N-CSRS 1 d543786dncsrs.htm N-CSRS - AIMF N-CSRS - AIMF

OMB APPROVAL

OMB Number:   3235-0570
Expires:   January 31, 2014
Estimated average burden
hours per response:   20.6

 

 

 

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 811-06463

 

 

AIM International Mutual Funds

(Invesco International Mutual Funds)

(Exact name of registrant as specified in charter)

 

 

11 Greenway Plaza,

Suite 1000 Houston,

Texas 77046

(Address of principal executive offices) (Zip code)

 

 

Philip A. Taylor

11 Greenway Plaza,

Suite 1000 Houston,

Texas 77046

(Name and address of agent for service)

 

 

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

Date of fiscal year end: 10/31

Date of reporting period: 4/30/13

 

 

 

Item 1. Report to Stockholders.

LOGO

 

 

Semiannual Report to Shareholders

 

    April 30, 2013

Invesco Asia Pacific Growth Fund

Nasdaq:

A: ASIAX ¡ B: ASIBX ¡ C: ASICX ¡ Y: ASIYX

 

 

LOGO

 

 

 

2

   

 

Fund Performance

 

3

   

 

Letters to Shareholders

 

4

   

 

Schedule of Investments

 

6

   

 

Financial Statements

 

8

   

 

Notes to Financial Statements

 

14

   

 

Financial Highlights

 

15

   

 

Fund Expenses

 

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

Unless otherwise noted, all data provided by Invesco.

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

 

 

NOT FDIC INSURED  |   MAY LOSE VALUE  |  NO BANK GUARANTEE

 

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

Cumulative total returns, 10/31/12 to 4/30/13, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       12.36 %
Class B Shares       11.96  
Class C Shares       11.95  
Class Y Shares       12.53  
MSCI EAFE Index ND‚ (Broad Market Index)       16.90  
MSCI All Country Asia Pacific ex-Japan Index ND§ (Style-Specific Index)       10.30  
Lipper Pacific Region ex-Japan Funds Index§ (Peer Group Index)       9.33  

Source(s): ‚Invesco, MSCI via FactSet Research Systems Inc.; §Lipper Inc.

The MSCI EAFE® Index ND is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return which withholds applicable taxes for non-resident investors.

    The MSCI All Country Asia Pacific ex-Japan Index ND is an unmanaged index considered representative of Pacific region stock markets, excluding Japan. The index is computed using the net return which withholds applicable taxes for non-resident investors.

    The Lipper Pacific Region ex-Japan Funds Index is an unmanaged index considered representative of Pacific region ex-Japan 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.

 

Average Annual Total Returns
As of 4/30/13, including maximum applicable sales charges    

 

 

Class A Shares

          
Inception (11/3/97)       10.15 %
10 Years       18.01  
  5 Years       8.08  

  1 Year

       10.13  
Class B Shares          
Inception (11/3/97)       10.17 %

10 Years

       18.00  
  5 Years       8.19  
  1 Year       10.66  

Class C Shares

          
Inception (11/3/97)       9.74 %
10 Years       17.81  

  5 Years

       8.48  
  1 Year       14.68  

Class Y Shares

          
10 Years       18.81 %
  5 Years       9.55  
  1 Year       16.82  
Average Annual Total Returns
As of 3/31/13, the most recent calendar quarter end, including maximum applicable sales charges     

 

Class A Shares

          
Inception (11/3/97)       10.09 %
10 Years       18.20  
  5 Years       8.11  

  1 Year

       11.25  
Class B Shares          
Inception (11/3/97)       10.10 %

10 Years

       18.20  
  5 Years       8.25  
  1 Year       11.85  

Class C Shares

          
Inception (11/3/97)       9.68 %
10 Years       18.01  

  5 Years

       8.53  
  1 Year       15.88  

Class Y Shares

          
10 Years       19.01 %
  5 Years       9.59  
  1 Year       18.00  
 

 

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit 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.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.55%, 2.30%, 2.30% and 1.30%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

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

 

 

2                             Invesco Asia Pacific Growth Fund

 

Letters to Shareholders

 

LOGO

   Bruce Crockett

    

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

    Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

    You can be sure your Board remains committed to doing its part in helping you along the

  

way. In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

    Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

    On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

     Philip Taylor

    

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

    Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

    At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

n  Manage investments - Our dedicated investment professionals search the world for the

      best opportunities, and each investment team follows a clear, disciplined process to build

      portfolios and mitigate risk.

  
  n  

Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your financial adviser can build an investment portfolio designed for your individual needs and goals.

  n  

Connect with you - We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisers.

    If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

    All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

3                             Invesco Asia Pacific Growth Fund

Schedule of Investments

April 30, 2013

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–89.91%

  

Australia–9.67%   

BHP Billiton Ltd.

     257,618       $ 8,684,419   

Brambles Ltd.

     2,099,833         18,982,541   

Coca-Cola Amatil Ltd.

     553,544         8,688,226   

Computershare Ltd.

     1,344,713         13,843,055   

CSL Ltd.

     232,590         15,181,296   

WorleyParsons Ltd.

     475,379         11,221,635   
               76,601,172   
China–22.52%   

Baidu, Inc.–ADR(a)

     160,393         13,769,739   

Belle International Holdings Ltd.

     5,384,000         8,783,578   

China Mobile Ltd.

     1,255,500         13,743,988   

CNOOC Ltd.–ADR

     87,897         16,466,624   

Franshion Properties China Ltd.

     25,236,000         8,617,853   

Golden Eagle Retail Group Ltd.

     4,026,000         7,125,516   

Industrial & Commercial Bank of China Ltd.–Class H

     40,586,000         28,603,223   

Lee & Man Paper Manufacturing Ltd.

     23,658,000         17,623,733   

Minth Group Ltd.

     10,562,000         18,891,581   

NetEase, Inc.–ADR

     227,658         12,837,635   

Stella International Holdings Ltd.

     7,140,000         21,096,155   

Vinda International Holdings Ltd.

     2,613,000         3,419,822   

Want Want China Holdings Ltd.

     4,678,000         7,414,776   
               178,394,223   
Hong Kong–7.08%   

Cheung Kong (Holdings) Ltd.

     1,076,000         16,195,255   

First Pacific Co. Ltd.

     4,760,000         6,627,255   

Galaxy Entertainment Group Ltd.(a)

     1,583,000         7,100,235   

Hongkong Land Holdings Ltd.

     856,000         6,221,769   

Hutchison Whampoa Ltd.

     1,833,000         19,912,359   
               56,056,873   
Indonesia–12.62%   

PT Bank Central Asia Tbk

     10,073,500         11,124,936   

PT Bank Mandiri Persero Tbk

     12,249,500         13,228,225   

PT Indocement Tunggal Prakarsa Tbk

     2,266,500         6,147,072   

PT Perusahaan Gas Negara Persero Tbk

     38,182,000         24,515,872   

PT Summarecon Agung Tbk

     71,202,000         19,018,410   

PT Telekomunikasi Indonesia Persero Tbk

     21,598,000         25,960,201   
               99,994,716   
Malaysia–5.72%   

Kossan Rubber Industries Berhad(b)

     16,371,500         21,202,284   

Parkson Holdings Berhad

     3,720,277         5,160,428   

Public Bank Berhad

     3,503,400         18,908,664   
               45,271,376   
     Shares      Value  
Philippines–10.83%   

Ayala Corp.

     585,780       $ 9,134,477   

Energy Development Corp.(c)

     2,918,750         461,303   

Energy Development Corp.

     58,032,300         9,171,893   

First Gen Corp.(a)

     31,919,789         17,474,903   

GMA Holdings, Inc.–PDR(a)(c)

     1,468,000         355,684   

GMA Holdings, Inc.–PDR(a)

     46,635,500         11,299,400   

Manila Water Co.

     6,073,800         5,890,952   

Philippine Long Distance Telephone Co.

     282,965         20,925,258   

SM Investments Corp.

     397,745         11,056,519   
               85,770,389   
Singapore–3.52%   

Keppel Corp. Ltd.

     1,884,200         16,418,973   

Keppel REIT

     376,840         461,986   

United Overseas Bank Ltd.

     634,000         11,001,125   
               27,882,084   
South Korea–6.30%   

Hyundai Department Store Co., Ltd.

     98,091         14,251,199   

Hyundai Mobis

     54,467         12,364,476   

NHN Corp.

     64,535         17,345,598   

Samsung Electronics Co., Ltd.

     4,322         5,965,277   
               49,926,550   
Taiwan–2.41%   

Taiwan Semiconductor Manufacturing Co. Ltd.

     5,139,464         19,051,161   
Thailand–8.01%   

Kasikornbank PCL

     3,722,100         27,467,496   

Major Cineplex Group PCL

     11,608,600         8,818,274   

Siam Commercial Bank PCL

     2,975,600         18,908,835   

Thai Stanley Electric PCL

     960,700         8,238,323   
               63,432,928   
United States–1.23%   

Avago Technologies Ltd.

     304,282         9,724,853   

Total Common Stocks & Other Equity Interests
(Cost $463,582,747)

   

      712,106,325   

Money Market Funds–9.29%

  

Liquid Assets Portfolio–Institutional Class(d)

     36,784,783         36,784,783   

Premier Portfolio–Institutional Class(d)

     36,784,782         36,784,782   

Total Money Market Funds
(Cost $73,569,565)

   

      73,569,565   

TOTAL INVESTMENTS–99.20%
(Cost $537,152,312)

   

      785,675,890   

OTHER ASSETS LESS LIABILITIES–0.80%

  

      6,305,704   

NET ASSETS–100.00%

  

    $ 791,981,594   
 

 

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

 

4                         Invesco Asia Pacific Growth Fund

Investment Abbreviations:

 

ADR  

– American Depositary Receipts

PDR  

– Phillipine Deposit Receipts

REIT  

– Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a)  Non-income producing security.
(b)  Affiliated company during the period. The Investment Company Act of 1940 defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The value of this security as of April 30, 2013 represented 2.68% of the Fund’s Net Assets. See Note 4.
(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 April 30, 2013 was $816,987, which represented 0.10% of the Fund’s Net Assets.
(d)  The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2013

 

Financials

     23.8 % 

Consumer Discretionary

     15.6   

Information Technology

     11.7   

Industrials

     8.4   

Telecommunication Services

     7.6   

Utilities

     7.3   

Health Care

     4.6   

Materials

     4.1   

Energy

     3.5   

Consumer Staples

     3.3   

Money Market Funds Plus Other Assets Less Liabilities

     10.1   

 

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

 

5                         Invesco Asia Pacific Growth Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

Assets:

  

Investments, at value (Cost $450,874,008)

   $ 690,904,041   

Investments in affiliates, at value (Cost $86,278,304)

     94,771,849   

Total investments, at value (Cost $537,152,312)

     785,675,890   

Foreign currencies, at value (Cost $9,319,587)

     9,431,456   

Receivable for:

  

Fund shares sold

     2,495,627   

Dividends

     1,243,583   

Investment for trustee deferred compensation and retirement plans

     51,115   

Other assets

     52,388   

Total assets

     798,950,059   

Liabilities:

  

Payable for:

  

Fund shares reacquired

     473,615   

Accrued foreign taxes

     5,760,667   

Accrued fees to affiliates

     468,884   

Accrued trustees’ and officers’ fees and benefits

     1,813   

Accrued other operating expenses

     148,794   

Trustee deferred compensation and retirement plans

     114,692   

Total liabilities

     6,968,465   

Net assets applicable to shares outstanding

   $ 791,981,594   

Net assets consist of:

  

Shares of beneficial interest

   $ 534,139,947   

Undistributed net investment income (loss)

     (826,303 ) 

Undistributed net realized gain

     10,029,535   

Unrealized appreciation

     248,638,415   
    $ 791,981,594   

Net Assets:

  

Class A

   $ 561,455,950   

Class B

   $ 26,842,624   

Class C

   $ 98,421,061   

Class Y

   $ 105,261,959   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     16,750,007   

Class B

     852,952   

Class C

     3,145,003   

Class Y

     3,133,491   

Class A:

  

Net asset value per share

   $ 33.52   

Maximum offering price per share

  

(Net asset value of $33.52 ¸ 94.50%)

   $ 35.47   

Class B:

  

Net asset value and offering price per share

   $ 31.47   

Class C:

  

Net asset value and offering price per share

   $ 31.29   

Class Y:

  

Net asset value and offering price per share

   $ 33.59   
 

 

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

 

6                         Invesco Asia Pacific Growth Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $476,312)

    $ 4,881,054   

Dividends from affiliates

      305,090   

Total investment income

      5,186,144   

Expenses:

   

Advisory fees

      3,211,983   

Administrative services fees

      88,497   

Custodian fees

      244,957   

Distribution fees:

   

Class A

      633,393   

Class B

      137,313   

Class C

      445,975   

Transfer agent fees

      635,534   

Trustees’ and officers’ fees and benefits

      18,361   

Other

      145,109   

Total expenses

      5,561,122   

Less: Fees waived and expense offset arrangement(s)

      (57,985 ) 

Net expenses

      5,503,137   

Net investment income (loss)

      (316,993 ) 

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Investment securities

      10,653,937   

Foreign currencies

      (32,294 ) 
       10,621,643   

Change in net unrealized appreciation (depreciation) of:

   

Investment securities (net of foreign taxes on holdings of $(1,600,525))

      70,426,337   

Foreign currencies

      (95,869 ) 
       70,330,468   

Net realized and unrealized gain

      80,952,111   

Net increase in net assets resulting from operations

    $ 80,635,118   

 

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

 

7                         Invesco Asia Pacific Growth Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the year ended October 31, 2012

(Unaudited)

 

     April 30,
2013		      October 31,
2012		  

Operations:

  

   

Net investment income (loss)

   $ (316,993 )     $ 4,263,033   

Net realized gain

     10,621,643         12,622,481   

Change in net unrealized appreciation

     70,330,468         71,934,724   

Net increase in net assets resulting from operations

     80,635,118         88,820,238   

Distributions to shareholders from net investment income:

     

Class A

     (3,012,794 )       (3,532,360 ) 

Class B

     —         (26,763 ) 

Class C

     —         (67,611 ) 

Class Y

     (540,337 )       (406,659 ) 

Total distributions from net investment income

     (3,553,131 )       (4,033,393 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (9,721,485 )       (27,939,694 ) 

Class B

     (603,903 )       (2,323,311 ) 

Class C

     (1,852,367 )       (5,869,287 ) 

Class Y

     (1,304,896 )       (2,471,959 ) 

Total distributions from net realized gains

     (13,482,651 )       (38,604,251 ) 

Share transactions–net:

     

Class A

     57,574,427         37,767,909   

Class B

     (2,780,357 )       (5,357,121 ) 

Class C

     10,256,829         (2,874,407 ) 

Class Y

     39,454,281         19,111,110   

Net increase in net assets resulting from share transactions

     104,505,180         48,647,491   

Net increase in net assets

     168,104,516         94,830,085   

Net assets:

     

Beginning of period

     623,877,078         529,046,993   

End of period (includes undistributed net investment income (loss) of $(826,303) and $3,043,821, respectively)

   $ 791,981,594       $ 623,877,078   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Asia Pacific Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

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

The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

 

8                         Invesco Asia Pacific Growth Fund

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

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

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

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

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

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

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

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

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

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

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

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

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

C.

Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets,

 

9                         Invesco Asia Pacific Growth Fund

  the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Distributions — Distributions from income and net realized capital gain, if any, are generally 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, necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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. Redemption Fee — The Fund had a 2% redemption fee that was retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, was imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee was recorded as an increase in shareholder capital and was allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund eliminated the 2% redemption fee assessed on shares of the Fund redeemed or exchanged within 31 days of purchase.
J. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

K. Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate

First $250 million

     0 .935%   

Next $250 million

     0 .91%   

Next $500 million

     0 .885%   

Next $1.5 billion

     0 .86%   

 

10                         Invesco Asia Pacific Growth Fund

Next $2.5 billion

     0 .835%   

Next $2.5 billion

     0 .81%   

Next $2.5 billion

     0 .785%   

Over $10 billion

     0 .76%     

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

The Adviser has contractually agreed, through at least June 30, 2014, 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 B, Class C and Class Y shares to 2.25%, 3.00%, 3.00% and 2.00%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2014. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

Further, the Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees of $56,428.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, the 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 B, Class C and Class Y shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of each class of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $122,094 in front-end sales commissions from the sale of Class A shares and $83, $9,924 and $2,765 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information

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

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

 

11                         Invesco Asia Pacific Growth Fund

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

During the six months ended April 30, 2013, there were transfers from Level 1 to Level 2 of $102,191,577 and from Level 2 to Level 1 of $157,727,442, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ 67,916,753         $ 8,684,419         $ —         $ 76,601,172   

China

     100,525,774           77,868,449           —           178,394,223   

Hong Kong

     36,107,614           19,949,259           —           56,056,873   

Indonesia

     86,766,491           13,228,225           —           99,994,716   

Malaysia

     45,271,376           —           —           45,271,376   

Philippines

     76,635,912           9,134,477           —           85,770,389   

Singapore

     461,986           27,420,098           —           27,882,084   

South Korea

     49,926,550           —           —           49,926,550   

Taiwan

     19,051,161           —           —           19,051,161   

Thailand

     27,467,496           35,965,432           —           63,432,928   

United States

     83,294,418           —           —           83,294,418   

Total Investments

   $ 593,425,531         $ 192,250,359         $ —         $ 785,675,890   

NOTE 4—Investments in Other Affiliates

The 1940 Act defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. 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 following is a summary of the investments in other affiliates for the six months ended April 30, 2013.

 

    

Value

10/31/12

      Purchases
at Cost		      Proceeds
from Sales		      Change in
Unrealized
Appreciation		      Realized
Gain		     

Value

04/30/13

      Dividend
Income		  

Kossan Rubber Industries Berhad

   $ 15,647,413       $ 782,311       $ —       $ 4,772,560       $ —       $ 21,202,284       $ 263,623   

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2013, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,557.

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

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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—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 generally accepted accounting principles. 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 Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of

 

12                         Invesco Asia Pacific Growth Fund

December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of October 31, 2012.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $119,566,579 and $35,663,256, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 252,669,282   

Aggregate unrealized (depreciation) of investment securities

     (5,093,907 ) 

Net unrealized appreciation of investment securities

   $ 247,575,375   

Cost of investments for tax purposes is $538,100,515.

NOTE 10—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30,  2013(a)		      Year ended
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     3,653,559       $ 117,198,159         3,650,438       $ 104,623,607   

Class B

     47,603         1,418,161         57,168         1,528,521   

Class C

     604,820         18,031,758         410,766         10,941,363   

Class Y

     2,203,130         71,231,903         1,522,078         43,739,490   

Issued as reinvestment of dividends:

           

Class A

     371,808         11,455,420         1,123,514         28,885,539   

Class B

     19,368         562,054         90,171         2,185,470   

Class C

     59,702         1,722,404         228,199         5,506,442   

Class Y

     47,330         1,460,123         100,103         2,575,648   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     49,327         1,611,429         141,257         3,996,044   

Class B

     (52,510 )       (1,611,429 )       (150,093 )       (3,996,044 ) 

Reacquired:(b)

           

Class A

     (2,264,972 )       (72,690,581 )       (3,551,899 )       (99,737,281 ) 

Class B

     (104,918 )       (3,149,143 )       (190,731 )       (5,075,068 ) 

Class C

     (317,109 )       (9,497,333 )       (734,750 )       (19,322,212 ) 

Class Y

     (1,030,752 )       (33,237,745 )       (966,018 )       (27,204,028 ) 

Net increase in share activity

     3,286,386       $ 104,505,180         1,730,203       $ 48,647,491   

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 29% 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)  Net of redemption fees of $10,831 allocated among the classes based on relative net assets of each class for the year ended October 31, 2012.

 

13                         Invesco Asia Pacific Growth Fund

NOTE 11—Financial Highlights

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(b)		     Total
return(c)		     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(d)		  

Class A

  

Six months ended 04/30/13

   $ 30.65      $ 0.00      $ 3.72      $ 3.72      $ (0.20 )    $ (0.65 )    $ (0.85 )    $ 33.52        12.39 %    $ 561,456        1.46 %(e)      1.48 %(e)      0.01 %(e)      6 % 

Year ended 10/31/12

     28.42        0.26        4.34        4.60        (0.27 )      (2.10 )      (2.37 )      30.65        17.77        457,964        1.54        1.55        0.89        16   

Year ended 10/31/11

     30.30        0.28        (1.68 )      (1.40 )      (0.23 )      (0.25 )      (0.48 )      28.42        (4.67 )      385,828        1.53        1.55        0.93        27   

Year ended 10/31/10

     22.23        0.23        8.12        8.35        (0.28 )      —        (0.28 )      30.30        37.97        429,596        1.60        1.61        0.91        25   

Year ended 10/31/09

     13.52        0.24        8.82        9.06        (0.35 )      —        (0.35 )      22.23        68.89        298,982        1.78        1.79        1.43        28   

Year ended 10/31/08

     35.16        0.34        (18.36 )      (18.02 )      (0.21 )      (3.41 )      (3.62 )      13.52        (56.58 )      189,403        1.67        1.68        1.34        25   

Class B

  

Six months ended 04/30/13

     28.74        (0.11 )      3.49        3.38        —        (0.65 )      (0.65 )      31.47        11.96        26,843        2.21 (e)      2.23 (e)      (0.74 )(e)      6   

Year ended 10/31/12

     26.73        0.04        4.10        4.14        (0.03 )      (2.10 )      (2.13 )      28.74        16.94        27,112        2.29        2.30        0.14        16   

Year ended 10/31/11

     28.58        0.05        (1.59 )      (1.54 )      (0.06 )      (0.25 )      (0.31 )      26.73        (5.41 )      30,394        2.28        2.30        0.18        27   

Year ended 10/31/10

     21.02        0.04        7.69        7.73        (0.17 )      —        (0.17 )      28.58        36.98        40,299        2.35        2.36        0.16        25   

Year ended 10/31/09

     12.65        0.11        8.37        8.48        (0.11 )      —        (0.11 )      21.02        67.63        35,178        2.53        2.54        0.68        28   

Year ended 10/31/08

     33.19        0.14        (17.23 )      (17.09 )      (0.04 )      (3.41 )      (3.45 )      12.65        (56.91 )      26,678        2.42        2.43        0.59        25   

Class C

  

Six months ended 04/30/13

     28.58        (0.11 )      3.47        3.36        —        (0.65 )      (0.65 )      31.29        11.96        98,421        2.21 (e)      2.23 (e)      (0.74 )(e)      6   

Year ended 10/31/12

     26.60        0.04        4.07        4.11        (0.03 )      (2.10 )      (2.13 )      28.58        16.91        79,959        2.29        2.30        0.14        16   

Year ended 10/31/11

     28.44        0.05        (1.58 )      (1.53 )      (0.06 )      (0.25 )      (0.31 )      26.60        (5.41 )      76,962        2.28        2.30        0.18        27   

Year ended 10/31/10

     20.92        0.04        7.65        7.69        (0.17 )      —        (0.17 )      28.44        36.97        85,918        2.35        2.36        0.16        25   

Year ended 10/31/09

     12.59        0.11        8.33        8.44        (0.11 )      —        (0.11 )      20.92        67.64        55,810        2.53        2.54        0.68        28   

Year ended 10/31/08

     33.06        0.14        (17.16 )      (17.02 )      (0.04 )      (3.41 )      (3.45 )      12.59        (56.92 )      37,630        2.42        2.43        0.59        25   

Class Y

  

Six months ended 04/30/13

     30.75        0.04        3.72        3.76        (0.27 )      (0.65 )      (0.92 )      33.59        12.50        105,262        1.21 (e)      1.23 (e)      0.26 (e)      6   

Year ended 10/31/12

     28.52        0.33        4.35        4.68        (0.35 )      (2.10 )      (2.45 )      30.75        18.07        58,843        1.29        1.30        1.14        16   

Year ended 10/31/11

     30.39        0.35        (1.68 )      (1.33 )      (0.29 )      (0.25 )      (0.54 )      28.52        (4.43 )      35,862        1.28        1.30        1.18        27   

Year ended 10/31/10

     22.28        0.30        8.14        8.44        (0.33 )      —        (0.33 )      30.39        38.31        32,436        1.35        1.36        1.16        25   

Year ended 10/31/09

     13.52        0.29        8.82        9.11        (0.35 )      —        (0.35 )      22.28        69.31        11,785        1.53        1.54        1.68        28   

Year ended 10/31/08(f)

     17.47        0.02        (3.97 )      (3.95 )      —        —        —        13.52        (22.61 )      4,351        1.52 (g)      1.52 (g)      1.49 (g)      25   

 

(a)  Calculated using average shares outstanding.
(b)  Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share for fiscal years prior to October 31, 2012.
(c)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(e)  Ratios are annualized and based on average daily net assets (000’s) of $510,914, $27,690, $89,934 and $82,163 for Class A, Class B, Class C and Class Y shares, respectively.
(f)  Commencement date of October 3, 2008.
(g)  Annualized.

 

14                         Invesco Asia Pacific Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account Value
(11/01/12)		     ACTUAL    

HYPOTHETICAL

(5% annual return before
expenses)

     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,123.60      $ 7.69      $ 1,017.55      $ 7.30        1.46 % 
B     1,000.00        1,119.60        11.61        1,013.84        11.04        2.21   
C     1,000.00        1,119.50        11.61        1,013.84        11.04        2.21   
Y     1,000.00        1,125.30        6.38        1,018.79        6.06        1.21   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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.

 

15                         Invesco Asia Pacific Growth Fund

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s

Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 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/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611                        APG-SAR-1                 Invesco Distributors, Inc.  

 

 

LOGO

 

Semiannual Report to Shareholders

 

   

April 30, 2013

 

 

 

  Invesco European Growth Fund   
 

 

Nasdaq:

   
  A: AEDAX  n  B: AEDBX  n  C: AEDCX  n  R: AEDRX  n  Y: AEDYX  n  Investor: EGINX

 

 

LOGO

 

 

 

  2      Fund Performance
 

4

      Letters to Shareholders
 

5

      Schedule of Investments
 

7

      Financial Statements
 

9

      Notes to Financial Statements
 

16

      Financial Highlights
 

17

      Fund Expenses
  For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
  Unless otherwise noted, all data provided by Invesco.
 

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

 

 

 

  NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

Cumulative total returns, 10/31/12 to 4/30/13, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     12.00 % 

Class B Shares

     11.54   

Class C Shares

     11.60   

Class R Shares

     11.84   

Class Y Shares

     12.11   

Investor Class Shares

     11.99   

MSCI EAFE Index NDq (Broad Market Index)

     16.90   
MSCI Europe Growth Index ND¡ (Style-Specific Index)     14.57   

Lipper European Funds Index¡ (Peer Group Index)

     13.75   

Source: qInvesco, MSCI via FactSet Research Systems Inc.; ¡Lipper Inc.

  

The MSCI EAFE® Index ND is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return which withholds applicable taxes for non-resident investors.

The MSCI Europe Growth Index ND is an unmanaged index considered representative of European growth stocks. The index is computed using the net return which withholds applicable taxes for non-resident investors.

The Lipper European Funds Index is an unmanaged index considered representative of European 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.

 

 

 

2                         Invesco European Growth Fund

 

Average Annual Total Returns

As of 4/30/13, including maximum applicable sales charges

 

  

   

Class A Shares

         

Inception (11/3/97)

      11.15 % 

  10 Years

      12.14   

    5 Years

      0.51   

    1 Year

      10.19   

Class B Shares

         

Inception(11/3/97)

      11.16 % 

  10 Years

      12.12   

    5 Years

      0.54   

    1 Year

      10.74   

Class C Shares

         

Inception (11/3/97)

      10.77 % 

  10 Years

      11.97   

    5 Years

      0.90   

    1 Year

      14.76   

Class R Shares

         

Inception (6/3/02)

      10.22 % 

  10 Years

      12.52   

    5 Years

      1.40   

    1 Year

      16.32   

Class Y Shares

         

  10 Years

      12.90 % 

    5 Years

      1.89   

    1 Year

      16.90   

Investor Class Shares

         

  10 Years

      12.81 % 

    5 Years

      1.69   

    1 Year

      16.69   

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

Investor Class shares incepted on September 30, 2003. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit 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.

Average Annual Total Returns   
As of 3/31/13, the most recent calendar quarter end, including maximum applicable sales charges     

Class A Shares

         

Inception (11/3/97)

      11.04 % 

  10 Years

      12.75   

    5 Years

      0.50   

    1 Year

      6.72   

Class B Shares

         

Inception (11/3/97)

      11.05 % 

  10 Years

      12.73   

    5 Years

      0.55   

    1 Year

      7.09   

Class C Shares

         

Inception (11/3/97)

      10.66 % 

  10 Years

      12.57   

    5 Years

      0.90   

    1 Year

      11.08   

Class R Shares

         

Inception (6/3/02)

      10.06 % 

  10 Years

      13.13   

    5 Years

      1.40   

    1 Year

      12.66   

Class Y Shares

         

  10 Years

      13.52 % 

    5 Years

      1.88   

    1 Year

      13.17   

Investor Class Shares

         

  10 Years

      13.43 % 

    5 Years

      1.69   

    1 Year

      12.98   

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.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Investor Class shares was 1.48%, 2.23%, 2.23%, 1.73%, 1.23% and 1.42%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B

shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R shares, Class Y shares and Investor Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

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

 

 

3                         Invesco European Growth Fund

 

Letters to Shareholders

 

LOGO

  Bruce Crockett

   

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

You can be sure your Board remains committed to doing its part in helping you along the way. In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

    Philip Taylor

   

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

n     Manage investments - Our dedicated investment professionals search the world for  the best opportunities, and each investment team follows a clear, disciplined  process to build portfolios and mitigate risk.

n     Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your  financial adviser can build an investment portfolio designed for your individual needs and goals.

n     Connect with you - We’re committed to giving you the expert insights you need to make informed investing  decisions, and we are well-equipped to provide high-quality support for investors and advisers.

If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

4                         Invesco European Growth Fund

Schedule of Investments

April 30, 2013

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–84.19%

  

Austria–0.56%     

Andritz AG

     88,038       $ 5,746,752   
Belgium–2.66%     

Anheuser–Busch InBev N.V.

     192,652         18,410,033   

S.A. D’Ieteren N.V.

     193,095         8,900,714   
               27,310,747   
Denmark–0.87%     

Novo Nordisk AS–Class B

     50,768         8,905,408   
France–4.05%     

Metropole Television S.A.

     51,024         855,501   

Publicis Groupe S.A.

     216,492         15,060,037   

Sa des Ciments Vicat (Vicat)

     175,394         10,394,725   

Schneider Electric S.A.

     142,965         10,930,585   

Sodexo

     52,636         4,395,684   
               41,636,532   
Germany–9.65%     

Allianz S.E.

     51,919         7,661,679   

Brenntag AG

     40,878         6,969,112   

Deutsche Boerse AG

     207,615         12,960,532   

Deutsche Post AG

     306,673         7,285,099   

Fresenius Medical Care AG & Co. KGaA

     141,770         9,783,661   

GEA Group AG

     325,837         11,022,135   

MorphoSys AG(a)

     274,912         12,485,608   

SAP AG

     262,859         20,878,436   

Volkswagen AG–Preference Shares

     49,867         10,107,359   
               99,153,621   
Greece–0.12%     

Jumbo S.A.

     136,586         1,290,412   
Ireland–2.15%     

DCC PLC

     494,412         18,095,197   

Shire PLC

     129,071         4,020,884   
               22,116,081   
Israel–0.73%     

Israel Chemicals Ltd.

     630,319         7,517,933   
Italy–0.82%     

Ansaldo STS S.p.A.

     364,856         3,764,838   

Danieli & C. Officine Meccaniche S.p.A.–Savings Shares

     279,340         4,691,925   
               8,456,763   
Netherlands–1.65%     

Aalberts Industries N.V.

     208,593         4,681,513   

Unilever N.V.

     289,429         12,342,747   
               17,024,260   
     Shares      Value  
Norway–3.75%     

Prosafe S.E.

     2,304,988       $ 22,214,941   

TGS Nopec Geophysical Co. ASA

     454,854         16,319,197   
               38,534,138   
Russia–0.46%     

Gazprom OAO–ADR

     595,285         4,723,586   
Spain–0.66%     

Construcciones y Auxiliar de
Ferrocarriles S.A.

     17,177         6,801,109   
Sweden–6.31%     

Intrum Justitia AB

     810,101         16,689,323   

Investment AB Kinnevik–Class B

     447,986         11,704,145   

Investor AB–Class B

     385,306         11,376,497   

Swedbank AB–Class A

     386,207         9,525,706   

Telefonaktiebolaget LM Ericsson–Class B

     651,005         8,127,391   

Volvo AB–Class B

     538,379         7,468,662   
               64,891,724   
Switzerland–14.80%     

ABB Ltd.

     521,297         11,829,923   

Aryzta AG

     492,580         30,600,580   

Dufry AG(a)

     132,312         17,663,906   

Julius Baer Group Ltd.

     275,637         10,999,032   

Kuoni Reisen Holding AG

     29,723         9,062,670   

Nestle S.A.

     204,581         14,609,785   

Novartis AG

     148,122         11,013,501   

Roche Holding AG

     72,024         18,031,866   

Syngenta AG

     33,130         14,186,634   

Tecan Group AG

     80,618         7,499,954   

UBS AG(a)

     369,171         6,612,546   
               152,110,397   
Turkey–3.48%     

Haci Omer Sabanci Holding A.S.

     3,826,299         23,847,477   

Tupras-Turkiye Petrol Rafinerileri A.S.

     427,216         11,940,658   
               35,788,135   
United Arab Emirates–1.55%     

Dragon Oil PLC

     1,615,841         15,888,600   
United Kingdom–29.92%     

Amlin PLC

     2,260,983         14,924,292   

Balfour Beatty PLC

     2,383,493         7,993,736   

BG Group PLC

     710,158         11,987,476   

British American Tobacco PLC

     367,188         20,340,102   

British Sky Broadcasting Group PLC

     531,643         6,975,779   

Bunzl PLC

     614,939         12,217,599   

Catlin Group Ltd.

     1,107,202         9,049,355   

Centrica PLC

     1,627,987         9,395,673   

Chemring Group PLC

     1,447,825         6,112,909   
 

 

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

 

5                         Invesco European Growth Fund

     Shares      Value  
United Kingdom–(continued)      

Compass Group PLC

     1,911,736       $ 25,153,280   

Homeserve PLC

     2,134,883         6,944,389   

IG Group Holdings PLC

     2,126,224         17,785,989   

Imperial Tobacco Group PLC

     435,860         15,585,948   

Informa PLC

     2,591,598         19,243,268   

Kingfisher PLC

     1,736,011         8,443,429   

Lancashire Holdings Ltd.

     697,863         9,176,571   

Micro Focus International PLC

     1,169,441         12,162,202   

Next PLC

     125,413         8,501,149   

Reed Elsevier PLC

     1,741,689         20,345,658   

Royal Dutch Shell PLC–Class B

     360,177         12,582,544   

Smiths Group PLC

     491,182         9,537,526   

UBM PLC

     603,966         6,880,967   

Ultra Electronics Holdings PLC

     504,333         12,926,610   

William Hill PLC

     1,316,338         8,710,846   

WPP PLC

     880,594         14,554,612   
               307,531,909   

Total Common Stocks & Other Equity Interests
(Cost $606,335,445)

   

      865,428,107   
     Shares      Value  

Money Market Funds–14.71%

  

Liquid Assets Portfolio–
Institutional Class(b)

     75,634,327       $ 75,634,327   

Premier Portfolio–Institutional Class(b)

     75,634,328         75,634,328   

Total Money Market Funds
(Cost $151,268,655)

              151,268,655   

TOTAL INVESTMENTS–98.90%
(Cost $757,604,100)

              1,016,696,762   

OTHER ASSETS LESS LIABILITIES–1.10%

  

      11,284,715   

NET ASSETS–100.00%

  

    $ 1,027,981,477   
 

Investment Abbreviations:

 

ADR  

— American Depositary Receipt

Notes to Schedule of Investments:

 

(a) Non-income producing security.
(b) The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2013

 

Consumer Discretionary

     18.1 % 

Industrials

     16.7   

Financials

     14.2   

Consumer Staples

     10.9   

Energy

     9.3   

Health Care

     7.0   

Information Technology

     4.0   

Materials

     3.1   

Utilities

     0.9   

Money Market Funds Plus Other Assets Less Liabilities

     15.8   

 

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

 

6                         Invesco European Growth Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

Assets:

  

Investments, at value (Cost $606,335,445)

   $ 865,428,107   

Investments in affiliated money market funds, at value and cost

     151,268,655   

Total investments, at value (Cost $757,604,100)

     1,016,696,762   

Foreign currencies, at value (Cost $648,424)

     642,723   

Receivable for:

  

Investments sold

     2,303,615   

Fund shares sold

     5,411,640   

Dividends

     6,225,934   

Investment for trustee deferred compensation and retirement plans

     69,612   

Other assets

     57,190   

Total assets

     1,031,407,476   

Liabilities:

  

Payable for:

  

Investments purchased

     1,535,709   

Fund shares reacquired

     1,001,836   

Accrued fees to affiliates

     539,894   

Accrued trustees’ and officers’ fees and benefits

     3,038   

Accrued other operating expenses

     143,172   

Trustee deferred compensation and retirement plans

     202,350   

Total liabilities

     3,425,999   

Net assets applicable to shares outstanding

   $ 1,027,981,477   

Net assets consist of:

  

Shares of beneficial interest

   $ 742,122,441   

Undistributed net investment income

     7,791,151   

Undistributed net realized gain

     18,881,704   

Unrealized appreciation

     259,186,181   
    $ 1,027,981,477   

Net Assets:

  

Class A

   $ 411,104,289   

Class B

   $ 13,335,442   

Class C

   $ 42,271,948   

Class R

   $ 14,903,653   

Class Y

   $ 375,051,273   

Investor Class

   $ 171,314,872   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     11,594,019   

Class B

     399,817   

Class C

     1,266,130   

Class R

     421,430   

Class Y

     10,561,167   

Investor Class

     4,843,297   

Class A:

  

Net asset value per share

   $ 35.46   

Maximum offering price per share

  

(Net asset value of $35.46 ¸ 94.50%)

   $ 37.52   

Class B:

  

Net asset value and offering price per share

   $ 33.35   

Class C:

  

Net asset value and offering price per share

   $ 33.39   

Class R:

  

Net asset value and offering price per share

   $ 35.36   

Class Y:

  

Net asset value and offering price per share

   $ 35.51   

Investor Class:

  

Net asset value and offering price per share

   $ 35.37   
 

 

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

 

7                         Invesco European Growth Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $971,616)

   $ 15,168,514   

Dividends from affiliated money market funds

     60,613   

Total investment income

     15,229,127   

Expenses:

  

Advisory fees

     4,157,663   

Administrative services fees

     118,033   

Custodian fees

     142,837   

Distribution fees:

  

Class A

     484,542   

Class B

     71,063   

Class C

     199,057   

Class R

     34,871   

Investor Class

     188,578   

Transfer agent fees

     832,317   

Trustees’ and officers’ fees and benefits

     19,862   

Other

     133,841   

Total expenses

     6,382,664   

Less: Fees waived and expense offset arrangement(s)

     (81,943 ) 

Net expenses

     6,300,721   

Net investment income

     8,928,406   

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Investment securities

     19,204,253   

Foreign currencies

     (119,683 ) 
      19,084,570   

Change in net unrealized appreciation of:

  

Investment securities

     76,557,885   

Foreign currencies

     102,279   
      76,660,164   

Net realized and unrealized gain

     95,744,734   

Net increase in net assets resulting from operations

   $ 104,673,140   

 

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

 

8                         Invesco European Growth Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the year ended October 31, 2012

(Unaudited)

 

     April 30,
2013		      October 31,
2012		  

Operations:

  

   

Net investment income

   $ 8,928,406       $ 15,670,517   

Net realized gain

     19,084,570         43,057,529   

Change in net unrealized appreciation

     76,660,164         34,601,330   

Net increase in net assets resulting from operations

     104,673,140         93,329,376   

Distributions to shareholders from net investment income:

     

Class A

     (6,852,015 )       (11,239,209 ) 

Class B

     (183,960 )       (459,400 ) 

Class C

     (487,737 )       (883,408 ) 

Class R

     (209,318 )       (411,620 ) 

Class Y

     (5,374,817 )       (7,626,755 ) 

Investor Class

     (2,895,808 )       (4,892,756 ) 

Total distributions from net investment income

     (16,003,655 )       (25,513,148 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (6,911,368 )       —   

Class B

     (281,354 )       —   

Class C

     (745,958 )       —   

Class R

     (238,372 )       —   

Class Y

     (4,888,767 )       —   

Investor Class

     (2,846,909 )       —   

Total distributions from net realized gains

     (15,912,728 )       —   

Share transactions–net:

     

Class A

     3,249,954         (15,931,363 ) 

Class B

     (2,847,990 )       (7,474,488 ) 

Class C

     841,093         (6,007,219 ) 

Class R

     600,558         (2,777,150 ) 

Class Y

     89,865,172         26,320,670   

Investor Class

     3,175,228         (11,292,427 ) 

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

     94,884,015         (17,161,977 ) 

Net increase in net assets

     167,640,772         50,654,251   

Net assets:

     

Beginning of period

     860,340,705         809,686,454   

End of period (includes undistributed net investment income of $7,791,151 and $14,866,400, respectively)

   $ 1,027,981,477       $ 860,340,705   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco European Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

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

The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Investor Class. Investor Class shares of the Fund are offered only to certain grandfathered investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a

 

9                         Invesco European Growth Fund

CDSC. Class R, Class Y and Investor Class shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

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

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

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

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

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

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

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

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

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

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

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

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

 

10                         Invesco European Growth Fund

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

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Distributions – Distributions from income and net realized capital gain, if any, are generally 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, necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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. Redemption Fees — The Fund had a 2% redemption fee that was retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, was imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee was recorded as an increase in shareholder capital and was allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund eliminated the 2% redemption fee assessed on shares of the Fund redeemed or exchanged within 31 days of purchase.
J. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

K. Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

11                         Invesco European Growth Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate

First $250 million

     0 .935%   

Next $250 million

     0 .91%   

Next $500 million

     0 .885%   

Next $1.5 billion

     0 .86%   

Next $2.5 billion

     0 .835%   

Next $2.5 billion

     0 .81%   

Next $2.5 billion

     0 .785%   

Over $10 billion

     0 .76%     

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

The Adviser has contractually agreed, through at least June 30, 2014, 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 B, Class C, Class R, Class Y and Investor Class shares to 2.25%, 3.00%, 3.00%, 2.50%, 2.00% and 2.25%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2014. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

The Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees of $79,925.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, 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 B, Class C, Class R, Class Y and Investor Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C, Class R and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $39,005 in front-end sales commissions from the sale of Class A shares and $3, $7,013 and $428 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

 

12                         Invesco European Growth 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

During the six months ended April 30, 2013, there were transfers from Level 1 to Level 2 of $228,167,748 and from Level 2 to Level 1 of $104,343,726, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Austria

   $ —         $ 5,746,752         $ —         $ 5,746,752   

Belgium

     8,900,714           18,410,033           —           27,310,747   

Denmark

     8,905,408           —           —           8,905,408   

France

     29,850,446           11,786,086           —           41,636,532   

Germany

     91,868,522           7,285,099           —           99,153,621   

Greece

     —           1,290,412           —           1,290,412   

Ireland

     18,095,197           4,020,884           —           22,116,081   

Israel

     —           7,517,933           —           7,517,933   

Italy

     3,764,838           4,691,925           —           8,456,763   

Netherlands

     —           17,024,260           —           17,024,260   

Norway

     —           38,534,138           —           38,534,138   

Russia

     4,723,586           —           —           4,723,586   

Spain

     —           6,801,109           —           6,801,109   

Sweden

     36,520,859           28,370,865           —           64,891,724   

Switzerland

     31,172,409           120,937,988           —           152,110,397   

Turkey

     —           35,788,135           —           35,788,135   

United Arab Emirates

     15,888,600           —           —           15,888,600   

United Kingdom

     205,535,817           101,996,092           —           307,531,909   

United States

     151,268,655           —           —           151,268,655   
    $ 606,495,051         $ 410,201,711         $ —         $ 1,016,696,762   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2013, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,018.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

 

13                         Invesco European Growth Fund

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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 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 generally accepted accounting principles. 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 Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of October 31, 2012.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $83,005,570 and $70,878,356, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 281,142,751   

Aggregate unrealized (depreciation) of investment securities

     (22,894,754 ) 

Net unrealized appreciation of investment securities

   $ 258,247,997   

Cost of investments for tax purposes is $758,448,765.

 

14                         Invesco European Growth Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2013(a)		      Year ended
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     986,777       $ 33,623,139         1,667,254       $ 52,045,582   

Class B

     4,435         142,348         8,002         226,660   

Class C

     108,723         3,484,722         131,641         3,886,628   

Class R

     87,925         2,982,977         121,098         3,709,154   

Class Y

     2,877,008         98,209,341         2,643,233         80,565,699   

Investor Class

     241,908         8,296,746         288,800         8,904,572   

Issued as reinvestment of dividends:

           

Class A

     413,345         13,363,445         357,870         10,163,502   

Class B

     15,041         458,756         16,360         439,761   

Class C

     38,712         1,181,877         28,397         764,153   

Class R

     13,826         446,318         14,430         409,395   

Class Y

     311,924         10,090,743         260,086         7,386,427   

Investor Class

     172,999         5,579,228         165,958         4,701,609   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     38,571         1,321,717         112,206         3,417,979   

Class B

     (40,974 )       (1,321,717 )       (118,999 )       (3,417,979 ) 

Reacquired:(b)

           

Class A

     (1,333,842 )       (45,058,347 )       (2,694,743 )       (81,558,426 ) 

Class B

     (67,416 )       (2,127,377 )       (165,750 )       (4,722,930 ) 

Class C

     (120,055 )       (3,825,506 )       (373,019 )       (10,658,000 ) 

Class R

     (83,725 )       (2,828,737 )       (229,222 )       (6,895,699 ) 

Class Y

     (553,001 )       (18,434,912 )       (2,116,547 )       (61,631,456 ) 

Investor Class

     (317,993 )       (10,700,746 )       (825,387 )       (24,898,608 ) 

Net increase (decrease) in share activity

     2,794,188       $ 94,884,015         (708,332 )     $ (17,161,977 ) 

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 47% 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)  Net of redemption fees of $618 allocated among the classes based on relative net assets of each class for the year ended October 31, 2012.

 

15                         Invesco European Growth Fund

NOTE 10—Financial Highlights

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(b)		     Total
return(c)		     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(d)		  

Class A

  

Six months ended 04/30/13

   $ 32.84      $ 0.32      $ 3.51      $ 3.83      $ (0.60 )    $ (0.61 )    $ (1.21 )    $ 35.46        12.00 %    $ 411,104        1.41 %(e)      1.43 %(e)      1.91 %(e)      9 % 

Year ended 10/31/12

     30.13        0.59        3.07 (f)      3.66        (0.95 )      —        (0.95 )      32.84        12.64 (f)      377,331        1.47        1.48        1.94        14   

Year ended 10/31/11

     30.81        0.58        (0.89 )(f)      (0.31 )      (0.37 )      —        (0.37 )      30.13        (1.02 )(f)      362,913        1.44        1.45        1.84        21   

Year ended 10/31/10

     26.66        0.29        4.23        4.52        (0.37 )      —        (0.37 )      30.81        17.12        433,347        1.50        1.51        1.07        25   

Year ended 10/31/09

     22.86        0.32        5.64        5.96        (0.78 )      (1.38 )      (2.16 )      26.66        29.54        443,525        1.64        1.65        1.48        21   

Year ended 10/31/08

     49.22        0.63        (23.02 )      (22.39 )      (0.58 )      (3.39 )      (3.97 )      22.86        (49.17 )      426,609        1.49        1.50        1.66        18   

Class B

  

Six months ended 04/30/13

     30.87        0.18        3.30        3.48        (0.39 )      (0.61 )      (1.00 )      33.35        11.58        13,335        2.16 (e)      2.18 (e)      1.16 (e)      9   

Year ended 10/31/12

     28.27        0.34        2.90 (f)      3.24        (0.64 )      —        (0.64 )      30.87        11.80 (f)      15,089        2.22        2.23        1.19        14   

Year ended 10/31/11

     28.92        0.32        (0.84 )(f)      (0.52 )      (0.13 )      —        (0.13 )      28.27        (1.78 )(f)      21,177        2.19        2.20        1.09        21   

Year ended 10/31/10

     25.06        0.08        3.97        4.05        (0.19 )      —        (0.19 )      28.92        16.24        31,767        2.25        2.26        0.32        25   

Year ended 10/31/09

     21.37        0.15        5.33        5.48        (0.41 )      (1.38 )      (1.79 )      25.06        28.60        39,459        2.39        2.40        0.73        21   

Year ended 10/31/08

     46.29        0.33        (21.59 )      (21.26 )      (0.27 )      (3.39 )      (3.66 )      21.37        (49.56 )      48,021        2.24        2.25        0.91        18   

Class C

  

Six months ended 04/30/13

     30.90        0.18        3.31        3.49        (0.39 )      (0.61 )      (1.00 )      33.39        11.60        42,272        2.16 (e)      2.18 (e)      1.16 (e)      9   

Year ended 10/31/12

     28.30        0.34        2.90 (f)      3.24        (0.64 )      —        (0.64 )      30.90        11.79 (f)      38,282        2.22        2.23        1.19        14   

Year ended 10/31/11

     28.95        0.32        (0.84 )(f)      (0.52 )      (0.13 )      —        (0.13 )      28.30        (1.78 )(f)      41,078        2.19        2.20        1.09        21   

Year ended 10/31/10

     25.08        0.08        3.98        4.06        (0.19 )      —        (0.19 )      28.95        16.27        56,637        2.25        2.26        0.32        25   

Year ended 10/31/09

     21.39        0.15        5.33        5.48        (0.41 )      (1.38 )      (1.79 )      25.08        28.57        59,971        2.39        2.40        0.73        21   

Year ended 10/31/08

     46.31        0.33        (21.59 )      (21.26 )      (0.27 )      (3.39 )      (3.66 )      21.39        (49.53 )      65,252        2.24        2.25        0.91        18   

Class R

  

Six months ended 04/30/13

     32.73        0.28        3.49        3.77        (0.53 )      (0.61 )      (1.14 )      35.36        11.84        14,904        1.66 (e)      1.68 (e)      1.66 (e)      9   

Year ended 10/31/12

     30.00        0.51        3.07 (f)      3.58        (0.85 )      —        (0.85 )      32.73        12.36 (f)      13,204        1.72        1.73        1.69        14   

Year ended 10/31/11

     30.68        0.50        (0.89 )(f)      (0.39 )      (0.29 )      —        (0.29 )      30.00        (1.28 )(f)      14,911        1.69        1.70        1.59        21   

Year ended 10/31/10

     26.56        0.22        4.21        4.43        (0.31 )      —        (0.31 )      30.68        16.82        17,578        1.75        1.76        0.82        25   

Year ended 10/31/09

     22.70        0.27        5.63        5.90        (0.66 )      (1.38 )      (2.04 )      26.56        29.24        16,933        1.89        1.90        1.23        21   

Year ended 10/31/08

     48.90        0.53        (22.86 )      (22.33 )      (0.48 )      (3.39 )      (3.87 )      22.70        (49.28 )      14,030        1.74        1.75        1.41        18   

Class Y

  

Six months ended 04/30/13

     32.92        0.36        3.51        3.87        (0.67 )      (0.61 )      (1.28 )      35.51        12.11        375,051        1.16 (e)      1.18 (e)      2.16 (e)      9   

Year ended 10/31/12

     30.22        0.67        3.08 (f)      3.75        (1.05 )      —        (1.05 )      32.92        12.96 (f)      260,860        1.22        1.23        2.19        14   

Year ended 10/31/11

     30.91        0.66        (0.91 )(f)      (0.25 )      (0.44 )      —        (0.44 )      30.22        (0.80 )(f)      215,716        1.19        1.20        2.09        21   

Year ended 10/31/10

     26.73        0.36        4.25        4.61        (0.43 )      —        (0.43 )      30.91        17.44        190,994        1.25        1.26        1.32        25   

Year ended 10/31/09

     22.87        0.42        5.61        6.03        (0.79 )      (1.38 )      (2.17 )      26.73        29.84        84,793        1.39        1.40        1.73        21   

Year ended 10/31/08(g)

     28.09        0.03        (5.25 )      (5.22 )      —        —        —        22.87        (18.58 )      5,177        1.34 (h)      1.35 (h)      1.81 (h)      18   

Investor Class

  

Six months ended 04/30/13

     32.78        0.32        3.49        3.81        (0.61 )      (0.61 )      (1.22 )      35.37        11.99 (i)      171,315        1.39 (e)(i)      1.41 (e)(i)      1.93 (e)(i)      9   

Year ended 10/31/12

     30.07        0.61        3.07 (f)      3.68        (0.97 )      —        (0.97 )      32.78        12.75 (f)      155,575        1.41        1.42        2.00        14   

Year ended 10/31/11

     30.76        0.60        (0.92 )(f)      (0.32 )      (0.37 )      —        (0.37 )      30.07        (1.03 )(f)      153,892        1.38        1.39        1.90        21   

Year ended 10/31/10

     26.61        0.30        4.22        4.52        (0.37 )      —        (0.37 )      30.76        17.16        175,069        1.47        1.48        1.10        25   

Year ended 10/31/09

     22.83        0.32        5.64        5.96        (0.80 )      (1.38 )      (2.18 )      26.61        29.58        178,106        1.64        1.65        1.48        21   

Year ended 10/31/08

     49.14        0.64        (22.98 )      (22.34 )      (0.58 )      (3.39 )      (3.97 )      22.83        (49.14 )      155,205        1.47        1.48        1.69        18   

 

(a) Calculated using average shares outstanding.
(b) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share, for fiscal years prior to October 31, 2012.
(c)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $390,846, $14,330, $40,141, $14,064, $304,927 and $161,876 for Class A, Class B, Class C, Class R, Class Y and Investor Class shares, respectively.
(f)  Includes litigation proceeds received during the period. Had the litigation proceeds not been received, Net gains (losses) on securities (both realized and unrealized) per share, for the year ended October 31, 2012, would have been $2.96, $2.79, $2.79, $2.95, $2.97 and $2.96 for Class A, Class B, Class C, Class R, Class Y and Investor Class shares, respectively and total return would have been lower. Net gains (losses) on securities (both realized and unrealized) per share, for the year ended October 31, 2011, would have been $(1.11), $(1.06), $(1.06), $(1.11), $(1.13) and $(1.14) for Class A, Class B, Class C, Class R, Class Y and Investor Class shares, respectively, and total returns would have been lower.
(g)  Commencement date of October 3, 2008.
(h)  Annualized.
(i)  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 the six months ended April 30, 2013.

 

16                         Invesco European Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account Value
(11/01/12)		     ACTUAL    

HYPOTHETICAL

(5% annual return before
expenses)

     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,120.00      $ 7.41      $ 1,017.80      $ 7.05        1.41 % 
B     1,000.00        1,115.40        11.33        1,014.08        10.79        2.16   
C     1,000.00        1,116.00        11.33        1,014.08        10.79        2.16   
R     1,000.00        1,118.40        8.72        1,016.56        8.30        1.66   
Y     1,000.00        1,121.10        6.10        1,019.04        5.81        1.16   
Investor     1,000.00        1,119.90        7.31        1,017.90        6.95        1.39   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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 European Growth Fund

 

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611                EGR-SAR-1         Invesco Distributors, Inc.

LOGO

Semiannual Report to Shareholders

 

    April 30, 2013

 

Invesco Global Growth Fund
Nasdaq:   
A: AGGAX  n B: AGGBX n C: AGGCX n Y: AGGYX n R5: GGAIX n R6: AGGFX
 

 

LOGO

 

    

 

    

 

2    Fund Performance
4    Letters to Shareholders
5    Schedule of Investments
7    Financial Statements
9    Notes to Financial Statements
16    Financial Highlights
17    Fund Expenses

 

 

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

Unless otherwise noted, all data provided by Invesco.

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

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

 

Fund Performance

 

 

 

Performance summary

 

Fund vs. Indexes  

Cumulative total returns, 10/31/12 to 4/30/13, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

   11.05% 

Class B Shares

   10.63    

Class C Shares

   10.68    

Class Y Shares

   11.21    

Class R5 Shares

   11.24    

Class R6 Shares

   11.29    

MSCI World Index NDq (Broad Market Index)

   14.67    

MSCI World Growth Index NDn (Style-Specific Index)

   13.72    

Lipper Global Large-Cap Growth Funds Indexn (Peer Group Index)

   13.03    
Source(s): qInvesco, MSCI via FactSet Research Systems Inc; nLipper Inc.

 

The MSCI World IndexSM ND 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 MSCI World Growth Index ND is an unmanaged index considered representative of growth stocks of developed countries. The index is computed using the net return which withholds applicable taxes for non-resident investors.

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

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

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

    

 

 

2                         Invesco Global Growth Fund

 

Average Annual Total Returns

As of 4/30/13, including maximum applicable sales charges

 

Class A Shares

         

Inception (9/15/94)

      6.12 % 

10 Years

      7.76   

  5 Years

      0.86   

  1 Year

      6.02   

Class B Shares

         

Inception (9/15/94)

      6.19 % 

10 Years

      7.78   

  5 Years

      0.87   

  1 Year

      6.37   

Class C Shares

         

Inception (8/4/97)

      3.07 % 

10 Years

      7.61   

  5 Years

      1.26   

  1 Year

      10.37   

Class Y Shares

         

10 Years

      8.50 % 

  5 Years

      2.25   

  1 Year

      12.45   

Class R5 Shares

         

10 Years

      8.71 % 

  5 Years

      2.51   

  1 Year

      12.59   

Class R6 Shares

         

10 Years

      8.40 % 

  5 Years

      2.06   

  1 Year

      12.49   

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    Class R5 shares incepted on September 28, 2007. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may

 

Average Annual Total Returns

As of 3/31/13, the most recent calendar quarter end, including maximum applicable sales charges

Class A Shares

         

Inception (9/15/94)

      6.04 % 

10 Years

      8.17   

  5 Years

      1.35   

  1 Year

      3.73   

Class B Shares

         

Inception (9/15/94)

      6.12 % 

10 Years

      8.20   

  5 Years

      1.37   

  1 Year

      3.96   

Class C Shares

         

Inception (8/4/97)

      2.98 % 

10 Years

      8.03   

  5 Years

      1.75   

  1 Year

      7.96   

Class Y Shares

         

10 Years

      8.91 % 

  5 Years

      2.74   

  1 Year

      10.01   

Class R5 Shares

         

10 Years

      9.13 % 

  5 Years

      3.02   

  1 Year

      10.22   

Class R6 Shares

         

10 Years

      8.81 % 

  5 Years

      2.55   

  1 Year

      9.98   

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.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y, Class R5 and Class R6 shares was 1.56%, 2.31%, 2.31%, 1.31%, 0.99%, and 0.98%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, 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.

 

 

  

3                         Invesco Global Growth Fund

 

Letters to Shareholders

 

LOGO  

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

You can be sure your Board remains committed to doing its part in helping you along the way.

In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO  

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

  n Manage investments - Our dedicated investment professionals search the world for the best opportunities, and each investment team follows a clear, disciplined process to build portfolios and mitigate risk.
  n Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your financial adviser can build an investment portfolio designed for your individual needs and goals.
  n Connect with you - We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisers.

If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

4                         Invesco Global Growth Fund

Schedule of Investments

April 30, 2013

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–96.97%

  

Australia–3.28%   

BHP Billiton Ltd.

     64,645       $ 2,179,212   

Brambles Ltd.

     476,611         4,308,575   

CSL Ltd.

     19,221         1,254,567   

WorleyParsons Ltd.

     118,465         2,796,444   
               10,538,798   
Belgium–1.48%   

Anheuser-Busch InBev N.V.

     49,875         4,766,109   
Brazil–2.51%   

Banco Bradesco S.A.–ADR

     326,942         5,423,968   

BM&FBovespa S.A.

     53,800         372,954   

Cielo S.A.

     85,632         2,258,497   
               8,055,419   
Canada–3.65%   

CGI Group Inc.–Class A(a)

     138,619         4,389,464   

Potash Corp. of Saskatchewan Inc.

     65,482         2,756,042   

Suncor Energy, Inc.

     146,919         4,580,828   
               11,726,334   
China–6.11%   

Baidu, Inc.–ADR(a)

     49,710         4,267,604   

Belle International Holdings Ltd.

     943,000         1,538,431   

China Mobile Ltd.

     216,500         2,370,031   

CNOOC Ltd.

     1,733,000         3,239,680   

Industrial & Commercial Bank of China Ltd.–Class H

     5,379,000         3,790,882   

NetEase, Inc.–ADR

     78,165         4,407,724   
               19,614,352   
Denmark–0.75%   

Novo Nordisk A.S.–Class B

     13,770         2,415,448   
France–2.47%   

Publicis Groupe S.A.

     36,492         2,538,527   

Schneider Electric S.A.

     51,188         3,913,649   

Sodexo

     17,665         1,475,221   
               7,927,397   
Germany–6.73%   

Adidas AG

     53,550         5,596,183   

Deutsche Boerse AG

     40,903         2,553,403   

Deutsche Post AG

     79,450         1,887,356   

Fresenius Medical Care AG & Co. KGaA

     33,702         2,325,802   

SAP AG

     80,371         6,383,730   

Volkswagen AG -Preference Shares

     14,200         2,878,145   
               21,624,619   
Hong Kong–1.67%   

Galaxy Entertainment Group Ltd.(a)

     701,000         3,144,197   
     Shares      Value  
Hong Kong–(continued)   

Hutchison Whampoa Ltd.

     205,000       $ 2,226,969   
               5,371,166   
Israel–2.68%   

Check Point Software Technologies Ltd.(a)

     61,465         2,865,498   

Teva Pharmaceutical Industries Ltd.–ADR

     150,084         5,746,716   
               8,612,214   
Japan–3.10%   

Fanuc Corp.

     21,000         3,172,346   

Keyence Corp.

     8,200         2,599,036   

Komatsu Ltd.

     63,800         1,743,622   

Toyota Motor Corp.

     42,100         2,440,225   
               9,955,229   
Mexico–1.50%   

America Movil S.A.B. de C.V.,
Series L–ADR

     73,393         1,569,142   

Grupo Televisa S.A.B.–ADR

     128,219         3,246,505   
               4,815,647   
Netherlands–1.38%   

Unilever N.V.

     104,160         4,441,920   
Russia–0.40%   

Gazprom OAO–ADR

     163,609         1,298,237   
Singapore–0.68%   

United Overseas Bank Ltd.

     126,000         2,186,343   
South Korea–2.68%   

Hyundai Mobis

     17,539         3,981,503   

NHN Corp.

     8,081         2,171,996   

Samsung Electronics Co., Ltd.

     1,777         2,452,637   
               8,606,136   
Spain–1.62%   

Amadeus IT Holding S.A.–Class A

     176,836         5,220,297   
Sweden–3.75%   

Investment AB Kinnevik–Class B

     119,831         3,130,721   

Swedbank AB–Class A

     110,331         2,721,289   

Telefonaktiebolaget LM Ericsson–Class B

     289,765         3,617,535   

Volvo AB–Class B

     185,860         2,578,343   
               12,047,888   
Switzerland–8.05%   

ABB Ltd.

     184,425         4,185,203   

Julius Baer Group Ltd.

     89,669         3,578,156   

Nestle S.A.

     34,731         2,480,252   

Novartis AG

     49,225         3,660,088   

Roche Holding AG

     20,737         5,191,697   

Syngenta AG

     10,563         4,523,194   

UBS AG(a)

     124,376         2,227,808   
               25,846,398   
 

 

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

 

5                         Invesco Global Growth Fund

     Shares      Value  

Taiwan–0.86%

  

Taiwan Semiconductor Manufacturing Co. Ltd.

     741,428       $ 2,748,354   
United Kingdom–13.18%   

BG Group PLC

     172,918         2,918,859   

British American Tobacco PLC

     59,584         3,300,611   

British Sky Broadcasting Group PLC

     133,996         1,758,184   

Centrica PLC

     387,511         2,236,459   

Compass Group PLC

     370,390         4,873,332   

Imperial Tobacco Group PLC

     147,796         5,285,047   

Kingfisher PLC

     556,049         2,704,453   

Next PLC

     40,547         2,748,488   

Reed Elsevier PLC

     534,113         6,239,277   

Royal Dutch Shell PLC–Class B

     104,406         3,647,354   

Smith & Nephew PLC

     191,073         2,180,090   

WPP PLC

     270,024         4,463,004   
               42,355,158   
United States–28.44%   

Accenture PLC–Class A

     35,452         2,887,212   

Amphenol Corp.–Class A

     28,288         2,136,310   

Aon PLC

     28,532         1,721,906   

Apple Inc.

     12,724         5,633,551   

Avago Technologies Ltd.

     106,911         3,416,876   

Cameron International Corp.(a)

     46,895         2,886,387   

Cardinal Health, Inc.

     53,133         2,349,541   

Celgene Corp.(a)

     31,180         3,681,423   

Chubb Corp. (The)

     22,736         2,002,360   

Cisco Systems, Inc.

     238,394         4,987,202   

Comcast Corp.–Class A

     90,749         3,747,934   
     Shares      Value  
United States–(continued)   

DIRECTV(a)

     70,732       $ 4,000,602   

Dollar General Corp.(a)

     51,015         2,657,371   

EMC Corp.(a)

     170,048         3,814,177   

Express Scripts Holding Co.(a)

     41,976         2,492,115   

First Republic Bank

     76,334         2,899,165   

Gilead Sciences, Inc.(a)

     92,594         4,688,960   

Google Inc.–Class A(a)

     6,881         5,673,866   

Home Depot, Inc. (The)

     28,128         2,063,189   

Ingersoll–Rand PLC

     56,859         3,059,014   

Joy Global Inc.

     38,318         2,165,733   

JPMorgan Chase & Co.

     40,932         2,006,077   

Macy’s, Inc.

     79,497         3,545,566   

Microsoft Corp.

     171,990         5,692,869   

Mosaic Co. (The)

     27,054         1,666,256   

Occidental Petroleum Corp.

     35,320         3,152,663   

QUALCOMM, Inc.

     58,484         3,603,784   

Scripps Networks Interactive–Class A

     41,252         2,746,558   
               91,378,667   

Total Common Stocks & Other Equity Interests
(Cost $240,429,842)

   

      311,552,130   

Money Market Funds–3.70%

  

Liquid Assets Portfolio–
Institutional Class(b)

     5,939,772         5,939,772   

Premier Portfolio–Institutional Class(b)

     5,939,772         5,939,772   

Total Money Market Funds
(Cost $11,879,544)

   

      11,879,544   

TOTAL INVESTMENTS–100.67%
(Cost $252,309,386)

   

      323,431,674   

OTHER ASSETS LESS LIABILITIES–(0.67)%

  

      (2,166,746 ) 

NET ASSETS–100.00%

  

    $ 321,264,928   
 

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

Notes to Schedule of Investments:

 

(a) Non-income producing security.
(b) The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets
as of April 30, 2013

 

Information Technology

     25.3 % 

Consumer Discretionary

     21.3   

Health Care

     11.2   

Financials

     10.8   

Industrials

     9.1   

Energy

     7.6   

Consumer Staples

     6.3   

Materials

     3.5   

Telecommunication Services

     1.2   

Utilities

     0.7   

Money Market Funds Plus Other Assets Less Liabilities

     3.0   

 

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

 

6                         Invesco Global Growth Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

Assets:

  

Investments, at value (Cost $240,429,842)

   $ 311,552,130   

Investments in affiliated money market funds, at value and cost

     11,879,544   

Total investments, at value (Cost $252,309,386)

     323,431,674   

Foreign currencies, at value (Cost $226,321)

     222,130   

Receivable for:

  

Investments sold

     1,469,304   

Fund shares sold

     57,782   

Dividends

     901,494   

Deposits with sub-custodian (Cost $352,001)

     356,171   

Investment for trustee deferred compensation and retirement plans

     71,435   

Other assets

     46,627   

Total assets

     326,556,617   

Liabilities:

  

Payable for:

  

Investments purchased

     3,948,282   

Fund shares reacquired

     689,011   

Accrued fees to affiliates

     459,801   

Accrued trustees’ and officers’ fees and benefits

     2,028   

Accrued other operating expenses

     54,391   

Trustee deferred compensation and retirement plans

     138,176   

Total liabilities

     5,291,689   

Net assets applicable to shares outstanding

   $ 321,264,928   

Net assets consist of:

  

Shares of beneficial interest

   $ 251,086,034   

Undistributed net investment income

     611,193   

Undistributed net realized gain (loss)

     (1,529,135 ) 

Unrealized appreciation

     71,096,836   
    $ 321,264,928   

Net Assets:

  

Class A

   $ 286,356,235   

Class B

   $ 8,454,248   

Class C

   $ 22,962,688   

Class Y

   $ 2,749,681   

Class R5

   $ 731,439   

Class R6

   $ 10,637   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     10,797,470   

Class B

     340,080   

Class C

     923,463   

Class Y

     103,488   

Class R5

     27,671   

Class R6

     402.6   

Class A:

  

Net asset value per share

   $ 26.52   

Maximum offering price per share

  

(Net asset value of $26.52 ¸ 94.50%)

   $ 28.06   

Class B:

  

Net asset value and offering price per share

   $ 24.86   

Class C:

  

Net asset value and offering price per share

   $ 24.87   

Class Y:

  

Net asset value and offering price per share

   $ 26.57   

Class R5:

  

Net asset value and offering price per share

   $ 26.43   

Class R6:

  

Net asset value and offering price per share

   $ 26.42   
 

 

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

 

7                         Invesco Global Growth Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $246,298)

   $ 3,055,397   

Dividends from affiliated money market funds

     4,621   

Total investment income

     3,060,018   

Expenses:

  

Advisory fees

     1,248,583   

Administrative services fees

     48,483   

Custodian fees

     43,700   

Distribution fees:

  

Class A

     349,603   

Class B

     44,653   

Class C

     111,085   

Transfer agent fees — A, B, C and Y

     417,319   

Transfer agent fees — R5

     25   

Trustees’ and officers’ fees and benefits

     15,698   

Other

     130,093   

Total expenses

     2,409,242   

Less: Fees waived, expenses reimbursed and expense offset arrangement(s)

     (121,266 ) 

Net expenses

     2,287,976   

Net investment income

     772,042   

Realized and unrealized gain from:

  

Net realized gain (loss) from:

  

Investment securities

     4,955,564   

Foreign currencies

     (43,164 ) 
      4,912,400   

Change in net unrealized appreciation (depreciation) of:

  

Investment securities

     27,340,738   

Foreign currencies

     (21,983 ) 
      27,318,755   

Net realized and unrealized gain

     32,231,155   

Net increase in net assets resulting from operations

   $ 33,003,197   

 

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

 

8                         Invesco Global Growth Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the year ended October 31, 2012

(Unaudited)

 

     April 30,
2013		      October 31,
2012		  

Operations:

     

Net investment income

   $ 772,042       $ 2,313,148   

Net realized gain

     4,912,400         18,277,924   

Change in net unrealized appreciation

     27,318,755         14,405,843   

Net increase in net assets resulting from operations

     33,003,197         34,996,915   

Distributions to shareholders from net investment income:

     

Class A

     (2,395,341 )       (1,135,136 ) 

Class B

     (15,637 )       —   

Class C

     (37,417 )       —   

Class Y

     (26,329 )       (13,183 ) 

Class R5

     (4,626 )       (4,589 ) 

Class R6

     (123 )       —   

Total distributions from net investment income

     (2,479,473 )       (1,152,908 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (1,505,256 )       —   

Class B

     (53,432 )       —   

Class C

     (127,872 )       —   

Class Y

     (12,951 )       —   

Class R5

     (2,094 )       —   

Class R6

     (54 )       —   

Total distributions from net realized gains

     (1,701,659 )       —   

Share transactions–net:

     

Class A

     (16,567,966 )       61,731,699   

Class B

     (1,752,428 )       (2,448,098 ) 

Class C

     (939,572 )       8,505,195   

Class Y

     152,165         754,792   

Class R5

     306,498         42,272   

Class R6

     —         10,000   

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

     (18,801,303 )       68,595,860   

Net increase in net assets

     10,020,762         102,439,867   

Net assets:

     

Beginning of period

     311,244,166         208,804,299   

End of period (includes undistributed net investment income of $611,193 and $2,318,624, respectively)

   $ 321,264,928       $ 311,244,166   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Global Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

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

The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class Y, Class R5 and Class R6. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y, Class R5 and Class R6 shares are sold at net asset value. Effective

 

9                         Invesco Global Growth Fund

November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

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

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

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

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

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

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

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

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

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

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

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

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

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

 

10                         Invesco Global Growth Fund

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Distributions — Distributions from income and net realized capital gain, if any, are generally 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, necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. 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. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

J. Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. Redemption Fees — The Fund had a 2% redemption fee that was retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, was imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee was recorded as an increase in shareholder capital and was allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund eliminated the 2% redemption fee assessed on shares of the Fund redeemed or exchanged within 31 days of purchase.

 

11                         Invesco Global Growth Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate

First $250 million

     0 .80%   

Next $250 million

     0 .78%   

Next $500 million

     0 .76%   

Next $1.5 billion

     0 .74%   

Next $2.5 billion

     0 .72%   

Next $2.5 billion

     0 .70%   

Next $2.5 billion

     0 .68%   

Over $10 billion

     0 .66%     

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

Effective January 1, 2013, the Adviser has contractually agreed, through at least June 30, 2014, 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 B, Class C, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 3.00%, 2.00%, 2.00% and 2.00%, respectively, of average daily net assets. Prior to January 1, 2013, the Adviser had contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class Y, Class R5 and Class R6 shares to 1.32%, 2.07%, 2.07%, 1.07%, 1.07% and 1.07%%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver 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, litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2014.

The Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees of $6,425 and reimbursed class level expenses of $101,511, $3,241, $8,064 and $893 for Class A, Class B, Class C and Class Y shares, respectively.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class Y, 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 B and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $9,556 in front-end sales commissions from the sale of Class A shares and $0, $2,309 and $439 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

 

12                         Invesco Global Growth 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

During the six months ended April 30, 2013, there were transfers from Level 1 to Level 2 of $41,741,185 and from Level 2 to Level 1 of $39,763,426, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ 8,359,586         $ 2,179,212         $ —         $ 10,538,798   

Belgium

     —           4,766,109           —           4,766,109   

Brazil

     8,055,419           —           —           8,055,419   

Canada

     11,726,334           —           —           11,726,334   

China

     12,583,790           7,030,562           —           19,614,352   

Denmark

     2,415,448           —           —           2,415,448   

France

     4,013,748           3,913,649           —           7,927,397   

Germany

     14,141,079           7,483,540           —           21,624,619   

Hong Kong

     2,226,969           3,144,197           —           5,371,166   

Israel

     8,612,214           —           —           8,612,214   

Japan

     2,599,036           7,356,193           —           9,955,229   

Mexico

     4,815,647           —           —           4,815,647   

Netherlands

     —           4,441,920           —           4,441,920   

Russia

     1,298,237           —           —           1,298,237   

Singapore

     —           2,186,343           —           2,186,343   

South Korea

     8,606,136           —           —           8,606,136   

Spain

     5,220,297           —           —           5,220,297   

Sweden

     6,748,256           5,299,632           —           12,047,888   

Switzerland

     2,480,252           23,366,146           —           25,846,398   

Taiwan

     2,748,354           —           —           2,748,354   

United Kingdom

     23,760,767           18,594,391           —           42,355,158   

United States

     103,258,211           —           —           103,258,211   

Total Investments

   $ 233,669,780         $ 89,761,894         $ —         $ 323,431,674   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2013, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,132.

 

13                         Invesco Global Growth Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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 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 generally accepted accounting principles. 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 Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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 October 31, 2012, which expires as follows:

 

Capital Loss Carryforward*  
Expiration   Short-Term        Long-Term        Total  

October 31, 2017

   $ 4,698,550         $ —         $ 4,698,550   

 

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
         To the extent that unrealized gains as of December 19, 2011, the date of reorganization of Invesco Global Advantage Fund into the Fund, are realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $35,065,885 and $59,140,237, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 74,995,411   

Aggregate unrealized (depreciation) of investment securities

     (3,914,449 ) 

Net unrealized appreciation of investment securities

   $ 71,080,962   

Cost of investments for tax purposes is $252,350,712.

 

14                         Invesco Global Growth Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2013(a)		      Year ended
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     221,099       $ 5,598,263         424,833       $ 9,696,259   

Class B

     4,802         115,134         4,614         119,211   

Class C

     37,193         883,547         42,154         1,009,559   

Class Y

     24,412         625,779         47,573         1,087,732   

Class R5

     11,730         299,943         3,216         71,604   

Class R6(b)

     —         —         403         10,000   

Issued as reinvestment of dividends:

           

Class A

     144,891         3,528,099         41,209         894,871   

Class B

     2,889         66,151         —         —   

Class C

     6,632         151,872         —         —   

Class Y

     1,408         34,338         542         11,768   

Class R5

     271         6,555         173         3,741   

Issued in connection with acquisitions:(c)

           

Class A

     —         —         4,430,742         92,331,215   

Class B

     —         —         117,982         2,312,153   

Class C

     —         —         569,039         11,161,203   

Class Y

     —         —         17,363         362,039   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     37,285         950,546         134,939         3,098,956   

Class B

     (39,747 )       (950,546 )       (145,256 )       (3,098,956 ) 

Reacquired:(d)

           

Class A

     (1,054,735 )       (26,644,874 )       (1,916,101 )       (44,289,602 ) 

Class B

     (41,657 )       (983,167 )       (80,980 )       (1,780,506 ) 

Class C

     (83,203 )       (1,974,991 )       (168,757 )       (3,665,567 ) 

Class Y

     (19,967 )       (507,952 )       (30,523 )       (706,747 ) 

Class R5

     —         —         (1,415 )       (33,073 ) 

Net increase (decrease) in share activity

     (746,697 )     $ (18,801,303 )       3,491,750       $ 68,595,860   

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 44% 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)  Commencement date of September 24, 2012.
(c)  As of the opening of business on December 19, 2011, the Fund acquired all the net assets of Invesco Global Advantage Fund (the “Target Fund”) pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of the Target Fund on November 28, 2011. The acquisition was accomplished by a tax-free exchange of 5,135,126 shares of the Fund for 10,335,183 shares outstanding of the Target Fund as of the close of business on December 16, 2011. Each class of the Target Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of the Target Fund to the net asset value of the Fund at the close of business on December 16, 2011. The Target Fund’s net assets at that date of $106,166,610, including $5,789,863 of unrealized appreciation, were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $193,640,137 and $299,806,747 immediately after the acquisition.
         The pro forma results of operations for the year ended October 31, 2012 assuming the reorganization had been completed on November 1, 2011, the beginning of the annual reporting period are as follows:

 

Net investment income

    $ 2,329,861   

Net realized/unrealized gains

      26,252,977   

Change in net assets resulting from operations

    $ 28,582,838   
         The combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that has been included in the Fund’s Statement of Operations since December 19, 2011.
(d)  Net of redemption fees of $496 allocated among the classes based on relative net assets of each class for the year ended October 31, 2012.

 

15                         Invesco Global Growth Fund

NOTE 10—Financial Highlights

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(b)		     Total
return(c)		     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(d)		  

Class A

  

Six months ended 04/30/13

   $ 24.22      $ 0.07      $ 2.57      $ 2.64      $ (0.21 )    $ (0.13 )    $ (0.34 )    $ 26.52        11.05 %    $ 286,356        1.38 %(e)      1.46 %(e)      0.57 %(e)      11 % 

Year ended 10/31/12

     22.26        0.20        1.90        2.10        (0.14 )      —        (0.14 )      24.22        9.50        277,313        1.34        1.56        0.85        33   

Year ended 10/31/11

     22.30        0.12        (0.02 )      0.10        (0.14 )      —        (0.14 )      22.26        0.41        185,484        1.62        1.63        0.50        28   

Year ended 10/31/10

     19.51        0.09        2.88        2.97        (0.18 )      —        (0.18 )      22.30        15.33        208,436        1.62        1.63        0.44        41   

Year ended 10/31/09

     16.56        0.14        3.05 (f)      3.19        (0.24 )      —        (0.24 )      19.51        19.62 (f)      204,605        1.79        1.80        0.83        40   

Year ended 10/31/08

     28.18        0.24        (11.80 )      (11.56 )      (0.06 )      —        (0.06 )      16.56        (41.11 )      190,275        1.59        1.60        1.00        48   

Class B

  

Six months ended 04/30/13

     22.64        (0.02 )      2.41        2.39        (0.04 )      (0.13 )      (0.17 )      24.86        10.63        8,454        2.13 (e)      2.21 (e)      (0.18 )(e)      11   

Year ended 10/31/12

     20.83        0.02        1.79        1.81        —        —        —        22.64        8.69        9,368        2.09        2.31        0.10        33   

Year ended 10/31/11

     20.90        (0.05 )      (0.02 )      (0.07 )      —        —        —        20.83        (0.33 )      10,776        2.37        2.38        (0.25 )      28   

Year ended 10/31/10

     18.29        (0.06 )      2.71        2.65        (0.04 )      —        (0.04 )      20.90        14.53        15,713        2.37        2.38        (0.31 )      41   

Year ended 10/31/09

     15.42        0.01        2.86 (f)      2.87        (0.00 )      —        (0.00 )      18.29        18.64 (f)      19,325        2.54        2.55        0.08        40   

Year ended 10/31/08

     26.37        0.06        (11.01 )      (10.95 )      —        —        —        15.42        (41.52 )      25,426        2.34        2.35        0.25        48   

Class C

  

Six months ended 04/30/13

     22.64        (0.02 )      2.42        2.40        (0.04 )      (0.13 )      (0.17 )      24.87        10.68        22,963        2.13 (e)      2.21 (e)      (0.18 )(e)      11   

Year ended 10/31/12

     20.83        0.02        1.79        1.81        —        —        —        22.64        8.69        21,803        2.09        2.31        0.10        33   

Year ended 10/31/11

     20.90        (0.05 )      (0.02 )      (0.07 )      —        —        —        20.83        (0.33 )      10,838        2.37        2.38        (0.25 )      28   

Year ended 10/31/10

     18.30        (0.06 )      2.70        2.64        (0.04 )      —        (0.04 )      20.90        14.47        12,893        2.37        2.38        (0.31 )      41   

Year ended 10/31/09

     15.42        0.01        2.87 (f)      2.88        (0.00 )      —        (0.00 )      18.30        18.71 (f)      13,192        2.54        2.55        0.08        40   

Year ended 10/31/08

     26.38        0.06        (11.02 )      (10.96 )      —        —        —        15.42        (41.55 )      12,719        2.34        2.35        0.25        48   

Class Y

  

Six months ended 04/30/13

     24.29        0.10        2.58        2.68        (0.27 )      (0.13 )      (0.40 )      26.57        11.21        2,750        1.13 (e)      1.21 (e)      0.82 (e)      11   

Year ended 10/31/12

     22.33        0.25        1.91        2.16        (0.20 )      —        (0.20 )      24.29        9.78        2,372        1.09        1.31        1.10        33   

Year ended 10/31/11

     22.37        0.17        (0.02 )      0.15        (0.19 )      —        (0.19 )      22.33        0.66        1,400        1.37        1.38        0.75        28   

Year ended 10/31/10

     19.57        0.14        2.89        3.03        (0.23 )      —        (0.23 )      22.37        15.58        1,123        1.37        1.38        0.69        41   

Year ended 10/31/09

     16.57        0.19        3.05 (f)      3.24        (0.24 )      —        (0.24 )      19.57        19.93 (f)      1,395        1.54        1.55        1.08        40   

Year ended 10/31/08(g)

     19.00        0.01        (2.44 )      (2.43 )      —        —        —        16.57        (12.79 )      821        1.45 (h)      1.46 (h)      1.14 (h)      48   

Class R5

                            

Six months ended 04/30/13

     24.18        0.13        2.55        2.68        (0.30 )      (0.13 )      (0.43 )      26.43        11.24        731        0.96 (e)      0.96 (e)      0.99 (e)      11   

Year ended 10/31/12

     22.33        0.28        1.90        2.18        (0.33 )      —        (0.33 )      24.18        9.95        379        0.99        0.99        1.20        33   

Year ended 10/31/11

     22.37        0.28        (0.06 )      0.22        (0.26 )      —        (0.26 )      22.33        0.95        306        0.82        0.83        1.30        28   

Year ended 10/31/10

     19.59        0.20        2.89        3.09        (0.31 )      —        (0.31 )      22.37        15.93        9        1.07        1.08        0.99        41   

Year ended 10/31/09

     16.65        0.26        3.05 (f)      3.31        (0.37 )      —        (0.37 )      19.59        20.49 (f)      1,013        1.07        1.08        1.55        40   

Year ended 10/31/08

     28.19        0.30        (11.77 )      (11.47 )      (0.07 )      —        (0.07 )      16.65        (40.79 )      1,010        1.08        1.09        1.51        48   

Class R6

                            

Six months ended 04/30/13

     24.17        0.12        2.56        2.68        (0.30 )      (0.13 )      (0.43 )      26.42        11.29        11        0.96 (e)      0.96 (e)      0.99 (e)      11   

Year ended 10/31/12(g)

     24.84        0.03        (0.70 )      (0.67 )      —        —        —        24.17        (2.70 )      10        0.95 (h)      0.96 (h)      1.24 (h)      33   

 

(a)  Calculated using average shares outstanding.
(b)  Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share, for fiscal years prior to October 31, 2012.
(c)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ended October 31, 2012, the portfolio turnover calculation excludes the value of securities purchased of $92,850,953 and sold of $35,562,826 in effect to realign the Fund’s portfolio after the reorganization of Invesco Global Advantage Fund into the Fund.
(e)  Ratios are annualized and based on average daily net assets (000’s) of $282,000, $9,005, $22,401, $2,480, $496 and $10 for Class A, Class B, Class C, Class Y, Class R5 and Class R6 shares, respectively.
(f) Includes litigation proceeds received during the period. Had the litigation proceeds not been received, net gains (losses) on securities (both realized and unrealized) per share would have been $2.93, $2.74, $2.75, $2.93 and $2.93 for Class A, Class B, Class C, Class Y and Class R5 shares, respectively and total returns would have been lower.
(g)  Commencement date of October 3, 2008 and September 24, 2012 for Class Y and Class R6 shares, respectively.
(h)  Annualized.

 

16                         Invesco Global Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account Value
(11/01/12)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio2		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2,3		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2,4		    
A   $ 1,000.00      $ 1,110.50      $ 7.22      $ 1,017.95      $ 6.90        1.38 % 
B     1,000.00        1,106.30        11.12        1,014.23        10.64        2.13   
C     1,000.00        1,106.80        11.13        1,014.23        10.64        2.13   
Y     1,000.00        1,112.10        5.92        1,019.19        5.66        1.13   
R5     1,000.00        1,112.40        5.03        1,020.03        4.81        0.96   
R6     1,000.00        1,112.90        5.03        1,020.03        4.81        0.96   

 

1 The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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. Effective January 1, 2013, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expense of Class A, Class B, Class C, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 3.00%, 2.00%, 2.00% and 2.00% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 1.46%, 2.21%, 2.21%, 1.21%, 0.96% and 0.96% for Class A, Class B, Class C, Class Y, Class R5 and Class R6 shares, respectively.
3 The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $7.64, $11.54, $11.54, $6.34, $5.03 and $5.03 for Class A, Class B, Class C, Class Y, Class R5 and Class R6 shares, respectively.
4 The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $7.30, $11.04, $11.04, $6.06, $4.81 and $4.81 for Class A, Class B, Class C, Class Y, Class R5 and Class R6 shares, respectively.

 

17                         Invesco Global Growth Fund

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611

    GLG-SAR-1    Invesco Distributors, Inc.

LOGO

  

 

  

Semiannual Report to Shareholders

 

    April 30, 2013

 

  

 

Invesco Global Opportunities Fund

  

 

Nasdaq:

   
   A: IAOPX  ¡  C: ICOPX  ¡  R: IROPX  ¡  Y: IYOPX  ¡  R5: IIOPX  ¡  R6: IFOPX

 

LOGO

 

  

 

   2    Fund Performance
  

3

    Letters to Shareholders
  

4

    Schedule of Investments
  

6

    Financial Statements
  

8

    Notes to Financial Statements
  

14

    Financial Highlights
  

15

    Fund Expenses

 

 

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

 

Unless otherwise noted, all data provided by Invesco.

 

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

 

  

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 

Fund Performance

 

 

 

Performance summary

 

     

Fund vs. Indexes

  
Cumulative total returns, 10/31/12 to 4/30/13, 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

   22.78%  

Class C Shares

   22.32  

Class R Shares

   22.70  

Class Y Shares

   22.87  

Class R5 Shares

   22.87  

Class R6 Shares

   22.99  

MSCI All Country World Index NDq (Broad Market/Style-Specific Index)

   13.46  

Lipper Global Large-Cap Core Funds Indexq (Peer Group Index)

   15.06  

Source(s): qLipper Inc.

  

 

The MSCI All Country World Index ND is an index considered representative of stock markets of developed and emerging markets. The index is computed using the net return which withholds applicable taxes for non-resident investors.

The Lipper Global Large-Cap Core Funds Index is an unmanaged index considered representative of global large-cap core 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.

  

    

  
Cumulative Total Returns            Cumulative Total Returns  
As of 4/30/13, including maximum applicable sales charges          As of 3/31/13, the most recent calendar quarter end, including maximum applicable sales charges  
Class A Shares            Class A Shares  
Inception (8/3/12)   23.48%            Inception (8/3/12)   18.53%  
Class C Shares            Class C Shares  
Inception (8/3/12)   28.91%            Inception (8/3/12)   23.78%  
Class R Shares            Class R Shares  
Inception (8/3/12)   30.43%            Inception (8/3/12)   25.19%  
Class Y Shares            Class Y Shares  
Inception (8/3/12)   30.86%            Inception (8/3/12)   25.62%  
Class R5 Shares            Class R5 Shares  
Inception (8/3/12)   30.86%            Inception (8/3/12)   25.62%  
Class R6 Shares            Class R6 Shares  
Inception   30.86%            Inception   25.52%  

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

The performance data quoted represent past performance and cannot guarantee comparable future

          results; current performance may be lower or higher. Please visit 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.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.36%, 2.11%, 1.61%, 1.11%, 1.11% and 1.11%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 3.49%, 4.24%, 3.74%, 3.24%, 3.11% and 3.07%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class 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 class shares do not have a front-end sales charge or a CDSC; therefore,performance is at net asset value.

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

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

 

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 28, 2014. See current prospectus for more information.
 

 

2   Invesco Global Opportunities Fund   

 

Letters to Shareholders

 

LOGO   

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

You can be sure your Board remains committed to doing its part in helping you along the way.

In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO   

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

n  Manage investments - Our dedicated investment professionals search the world for the best opportunities, and each investment team follows a clear, disciplined process to build portfolios and mitigate risk.

n  Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your financial adviser can build an investment portfolio designed for your individual needs and goals.

n  Connect with you - We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisers.

If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

3   Invesco Global Opportunities Fund   

Schedule of Investments

April 30, 2013

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–99.05%

  

China–2.21%   

Baidu, Inc.–ADR(a)

     811       $ 69,624   

Daphne International Holdings Ltd.

     84,000         87,463   
               157,087   
France–2.22%   

Safran S.A.

     3,206         157,755   
Germany–4.04%   

Daimler AG

     2,047         113,268   

SAP AG

     2,192         174,107   
               287,375   
Hong Kong–5.91%   

Hutchison Whampoa Ltd.

     18,000         195,539   

Jardine Matheson Holdings Ltd.

     1,600         103,888   

YGM Trading Ltd.

     42,000         120,694   
               420,121   
Japan–5.15%   

Sumitomo Mitsui Financial Group, Inc.

     2,500         118,354   

Tokyo Electron Ltd.

     2,800         143,317   

Toyota Motor Corp.

     1,800         104,333   
               366,004   
Netherlands–1.84%   

Nutreco N.V.

     1,375         130,510   
South Korea–4.08%   

Samsung Electronics Co., Ltd.

     142         195,990   

Shinhan Financial Group Co., Ltd.

     2,720         94,102   
               290,092   
Spain–3.90%   

Indra Sistemas, S.A.

     8,083         108,909   

Obrascon Huarte Lain, S.A.

     4,538         168,366   
               277,275   
Switzerland–11.18%   

Novartis AG

     4,926         366,269   

Roche Holding AG

     1,248         312,448   

UBS AG(a)

     6,476         115,998   
               794,715   
Taiwan–1.17%   

Hon Hai Precision Industry Co., Ltd. REGS–GDR(b)

     16,216         82,945   
     Shares      Value  
United Kingdom–25.19%   

BAE Systems PLC

     30,407       $ 177,547   

BG Group PLC

     8,382         141,488   

BT Group PLC

     25,624         110,179   

HSBC Holdings PLC

     24,400         266,258   

International Consolidated Airlines Group
S.A.(a)

     23,055         97,163   

Rentokil Initial PLC

     117,220         173,128   

Resolution Ltd.

     44,454         182,540   

Rio Tinto Ltd.

     2,504         145,205   

Thomas Cook Group PLC(a)

     179,218         361,768   

WPP PLC

     8,158         134,838   
               1,790,114   
United States–32.16%   

Apache Corp.

     1,423         105,131   

Citigroup Inc.

     6,705         312,855   

EMC Corp.(a)

     3,501         78,527   

Emerson Electric Co.

     2,216         123,010   

Google Inc.–Class A(a)

     182         150,072   

Johnson & Johnson

     2,286         194,836   

Laboratory Corp. of America Holdings(a)

     1,623         151,523   

Microsoft Corp.

     7,601         251,593   

Philip Morris International Inc.

     1,262         120,635   

Priceline.com Inc.(a)

     121         84,215   

Stanley Black & Decker Inc.

     1,690         126,429   

Time Warner Inc.

     1,841         110,055   

United Technologies Corp.

     1,916         174,912   

WESCO International, Inc.(a)

     2,478         177,648   

World Acceptance Corp.(a)

     1,391         123,604   
               2,285,045   

Total Common Stocks & Other Equity Interests
(Cost $6,052,057)

   

      7,039,038   

Money Market Funds–0.38%

     

Liquid Assets Portfolio–Institutional
Class(c)

     13,584         13,584   

Premier Portfolio–Institutional Class(c)

     13,584         13,584   

Total Money Market Funds
(Cost $27,168)

              27,168   

TOTAL INVESTMENTS–99.43%
(Cost $6,079,225)

   

      7,066,206   

OTHER ASSETS LESS LIABILITIES–0.57%

  

      40,381   

NET ASSETS–100.00%

  

    $ 7,106,587   
 

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

GDR  

– Global Depositary Receipt

REGS  

– Regulation S

 

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

 

4                         Invesco Global Opportunities Fund

Notes to Schedule of Investments:

 

(a)  Non-income producing security.
(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1993, 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 April 30, 2013 represented 1.17% of the Fund’s Net Assets.
(c)  The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2013

 

Industrials

     21.8 % 

Information Technology

     17.7   

Consumer Discretionary

     17.5   

Financials

     17.1   

Health Care

     14.4   

Consumer Staples

     3.5   

Energy

     3.5   

Materials

     2.0   

Telecommunication Services

     1.5   

Money Market Funds Plus Other Assets Less Liabilities

     1.0   

 

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

 

5                         Invesco Global Opportunities Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

Assets:

  

Investments, at value (Cost $6,052,057)

   $ 7,039,038   

Investments in affiliated money market funds, at value and cost

     27,168   

Total investments, at value (Cost $6,079,225)

     7,066,206   

Foreign currencies, at value (Cost $565)

     559   

Receivable for:

  

Fund shares sold

     8,051   

Dividends

     32,363   

Investment for trustee deferred compensation and retirement plans

     2,625   

Other assets

     44,736   

Total assets

     7,154,540   

Liabilities:

  

Payable for:

  

Accrued fees to affiliates

     11,721   

Accrued trustees’ and officers’ fees and benefits

     1,774   

Accrued other operating expenses

     31,833   

Trustee deferred compensation and retirement plans

     2,625   

Total liabilities

     47,953   

Net assets applicable to shares outstanding

   $ 7,106,587   

Net assets consist of:

  

Shares of beneficial interest

   $ 5,857,970   

Undistributed net investment income

     45,368   

Undistributed net realized gain

     216,102   

Unrealized appreciation

     987,147   
    $ 7,106,587   

Net Assets:

  

Class A

   $ 4,895,994   

Class C

   $ 230,852   

Class R

   $ 12,970   

Class Y

   $ 1,941,674   

Class R5

   $ 13,016   

Class R6

   $ 12,081   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     377,177   

Class C

     17,882   

Class R

     1,001   

Class Y

     149,327   

Class R5

     1,001   

Class R6

     929.6   

Class A:

  

Net asset value per share

   $ 12.98   

Maximum offering price per share

  

(Net asset value of $12.98 ¸ 94.50%)

   $ 13.74   

Class C:

  

Net asset value and offering price per share

   $ 12.91   

Class R:

  

Net asset value and offering price per share

   $ 12.96   

Class Y:

  

Net asset value and offering price per share

   $ 13.00   

Class R5:

  

Net asset value and offering price per share

   $ 13.00   

Class R6:

  

Net asset value and offering price per share

   $ 13.00   
 

 

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

 

6                         Invesco Global Opportunities Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $7,217)

   $ 83,720   

Dividends from affiliated money market funds

     84   

Total investment income

     83,804   

Expenses:

  

Advisory fees

     21,477   

Administrative services fees

     24,795   

Custodian fees

     13,242   

Distribution fees:

  

Class A

     4,384   

Class C

     456   

Class R

     29   

Transfer agent fees — A, C, R and Y

     835   

Transfer agent fees — R5

     6   

Transfer agent fees — R6

     5   

Trustees’ and officers’ fees and benefits

     12,947   

Filing fees

     56,846   

Professional fees

     25,220   

Other

     15,847   

Total expenses

     176,089   

Less: Fees waived and expenses reimbursed

     (141,607 ) 

Net expenses

     34,482   

Net investment income

     49,322   

Realized and unrealized gain from:

  

Net realized gain from:

  

Investment securities

     213,758   

Foreign currencies

     4,659   
      218,417   

Change in net unrealized appreciation of:

  

Investment securities

     785,326   

Foreign currencies

     474   
      785,800   

Net realized and unrealized gain

     1,004,217   

Net increase in net assets resulting from operations

   $ 1,053,539   

 

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

 

7                         Invesco Global Opportunities Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the period August 3, 2012 (commencement date) through October 31, 2012

(Unaudited)

 

     April 30,
2013		      October 31,
2012		  

Operations:

  

   

Net investment income

   $ 49,322       $ 7,250   

Net realized gain (loss)

     218,417         (15,991 ) 

Change in net unrealized appreciation

     785,800         201,347   

Net increase in net assets resulting from operations

     1,053,539         192,606   

Distributions to shareholders from net investment income:

     

Class A

     (11,076 )       —   

Class C

     (149 )       —   

Class R

     (70 )       —   

Class Y

     (10,751 )       —   

Class R5

     (72 )       —   

Class R6

     (67 )       —   

Total distributions from net investment income

     (22,185 )       —   

Share transactions–net:

     

Class A

     2,582,017         1,562,957   

Class C

     198,688         13,860   

Class R

     —         10,010   

Class Y

     10,075         1,485,010   

Class R5

     —         10,010   

Class R6

     —         10,000   

Net increase in net assets resulting from share transactions

     2,790,780         3,091,847   

Net increase in net assets

     3,822,134         3,284,453   

Net assets:

     

Beginning of period

     3,284,453         —   

End of period (includes undistributed net investment income of $45,368 and $18,231, respectively)

   $ 7,106,587       $ 3,284,453   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Global Opportunities Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver 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.

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

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

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

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

 

8                         Invesco Global Opportunities Fund

per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

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

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

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

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

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

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

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

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

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

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

 

9                         Invesco Global Opportunities Fund

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 to each share class based on relative net assets. 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. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

J. Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate  

First $250 million

     0.80%   

Next $250 million

     0.78%   

Next $500 million

     0.76%   

Next $1.5 billion

     0.74%   

Next $2.5 billion

     0.72%   

Next $2.5 billion

     0.70%   

Next $2.5 billion

     0.68%   

Over $10 billion

     0.66%   

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

 

10                         Invesco Global Opportunities Fund

The Adviser has contractually agreed, through at least February 28, 2014, 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 1.36%, 2.11%, 1.61%, 1.11%, 1.11% and 1.11%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver 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, litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on February 28, 2014. To the extent that the annualized expense ratio does not exceed the expense limitation, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

The Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees and reimbursed fund level expenses of $140,760 and reimbursed class level expenses of $548, $14, $2, $271, $6 and $6 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $1,874 in front-end sales commissions from the sale of Class A shares.

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

NOTE 3—Additional Valuation Information

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

11                         Invesco Global Opportunities Fund

During the six months ended April 30, 2013, there were transfers from Level 1 to Level 2 of $1,238,592 and from Level 2 to Level 1 of $134,837, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

China

   $ 157,087         $ —         $ —         $ 157,087   

France

     —           157,755           —           157,755   

Germany

     287,375           —           —           287,375   

Hong Kong

     420,121           —           —           420,121   

Japan

     143,317           222,687           —           366,004   

Netherlands

     130,510           —           —           130,510   

South Korea

     290,092           —           —           290,092   

Spain

     —           277,275           —           277,275   

Switzerland

     —           794,715           —           794,715   

Taiwan

     82,945           —           —           82,945   

United Kingdom

     232,001           1,558,113           —           1,790,114   

United States

     2,312,213           —           —           2,312,213   

Total Investments

   $ 4,055,661         $ 3,010,545         $ —         $ 7,066,206   

NOTE 4—Trustees’ and Officers’ Fees and Benefits

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

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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 6—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 generally accepted accounting principles. 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 Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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 October 31, 2012, which expires as follows:

 

Capital Loss Carryforward*  
Expiration   Short-Term        Long-Term        Total  

Not subject to expiration

   $ 2,315         $ —         $ 2,315   

 

* Capital loss carryforward listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

 

12                         Invesco Global Opportunities Fund

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $5,867,679 and $2,985,747, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 1,042,625   

Aggregate unrealized (depreciation) of investment securities

     (55,644 ) 

Net unrealized appreciation of investment securities

   $ 986,981   

Cost of investments is the same for tax and financial reporting purposes.

NOTE 8—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2013(a)		      August 3, 2012
(commencement date) to
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     423,832       $ 5,060,860         157,740       $ 1,583,061   

Class C

     17,136         206,466         1,364         13,860   

Class R

     —         —         1,001         10,010   

Class Y

     826         10,075         148,501         1,485,010   

Class R5

     —         —         1,001         10,010   

Class R6(b)

     —         —         930         10,000   

Issued as reinvestment of dividends:

           

Class A

     50         547         —         —   

Class C

     7         80         —         —   

Reacquired:

           

Class A

     (202,555 )       (2,479,390 )       (1,890 )       (20,104 ) 

Class C

     (625 )       (7,858 )       —         —   

Net increase in share activity

     238,671       $ 2,790,780         308,647       $ 3,091,847   

 

(a) There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 26% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by this entity are also owned beneficially.
         In addition, 55% of the outstanding shares of the Fund are owned by the Adviser.
(b) Commencement date of September 24, 2012.

 

13                         Invesco Global Opportunities Fund

NOTE 9—Financial Highlights

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		     Ratio of net
investment
income
to average
net assets		     Portfolio
turnover(c)		  

Class A

                        

Six months ended 04/30/13

   $ 10.64      $ 0.11      $ 2.30      $ 2.41      $ (0.07 )    $ 12.98        22.78 %    $ 4,896        1.36 %(d)      6.63 %(d)      1.76 %(d)      56 % 

Period ended ended 10/31/12(e)

     10.00        0.02        0.62        0.64        —        10.64        6.40        1,658        1.35 (f)      11.20 (f)      0.80 (f)      9   

Class C

                        

Six months ended 04/30/13

     10.62        0.06        2.30        2.36        (0.07 )      12.91        22.32        231        2.11 (d)      7.38 (d)      1.01 (d)      56   

Period ended ended 10/31/12(e)

     10.00        0.00        0.62        0.62        —        10.62        6.20        14        2.10 (f)      11.95 (f)      0.05 (f)      9   

Class R

                        

Six months ended 04/30/13

     10.63        0.09        2.31        2.40        (0.07 )      12.96        22.70        13        1.61 (d)      6.88 (d)      1.51 (d)      56   

Period ended ended 10/31/12(e)

     10.00        0.01        0.62        0.63        —        10.63        6.30        11        1.60 (f)      11.45 (f)      0.55 (f)      9   

Class Y

                        

Six months ended 04/30/13

     10.65        0.12        2.30        2.42        (0.07 )      13.00        22.87        1,942        1.11 (d)      6.38 (d)      2.01 (d)      56   

Period ended ended 10/31/12(e)

     10.00        0.03        0.62        0.65        —        10.65        6.50        1,581        1.10 (f)      10.95 (f)      1.05 (f)      9   

Class R5

                        

Six months ended 04/30/13

     10.64        0.12        2.31        2.43        (0.07 )      13.00        22.87        13        1.11 (d)      6.45 (d)      2.01 (d)      56   

Period ended ended 10/31/12(e)

     10.00        0.03        0.61        0.64        —        10.64        6.40        11        1.10 (f)      11.00 (f)      1.05 (f)      9   

Class R6

                        

Six months ended 04/30/13

     10.64        0.12        2.31        2.43        (0.07 )      13.00        22.99        12        1.11 (d)      6.45 (d)      2.01 (d)      56   

Period ended ended 10/31/12(e)

     10.76        0.01        (0.13 )      (0.12 )      —        10.64        (1.12 )      10        1.10 (f)      8.37 (f)      1.05 (f)      9   

 

(a)  Calculated using average shares outstanding.
(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $3,536, $92, $12, $1,751, $12 and $11 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
(e)  Commencement date of August 3, 2012 for Class A shares, Class C shares, Class R shares, Class Y shares and Class R5 shares and September 24, 2012 for Class R6 shares.
(f) Annualized.

 

14                         Invesco Global Opportunities Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account Value
(11/01/12)		     ACTUAL    

HYPOTHETICAL

(5% annual return before

expenses)

     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,227.80      $ 7.51      $ 1,018.05      $ 6.80        1.36 % 
C     1,000.00        1,223.20        11.63        1,014.33        10.54        2.11   
R     1,000.00        1,227.00        8.89        1,016.81        8.05        1.61   
Y     1,000.00        1,228.70        6.13        1,019.29        5.56        1.11   
R5     1,000.00        1,228.70        6.13        1,019.29        5.56        1.11   
R6     1,000.00        1,229.90        6.14        1,019.29        5.56        1.11   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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.

 

15                         Invesco Global Opportunities Fund

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611    GLOPP-SAR-1    Invesco Distributors, Inc.   

LOGO

 

 

Semiannual Report to Shareholders

 

    April 30, 2013

Invesco Global Small & Mid Cap Growth Fund

Nasdaq:

A: AGAAX ¡ B: AGABX ¡ C: AGACX ¡ Y: AGAYX ¡ R5: GAIIX

 

 

 

LOGO

 

 

 

2

   

 

Fund Performance

 

3

   

 

Letters to Shareholders

 

4

   

 

Schedule of Investments

 

6

   

 

Financial Statements

 

8

   

 

Notes to Financial Statements

 

14

   

 

Financial Highlights

 

15

   

 

Fund Expenses

 

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

Unless otherwise noted, all data provided by Invesco.

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

 

 

NOT FDIC INSURED   |  MAY LOSE VALUE  |   NO BANK GUARANTEE

 

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

Cumulative total returns, 10/31/12 to 4/30/13, 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       14.65 %
Class B Shares       14.19  
Class C Shares       14.24  
Class Y Shares       14.80  
Class R5 Shares       14.91  
MSCI World Index ND‚ (Broad Market Index)       14.67  
MSCI World Growth Index NDn (Style-Specific Index)       13.72  
Lipper Global Small/Mid-Cap Funds Classification Averagen
(Peer Group)		       13.07  

Source(s): ‚Invesco, MSCI via FactSet Research Systems Inc.; nLipper Inc.

The MSCI World IndexSM ND is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return which withholds applicable sales taxes for non-resident investors.

    The MSCI World Growth Index ND is an unmanaged index considered representative of growth stocks of developed countries. The index is computed using the net return which withholds applicable sales taxes for non-resident investors.

    The Lipper Global Small/Mid-Cap Funds Classification Average represents an average of all of the funds in the Lipper Global Small/Mid-Cap 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.

 

Average Annual Total Returns
As of 4/30/13, including maximum applicable sales charges    

 

 

Class A Shares

          
Inception (9/15/94)       8.21 %
10 Years       11.21  
  5 Years       1.56  
  1 Year       7.78  

 

Class B Shares

          
Inception (9/15/94)       8.28 %
10 Years       11.22  
  5 Years       1.60  
  1 Year       8.17  

 

Class C Shares

          
Inception (8/4/97)       5.19 %
10 Years       11.07  
  5 Years       1.95  
  1 Year       12.23  

 

Class Y Shares

          
10 Years       11.98 %
  5 Years       2.96  
  1 Year       14.35  

 

Class R5 Shares

          
10 Years       12.19 %
  5 Years       3.26  
  1 Year       14.59  
Average Annual Total Returns
As of 3/31/13, the most recent calendar quarter-end, including maximum applicable sales charges     

 

Class A Shares

          
Inception (9/15/94)       8.09 %
10 Years       11.60  
  5 Years       1.84  
  1 Year       4.65  

 

Class B Shares

          
Inception (9/15/94)       8.17 %
10 Years       11.63  
  5 Years       1.89  
  1 Year       4.89  

 

Class C Shares

          
Inception (8/4/97)       5.05 %
10 Years       11.45  
  5 Years       2.22  
  1 Year       8.89  

 

Class Y Shares

          
10 Years       12.37 %
  5 Years       3.23  
  1 Year       10.96  

 

Class R5 Shares

          
10 Years       12.58 %
  5 Years       3.55  
  1 Year       11.24  
 

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    Class R5 shares incepted on September 28, 2007. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit 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.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Class R5 shares was 1.43%, 2.18%, 2.18%, 1.18% and 0.95%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y and Class R5 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.

 

 

2                        Invesco Global Small & Mid Cap Growth Fund

 

Letters to Shareholders

 

LOGO

   Bruce Crockett

    

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

  

You can be sure your Board remains committed to doing its part in helping you along the way. In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

     Philip Taylor

    

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

n  Manage investments - Our dedicated investment professionals search the world for the best opportunities, and each investment team follows a clear, disciplined process to build portfolios and mitigate risk.

  
  n  

Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your financial adviser can build an investment portfolio designed for your individual needs and goals.

  n  

Connect with you - We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisers.

    If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

    All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

3                        Invesco Global Small & Mid Cap Growth Fund

Schedule of Investments

April 30, 2013

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–95.65%

  

Australia–1.36%   

Computershare Ltd.

     779,807       $ 8,027,668   
Belgium–0.67%     

S.A. D’Ieteren N.V.

     86,244         3,975,417   
Brazil–5.35%     

CETIP S.A.–Mercados Organizados

     575,300         6,811,704   

Cielo S.A.

     473,226         12,481,076   

Duratex S.A.

     1,632,994         12,283,367   
               31,576,147   
Canada–8.86%     

Fairfax Financial Holdings Ltd.

     20,671         8,292,818   

MacDonald, Dettwiler and Associates Ltd.

     62,200         4,493,045   

Onex Corp.

     302,723         15,100,090   

Open Text Corp.

     102,645         6,707,485   

Paramount Resources Ltd.–Class A(a)

     296,410         10,607,088   

Precision Drilling Corp.

     870,962         7,063,490   
               52,264,016   
China–2.92%     

Lee & Man Paper Manufacturing Ltd.

     12,159,000         9,057,696   

NetEase, Inc.–ADR

     144,631         8,155,742   
               17,213,438   
Germany–3.39%     

Brenntag AG

     29,717         5,066,322   

Deutsche Boerse AG

     131,408         8,203,250   

MorphoSys AG(a)

     148,595         6,748,701   
               20,018,273   
Hong Kong–0.61%     

Hongkong Land Holdings Ltd.

     497,000         3,612,406   
Indonesia–1.45%     

PT Perusahaan Gas Negara Persero Tbk

     13,276,500         8,524,566   
Ireland–2.93%     

DCC PLC

     366,961         13,430,563   

Shire PLC

     123,205         3,838,143   
               17,268,706   
Israel–0.90%     

Israel Chemicals Ltd.

     446,257         5,322,591   
Japan–2.93%     

EXEDY Corp.

     339,300         8,522,761   

THK Co., Ltd.

     417,300         8,762,059   
               17,284,820   
Netherlands–0.21%     

NXP Semiconductors N.V.(a)

     44,910         1,237,271   
Philippines–4.12%     

Ayala Corp.

     1,046,109         16,312,708   

Energy Development Corp.(b)

     6,577,500         1,039,561   
     Shares      Value  
Philippines–(continued)     

Energy Development Corp.

     44,094,600       $ 6,969,066   
               24,321,335   
South Africa–2.26%     

AngloGold Ashanti Ltd.–ADR

     87,789         1,711,886   

Naspers Ltd.–Class N

     173,333         11,612,480   
               13,324,366   
South Korea–1.78%     

NHN Corp.

     39,169         10,527,771   
Sweden–1.31%     

Investment AB Kinnevik–Class B

     294,904         7,704,703   
Switzerland–3.06%     

Aryzta AG

     217,713         13,524,999   

Tecan Group AG

     48,908         4,549,948   
               18,074,947   
Tanzania–0.39%     

African Barrick Gold PLC

     845,685         2,298,952   
Thailand–2.48%     

Siam Commercial Bank PCL

     2,302,100         14,628,992   
Turkey–3.59%     

Haci Omer Sabanci Holding A.S.

     1,770,697         11,035,901   

Tupras–Turkiye Petrol Rafinerileri A.S.

     363,635         10,163,574   
               21,199,475   
United Arab Emirates–1.41%     

Dragon Oil PLC

     847,085         8,329,405   
United Kingdom–15.88%     

Bunzl PLC

     355,093         7,054,983   

Chemring Group PLC

     955,565         4,034,522   

Compass Group PLC

     611,853         8,050,332   

Homeserve PLC

     1,650,642         5,369,241   

IG Group Holdings PLC

     1,623,859         13,583,676   

Informa PLC

     1,662,227         12,342,454   

Lancashire Holdings Ltd.

     637,330         8,380,591   

Micro Focus International PLC

     1,005,286         10,454,987   

Smiths Group PLC

     396,534         7,699,699   

UBM PLC

     424,848         4,840,281   

Ultra Electronics Holdings PLC

     266,074         6,819,769   

William Hill PLC

     769,250         5,090,500   
               93,721,035   
United States–27.79%     

Affiliated Managers Group, Inc.(a)

     29,897         4,654,365   

Albemarle Corp.

     46,556         2,851,555   

Alliance Data Systems Corp.(a)

     12,619         2,167,566   

AMETEK, Inc.

     97,106         3,953,185   

Amphenol Corp.–Class A

     55,387         4,182,826   

Avago Technologies Ltd.

     73,891         2,361,556   
 

 

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

 

4                         Invesco Global Small & Mid Cap Growth Fund

     Shares      Value  
United States–(continued)     

B/E Aerospace, Inc.(a)

     66,986       $ 4,202,702   

BioMarin Pharmaceutical Inc.(a)

     51,522         3,379,843   

Cameron International Corp.(a)

     41,095         2,529,397   

Catamaran Corp.(a)

     54,895         3,169,088   

Church & Dwight Co., Inc.

     34,987         2,235,319   

Cinemark Holdings, Inc.

     168,530         5,205,892   

Citrix Systems, Inc.(a)

     41,264         2,565,383   

CME Group Inc.

     33,984         2,068,266   

Cummins Inc.

     20,951         2,228,977   

DaVita HealthCare Partners Inc.(a)

     17,943         2,128,937   

Dick’s Sporting Goods, Inc.

     88,627         4,262,959   

Discover Financial Services

     65,493         2,864,664   

EQT Corp.

     33,267         2,499,017   

F5 Networks, Inc.(a)

     19,215         1,468,602   

Fastenal Co.

     80,039         3,925,913   

HMS Holdings Corp.(a)

     68,690         1,731,675   

Intuitive Surgical, Inc.(a)

     3,610         1,777,167   

Joy Global Inc.

     42,588         2,407,074   

Kansas City Southern

     24,316         2,652,146   

Lennox International Inc.

     31,237         1,936,694   

LyondellBasell Industries N.V.–Class A

     26,795         1,626,457   

MasTec Inc.(a)

     95,281         2,648,812   

Mead Johnson Nutrition Co.

     56,586         4,588,559   

Medivation Inc.(a)

     90,390         4,764,457   

Michael Kors Holdings Ltd.(a)

     54,682         3,113,593   

O’Reilly Automotive, Inc.(a)

     26,564         2,850,848   

Onyx Pharmaceuticals, Inc.(a)

     40,215         3,812,382   

Palo Alto Networks, Inc.(a)

     52,928         2,863,405   

Pioneer Natural Resources Co.

     34,168         4,176,355   
     Shares      Value  
United States–(continued)     

PPG Industries, Inc.

     40,584       $ 5,971,530   

Ralph Lauren Corp.

     21,757         3,950,636   

Red Hat, Inc.(a)

     32,649         1,564,867   

Salesforce.com, Inc.(a)

     37,188         1,528,799   

Superior Energy Services, Inc.(a)

     75,925         2,094,771   

Teradata Corp.(a)

     28,306         1,445,587   

Tesla Motors, Inc.(a)

     63,977         3,454,118   

Tractor Supply Co.

     16,982         1,819,961   

Triumph Group, Inc.

     55,028         4,396,737   

Ulta Salon, Cosmetics & Fragrance, Inc.(a)

     59,387         5,205,271   

Under Armour, Inc.–Class A(a)

     83,972         4,793,122   

Universal Health Services, Inc.–Class B

     112,496         7,491,109   

Urban Outfitters, Inc.(a)

     81,955         3,396,215   

Waste Connections, Inc.

     94,585         3,589,501   

Whole Foods Market, Inc.

     45,829         4,047,617   

Wynn Resorts Ltd.

     24,303         3,336,802   
               163,942,279   

Total Common Stocks & Other
Equity Interests
(Cost $391,473,914)

   

      564,398,579   

Money Market Funds–4.49%

  

   

Liquid Assets Portfolio–
Institutional Class(c)

     13,239,393         13,239,393   

Premier Portfolio–
Institutional Class(c)

     13,239,394         13,239,394   

Total Money Market Funds
(Cost $26,478,787)

   

      26,478,787   

TOTAL INVESTMENTS–100.14%
(Cost $417,952,701)

   

      590,877,366   

OTHER ASSETS LESS LIABILITIES–(0.14)%

  

      (837,648 ) 

NET ASSETS–100.00%

  

    $ 590,039,718   
 

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

Notes to Schedule of Investments:

 

(a)  Non-income producing security.
(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 value of this security at April 30, 2013 represented less than 1% of the Fund’s Net Assets.
(c) The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets
as of April 30, 2013

 

Financials

     20.9 % 

Consumer Discretionary

     16.2   

Industrials

     15.3   

Information Technology

     13.9   

Energy

     8.0   

Health Care

     7.4   

Materials

     7.0   

Consumer Staples

     4.1   

Utilities

     2.8   

Money Market Funds Plus Other Assets Less Liabilities

     4.4   

 

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

 

5                         Invesco Global Small & Mid Cap Growth Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

Assets:

  

Investments, at value (Cost $391,473,914)

   $ 564,398,579   

Investments in affiliated money market funds, at value and cost

     26,478,787   

Total investments, at value (Cost $417,952,701)

     590,877,366   

Foreign currencies, at value (Cost $34,315)

     35,070   

Receivable for:

  

Investments sold

     260,955   

Fund shares sold

     535,668   

Dividends

     1,505,761   

Investment for trustee deferred compensation and retirement plans

     84,205   

Other assets

     37,896   

Total assets

     593,336,921   

Liabilities:

  

Payable for:

  

Investments purchased

     413,113   

Fund shares reacquired

     460,520   

Accrued fees to affiliates

     425,385   

Accrued trustees’ and officers’ fees and benefits

     2,377   

Accrued foreign taxes

     1,692,137   

Accrued other operating expenses

     80,179   

Trustee deferred compensation and retirement plans

     223,492   

Total liabilities

     3,297,203   

Net assets applicable to shares outstanding

   $ 590,039,718   

Net assets consist of:

  

Shares of beneficial interest

   $ 394,820,440   

Undistributed net investment income

     2,485,193   

Undistributed net realized gain

     19,795,940   

Unrealized appreciation

     172,938,145   
    $ 590,039,718   

Net Assets:

  

Class A

   $ 517,315,304   

Class B

   $ 16,130,774   

Class C

   $ 25,614,850   

Class Y

   $ 8,850,345   

Class R5

   $ 22,128,445   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     25,826,918   

Class B

     924,770   

Class C

     1,467,393   

Class Y

     441,003   

Class R5

     1,108,221   

Class A:

  

Net asset value per share

   $ 20.03   

Maximum offering price per share

  

(Net asset value of $20.03 ¸ 94.50%)

   $ 21.20   

Class B:

  

Net asset value and offering price per share

   $ 17.44   

Class C:

  

Net asset value and offering price per share

   $ 17.46   

Class Y:

  

Net asset value and offering price per share

   $ 20.07   

Class R5:

  

Net asset value and offering price per share

   $ 19.97   
 

 

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

 

6                         Invesco Global Small & Mid Cap Growth Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $298,375)

    $ 6,732,079   

Dividends from affiliated money market funds

      11,647   

Total investment income

      6,743,726   

Expenses:

   

Advisory fees

      2,203,428   

Administrative services fees

      74,349   

Custodian fees

      97,155   

Distribution fees:

   

Class A

      613,615   

Class B

      84,434   

Class C

      118,622   

Transfer agent fees — A, B, C and Y

      680,739   

Transfer agent fees — R5

      5,949   

Trustees’ and officers’ fees and benefits

      17,332   

Other

      118,761   

Total expenses

      4,014,384   

Less: Fees waived and expense offset arrangement(s)

      (19,142 ) 

Net expenses

      3,995,242   

Net investment income

      2,748,484   

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Investment securities

      20,694,259   

Foreign currencies

      (38,006 ) 
       20,656,253   

Change in net unrealized appreciation of:

   

Investment securities (net of foreign taxes on holdings of $(359,587))

      53,767,280   

Foreign currencies

      16,228   
       53,783,508   

Net realized and unrealized gain

      74,439,761   

Net increase in net assets resulting from operations

    $ 77,188,245   

 

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

 

7                         Invesco Global Small & Mid Cap Growth Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the year ended October 31, 2012

(Unaudited)

 

     April 30,
2013		      October 31,
2012		  

Operations:

  

   

Net investment income

   $ 2,748,484       $ 5,450,446   

Net realized gain

     20,656,253         8,335,540   

Change in net unrealized appreciation

     53,783,508         28,821,103   

Net increase in net assets resulting from operations

     77,188,245         42,607,089   

Distributions to shareholders from net investment income:

     

Class A

     (4,227,552 )       (6,820,626 ) 

Class B

     (57,975 )       (108,863 ) 

Class C

     (77,135 )       (111,931 ) 

Class Y

     (79,225 )       (127,196 ) 

Class R5

     (261,890 )       (454,708 ) 

Total distributions from net investment income

     (4,703,777 )       (7,623,324 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (6,624,317 )       (30,688,616 ) 

Class B

     (269,646 )       (1,557,807 ) 

Class C

     (358,765 )       (1,601,713 ) 

Class Y

     (100,004 )       (461,675 ) 

Class R5

     (280,332 )       (1,386,928 ) 

Total distributions from net realized gains

     (7,633,064 )       (35,696,739 ) 

Share transactions–net:

     

Class A

     (21,612,957 )       (26,615,988 ) 

Class B

     (3,322,564 )       (5,249,848 ) 

Class C

     455,702         (811,631 ) 

Class Y

     553,956         (148,594 ) 

Class R5

     (754,549 )       (2,384,743 ) 

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

     (24,680,412 )       (35,210,804 ) 

Net increase (decrease) in net assets

     40,170,992         (35,923,778 ) 

Net assets:

     

Beginning of period

     549,868,726         585,792,504   

End of period (includes undistributed net investment income of $2,485,193 and $4,440,486, respectively)

   $ 590,039,718       $ 549,868,726   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Global Small & Mid Cap Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

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

The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Class R5. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y and Class R5 shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will

 

8                         Invesco Global Small & Mid Cap Growth Fund

automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

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

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

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

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

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

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

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

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

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

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

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

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

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

C.

Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among

 

9                         Invesco Global Small & Mid Cap Growth Fund

  the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Distributions — Distributions from income and net realized capital gain, if any, are generally 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, necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 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. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

J. Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. Redemption Fees – The Fund had a 2% redemption fee that was retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, was imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee was recorded as an increase in shareholder capital and was allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund eliminated the 2% redemption fee assessed on shares of the Fund redeemed or exchanged within 31 days of purchase.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate

First $250 million

     0 .80%   

Next $250 million

     0 .78%   

Next $500 million

     0 .76%   

Next $1.5 billion

     0 .74%   

 

10                         Invesco Global Small & Mid Cap Growth Fund

Next $2.5 billion

     0 .72%   

Next $2.5 billion

     0 .70%   

Next $2.5 billion

     0 .68%   

Over $10 billion

     0 .66%     

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

The Adviser has contractually agreed, through at least June 30, 2014, 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 B, Class C, Class Y and Class R5 shares to 2.25%, 3.00%, 3.00%, 2.00% and 2.00%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2014. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

Further, the Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees of $16,991.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, 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 B, Class C, Class Y and Class R5 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $23,562 in front-end sales commissions from the sale of Class A shares and $5, $9,084 and $1,432 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

For the six months ended April 30, 2013, the Fund incurred $3,034 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3—Additional Valuation Information

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

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.
  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
  Level 3 —

Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used.

 

11                         Invesco Global Small & Mid Cap Growth Fund

  Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

During the six months ended April 30, 2013, there were transfers from Level 1 to Level 2 of $73,952,873 and from Level 2 to Level 1 of $30,377,957, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ 8,027,668         $ —         $ —         $ 8,027,668   

Belgium

     3,975,417           —           —           3,975,417   

Brazil

     31,576,147           —           —           31,576,147   

Canada

     52,264,016           —           —           52,264,016   

China

     8,155,742           9,057,696           —           17,213,438   

Germany

     20,018,273           —           —           20,018,273   

Hong Kong

     —           3,612,406           —           3,612,406   

Indonesia

     8,524,566           —           —           8,524,566   

Ireland

     13,430,563           3,838,143           —           17,268,706   

Israel

     —           5,322,591           —           5,322,591   

Japan

     8,762,059           8,522,761           —           17,284,820   

Netherlands

     1,237,271           —           —           1,237,271   

Philippines

     8,008,627           16,312,708           —           24,321,335   

South Africa

     1,711,886           11,612,480           —           13,324,366   

South Korea

     10,527,771           —           —           10,527,771   

Sweden

     7,704,703           —           —           7,704,703   

Switzerland

     4,549,948           13,524,999           —           18,074,947   

Tanzania

     2,298,952           —           —           2,298,952   

Thailand

     —           14,628,992           —           14,628,992   

Turkey

     —           21,199,475           —           21,199,475   

United Arab Emirates

     8,329,405           —           —           8,329,405   

United Kingdom

     84,846,232           8,874,803           —           93,721,035   

United States

     190,421,066           —           —           190,421,066   

Total Investments

   $ 474,370,312         $ 116,507,054         $ —         $ 590,877,366   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2013, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,151.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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 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 generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for

 

12                         Invesco Global Small & Mid Cap Growth Fund

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 Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of October 31, 2012.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $57,125,558 and $86,274,122, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 190,590,923   

Aggregate unrealized (depreciation) of investment securities

     (18,510,418 ) 

Net unrealized appreciation of investment securities

   $ 172,080,505   

Cost of investments for tax purposes is $418,796,861.

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2013(a)		      Year ended
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     647,215       $ 12,170,514         1,205,494       $ 20,836,098   

Class B

     24,313         406,741         39,260         595,951   

Class C

     138,580         2,266,211         231,133         3,457,433   

Class Y

     84,416         1,606,941         123,609         2,150,277   

Class R5

     73,841         1,379,022         141,555         2,354,943   

Issued as reinvestment of dividends:

           

Class A

     593,803         10,599,391         2,215,027         35,684,100   

Class B

     20,759         323,638         114,873         1,623,294   

Class C

     27,510         429,152         114,861         1,624,132   

Class Y

     9,591         171,400         33,655         542,517   

Class R5

     13,878         246,478         38,004         609,207   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     92,456         1,764,579         267,381         4,592,844   

Class B

     (106,091 )       (1,764,579 )       (323,642 )       (4,592,844 ) 

Reacquired:(b)

           

Class A

     (2,481,361 )       (46,147,441 )       (5,084,143 )       (87,729,030 ) 

Class B

     (140,241 )       (2,288,364 )       (173,772 )       (2,876,249 ) 

Class C

     (136,624 )       (2,239,661 )       (391,865 )       (5,893,196 ) 

Class Y

     (66,269 )       (1,224,385 )       (165,677 )       (2,841,388 ) 

Class R5

     (126,918 )       (2,380,049 )       (308,651 )       (5,348,893 ) 

Net increase (decrease) in share activity

     (1,331,142 )     $ (24,680,412 )       (1,922,898 )     $ (35,210,804 ) 

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 33% 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)  Net of redemption fees of $1,482 allocated among the classes based on relative net assets of each class for the year ended October 31, 2012.

 

13                         Invesco Global Small & Mid Cap Growth Fund

NOTE 10—Financial Highlights

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(f)		     Total
return(b)		     Net assets,
end of period
(000’s omitted)		     Ratio of
expenses
to average
net assets
with fee waivers
and/or expenses
absorbed		     Ratio of
expenses
to average net
assets without
fee waivers
and/or expenses
absorbed		     Ratio of net
investment
income (loss)
to average
net assets		     Portfolio
turnover(c)		  

Class A

  

Six months ended 04/30/13

   $ 17.87      $ 0.09 (d)    $ 2.48      $ 2.57      $ (0.16 )    $ (0.25 )    $ (0.41 )    $ 20.03        14.65 %    $ 517,315        1.39 %(e)      1.40 %(e)      1.02 %(d)(e)      10 % 

Year ended 10/31/12

     17.93        0.17        1.10        1.27        (0.24 )      (1.09 )      (1.33 )      17.87        7.94        482,051        1.42        1.43        1.00        37   

Year ended 10/31/11

     18.57        0.18        (0.74 )      (0.56 )      (0.08 )      —        (0.08 )      17.93        (3.05 )      508,794        1.40        1.41        0.95        58   

Year ended 10/31/10

     14.79        0.06        3.78        3.84        (0.06 )      —        (0.06 )      18.57        26.07        589,712        1.45        1.46        0.37        39   

Year ended 10/31/09

     12.87        0.05        3.07        3.12        (0.15 )      (1.05 )      (1.20 )      14.79        28.24        521,223        1.61        1.62        0.40        54   

Year ended 10/31/08

     29.51        0.15        (13.09 )      (12.94 )      (0.10 )      (3.60 )      (3.70 )      12.87        (49.68 )      464,060        1.45        1.46        0.70        74   

Class B

                            

Six months ended 04/30/13

     15.57        0.02 (d)      2.15        2.17        (0.05 )      (0.25 )      (0.30 )      17.44        14.19        16,131        2.14 (e)      2.15 (e)      0.27 (d)(e)      10   

Year ended 10/31/12

     15.74        0.04        0.96        1.00        (0.08 )      (1.09 )      (1.17 )      15.57        7.12        17,529        2.17        2.18        0.25        37   

Year ended 10/31/11

     16.36        0.03        (0.65 )      (0.62 )      —        —        —        15.74        (3.79 )      23,124        2.15        2.16        0.20        58   

Year ended 10/31/10

     13.07        (0.05 )      3.34        3.29        —        —        —        16.36        25.17        34,439        2.20        2.21        (0.38 )      39   

Year ended 10/31/09

     11.43        (0.04 )      2.73        2.69        —        (1.05 )      (1.05 )      13.07        27.33        38,709        2.36        2.37        (0.35 )      54   

Year ended 10/31/08

     26.73        (0.01 )      (11.69 )      (11.70 )      —        (3.60 )      (3.60 )      11.43        (50.07 )      44,392        2.20        2.21        (0.05 )      74   

Class C

  

Six months ended 04/30/13

     15.58        0.02 (d)      2.16        2.18        (0.05 )      (0.25 )      (0.30 )      17.46        14.24        25,615        2.14 (e)      2.15 (e)      0.27 (d)(e)      10   

Year ended 10/31/12

     15.75        0.04        0.96        1.00        (0.08 )      (1.09 )      (1.17 )      15.58        7.11        22,401        2.17        2.18        0.25        37   

Year ended 10/31/11

     16.37        0.03        (0.65 )      (0.62 )      —        —        —        15.75        (3.79 )      23,368        2.15        2.16        0.20        58   

Year ended 10/31/10

     13.08        (0.05 )      3.34        3.29        —        —        —        16.37        25.15        26,369        2.20        2.21        (0.38 )      39   

Year ended 10/31/09

     11.43        (0.04 )      2.74        2.70        —        (1.05 )      (1.05 )      13.08        27.41        20,802        2.36        2.37        (0.35 )      54   

Year ended 10/31/08

     26.74        (0.01 )      (11.70 )      (11.71 )      —        (3.60 )      (3.60 )      11.43        (50.09 )      19,690        2.20        2.21        (0.05 )      74   

Class Y

  

Six months ended 04/30/13

     17.92        0.12 (d)      2.48        2.60        (0.20 )      (0.25 )      (0.45 )      20.07        14.80        8,850        1.14 (e)      1.15 (e)      1.27 (d)(e)      10   

Year ended 10/31/12

     18.00        0.22        1.09        1.31        (0.30 )      (1.09 )      (1.39 )      17.92        8.18        7,406        1.17        1.18        1.25        37   

Year ended 10/31/11

     18.64        0.23        (0.75 )      (0.52 )      (0.12 )      —        (0.12 )      18.00        (2.81 )      7,589        1.15        1.16        1.20        58   

Year ended 10/31/10

     14.84        0.10        3.80        3.90        (0.10 )      —        (0.10 )      18.64        26.38        7,944        1.20        1.21        0.62        39   

Year ended 10/31/09

     12.87        0.09        3.09        3.18        (0.16 )      (1.05 )      (1.21 )      14.84        28.70        4,715        1.36        1.37        0.65        54   

Year ended 10/31/08(g)

     15.38        0.01        (2.52 )      (2.51 )      —        —        —        12.87        (16.32 )      1,580        1.24 (h)      1.26 (h)      0.91 (h)      74   

Class R5

  

Six months ended 04/30/13

     17.85        0.14 (d)      2.46        2.60        (0.23 )      (0.25 )      (0.48 )      19.97        14.91        22,128        0.94 (e)      0.95 (e)      1.47 (d)(e)      10   

Year ended 10/31/12

     17.95        0.25        1.10        1.35        (0.36 )      (1.09 )      (1.45 )      17.85        8.46        20,481        0.94        0.95        1.48        37   

Year ended 10/31/11

     18.59        0.27        (0.74 )      (0.47 )      (0.17 )      —        (0.17 )      17.95        (2.57 )      22,918        0.91        0.92        1.44        58   

Year ended 10/31/10

     14.81        0.15        3.78        3.93        (0.15 )      —        (0.15 )      18.59        26.72        27,683        0.92        0.93        0.90        39   

Year ended 10/31/09

     12.93        0.13        3.07        3.20        (0.27 )      (1.05 )      (1.32 )      14.81        29.20        23,859        0.96        0.97        1.05        54   

Year ended 10/31/08

     29.53        0.23        (13.12 )      (12.89 )      (0.11 )      (3.60 )      (3.71 )      12.93        (49.46 )      17,593        0.93        0.94        1.22        74   

 

(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)  Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets include significant dividends received during the period. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.04 and 0.42%, $(0.03) and (0.33)%, $(0.03) and (0.33)%, $0.06 and 0.67% and $0.08 and 0.87% for Class A, Class B, Class C, Class Y and Class R5 shares, respectively.
(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $494,960, $17,027, $23,921, $7,777 and $21,233 for Class A, Class B, Class C, Class Y and Class R5 shares, respectively.
(f)  Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share, for fiscal years prior to October 31, 2012.
(g)  Commencement date of October 3, 2008 for Class Y shares.
(h)  Annualized.

 

14                         Invesco Global Small & Mid Cap Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account
Value
(11/01/12)		     ACTUAL    

HYPOTHETICAL
(5% annual return before

expenses)

     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,146.50      $ 7.40      $ 1,017.90      $ 6.95        1.39 % 
B     1,000.00        1,141.90        11.36        1,014.18        10.69        2.14   
C     1,000.00        1,142.40        11.37        1,014.18        10.69        2.14   
Y     1,000.00        1,148.00        6.07        1,019.14        5.71        1.14   
R5     1,000.00        1,149.10        5.01        1,020.13        4.71        0.94   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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.

 

15                         Invesco Global Small & Mid Cap Growth Fund

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611                        GSMG-SAR-1                  Invesco Distributors, Inc.  

 

 

 

LOGO  

Semiannual Report to Shareholders

 

    April 30, 2013
 

 

 

Invesco International Core Equity Fund

 

  Nasdaq:   
 

A:IBVAX n B: IBVBX n C: IBVCX n R: IIBRX n Y: IBVYX n Investor: IIBCX

R5: IBVIX n R6: IBVFX

 

LOGO

 

  

 

   2   Fund Performance
   4   Letters to Shareholders
   5   Schedule of Investments
   8   Financial Statements
   10   Notes to Financial Statements
   17   Financial Highlights
   18   Fund Expenses
   For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
   Unless otherwise noted, all data provided by Invesco.
   This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

Cumulative total returns, 10/31/12 to 4/30/13, 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

      13.16 % 

Class B Shares

      12.74   

Class C Shares

      12.78   

Class R Shares

      13.04   

Class Y Shares

      13.34   

Investor Class Shares

      13.16   

Class R5 Shares

      13.42   

Class R6 Shares

      13.44   

MSCI EAFE Index NDq(Broad Market/Style-Specific Index)

      16.90   

Lipper International Large-Cap Core Funds Index¡ (Peer Group Index)

      15.24   

Source(s): qInvesco, MSCI via FactSet Research Systems Inc.; ¡Lipper Inc.

The MSCI EAFE® Index ND is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return which withholds applicable taxes for non-resident investors.

The Lipper International Large-Cap Core Funds Index is an unmanaged index considered representative of international large-cap core 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.

 

 

2                         Invesco International Core Equity Fund

 

Average Annual Total Returns

As of 4/30/13, including maximum applicable sales charges

    

Class A Shares

         

Inception (3/28/02)

      4.12 % 

10 Years

      6.54   

  5 Years

      -3.35   

  1 Year

      6.68   

Class B Shares

         

Inception (3/28/02)

      4.17 % 

10 Years

      6.54   

  5 Years

      -3.34   

  1 Year

      7.17   

Class C Shares

         

Inception (2/14/00)

      1.54 % 

10 Years

      6.41   

  5 Years

      -2.99   

  1 Year

      11.19   

Class R Shares

         

Inception (11/24/03)

      5.29 % 

  5 Years

      -2.48   

  1 Year

      12.81   

Class Y Shares

         

10 Years

      7.30 % 

  5 Years

      -2.04   

  1 Year

      13.23   

Investor Class Shares

         

Inception (10/28/98)

      3.70 % 

10 Years

      7.18   

  5 Years

      -2.25   

  1 Year

      13.05   

Class R5 Shares

         

Inception (4/30/04)

      5.30 % 

  5 Years

      -1.62   

  1 Year

      13.65   

Class R6 Shares

         

10 Years

      7.22 % 

  5 Years

      -2.19   

  1 Year

      13.41   

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Investor Class shares and includes the 12b-1 fees applicable to Investor Class shares. Investor Class share performance reflects any applicable fee waivers or expense reimbursements.

    Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Investor Class shares and includes the 12b-1 fees applicable to Investor Class shares. Investor Class share performance reflects any applicable fee waivers or expense reimbursements.

 

Average Annual Total Returns

As of 3/31/13, the most recent calendar quarter end, including maximum applicable sales charges

Class A Shares

         

Inception (3/28/02)

      3.72 % 

10 Years

      6.93   

  5 Years

      -2.98   

  1 Year

      0.19   

Class B Shares

         

Inception (3/28/02)

      3.77 % 

10 Years

      6.93   

  5 Years

      -2.96   

  1 Year

      0.38   

Class C Shares

         

Inception (2/14/00)

      1.21 % 

10 Years

      6.81   

  5 Years

      -2.61   

  1 Year

      4.32   

Class R Shares

         

Inception (11/24/03)

      4.84 % 

  5 Years

      -2.09   

  1 Year

      5.96   

Class Y Shares

         

10 Years

      7.71 % 

  5 Years

      -1.64   

  1 Year

      6.44   

Investor Class Shares

         

Inception (10/28/98)

      3.39 % 

10 Years

      7.60   

  5 Years

      -1.85   

  1 Year

      6.17   

Class R5 Shares

         

Inception (4/30/04)

      4.81 % 

  5 Years

      -1.24   

  1 Year

      6.83   

Class R6 Shares

         

10 Years

      7.63 % 

  5 Years

      -1.79   

  1 Year

      6.52   

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

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares was 1.59%, 2.34%, 2.34%, 1.84%, 1.34%, 1.59%, 0.90% and 0.90%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Investor Class, 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.

    For Class C shares, had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower.

 

 

3                         Invesco International Core Equity Fund

 

Letters to Shareholders

 

LOGO

    Bruce Crockett

   

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

You can be sure your Board remains committed to doing its part in helping you along the way. In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

      Philip Taylor

   

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

    Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

    At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

n  Manage investments - Our dedicated investment professionals search the world for the

     best opportunities, and each investment team follows a clear, disciplined process to

     build portfolios and mitigate risk.

  n Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your financial adviser can build an investment portfolio designed for your individual needs and goals.
  n Connect with you - We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisers.

    If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

    All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

4                         Invesco International Core Equity Fund

Schedule of Investments

April 30, 2013

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–96.54%

  

Australia–9.65%   

Australia & New Zealand Banking Group Ltd.

     80,054       $ 2,645,688   

BHP Billiton Ltd.

     79,798         2,690,027   

Macquarie Group Ltd.

     59,031         2,402,376   

Suncorp Group Ltd.

     204,129         2,746,835   

Telstra Corp. Ltd.

     497,077         2,566,292   
               13,051,218   
Brazil–1.02%   

Banco do Brasil S.A.

     14,400         181,439   

Companhia de Saneamento de Minas Gerais-Copasa MG

     4,800         110,740   

Companhia Paranaense de Energia—Copel–Class B–Preference Shares

     11,700         208,177   

Itau Unibanco Holding S.A.–Preference Shares

     7,500         125,725   

PDG Realty S.A. Empreendimentos e Participacoes

     61,700         69,693   

Petroleo Brasileiro S.A.–ADR

     13,813         264,519   

Telefonica Brasil S.A.–Preference Shares

     7,500         198,708   

Vale S.A.–ADR

     12,616         215,607   
               1,374,608   
Canada–2.00%   

Suncor Energy, Inc.

     49,577         1,545,775   

Toronto-Dominion Bank (The)

     14,215         1,165,393   
               2,711,168   
China–1.01%   

China Agri-Industries Holdings Ltd.

     251,000         123,432   

China Communications Construction Co. Ltd.–Class H

     201,000         192,450   

China Construction Bank Corp.–Class H

     326,000         273,468   

China Mobile Ltd.

     37,500         410,513   

CNOOC Ltd.

     132,800         248,257   

KWG Property Holding Ltd.

     170,500         117,767   
               1,365,887   
Denmark–2.25%   

Danske Bank AS(a)

     90,210         1,708,153   

TDC A/S

     164,839         1,337,138   
               3,045,291   
France–11.69%   

BNP Paribas S.A.

     31,468         1,753,469   

Bouygues S.A.(b)

     73,408         2,053,258   

Cie Generale des Etablissements Michelin

     23,217         1,964,570   

Sanofi

     36,555         3,925,917   

Total S.A.–ADR

     71,784         3,606,428   

Vallourec S.A.

     52,129         2,510,317   
               15,813,959   
     Shares      Value  
Germany–4.17%   

Deutsche Lufthansa AG

     69,104       $ 1,381,531   

Muenchener Rueckversicherungs–Gesellschaft AG(b)

     6,056         1,211,923   

Porsche Automobil Holding SE–Preference Share(b)

     30,130         2,362,026   

Salzgitter AG

     17,505         685,167   
               5,640,647   
Hong Kong–4.73%   

Cheung Kong (Holdings) Ltd.

     104,000         1,565,341   

First Pacific Co. Ltd.

     72,000         100,244   

Haier Electronics Group Co. Ltd.

     60,000         107,164   

Henderson Land Development Co. Ltd.

     256,000         1,856,179   

Standard Chartered PLC

     110,016         2,769,815   
               6,398,743   
India–0.55%   

Bank of Baroda

     9,353         121,622   

Canara Bank Ltd.

     11,293         87,045   

Grasim Industries Ltd.

     3,866         211,215   

Oil and Natural Gas Corp. Ltd.

     14,530         88,219   

Tata Motors Ltd.

     42,495         234,200   
               742,301   
Indonesia–0.31%   

PT Bank Rakyat Indonesia (Persero) Tbk

     167,500         161,964   

PT Telekomunikasi Indonesia Persero Tbk

     108,000         129,813   

PT United Tractors Tbk

     68,000         123,998   
               415,775   
Italy–1.64%   

Eni S.p.A–ADR(b)

     46,301         2,213,651   
Japan–25.09%   

Asahi Group Holdings, Ltd.

     132,400         3,292,005   

DeNA Co., Ltd.(b)

     88,400         2,519,885   

East Japan Railway Co.

     19,100         1,616,058   

JSR Corp.

     59,900         1,378,149   

Komatsu Ltd.

     51,700         1,412,935   

Mitsubishi Corp.

     91,800         1,648,526   

Mitsubishi UFJ Financial Group, Inc.

     560,400         3,793,000   

Nippon Telegraph & Telephone Corp.

     28,200         1,395,682   

Nippon Yusen Kabushiki Kaisha

     252,000         656,560   

Nissan Motor Co., Ltd.

     265,200         2,763,803   

Nitto Denko Corp.

     26,700         1,752,795   

NTT DoCoMo, Inc.

     791         1,306,298   

Seven & I Holdings Co., Ltd.

     57,200         2,194,358   

Shin-Etsu Chemical Co., Ltd.

     22,800         1,536,818   

Toyo Suisan Kaisha, Ltd.(b)

     57,000         1,939,098   

Toyota Motor Corp.

     42,400         2,457,614   

Yamada Denki Co., Ltd.

     47,380         2,281,763   
               33,945,347   
 

 

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

 

5                         Invesco International Core Equity Fund

     Shares      Value  
Mexico–0.16%   

America Movil S.A.B. de C.V.–Series L

     199,500       $ 213,748   
Norway–3.05%   

Statoil ASA

     43,774         1,071,831   

Yara International ASA

     65,253         3,055,234   
               4,127,065   
Poland–0.09%   

KGHM Polska Miedz S.A.

     2,723         127,929   
Russia–0.58%   

Gazprom OAO–ADR

     15,950         126,563   

Magnitogorsk Iron & Steel Works–REGS–GD(c)

     27,066         81,842   

Rosneft Oil Co.–REGS–GD(c)

     31,244         213,553   

Sberbank of Russia–ADR

     15,781         202,944   

Sistema JSFC–REGS–GD(c)

     8,580         164,031   
               788,933   
South Africa–0.50%   

Sasol Ltd.

     5,118         221,720   

Standard Bank Group Ltd.

     10,585         132,230   

Steinhoff International Holdings Ltd.(a)

     73,261         195,529   

Tiger Brands Ltd.

     4,043         125,751   
               675,230   
South Korea–1.43%   

Dongbu Insurance Co., Ltd.

     5,066         204,475   

Hyundai Department Store Co., Ltd.

     944         137,150   

Hyundai Mipo Dockyard Co., Ltd.

     1,620         158,869   

Hyundai Mobis

     1,060         240,629   

KT&G Corp.

     3,306         238,056   

POSCO

     539         154,440   

Samsung Electronics Co., Ltd.

     341         470,652   

Shinhan Financial Group Co., Ltd.

     5,657         195,710   

SK Telecom Co., Ltd.

     777         136,523   
               1,936,504   
Spain–2.26%   

Iberdrola S.A.

     252,309         1,363,249   

Telefonica S.A.

     116,026         1,697,783   
               3,061,032   
Switzerland–9.34%   

ABB Ltd.

     89,233         2,024,987   

Actelion Ltd.

     21,816         1,333,878   

Credit Suisse Group AG

     72,583         2,020,195   

Swisscom AG

     8,217         3,872,055   

Zurich Insurance Group AG

     12,095         3,380,971   
               12,632,086   
     Shares      Value  
Taiwan–0.47%   

Hon Hai Precision Industry Co., Ltd.

     75,000       $ 193,466   

TPK Holding Co. Ltd.

     9,000         182,767   

Unimicron Technology Corp.

     137,000         144,397   

Wistron Corp.

     115,450         117,052   
               637,682   
Thailand–0.27%   

Bangkok Bank PCL–NVDR

     24,300         188,070   

PTT PCL

     16,400         180,944   
               369,014   
Turkey–0.12%   

Asya Katilim Bankasi AS(a)

     133,671         162,401   
United Arab Emirates–0.16%   

Dragon Oil PLC

     22,179         218,087   
United Kingdom–14.00%   

AstraZeneca PLC

     32,541         1,689,607   

Barclays PLC

     637,682         2,833,540   

GlaxoSmithKline PLC

     107,917         2,783,633   

Imperial Tobacco Group PLC

     96,550         3,452,538   

National Grid PLC

     192,015         2,447,135   

Rio Tinto PLC

     37,826         1,715,173   

Royal Dutch Shell PLC–ADR

     31,921         2,169,670   

Tesco PLC

     324,445         1,845,370   
               18,936,666   

Total Common Stocks & Other Equity Interests
(Cost $122,393,964)

   

      130,604,972   

Money Market Funds–0.54%

  

Liquid Assets Portfolio–Institutional Class(d)

     361,940         361,940   

Premier Portfolio–Institutional Class(d)

     361,940         361,940   

Total Money Market Funds
(Cost $723,880)

   

      723,880   

TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–97.08% (Cost $123,117,844)

    

      131,328,852   

Investments Purchased with Cash
Collateral from Securities on Loan–5.27%

   

Liquid Assets Portfolio—Institutional Class (Cost $7,124,948)(d)(e)

     7,124,948         7,124,948   

TOTAL INVESTMENTS–102.35%
(Cost $130,242,792)

   

      138,453,800   

OTHER ASSETS LESS LIABILITIES–(2.35)%

  

      (3,170,347 ) 

NET ASSETS–100.00%

  

    $ 135,283,453   
 

 

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

 

6                         Invesco International Core Equity Fund

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

GDR  

– Global Depositary Receipt

NVDR  

– Non-Voting Depositary Receipt

REGS  

– Regulation S

Notes to Schedule of Investments:

 

(a)  Non-income producing security.
(b)  All or a portion of this security was out on loan at April 30, 2013.
(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 April 30, 2013 was $459,426, which represented less than 1% of the Fund’s Net Assets.
(d)  The money market fund and the Fund are affiliated by having the same investment adviser.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J.

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2013

 

Financials

     25.1 % 

Industrials

     10.2   

Materials

     10.1   

Telecommunication Services

     9.9   

Consumer Staples

     9.8   

Consumer Discretionary

     9.5   

Energy

     9.0   

Health Care

     7.2   

Utilities

     3.0   

Information Technology

     2.7   

Money Market Funds Plus Other Assets Less Liabilities

     3.5   

 

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

 

7                         Invesco International Core Equity Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

 

 

Assets:

  

Investments, at value (Cost $122,393,964)*

   $ 130,604,972   

Investments in affiliated money market funds, at value and cost

     7,848,828   

Total investments, at value (Cost $130,242,792)

     138,453,800   

Receivable for:

  

Investments sold

     3,200,211   

Fund shares sold

     16,470   

Dividends

     1,053,510   

Investment for trustee deferred compensation and retirement plans

     50,700   

Other assets

     61,368   

Total assets

     142,836,059   

Liabilities:

  

Payable for:

  

Fund shares reacquired

     139,514   

Amount due custodian

     47,233   

Collateral upon return of securities loaned

     7,124,948   

Accrued fees to affiliates

     75,969   

Accrued trustees’ and officers’ fees and benefits

     5,447   

Accrued other operating expenses

     55,619   

Trustee deferred compensation and retirement plans

     103,876   

Total liabilities

     7,552,606   

Net assets applicable to shares outstanding

   $ 135,283,453   

Net assets consist of:

  

Shares of beneficial interest

   $ 175,149,597   

Undistributed net investment income

     829,350   

Undistributed net realized gain (loss)

     (48,935,630 ) 

Unrealized appreciation

     8,240,136   
    $ 135,283,453   

Net Assets:

  

Class A

   $   41,650,482   

Class B

   $ 2,720,717   

Class C

   $ 11,985,208   

Class R

   $ 2,006,827   

Class Y

   $ 1,196,698   

Investor Class

   $ 14,878,111   

Class R5

   $ 3,091,516   

Class R6

   $ 57,753,894   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     3,798,064   

Class B

     246,890   

Class C

     1,117,074   

Class R

     182,480   

Class Y

     107,431   

Investor Class

     1,335,811   

Class R5

     282,648   

Class R6

     5,284,225   

Class A:

  

Net asset value per share

   $ 10.97   

Maximum offering price per share

  

(Net asset value of $10.97 ¸ 94.50%)

   $ 11.61   

Class B:

  

Net asset value and offering price per share

   $ 11.02   

Class C:

  

Net asset value and offering price per share

   $ 10.73   

Class R:

  

Net asset value and offering price per share

   $ 11.00   

Class Y:

  

Net asset value and offering price per share

   $ 11.14   

Investor Class:

  

Net asset value and offering price per share

   $ 11.14   

Class R5:

  

Net asset value and offering price per share

   $ 10.94   

Class R6:

  

Net asset value and offering price per share

   $ 10.93   

 

* At April 30, 2013, securities with an aggregate value of $6,769,280 were on loan to brokers.
 

 

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

 

8                         Invesco International Core Equity Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $167,424)

   $ 2,810,515   

Dividends from affiliated money market funds (includes securities lending income of $22,584)

     24,479   

Total investment income

     2,834,994   

Expenses:

  

Advisory fees

     800,913   

Administrative services fees

     24,795   

Custodian fees

     49,317   

Distribution fees:

  

Class A

     50,169   

Class B

     14,779   

Class C

     59,154   

Class R

     5,081   

Investor Class

     18,093   

Transfer agent fees — A, B, C, R, Y and Investor

     136,672   

Transfer agent fees — R5

     798   

Transfer agent fees — R6

     563   

Trustees’ and officers’ fees and benefits

     18,508   

Other

     117,707   

Total expenses

     1,296,549   

Less: Fees waived and expense offset arrangement(s)

     (3,049 ) 

Net expenses

     1,293,500   

Net investment income

     1,541,494   

Realized and unrealized gain from:

  

Net realized gain (loss) from:

  

Investment securities (Net of foreign taxes of $46,298)

     35,306,386   

Foreign currencies

     (85,389 ) 
      35,220,997   

Change in net unrealized appreciation (depreciation) of:

  

Investment securities (net of foreign taxes on holdings of $30,899)

     (4,128,835 ) 

Foreign currencies

     5,563   
      (4,123,272 ) 

Net realized and unrealized gain

     31,097,725   

Net increase in net assets resulting from operations

   $ 32,639,219   

 

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

 

9                         Invesco International Core Equity Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the year ended October 31, 2012

(Unaudited)

 

     April 30,
2013		      October 31,
2012		  

Operations:

  

   

Net investment income

   $ 1,541,494       $ 6,546,284   

Net realized gain (loss)

     35,220,997         (9,630,124 ) 

Change in net unrealized appreciation (depreciation)

     (4,123,272 )       9,253,160   

Net increase in net assets resulting from operations

     32,639,219         6,169,320   

Distributions to shareholders from net investment income:

     

Class A

     (710,340 )       (1,194,907 ) 

Class B

     (30,084 )       (85,504 ) 

Class C

     (118,668 )       (295,545 ) 

Class R

     (31,854 )       (71,058 ) 

Class Y

     (28,912 )       (38,444 ) 

Investor Class

     (255,658 )       (428,804 ) 

Class R5

     (197,847 )       (7,206,076 ) 

Class R6

     (5,230,104 )       —   

Total distributions from net investment income

     (6,603,467 )       (9,320,338 ) 

Share transactions–net:

     

Class A

     (1,654,958 )       (4,194,169 ) 

Class B

     (692,649 )       (1,465,367 ) 

Class C

     (1,205,061 )       (3,368,728 ) 

Class R

     (229,773 )       (826,663 ) 

Class Y

     (357,524 )       87,877   

Investor Class

     (844,375 )       (1,507,656 ) 

Class R5

     (5,232,563 )       (202,598,493 ) 

Class R6

     (163,656,762 )       207,367,842   

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

     (173,873,665 )       (6,505,357 ) 

Net increase (decrease) in net assets

     (147,837,913 )       (9,656,375 ) 

Net assets:

     

Beginning of period

     283,121,366         292,777,741   

End of period (includes undistributed net investment income of $829,350 and $5,891,323, respectively)

   $ 135,283,453       $ 283,121,366   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco International Core Equity Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

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

The Fund currently consists of eight different classes of shares: Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6. Investor Class shares of the Fund are offered only to certain grandfathered investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class 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. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B

 

10                         Invesco International Core Equity Fund

shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

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

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

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

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

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

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

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

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

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

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

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

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

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

C.

Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer

 

11                         Invesco International Core Equity Fund

  derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Distributions — Distributions from income and net realized capital gain, if any, are generally 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, necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. 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. Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund eliminated the 2% redemption fee assessed on shares of the Fund redeemed or exchanged within 31 days of purchase.
J. Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
K. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

L.

Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund

 

12                         Invesco International Core Equity Fund

  owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate

First $500 million

     0 .75%   

Next $500 million

     0 .65%   

From $1 billion

     0 .55%   

From $2 billion

     0 .45%   

From $4 billion

     0 .40%   

From $6 billion

     0 .375%   

Over $8 billion

     0 .35%     

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

The Adviser has contractually agreed, through at least June 30, 2014, 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 B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares to 2.25%, 3.00%, 3.00%, 2.50%, 2.00%, 2.25%, 2.00% and 2.00%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2014. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

Further, the Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees of $2,526.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, 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 B, 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 B, Class C, Class R and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares, 0.50% of the average daily net assets of Class R shares and 0.25% of the average daily net assets of Investor Class shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $4,073 in front-end sales commissions from the sale of Class A shares and $91, $2,719 and $443 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

 

13                         Invesco International Core Equity 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

During the six months ended April 30, 2013, there were transfers from Level 1 to Level 2 of $44,784,990 and from Level 2 to Level 1 of $22,870,203, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ 5,313,127         $ 7,738,091         $ —         $ 13,051,218   

Brazil

     1,374,608           —           —           1,374,608   

Canada

     2,711,168           —           —           2,711,168   

China

     720,730           645,157           —           1,365,887   

Denmark

     1,337,138           1,708,153           —           3,045,291   

France

     5,359,897           10,454,062           —           15,813,959   

Germany

     2,066,698           3,573,949           —           5,640,647   

Hong Kong

     1,672,505           4,726,238           —           6,398,743   

India

     175,264           567,037           —           742,301   

Indonesia

     253,811           161,964           —           415,775   

Italy

     2,213,651           —           —           2,213,651   

Japan

     19,541,298           14,404,049           —           33,945,347   

Mexico

     213,748           —           —           213,748   

Norway

     3,055,234           1,071,831           —           4,127,065   

Poland

     —           127,929           —           127,929   

Russia

     543,060           245,873           —           788,933   

South Africa

     453,510           221,720           —           675,230   

South Korea

     1,782,064           154,440           —           1,936,504   

Spain

     —           3,061,032           —           3,061,032   

Switzerland

     1,333,878           11,298,208           —           12,632,086   

Taiwan

     310,518           327,164           —           637,682   

Thailand

     —           369,014           —           369,014   

Turkey

     —           162,401           —           162,401   

United Arab Emirates

     218,087           —           —           218,087   

United Kingdom

     13,036,993           5,899,673           —           18,936,666   

United States

     7,848,828           —           —           7,848,828   

Total Investments

   $ 71,535,815         $ 66,917,985         $ —         $ 138,453,800   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2013, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $523.

 

14                         Invesco International Core Equity Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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 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 generally accepted accounting principles. 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 Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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 October 31, 2012, which expires as follows:

 

Capital Loss Carryforward*  
Expiration   Short-Term        Long-Term        Total  

October 31, 2016

   $ 11,926,757         $ —         $ 11,926,757   

October 31, 2017

     59,517,145           —           59,517,145   

Not subject to expiration

     4,399,528           5,453,768           9,853,296   
    $ 75,843,430         $ 5,453,768         $ 81,297,198   

 

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $19,558,888 and $199,501,445, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 19,020,415   

Aggregate unrealized (depreciation) of investment securities

     (13,668,837 ) 

Net unrealized appreciation of investment securities

   $ 5,351,578   

Cost of investments for tax purposes is $133,102,222.

 

15                         Invesco International Core Equity Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2013(a)		      Year ended
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     289,189       $ 3,020,126         575,295       $ 5,527,199   

Class B

     11,875         125,009         28,628         282,638   

Class C

     102,004         1,044,451         105,635         996,063   

Class R

     31,063         326,502         70,699         677,226   

Class Y

     24,922         263,204         42,853         425,170   

Investor Class

     33,372         356,679         64,957         636,710   

Class R5

     4,760         49,619         3,199,332         29,178,405   

Class R6(b)

     227,894         2,370,522         20,951,195         210,629,278   

Issued as reinvestment of dividends:

           

Class A

     67,198         679,375         124,973         1,180,999   

Class B

     2,866         29,203         8,828         83,953   

Class C

     10,612         105,270         29,526         273,705   

Class R

     3,138         31,854         7,496         71,058   

Class Y

     2,676         27,450         3,796         36,365   

Investor Class

     24,114         247,647         43,718         419,256   

Class R5

     19,646         197,834         765,787         7,206,058   

Class R6

     519,891         5,230,104         —         —   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     32,829         346,194         106,817         1,021,343   

Class B

     (32,657 )       (346,194 )       (106,504 )       (1,021,343 ) 

Reacquired:(c)

           

Class A

     (547,501 )       (5,700,653 )       (1,241,662 )       (11,923,710 ) 

Class B

     (47,689 )       (500,667 )       (83,859 )       (810,615 ) 

Class C

     (232,915 )       (2,354,782 )       (498,561 )       (4,638,496 ) 

Class R

     (55,867 )       (588,129 )       (162,168 )       (1,574,947 ) 

Class Y

     (60,817 )       (648,178 )       (38,980 )       (373,658 ) 

Investor Class

     (136,845 )       (1,448,701 )       (268,692 )       (2,563,622 ) 

Class R5

     (516,071 )       (5,480,016 )       (23,944,212 )       (238,982,956 ) 

Class R6

     (16,085,143 )       (171,257,388 )       (329,612 )       (3,261,436 ) 

Net increase (decrease) in share activity

     (16,307,456 )     $ (173,873,665 )       (544,715 )     $ (6,505,357 ) 

 

(a)  There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 6% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by this entity is also owned beneficially.
         In addition, 45% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are mutual funds that are advised by Invesco.
(b)  Commencement date of September 24, 2012.
(c) Net of redemption fees of $131 allocated among the classes based on relative net assets of each class for the year ended October 31, 2012.

 

16                         Invesco International Core Equity Fund

NOTE 10—Financial Highlights

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(b)		     Total
return(c)		     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(d)		  

Class A

  

Six months ended 04/30/13

   $ 9.87      $ 0.05      $ 1.23      $ 1.28      $ (0.18 )    $ —      $ (0.18 )    $ 10.97        13.16 %    $ 41,650        1.57 %(e)      1.57 %(e)      1.08 %(e)      10 % 

Year ended 10/31/12

     10.02        0.18        (0.05 )      0.13        (0.28 )      —        (0.28 )      9.87        1.40        39,044        1.59        1.59        1.86        20   

Year ended 10/31/11

     10.96        0.30        (1.11 )      (0.81 )      (0.13 )      —        (0.13 )      10.02        (7.46 )      43,983        1.54        1.54        2.71        26   

Year ended 10/31/10

     10.34        0.17        0.62        0.79        (0.17 )      —        (0.17 )      10.96        7.68        40,422        1.51        1.51        1.59        39   

Year ended 10/31/09

     8.63        0.14        1.87        2.01        (0.30 )      —        (0.30 )      10.34        24.35        61,810        1.62        1.62        1.63        43   

Year ended 10/31/08

     16.77        0.28        (7.01 )      (6.73 )      (0.18 )      (1.23 )      (1.41 )      8.63        (43.45 )      45,100        1.45        1.45        2.13        38   

Class B

                            

Six months ended 04/30/13

     9.87        0.02        1.23        1.25        (0.10 )      —        (0.10 )      11.02        12.74        2,721        2.32 (e)      2.32 (e)      0.33 (e)      10   

Year ended 10/31/12

     10.00        0.11        (0.05 )      0.06        (0.19 )      —        (0.19 )      9.87        0.67        3,085        2.34        2.34        1.11        20   

Year ended 10/31/11

     10.92        0.22        (1.11 )      (0.89 )      (0.03 )      —        (0.03 )      10.00        (8.16 )      4,654        2.29        2.29        1.96        26   

Year ended 10/31/10

     10.30        0.09        0.62        0.71        (0.09 )      —        (0.09 )      10.92        6.88        6,906        2.26        2.26        0.84        39   

Year ended 10/31/09

     8.54        0.08        1.86        1.94        (0.18 )      —        (0.18 )      10.30        23.26        9,864        2.37        2.37        0.88        43   

Year ended 10/31/08

     16.58        0.18        (6.93 )      (6.75 )      (0.06 )      (1.23 )      (1.29 )      8.54        (43.79 )      10,873        2.20        2.20        1.38        38   

Class C

                            

Six months ended 04/30/13

     9.61        0.02        1.20        1.22        (0.10 )      —        (0.10 )      10.73        12.78        11,985        2.32 (e)      2.32 (e)      0.33 (e)      10   

Year ended 10/31/12

     9.74        0.11        (0.05 )      0.06        (0.19 )      —        (0.19 )      9.61        0.69        11,896        2.34        2.34        1.11        20   

Year ended 10/31/11

     10.65        0.21        (1.09 )      (0.88 )      (0.03 )      —        (0.03 )      9.74        (8.28 )      15,597        2.29        2.29        1.96        26   

Year ended 10/31/10

     10.04        0.09        0.61        0.70        (0.09 )      —        (0.09 )      10.65        6.96        20,110        2.26        2.26        0.84        39   

Year ended 10/31/09

     8.33        0.07        1.82        1.89        (0.18 )      —        (0.18 )      10.04        23.25        22,854        2.37        2.37        0.88        43   

Year ended 10/31/08

     16.21        0.18        (6.77 )      (6.59 )      (0.06 )      (1.23 )      (1.29 )      8.33        (43.80 )      21,323        2.20        2.20        1.38        38   

Class R

                            

Six months ended 04/30/13

     9.88        0.05        1.23        1.28        (0.16 )      —        (0.16 )      11.00        13.04        2,007        1.82 (e)      1.82 (e)      0.83 (e)      10   

Year ended 10/31/12

     10.01        0.15        (0.03 )      0.12        (0.25 )      —        (0.25 )      9.88        1.29        2,016        1.84        1.84        1.61        20   

Year ended 10/31/11

     10.95        0.27        (1.11 )      (0.84 )      (0.10 )      —        (0.10 )      10.01        (7.76 )      2,885        1.79        1.79        2.46        26   

Year ended 10/31/10

     10.33        0.14        0.62        0.76        (0.14 )      —        (0.14 )      10.95        7.41        3,028        1.76        1.76        1.34        39   

Year ended 10/31/09

     8.61        0.12        1.86        1.98        (0.26 )      —        (0.26 )      10.33        23.88        2,697        1.87        1.87        1.38        43   

Year ended 10/31/08

     16.72        0.24        (6.98 )      (6.74 )      (0.14 )      (1.23 )      (1.37 )      8.61        (43.55 )      2,077        1.70        1.70        1.88        38   

Class Y

                            

Six months ended 04/30/13

     10.03        0.07        1.25        1.32        (0.21 )      —        (0.21 )      11.14        13.34        1,197        1.32 (e)      1.32 (e)      1.33 (e)      10   

Year ended 10/31/12

     10.18        0.21        (0.05 )      0.16        (0.31 )      —        (0.31 )      10.03        1.67        1,411        1.34        1.34        2.11        20   

Year ended 10/31/11

     11.14        0.33        (1.12 )      (0.79 )      (0.17 )      —        (0.17 )      10.18        (7.23 )      1,354        1.29        1.29        2.96        26   

Year ended 10/31/10

     10.51        0.19        0.64        0.83        (0.20 )      —        (0.20 )      11.14        7.91        1,839        1.26        1.26        1.84        39   

Year ended 10/31/09

     8.75        0.18        1.88        2.06        (0.30 )      —        (0.30 )      10.51        24.61        1,983        1.37        1.37        1.88        43   

Year ended 10/31/08(f)

     10.45        0.01        (1.71 )      (1.70 )      —        —        —        8.75        (16.27 )      185        1.30 (g)      1.30 (g)      2.28 (g)      38   

Investor Class

                            

Six months ended 04/30/13

     10.02        0.05        1.25        1.30        (0.18 )      —        (0.18 )      11.14        13.16        14,878        1.57 (e)      1.57 (e)      1.08 (e)      10   

Year ended 10/31/12

     10.16        0.18        (0.04 )      0.14        (0.28 )      —        (0.28 )      10.02        1.48        14,181        1.59        1.59        1.86        20   

Year ended 10/31/11

     11.12        0.30        (1.13 )      (0.83 )      (0.13 )      —        (0.13 )      10.16        (7.53 )      16,009        1.54        1.54        2.71        26   

Year ended 10/31/10

     10.49        0.17        0.63        0.80        (0.17 )      —        (0.17 )      11.12        7.67        19,438        1.51        1.51        1.59        39   

Year ended 10/31/09

     8.75        0.14        1.90        2.04        (0.30 )      —        (0.30 )      10.49        24.35        21,500        1.62        1.62        1.63        43   

Year ended 10/31/08

     16.98        0.28        (7.10 )      (6.82 )      (0.18 )      (1.23 )      (1.41 )      8.75        (43.44 )      19,710        1.45        1.45        2.13        38   

Class R5

                            

Six months ended 04/30/13

     9.89        0.09        1.22        1.31        (0.26 )      —        (0.26 )      10.94        13.42        3,092        0.98 (e)      0.98 (e)      1.67 (e)      10   

Year ended 10/31/12

     10.04        0.24        (0.04 )      0.20        (0.35 )      —        (0.35 )      9.89        2.15        7,656        0.90        0.90        2.55        20   

Year ended 10/31/11

     10.99        0.37        (1.11 )      (0.74 )      (0.21 )      —        (0.21 )      10.04        (6.85 )      208,295        0.91        0.91        3.34        26   

Year ended 10/31/10

     10.37        0.23        0.63        0.86        (0.24 )      —        (0.24 )      10.99        8.35        228,027        0.91        0.91        2.19        39   

Year ended 10/31/09

     8.70        0.20        1.86        2.06        (0.39 )      —        (0.39 )      10.37        25.10        241,432        0.94        0.94        2.31        43   

Year ended 10/31/08

     16.89        0.35        (7.05 )      (6.70 )      (0.26 )      (1.23 )      (1.49 )      8.70        (43.08 )      209,494        0.87        0.87        2.71        38   

Class R6

                            

Six months ended 04/30/13

     9.88        0.08        1.23        1.31        (0.26 )      —        (0.26 )      10.93        13.44        57,754        0.95 (e)      0.95 (e)      1.70 (e)      10   

Year ended 10/31/12(f)

     10.05        0.03        (0.20 )      (0.17 )      —        —        —        9.88        (1.69 )      203,831        0.87 (g)      0.87 (g)      2.58 (g)      20   

 

(a)  Calculated using average shares outstanding.
(b) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share for fiscal years prior to October 31, 2012.
(c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(e) Ratios are annualized and based on average daily net assets (000’s omitted) of $40,468, $2,980, $11,929, $2,049, $1,313, $14,594, $5,641 and $136,372 for Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares, respectively.
(f) Commencement date of October 3, 2008 and September 24, 2012 for Class Y and Class R6 shares, respectively.
(g) Annualized.

 

17                         Invesco International Core Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account Value
(11/01/12)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,131.60      $ 8.30      $ 1,017.01      $ 7.85        1.57 % 
B     1,000.00        1,127.40        12.24        1,013.29        11.58        2.32   
C     1,000.00        1,127.80        12.24        1,013.29        11.58        2.32   
R     1,000.00        1,130.40        9.61        1,015.77        9.10        1.82   
Y     1,000.00        1,133.40        6.98        1,018.25        6.61        1.32   
Investor     1,000.00        1,131.60        8.30        1,017.01        7.85        1.57   
R5     1,000.00        1,134.20        5.19        1,019.93        4.91        0.98   
R6     1,000.00        1,134.40        5.03        1,020.08        4.76        0.95   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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 International Core Equity Fund

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611

    I-ICE-SAR-1    Invesco Distributors, Inc.

 

 

LOGO  

Semiannual Report to Shareholders

 

    April 30, 2013
 

 

 

Invesco International Growth Fund

 

  Nasdaq:   
  A: AIIEX n B: AIEBX n C: AIECX n R: AIERX n Y: AIIYX n R5: AIEVX n R6: IGFRX

 

LOGO

 

  

 

   2   Fund Performance
   4   Letters to Shareholders
   5   Schedule of Investments
   7   Financial Statements
   9   Notes to Financial Statements
   16   Financial Highlights
   17   Fund Expenses
   For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
   Unless otherwise noted, all data provided by Invesco.
   This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

 

Fund vs. Indexes

Cumulative total returns, 10/31/12 to 4/30/13, 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 S hares

      9.65 % 

Class B Shares

      9.22   

Class C Shares

      9.25   

Class R Shares

      9.53   

Class Y Shares

      9.77   

Class R5 Shares

      9.86   

Class R6 Shares

      9.88   

MSCI EAFE Index NDq(Broad Market Index)

      16.90   

Custom International Growth Indexq(Style-Specific Index)*

      15.03   

MSCI EAFE Growth Index NDq(Former Style-Specific Index)*

      17.20   

Lipper International Multi-Cap Growth Funds Index¡ (Peer Group Index)

      13.90   

Source(s): qInvesco, MSCI via FactSet Research Systems Inc.; ¡Lipper Inc.

* During the reporting period, the Fund has elected to use the Custom International Growth Index as its style-specific index rather than the MSCI EAFE Growth Index ND because the new index is more aligned with the market allocations of the Fund and therefore a more appropriate benchmark by which to measure relative allocations and performance.

The MSCI EAFE® Index ND is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return which withholds applicable taxes for non-resident investors.

The Custom International Growth Index is an index comprised of the MSCI EAFE Growth Index ND through 02/28/13 and the MSCI AC World ex US Growth Index ND thereafter.

The MSCI EAFE® Growth Index ND is an unmanaged index considered representative of growth stocks of Europe, Australasia and the Far East. The index is computed using the net return which withholds applicable taxes for non-resident investors.

The Lipper International Multi-Cap Growth Funds Index is an unmanaged index considered representative of international multi-cap growth funds tracked by Lipper.

The MSCI AC World ex US Growth Index ND is a market capitalization weighted index that includes growth companies in developed and emerging markets throughout the world, excluding the US. The index is computed using the net return which withholds applicable taxes for non-resident investors.

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.

 

 

2                         Invesco International Growth Fund

 

Average Annual Total Returns

As of 4/30/13, including maximum applicable sales charges

    

Class A Shares

         

Inception (4/7/92)

      7.72 % 

10 Years

      10.13   

  5 Years

      0.28   

  1 Year

      4.39   

Class B Shares

         

Inception (9/15/94)

      6.26 % 

10 Years

      10.10   

  5 Years

      0.27   

  1 Year

      4.60   

Class C Shares

         

Inception (8/4/97)

      4.45 % 

10 Years

      9.94   

  5 Years

      0.66   

  1 Year

      8.63   

Class R Shares

         

Inception (6/3/02)

      7.65 % 

10 Years

      10.48   

  5 Years

      1.17   

  1 Year

      10.17   

Class Y Shares

         

10 Years

      10.89 % 

  5 Years

      1.66   

  1 Year

      10.71   

Class R5 Shares

         

Inception (3/15/02)

      8.41 % 

10 Years

      11.27   

  5 Years

      1.85   

  1 Year

      10.87   

Class R6 Shares

         

10 Years

      10.78 % 

  5 Years

      1.47   

  1 Year

      10.74   

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may

 

Average Annual Total Returns

As of 3/31/13, the most recent calendar quarter end, including maximum applicable sales charges

Class A Shares

         

Inception (4/7/92)

      7.67 % 

10 Years

      10.60   

  5 Years

      0.62   

  1 Year

      2.49   

Class B Shares

         

Inception (9/15/94)

      6.20 % 

10 Years

      10.57   

  5 Years

      0.62   

  1 Year

      2.63   

Class C Shares

         

Inception (8/4/97)

      4.37 % 

10 Years

      10.41   

  5 Years

      1.01   

  1 Year

      6.66   

Class R Shares

         

Inception (6/3/02)

      7.55 % 

10 Years

      10.94   

  5 Years

      1.52   

  1 Year

      8.21   

Class Y Shares

         

10 Years

      11.35 % 

  5 Years

      2.01   

  1 Year

      8.73   

Class R5 Shares

         

Inception (3/15/02)

      8.31 % 

10 Years

      11.74   

  5 Years

      2.19   

  1 Year

      8.84   

Class R6 Shares

         

10 Years

      11.24 % 

  5 Years

      1.81   

  1 Year

      8.70   

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.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B,

Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.38%, 2.13%, 2.13%, 1.63%, 1.13%, 1.00% and 0.93%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, 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.

 

 

3                         Invesco International Growth Fund

 

Letters to Shareholders

 

LOGO

    Bruce Crockett

   

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

You can be sure your Board remains committed to doing its part in helping you along the way. In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

      Philip Taylor

   

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

    Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

    At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

n  Manage investments - Our dedicated investment professionals search the world for

     the best opportunities, and each investment team follows a clear, disciplined process to

     build portfolios and mitigate risk.

  n Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your financial adviser can build an investment portfolio designed for your individual needs and goals.
  n Connect with you - We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisers.

    If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

    All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

4                         Invesco International Growth Fund

Schedule of Investments

April 30, 2013

(Unaudited)

 

 

     Shares      Value  

Common Stocks & Other Equity Interests–90.35%

  

Australia–4.76%   

BHP Billiton Ltd.

     1,256,289       $ 42,350,071   

Brambles Ltd.

     13,394,674         121,088,175   

CSL Ltd.

     1,128,459         73,655,232   

WorleyParsons Ltd.

     2,700,429         63,745,406   
               300,838,884   
Belgium–1.62%   

Anheuser–Busch InBev N.V.

     1,069,097         102,164,061   
Brazil–2.05%   

Banco Bradesco S.A.–ADR

     7,378,010         122,401,186   

BM&FBovespa S.A.

     1,052,400         7,295,476   
               129,696,662   
Canada–8.69%   

Agrium Inc.

     536,431         49,175,504   

Canadian National Railway Co.

     544,809         53,339,797   

Canadian Natural Resources Ltd.

     973,738         28,562,595   

Cenovus Energy Inc.

     1,920,193         57,468,552   

CGI Group Inc.–Class A(a)

     3,138,873         99,394,529   

Fairfax Financial Holdings Ltd.

     161,773         64,900,296   

Potash Corp. of Saskatchewan Inc.

     1,657,450         69,759,658   

Suncor Energy, Inc.

     4,050,585         126,294,297   
               548,895,228   
China–4.98%   

Baidu, Inc.–ADR(a)

     1,169,630         100,412,736   

Belle International Holdings Ltd.

     18,267,000         29,801,191   

China Mobile Ltd.

     4,582,966         50,169,838   

CNOOC Ltd.

     34,757,093         64,975,100   

Industrial & Commercial Bank of China Ltd.–Class H

     97,596,461         68,781,681   
               314,140,546   
Denmark–0.94%   

Novo Nordisk AS–Class B

     339,117         59,485,803   
France–4.01%   

Eutelsat Communications S.A.

     1,322,125         47,804,367   

Publicis Groupe S.A.

     1,490,355         103,674,966   

Schneider Electric S.A.

     951,848         72,774,846   

Sodexo

     342,806         28,628,062   
               252,882,241   
Germany–8.20%   

Adidas AG

     1,062,377         111,022,535   

Allianz S.E.

     330,367         48,752,209   

Deutsche Boerse AG

     769,867         48,059,563   

Deutsche Post AG

     1,927,862         45,796,873   

Fresenius Medical Care AG & Co. KGaA

     816,627         56,356,083   
     Shares      Value  
Germany–(continued)   

SAP AG

     1,805,932       $ 143,442,055   

Volkswagen AG–Preference Shares

     317,256         64,303,445   
               517,732,763   
Hong Kong–2.21%   

Galaxy Entertainment Group Ltd.(a)

     15,972,090         71,639,662   

Hutchison Whampoa Ltd.

     6,229,590         67,673,669   
               139,313,331   
Ireland–0.53%   

Shire PLC

     1,076,794         33,544,821   
Israel–1.65%   

Teva Pharmaceutical Industries Ltd.–ADR

     2,725,036         104,341,628   
Japan–4.82%   

Denso Corp.

     1,146,747         51,442,828   

Fanuc Corp.

     439,612         66,409,591   

Keyence Corp.

     209,727         66,474,144   

Komatsu Ltd.

     1,229,128         33,591,449   

Toyota Motor Corp.

     1,494,630         86,632,618   
               304,550,630   
Mexico–2.57%   

America Movil S.A.B. de C.V.,
Series L–ADR

     1,819,949         38,910,510   

Fomento Economico Mexicano, S.A.B. de C.V.–ADR

     403,609         45,765,224   

Grupo Televisa S.A.B.–ADR

     3,075,375         77,868,495   
               162,544,229   
Netherlands–1.29%   

Unilever N.V.

     1,910,901         81,490,689   
Russia–0.39%   

Gazprom OAO–ADR

     3,138,123         24,901,006   
Singapore–2.19%   

Keppel Corp. Ltd.

     8,771,313         76,433,475   

Keppel REIT

     1,754,263         2,150,635   

United Overseas Bank Ltd.

     3,449,166         59,849,694   
               138,433,804   
South Korea–3.09%   

Hyundai Mobis

     348,434         79,097,505   

NHN Corp.

     253,892         68,240,622   

Samsung Electronics Co., Ltd.

     34,643         47,814,688   
               195,152,815   
Spain–1.44%   

Amadeus IT Holding S.A.–Class A

     3,072,415         90,699,396   
 

 

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

 

5                         Invesco International Growth Fund

     Shares      Value  
Sweden–4.55%   

Investment AB Kinnevik–Class B

     1,787,938       $ 46,711,919   

Investor AB–Class B

     2,626,711         77,555,940   

Swedbank AB–Class A

     2,431,222         59,965,527   

Telefonaktiebolaget LM Ericsson–Class B

     4,275,713         53,379,605   

Volvo AB–Class B

     3,575,343         49,598,946   
               287,211,937   
Switzerland–9.39%   

ABB Ltd.

     3,583,052         81,311,092   

Julius Baer Group Ltd.

     1,971,874         78,685,753   

Nestle S.A.

     1,333,282         95,213,944   

Novartis AG

     986,284         73,334,412   

Roche Holding AG

     503,465         126,047,062   

Syngenta AG

     224,417         96,097,852   

UBS AG(a)

     2,359,015         42,254,390   
               592,944,505   
Taiwan–1.12%   

Taiwan Semiconductor Manufacturing Co. Ltd.

     19,133,887         70,926,223   
Turkey–1.04%   

Akbank T.A.S.

     12,472,409         65,721,701   
United Kingdom–17.63%   

BG Group PLC

     4,991,965         84,264,434   

British American Tobacco PLC

     2,260,161         125,199,910   

British Sky Broadcasting Group PLC

     4,922,551         64,589,636   
     Shares      Value  
United Kingdom–(continued)   

Centrica PLC

     9,352,319       $ 53,975,447   

Compass Group PLC

     11,639,059         153,138,568   

Imperial Tobacco Group PLC

     2,991,825         106,984,877   

Informa PLC

     6,966,037         51,724,580   

Kingfisher PLC

     10,827,187         52,660,140   

Next PLC

     786,372         53,304,404   

Reed Elsevier PLC

     13,705,787         160,105,083   

Royal Dutch Shell PLC–Class B

     1,944,683         67,936,208   

Smith & Nephew PLC

     4,399,411         50,196,061   

WPP PLC

     5,385,732         89,016,326   
               1,113,095,674   
United States–1.19%   

Avago Technologies Ltd.

     2,346,918         75,007,499   

Total Common Stocks & Other Equity Interests
(Cost $4,213,295,322)

   

      5,705,716,076   

Money Market Funds–9.58%

  

Liquid Assets Portfolio–Institutional Class(b)

     302,476,422         302,476,422   

Premier Portfolio–Institutional Class(b)

     302,476,422         302,476,422   

Total Money Market Funds
(Cost $604,952,844)

   

      604,952,844   

TOTAL INVESTMENTS–99.93%
(Cost $4,818,248,166)

   

      6,310,668,920   

OTHER ASSETS LESS LIABILITIES–0.07%

  

      4,166,944   

NET ASSETS–100.00%

  

    $ 6,314,835,864   
 

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

REIT  

– Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a) Non-income producing security.
(b) The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2013

 

Consumer Discretionary

     21.8 % 

Information Technology

     12.9   

Financials

     12.6   

Industrials

     10.6   

Health Care

     9.1   

Consumer Staples

     8.9   

Energy

     8.2   

Materials

     4.1   

Telecommunication Services

     1.4   

Utilities

     0.9   

Money Market Funds Plus Other Assets Less Liabilities

     9.5   

 

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

 

6                         Invesco International Growth Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

Assets:

  

Investments, at value (Cost $4,213,295,322)

   $ 5,705,716,076   

Investments in affiliated money market funds, at value and cost

     604,952,844   

Total investments, at value (Cost $4,818,248,166)

     6,310,668,920   

Foreign currencies, at value (Cost $5,829,774)

     5,834,477   

Receivable for:

  

Investments sold

     4,163,812   

Fund shares sold

     12,624,832   

Dividends

     21,639,396   

Investment for trustee deferred compensation and retirement plans

     173,455   

Other assets

     137,851   

Total assets

     6,355,242,743   

Liabilities:

  

Payable for:

  

Investments purchased

     30,271,374   

Fund shares reacquired

     6,116,300   

Accrued fees to affiliates

     2,789,900   

Accrued trustees’ and officers’ fees and benefits

     8,103   

Accrued other operating expenses

     553,519   

Trustee deferred compensation and retirement plans

     667,683   

Total liabilities

     40,406,879   

Net assets applicable to shares outstanding

   $ 6,314,835,864   

Net assets consist of:

  

Shares of beneficial interest

   $ 5,087,408,932   

Undistributed net investment income

     28,467,518   

Undistributed net realized gain (loss)

     (293,614,922 ) 

Unrealized appreciation

     1,492,574,336   
    $ 6,314,835,864   

Net Assets:

  

Class A

   $ 2,357,218,486   

Class B

   $ 41,101,040   

Class C

   $ 138,654,722   

Class R

   $ 95,555,145   

Class Y

   $ 1,900,675,115   

Class R5

   $ 1,538,453,904   

Class R6

   $ 243,177,452   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     77,673,008   

Class B

     1,464,086   

Class C

     4,934,026   

Class R

     3,182,057   

Class Y

     62,480,870   

Class R5

     49,974,075   

Class R6

     7,902,211   

Class A:

  

Net asset value per share

   $ 30.35   

Maximum offering price per share

  

(Net asset value of $30.35 ¸ 94.50%)

   $ 32.12   

Class B:

  

Net asset value and offering price per share

   $ 28.07   

Class C:

  

Net asset value and offering price per share

   $ 28.10   

Class R:

  

Net asset value and offering price per share

   $ 30.03   

Class Y:

  

Net asset value and offering price per share

   $ 30.42   

Class R5:

  

Net asset value and offering price per share

   $ 30.79   

Class R6:

  

Net asset value and offering price per share

   $ 30.77   
 

 

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

 

7                         Invesco International Growth Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $6,494,015)

   $ 67,371,337   

Dividends from affiliated money market funds

     272,267   

Interest

     5,369   

Total investment income

     67,648,973   

Expenses:

  

Advisory fees

     24,658,223   

Administrative services fees

     325,107   

Custodian fees

     783,870   

Distribution fees:

  

Class A

     2,790,557   

Class B

     217,439   

Class C

     675,461   

Class R

     231,097   

Transfer agent fees — A, B, C, R and Y

     3,939,154   

Transfer agent fees — R5

     481,181   

Transfer agent fees — R6

     4,853   

Trustees’ and officers’ fees and benefits

     59,055   

Other

     467,226   

Total expenses

     34,633,223   

Less: Fees waived and expense offset arrangement(s)

     (374,988 ) 

Net expenses

     34,258,235   

Net investment income

     33,390,738   

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Investment securities

     8,694,133   

Foreign currencies

     (1,084,833 ) 
      7,609,300   

Change in net unrealized appreciation of:

  

Investment securities

     495,195,254   

Foreign currencies

     215,594   
      495,410,848   

Net realized and unrealized gain

     503,020,148   

Net increase in net assets resulting from operations

   $ 536,410,886   

 

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

 

8                         Invesco International Growth Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the year ended October 31, 2012

(Unaudited)

     April 30,
2013		      October 31,
2012		  

Operations:

  

   

Net investment income

   $ 33,390,738       $ 56,582,481   

Net realized gain

     7,609,300         65,564,918   

Change in net unrealized appreciation

     495,410,848         237,733,804   

Net increase in net assets resulting from operations

     536,410,886         359,881,203   

Distributions to shareholders from net investment income:

     

Class A

     (21,975,533 )       (24,794,919 ) 

Class B

     (188,836 )       (297,285 ) 

Class C

     (568,367 )       (754,132 ) 

Class R

     (724,598 )       (1,093,679 ) 

Class Y

     (18,141,196 )       (11,922,825 ) 

Class R5

     (17,685,492 )       (24,768,329 ) 

Class R6

     (3,042,814 )       —   

Total distributions from net investment income

     (62,326,836 )       (63,631,169 ) 

Share transactions–net:

     

Class A

     40,560,197         (42,994,301 ) 

Class B

     (7,443,579 )       (15,485,476 ) 

Class C

     (6,264,760 )       (19,800,385 ) 

Class R

     (840,928 )       (27,645,778 ) 

Class Y

     304,019,403         629,419,616   

Class R5

     136,747,689         (245,281,401 ) 

Class R6

     (1,985,895 )       229,878,780   

Net increase in net assets resulting from share transactions

     464,792,127         508,091,055   

Net increase in net assets

     938,876,177         804,341,089   

Net assets:

     

Beginning of period

     5,375,959,687         4,571,618,598   

End of period (includes undistributed net investment income of $28,467,518 and $57,403,616, respectively)

   $ 6,314,835,864       $ 5,375,959,687   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco International Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

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

The Fund currently consists of seven different classes of shares: Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

 

9                         Invesco International Growth Fund

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

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

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

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

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

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

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

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

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

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

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

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

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

C.

Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets,

 

10                         Invesco International Growth Fund

  the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Distributions — Distributions from income and net realized capital gain, if any, are generally 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, necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. 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. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

J. Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. Redemption Fees — The Fund had a 2% redemption fee that was retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, was imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee was recorded as an increase in shareholder capital and was allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund eliminated the 2% redemption fee assessed on shares of the Fund redeemed or exchanged within 31 days of purchase.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate

First $250 million

     0 .935%   

Next $250 million

     0 .91%   

Next $500 million

     0 .885%   

Next $1.5 billion

     0 .86%   

Next $2.5 billion

     0 .835%   

Next $2.5 billion

     0 .81%   

Next $2.5 billion

     0 .785%   

Over $10 billion

     0 .76%     

 

11                         Invesco International Growth 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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

The Adviser has contractually agreed, through June 30, 2013, 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 B, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.40%, 2.15%, 2.15%, 1.65%, 1.15%, 1.15% and 1.15%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver 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. The Adviser did not waive fees and/or reimburse expenses under this expense limitation.

Further, the Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees of $370,980.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, 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 B, 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 B, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $256,833 in front-end sales commissions from the sale of Class A shares and $1,358, $20,012 and $2,815 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

12                         Invesco International Growth Fund

During the six months ended April 30, 2013, there were transfers from Level 1 to Level 2 of $1,194,787,004 and from Level 2 to Level 1 of $953,689,849, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ 258,488,813         $ 42,350,071         $ —         $ 300,838,884   

Belgium

     —           102,164,061           —           102,164,061   

Brazil

     129,696,662           —           —           129,696,662   

Canada

     548,895,228           —           —           548,895,228   

China

     180,383,765           133,756,781           —           314,140,546   

Denmark

     59,485,803           —           —           59,485,803   

France

     132,303,028           120,579,213           —           252,882,241   

Germany

     360,913,355           156,819,408           —           517,732,763   

Hong Kong

     67,673,669           71,639,662           —           139,313,331   

Ireland

     —           33,544,821           —           33,544,821   

Israel

     104,341,628           —           —           104,341,628   

Japan

     66,474,144           238,076,486           —           304,550,630   

Mexico

     162,544,229           —           —           162,544,229   

Netherlands

     —           81,490,689           —           81,490,689   

Russia

     24,901,006           —           —           24,901,006   

Singapore

     2,150,635           136,283,169           —           138,433,804   

South Korea

     195,152,815           —           —           195,152,815   

Spain

     90,699,396           —           —           90,699,396   

Sweden

     100,091,524           187,120,413           —           287,211,937   

Switzerland

     95,213,944           497,730,561           —           592,944,505   

Taiwan

     70,926,223           —           —           70,926,223   

Turkey

     —           65,721,701           —           65,721,701   

United Kingdom

     682,040,668           431,055,006           —           1,113,095,674   

United States

     679,960,343           —           —           679,960,343   

Total Investments

   $ 4,012,336,878         $ 2,298,332,042         $ —         $ 6,310,668,920   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2013, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $4,008.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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 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 generally accepted accounting principles. 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.

 

13                         Invesco International Growth Fund

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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 October 31, 2012, which expires as follows:

 

Capital Loss Carryforward*  
Expiration   Short-Term        Long-Term        Total  

October 31, 2017

   $ 297,609,446         $ —         $ 297,609,446   

 

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. To the extent that unrealized gains as of May 23, 2011, the date of reorganization of Invesco Van Kampen International Advantage Fund and Invesco Van Kampen International Growth Fund into the Fund, are realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $828,154,771 and $541,342,456, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 1,538,659,032   

Aggregate unrealized (depreciation) of investment securities

     (54,090,387 ) 

Net unrealized appreciation of investment securities

   $ 1,484,568,645   

Cost of investments for tax purposes is $4,826,100,275.

 

14                         Invesco International Growth Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2013(a)		      Year ended
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     9,550,153       $ 278,547,986         16,612,668       $ 444,317,637   

Class B

     28,014         754,519         71,411         1,773,811   

Class C

     394,283         10,734,525         565,753         14,000,364   

Class R

     667,014         19,251,341         1,103,953         29,258,707   

Class Y

     15,301,823         451,059,973         35,037,135         918,964,925   

Class R5

     10,343,988         303,825,810         22,915,486         616,373,073   

Class R6(b)

     264,057         7,963,011         8,072,691         232,732,447   

Issued as reinvestment of dividends:

           

Class A

     761,301         21,575,263         884,535         22,608,705   

Class B

     7,035         184,937         11,852         281,496   

Class C

     20,481         539,065         28,863         686,093   

Class R

     25,521         716,367         42,777         1,083,548   

Class Y

     514,305         14,595,975         347,894         8,899,120   

Class R5

     544,290         15,626,550         844,709         21,844,184   

Class R6

     106,058         3,042,814         —         —   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     86,633         2,559,823         291,534         7,771,380   

Class B

     (93,593 )       (2,559,823 )       (314,740 )       (7,771,380 ) 

Reacquired:(c)

           

Class A

     (8,995,470 )       (262,122,875 )       (19,338,411 )       (517,692,023 ) 

Class B

     (216,075 )       (5,823,212 )       (393,138 )       (9,769,403 ) 

Class C

     (649,677 )       (17,538,350 )       (1,399,533 )       (34,486,842 ) 

Class R

     (720,058 )       (20,808,636 )       (2,226,283 )       (57,988,033 ) 

Class Y

     (5,544,984 )       (161,636,545 )       (11,123,652 )       (298,444,429 ) 

Class R5

     (6,205,553 )       (182,704,671 )       (32,738,845 )       (883,498,658 ) 

Class R6

     (440,532 )       (12,991,720 )       (100,063 )       (2,853,667 ) 

Net increase in share activity

     15,749,014       $ 464,792,127         19,196,596       $ 508,091,055   

 

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 46% 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) Commencement date of September 24, 2012.
(c) Net of redemption fees of $21,765 allocated among the classes based on relative net assets of each class for the year ended October 31, 2012.

 

15                         Invesco International Growth Fund

NOTE 10—Financial Highlights

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(e)		   Total
return(b)		   Net assets,
end of period
(000’s omitted)		   Ratio of
expenses
to average
net assets
with fee waivers
and/or  expenses
absorbed		   Ratio of
expenses
to average net
assets without
fee waivers
and/or  expenses
absorbed		   Ratio of net
investment
income to
average
net assets		   Portfolio
turnover(c)

Class A

  

Six months ended 04/30/13

     $ 27.96       $ 0.14       $ 2.54       $ 2.68       $ (0.29 )     $ —       $ (0.29 )     $ 30.35         9.65 %     $ 2,357,218         1.34 %(d)       1.35 %(d)       0.99 %(d)       10 %

Year ended 10/31/12

       26.43         0.26         1.59         1.85         (0.32 )       —         (0.32 )       27.96         7.13         2,132,503         1.37         1.38         0.99         21  

Year ended 10/31/11

       26.99         0.36         (0.65 )       (0.29 )       (0.27 )       —         (0.27 )       26.43         (1.10 )       2,056,979         1.38         1.39         1.29         25  

Year ended 10/31/10

       23.41         0.21         3.66         3.87         (0.29 )       —         (0.29 )       26.99         16.68         1,958,940         1.43         1.44         0.85         25  

Year ended 10/31/09

       19.04         0.24         4.52         4.76         (0.39 )       —         (0.39 )       23.41         25.65         1,734,895         1.49         1.51         1.24         26  

Year ended 10/31/08

       36.57         0.40         (15.91 )       (15.51 )       (0.18 )       (1.84 )       (2.02 )       19.04         (47.34 )       1,452,469         1.44         1.45         1.38         38  

Class B

                                                        

Six months ended 04/30/13

       25.81         0.03         2.34         2.37         (0.11 )       —         (0.11 )       28.07         9.22         41,101         2.09 (d)       2.10 (d)       0.24 (d)       10  

Year ended 10/31/12

       24.41         0.06         1.47         1.53         (0.13 )       —         (0.13 )       25.81         6.31         44,873         2.12         2.13         0.24         21  

Year ended 10/31/11

       24.95         0.14         (0.60 )       (0.46 )       (0.08 )       —         (0.08 )       24.41         (1.85 )       57,683         2.13         2.14         0.54         25  

Year ended 10/31/10

       21.68         0.02         3.40         3.42         (0.15 )       —         (0.15 )       24.95         15.83         51,950         2.18         2.19         0.10         25  

Year ended 10/31/09

       17.52         0.09         4.20         4.29         (0.13 )       —         (0.13 )       21.68         24.72         61,649         2.24         2.26         0.49         26  

Year ended 10/31/08

       33.88         0.17         (14.69 )       (14.52 )       —         (1.84 )       (1.84 )       17.52         (45.03 )       77,465         2.19         2.20         0.63         38  

Class C

                                                        

Six months ended 04/30/13

       25.83         0.03         2.35         2.38         (0.11 )       —         (0.11 )       28.10         9.25         138,655         2.09 (d)       2.10 (d)       0.24 (d)       10  

Year ended 10/31/12

       24.43         0.06         1.47         1.53         (0.13 )       —         (0.13 )       25.83         6.31         133,529         2.12         2.13         0.24         21  

Year ended 10/31/11

       24.97         0.14         (0.60 )       (0.46 )       (0.08 )       —         (0.08 )       24.43         (1.85 )       145,944         2.13         2.14         0.54         25  

Year ended 10/31/10

       21.70         0.02         3.40         3.42         (0.15 )       —         (0.15 )       24.97         15.81         142,898         2.18         2.19         0.10         25  

Year ended 10/31/09

       17.53         0.09         4.21         4.30         (0.13 )       —         (0.13 )       21.70         24.76         139,000         2.24         2.26         0.49         26  

Year ended 10/31/08

       33.91         0.17         (14.71 )       (14.54 )       —         (1.84 )       (1.84 )       17.53         (45.05 )       125,172         2.19         2.20         0.63         38  

Class R

                                                        

Six months ended 04/30/13

       27.64         0.11         2.51         2.62         (0.23 )       —         (0.23 )       30.03         9.53         95,555         1.59 (d)       1.60 (d)       0.74 (d)       10  

Year ended 10/31/12

       26.13         0.20         1.57         1.77         (0.26 )       —         (0.26 )       27.64         6.85         88,726         1.62         1.63         0.74         21  

Year ended 10/31/11

       26.70         0.28         (0.64 )       (0.36 )       (0.21 )       —         (0.21 )       26.13         (1.38 )       112,091         1.63         1.64         1.04         25  

Year ended 10/31/10

       23.18         0.15         3.62         3.77         (0.25 )       —         (0.25 )       26.70         16.36         115,237         1.68         1.69         0.60         25  

Year ended 10/31/09

       18.80         0.20         4.49         4.69         (0.31 )       —         (0.31 )       23.18         25.44         63,544         1.74         1.76         0.99         26  

Year ended 10/31/08

       36.18         0.32         (15.74 )       (15.42 )       (0.12 )       (1.84 )       (1.96 )       18.80         (44.78 )       34,821         1.69         1.70         1.13         38  

Class Y

                                                        

Six months ended 04/30/13

       28.05         0.18         2.53         2.71         (0.34 )       —         (0.34 )       30.42         9.77         1,900,675         1.09 (d)       1.10 (d)       1.24 (d)       10  

Year ended 10/31/12

       26.53         0.33         1.59         1.92         (0.40 )       —         (0.40 )       28.05         7.39         1,464,295         1.12         1.13         1.24         21  

Year ended 10/31/11

       27.08         0.42         (0.64 )       (0.22 )       (0.33 )       —         (0.33 )       26.53         (0.83 )       741,428         1.13         1.14         1.54         25  

Year ended 10/31/10

       23.48         0.27         3.67         3.94         (0.34 )       —         (0.34 )       27.08         16.94         173,313         1.18         1.19         1.10         25  

Year ended 10/31/09

       19.04         0.32         4.52         4.84         (0.40 )       —         (0.40 )       23.48         26.05         62,343         1.24         1.26         1.49         26  

Year ended 10/31/08(f)

       22.36         0.02         (3.34 )       (3.32 )       —         —         —         19.04         (14.85 )       2,537         1.25 (g)       1.27 (g)       1.57 (g)       38  

Class R5

                                                        

Six months ended 04/30/13

       28.39         0.20         2.57         2.77         (0.37 )       —         (0.37 )       30.79         9.86         1,538,454         0.96 (d)       0.97 (d)       1.37 (d)       10  

Year ended 10/31/12

       26.86         0.37         1.61         1.98         (0.45 )       —         (0.45 )       28.39         7.52         1,285,743         0.99         1.00         1.37         21  

Year ended 10/31/11

       27.41         0.48         (0.66 )       (0.18 )       (0.37 )       —         (0.37 )       26.86         (0.68 )       1,457,494         0.97         0.98         1.70         25  

Year ended 10/31/10

       23.77         0.31         3.72         4.03         (0.39 )       —         (0.39 )       27.41         17.12         1,228,916         1.02         1.03         1.26         25  

Year ended 10/31/09

       19.36         0.35         4.58         4.93         (0.52 )       —         (0.52 )       23.77         26.32         917,297         1.01         1.03         1.72         26  

Year ended 10/31/08

       37.14         0.52         (16.17 )       (15.65 )       (0.29 )       (1.84 )       (2.13 )       19.36         (44.38 )       526,647         1.03         1.04         1.79         38  

Class R6

                                                        

Six months ended 04/30/13

       28.38         0.21         2.57         2.78         (0.39 )       —         (0.39 )       30.77         9.88         243,177         0.90 (d)       0.91 (d)       1.43 (d)       10  

Year ended 10/31/12(f)

       28.83         0.04         (0.49 )       (0.45 )       —         —         —         28.38         (1.56 )       226,291         0.92 (g)       0.93 (g)       1.44 (g)       21  

 

(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 period ending October 31, 2011, the portfolio turnover calculation excludes the value of securities purchased of $690,712,747 and sold of $131,009,072 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Van Kampen International Advantage Fund and Invesco Van Kampen International Growth Fund into the Fund.
(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $2,250,947, $43,848, $136,212, $93,205, $1,661,739, $1,435,362 and $232,100 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
(e) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share for the fiscal years prior to October 31, 2012.
(f) Commencement date of October 3, 2008 and September 24, 2012 for Class Y shares and Class R6 shares, respectively.
(g)  Annualized.

 

16                         Invesco International Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account Value
(11/01/12)		     ACTUAL    

HYPOTHETICAL

(5% annual return before
expenses)

     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,096.50      $ 6.97      $ 1,018.15      $ 6.71        1.34 % 
B     1,000.00        1,092.20        10.84        1,014.43        10.44        2.09   
C     1,000.00        1,092.50        10.84        1,014.43        10.44        2.09   
R     1,000.00        1,095.30        8.26        1,016.91        7.95        1.59   
Y     1,000.00        1,097.70        5.67        1,019.39        5.46        1.09   
R5     1,000.00        1,098.60        5.00        1,020.03        4.81        0.96   
R6     1,000.00        1,098.80        4.68        1,020.33        4.51        0.90   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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 International Growth Fund

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611

    IGR-SAR-1    Invesco Distributors, Inc.

 

 

LOGO  

Semiannual Report to Shareholders

 

    April 30, 2013
 

 

 

Invesco Select Opportunities Fund

 

  Nasdaq:   
  A: IZSAX n C: IZSCX n R: IZSRX n Y: IZSYX n R5: IZSIX n R6: IZFSX

 

LOGO

 

  

 

   2   Fund Performance
   3   Letters to Shareholders
   4   Schedule of Investments
   5   Financial Statements
   7   Notes to Financial Statements
   12   Financial Highlights
   13   Fund Expenses
   For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
   Unless otherwise noted, all data provided by Invesco.
   This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

 

NOT FDIC INSURED    |    MAY LOSE VALUE    |    NO BANK GUARANTEE

 

Fund Performance

 

 

Performance summary

 

Fund vs. Indexes

Cumulative total returns, 10/31/12 to 4/30/13, 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

      15.94 % 

Class C Shares

      15.63   

Class R Shares

      15.74   

Class Y Shares

      16.13   

Class R5 Shares

      16.13   

Class R6 Shares

      16.04   

MSCI World Index NDq (Broad Market Index)

      14.67   

MSCI World Small Cap Index NDq (Style-Specific Index)

      16.37   

Lipper Global Small/Mid-Cap Funds Classification Averagen (Peer Group)

      13.07   

Source(s): qInvesco, MSCI via FactSet Research Systems Inc.; nLipper Inc.

 

The MSCI World IndexSM ND 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 MSCI World Small Cap Index ND is an unmanaged index considered representative of small-cap stocks of global developed markets. The index is computed using the net return which withholds applicable taxes for non-resident investors.

    The Lipper Global Small/Mid-Cap Funds Classification Average represents an average of all funds in the Lipper Global Small/Mid-Cap 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.

  

    

     

   

    

     

 

 

Cumulative Total Returns

As of 4/30/13, including maximum applicable sales charges

 

  

   

Class A Shares

   

Inception (8/3/12)

      16.49 % 

Class C Shares

         

Inception (8/3/12)

      21.80 % 

Class R Shares

         

Inception (8/3/12)

      23.03 % 

Class Y Shares

         

Inception (8/3/12)

      23.56 % 

Class R5 Shares

         

Inception (8/3/12)

      23.57 % 

Class R6 Shares

         

Inception

      23.47 % 

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

 

Cumulative Total Returns

As of 3/31/13, the most recent calendar quarter end, including maximum applicable sales charges

 

  

    

Class A Shares

   

Inception (8/3/12)

      14.57 % 

Class C Shares

         

Inception (8/3/12)

      19.77 % 

Class R Shares

         

Inception (8/3/12)

      21.00 % 

Class Y Shares

         

Inception (8/3/12)

      21.43 % 

Class R5 Shares

         

Inception (8/3/12)

      21.43 % 

Class R6 Shares

         

Inception

      21.43 % 

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested

 

 

distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. 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.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.51%, 2.26%, 1.76%, 1.26%, 1.26% and 1.26%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 2.76%, 3.51%, 3.01%, 2.51%, 2.39% and 2.35%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Class A share performance reflects the maximum 5.50% sales charge, and Class 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.

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

 

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 28, 2014. See current prospectus for more information.
 

 

2                         Invesco Select Opportunities Fund

 

Letters to Shareholders

 

LOGO   

Dear Fellow Shareholders:

No one likes uncertainty, especially financial markets. But even in these uncertain times, it appears that investors are still approaching the market with cautious optimism, with some taking on more risk in order to refocus on their long-term savings goals.

    Maybe this describes you, or perhaps you have been sitting on the sidelines thinking about getting back into the market, but are still a bit hesitant to act because of market uncertainty. Clearly, risk remains a primary focus for investors of all types. As Trustees of the Invesco Funds, one of our primary responsibilities is to ensure your Fund’s adviser is cognizant of the risks in each of the funds it manages. A thoughtful risk management plan may help investors navigate through market turbulence or an economic downturn. This is why we make risk management a critical element of our annual contract renewal process, like the one we complete with Invesco every year.

    You can be sure your Board remains committed to doing its part in helping you along the way.

In addition to ensuring that your Fund’s adviser is focused on the risks in the funds it manages, we also remain committed to managing fund costs and working with your Fund’s adviser to provide a compelling and diversified product offering to potentially meet your investing goals.

    Let me close by thanking Carl Frischling upon his retirement from the Invesco Funds Board for his 35 years of distinguished service and unwavering commitment to our funds’ shareholders. As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have.

    On behalf of the Board, we look forward to continuing to represent your interests and serving your investment needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO   

Dear Shareholders:

This semiannual report contains performance data for your Fund, a complete list of your Fund’s investments as of the close of the reporting period and other important information. I hope you find this report of interest.

    Timely insight and information from many of Invesco’s investment professionals is available at our website, invesco.com/us. We offer in-depth articles, video clips and audio commentaries from many of our portfolio managers and other investment professionals on a wide range of topics of interest to investors. At invesco.com/us, you also can access information about your Invesco account at any time.

    At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

     nManageinvestments - Our dedicated investment professionals search the world for the best opportunities, and each investment team follows a clear, disciplined process to build portfolios and mitigate risk.

n Provide choices - We offer equity, fixed income, asset allocation and alternative strategies so you and your financial adviser can build an investment portfolio designed for your individual needs and goals.
n Connect with you - We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisers.

    If you have a question about your account, please contact an Invesco client services representative at 800 959 4246. If you have an Invesco-related question or comment, feel free to email me directly at phil@invesco.com.

    All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

3                        Invesco Select Opportunities Fund

Schedule of Investments(a)

April 30, 2013

(Unaudited)

 

      Shares      Value  

Common Stocks–71.29%

  

Advertising–4.10%   

Ipsos (France)

      6,600       $ 221,216   
Aerospace & Defense–3.18%   

Cubic Corp.

      3,995         171,665   
Communications Equipment–3.82%   

Aastra Technologies Ltd. (Canada)

      10,978         205,960   
Data Processing & Outsourced Services–11.00%   

Alliance Data Systems Corp.(b)

      1,256         215,743   

Global Payments Inc.

      4,627         214,693   

Lender Processing Services, Inc.

      5,881         163,139   
                593,575   
Education Services–1.83%   

American Public Education Inc.(b)

      2,952         98,981   
Electrical Components & Equipment–2.28%   

Kendrion N.V. (Netherlands)

      4,998         122,893   
Electronic Equipment & Instruments–3.04%   

Hollysys Automation Technologies Ltd.
(China)(b)

      13,638         164,201   
Health Care Distributors–5.00%   

United Drug PLC (Ireland)

      57,338         269,789   
Health Care Supplies–2.92%   

Alere, Inc.(b)

      6,141         157,701   
Industrial Conglomerates–3.08%   

DCC PLC (Ireland)

      4,537         166,052   
Industrial Machinery–2.95%   

Aalberts Industries N.V. (Netherlands)

      7,100         159,347   
Insurance Brokers–2.03%   

Charles Taylor PLC (United Kingdom)

      39,867         109,615   
IT Consulting & Other Services–3.21%   

Booz Allen Hamilton Holding Corp.

      11,400         173,166   
      Shares      Value  
Leisure Products–1.07%   

MEGA Brands Inc. (Canada(b)

      3,944       $ 57,453   
Life Sciences Tools & Services–1.57%   

Biotage AB (Sweden)

      62,766         84,752   
Oil & Gas Equipment & Services–5.00%   

ION Geophysical Corp.(b)

      29,474         183,918   

Prosafe S.E. (Norway)

      8,900         85,776   
                269,694   
Oil & Gas Exploration & Production–2.89%   

Ultra Petroleum Corp.(b)

      7,279         155,771   
Property & Casualty Insurance–2.04%   

Euler Hermes S.A. (France)

      1,153         110,091   
Restaurants–1.94%   

Fairwood Holdings Ltd. (Hong Kong)

      49,000         104,566   
Semiconductors–3.87%   

International Rectifier Corp.(b)

      9,846         208,834   
Systems Software–2.99%   

Rovi Corp.(b)

      6,886         161,064   
Trading Companies & Distributors–1.48%   

Grafton Group PLC (Ireland)

      11,482         79,858   

Total Common Stocks
(Cost $3,278,294)

   

      3,846,244   

Money Market Funds–32.00%

  

   

Liquid Assets Portfolio–Institutional Class(c)

      863,021         863,021   

Premier Portfolio–Institutional Class(c)

      863,021         863,021   

Total Money Market Funds
(Cost $1,726,042)

   

      1,726,042   

TOTAL INVESTMENTS–103.29%
(Cost $5,004,336)

   

      5,572,286   

OTHER ASSETS LESS LIABILITIES–(3.29)%

  

      (177,325 ) 

NET ASSETS–100.00%

  

    $ 5,394,961   
 

Notes to Schedule of Investments:

 

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By country, based on Net Assets

as of April 30, 2013

 

United States

     35.3 % 

Ireland

     9.6   

France

     6.1   

Netherlands

     5.2   

Canada

     4.9   

China

     3.1   

United Kingdom

     2.0   

Countries each less than 2.0% of portfolio

     5.1   

Money Market Funds Plus Other Assets Less Liabilities

     28.7   

 

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

 

4                         Invesco Select Opportunities Fund

Statement of Assets and Liabilities

April 30, 2013

(Unaudited)

 

 

Assets:

  

Investments, at value (Cost $3,278,294)

   $ 3,846,244   

Investments in affiliated money market funds, at value and cost

     1,726,042   

Total investments, at value (Cost $5,004,336)

     5,572,286   

Foreign currencies, at value (Cost $15,567)

     15,549   

Receivable for:

  

Fund shares sold

     2,086   

Dividends

     14,731   

Investment for trustee deferred compensation and retirement plans

     2,624   

Other assets

     44,466   

Total assets

     5,651,742   

Liabilities:

  

Payable for:

  

Investments purchased

     211,142   

Accrued fees to affiliates

     13,521   

Accrued trustees’ and officers’ fees and benefits

     1,735   

Accrued other operating expenses

     27,759   

Trustee deferred compensation and retirement plans

     2,624   

Total liabilities

     256,781   

Net assets applicable to shares outstanding

   $ 5,394,961   

Net assets consist of:

  

Shares of beneficial interest

   $ 4,795,584   

Undistributed net investment income

     (3,701 ) 

Undistributed net realized gain

     34,960   

Unrealized appreciation

     568,118   
    $ 5,394,961   

Net Assets:

  

Class A

   $ 2,535,679   

Class C

   $ 112,390   

Class R

   $ 37,888   

Class Y

   $ 2,656,670   

Class R5

   $ 41,071   

Class R6

   $ 11,263   

Shares outstanding, $0.001 par value per share,
with an unlimited number of shares authorized:

   

Class A

     208,784   

Class C

     9,292   

Class R

     3,125   

Class Y

     218,358   

Class R5

     3,375   

Class R6

     926   

Class A:

  

Net asset value per share

   $ 12.14   

Maximum offering price per share

  

(Net asset value of $12.14 ¸ 94.50%)

   $ 12.85   

Class C:

  

Net asset value and offering price per share

   $ 12.10   

Class R:

  

Net asset value and offering price per share

   $ 12.12   

Class Y:

  

Net asset value and offering price per share

   $ 12.17   

Class R5:

  

Net asset value and offering price per share

   $ 12.17   

Class R6:

  

Net asset value and offering price per share

   $ 12.16   
 

 

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

 

5                         Invesco Select Opportunities Fund

Statement of Operations

For the six months ended April 30, 2013

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $2,152)

   $ 24,130   

Dividends from affiliated money market funds

     580   

Total investment income

     24,710   

Expenses:

  

Advisory fees

     14,326   

Administrative services fees

     24,794   

Custodian fees

     3,412   

Distribution fees:

  

Class A

     2,346   

Class C

     352   

Class R

     31   

Transfer agent fees — A, B, C, R and Y

     1,600   

Transfer agent fees — R5

     10   

Transfer agent fees — R6

     5   

Trustees’ and officers’ fees and benefits

     12,805   

Registration and filing fees

     56,729   

Professional services fees

     26,935   

Other

     12,869   

Total expenses

     156,214   

Less: Fees waived and expenses reimbursed

     (131,671 ) 

Net expenses

     24,543   

Net investment income

     167   

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Investment securities

     36,582   

Foreign currencies

     (1,237 ) 
      35,345   

Change in net unrealized appreciation of:

  

Investment securities

     453,685   

Foreign currencies

     122   
      453,807   

Net realized and unrealized gain

     489,152   

Net increase in net assets resulting from operations

   $ 489,319   

 

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

 

6                         Invesco Select Opportunities Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2013 and the year ended October 31, 2012

(Unaudited)

 

     April 30,
2013		      October 31,
2012		  

Operations:

  

   

Net investment income

   $ 167       $ 203   

Net realized gain

     35,345         9,977   

Change in net unrealized appreciation

     453,807         114,311   

Net increase in net assets resulting from operations

     489,319         124,491   

Distributions to shareholders from net investment income:

     

Class A

     (9,673 )       —   

Class C

     (244 )       —   

Class R

     (76 )       —   

Class Y

     (7,928 )       —   

Class R5

     (78 )       —   

Class R6

     (73 )       —   

Total distributions from net investment income

     (18,072 )       —   

Distributions to shareholders from net realized gains:

     

Class A

     (11,089 )       —   

Class C

     (296 )       —   

Class R

     (88 )       —   

Class Y

     (8,938 )       —   

Class R5

     (89 )       —   

Class R6

     (82 )       —   

Total distributions from net realized gains

     (20,582 )       —   

Share transactions–net:

     

Class A

     1,111,988         1,124,851   

Class C

     14,357         90,586   

Class R

     25,000         10,010   

Class Y

     1,408,357         986,510   

Class R5

     28,136         10,010   

Class R6

     —         10,000   

Net increase in net assets resulting from share transactions

     2,587,838         2,231,967   

Net increase in net assets

     3,038,503         2,356,458   

Net assets:

     

Beginning of period

     2,356,458         —   

End of period (includes undistributed net investment income of $(3,701) and $14,204, respectively)

   $ 5,394,961       $ 2,356,458   

Notes to Financial Statements

April 30, 2013

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Select Opportunities Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eight separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver 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.

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

 

7                         Invesco Select Opportunities Fund

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

8                         Invesco Select Opportunities Fund

D. Distributions — Distributions from 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, necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. 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. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

J. Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

 

Average Daily Net Assets   Rate

First $250 million

     0 .80%   

Next $250 million

     0 .78%   

Next $500 million

     0 .76%   

Next $1.5 billion

     0 .74%   

Next $2.5 billion

     0 .72%   

Next $2.5 billion

     0 .70%   

Next $2.5 billion

     0 .68%   

Over $10 billion

     0 .66%     

 

9                         Invesco Select Opportunities 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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and Invesco PowerShares Capital Management LLC (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

The Adviser has contractually agreed, through at least February 28, 2014, 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 1.51%, 2.26%, 1.76%, 1.26%, 1.26% and 1.26%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver 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, litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on February 28, 2014.

Further, the Adviser has contractually agreed, through at least June 30, 2014, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended April 30, 2013, the Adviser waived advisory fees and reimbursed fund level expenses of $130,056 and reimbursed class level expenses of $845, $32, $6, $717, $10 and $5 for Class A, Class C, Class R, Class Y Class R5 and Class R6 shares, respectively.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2013, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2013, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2013, IDI advised the Fund that IDI retained $885 in front-end sales commissions from the sale of Class A shares and $31 from Class C 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

 

10                         Invesco Select Opportunities Fund

The following is a summary of the tiered valuation input levels, as of April 30, 2013. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1        Level 2        Level 3        Total  

Canada

   $ 263,413         $ —         $ —         $ 263,413   

China

     164,201           —           —           164,201   

France

     331,307           —           —           331,307   

Hong Kong

     104,566           —           —           104,566   

Ireland

     515,699           —           —           515,699   

Netherlands

     122,893           159,347           —           282,240   

Norway

     —           85,776           —           85,776   

Sweden

     84,752           —           —           84,752   

United Kingdom

     109,615           —           —           109,615   

United States

     3,630,717           —           —           3,630,717   
    $ 5,327,163         $ 245,123         $ —         $ 5,572,286   

NOTE 4—Trustees’ and Officers’ Fees and Benefits

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

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. 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 6—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 generally accepted accounting principles. 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 Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of October 31, 2012.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2013 was $1,850,426 and $138,049, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 586,047   

Aggregate unrealized (depreciation) of investment securities

     (18,097 ) 

Net unrealized appreciation of investment securities

   $ 567,950   

Cost of investments is the same for tax and financial reporting purposes.

 

11                         Invesco Select Opportunities Fund

NOTE 8—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2013(a)		      August 3, 2012
(commencement date) to
October 31, 2012		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     109,761       $ 1,261,299         111,561       $ 1,124,935   

Class C

     9,080         103,992         8,462         90,586   

Class R

     2,124         25,000         1,001         10,010   

Class Y

     122,393         1,440,218         98,638         986,510   

Class R5

     2,374         28,136         1,001         10,010   

Class R6(b)

     —         —         926         10,000   

Issued as reinvestment of dividends:

           

Class A

     321         3,496         —         —   

Class C

     35         379         —         —   

Class Y

     38         416         —         —   

Reacquired:

           

Class A

     (12,852 )       (152,807 )       (7 )       (84 ) 

Class C

     (8,285 )       (90,014 )       —         —   

Class Y

     (2,711 )       (32,277 )       —         —   

Net increase in share activity

     222,278       $ 2,587,838         221,582       $ 2,231,967   

 

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 41% 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, 45% of the outstanding shares of the Fund are owned by the Adviser.
(b) Commencement date of September 24, 2012.

NOTE 9—Financial Highlights

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

 

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

Class A

  

Six months ended 04/30/13

   $ 10.63      $ (0.01 )    $ 1.69      $ 1.68      $ (0.08 )    $ (0.09 )    $ (0.17 )    $ 12.14        15.94 %    $ 2,536        1.47 %(d)      8.82 %(d)      (0.09 )%(d)      6 % 

Period ended 10/31/12(e)

     10.00        (0.00 )      0.63        0.63        —        —        —        10.63        6.30        1,186        1.48 (f)      15.54 (f)      (0.07 )(f)      7   

Class C

                            

Six months ended 04/30/13

     10.62        (0.05 )      1.69        1.64        (0.07 )      (0.09 )      (0.16 )      12.10        15.63        112        2.22 (d)      9.57 (d)      (0.84 )(d)      6   

Period ended 10/31/12(e)

     10.00        (0.02 )      0.64        0.62        —        —        —        10.62        6.20        90        2.23 (f)      16.29 (f)      (0.82 )(f)      7   

Class R

  

Six months ended 04/30/13

     10.63        (0.02 )      1.68        1.66        (0.08 )      (0.09 )      (0.17 )      12.12        15.74        38        1.72 (d)      9.07 (d)      (0.34 )(d)      6   

Period ended 10/31/12(e)

     10.00        (0.01 )      0.64        0.63        —        —        —        10.63        6.30        11        1.73 (f)      15.79 (f)      (0.32 )(f)      7   

Class Y

  

Six months ended 04/30/13

     10.64        0.01        1.69        1.70        (0.08 )      (0.09 )      (0.17 )      12.17        16.13        2,657        1.22 (d)      8.57 (d)      0.16 (d)      6   

Period ended 10/31/12(e)

     10.00        0.00        0.64        0.64        —        —        —        10.64        6.40        1,049        1.23 (f)      15.29 (f)      0.18 (f)      7   

Class R5

  

Six months ended 04/30/13

     10.64        0.01        1.69        1.70        (0.08 )      (0.09 )      (0.17 )      12.17        16.13        41        1.22 (d)      8.58 (d)      0.16 (d)      6   

Period ended 10/31/12(e)

     10.00        0.00        0.64        0.64        —        —        —        10.64        6.40        11        1.23 (f)      15.35 (f)      0.18 (f)      7   

Class R6

  

Six months ended 04/30/13

     10.64        0.01        1.68        1.69        (0.08 )      (0.09 )      (0.17 )      12.16        16.04        11        1.22 (d)      8.58 (d)      0.16 (d)      6   

Period ended 10/31/12(e)

     10.80        0.00        (0.16 )      (0.16 )      —        —        —        10.64        (1.48 )      10        1.23 (f)      11.37 (f)      0.18 (f)      7   

 

(a) Calculated using average shares outstanding.
(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(c) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $1,893, $71, $13, $1,605, $19, and $11 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
(e) Commencement date of August 3, 2012 for Class A, Class C, Class R, Class Y, Class R5 and September 24, 2012 for Class R6 shares.
(f) Annualized.

 

12                         Invesco Select Opportunities Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2012 through April 30, 2013.

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, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

Class   Beginning
Account Value
(11/01/12)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/13)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/13)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,159.40      $ 7.87      $ 1,017.50      $ 7.35        1.47 % 
C     1,000.00        1,156.30        11.87        1,013.79        11.08        2.22   
R     1,000.00        1,157.40        9.20        1,016.27        8.60        1.72   
Y     1,000.00        1,161.30        6.54        1,018.74        6.11        1.22   
R5     1,000.00        1,161.30        6.54        1,018.74        6.11        1.22   
R6     1,000.00        1,160.40        6.54        1,018.74        6.11        1.22   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2012 through April 30, 2013, 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.

 

13                         Invesco Select Opportunities Fund

LOGO

 

 

Invesco mailing information

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

 

 

Invesco privacy policy

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

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

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

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

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

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 numbers: 811-06463 and 033-44611

   SOPP-SAR-1   Invesco Distributors, Inc.   

ITEM 2. CODE OF ETHICS.

There were no amendments to the Code of Ethics (the “Code”) that applies to the Registrant’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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 May 23, 2013, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of May 23, 2013, the Registrant’s disclosure controls and procedures were reasonably designed 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 second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

ITEM 12. EXHIBITS.

 

12(a) (1)   Not applicable.
12(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.
12(a) (3)   Not applicable.
12(b)   Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AIM International Mutual Funds (Invesco International Mutual Funds)

 

By:   /s/ Philip A. Taylor
 

Philip A. Taylor

Principal Executive Officer

Date: July 8, 2013

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:   /s/ Philip A. Taylor
 

Philip A. Taylor

Principal Executive Officer

Date: July 8, 2013

 

By:   /s/ Sheri Morris
 

Sheri Morris

Principal Financial Officer

Date: July 8, 2013

EXHIBIT INDEX

 

12(a) (1)    Not applicable.
12(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.
12(a) (3)    Not applicable.
12(b)    Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.