM)(b)

    4.00%    07/01/2023      10      10,007
                        25,275,007

Nebraska–0.33%

            

Central Plains Energy Project; Series 2019, Ref. RB

    4.00%    08/01/2024      1,000      1,003,249

Gretna Public Schools; Series 2022 B, GO Bonds

    5.00%    12/15/2027      1,000      1,049,484

Public Power Generation Agency (Whelan Energy Center Unit 2); Series 2015, Ref. RB

    5.00%    01/01/2031      5,040      5,157,532
                        7,210,265

Nevada–0.35%

            

Clark (County of), NV Department of Aviation;

            

Series 2014 A-2, Ref. RB

    5.00%    07/01/2028      400      409,896

Series 2014 A-2, Ref. RB

    5.00%    07/01/2030      5,050      5,175,809

Series 2014 A-2, Ref. RB

    5.00%    07/01/2033      1,000      1,023,579

Nevada (State of);

            

Series 2012 C, Ref. GO Bonds

    5.00%    08/01/2023      460      460,662

Series 2012 D, Ref. GO Bonds

    5.00%    06/01/2023      225      225,324

Sparks (City of), NV (Tourism Improvement District No. 1); Series 2019 A, Ref. RB(e)

    2.50%    06/15/2024      235      228,754
                        7,524,024

New Hampshire–0.43%

            

New Hampshire (State of) Business Finance Authority (Social Bonds); Series 2022-2A, RB

    4.00%    10/20/2036      5,398      5,041,588

New Hampshire (State of) Health and Education Facilities Authority; Series 2016, Ref. RB

    5.50%    06/01/2031      4,000      4,200,367
                        9,241,955

New Jersey–6.71%

            

Atlantic City (City of), NJ; Series 2017 A, Ref. GO Bonds (INS - BAM)(b)

    5.00%    03/01/2027      250      267,543

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

12   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

New Jersey–(continued)

            

Camden (County of), NJ Improvement Authority (The) (Rowan University School of Osteopathic Medicine); Series 2013 A, Ref. RB

    5.00%    12/01/2027      $  1,610      $       1,628,762

Casino Reinvestment Development Authority, Inc.;

            

Series 2004, RB (INS - AMBAC)(b)

    5.25%    01/01/2024      1,500      1,501,416

Series 2014, Ref. RB

    5.00%    11/01/2023      3,515      3,530,599

Jersey (City of), NJ; Series 2022 A, GO Notes

    5.00%    10/26/2023      1,664      1,682,541

Livingston (Township of), NJ; Series 2022, GO Notes

    5.00%    12/12/2023      5,000      5,063,019

New Jersey (State of);

            

Series 2020 A, GO Bonds

    5.00%    06/01/2026      14,015      14,896,388

Series 2020 A, GO Bonds

    5.00%    06/01/2027      2,885      3,128,208

New Jersey (State of) Building Authority; Series 2016 A, Ref. RB (INS - BAM)(b)

    5.00%    06/15/2025      1,500      1,547,730

New Jersey (State of) Economic Development Authority;

            

Series 2004 A, RB (INS - NATL)(b)

    5.25%    07/01/2025      6,840      7,092,896

Series 2004 A, RB(f)

    5.25%    07/01/2025      820      858,367

Series 2005 N-1, Ref. RB (INS - NATL)(b)

    5.50%    09/01/2023      3,010      3,039,354

Series 2005 N-1, Ref. RB (INS - AMBAC)(b)

    5.50%    09/01/2024      6,000      6,164,577

Series 2012 KK, RB

    5.00%    03/01/2023      2,135      2,135,000

Series 2013 NN, Ref. RB

    5.00%    03/01/2023      2,000      2,000,000

Series 2013 NN, Ref. RB

    5.00%    03/01/2025      3,100      3,101,936

Series 2017 B, Ref. RB

    5.00%    11/01/2023      1,500      1,514,511

New Jersey (State of) Economic Development Authority (Rutgers University); Series 2013, RB

    5.00%    06/15/2025      130      130,628

New Jersey (State of) Educational Facilities Authority (Higher Education Facilities Trust Fund); Series 2014, RB

    5.00%    06/15/2026      1,000      1,014,627

New Jersey (State of) Health Care Facilities Financing Authority (Greystone Park Psychiatric Hospital); Series 2013, Ref. RB

    5.00%    09/15/2023      400      403,145

New Jersey (State of) Health Care Facilities Financing Authority (Hackensack Meridian Health Obligated Group);

            

Series 2017, Ref. RB

    5.00%    07/01/2029      1,120      1,208,673

Series 2017, Ref. RB

    5.00%    07/01/2032      815      877,902

New Jersey (State of) Health Care Facilities Financing Authority (Inspira Health Obligated Group); Series 2016, Ref. RB

    5.00%    07/01/2031      5,100      5,336,033

New Jersey (State of) Health Care Facilities Financing Authority (RWJ Barnabas Health Obligated Group); Series 2016 A, Ref. RB

    5.00%    07/01/2031      8,840      9,412,296

New Jersey (State of) Housing & Mortgage Finance Agency (Social Bonds); Series 2022 I, RB

    5.00%    10/01/2053      3,000      3,118,389

New Jersey (State of) Transportation Trust Fund Authority;

            

Series 2005 B, RB (INS - AMBAC)(b)

    5.25%    12/15/2023      1,000      1,013,346

Series 2006 A, RB (INS - AGM)(b)

    5.25%    12/15/2023      1,370      1,389,458

Series 2010 D, RB

    5.25%    12/15/2023      4,505      4,565,123

Series 2016, RN

    5.00%    06/15/2023      1,250      1,255,747

Series 2018 A, Ref. RB

    5.00%    06/15/2028      5,000      5,259,640

Series 2018 A, Ref. RN

    5.00%    06/15/2024      3,500      3,573,153

New Jersey (State of) Turnpike Authority;

            

Series 2014 A, RB

    5.00%    01/01/2027      8,650      8,857,059

Series 2014 A, RB

    5.00%    01/01/2033      15,350      15,698,482

Series 2015 E, RB

    5.00%    01/01/2032      5,635      5,831,702

Series 2015 E, RB

    5.00%    01/01/2034      3,785      3,911,642

Salem (County of), NJ Pollution Control Financing Authority (Chambers); Series 2014 A, PCR(d)(f)

    5.00%    12/01/2023      450      453,732

Tender Option Bond Trust Receipts/Certificates;

            

Series 2016-XF1059, VRD Ctfs. (INS - AMBAC)(a)(b)(e)

    2.89%    12/15/2036      8,491      8,491,000

Series 2017-XF2482, VRD Ctfs. (INS - BAM)(a)(b)(e)

    2.90%    03/01/2042      3,935      3,935,000
                        144,889,624

New Mexico–0.72%

            

Albuquerque Municipal School District No. 12;

            

Series 2017, GO Bonds

    5.00%    08/01/2029      2,575      2,742,008

Series 2017, GO Bonds

    5.00%    08/01/2030      1,250      1,327,313

Series 2017, GO Bonds

    5.00%    08/01/2031      1,700      1,805,145

Series 2017, GO Bonds

    5.00%    08/01/2032      2,910      3,088,043

Farmington (City of), NM (San Juan and Four Corners); Series 2010 D, Ref. RB(c)

    1.10%    06/01/2023      4,000      3,966,122

New Mexico (State of) Hospital Equipment Loan Council (La Vida Expansion); Series 2019 C, RB

    2.25%    07/01/2023      1,145      1,132,767

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

13   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

New Mexico–(continued)

            

New Mexico (State of) Severance Tax Permanent Fund; Series 2021 A, RB

    5.00%    07/01/2023      $  1,150      $       1,156,890

Saltillo Public Improvement District;

            

Series 2018, Ref. RB (INS - BAM)(b)

    4.00%    10/01/2024      105      106,212

Series 2018, Ref. RB (INS - BAM)(b)

    4.00%    10/01/2025      160      163,097
                        15,487,597

New York–8.70%

            

Erie (County of), NY Industrial Development Agency (The) (City of Buffalo School District);

            

Series 2013 A, RB

    5.00%    05/01/2027      250      250,653

Series 2013 A, RB

    5.00%    05/01/2028      970      972,453

Metropolitan Transportation Authority;

            

Series 2015 D-1, Ref. RB

    5.00%    11/15/2024      115      117,772

Series 2015 F, Ref. RB

    5.00%    11/15/2027      525      534,487

Metropolitan Transportation Authority (Green Bonds);

            

Series 2016 A2, Ref. RB

    4.00%    11/15/2025      145      146,131

Series 2016 A-2, Ref. RB

    5.00%    11/15/2023      1,450      1,462,618

Series 2017 B, Ref. RB

    5.00%    11/15/2024      3,500      3,583,771

Series 2017 C-1, Ref. RB

    5.00%    11/15/2023      3,000      3,026,106

Series 2017 C-1, Ref. RB

    5.00%    11/15/2026      605      632,177

Series 2018 B, Ref. RB

    5.00%    11/15/2023      7,200      7,262,654

Series 2018 B, Ref. RB

    5.00%    11/15/2024      175      179,189

Monroe County Industrial Development Corp. (Rochester Schools Modernization); Series 2013, RB

    5.00%    05/01/2024      125      125,359

Nassau County Local Economic Assistance Corp. (Catholic Health Services of Long Island Obligated Group); Series 2014, RB

    5.00%    07/01/2032      1,500      1,529,491

Nassau County Tobacco Settlement Corp.; Series 2006 A-2, RB

    5.25%    06/01/2026      2,712      2,663,637

New York & New Jersey (States of) Port Authority;

            

One Hundred Seventy Fifth Series 2012, RB

    5.00%    12/01/2023      2,000      2,002,873

One Hundred Seventy Fifth Series 2012, RB

    5.00%    12/01/2025      480      480,719

One Hundred Seventy Fifth Series 2012, RB

    4.00%    12/01/2026      470      470,357

New York (City of), NY;

            

Series 2012 B, GO Bonds

    5.00%    08/01/2023      250      250,368

Series 2012 I, GO Bonds(c)(f)

    5.00%    04/13/2023      520      521,031

Series 2012 I, GO Bonds(c)(f)

    5.00%    04/13/2023      1,425      1,427,824

Series 2012 I, GO Bonds(c)(f)

    5.00%    04/13/2023      245      245,486

Series 2012 I, GO Bonds

    5.00%    08/01/2023      360      360,530

Series 2014 I, GO Bonds

    5.00%    03/01/2028      1,000      1,017,118

Series 2014 I, GO Bonds

    5.00%    03/01/2032      1,000      1,016,133

New York (City of), NY Industrial Development Agency (123 Washington LLC); Series 2007, VRD RB (LOC - Bank of China Ltd.)(a)(h)

    3.00%    10/01/2042      21,180      21,180,000

New York (City of), NY Transitional Finance Authority;

            

Subseries 2013 F-1, RB(c)(f)

    5.00%    03/30/2023      5,675      5,682,889

Subseries 2013 H, RB(c)(f)

    5.00%    05/01/2023      110      110,324

Subseries 2013 H, RB(c)(f)

    5.00%    05/01/2023      325      325,957

New York (State of) Dormitory Authority;

            

Series 2015 A, Ref. RB

    5.00%    03/15/2031      6,000      6,217,784

Series 2015 A, Ref. RB

    5.00%    03/15/2033      2,500      2,587,741

Series 2015 A-1, Ref. RB(e)

    4.80%    12/01/2023      155      151,700

Series 2016 D, Ref. RB

    5.00%    02/15/2029      3,965      4,216,138

New York (State of) Dormitory Authority (New York University); Series 2016 A, RB

    5.00%    07/01/2031      1,410      1,503,075

New York (State of) Housing Finance Agency (Sustainability Bonds); Series 2021 D-2, RB(c)

    0.25%    05/01/2023      2,000      1,985,379

New York (State of) Utility Debt Securitization Authority;

            

Series 2013 TE, RB

    5.00%    12/15/2030      10,000      10,130,616

Series 2015, Ref. RB

    5.00%    06/15/2025      500      502,285

New York City Housing Development Corp. (Sustainability Bonds); Series 2020 I-2, RB (CEP - Federal Housing Administration)(c)

    0.70%    05/01/2025      5,000      4,629,300

New York City Housing Development Corp. (Sustainable development Bonds); Series 2022 2B, RB(c)

    3.40%    12/22/2026      12,845      12,663,473

New York City Housing Development Corp. (Sustainable Development); Series 2021 F-2, RB (CEP - Federal Housing Administration)(c)

    0.60%    07/01/2025      1,000      916,689

New York City Housing Development Corp. (Sustainable Neighborhood); Series 2019, RB(c)

    1.75%    07/03/2023      1,890      1,874,129

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

14   Invesco Short Term Municipal Fund

     

   Interest   

Rate

     

Maturity

Date

     

    Principal

    Amount

    (000)

      Value

New York–(continued)

            

New York Counties Tobacco Trust VI;

            

Series 2016 B, Ref. RB

      5.00%        06/01/2023        $     685      $          687,380

Series 2016 B, Ref. RB

      5.00%        06/01/2026        460      473,533

New York State Urban Development Corp.; Series 2013 C, RB

      5.00%        03/15/2030        275      275,405

New York Transportation Development Corp. (American Airlines, Inc. John F. Kennedy International Airport); Series 2020, Ref. RB(d)

      5.25%        08/01/2031        15,460      15,744,207

New York Transportation Development Corp. (American Airlines, Inc.);

            

Series 2016, Ref. RB(d)

      5.00%        08/01/2026        11,500      11,505,028

Series 2016, Ref. RB(d)

      5.00%        08/01/2031        20,070      20,088,388

Orange County Funding Corp. (Mount St. Mary College); Series 2012 B, RB

      4.00%        07/01/2024        695      694,271

Rib Floater Trust; Series 2022-003, VRD RB(a)(e)

      3.00%        11/01/2041        10,000      10,000,000

Suffolk Tobacco Asset Securitization Corp.; Series 2021, Ref. RB

      4.00%        06/01/2050        2,430      2,359,131

Triborough Bridge & Tunnel Authority;

            

Series 2012 A, RB(c)(f)

      5.00%        03/16/2023        250      250,168

Series 2012 B, Ref. RB(c)(f)

      4.00%        03/16/2023        300      300,087

Series 2012 B, Ref. RB(c)(f)

      5.00%        03/16/2023        650      650,438

Series 2012 B, Ref. RB(c)(f)

      5.00%        03/16/2023        250      250,168

Series 2012 B, Ref. RB(c)(f)

      5.00%        03/16/2023        5,245      5,248,534

Series 2012 B, Ref. RB(c)(f)

      5.00%        03/16/2023        2,500      2,501,684

Series 2012 B, Ref. RB(c)(f)

      5.00%        03/16/2023        4,665      4,668,143

Series 2012 B, Ref. RB

      5.00%        11/15/2023        705      705,475

Series 2012 B, Ref. RB

      5.00%        11/15/2024        420      420,283

Series 2013 A, Ref. RB(c)(f)

      5.00%        05/15/2023        640      642,271

Series 2013 A, Ref. RB(c)(f)

      5.00%        05/15/2023        1,050      1,053,726

Series 2013 A, Ref. RB(c)(f)

      5.00%        05/15/2023        630      632,236

Series 2013 C, RB(c)(f)

      5.00%        05/15/2023        550      551,952

Westchester County Local Development Corp.; Series 2021, Ref. RB(e)

      2.88%        07/01/2026        3,180      3,036,229
                                187,695,153

North Carolina–0.67%

            

Charlotte (City of), NC (Charlotte Douglas International Airport); Series 2014, Ref. RB

      5.00%        07/01/2031        2,540      2,601,528

Charlotte-Mecklenburg Hospital Authority (The) (Atrium Health);

            

Series 2018 E, RB(c)

      0.80%        10/31/2025        5,000      4,669,268

Series 2021, Ref. VRD RB (LOC - Royal Bank Of Canada)(a)(h)

      1.85%        01/15/2042        4,860      4,860,000

Charlotte-Mecklenburg Hospital Authority (The) (Carolinas Health Care Systems); Series 2013 A, Ref. RB

      5.00%        01/15/2026        230      230,222

North Carolina (State of) Turnpike Authority; Series 2017, Ref. RB

      5.00%        01/01/2025        2,025      2,077,647

University of North Carolina; Series 2008 A, RB (INS - AGC)(b)

      4.75%        10/01/2028        10      10,011
                                14,448,676

North Dakota–0.14%

            

Ward (County of), ND; Series 2017 A, GO Bonds (INS - AGM)(b)

      4.00%        04/01/2025        3,125      3,126,355

Ohio–2.10%

            

American Municipal Power, Inc. (Prairie State Energy);

            

Series 2015 A, Ref. RB

      5.00%        02/15/2027        430      436,795

Series 2015 A, Ref. RB

      5.00%        02/15/2028        9,895      10,050,426

Series 2015 A, Ref. RB

      5.00%        02/15/2029        6,860      6,959,359

Columbus City School District; Series 2016 A, Ref. GO Bonds

      5.00%        12/01/2031        3,260      3,449,456

Cuyahoga (County of), OH (Shaker Square); Series 2010 D, Ref. RB

      5.00%        12/01/2025        825      826,175

Dayton (City of), OH (James M. Cox); Series 2014 A, Ref. RB (INS - AGM)(b)(d)

      5.00%        12/01/2026        1,335      1,336,065

Greater Cincinnati (Port of), OH Development Authority (IPS Cincinnati LLC); Series 2021, RB(c)

      4.38%        06/15/2026        1,500      1,435,465

Mayfield Heights (City of), OH; Series 2022, GO Notes

      3.00%        07/20/2023        2,000      1,992,277

Ohio (State of);

            

Series 2015, VRD RB(a)

      2.95%        01/15/2045        10,000      10,000,000

Series 2017 A, GO Bonds

      5.00%        09/01/2031        3,335      3,397,356

Series 2017 A, GO Bonds

      5.00%        03/15/2032        1,155      1,177,340

Series 2018 A, GO Bonds(c)(f)

      5.00%        03/15/2023        125      125,083

Ohio (State of) (Cleveland Clinic Health System Obligated Group); Series 2018, Ref. RB(e)

      5.00%        12/01/2023        1,050      1,043,859

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

15   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Ohio–(continued)

            

Ohio (State of) Higher Educational Facility Commission; Series 2006, RB (CPI Rate + 1.12%) (INS - AMBAC)(b)(i)

    9.66%    12/01/2023      $  2,460      $       2,508,680

RiverSouth Authority; Series 2007 A, RB

    5.75%    12/01/2027      575      574,945

Stark (County of), OH; Series 2004, GO Bonds (INS - NATL)(b)

    4.38%    12/01/2024      5      5,005
                        45,318,286

Oklahoma–0.20%

            

Oklahoma (State of) Capitol Improvement Authority;

            

Series 2014 A, Ref. RB

    5.00%    07/01/2027      750      769,211

Series 2014 C, Ref. RB

    5.00%    07/01/2028      365      373,916

Oklahoma (State of) Development Finance Authority (Sommerset); Series 2015, RB

    5.00%    07/01/2025      1,190      1,174,000

Oklahoma (State of) Municipal Power Authority; Series 1992 B, RB(f)

    5.75%    01/01/2024      150      153,169

University of Oklahoma (The);

            

Series 2014 C, Ref. RB

    5.00%    07/01/2024      1,000      1,001,418

Series 2014 C, Ref. RB

    5.00%    07/01/2029      250      250,124

Series 2014, Ref. RB

    5.00%    07/01/2027      500      500,322
                        4,222,160

Ontario–0.29%

            

Deutsche Bank Spears/Lifers Trust; Series 2021, VRD RB(a)(d)(e)

    3.03%    04/01/2031      6,300      6,300,000

Oregon–0.50%

            

Metro; Series 2012 A, GO Bonds

    5.00%    06/01/2025      4,320      4,324,046

Multnomah (County of), OR Hospital Facilities Authority (Green Bonds);

            

Series 2021 B, Ref. RB

    1.20%    06/01/2028      1,150      970,972

Series 2021 B2, Ref. RB

    0.95%    06/01/2027      2,965      2,575,743

Portland Community College District; Series 2018, GO Bonds

    5.00%    06/15/2032      1,680      1,782,210

Yamhill (County of), OR Hospital Authority (Friendsview); Series 2021 B-3, RB

    1.75%    11/15/2026      1,355      1,245,287
                        10,898,258

Pennsylvania–6.88%

            

Allegheny (County of), PA Higher Education Building Authority (Carnegie Mellon University); Series 2008 A, Ref. VRD RB(a)

    1.93%    12/01/2037      10,500      10,500,000

Allegheny (County of), PA Higher Education Building Authority (Robert Morris University); Series 2017, RB

    5.00%    10/15/2026      445      450,214

Allegheny (County of), PA Redevelopment Authority (Pittsburgh Mills); Series 2004, RB (Acquired 08/10/2017; Cost $320,749)(j)

    5.60%    07/01/2023      326      293,070

Allegheny (County of), PA Sanitary Authority; Series 2013, RB (INS - BAM)(b)

    5.00%    12/01/2028      145      146,887

Coatesville Area School District Building Authority;

            

Series 2018, RB (INS - BAM)(b)

    5.00%    12/01/2023      400      401,321

Series 2018, RB (INS - BAM)(b)

    5.00%    12/01/2024      425      426,573

Cumberland Valley School District; Series 2015, GO Bonds

    5.00%    11/15/2031      2,580      2,610,346

Geisinger Authority (Geisinger Health System); Series 2014 B, Ref. RB (1 mo. USD LIBOR + 1.07%)(c)(i)

    4.22%    06/01/2024      13,600      13,658,993

Luzerne (County of), PA;

            

Series 2015 A, Ref. GO Bonds (INS - AGM)(b)

    5.00%    11/15/2023      2,795      2,825,731

Series 2015 B, Ref. GO Bonds (INS - AGM)(b)

    5.00%    05/15/2023      2,260      2,267,092

Montgomery (County of), PA Higher Education & Health Authority (Holy Redeemer Health System); Series 2014 A, Ref. RB

    5.00%    10/01/2024      1,165      1,168,578

Pennsylvania (Commonwealth of);

            

First series 2013, GO Bonds

    4.00%    04/01/2029      2,150      2,151,814

Second series 2013, GO Bonds

    5.00%    10/15/2031      1,000      1,012,367

Second Series 2013, GO Bonds

    5.00%    10/15/2025      100      101,224

Pennsylvania (Commonwealth of) Higher Educational Facilities Authority (Thomas Jefferson University); Series 2015 B, VRD RB(a)

    3.36%    09/01/2045      58,095      58,095,000

Pennsylvania (Commonwealth of) Public School Building Authority (Philadelphia School District); Series 2015 A, Ref. RB

    5.00%    06/01/2023      6,200      6,223,021

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

16   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Pennsylvania–(continued)

            

Pennsylvania (Commonwealth of) Turnpike Commission;

            

Series 2016 A, Ref. RB

    5.00%    12/01/2030      $  9,990      $     10,594,759

Series 2016 B, Ref. RB (INS - AGM)(b)

    5.00%    06/01/2029      800      853,322

Series 2017, Ref. RB

    5.00%    12/01/2032      3,325      3,609,669

Series 2018 A-1, Ref. RB (SIFMA Municipal Swap Index + 0.60%)(i)

    3.40%    12/01/2023      1,500      1,500,958

Philadelphia (City of), PA;

            

Series 2016, Ref. RB

    5.00%    10/01/2028      1,400      1,471,488

Series 2016, Ref. RB

    5.00%    10/01/2031      3,270      3,426,865

Series 2017 A, Ref. GO Bonds

    5.00%    08/01/2023      1,000      1,007,200

Series 2019 B, GO Bonds

    5.00%    02/01/2025      1,000      1,031,628

Philadelphia (City of), PA Authority for Industrial Development;

            

Series 2013 A-1, RB

    6.25%    06/15/2023      145      146,081

Series 2013, RB(c)(f)

    5.00%    04/03/2023      1,765      1,767,325

Pittsburgh (City of), PA Water & Sewer Authority; Series 2017 C, Ref. RB (SIFMA Municipal Swap Index + 0.65%), (INS - AGM)(b)(c)(i)

    3.45%    12/01/2023      17,500      17,507,896

Sayre (City of), PA Health Care Facilities Authority (Guthrie Health); Series 2007, RB (3 mo. USD LIBOR + 0.78%)(i)

    4.11%    12/01/2024      30      29,977

Washington (County of), PA Redevelopment Authority (Victory Centre); Series 2018, Ref. RB

    5.00%    07/01/2028      1,025      1,020,668

Wilkes-Barre Area School District;

            

Series 2016 B, GO Bonds (INS - BAM)(b)

    5.00%    08/01/2024      1,010      1,033,642

Series 2016 B, GO Bonds (INS - BAM)(b)

    5.00%    08/01/2026      1,160      1,230,973
                        148,564,682

Puerto Rico–0.36%

            

Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority; Series 2020 A, Ref. RB(e)

    4.00%    07/01/2023      1,200      1,199,815

Puerto Rico (Commonwealth of) Electric Power Authority;

            

Series 2005 RR, RB (INS - AGC)(b)

    5.00%    07/01/2026      100      100,676

Series 2005 RR, RB (INS - SGI)(b)

    5.00%    07/01/2026      3,905      3,920,113

Series 2005 RR, RB (INS - SGI)(b)

    5.00%    07/01/2027      1,505      1,510,824

Series 2007 UU, Ref. RB (INS - AGM)(b)

    5.00%    07/01/2024      500      503,379

Series 2008 WW, RB (INS - AGC)(b)

    5.25%    07/01/2033      500      503,379
                        7,738,186

Rhode Island–1.62%

            

Rhode Island Health and Educational Building Corp. (Higher Education Facilities- Brown); Series 2005 A, VRD RB(a)

    2.75%    05/01/2035      27,615      27,615,000

Tobacco Settlement Financing Corp.; Series 2015 B, Ref. RB

    4.50%    06/01/2045      7,565      7,421,141
                        35,036,141

South Carolina–0.93%

            

Charleston Educational Excellence Finance Corp. (Charleston County School); Series 2013, Ref. RB

    5.00%    12/01/2025      3,000      3,043,068

College of Charleston; Series 2014 A, RB

    5.00%    04/01/2026      150      152,452

Florence & Darlington (Counties of), SC Commission for Technical Education; Series 2014, Ref. RB

    5.00%    03/01/2028      620      625,714

Piedmont Municipal Power Agency; Series 2021 C, Ref. RB

    5.00%    01/01/2032      4,000      4,248,096

South Carolina (State of) Jobs-Economic Development Authority (Prisma Health Obligated Group); Series 2018 C, VRD RB(a)

    3.39%    05/01/2048      10,000      10,000,000

South Carolina (State of) Public Service Authority; Series 2016 A, Ref. RB

    5.00%    12/01/2029      1,885      1,975,261
                        20,044,591

South Dakota–0.27%

            

South Dakota (State of) Housing Development Authority; Series 2009 A, VRD RB(a)

    2.92%    11/01/2048      5,810      5,810,000

Tennessee–1.82%

            

Greeneville (Town of), TN Health & Educational Facilities Board (Ballad Health Obligated Group);

            

Series 2018 A, Ref. RB

    5.00%    07/01/2025      2,000      2,005,565

Series 2018 A, Ref. RB

    5.00%    07/01/2032      1,000      1,002,354

Memphis (City of), TN; Series 2014, RB

    4.00%    12/01/2029      2,975      3,018,689

Nashville (City of) & Davidson (County of), TN Metropolitan Government;

            

Series 2013 A, Ref. RB

    5.00%    05/15/2027      130      130,544

Series 2013 A, Ref. RB

    5.00%    05/15/2029      780      783,417

Series 2013, Ref. GO Bonds

    5.00%    07/01/2024      120      120,728

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

17   Invesco Short Term Municipal Fund

     

   Interest   

Rate

     

Maturity

Date

     

    Principal

    Amount

    (000)

      Value

Tennessee–(continued)

            

Tennessee (State of) Local Development Authority; Series 2006, RB

      4.13%        03/01/2023        $         5      $              5,000

Tennessee Energy Acquisition Corp.;

            

Series 2006 A, RB

      5.25%        09/01/2023        2,725      2,736,342

Series 2006 A, RB

      5.25%        09/01/2024        15,115      15,266,106

Series 2018, RB(c)

      4.00%        11/01/2025        10,130      10,124,078

Tennessee Housing Development Agency (Social Bonds); Series 2022, RB

      5.50%        01/01/2053        3,750      3,980,109
                                39,172,932

Texas–14.07%

            

Alamo Community College District;

            

Series 2007, GO Bonds (INS - NATL)(b)

      4.50%        08/15/2033        590      590,597

Series 2012 A, Ref. RB

      5.00%        11/01/2023        775      776,082

Alvarado Independent School District; Series 2022, GO Bonds (CEP - Texas Permanent School Fund)(c)

      2.75%        08/15/2025        2,000      1,991,803

Arlington Higher Education Finance Corp. (Basis Texas Charter School); Series 2021, RB(c)(e)

      4.50%        06/15/2026        1,100      1,052,933

Austin Independent School District;

            

Series 2023, GO Bonds

      5.00%        08/01/2035        2,000      2,323,672

Series 2023, GO Bonds

      5.00%        08/01/2036        2,265      2,598,437

Bexar (County of), TX Hospital District;

            

Series 2018, GO Bonds

      5.00%        02/15/2029        1,000      1,001,629

Series 2018, GO Bonds

      5.00%        02/15/2030        1,895      1,898,025

Calhoun (County of), TX Navigation Industrial Development Authority (Max Midstream Texas LLC); Series 2021, RN(d)(e)

      3.63%        07/01/2026        4,000      3,621,309

Canadian River Municipal Water Authority; Series 2014, Ref. RB

      5.00%        02/15/2024        250      250,348

Conroe Independent School District; Series 2016 A, Ref. GO Bonds (CEP - Texas Permanent School Fund)

      5.00%        02/15/2028        7,810      8,283,633

Cypress-Fairbanks Independent School District; Series 2014 C, Ref. GO Bonds (CEP - Texas Permanent School Fund)

      5.00%        02/15/2028        1,500      1,524,975

Dallas & Fort Worth (Cities of), TX (Dallas/Fort Worth International Airport);

            

Series 2013 D, Ref. RB

      5.25%        11/01/2027        225      228,088

Series 2013 D, Ref. RB

      5.25%        11/01/2031        85      86,087

Series 2013 F, Ref. RB

      5.13%        11/01/2025        260      262,995

Series 2013 F, Ref. RB

      5.25%        11/01/2028        2,295      2,326,137

Series 2013 F, Ref. RB

      5.25%        11/01/2030        570      577,328

Series 2014 C, RB

      5.00%        11/01/2030        850      859,545

Dallas (City of), TX; Series 2013 A, Ref. GO Bonds

      5.00%        02/15/2031        3,465      3,470,771

Dallas (County of), TX; Series 2016, GO Bonds

      5.00%        08/15/2029        4,605      4,882,708

Dallas College; Series 2022, GO Bonds

      5.00%        02/15/2035        1,000      1,043,927

Denton (City of), TX;

            

Series 2017, RB

      5.00%        12/01/2030        1,320      1,403,743

Series 2017, RB

      5.00%        12/01/2032        3,000      3,181,696

El Paso (City of), TX; Series 2016, GO Bonds

      5.00%        08/15/2028        5,000      5,321,191

El Paso (County of), TX Hospital District; Series 2013, Ctfs. of Obligation

      5.00%        08/15/2025        675      678,485

Frisco (City of), TX; Series 2013, Ref. GO Bonds

      5.00%        02/15/2025        1,000      1,001,552

Frisco Independent School District; Series 2013, GO Bonds (CEP - Texas Permanent School Fund)

      5.00%        08/15/2024        135      136,143

Goose Creek Consolidated Independent School District; Series 2016 A, Ref. GO Bonds (CEP - Texas Permanent School Fund)

      5.00%        02/15/2029        5,000      5,277,060

Grand Prairie Independent School District; Series 2011, Ref. GO Bonds (CEP - Texas Permanent School Fund)

      4.00%        02/15/2026        675      675,490

Guadalupe (County of) & Seguin (City of), TX Hospital Board of Managers;

            

Series 2015, Ref. RB

      5.00%        12/01/2023        1,200      1,196,631

Series 2015, Ref. RB

      5.00%        12/01/2024        1,865      1,854,539

Harris & Montgomery (Counties of), TX Municipal Utility District No. 386; Series 2014, GO Bonds (INS -AGM)(b)

      4.00%        09/01/2030        620      620,412

Harris County Industrial Development Corp. (Exxon Mobil Corp.); Series 1984, VRD RB(a)

      1.85%        03/01/2024        12,000      12,000,000

Houston (City of), TX;

            

Series 2014 A, Ref. GO Bonds

      5.00%        03/01/2026        100      101,953

Series 2018 C, Ref. VRD RB (LOC - Barclays Bank PLC)(a)(h)

      2.83%        05/15/2034        16,670      16,670,000

Series 2021 B, Ref. RB (SIFMA Municipal Swap Index + 0.01%)(c)(i)

      2.81%        03/10/2023        15,000      15,000,000

Houston (City of), TX Airport System (United Airlines, Inc. Terminal E); Series 2014, Ref. RB(d)

      4.75%        07/01/2024        1,095      1,094,094

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

18   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Texas–(continued)

            

Houston Independent School District; Series 2016 A, Ref. GO Bonds (CEP - Texas Permanent School Fund)

    5.00%    02/15/2031      $  1,125      $       1,187,991

Katy Independent School District; Series 2017, GO Bonds (CEP - Texas Permanent School Fund)

    5.00%    02/15/2031      1,150      1,241,895

Laredo (City of), TX; Series 2016, Ref. RB

    5.00%    03/01/2031      1,000      1,048,497

Lewisville (City of), TX; Series 2013, Ref. RB

    5.00%    02/15/2029      1,600      1,601,976

Lewisville Independent School District;

            

Series 2018, GO Bonds (CEP - Texas Permanent School Fund)

    5.00%    08/15/2025      500      504,037

Series 2018, GO Bonds (CEP - Texas Permanent School Fund)

    5.00%    08/15/2026      100      100,798

Lower Colorado River Authority;

            

Series 2013 A, Ref. RB

    5.13%    05/15/2024      100      100,388

Series 2013 A, Ref. RB(f)

    5.00%    05/15/2026      1,950      1,956,839

Series 2013 A, Ref. RB(f)

    5.00%    05/15/2027      785      787,802

Series 2013 A, Ref. RB(f)

    5.00%    05/15/2031      2,810      2,819,221

Series 2013 A, Ref. RB(f)

    5.00%    05/15/2032      5,955      5,973,198

Series 2013, Ref. RB

    5.25%    05/15/2027      245      245,971

Series 2013, Ref. RB

    5.50%    05/15/2030      4,025      4,042,304

Mission Economic Development Corp. (Natgasoline); Series 2018, Ref. RB(d)(e)

    4.63%    10/01/2031      1,000      977,463

Mueller Local Government Corp.; Series 2009, RB

    4.25%    09/01/2029      30      30,028

New Hope Cultural Education Facilities Finance Corp. (CHF - Collegiate Housing San Antonio I, LLC - Texas A&M University);

            

Series 2016 A, RB(f)

    5.00%    04/01/2023      385      385,479

Series 2016 A, RB(f)

    5.00%    04/01/2024      405      411,879

New Hope Cultural Education Facilities Finance Corp. (CHF-Collegiate Housing Island Campus, LLC - Texas A&M University-Corpus Christi Island Campus); Series 2017 A, RB(f)

    4.00%    04/01/2023      1,295      1,295,637

North Harris (County of), TX Regional Water Authority; Series 2013, Ref. RB (INS - BAM)(b)

    5.00%    12/15/2030      205      205,132

North Texas Municipal Water District; Series 2016, Ref. RB

    5.00%    06/01/2028      1,050      1,111,021

North Texas Tollway Authority;

            

Series 2014 B, Ref. RB

    5.00%    01/01/2031      2,420      2,447,589

Series 2016 A, Ref. RB

    5.00%    01/01/2026      3,850      3,899,314

Series 2017 A, RB

    5.00%    01/01/2025      55      55,077

Series 2017 B, Ref. RB

    5.00%    01/01/2024      50      50,067

Series 2017 B, Ref. RB

    5.00%    01/01/2025      15      15,021

Pearland (City of), TX; Series 2014, Ref. GO Bonds

    5.00%    03/01/2025      200      200,303

Permanent University Fund - Texas A&M University System; Series 2012 A, RB

    5.00%    07/01/2023      250      250,393

Plano Independent School District;

            

Series 2023, GO Bonds

    5.00%    02/15/2035      2,600      3,007,832

Series 2023, GO Bonds

    5.00%    02/15/2036      1,100      1,258,192

Port Arthur (Port of), TX Navigation District;

            

Series 2010, VRD RB(a)

    3.67%    11/01/2040      8,175      8,175,000

Subseries 2010 D, VRD RB(a)

    3.65%    11/01/2040      20,000      20,000,000

Rib Floater Trust; Series 2022-006, VRD RB (LOC - Barclays Bank PLC)(a)(e)(h)

    2.95%    11/15/2046      36,250      36,250,000

Robstown (City of), TX; Series 2009, Ctfs. of Obligation (INS - AGM)(b)(g)

    0.00%    03/01/2024      490      470,419

Rowlett (City of), TX (Bayside Public Improvement District North Improvement Area); Series 2016, RB

    4.90%    09/15/2024      65      64,290

San Antonio (City of), TX;

            

Series 2016, Ref. RB

    5.00%    02/01/2031      2,145      2,289,066

Series 2017, Ref. RB

    5.00%    02/01/2032      3,105      3,345,179

San Antonio (City of), TX Water System;

            

Series 2013 B, Ref. RB

    5.00%    05/15/2027      535      536,975

Series 2013 E, Ref. RB

    5.00%    05/15/2027      1,900      1,907,014

Southwest Independent School District; Series 2014, Ref. GO Bonds (CEP - Texas Permanent School Fund)

    5.00%    02/01/2030      1,400      1,422,126

Spring Independent School District; Series 2023, GO Bonds

    5.00%    08/15/2035      3,120      3,619,210

Temple (City of), TX; Series 2012, Ref. GO Bonds

    5.00%    08/01/2023      225      225,333

Texas (State of); Series 2015, Ref. GO Bonds

    5.00%    10/01/2029      10,000      10,515,345

Texas (State of) Transportation Commission; Series 2014 B, VRD RB(a)

    2.81%    04/01/2032      40,000      40,000,000

Texas Municipal Gas Acquisition & Supply Corp. I; Series 2008 D, RB

    6.25%    12/15/2026      17,275      18,032,020

Texas Municipal Gas Acquisition & Supply Corp. II; Series 2007, RB (SIFMA Municipal Swap Index + 0.55%)(i)

    3.35%    09/15/2027      12,915      12,701,049

Trinity River Authority; Series 2014, Ref. RB

    5.00%    08/01/2024      500      503,896

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

19   Invesco Short Term Municipal Fund

     

   Interest   

Rate

   

Maturity

Date

   

    Principal

    Amount

    (000)

      Value

Texas–(continued)

            

West Travis County Public Utility Agency; Series 2017, Ref. RB (INS - BAM)(b)

    5.00%    08/15/2030      $       45      $            48,860

Wink-Loving Independent School District; Series 2022, GO Bonds (CEP - Texas Permanent School Fund)

    5.00%    02/15/2030      475      475,276
                        303,656,420

Utah–0.11%

            

University of Utah (The); Series 2017 B-1, Ref. RB

    5.00%    08/01/2029      1,870      2,042,675

Utah Telecommunication Open Infrastructure Agency; Series 2022, Ref. RB

    5.00%    06/01/2023      250      250,991
                        2,293,666

Vermont–0.04%

            

University of Vermont and State Agricultural College; Series 2014, Ref. RB

    5.00%    10/01/2026      500      512,947

Vermont (State of); Series 2012 E, GO Bonds

    5.00%    08/15/2023      340      340,506
                        853,453

Virginia–0.56%

            

Chesapeake Bay Bridge & Tunnel District; Series 2019, RAN

    5.00%    11/01/2023      4,400      4,441,987

Fairfax (County of), VA Industrial Development Authority (Inova Health System); Series 2018 B-2, Ref. RB(c)

    5.00%    05/15/2023      2,550      2,557,583

Virginia (Commonwealth of) Transportation Board (Garvee); Series 2017, Ref. RB

    5.00%    09/15/2023      5,000      5,050,218
                        12,049,788

Washington–2.79%

            

Auburn School District No. 408 of King & Pierce Counties; Series 2014, Ref. GO Bonds (CEP - Oregon School Bond Guaranty)

    5.00%    12/01/2027      100      101,398

Central Puget Sound Regional Transit Authority; Series 1999, RB (INS - NATL)(b)

    4.75%    02/01/2028      1,505      1,532,405

Chelan County School District No. 246 Wenatchee; Series 2014, GO Bonds (CEP - Oregon School Bond Guaranty)

    5.00%    12/01/2030      1,480      1,511,578

Energy Northwest (Columbia Generating Station); Series 2014, Ref. RB

    5.00%    07/01/2031      2,000      2,050,174

Kelso (City of), WA Housing Authority (Chinook & Columbia Apartments); Series 1998, RB

    5.60%    03/01/2028      10      9,999

Lewis (County of), WA Public Utility District No. 1; Series 2013, Ref. RB

    5.25%    04/01/2032      6,115      6,180,921

Seattle (City of), WA; Series 2013, Ref. RB

    5.00%    07/01/2024      250      251,493

Seattle (Port of), WA;

            

Series 2015 A, RB

    5.00%    04/01/2030      2,840      2,901,648

Series 2017 C, RB(d)

    5.00%    05/01/2025      275      283,074

Snohomish County School District No. 15 Edmonds; Series 2014, GO Bonds (CEP - Oregon School Bond Guaranty)

    5.00%    12/01/2031      3,250      3,318,142

Tacoma (City of), WA Regional Water Supply System; Series 2013, Ref. RB

    5.00%    12/01/2026      250      251,109

Washington (State of);

            

Series 2013 A, GO Bonds

    5.00%    08/01/2027      125      125,972

Series 2013 A, GO Bonds

    5.50%    08/01/2029      12,750      12,875,164

Series 2013 A, GO Bonds

    5.00%    08/01/2032      10,000      10,077,789

Series 2013 D, GO Bonds

    5.00%    02/01/2026      250      250,244

Series 2016 B, GO Bonds

    5.00%    08/01/2031      1,205      1,278,726

Series 2016 B, Ref. GO Bonds

    5.00%    07/01/2032      3,840      4,033,640

Washington (State of) Health Care Facilities Authority (Providence Health & Services);

            

Series 2012 A, RB

    5.00%    10/01/2025      125      125,669

Series 2012 A, RB

    5.00%    10/01/2026      2,540      2,553,266

Series 2012 A, RB

    5.00%    10/01/2027      2,415      2,427,303

Series 2012 A, RB

    5.00%    10/01/2028      165      165,820

Series 2012 A, RB

    4.25%    10/01/2040      2,800      2,784,357

Washington (State of) Tobacco Settlement Authority; Series 2018, Ref. RB

    5.00%    06/01/2024      3,750      3,768,150

Yakima County School District No. JT3 Naches Valley; Series 2014, GO Bonds (CEP - Oregon School Bond Guaranty)

    5.00%    12/01/2030      1,420      1,446,803
                        60,304,844

West Virginia–0.66%

            

West Virginia (State of) Hospital Finance Authority (West Virginia University Health System Obligated Group); Series 2018 E, Ref. VRD RB(a)

    3.37%    06/01/2033      14,255      14,255,000

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

20   Invesco Short Term Municipal Fund

     

   Interest   

Rate

     

Maturity

Date

     

    Principal

    Amount

    (000)

      Value

Wisconsin–1.14%

            

Southeast Wisconsin Professional Baseball Park District; Series 1998 A, Ref. RB(f)

      5.50%        12/15/2026        $  3,360      $       3,553,793

Wisconsin (State of) Center District; Series 1999, Ref. RB (INS - AGM)(b)

      5.25%        12/15/2023        235      237,880

Wisconsin (State of) Department of Transportation; Series 2017 1, Ref. RB

      5.00%        07/01/2030        1,010      1,034,407

Wisconsin (State of) Health & Educational Facilities Authority (Aspirus, Inc. Obligated Group);

            

Series 2013, RB

      5.00%        08/15/2026        100      100,502

Series 2013, RB

      5.00%        08/15/2027        800      803,475

Wisconsin (State of) Health & Educational Facilities Authority (Camillus Health System); Series 2019 B-2, Ref. RB

      2.55%        11/01/2027        1,155      1,081,539

Wisconsin (State of) Health & Educational Facilities Authority (Hospital Sisters Services, Inc.); Series 2014, Ref. RB

      5.00%        11/15/2029        1,050      1,075,444

Wisconsin (State of) Health & Educational Facilities Authority (Mercy Alliance); Series 2012, RB

      5.00%        06/01/2027        3,225      3,227,235

Wisconsin (State of) Health & Educational Facilities Authority (Prohealth Care Obligated Group);

            

Series 2015, Ref. RB

      5.00%        08/15/2030        170      174,379

Series 2015, Ref. RB

      5.00%        08/15/2031        815      834,528

Wisconsin (State of) Health & Educational Facilities Authority (Thedacare, Inc.); Series 2015, Ref. RB

      5.00%        12/15/2029        125      128,965

Wisconsin (State of) Health & Educational Facilities Authority (Unitypoint Health); Series 2014 A, RB

      5.00%        12/01/2028        980      1,008,864

Wisconsin (State of) Public Finance Authority;

            

Series 2016, RB

      5.00%        03/01/2032        4,315      4,512,924

Series 2022, Ref. RB(c)

      3.30%        10/01/2026        1,745      1,734,463

Wisconsin (State of) Public Finance Authority (Renown Regional Medical Center); Series 2015 A, Ref. RB

      5.00%        06/01/2031        3,295      3,403,469

Wisconsin (State of) Public Finance Authority (The Estates at Eagle’s Pomite); Series 2016 A, RB

      4.00%        01/01/2024        100      98,066

WPPI Energy;

            

Series 2013 A, RB

      5.00%        07/01/2024        580      583,232

Series 2014 A, Ref. RB

      5.00%        07/01/2030        1,000      1,016,178

Series 2014 A, Ref. RB

      5.00%        07/01/2032        100      101,605
                                24,710,948

Total Municipal Obligations (Cost $2,059,880,225)

                               2,055,926,577
                       Shares       

MuniFund Preferred Shares–2.07%

            

Nuveen AMT-Free Municipal Credit Income Fund; MFP, Series B

                        57,500      5,750,000

Nuveen AMT-Free Quality Municipal Income Fund; MFP, Series D

                        34,870      34,870,000

Nuveen California AMT-Free Quality Municipal Income Fund; MFP

                        40,000      4,000,000

Total MuniFund Preferred Shares (Cost$ 44,621,503)

                               44,620,000
     Interest
Rate		      Maturity
Date		          Principal
    Amount
    (000)		       

U.S. Dollar Denominated Bonds & Notes–0.01%

            

California–0.01%

            

CalPlant I LLC;

            

Series 21A(e)(k)

      9.50%        06/05/2023        $       25      25,000

Series 21B(e)(k)

      9.50%        06/05/2023        90      90,000

Series 22A(e)(k)

      9.50%        06/05/2023        50      50,000

Series 22B(e)(k)

      9.50%        06/05/2023        5      5,000

Series 22C(e)(k)

      9.50%        06/05/2023        35      35,000

Series 22X(e)

      9.50%        03/31/2023        50      50,271

Series 23A(e)(k)

      9.50%        03/31/2023        20      20,000

Series 23B(e)

      9.50%        03/31/2023        15      15,000

Total U.S. Dollar Denominated Bonds & Notes (Cost $290,000)

                               290,271

TOTAL INVESTMENTS IN SECURITIES(l)–97.36% (Cost $2,104,791,728)

                               2,100,836,848

OTHER ASSETS LESS LIABILITIES–2.64%

                               56,902,897

NET ASSETS–100.00%

                               $2,157,739,745

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

21   Invesco Short Term Municipal Fund

Investment Abbreviations:
AGC    - Assured Guaranty Corp.
AGM    - Assured Guaranty Municipal Corp.
AMBAC    - American Municipal Bond Assurance Corp.
BAM    - Build America Mutual Assurance Co.
CEP    - Credit Enhancement Provider
CHF    - Swiss Franc
COP    - Certificates of Participation
CPI    - Consumer Price Index
Ctfs.    - Certificates
FHLMC    - Federal Home Loan Mortgage Corp.
GNMA    - Government National Mortgage Association
GO    - General Obligation
INS    - Insurer
LIBOR    - London Interbank Offered Rate
LOC    - Letter of Credit
MFP    - MuniFund Preferred Shares
NATL    - National Public Finance Guarantee Corp.
PCR    - Pollution Control Revenue Bonds
RAN    - Revenue Anticipation Notes
RB    - Revenue Bonds
Ref.    - Refunding
RN    - Revenue Notes
SGI    - Syncora Guarantee, Inc.
SIFMA    - Securities Industry and Financial Markets Association
SOFR    - Secured Overnight Financing Rate
USD    - U.S. Dollar
VRD    - Variable Rate Demand
Wts.    - Warrants

Notes to Schedule of Investments:

 

(a) 

Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically by the issuer or agent based on current market conditions. Rate shown is the rate in effect on February 28, 2023.

(b)

Principal and/or interest payments are secured by the bond insurance company listed.

(c) 

Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

(d) 

Security subject to the alternative minimum tax.

(e)

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 February 28, 2023 was $162,680,948, which represented 7.54% of the Fund’s Net Assets.

(f)

Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.

(g)

Zero coupon bond issued at a discount.

(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)

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2023.

(j) 

Restricted security. The value of this security at February 28, 2023 represented less than 1% of the Fund’s Net Assets.

(k) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

(l)

Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligations but may be called upon to satisfy issuer’s obligations. No concentration of any single entity was greater than 5% each.

Portfolio Composition

By credit sector, based on total investments

As of February 28, 2023

 

Revenue Bonds

      56.71 % 

Other

      27.77  

General Obligation Bonds

      12.87  

Pre-Refunded Bonds

      2.65  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

22   Invesco Short Term Municipal Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value
(Cost $2,104,791,728)

    $ 2,100,836,848  

 

  

Cash

      46,400,374  

 

  

Receivable for:

   

Investments sold

      358,198  

 

  

Fund shares sold

      1,344,718  

 

  

Interest

      17,582,556  

 

  

Investments matured, at value (Cost $566,990)

      28,500  

 

  

Investment for trustee deferred compensation and retirement plans

      47,627  

 

  

Other assets

      85,013  

 

  

Total assets

      2,166,683,834  

 

  

Liabilities:

   

Payable for:

   

Investments purchased

      266,631  

 

  

Dividends

      1,406,409  

 

  

Fund shares reacquired

      6,420,098  

 

  

Accrued fees to affiliates

      679,606  

 

  

Accrued trustees’ and officers’ fees and benefits

      2,652  

 

  

Accrued other operating expenses

      121,066  

 

  

Trustee deferred compensation and retirement plans

      47,627  

 

  

Total liabilities

      8,944,089  

 

  

Net assets applicable to shares outstanding

    $ 2,157,739,745  

 

  

Net assets consist of:

   

Shares of beneficial interest

    $ 2,188,145,431  

 

  

Distributable earnings (loss)

      (30,405,686 ) 

 

  
   $ 2,157,739,745  

 

  

Net Assets:

   

Class A

    $ 743,947,726  

 

  

Class Y

    $ 1,350,790,046  

 

  

Class R6

    $ 63,001,973  

 

  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

      199,496,683  

 

  

Class Y

      362,174,032  

 

  

Class R6

      16,836,958  

 

  

Class A:

   

Net asset value and offering price per share

    $ 3.73  

 

  

Class Y:

   

Net asset value and offering price per share

    $ 3.73  

 

  

Class R6:

   

Net asset value and offering price per share

    $ 3.74  

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

23   Invesco Short Term Municipal Fund

Statement of Operations

For the six months ended February 28, 2023

(Unaudited)

 

Investment income:

   

Interest

    $ 34,894,363  

 

  

Expenses:

   

Advisory fees

      4,463,346  

 

  

Administrative services fees

      171,683  

 

  

Custodian fees

      6,912  

 

  

Distribution fees:

   

Class A

      1,065,221  

 

  

Transfer agent fees – A and Y

      1,028,623  

 

  

Transfer agent fees – R6

      3,997  

 

  

Trustees’ and officers’ fees and benefits

      15,624  

 

  

Registration and filing fees

      125,428  

 

  

Reports to shareholders

      29,023  

 

  

Professional services fees

      39,079  

 

  

Other

      15,176  

 

  

Total expenses

      6,964,112  

 

  

Less: Expense offset arrangement(s)

      (957 ) 

 

  

Net expenses

      6,963,155  

 

  

Net investment income

      27,931,208  

 

  

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from unaffiliated investment securities (includes net gains (losses) from securities sold to affiliates of $(2,073,204))

      (11,010,053 ) 

 

  

Change in net unrealized appreciation of unaffiliated investment securities

      2,946,693  

 

  

Net realized and unrealized gain (loss)

      (8,063,360 ) 

 

  

Net increase in net assets resulting from operations

    $ 19,867,848  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

24   Invesco Short Term Municipal Fund

Statement of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

     February 28,     August 31,  
     2023     2022  

 

  

Operations:

     

Net investment income

    $ 27,931,208     $ 20,818,048  

 

  

Net realized gain (loss)

      (11,010,053 )      (1,327,151 ) 

 

  

Change in net unrealized appreciation (depreciation)

      2,946,693       (49,188,704 ) 

 

  

Net increase (decrease) in net assets resulting from operations

      19,867,848       (29,697,807 ) 

 

  

Distributions to shareholders from distributable earnings:

     

Class A

      (7,709,862 )      (6,008,801 ) 

 

  

Class C

      –       (3,851 ) 

 

  

Class Y

      (15,022,353 )      (12,710,418 ) 

 

  

Class R6

      (592,013 )      (299,912 ) 

 

  

Total distributions from distributable earnings

      (23,324,228 )      (19,022,982 ) 

 

  

Share transactions–net:

     

Class A

      (256,375,996 )      (559,051,213 ) 

 

  

Class C

      –       (37,125,481 ) 

 

  

Class Y

      (185,550,081 )      (198,850,549 ) 

 

  

Class R6

      17,327,640       20,887,859  

 

  

Net increase (decrease) in net assets resulting from share transactions

      (424,598,437 )      (774,139,384 ) 

 

  

Net increase (decrease) in net assets

      (428,054,817 )      (822,860,173 ) 

 

  

Net assets:

     

Beginning of period

      2,585,794,562       3,408,654,735  

 

  

End of period

    $ 2,157,739,745     $ 2,585,794,562  

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

25   Invesco Short Term Municipal Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

    

Net asset

value,

beginning

of period

  

Net

investment

income(a)

  

Net gains

(losses)

on securities

(both

realized and

unrealized)

  

Total from

investment

operations

  

Dividends

from net

investment

income

  

Net asset

value, end

of period

  

Total

return(b)

  

Net assets,

end of period

(000’s omitted)

  

Ratio of

expenses

to average

net assets

with

fee waivers

and/or

expenses

absorbed

  

Ratio of

expenses

to average net

assets without

fee waivers

and/or

expenses

absorbed

  

Supplemental

ratio of

expenses

to average

net assets

with fee waivers

(excluding

interest,

facilities and

maintenance

fees)

  

Ratio of net

investment

income

to average

net assets

  

Portfolio

turnover (c)

Class A

                                                    

Six months ended 02/28/23

       $3.73       $0.04       $(0.01 )       $0.03       $(0.03 )       $3.73       0.92 %       $   743,948       0.75 %(d)       0.75 %(d)       0.75 %(d)       2.21 %(d)       58 %

Year ended 08/31/22

       3.79       0.02       (0.06 )       (0.04 )       (0.02 )       3.73       (1.08 )       1,001,761       0.75       0.75       0.74       0.57       114

Year ended 08/31/21

       3.79       0.02       0.01       0.03       (0.03 )       3.79       0.72       1,581,245       0.78       0.78       0.75       0.59       24

Year ended 08/31/20

       3.77       0.06       0.02       0.08       (0.06 )       3.79       2.14       896,488       0.82       0.82       0.76       1.56       89

Three months ended 08/31/19

       3.75       0.02       0.02       0.04       (0.02 )       3.77       1.03       405,334       0.82 (d)        0.82 (d)        0.76 (d)        1.72 (d)        13

Year ended 05/31/19

       3.72       0.07       0.03       0.10       (0.07 )       3.75       2.74       402,504       0.85       0.85       0.77       1.85       69

Year ended 05/31/18

       3.75       0.07       (0.04 )       0.03       (0.06 )       3.72       0.94       413,457       0.86       0.86       0.79       1.84       80

Class Y

                                                    

Six months ended 02/28/23

       3.73       0.05       (0.01 )       0.04       (0.04 )       3.73       1.04       1,350,790       0.50 (d)        0.50 (d)        0.50 (d)        2.46 (d)        58

Year ended 08/31/22

       3.80       0.03       (0.07 )       (0.04 )       (0.03 )       3.73       (1.08 )       1,538,307       0.50       0.50       0.49       0.82       114

Year ended 08/31/21

       3.79       0.03       0.02       0.05       (0.04 )       3.80       1.24       1,764,272       0.53       0.53       0.50       0.84       24

Year ended 08/31/20

       3.77       0.07       0.02       0.09       (0.07 )       3.79       2.39       1,230,817       0.57       0.57       0.51       1.81       89

Three months ended 08/31/19

       3.75       0.02       0.02       0.04       (0.02 )       3.77       1.09       797,580       0.57 (d)        0.57 (d)        0.51 (d)        1.97 (d)        13

Year ended 05/31/19

       3.72       0.08       0.03       0.11       (0.08 )       3.75       3.00       786,224       0.60       0.60       0.52       2.09       69

Year ended 05/31/18

       3.75       0.08       (0.04 )       0.04       (0.07 )       3.72       1.19       594,628       0.61       0.61       0.54       2.09       80

Class R6

                                                    

Six months ended 02/28/23

       3.75       0.05       (0.02 )       0.03       (0.04 )       3.74       0.81       63,002       0.43 (d)        0.43 (d)        0.43 (d)        2.53 (d)        58

Year ended 08/31/22

       3.81       0.03       (0.06 )       (0.03 )       (0.03 )       3.75       (0.75 )       45,727       0.44       0.44       0.43       0.88       114

Year ended 08/31/21

       3.80       0.03       0.02       0.05       (0.04 )       3.81       1.32       25,405       0.44       0.44       0.41       0.93       24

Year ended 08/31/20

       3.77       0.07       0.03       0.10       (0.07 )       3.80       2.72       2,903       0.50       0.51       0.44       1.88       89

Three months ended 08/31/19

       3.75       0.02       0.02       0.04       (0.02 )       3.77       1.10       10       0.50 (d)        0.50 (d)        0.44 (d)        2.05 (d)        13

Period ended 05/31/19(e)

       3.75       0.00       0.00       0.00       (0.00 )       3.75       2.73       10       0.50 (d)        0.50 (d)        0.42 (d)        2.20 (d)        69

 

(a) 

Calculated using average shares outstanding.

(b) 

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable.

(c) 

Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

(d) 

Annualized.

(e) 

Commencement date after the close of business on May 24, 2019.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

26   Invesco Short Term Municipal Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Short Term Municipal Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is to seek tax-free income.

The Fund currently consists of three different classes of shares: Class A, Class Y and Class R6. Class Y shares are available only to certain investors. Class A, Class Y and Class R6 shares are sold at net asset value.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations – Securities, including restricted securities, are valued according to the following policy.

Securities generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 are not readily available are fair valued by Invesco Advisers, Inc. (the “Adviser” or “Invesco”) in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). If a fair value price provided by a pricing service is not representative of market value in the Adviser’s judgment (“unreliable”), the Adviser will fair value the security using the Valuation Procedures. 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.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. 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.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C.

Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions – Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

 

27   Invesco Short Term Municipal Fund

E.

Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H.

Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I.

Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.

J.

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 the 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.

Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.

Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.

K.

COVID-19 Risk – The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

 

Average Daily Net Assets      Rate* 

First $100 million

    0.500% 

Next $150 million

    0.450% 

Next $250 million

    0.425% 

Next $500 million

    0.400% 

Next $4 billion

    0.370% 

Over $5 billion

    0.350% 

 

*

The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended February 28, 2023, the effective advisory fee rate incurred by the Fund was 0.38%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.

 

28   Invesco Short Term Municipal Fund

The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class Y and Class R6 shares to 1.50%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2023. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, shares (collectively, the “Plans”). The Fund, pursuant to the Plans, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2023 , expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 28, 2023, IDI advised the Fund that IDI retained $993 in front-end sales commissions from the sale of Class A shares and $7,185 from Class A shares for CDSC imposed upon redemptions by shareholders.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total

Investments in Securities

                                                  

Municipal Obligations

        $–        $ 2,055,926,577        $ –        $ 2,055,926,577

MuniFund Preferred Shares

          –          44,620,000          –          44,620,000

U.S. Dollar Denominated Bonds & Notes

          –          65,271          225,000          290,271

Total Investments in Securities

          –          2,100,611,848          225,000          2,100,836,848

Other Investments - Assets

                                                  

Investments Matured

          –          28,500          –          28,500

Total Investments

        $–        $ 2,100,640,348        $ 225,000        $ 2,100,865,348

NOTE 4–Security Transactions with Affiliated Funds

The Fund is permitted to purchase securities from or sell securities to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund that is or could be considered an “affiliated person” by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s

 

 

29   Invesco Short Term Municipal Fund

“current market price”, as provided for in these procedures and Rule 17a-7. Pursuant to these procedures, for the six months ended February 28, 2023, the Fund engaged in securities purchases of $194,165,806 and securities sales of $192,481,660, which resulted in net realized gains (losses) of $(2,073,204).

NOTE 5–Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $957.

NOTE 6–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 8–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of August 31, 2022, as follows:

 

Capital Loss Carryforward*  

 

  
Expiration      Short-Term        Long-Term        Total  

 

  

Not subject to expiration

      $ 9,393,733        $ 13,065,999        $ 22,459,732  

 

  

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 9–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2023 was $1,301,847,962 and $1,574,277,685, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

  

Aggregate unrealized appreciation of investments

      $   5,548,234  

 

  

Aggregate unrealized (depreciation) of investments

      (11,019,605 ) 

 

  

Net unrealized appreciation (depreciation) of investments

      $  (5,471,371 ) 

 

  

Cost of investments for tax purposes is $2,106,336,719.

NOTE 10–Share Information

 

     Summary of Share Activity  

 

  
     Six months ended      Year ended  
     February 28, 2023(a)      August 31, 2022  
     Shares      Amount      Shares      Amount  

 

  

Sold:

            

Class A

      20,704,666      $ 77,169,376        117,070,926      $ 441,433,972  

 

  

Class C(b)

      -        -        545,403        2,054,311  

 

  

Class Y

      142,413,947        531,201,908        322,528,289        1,214,169,350  

 

  

Class R6

      7,726,662        28,909,857        9,033,747        34,071,086  

 

  

 

30   Invesco Short Term Municipal Fund

     Summary of Share Activity  

 

  
     Six months ended     Year ended  
     February 28, 2023(a)     August 31, 2022  
     Shares     Amount     Shares     Amount  

 

  

Issued as reinvestment of dividends:

         

Class A

      1,538,473     $ 5,735,181       1,173,576     $ 4,406,761  

 

  

Class C(b)

      -       -       3       13  

 

  

Class Y

      2,596,332       9,679,251       2,240,517       8,418,611  

 

  

Class R6

      16,846       63,028       8,773       33,019  

 

  

Automatic conversion of Class C shares to Class A shares:

         

Class A

      -       -       2,324,699       8,721,184  

 

  

Class C

      -       -       (2,335,886 )      (8,721,184 ) 

 

  

Reacquired:

         

Class A

      (91,000,648 )      (339,280,553 )      (268,989,560 )      (1,013,613,130 ) 

 

  

Class C(b)

      -       -       (8,167,903 )      (30,458,621 ) 

 

  

Class Y

      (194,758,109 )      (726,431,240 )      (377,691,670 )      (1,421,438,510 ) 

 

  

Class R6

      (3,111,624 )      (11,645,245 )      (3,513,548 )      (13,216,246 ) 

 

  

Net increase (decrease) in share activity

      (113,873,455 )    $ (424,598,437 )      (205,772,634 )    $ (774,139,384 ) 

 

  

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 71% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b) 

Class C shares activity for the period September 1, 2021 through June 30, 2022 (date of conversion).

 

31   Invesco Short Term Municipal Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

    The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

    Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

         

ACTUAL

  

HYPOTHETICAL

(5% annual return before

expenses)

     
    

Beginning

    Account Value    

(09/01/22)

  

Ending

    Account Value    

(02/28/23)1

  

Expenses

    Paid During    

Period2

  

Ending

    Account Value    

(02/28/23)

  

Expenses

    Paid During    

Period2

  

    Annualized    

Expense

Ratio

Class A

   $1,000.00   $1,009.20   $3.74   $1,021.08   $3.76   0.75%

Class Y

     1,000.00     1,010.40     2.49     1,022.32     2.51   0.50   

Class R6

     1,000.00     1,008.10     2.14     1,022.66     2.16   0.43   

 

1 

The actual ending account value is based on the actual total return of the Fund for the period September 1, 2022 through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2 

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

 

32   Invesco Short Term Municipal Fund

 

 

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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

∎ Fund reports and prospectuses

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∎ Tax forms

 

 

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

    A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

    Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

 

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SEC file number(s): 811-09913 and 333-36074   Invesco Distributors, Inc.    O-STM-SAR-1

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Semiannual Report to Shareholders    February 28, 2023

Invesco SMA Municipal Bond Fund

Nasdaq:

SMBMX

 

2   

Fund Performance

3   

Schedule of Investments

5   

Financial Statements

8   

Financial Highlights

9   

Notes to Financial Statements

13           

Fund Expenses

 

 

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data is provided by Invesco.

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

 

Fund Performance

 

Performance summary

 

   

 

The Fund’s performance history is not presented here because, as of the date of this semi-annual report, the Fund has not completed a full six months of operations. The Fund’s most recent performance information is accessible on the Fund’s website.

   

 

For more information about your Fund

 

Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.

  Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.

 

   

 

2   Invesco SMA Municipal Bond Fund

Schedule of Investments

February 28, 2023

(Unaudited)

 

                   Principal         
     Interest      Maturity      Amount         
      Rate      Date      (000)      Value  

Municipal Obligations–55.29%

            

California–12.63%

            

California (State of) Community Choice Financing Authority (Green Bonds); Series 2023, RB(a)

      5.00%        08/01/2029      $ 250      $ 263,018  

University of California; Series 2023 BP-2, Ref. VRD RB(b)

      1.00%        05/15/2048        1,000        1,000,000  
                                  1,263,018  

Georgia–2.60%

            

Main Street Natural Gas, Inc.; Series 2023 A, RB(a)

      5.00%        06/01/2030        250        260,168  

Illinois–10.00%

            

Illinois (State of) Finance Authority (Northshore Edward); Series 2022 F, Ref. VRD RB(b)

      1.80%        08/15/2057        1,000        1,000,000  

Iowa–3.01%

            

Iowa (State of) Finance Authority (Iowa Fertilizer Co.); Series 2022, Ref. RB(a)

      5.00%        12/01/2042        300        301,126  

New Jersey–2.71%

            

New Jersey (State of) Transportation Trust Fund Authority; Series 2014, RB

      5.00%        06/15/2032        250        270,963  

New York–12.52%

            

Build NYC Resource Corp. (Pratt Paper, Inc.); Series 2014, Ref. RB(c)(d)

      4.50%        01/01/2025        250        251,633  

New York (City of), NY Transitional Finance Authority; Series 2016 E4, VRD RB(b)

      1.85%        02/01/2045        1,000        1,000,000  
                                  1,251,633  

Ohio–2.28%

            

Buckeye Tobacco Settlement Financing Authority; Series 2020 B-2, Ref. RB

      5.00%        06/01/2055        250        227,360  

Pennsylvania–5.07%

            

Allentown (City of), PA Neighborhood Improvement Zone Development Authority (City Center); Series 2018, RB(c)

      5.00%        05/01/2028        250        254,763  

Pennsylvania (Commonwealth of) Economic Development Financing Authority (PA Bridges Finco L.P.); Series 2015, RB(d)

      5.00%        12/31/2034        250        252,499  
                                  507,262  

Puerto Rico–4.47%

            

Puerto Rico (Commonwealth of); Series 2021 A-1, GO Bonds

      4.00%        07/01/2033        250        224,016  

Puerto Rico Sales Tax Financing Corp.; Series 2018 A-1, RB

      5.00%        07/01/2058        240        222,672  
                                  446,688  

TOTAL INVESTMENTS IN SECURITIES–55.29% (Cost $5,537,008)

                                 5,528,218  

OTHER ASSETS LESS LIABILITIES–44.71%

                                 4,469,613  

NET ASSETS–100.00%

                               $ 9,997,831  

 

Investment Abbreviations:

 

GO   

- General Obligation

RB   

- Revenue Bonds

Ref.   

- Refunding

VRD   

- Variable Rate Demand

Notes to Schedule of Investments:

 

(a)

Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

(b)

Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically by the issuer or agent based on current market conditions. Rate shown is the rate in effect on February 28, 2023.

(c)

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 February 28, 2023 was $506,396, which represented 5.07% of the Fund’s Net Assets.

(d)

Security subject to the alternative minimum tax.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

3   Invesco SMA Municipal Bond Fund

Portfolio Composition

By credit sector, based on total investments

As of February 28, 2023

 

Other

      54.27%  

Revenue Bonds

      41.68     

General Obligation Bonds

      4.05     

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

4   Invesco SMA Municipal Bond Fund

Statement of Assets and Liabilities

February 28, 2023

(Unaudited)

 

Assets:

   

Investments in unaffiliated securities, at value

   

(Cost $5,537,008)

    $ 5,528,218  

Cash

      7,751,015  

Receivable for:

   

Interest

      28,340  

Other assets

      4,387  

Total assets

      13,311,960  

Liabilities:

   

Payable for:

   

Investments purchased

      3,309,741  

Accrued fees to affiliates

      63  

Accrued trustees’ and officers’ fees
and benefits

      339  

Accrued other operating expenses

      3,986  

Total liabilities

      3,314,129  

Net assets applicable to shares outstanding

    $ 9,997,831  

Net assets consist of:

   

Shares of beneficial interest

    $ 10,000,000  

Distributable earnings

      (2,169 ) 
     $ 9,997,831  

Shares outstanding, no par value, with an unlimited number of shares authorized:

   

Shares outstanding

      1,000,000  

Net asset value and offering price per share

    $ 10.00  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

5   Invesco SMA Municipal Bond Fund

Statement of Operations

For the period February 21, 2023 (commencement date) through February 28, 2023

(Unaudited)

 

Investment income:

   

Interest

    $ 6,621  

Expenses:

   

Administrative services fees

      31  

Custodian fees

      44  

Transfer agent fees

      33  

Trustees’ and officers’ fees and benefits

      339  

Reports to shareholders

      347  

Professional services fees

      3,971  

Other

      327  

Total expenses

      5,092  

Less: Expenses reimbursed

      (5,092 ) 

Net expenses

      –  

Net investment income

      6,621  

Realized and unrealized gain (loss) from:

   

Change in net unrealized appreciation (depreciation) of unaffiliated investment securities

      (8,790 ) 

Net realized and unrealized gain (loss)

      (8,790 ) 

Net increase (decrease) in net assets resulting from operations

    $ (2,169 ) 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

6   Invesco SMA Municipal Bond Fund

Statement of Changes in Net Assets

For the period February 21, 2023 (commencement date) through February 28, 2023

(Unaudited)

 

     February 21, 2023
(commencement date) through
February 28, 2023		  

Operations:

  

Net investment income

     $            6,621  

Change in net unrealized appreciation (depreciation)

     (8,790 ) 

Net increase (decrease) in net assets resulting from operations

     (2,169 ) 

Net increase in net assets resulting from share transactions

     10,000,000  

Net increase in net assets

     9,997,831  

Net assets:

  

Beginning of period

     –  

End of period

     $     9,997,831  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

7   Invesco SMA Municipal Bond Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

      Period Ended
February 28,
2023(a)		  

Net asset value, beginning of period

      $10.00  

Net investment income(b)

      0.01  

Net gains (losses) on securities (both realized and unrealized)

      (0.01 ) 

Total from investment operations

      –  

Net asset value, end of period

      $10.00  

Total return(c)

      0.00 % 

Net assets, end of period (000’s omitted)

      $9,998  

Portfolio turnover rate(d)

      115 % 

Ratios/supplemental data based on average net assets:

   

Ratio of expenses:

         

With fee waivers and/or expense reimbursements

      0.00 %(e) 

Without fee waivers and/or expense reimbursements

      2.32 %(e) 

Ratio of net investment income to average net assets

      3.02 %(e) 

 

(a) 

Commencement date of February 21, 2023.

(b)

Calculated using average shares outstanding.

(c)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable.

(d) 

Portfolio turnover is not annualized for periods less than one year, if applicable.

(e)

Annualized.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

8   Invesco SMA Municipal Bond Fund

Notes to Financial Statements

February 28, 2023

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco SMA Municipal Bond Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is to provide high current income exempt from regular federal income taxes with taxable capital appreciation as a secondary objective.

The Fund commenced operations on February 21, 2023. Shares of the Fund may be purchased and held by or on behalf of wrap fee, separately managed and other discretionary accounts (SMAs) for which Invesco Advisers, Inc (Invesco or the Adviser) or its affiliates have an agreement with a program sponsor or directly with the client, to provide management or advisory services to the account.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations - Securities, including restricted securities, are valued according to the following policy.

Securities generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. 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 are not readily available are fair valued by Invesco Advisers, Inc. (the “Adviser” or “Invesco”) in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). If a fair value price provided by a pricing service is not representative of market value in the Adviser’s judgment (“unreliable”), the Adviser will fair value the security using the Valuation Procedures. 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.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. 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.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C.

Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions - Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are

 

9   Invesco SMA Municipal Bond Fund

 

generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders.

Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Accounting Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

G.

Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

H.

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.

I.

Other Risks - The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located. Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and the 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.

Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.

The Fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.

Medium- and Lower-Grade Municipal Securities Risk. Medium- and lower-grade municipal securities generally involve more volatility and greater risks, including credit, market, liquidity and management risks, than higher-grade securities. Furthermore, many issuers of medium- and lower-grade securities choose not to have a rating assigned to their obligations. As such, the Fund’s portfolio may consist of a higher portion of unrated securities than an investment company investing solely in higher-grade securities. Unrated securities may not be as attractive to as many buyers as are rated securities, which may have the effect of limiting the Fund’s ability to sell such securities at their fair value.

J.

COVID-19 Risk - The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund does not pay an advisory fee. However, Invesco will be compensated directly or indirectly by clients or account program sponsors for managed account advisory services, including with respect to assets that may be invested in the Fund.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

Invesco has contractually agreed to reimburse expenses necessary to limit total fund operating expenses after expense reimbursement (excluding certain items discussed in the statement of additional information) of shares of the Fund to 0.00% of the Fund’s average daily net assets (the “expense limit”). This expense reimbursement agreement will continue in effect for so long as Invesco serves as adviser to the Fund. The expense reimbursement agreement cannot be terminated or amended to increase the expense limit without approval of the Board of Trustees.

For the period February 21, 2023 (commencement date) through February 28, 2023, the Adviser reimbursed expenses of $5,092.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the period February 21, 2023 (commencement date) through February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

 

10   Invesco SMA Municipal Bond Fund

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the period February 21, 2023 (commencement date) through February 28, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

Certain officers and trustees of the Trust are officers and directors of Invesco.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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 Adviser’s 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 February 28, 2023, 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 4–Security Transactions with Affiliated Funds

The Fund is permitted to purchase securities from or sell securities to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund that is or could be considered an “affiliated person” by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s “current market price”, as provided for in these procedures and Rule 17a-7. Pursuant to these procedures, for the period February 21, 2023 (commencement date) through February 28, 2023, the Fund engaged in securities purchases of $3,004,635.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.

NOTE 6–Cash Balances and Borrowings

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the period February 21, 2023 (commencement date) through February 28, 2023, was $15,037,140 and $9,500,000, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year-end reporting period.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis         

Aggregate unrealized appreciation of investments

    $ 334  

Aggregate unrealized (depreciation) of investments

      (9,124 ) 

Net unrealized appreciation (depreciation) of investments

    $ (8,790 ) 

Cost of investments for tax purposes is $5,537,008.

 

11   Invesco SMA Municipal Bond Fund

NOTE 9–Share Information

 

      Summary of Share Activity  
         February 28, 2023(a)(b)      
      Shares     Amount  

Sold

      1,000,001     $ 10,000,010  

Reacquired

      (1 )      (10 ) 

Net increase in share activity

      1,000,000     $ 10,000,000  

 

  

 

(a)

Commencement date of February 21, 2023.

(b)

100% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.

 

12   Invesco SMA Municipal Bond Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period February 21, 2023 (commencement date) through February 28, 2023.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

    The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

    Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

    

ACTUAL

  

HYPOTHETICAL

(5% annual return before

expenses)

     
Beginning
Account Value
(09/01/21)		  

Ending

Account Value
(02/28/23)1

 

Expenses

Paid During

Period2

 

Ending

Account Value
(02/28/23)

  

Expenses

Paid During

Period3

 

Annualized  

Expense  

Ratio  

$1,000.00   $957.80   $0.00   $1,024.79   $0.00   0.00%

 

1

The actual ending account value is based on the actual total return of the Funds for the period February 21, 2023 (commencement date) through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2

Actual expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 8 (as of close of business February 21, 2023 (commencement date) through February 28, 2023)/365. Because the Fund has not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.

3

Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in the Fund and other funds because such data is based on a full six month period.

 

13   Invesco SMA Municipal Bond Fund

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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

 

∎  

Fund reports and prospectuses

∎  

Quarterly statements

∎  

Daily confirmations

∎  

Tax forms

 

 

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

 

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SEC file number(s): 811-09913 and 333-36074                Invesco Distributors, Inc.                                         SMAMB-SAR-1

ITEM 2.

CODE OF ETHICS.

Not applicable for a semi-annual report.

 

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

 

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

 

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

 

ITEM 6.

SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

 

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

 

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 11.

CONTROLS AND PROCEDURES.

 

  (a)

As of April 19, 2023, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of April 19, 2023, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.

 

  (b)

There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

ITEM 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 13.

EXHIBITS.

 

13(a) (1)    Not applicable.
13(a) (2)    Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002.
13(a) (3)    Not applicable.
13(a) (4)    Not applicable.
13(b)    Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:    AIM Counselor Series Trust (Invesco Counselor Series Trust)

 

By:  

/s/ Sheri Morris

  Sheri Morris
  Principal Executive Officer
Date:   May 3, 2023

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:  

/s/ Sheri Morris

  Sheri Morris
  Principal Executive Officer
Date:   May 3, 2023

 

By:  

/s/ Adrien Deberghes

  Adrien Deberghes
  Principal Financial Officer
Date:   May 3, 2023