N-CSRS 1 d726748dncsrs.htm N-CSRS - AIMF N-CSRS - AIMF
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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: 4/30/14

 

 

 

Item 1. Report to Stockholders.

 

 

LOGO  

Semiannual Report to Shareholders

 

   April 30, 2014
 

 

 

Invesco Asia Pacific Growth Fund

 

  Nasdaq:
  A: ASIAX  n  B: ASIBX  n  C: ASICX  n  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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       -0.82 %
Class B Shares       -1.22  
Class C Shares       -1.19  
Class Y Shares       -0.68  
MSCI EAFE Index‚ (Broad Market Index)       4.44  
MSCI All Country Asia Pacific ex-Japan Indexn (Style-Specific Index)       -0.30  
Lipper Pacific Region ex-Japan Funds Indexn (Peer Group Index)       1.11  

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

The MSCI EAFE® Index 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 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 4/30/14, including maximum applicable sales charges    
   
Class A Shares          
Inception (11/3/97)       9.44 %
10 Years       13.07  
  5 Years       17.96  
  1 Year       -6.44  
Class B Shares          
Inception (11/3/97)       9.46 %
10 Years       13.05  
  5 Years       18.20  
  1 Year       -6.38  
Class C Shares          
Inception (11/3/97)       9.01 %
10 Years       12.87  
  5 Years       18.40  
  1 Year       -2.69  
Class Y Shares          
10 Years       13.87 %
  5 Years       19.59  
  1 Year       -0.77  

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

Average Annual Total Returns
As of 3/31/14, the most recent calendar quarter end, including maximum applicable sales charges    
Class A Shares          
Inception (11/3/97)       9.47 %
10 Years       12.43  
  5 Years       21.23  
  1 Year       -5.10  
Class B Shares          
Inception (11/3/97)       9.49 %
10 Years       12.42  
  5 Years       21.52  
  1 Year       -5.00  
Class C Shares          
Inception (11/3/97)       9.04 %
10 Years       12.24  
  5 Years       21.68  
  1 Year       -1.28  
Class Y Shares          
10 Years       13.23 %
  5 Years       22.91  
  1 Year       0.68  

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 B, Class C and Class Y shares was 1.49%, 2.24%, 2.24% and 1.24%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.51%, 2.26%, 2.26% and 1.26%, 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.

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, 2015. See current prospectus for more information.

 

 

2                         Invesco Asia Pacific Growth Fund

 

Letters to Shareholders

 

 

LOGO

    Bruce Crockett

    

Dear Fellow Shareholders:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives,

short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

      Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

Also, you can obtain timely updates to help you stay informed about the markets, the economy

and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

3                         Invesco Asia Pacific Growth Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–89.33%

  

Australia–9.83%      

Amcor Ltd.

     2,062,378       $ 19,751,080   

BHP Billiton Ltd.

     131,137         4,618,726   

Brambles Ltd.

     1,626,177         14,284,198   

Coca-Cola Amatil Ltd.

     1,025,110         8,866,247   

Computershare Ltd.

     1,693,543         19,504,049   

CSL Ltd.

     188,086         11,991,818   
         79,016,118   
China–20.09%   

Baidu, Inc.–ADR(a)

     91,597         14,092,198   

Belle International Holdings Ltd.

     10,618,000         10,997,503   

China Mobile Ltd.

     1,052,500         10,005,192   

CNOOC Ltd.

     5,641,500         9,328,642   

Franshion Properties China Ltd.

     25,236,000         7,942,298   

Golden Eagle Retail Group Ltd.

     7,317,000         9,437,759   

Industrial & Commercial Bank of China Ltd.–Class H

     40,586,000         24,185,443   

Lee & Man Paper Manufacturing Ltd.

     38,308,000         20,802,110   

Minth Group Ltd.

     11,072,000         17,394,389   

NetEase, Inc.–ADR

     136,594         9,300,686   

Stella International Holdings Ltd.

     8,394,500         20,702,297   

Want Want China Holdings Ltd.

     4,678,000         7,337,187   
         161,525,704   
Hong Kong–11.70%   

Cheung Kong (Holdings) Ltd.

     1,174,000         20,040,861   

First Pacific Co. Ltd.

     8,886,000         9,845,444   

Galaxy Entertainment Group Ltd.(a)

     1,417,000         11,195,577   

Hongkong Land Holdings Ltd.

     3,121,000         21,847,000   

Hutchison Whampoa Ltd.

     2,271,000         31,144,844   
         94,073,726   
Indonesia–9.90%   

PT Bank Central Asia Tbk

     10,073,500         9,583,852   

PT Bank Mandiri Persero Tbk

     26,449,000         22,475,473   

PT Indocement Tunggal Prakarsa Tbk

     3,197,700         6,144,806   

PT Perusahaan Gas Negara Persero Tbk

     42,648,500         19,642,213   

PT Summarecon Agung Tbk

     28,392,800         2,725,827   

PT Telekomunikasi Indonesia Persero Tbk

     96,644,300         19,034,852   
         79,607,023   
Malaysia–5.42%   

Kossan Rubber Industries Berhad

     17,473,800         21,966,091   

Public Bank Berhad

     3,503,400         21,607,250   
         43,573,341   
     Shares      Value  
Philippines–9.81%   

Ayala Corp.

     454,150       $ 6,358,304   

Energy Development Corp.

     83,318,850         10,449,907   

First Gen Corp.

     31,919,789         13,624,632   

GMA Holdings, Inc.–PDR

     48,103,500         8,472,346   

Manila Water Co.

     1,137,400         680,092   

Metro Pacific Investments Corp.

     72,839,000         8,308,405   

Philippine Long Distance Telephone Co.

     354,490         22,906,242   

SM Investments Corp.

     497,181         8,107,499   
         78,907,427   
Singapore–7.19%   

Avago Technologies Ltd.

     249,335         15,832,773   

Keppel Corp. Ltd.

     2,068,200         17,372,484   

Keppel REIT

     6,255,000         6,037,452   

United Overseas Bank Ltd.

     1,072,000         18,607,786   
         57,850,495   
South Korea–5.40%   

Hyundai Department Store Co., Ltd.

     100,471         12,933,008   

Hyundai Mobis Co., Ltd.

     54,467         15,551,156   

Samsung Electronics Co., Ltd.

     11,496         14,984,675   
         43,468,839   
Taiwan–2.93%   

Taiwan Semiconductor Manufacturing Co. Ltd.

     5,982,464         23,558,019   
Thailand–7.06%   

Kasikornbank PCL

     4,165,600         25,345,227   

Major Cineplex Group PCL

     17,008,400         10,115,032   

Siam Commercial Bank PCL (The)

     2,975,600         15,013,804   

Thai Stanley Electric PCL

     960,700         6,324,888   
         56,798,951   

Total Common Stocks & Other Equity Interests
(Cost $529,215,859)

   

      718,379,643   

Money Market Funds–9.35%

  

Liquid Assets Portfolio–Institutional Class(b)

     37,581,367         37,581,367   

Premier Portfolio–
Institutional Class(b)

     37,581,366         37,581,366   

Total Money Market Funds
(Cost $75,162,733)

   

      75,162,733   

TOTAL INVESTMENTS–98.68%
(Cost $604,378,592)

   

      793,542,376   

OTHER ASSETS LESS LIABILITIES–1.32%

  

      10,661,163   

NET ASSETS–100.00%

  

    $ 804,203,539   
 

 

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 Receipt

PDR  

– Philippine 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, 2014

 

Financials

     26.1 % 

Consumer Discretionary

     15.3   

Information Technology

     12.1   

Industrials

     8.8   

Telecommunication Services

     6.5   

Materials

     6.4   

Utilities

     5.5   

Health Care

     4.2   

Consumer Staples

     3.2   

Energy

     1.2   

Money Market Funds Plus Other Assets Less Liabilities

     10.7   

 

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, 2014

(Unaudited)

 

Assets:

  

Investments, at value (Cost $529,215,859)

   $ 718,379,643   

Investments in affiliated money market funds, at value and cost

     75,162,733   

Total investments, at value (Cost $604,378,592)

     793,542,376   

Foreign currencies, at value (Cost $11,706,982)

     11,608,589   

Receivable for:

  

Fund shares sold

     2,188,197   

Dividends

     3,363,915   

Investment for trustee deferred compensation and retirement plans

     125,289   

Other assets

     39,413   

Total assets

     810,867,779   

Liabilities:

  

Payable for:

  

Fund shares reacquired

     1,413,853   

Accrued foreign taxes

     4,363,751   

Accrued fees to affiliates

     504,477   

Accrued trustees’ and officers’ fees and benefits

     2,580   

Accrued other operating expenses

     236,007   

Trustee deferred compensation and retirement plans

     143,572   

Total liabilities

     6,664,240   

Net assets applicable to shares outstanding

   $ 804,203,539   

Net assets consist of:

  

Shares of beneficial interest

   $ 601,542,222   

Undistributed net investment income

     2,294,979   

Undistributed net realized gain

     11,298,128   

Net unrealized appreciation

     189,068,210   
    $ 804,203,539   

Net Assets:

  

Class A

   $ 521,140,909   

Class B

   $ 16,697,001   

Class C

   $ 89,620,252   

Class Y

   $ 176,745,377   

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

   

Class A

     16,741,591   

Class B

     573,470   

Class C

     3,096,493   

Class Y

     5,664,846   

Class A:

  

Net asset value per share

   $ 31.13   

Maximum offering price per share

  

(Net asset value of $31.13 ¸ 94.50%)

   $ 32.94   

Class B:

  

Net asset value and offering price per share

   $ 29.12   

Class C:

  

Net asset value and offering price per share

   $ 28.94   

Class Y:

  

Net asset value and offering price per share

   $ 31.20   
 

 

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, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $878,750)

   $ 8,524,803   

Dividends from affiliated money market funds

     16,149   

Total investment income

     8,540,952   

Expenses:

  

Advisory fees

     3,473,479   

Administrative services fees

     95,293   

Custodian fees

     256,246   

Distribution fees:

  

Class A

     647,338   

Class B

     97,195   

Class C

     452,403   

Transfer agent fees

     764,111   

Trustees’ and officers’ fees and benefits

     27,065   

Other

     158,415   

Total expenses

     5,971,545   

Less: Fees waived and expense offset arrangement(s)

     (56,086 ) 

Net expenses

     5,915,459   

Net investment income

     2,625,493   

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Investment securities

     12,020,391   

Foreign currencies

     (75,103 ) 
      11,945,288   

Change in net unrealized appreciation (depreciation) of:

  

Investment securities (net of foreign taxes on holdings of $48,197)

     (20,138,869 ) 

Foreign currencies

     (245,834 ) 
      (20,384,703 ) 

Net realized and unrealized gain (loss)

     (8,439,415 ) 

Net increase (decrease) in net assets resulting from operations

   $ (5,813,922 ) 

 

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, 2014 and the year ended October 31, 2013

(Unaudited)

 

     April 30,
2014		      October 31,
2013		  

Operations:

     

Net investment income

   $ 2,625,493       $ 6,288,256   

Net realized gain

     11,945,288         40,343,992   

Change in net unrealized appreciation (depreciation)

     (20,384,703 )       31,144,966   

Net increase (decrease) in net assets resulting from operations

     (5,813,922 )       77,777,214   

Distributions to shareholders from net investment income:

     

Class A

     (4,576,841 )       (3,012,794 ) 

Class B

     (30,320 )       —   

Class C

     (134,057 )       —   

Class Y

     (1,264,757 )       (540,337 ) 

Total distributions from net investment income

     (6,005,975 )       (3,553,131 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (28,052,778 )       (9,721,485 ) 

Class B

     (1,182,957 )       (603,903 ) 

Class C

     (5,230,363 )       (1,852,367 ) 

Class Y

     (6,036,431 )       (1,304,896 ) 

Total distributions from net realized gains

     (40,502,529 )       (13,482,651 ) 

Share transactions–net:

     

Class A

     3,834,569         53,882,110   

Class B

     (4,134,536 )       (6,880,003 ) 

Class C

     (292,887 )       9,131,466   

Class Y

     61,642,695         54,724,041   

Net increase in net assets resulting from share transactions

     61,049,841         110,857,614   

Net increase in net assets

     8,727,415         171,599,046   

Net assets:

     

Beginning of period

     795,476,124         623,877,078   

End of period (includes undistributed net investment income of $2,294,979 and $5,675,461, respectively)

   $ 804,203,539       $ 795,476,124   

Notes to Financial Statements

April 30, 2014

(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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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.

 

9                         Invesco Asia Pacific 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 (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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. 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. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

10                         Invesco Asia Pacific 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(s) 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, 2015, 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 Invesco continues the fee waiver agreement, it will terminate on June 30, 2015. The fee waiver agreement cannot be terminated during its term. 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, 2016, 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, 2014, the Adviser waived advisory fees of $55,670.

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, 2014, 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, 2014, 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, 2014, 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, 2014, IDI advised the Fund that IDI retained $98,016 in front-end sales commissions from the sale of Class A shares and $6,538, $7,882 and $13,725 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.

 

11                         Invesco Asia Pacific 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $121,585,956 and from Level 2 to Level 1 of $293,380,213, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ —         $ 79,016,118         $ —         $ 79,016,118   

China

     161,525,704           —           —           161,525,704   

Hong Kong

     31,692,444           62,381,282           —           94,073,726   

Indonesia

     54,427,365           25,179,658           —           79,607,023   

Malaysia

     21,607,250           21,966,091           —           43,573,341   

Philippines

     48,866,891           30,040,536           —           78,907,427   

Singapore

     57,850,495           —           —           57,850,495   

South Korea

     28,484,164           14,984,675           —           43,468,839   

Taiwan

     —           23,558,019           —           23,558,019   

Thailand

     15,013,804           41,785,147           —           56,798,951   

United States

     75,162,733           —           —           75,162,733   

Total Investments

   $ 494,630,850         $ 298,911,526         $ —         $ 793,542,376   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2014, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $416.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with 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.

 

12                         Invesco Asia Pacific Growth Fund

NOTE 7—Tax Information

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013.

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, 2014 was $88,479,433 and $53,160,324, 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

   $ 212,056,749   

Aggregate unrealized (depreciation) of investment securities

     (23,513,046 ) 

Net unrealized appreciation of investment securities

   $ 188,543,703   

Cost of investments for tax purposes is $604,998,673.

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2014(a)		      Year ended
October 31, 2013		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     1,652,399       $ 51,027,398         5,889,455       $ 189,661,022   

Class B

     6,334         183,173         60,321         1,805,112   

Class C

     284,421         8,199,913         932,471         27,957,828   

Class Y

     2,960,154         89,564,262         3,751,686         121,128,269   

Issued as reinvestment of dividends:

           

Class A

     986,445         29,474,975         371,809         11,455,419   

Class B

     39,872         1,117,602         19,368         562,054   

Class C

     178,309         4,967,701         59,702         1,722,404   

Class Y

     206,630         6,182,381         47,330         1,460,123   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     80,569         2,459,419         134,345         4,441,862   

Class B

     (86,060 )       (2,459,419 )       (146,371 )       (4,441,862 ) 

Reacquired:

           

Class A

     (2,583,656 )       (79,127,223 )       (4,730,060 )       (151,676,193 ) 

Class B

     (103,269 )       (2,975,892 )       (160,134 )       (4,805,307 ) 

Class C

     (468,365 )       (13,460,501 )       (687,635 )       (20,548,766 ) 

Class Y

     (1,107,566 )       (34,103,948 )       (2,107,171 )       (67,864,351 ) 

Net increase in share activity

     2,046,217       $ 61,049,841         3,435,116       $ 110,857,614   

 

(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.

 

13                         Invesco Asia Pacific 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 04/30/14

   $ 33.45      $ 0.12      $ (0.46 )    $ (0.34 )    $ (0.28 )    $ (1.70 )    $ (1.98 )    $ 31.13        (0.79 )%    $ 521,141        1.49 %(e)      1.50 %(e)      0.75 %(e)      8 % 

Year ended 10/31/13

     30.65        0.30        3.35        3.65        (0.20 )      (0.65 )      (0.85 )      33.45        12.16        555,505        1.47        1.49        0.95        18   

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   

Class B

  

Six months ended 04/30/14

     31.29        0.00        (0.43 )      (0.43 )      (0.04 )      (1.70 )      (1.74 )      29.12        (1.16 )      16,697        2.24 (e)      2.25 (e)      0.00 (e)      8   

Year ended 10/31/13

     28.74        0.06        3.14        3.20        —        (0.65 )      (0.65 )      31.29        11.32        22,421        2.22        2.24        0.20        18   

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   

Class C

  

Six months ended 04/30/14

     31.11        0.00        (0.43 )      (0.43 )      (0.04 )      (1.70 )      (1.74 )      28.94        (1.16 )      89,620        2.24 (e)      2.25 (e)      0.00 (e)      8   

Year ended 10/31/13

     28.58        0.06        3.12        3.18        —        (0.65 )      (0.65 )      31.11        11.31        96,520        2.22        2.24        0.20        18   

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   

Class Y

  

Six months ended 04/30/14

     33.57        0.15        (0.46 )      (0.31 )      (0.36 )      (1.70 )      (2.06 )      31.20        (0.68 )      176,745        1.24 (e)      1.25 (e)      1.00 (e)      8   

Year ended 10/31/13

     30.75        0.39        3.35        3.74        (0.27 )      (0.65 )      (0.92 )      33.57        12.43        121,030        1.22        1.24        1.20        18   

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   

 

(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 the fiscal years ended October 31, 2012 and prior.
(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 $522,163, $19,600, $91,230 and $137,293 for Class A, Class B, Class C and Class Y shares, respectively.

 

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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class   Beginning
Account Value
(11/01/13)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 991.80      $ 7.36      $ 1,017.41      $ 7.45        1.49 % 
B     1,000.00        987.80        11.04        1,013.69        11.18        2.24   
C     1,000.00        988.10        11.04        1,013.69        11.18        2.24   
Y     1,000.00        993.20        6.13        1,018.65        6.21        1.24   

 

1 The actual ending account value is based on the actual total return of the Fund for the period November 1, 2013 through April 30, 2014, 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.

 

 

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, 2014
 

 

 

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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       6.97 %
Class B Shares       6.58  
Class C Shares       6.58  
Class R Shares       6.83  
Class Y Shares       7.10  
Investor Class Shares       6.97  
MSCI EAFE Index‚ (Broad Market Index)       4.44  
MSCI Europe Growth Indexn (Style-Specific Index)       6.90  
Lipper European Funds Indexn (Peer Group Index)       8.07  

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

The MSCI EAFE® Index 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 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 4/30/14, including maximum applicable sales charges

 

   

Class A Shares          
Inception (11/3/97)       11.57 %
10 Years       9.83  
  5 Years       16.52  
  1 Year       11.68  
Class B Shares          
Inception (11/3/97)       11.57 %
10 Years       9.81  
  5 Years       16.75  
  1 Year       12.32  
Class C Shares          
Inception (11/3/97)       11.15 %
10 Years       9.64  
  5 Years       16.97  
  1 Year       16.27  
Class R Shares          
Inception (6/3/02)       10.84 %
10 Years       10.19  
  5 Years       17.54  
  1 Year       17.89  
Class Y Shares          
10 Years       10.61 %
  5 Years       18.14  
  1 Year       18.47  
Investor Class Shares          
Inception (9/30/03)       12.33 %
10 Years       10.50  
  5 Years       17.88  
  1 Year       18.20  

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.

Average Annual Total Returns
As of 3/31/14, the most recent calendar quarter end, including maximum applicable sales charges    
Class A Shares          
Inception (11/3/97)       11.51 %
10 Years       9.48  
  5 Years       18.55  
  1 Year       12.53  
Class B Shares          
Inception (11/3/97)       11.52 %
10 Years       9.45  
  5 Years       18.79  
  1 Year       13.17  
Class C Shares          
Inception (11/3/97)       11.10 %
10 Years       9.29  
  5 Years       19.00  
  1 Year       17.18  
Class R Shares          
Inception (6/3/02)       10.77 %
10 Years       9.84  
  5 Years       19.59  
  1 Year       18.78  
Class Y Shares          
10 Years       10.25 %
  5 Years       20.19  
  1 Year       19.41  
Investor Class Shares          
Inception (9/30/03)       12.25 %
10 Years       10.15  
  5 Years       19.92  
  1 Year       19.11  

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Investor Class shares was 1.41%, 2.16%, 2.16%, 1.66%, 1.16% and 1.40%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Investor Class shares was 1.43%, 2.18%, 2.18%, 1.68%, 1.18% 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.

 

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, 2015. See current prospectus for more information.
 

 

3                         Invesco European Growth Fund

 

Letters to Shareholders

 

 

 

LOGO

    Bruce Crockett

    

Dear Fellow Shareholders:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

    After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives,

short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

    Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

    Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

    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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

      Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

    Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

    Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

    Also, you can obtain timely updates to help you stay informed about the markets, the

economy and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

    For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

    Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

4                         Invesco European Growth Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–84.43%

  

Belgium–2.06%   

Anheuser-Busch InBev N.V.

     225,571       $ 24,049,992   

S.A. D’Ieteren N.V.

     362,922         16,781,045   
               40,831,037   
Denmark–2.40%     

Carlsberg AS–Class B

     249,222         24,983,033   

Novo Nordisk AS–Class B

     496,488         22,524,709   
               47,507,742   
France–6.12%     

Metropole Television S.A.

     407,516         8,735,573   

Publicis Groupe S.A.

     297,129         25,336,013   

Schneider Electric S.A.

     231,132         21,721,967   

Total S.A.

     572,193         40,911,623   

Vicat S.A.

     281,820         24,471,587   
               121,176,763   
Germany–9.45%     

Allianz S.E.

     176,695         30,604,352   

Brenntag AG

     41,769         7,553,278   

Deutsche Boerse AG

     305,021         22,338,386   

Deutsche Post AG

     454,445         17,107,303   

Deutsche Telekom AG

     1,076,932         18,055,326   

GEA Group AG

     332,938         14,912,363   

MorphoSys AG(a)

     330,115         28,265,818   

MTU Aero Engines AG

     182,605         17,203,629   

SAP AG

     385,155         31,012,254   
               187,052,709   
Ireland–3.32%     

DCC PLC

     681,736         34,982,028   

Shire PLC

     536,526         30,674,255   
               65,656,283   
Israel–0.76%     

Israel Chemicals Ltd.

     1,695,454         15,050,070   
Italy–3.57%     

Ansaldo STS S.p.A.

     643,624         7,156,497   

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

     1,014,502         24,389,263   

Prada S.p.A.

     2,031,900         16,281,428   

Saipem S.p.A.

     852,290         22,862,758   
               70,689,946   
Netherlands–1.24%     

Aalberts Industries N.V.

     213,139         7,110,566   

Unilever N.V.

     405,842         17,400,144   
               24,510,710   
     Shares      Value  
Norway–2.63%     

Prosafe S.E.

     4,074,252       $ 35,969,792   

TGS Nopec Geophysical Co. ASA

     464,767         16,026,988   
               51,996,780   
Russia–1.14%     

Sberbank of Russia-Preference Shares

     13,397,700         22,600,486   
Spain–0.84%     

Construcciones y Auxiliar de Ferrocarriles S.A.

     34,764         16,638,694   
Sweden–3.42%     

Intrum Justitia AB

     827,756         23,993,391   

Investor AB–Class B

     656,253         25,468,128   

Telefonaktiebolaget LM Ericsson–
Class B

     1,515,121         18,192,437   
               67,653,956   
Switzerland–13.41%     

ABB Ltd.

     960,368         23,138,741   

Aryzta AG

     542,511         50,078,412   

Dufry AG(a)

     135,196         22,392,352   

Julius Baer Group Ltd.

     403,949         18,937,395   

Kuoni Reisen Holding AG

     44,399         19,652,584   

Nestle S.A.

     258,788         20,011,254   

Novartis AG

     190,405         16,545,319   

Roche Holding AG

     112,860         33,175,759   

Syngenta AG

     69,229         27,485,368   

Tecan Group AG

     105,086         13,108,888   

UBS AG

     994,894         20,797,602   
               265,323,674   
Turkey–2.23%     

Haci Omer Sabanci Holding A.S.

     8,101,545         34,232,907   

Tupras-Turkiye Petrol Rafinerileri A.S.

     436,527         9,820,049   
               44,052,956   
Turkmenistan–1.57%     

Dragon Oil PLC

     2,918,345         31,109,615   
United Kingdom–30.27%     

Aberdeen Asset Management PLC

     3,727,225         27,565,148   

Amlin PLC

     2,691,771         20,345,802   

Balfour Beatty PLC

     3,462,611         16,420,001   

British American Tobacco PLC

     686,043         39,547,082   

British Sky Broadcasting Group PLC

     2,919,804         43,462,543   

Bunzl PLC

     628,341         17,876,852   

Catlin Group Ltd.

     2,009,454         17,956,078   

Centrica PLC

     2,623,166         14,614,681   

Chemring Group PLC

     2,618,038         9,924,380   

Compass Group PLC

     2,283,126         36,406,461   

Halma PLC

     1,116,661         10,608,456   
 

 

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)   

HomeServe PLC

     2,201,991       $ 12,558,125   

IG Group Holdings PLC

     2,629,740         28,283,543   

Informa PLC

     2,792,356         22,822,205   

John Wood Group PLC

     2,095,113         27,826,595   

Kingfisher PLC

     2,156,395         15,272,880   

Lancashire Holdings Ltd.

     1,171,980         13,850,577   

Micro Focus International PLC

     1,226,162         16,043,502   

Next PLC

     146,488         16,182,340   

Reed Elsevier PLC

     2,626,502         38,743,358   

Royal Dutch Shell PLC–Class B

     810,893         34,423,915   

Smith & Nephew PLC

     1,357,665         21,125,452   

Smiths Group PLC

     737,241         16,651,775   

UBM PLC

     1,313,785         14,597,494   

Ultra Electronics Holdings PLC

     504,333         14,461,489   

William Hill PLC

     3,392,775         20,365,832   
     Shares      Value  
United Kingdom–(continued)   

WPP PLC

     1,447,563       $ 31,252,494   
               599,189,060   

Total Common Stocks & Other Equity Interests
(Cost $1,224,116,909)

   

      1,671,040,481   

Money Market Funds–14.83%

  

Liquid Assets Portfolio–Institutional Class(b)

     146,745,187         146,745,187   

Premier Portfolio–
Institutional Class(b)

     146,745,187         146,745,187   

Total Money Market Funds
(Cost $293,490,374)

   

      293,490,374   

TOTAL INVESTMENTS–99.26%
(Cost $1,517,607,283)

   

      1,964,530,855   

OTHER ASSETS LESS LIABILITIES–0.74%

  

      14,569,205   

NET ASSETS–100.00%

  

    $ 1,979,100,060   
 

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, 2014

 

Consumer Discretionary

     17.6 % 

Industrials

     15.3   

Financials

     14.3   

Energy

     11.1   

Consumer Staples

     8.9   

Health Care

     8.4   

Information Technology

     3.8   

Materials

     3.4   

Telecommunication Services

     0.9   

Utilities

     0.7   

Money Market Funds Plus Other Assets Less Liabilities

     15.6   

 

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, 2014

(Unaudited)

 

Assets:

  

Investments, at value (Cost $1,224,116,909)

   $ 1,671,040,481   

Investments in affiliated money market funds, at value and cost

     293,490,374   

Total investments, at value (Cost $1,517,607,283)

     1,964,530,855   

Foreign currencies, at value (Cost $888,553)

     897,234   

Receivable for:

  

Investments sold

     11,039   

Fund shares sold

     12,136,041   

Dividends

     9,155,370   

Investment for trustee deferred compensation and retirement plans

     202,981   

Other assets

     72,365   

Total assets

     1,987,005,885   

Liabilities:

  

Payable for:

  

Investments purchased

     3,865,738   

Fund shares reacquired

     2,773,379   

Accrued fees to affiliates

     808,117   

Accrued trustees’ and officers’ fees and benefits

     3,094   

Accrued other operating expenses

     217,402   

Trustee deferred compensation and retirement plans

     238,095   

Total liabilities

     7,905,825   

Net assets applicable to shares outstanding

   $ 1,979,100,060   

Net assets consist of:

  

Shares of beneficial interest

   $ 1,497,906,100   

Undistributed net investment income

     6,069,787   

Undistributed net realized gain

     28,100,486   

Net unrealized appreciation

     447,023,687   
    $ 1,979,100,060   

Net Assets:

  

Class A

   $ 639,460,611   

Class B

   $ 11,537,789   

Class C

   $ 97,021,795   

Class R

   $ 18,891,064   

Class Y

   $ 1,004,392,629   

Investor Class

   $ 207,796,172   

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

   

Class A

     15,747,333   

Class B

     303,203   

Class C

     2,547,092   

Class R

     466,780   

Class Y

     24,684,617   

Investor Class

     5,130,111   

Class A:

  

Net asset value per share

   $ 40.61   

Maximum offering price per share

  

(Net asset value of $40.61 ¸ 94.50%)

   $ 42.97   

Class B:

  

Net asset value and offering price per share

   $ 38.05   

Class C:

  

Net asset value and offering price per share

   $ 38.09   

Class R:

  

Net asset value and offering price per share

   $ 40.47   

Class Y:

  

Net asset value and offering price per share

   $ 40.69   

Investor Class:

  

Net asset value and offering price per share

   $ 40.51   
 

 

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, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $1,069,178)

   $ 21,363,535   

Dividends from affiliated money market funds

     58,482   

Total investment income

     21,422,017   

Expenses:

  

Advisory fees

     7,425,033   

Administrative services fees

     195,740   

Custodian fees

     202,725   

Distribution fees:

  

Class A

     697,627   

Class B

     60,196   

Class C

     382,813   

Class R

     42,885   

Investor Class

     235,650   

Transfer agent fees

     1,228,263   

Trustees’ and officers’ fees and benefits

     36,737   

Other

     154,701   

Total expenses

     10,662,370   

Less: Fees waived and expense offset arrangement(s)

     (180,474 ) 

Net expenses

     10,481,896   

Net investment income

     10,940,121   

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Investment securities

     28,634,198   

Foreign currencies

     (79,423 ) 
      28,554,775   

Change in net unrealized appreciation of:

  

Investment securities

     80,441,028   

Foreign currencies

     55,156   
      80,496,184   

Net realized and unrealized gain

     109,050,959   

Net increase in net assets resulting from operations

   $ 119,991,080   

 

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, 2014 and the year ended October 31, 2013

(Unaudited)

 

     April 30,
2014		      October 31,
2013		  

Operations:

  

   

Net investment income

   $ 10,940,121       $ 14,629,464   

Net realized gain

     28,554,775         27,493,111   

Change in net unrealized appreciation

     80,496,184         184,001,486   

Net increase in net assets resulting from operations

     119,991,080         226,124,061   

Distributions to shareholders from net investment income:

     

Class A

     (5,988,738 )       (6,852,015 ) 

Class B

     (82,972 )       (183,960 ) 

Class C

     (439,562 )       (487,737 ) 

Class R

     (161,586 )       (209,318 ) 

Class Y

     (9,199,162 )       (5,374,817 ) 

Investor Class

     (2,330,739 )       (2,895,808 ) 

Total distributions from net investment income

     (18,202,759 )       (16,003,655 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (9,666,633 )       (6,911,369 ) 

Class B

     (243,679 )       (281,354 ) 

Class C

     (1,290,952 )       (745,958 ) 

Class R

     (308,730 )       (238,372 ) 

Class Y

     (12,656,807 )       (4,888,767 ) 

Investor Class

     (3,737,516 )       (2,846,909 ) 

Total distributions from net realized gains

     (27,904,317 )       (15,912,729 ) 

Share transactions–net:

     

Class A

     121,591,767         41,814,991   

Class B

     (1,242,609 )       (5,042,754 ) 

Class C

     37,741,945         9,812,963   

Class R

     2,052,334         320,311   

Class Y

     342,070,794         287,835,044   

Investor Class

     2,581,317         11,131,571   

Net increase in net assets resulting from share transactions

     504,795,548         345,872,126   

Net increase in net assets

     578,679,552         540,079,803   

Net assets:

     

Beginning of period

     1,400,420,508         860,340,705   

End of period (includes undistributed net investment income of $6,069,787 and $13,332,425, respectively)

   $ 1,979,100,060       $ 1,400,420,508   

Notes to Financial Statements

April 30, 2014

(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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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

 

10                         Invesco European Growth Fund

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

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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. 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. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

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(s) 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, 2015, 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 Invesco continues the fee waiver agreement, it will terminate on June 30, 2015. The fee waiver agreement cannot be terminated during its term. 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, 2016, 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, 2014, the Adviser waived advisory fees of $179,995.

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, 2014, 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, 2014, 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, 2014, 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, 2014, IDI advised the Fund that IDI retained $122,210 in front-end sales commissions from the sale of Class A shares and $195, $2,132 and $3,870 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $506,832,815 and from Level 2 to Level 1 of $152,829,037, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Belgium

   $ 16,781,045         $ 24,049,992         $ —         $ 40,831,037   

Denmark

     —           47,507,742           —           47,507,742   

France

     —           121,176,763           —           121,176,763   

Germany

     154,936,717           32,115,992           —           187,052,709   

Ireland

     —           65,656,283           —           65,656,283   

Israel

     —           15,050,070           —           15,050,070   

Italy

     —           70,689,946           —           70,689,946   

Netherlands

     —           24,510,710           —           24,510,710   

Norway

     16,026,988           35,969,792           —           51,996,780   

Russia

     —           22,600,486           —           22,600,486   

Spain

     16,638,694           —           —           16,638,694   

Sweden

     —           67,653,956           —           67,653,956   

Switzerland

     83,984,902           181,338,772           —           265,323,674   

Turkey

     9,820,049           34,232,907           —           44,052,956   

Turkmenistan

     —           31,109,615           —           31,109,615   

United Kingdom

     77,412,687           521,776,373           —           599,189,060   

United States

     293,490,374           —           —           293,490,374   

Total Investments

   $ 669,091,456         $ 1,295,439,399         $ —         $ 1,964,530,855   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2014, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $479.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

 

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013.

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, 2014 was $452,668,074 and $67,487,908, 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

   $ 458,913,305   

Aggregate unrealized (depreciation) of investment securities

     (16,919,219 ) 

Net unrealized appreciation of investment securities

   $ 441,994,086   

Cost of investments for tax purposes is $1,522,536,769.

 

14                         Invesco European Growth Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2014(a)		      Year ended
October 31, 2013		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     3,998,397       $ 156,349,266         3,051,834       $ 110,544,363   

Class B

     28,252         1,034,008         13,038         444,040   

Class C

     1,136,150         41,696,640         472,914         16,366,896   

Class R

     98,408         3,842,517         167,063         5,906,853   

Class Y

     10,904,925         425,416,290         8,950,533         324,100,471   

Investor Class

     291,133         11,371,712         712,095         25,579,255   

Issued as reinvestment of dividends:

           

Class A

     384,642         14,469,995         413,345         13,363,444   

Class B

     8,937         314,423         15,041         458,756   

Class C

     44,940         1,582,826         38,712         1,181,877   

Class R

     12,556         468,963         13,827         446,317   

Class Y

     373,625         14,003,465         311,924         10,090,743   

Investor Class

     152,084         5,678,807         172,999         5,579,228   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     41,146         1,622,871         99,082         3,489,071   

Class B

     (43,868 )       (1,622,871 )       (105,372 )       (3,489,071 ) 

Reacquired:

           

Class A

     (1,297,118 )       (50,850,365 )       (2,433,163 )       (85,581,887 ) 

Class B

     (26,357 )       (968,169 )       (75,199 )       (2,456,479 ) 

Class C

     (151,498 )       (5,537,521 )       (232,876 )       (7,735,810 ) 

Class R

     (57,732 )       (2,259,146 )       (170,746 )       (6,032,859 ) 

Class Y

     (2,483,977 )       (97,348,961 )       (1,297,649 )       (46,356,170 ) 

Investor Class

     (371,247 )       (14,469,202 )       (573,336 )       (20,026,912 ) 

Net increase in share activity

     13,043,398       $ 504,795,548         9,544,066       $ 345,872,126   

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 57% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

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 04/30/14

   $ 39.17      $ 0.24      $ 2.39      $ 2.63      $ (0.45 )    $ (0.74 )    $ (1.19 )    $ 40.61        6.97 %    $ 639,461        1.33 %(e)      1.35 %(e)      1.23 %(e)      5 % 

Year ended 10/31/13

     32.84        0.48        7.06        7.54        (0.60 )      (0.61 )      (1.21 )      39.17        23.72        494,360        1.39        1.41        1.35        15   

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   

Class B

                            

Six months ended 04/30/14

     36.71        0.09        2.24        2.33        (0.25 )      (0.74 )      (0.99 )      38.05        6.56        11,538        2.08 (e)      2.10 (e)      0.48 (e)      5   

Year ended 10/31/13

     30.87        0.20        6.64        6.84        (0.39 )      (0.61 )      (1.00 )      36.71        22.82        12,343        2.14        2.16        0.60        15   

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   

Class C

                            

Six months ended 04/30/14

     36.74        0.09        2.25        2.34        (0.25 )      (0.74 )      (0.99 )      38.09        6.58        97,022        2.08 (e)      2.10 (e)      0.48 (e)      5   

Year ended 10/31/13

     30.90        0.20        6.64        6.84        (0.39 )      (0.61 )      (1.00 )      36.74        22.80        55,760        2.14        2.16        0.60        15   

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   

Class R

                            

Six months ended 04/30/14

     39.02        0.19        2.38        2.57        (0.38 )      (0.74 )      (1.12 )      40.47        6.83        18,891        1.58 (e)      1.60 (e)      0.98 (e)      5   

Year ended 10/31/13

     32.73        0.39        7.04        7.43        (0.53 )      (0.61 )      (1.14 )      39.02        23.42        16,137        1.64        1.66        1.10        15   

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   

Class Y

                            

Six months ended 04/30/14

     39.28        0.29        2.39        2.68        (0.53 )      (0.74 )      (1.27 )      40.69        7.10        1,004,393        1.08 (e)      1.10 (e)      1.48 (e)      5   

Year ended 10/31/13

     32.92        0.57        7.07        7.64        (0.67 )      (0.61 )      (1.28 )      39.28        24.01        624,166        1.14        1.16        1.60        15   

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   

Investor Class

                            

Six months ended 04/30/14

     39.08        0.24        2.39        2.63        (0.46 )      (0.74 )      (1.20 )      40.51        6.97        207,796        1.32 (e)      1.34 (e)      1.24 (e)      5   

Year ended 10/31/13

     32.78        0.48        7.04        7.52        (0.61 )      (0.61 )      (1.22 )      39.08        23.74        197,655        1.38        1.40        1.36        15   

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   

 

(a)  Calculated using average shares outstanding.
(b)  Includes redemption fees added to shares of beneficial interest for Class A, Class B, Class C, Class R, Class Y and Investor Class shares, which were less than $0.005 per share for the fiscal years ended October 31, 2012 and prior.
(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 $562,727, $12,139, $77,197, $17,296, $818,200 and $202,631 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.

 

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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class   Beginning
Account Value
(11/01/13)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,069.70      $ 6.83      $ 1,018.20      $ 6.66        1.33 % 
B     1,000.00        1,065.80        10.65        1,014.48        10.39        2.08   
C     1,000.00        1,065.80        10.65        1,014.48        10.39        2.08   
R     1,000.00        1,068.30        8.10        1,016.96        7.90        1.58   
Y     1,000.00        1,071.00        5.55        1,019.44        5.41        1.08   
Investor     1,000.00        1,069.70        6.77        1,018.25        6.61        1.32   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2013 through April 30, 2014, 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.

 

 

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, 2014
 

 

 

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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       6.76 %
Class B Shares       6.35  
Class C Shares       6.35  
Class Y Shares       6.90  
Class R5 Shares       6.96  
Class R6 Shares       7.00  
MSCI All Country World Index‚ (Broad Market Index)*       5.28  
MSCI World Indexn (Former Broad Market Index)*       6.32  
MSCI All Country World Growth Indexn (Style-Specific Index)**       4.44  
MSCI World Growth Index‚ (Former Style-Specific Index)**       5.30  
Lipper Global Large-Cap Growth Funds Index‚ (Peer Group Index)       5.26  

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

 

  * The Fund has elected to use the MSCI All Country World Index as its broad market benchmark rather than the MSCI World Index because the MSCI All Country World Index more closely reflects the performance of the types of securities in which the Fund invests.
** The Fund has elected to use the MSCI All Country World Growth Index as its style-specific benchmark rather than the MSCI World Growth Index because the MSCI All Country World Growth Index more closely reflects the performance of the types of securities in which the Fund invests.

The MSCI All Country World Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for nonresident investors.

The MSCI World IndexSM 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 All Country World Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 23 developed markets countries and 21 emerging markets countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The MSCI World Growth Index 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 4/30/14, including maximum applicable sales charges    
   
Class A Shares          
Inception (9/15/94)       6.79 %
10 Years       7.20  
  5 Years       14.69  
  1 Year       13.53  
Class B Shares          
Inception (9/15/94)       6.86 %
10 Years       7.19  
  5 Years       14.90  
  1 Year       14.22  
Class C Shares          
Inception (8/4/97)       3.97 %
10 Years       7.02  
  5 Years       15.12  
  1 Year       18.17  
Class Y Shares          
10 Years       7.96 %
  5 Years       16.27  
  1 Year       20.42  
Class R5 Shares          
10 Years       8.19 %
  5 Years       16.56  
  1 Year       20.68  
Class R6 Shares          
10 Years       7.88 %
  5 Years       16.16  
  1 Year       20.69  

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.

    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 be lower or higher. Please visit invesco.com/performance for the most recent month-end performance.

Average Annual Total Returns
As of 3/31/14, the most recent calendar quarter end, including maximum applicable sales charges    
Class A Shares          
Inception (9/15/94)       6.76 %
10 Years       6.92  
  5 Years       15.74  
  1 Year       14.30  
Class B Shares          
Inception (9/15/94)       6.83 %
10 Years       6.91  
  5 Years       15.97  
  1 Year       15.09  
Class C Shares          
Inception (8/4/97)       3.93 %
10 Years       6.75  
  5 Years       16.17  
  1 Year       19.04  
Class Y Shares          
10 Years       7.67 %
  5 Years       17.34  
  1 Year       21.27  
Class R5 Shares          
10 Years       7.91 %
  5 Years       17.65  
  1 Year       21.53  
Class R6 Shares          
10 Years       7.60 %
  5 Years       17.21  
  1 Year       21.55  

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 1.48%, 2.23%, 2.23%, 1.23%, 1.00% and 1.00%, 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

    Bruce Crockett

    

Dear Fellow Shareholders:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors

considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

      Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

Also, you can obtain timely updates to help you stay informed about the markets, the

economy and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

4                         Invesco Global Growth Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–97.76%

  

Australia–2.09%   

Amcor Ltd.

     543,445       $ 5,204,491   

Brambles Ltd.

     257,603         2,262,762   
         7,467,253   
Belgium–1.23%   

Anheuser-Busch InBev N.V.

     41,214         4,394,166   
Brazil–4.39%   

Banco Bradesco S.A.–ADR

     286,905         4,266,277   

BM&FBovespa S.A.

     1,280,000         6,532,604   

BRF S.A.

     89,341         2,019,368   

Cielo S.A.

     164,664         2,871,909   
         15,690,158   
Canada–4.79%   

Cenovus Energy Inc.

     102,846         3,063,797   

CGI Group Inc.–Class A(a)

     120,711         4,352,645   

Encana Corp.

     175,512         4,065,921   

Suncor Energy, Inc.

     145,743         5,622,276   
         17,104,639   
China–3.04%   

Baidu, Inc.–ADR(a)

     25,225         3,880,866   

CNOOC Ltd.

     1,090,000         1,802,396   

Industrial & Commercial Bank of China Ltd.–Class H

     4,938,000         2,942,584   

NetEase, Inc.–ADR

     32,940         2,242,885   
         10,868,731   
Denmark–2.44%   

Carlsberg AS–Class B

     46,794         4,690,822   

Novo Nordisk AS–Class B

     88,428         4,011,809   
         8,702,631   
France–3.54%   

Publicis Groupe S.A.

     30,155         2,571,299   

Schneider Electric S.A.

     43,691         4,106,115   

Total S.A.

     83,294         5,955,495   
         12,632,909   
Germany–4.49%   

Adidas AG

     26,726         2,852,332   

Deutsche Boerse AG

     47,165         3,454,156   

Deutsche Post AG

     45,622         1,717,412   

Deutsche Telekom AG

     154,324         2,587,322   

SAP AG

     67,591         5,442,352   
         16,053,574   
Hong Kong–2.31%   

Galaxy Entertainment Group Ltd.(a)

     591,000         4,669,433   

Hutchison Whampoa Ltd.

     260,000         3,565,680   
         8,235,113   
     Shares      Value  
Indonesia–1.23%   

PT Bank Mandiri Persero Tbk

     5,153,300       $ 4,379,102   
Israel–2.68%   

Check Point Software Technologies Ltd.(a)

     51,822         3,319,717   

Teva Pharmaceutical Industries Ltd.–ADR

     128,222         6,264,927   
         9,584,644   
Italy–0.87%   

Prada S.p.A.

     386,000         3,092,982   
Japan–4.35%   

FANUC Corp.

     20,600         3,707,718   

Japan Tobacco, Inc.

     91,300         2,997,191   

Keyence Corp.

     6,000         2,311,552   

Komatsu Ltd.

     133,700         2,945,245   

Toyota Motor Corp.

     66,300         3,582,814   
         15,544,520   
Mexico–0.90%   

Fomento Economico Mexicano, S.A.B. de C.V.–ADR

     2,370         215,125   

Grupo Televisa S.A.B.–ADR

     91,896         3,015,108   
         3,230,233   
Netherlands–0.86%   

Unilever N.V.

     71,415         3,061,860   
Singapore–2.05%   

Avago Technologies Ltd.

     61,954         3,934,079   

United Overseas Bank Ltd.

     195,000         3,384,812   
         7,318,891   
South Korea–2.55%   

Hyundai Mobis Co., Ltd.

     14,984         4,278,159   

Samsung Electronics Co., Ltd.

     3,715         4,842,386   
         9,120,545   
Spain–1.09%   

Amadeus IT Holding S.A.–Class A

     93,251         3,882,512   
Sweden–1.08%   

Telefonaktiebolaget LM Ericsson–Class B

     322,069         3,867,163   
Switzerland–6.44%   

ABB Ltd.

     179,824         4,332,611   

Julius Baer Group Ltd.

     63,637         2,983,345   

Novartis AG

     35,380         3,074,359   

Roche Holding AG

     17,136         5,037,212   

Syngenta AG

     11,706         4,647,528   

UBS AG

     140,095         2,928,594   
         23,003,649   
Taiwan–1.59%   

Taiwan Semiconductor Manufacturing Co. Ltd.

     1,438,428         5,664,307   
 

 

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

 

5                         Invesco Global Growth Fund

     Shares      Value  
Thailand–0.93%   

Kasikornbank PCL–NVDR

     559,000       $ 3,313,798   
Turkey–0.66%   

Akbank T.A.S.

     672,267         2,346,487   
United Kingdom–12.04%   

Aberdeen Asset Management PLC

     422,639         3,125,678   

British American Tobacco PLC

     61,123         3,523,447   

British Sky Broadcasting Group PLC

     212,258         3,159,552   

Centrica PLC

     525,054         2,925,281   

Compass Group PLC

     270,695         4,316,471   

Kingfisher PLC

     396,252         2,806,494   

Next PLC

     27,598         3,048,715   

Reed Elsevier PLC

     441,370         6,510,620   

Royal Dutch Shell PLC–Class B

     94,867         4,027,280   

Smith & Nephew PLC

     248,406         3,865,231   

WPP PLC

     262,991         5,677,905   
         42,986,674   
United States–30.12%   

Aon PLC

     37,367         3,171,711   

Apple Inc.

     11,263         6,646,184   

Cadence Design Systems, Inc.(a)

     255,190         3,970,756   

Cameron International Corp.(a)

     73,275         4,759,944   

Cardinal Health, Inc.

     45,348         3,152,140   

Celgene Corp.(a)

     21,392         3,144,838   

Cisco Systems, Inc.

     174,001         4,021,163   

Citrix Systems, Inc.(a)

     60,337         3,578,588   

Comcast Corp.–Class A

     74,986         3,881,275   

DIRECTV(a)

     46,557         3,612,823   

Dollar General Corp.(a)

     64,605         3,646,306   
     Shares      Value  
United States–(continued)   

EMC Corp.

     225,537       $ 5,818,855   

Expedia, Inc.

     67,404         4,785,010   

Express Scripts Holding Co.(a)

     59,488         3,960,711   

First Republic Bank

     53,735         2,727,589   

Garmin Ltd.

     69,844         3,988,092   

Gilead Sciences, Inc.(a)

     73,327         5,755,436   

Google Inc.–Class A(a)

     5,057         2,704,888   

Google Inc.–Class C(a)

     5,057         2,663,320   

Ingersoll-Rand PLC

     57,968         3,466,486   

JPMorgan Chase & Co.

     60,305         3,375,874   

Macy’s, Inc.

     86,170         4,948,743   

Microsoft Corp.

     110,670         4,471,068   

Occidental Petroleum Corp.

     42,660         4,084,695   

QUALCOMM, Inc.

     49,965         3,932,745   

Scripps Networks Interactive Inc.–Class A

     34,088         2,558,986   

Urban Outfitters, Inc.(a)

     133,276         4,751,956   
               107,580,182   

Total Common Stocks & Other Equity Interests
(Cost $244,922,768)

   

      349,126,723   

Money Market Funds–1.91%

  

Liquid Assets Portfolio–Institutional Class(b)

     3,419,722         3,419,722   

Premier Portfolio–Institutional Class(b)

     3,419,722         3,419,722   

Total Money Market Funds
(Cost $6,839,444)

   

      6,839,444   

TOTAL INVESTMENTS–99.67%
(Cost $251,762,212)

   

      355,966,167   

OTHER ASSETS LESS LIABILITIES–0.33%

  

      1,162,015   

NET ASSETS–100.00%

  

    $ 357,128,182   
 

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

NVDR  

– Non-Voting 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, 2014

 

Information Technology

     23.6 % 

Consumer Discretionary

     22.9   

Financials

     13.7   

Health Care

     10.7   

Energy

     9.4   

Industrials

     7.3   

Consumer Staples

     5.9   

Materials

     2.8   

Utilities

     0.8   

Telecommunication Services

     0.7   

Money Market Funds Plus Other Assets Less Liabilities

     2.2   

 

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, 2014

(Unaudited)

 

Assets:

  

Investments, at value (Cost $244,922,768)

   $ 349,126,723   

Investments in affiliated money market funds, at value and cost

     6,839,444   

Total investments, at value (Cost $251,762,212)

     355,966,167   

Foreign currencies, at value (Cost $618,678)

     618,659   

Receivable for:

  

Investments sold

     971,654   

Fund shares sold

     94,767   

Dividends

     929,868   

Investment for trustee deferred compensation and retirement plans

     136,325   

Other assets

     38,132   

Total assets

     358,755,572   

Liabilities:

  

Payable for:

  

Investments purchased

     708,757   

Fund shares reacquired

     309,157   

Accrued fees to affiliates

     275,035   

Accrued trustees’ and officers’ fees and benefits

     2,158   

Accrued other operating expenses

     179,751   

Trustee deferred compensation and retirement plans

     152,532   

Total liabilities

     1,627,390   

Net assets applicable to shares outstanding

   $ 357,128,182   

Net assets consist of:

  

Shares of beneficial interest

   $ 238,551,090   

Undistributed net investment income

     156,595   

Undistributed net realized gain

     14,208,600   

Net unrealized appreciation

     104,211,897   
    $ 357,128,182   

Net Assets:

  

Class A

   $ 319,284,438   

Class B

   $ 6,824,227   

Class C

   $ 26,387,471   

Class Y

   $ 3,487,271   

Class R5

   $ 1,132,508   

Class R6

   $ 12,267   

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

   

Class A

     10,445,991   

Class B

     239,039   

Class C

     924,227   

Class Y

     113,907   

Class R5

     37,187   

Class R6

     403   

Class A:

  

Net asset value per share

   $ 30.57   

Maximum offering price per share

  

(Net asset value of $30.57 ¸ 94.50%)

   $ 32.35   

Class B:

  

Net asset value and offering price per share

   $ 28.55   

Class C:

  

Net asset value and offering price per share

   $ 28.55   

Class Y:

  

Net asset value and offering price per share

   $ 30.62   

Class R5:

  

Net asset value and offering price per share

   $ 30.45   

Class R6:

  

Net asset value and offering price per share

   $ 30.44   
 

 

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, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $230,343)

    $ 3,556,702   

Dividends from affiliated money market funds

      2,406   

Total investment income

      3,559,108   

Expenses:

   

Advisory fees

      1,396,425   

Administrative services fees

      52,843   

Custodian fees

      77,155   

Distribution fees:

   

Class A

      393,354   

Class B

      37,159   

Class C

      127,135   

Transfer agent fees — A, B, C and Y

      444,349   

Transfer agent fees — R5

      26   

Trustees’ and officers’ fees and benefits

      18,954   

Other

      138,203   

Total expenses

      2,685,603   

Less: Fees waived and expense offset arrangement(s)

      (9,130 ) 

Net expenses

      2,676,473   

Net investment income

      882,635   

Realized and unrealized gain (loss) from:

   

Net realized gain (loss) from:

   

Investment securities

      16,162,125   

Foreign currencies

      (2,216 ) 
       16,159,909   

Change in net unrealized appreciation of:

   

Investment securities (net of foreign taxes on holdings of $(51,816))

      6,029,212   

Foreign currencies

      1,379   
       6,030,591   

Net realized and unrealized gain

      22,190,500   

Net increase in net assets resulting from operations

    $ 23,073,135   

 

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, 2014 and the year ended October 31, 2013

(Unaudited)

 

    

April 30,

2014

     

October 31,

2013

  

Operations:

  

Net investment income

   $ 882,635       $ 1,601,274   

Net realized gain

     16,159,909         16,487,121   

Change in net unrealized appreciation

     6,030,591         54,403,225   

Net increase in net assets resulting from operations

     23,073,135         72,491,620   

Distributions to shareholders from net investment income:

     

Class A

     (2,140,604 )       (2,395,341 ) 

Class B

     (4,867 )       (15,637 ) 

Class C

     (15,887 )       (37,417 ) 

Class Y

     (30,510 )       (26,329 ) 

Class R5

     (9,515 )       (4,626 ) 

Class R6

     (139 )       (123 ) 

Total distributions from net investment income

     (2,201,522 )       (2,479,473 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (10,686,961 )       (1,505,256 ) 

Class B

     (275,973 )       (53,432 ) 

Class C

     (900,875 )       (127,872 ) 

Class Y

     (108,786 )       (12,951 ) 

Class R5

     (27,580 )       (2,094 ) 

Class R6

     (402 )       (54 ) 

Total distributions from net realized gains

     (12,000,577 )       (1,701,659 ) 

Share transactions–net:

     

Class A

     (13,976,128 )       (13,001,461 ) 

Class B

     (1,322,323 )       (3,152,701 ) 

Class C

     562,137         (1,434,446 ) 

Class Y

     261,640         177,617   

Class R5

     281,659         306,498   

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

     (14,193,015 )       (17,104,493 ) 

Net increase (decrease) in net assets

     (5,321,979 )       51,205,995   

Net assets:

     

Beginning of period

     362,450,161         311,244,166   

End of period (includes undistributed net investment income of $156,595 and $1,475,482, respectively)

   $ 357,128,182       $ 362,450,161   

Notes to Financial Statements

April 30, 2014

(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 November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue

 

9                         Invesco Global Growth Fund

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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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

 

10                         Invesco Global Growth Fund

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

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated 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. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

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(s) 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, 2015, 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. 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 Invesco continues the fee waiver agreement, it will terminate on June 30, 2015. The fee waiver agreement cannot be terminated during its term. 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, 2016, 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, 2014, the Adviser waived advisory fees of $8,653.

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, 2014, 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, 2014, 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, 2014, 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, 2014, IDI advised the Fund that IDI retained $14,369 in front-end sales commissions from the sale of Class A shares and $17, $1,554 and $224 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $35,134,575 and from Level 2 to Level 1 of $39,291,386, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ —         $ 7,467,253         $ —         $ 7,467,253   

Belgium

     —           4,394,166           —           4,394,166   

Brazil

     15,690,158           —           —           15,690,158   

Canada

     17,104,639           —           —           17,104,639   

China

     10,868,731           —           —           10,868,731   

Denmark

     —           8,702,631           —           8,702,631   

France

     —           12,632,909           —           12,632,909   

Germany

     16,053,574           —           —           16,053,574   

Hong Kong

     —           8,235,113           —           8,235,113   

Indonesia

     4,379,102           —           —           4,379,102   

Israel

     9,584,644           —           —           9,584,644   

Italy

     —           3,092,982           —           3,092,982   

Japan

     11,961,706           3,582,814           —           15,544,520   

Mexico

     3,230,233           —           —           3,230,233   

Netherlands

     —           3,061,860           —           3,061,860   

Singapore

     7,318,891           —           —           7,318,891   

South Korea

     4,278,159           4,842,386           —           9,120,545   

Spain

     —           3,882,512           —           3,882,512   

Sweden

     —           3,867,163                3,867,163   

Switzerland

     2,928,594           20,075,055           —           23,003,649   

Taiwan

     —           5,664,307           —           5,664,307   

Thailand

     —           3,313,798           —           3,313,798   

Turkey

     2,346,487           —           —           2,346,487   

United Kingdom

     2,925,281           40,061,393           —           42,986,674   

United States

     114,419,626           —           —           114,419,626   

Total Investments

   $ 223,089,825         $ 132,876,342         $ —         $ 355,966,167   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2014, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $477.

 

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with 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 GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013.

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, 2014 was $54,543,659 and $77,962,268, 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

   $ 106,249,842   

Aggregate unrealized (depreciation) of investment securities

     (2,133,084 ) 

Net unrealized appreciation of investment securities

   $ 104,116,758   

Cost of investments for tax purposes is $251,849,409.

 

14                         Invesco Global Growth Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2014(a)		      Year ended
October 31, 2013		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     276,699       $ 8,212,422         956,280       $ 26,752,277   

Class B

     7,806         214,449         7,664         190,510   

Class C

     61,498         1,706,248         77,900         1,962,790   

Class Y

     34,958         1,041,592         49,882         1,325,358   

Class R5

     9,026         268,888         11,730         299,943   

Issued as reinvestment of dividends:

           

Class A

     411,588         11,705,557         144,891         3,528,101   

Class B

     10,187         271,391         2,889         66,151   

Class C

     32,091         854,895         6,632         151,871   

Class Y

     3,966         112,890         1,408         34,337   

Class R5

     1,294         36,579         271         6,555   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     39,572         1,175,774         90,938         2,400,034   

Class B

     (42,321 )       (1,175,774 )       (97,048 )       (2,400,034 ) 

Reacquired:

           

Class A

     (1,182,271 )       (35,069,881 )       (1,740,636 )       (45,681,873 ) 

Class B

     (22,772 )       (632,389 )       (41,159 )       (1,009,328 ) 

Class C

     (72,512 )       (1,999,006 )       (144,223 )       (3,549,107 ) 

Class Y

     (30,055 )       (892,842 )       (43,887 )       (1,182,078 ) 

Class R5

     (804 )       (23,808 )       —         —   

Net increase (decrease) in share activity

     (462,050 )     $ (14,193,015 )       (716,468 )     $ (17,104,493 ) 

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 42% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

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 (loss)
to average
net assets		     Portfolio
turnover(d)		  

Class A

  

Six months ended 04/30/14

   $ 29.84      $ 0.08      $ 1.85      $ 1.93      $ (0.20 )    $ (1.00 )    $ (1.20 )    $ 30.57        6.76 %    $ 319,284        1.46 %(e)      1.46 %(e)      0.57 %(e)      16 % 

Year ended 10/31/13

     24.22        0.15        5.82        5.97        (0.22 )      (0.13 )      (0.35 )      29.84        24.96        325,319        1.43        1.47        0.56        29   

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   

Class B

  

Six months ended 04/30/14

     27.87        (0.03 )      1.73        1.70        (0.02 )      (1.00 )      (1.02 )      28.55        6.35        6,824        2.21 (e)      2.21 (e)      (0.18 )(e)      16   

Year ended 10/31/13

     22.64        (0.05 )      5.45        5.40        (0.04 )      (0.13 )      (0.17 )      27.87        24.03        7,975        2.18        2.22        (0.19 )      29   

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   

Class C

  

Six months ended 04/30/14

     27.87        (0.03 )      1.73        1.70        (0.02 )      (1.00 )      (1.02 )      28.55        6.35        26,387        2.21 (e)      2.21 (e)      (0.18 )(e)      16   

Year ended 10/31/13

     22.64        (0.05 )      5.45        5.40        (0.04 )      (0.13 )      (0.17 )      27.87        24.03        25,175        2.18        2.22        (0.19 )      29   

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   

Class Y

  

Six months ended 04/30/14

     29.94        0.12        1.84        1.96        (0.28 )      (1.00 )      (1.28 )      30.62        6.86        3,487        1.21 (e)      1.21 (e)      0.82 (e)      16   

Year ended 10/31/13

     24.29        0.22        5.83        6.05        (0.27 )      (0.13 )      (0.40 )      29.94        25.31        3,144        1.18        1.22        0.81        29   

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   

Class R5

  

Six months ended 04/30/14

     29.82        0.16        1.81        1.97        (0.34 )      (1.00 )      (1.34 )      30.45        6.96        1,133        0.96 (e)      0.96 (e)      1.07 (e)      16   

Year ended 10/31/13

     24.18        0.27        5.80        6.07        (0.30 )      (0.13 )      (0.43 )      29.82        25.51        825        0.99        0.99        1.00        29   

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   

Class R6

  

Six months ended 04/30/14

     29.80        0.16        1.82        1.98        (0.34 )      (1.00 )      (1.34 )      30.44        7.00        12        0.96 (e)      0.96 (e)      1.07 (e)      16   

Year ended 10/31/13

     24.17        0.27        5.79        6.06        (0.30 )      (0.13 )      (0.43 )      29.80        25.52        12        0.99        0.99        1.00        29   

Period 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 for Class A, Class B, Class C, Class Y and Class R5 shares, which were less than $0.005 per share for the fiscal years ended October 31, 2012 and prior.
(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 omitted) of $317,291, $7,493, $25,638, $3,269, $991 and $12 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 September 24, 2012.
(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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class  

Beginning

Account Value

(11/01/13)

     ACTUAL    

HYPOTHETICAL
(5% annual return before

expenses)

    

Annualized
Expense

Ratio

  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,067.60      $ 7.48      $ 1,017.55      $ 7.30        1.46 % 
B     1,000.00        1,063.50        11.31        1,013.84        11.04        2.21   
C     1,000.00        1,063.50        11.31        1,013.84        11.04        2.21   
Y     1,000.00        1,069.00        6.21        1,018.79        6.06        1.21   
R5     1,000.00        1,069.60        4.93        1,020.03        4.81        0.96   
R6     1,000.00        1,070.00        4.93        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, 2013 through April 30, 2014, 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 Global Growth Fund

 

LOGO

 

 

Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its 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, 2014
 

 

 

Invesco Global Opportunities Fund

 

  Nasdaq:
  A: IAOPX  n  C: ICOPX  n  R: IROPX  n  Y: IYOPX  n  R5: IIOPX  n  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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       5.50 %
Class C Shares       5.09  
Class R Shares       5.41  
Class Y Shares       5.64  
Class R5 Shares       5.64  
Class R6 Shares       5.64  
MSCI All Country World Index‚ (Broad Market/Style-Specific Index)       5.28  
Lipper Global Large-Cap Core Funds Index‚ (Peer Group Index)       6.09  

Source(s): ‚Lipper Inc.

The MSCI All Country World Index is a free float-adjusted market capitalization index that is designed to measure equity market performance 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.

 

Average Annual Total Returns

 

  
As of 4/30/14, including maximum applicable sales charges    
Class A Shares        
Inception (8/3/12)     26.02 % 
  1 Year     14.40   
Class C Shares        
Inception (8/3/12)     29.16 % 
  1 Year     19.15   
Class R Shares        
Inception (8/3/12)     29.85 % 
  1 Year     20.78   
Class Y Shares        
Inception (8/3/12)     30.49 % 
  1 Year     21.41   
Class R5 Shares        
Inception (8/3/12)     30.49 % 
  1 Year     21.41   
Class R6 Shares        
Inception     30.49 % 
  1 Year     21.41   

Average Annual Total Returns

 

  
As of 3/31/14, the most recent calendar quarter end, including maximum applicable sales charges    
Class A Shares        
Inception (8/3/12)     27.48 % 
  1 Year     19.18   
Class C Shares        
Inception (8/3/12)     30.87 % 
  1 Year     24.18   
Class R Shares        
Inception (8/3/12)     31.60 % 
  1 Year     25.92   
Class Y Shares        
Inception (8/3/12)     32.22 % 
  1 Year     26.46   
Class R5 Shares        
Inception (8/3/12)     32.22 % 
  1 Year     26.46   
Class R6 Shares        
Inception     32.22 % 
  1 Year     26.57   
 

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 1.37%, 2.12%, 1.62%, 1.12%, 1.12% and 1.12%, 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 4.81%, 5.56%, 5.06%, 4.56%, 4.54% and 4.54%, 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, 2015. See current prospectus for more information.
 

 

2                         Invesco Global Opportunities Fund

 

Letters to Shareholders

 

 

LOGO

     Bruce Crockett

    

Dear Fellow Shareholders:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors

considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

    Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

    Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

    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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

       Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

Also, you can obtain timely updates to help you stay informed about the markets, the economy and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our

blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

    For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

    Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

3                         Invesco Global Opportunities Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–98.41%

  

Australia–2.46%   

Rio Tinto Ltd.

     10,564       $ 608,256   
Cambodia–1.01%   

NagaCorp Ltd.

     274,000         248,805   
China–2.77%   

Baidu, Inc.–ADR(a)

     1,908         293,546   

NetEase, Inc.–ADR

     5,750         391,517   
               685,063   
Finland–0.04%   

Sanitec Corp.(a)

     844         9,737   
France–3.93%   

Remy Cointreau S.A.

     5,659         497,658   

Safran S.A.

     7,021         472,977   
               970,635   
Germany–9.21%   

Beiersdorf AG

     10,530         1,055,594   

SAP AG

     15,127         1,218,009   
               2,273,603   
Hong Kong–7.22%   

Hutchison Whampoa Ltd.

     42,000         575,994   

Samsonite International S.A.

     147,000         466,432   

Standard Chartered PLC

     33,850         739,619   
               1,782,045   
Japan–1.77%   

Sumitomo Mitsui Financial Group, Inc.

     6,800         268,262   

Toyota Motor Corp.

     3,100         167,522   
               435,784   
Netherlands–0.80%   

Nutreco N.V.

     4,223         196,339   
Norway–3.01%   

Statoil ASA

     24,405         743,238   
South Korea–2.47%   

Samsung Electronics Co., Ltd.

     468         610,023   
Spain–1.86%   

Mediaset Espana Comunicacion S.A.(a)

     41,277         458,450   
Switzerland–7.52%   

Novartis AG

     11,105         964,973   

Roche Holding AG

     3,031         890,978   
               1,855,951   
     Shares      Value  
United Kingdom–21.44%   

Booker Group PLC

     234,952       $ 584,509   

British American Tobacco PLC

     11,634         670,644   

BT Group PLC

     57,880         361,966   

DS Smith PLC

     147,081         784,756   

HSBC Holdings PLC

     35,200         357,090   

International Consolidated Airlines Group S.A.(a)

     50,305         344,842   

Resolution Ltd.

     116,791         589,256   

Rolls–Royce Holdings PLC

     35,084         623,218   

Rolls–Royce Holdings PLC–Class C–Preference Shares(a)

     4,701,256         7,937   

Thomas Cook Group PLC(a)

     327,715         969,213   
               5,293,431   
United States–32.90%   

Citigroup Inc.

     24,456         1,171,687   

First Republic Bank

     12,960         657,850   

Google Inc.–Class A(a)

     428         228,929   

Google Inc.–Class C(a)

     436         229,624   

J. C. Penney Co., Inc.(a)

     48,926         416,849   

JPMorgan Chase & Co.

     17,055         954,739   

MasterCard, Inc.–Class A

     10,093         742,340   

McGraw Hill Financial, Inc.

     13,323         984,969   

Mead Johnson Nutrition Co.

     9,027         796,723   

Microsoft Corp.

     21,012         848,885   

United Technologies Corp.

     4,513         534,023   

WESCO International, Inc.(a)

     6,319         554,682   
               8,121,300   

Total Common Stocks & Other Equity Interests
(Cost $21,829,713)

   

      24,292,660   

Money Market Funds–0.05%

  

Liquid Assets Portfolio–Institutional Class(b)

     6,378         6,378   

Premier Portfolio–Institutional Class(b)

     6,378         6,378   

Total Money Market Funds
(Cost $12,756)

   

      12,756   

TOTAL INVESTMENTS–98.46%
(Cost $21,842,469)

   

      24,305,416   

OTHER ASSETS LESS LIABILITIES–1.54%

  

      379,484   

NET ASSETS–100.00%

  

    $ 24,684,900   
 

 

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

 

4                         Invesco Global Opportunities Fund

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, 2014

 

Financials

     19.2 % 

Information Technology

     18.5   

Consumer Staples

     15.4   

Consumer Discretionary

     15.0   

Industrials

     12.7   

Health Care

     7.5   

Materials

     5.6   

Energy

     3.0   

Telecommunication Services

     1.5   

Money Market Funds Plus Other Assets Less Liabilities

     1.6   

 

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, 2014

(Unaudited)

 

 

 

 

Assets:

  

Investments, at value (Cost $21,829,713)

   $ 24,292,660   

Investments in affiliated money market funds, at value and cost

     12,756   

Total investments, at value (Cost $21,842,469)

     24,305,416   

Cash

     7,524   

Foreign currencies, at value (Cost $42,752)

     41,484   

Receivable for:

  

Investments sold

     339,435   

Fund shares sold

     112,922   

Dividends

     115,611   

Investment for trustee deferred compensation and retirement plans

     6,924   

Other assets

     25,355   

Total assets

     24,954,671   

Liabilities:

  

Payable for:

  

Investments purchased

     182,279   

Fund shares reacquired

     29,053   

Accrued fees to affiliates

     4,983   

Accrued trustees’ and officers’ fees and benefits

     1,757   

Accrued other operating expenses

     44,647   

Trustee deferred compensation and retirement plans

     7,052   

Total liabilities

     269,771   

Net assets applicable to shares outstanding

   $ 24,684,900   

Net assets consist of:

  

Shares of beneficial interest

   $ 21,430,268   

Undistributed net investment income

     80,673   

Undistributed net realized gain

     708,837   

Net unrealized appreciation

     2,465,122   
    $ 24,684,900   

Net Assets:

  

Class A

   $ 14,755,554   

Class C

   $ 3,551,756   

Class R

   $ 132,247   

Class Y

   $ 6,215,845   

Class R5

   $ 15,291   

Class R6

   $ 14,207   

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

   

Class A

     968,839   

Class C

     236,117   

Class R

     8,716   

Class Y

     406,678   

Class R5

     1,001   

Class R6

     930   

Class A:

  

Net asset value per share

   $ 15.23   

Maximum offering price per share

  

(Net asset value of $15.23 ¸ 94.50%)

   $ 16.12   

Class C:

  

Net asset value and offering price per share

   $ 15.04   

Class R:

  

Net asset value and offering price per share

   $ 15.17   

Class Y:

  

Net asset value and offering price per share

   $ 15.28   

Class R5:

  

Net asset value and offering price per share

   $ 15.28   

Class R6:

  

Net asset value and offering price per share

   $ 15.28   
 

 

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, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $16,839)

   $ 249,065   

Dividends from affiliated money market funds

     132   

Total investment income

     249,197   

Expenses:

  

Advisory fees

     93,865   

Administrative services fees

     24,795   

Custodian fees

     18,961   

Distribution fees:

  

Class A

     18,145   

Class C

     14,344   

Class R

     293   

Transfer agent fees — A, C, R and Y

     23,004   

Transfer agent fees — R5

     5   

Transfer agent fees — R6

     4   

Trustees’ and officers’ fees and benefits

     12,913   

Registration and filing fees

     34,983   

Professional services fees

     30,600   

Other

     15,863   

Total expenses

     287,775   

Less: Fees waived and expenses reimbursed

     (125,118 ) 

Net expenses

     162,657   

Net investment income

     86,540   

Realized and unrealized gain from:

  

Net realized gain from:

  

Investment securities

     735,632   

Foreign currencies

     5,302   
      740,934   

Change in net unrealized appreciation of:

  

Investment securities

     325,759   

Foreign currencies

     1,482   
      327,241   

Net realized and unrealized gain

     1,068,175   

Net increase in net assets resulting from operations

   $ 1,154,715   

 

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, 2014 and the year ended October 31, 2013

(Unaudited)

 

    

April 30,

2014

     

October 31,

2013

  

Operations:

     

Net investment income

   $ 86,540       $ 83,414   

Net realized gain

     740,934         547,443   

Change in net unrealized appreciation

     327,241         1,936,534   

Net increase in net assets resulting from operations

     1,154,715         2,567,391   

Distributions to shareholders from net investment income:

     

Class A

     (52,016 )       (11,076 ) 

Class C

     (7,371 )       (149 ) 

Class R

     (331 )       (70 ) 

Class Y

     (26,397 )       (10,751 ) 

Class R5

     (72 )       (73 ) 

Class R6

     (67 )       (67 ) 

Total distributions from net investment income

     (86,254 )       (22,186 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (355,660 )       —   

Class C

     (68,538 )       —   

Class R

     (2,483 )       —   

Class Y

     (148,828 )       —   

Class R5

     (409 )       —   

Class R6

     (379 )       —   

Total distributions from net realized gains

     (576,297 )       —   

Share transactions–net:

     

Class A

     3,526,501         7,678,774   

Class C

     2,214,158         1,172,984   

Class R

     91,000         24,088   

Class Y

     674,053         2,981,520   

Net increase in net assets resulting from share transactions

     6,505,712         11,857,366   

Net increase in net assets

     6,997,876         14,402,571   

Net assets:

     

Beginning of period

     17,687,024         3,284,453   

End of period (includes undistributed net investment income of $80,673 and $80,387, respectively)

   $ 24,684,900       $ 17,687,024   

Notes to Financial Statements

April 30, 2014

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

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 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.

 

8                         Invesco Global 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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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.

 

9                         Invesco Global Opportunities 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 (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated 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. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

10                         Invesco Global Opportunities 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(s) 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, 2015, 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 Invesco continues the fee waiver agreement, it will terminate on February 28, 2015. The fee waiver agreement cannot be terminated during its term. 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.

Further, the Adviser has contractually agreed, through at least June 30, 2016, 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, 2014, the Adviser waived advisory fees and reimbursed fund level expenses of $102,105 and reimbursed class level expenses of $14,248, $2,816, $115, $5,825, $5 and $4 of 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, 2014, 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, 2014, 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, 2014, 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, 2014, IDI advised the Fund that IDI retained $10,832 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.

 

11                         Invesco Global Opportunities 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $3,676,229 and from Level 2 to Level 1 of $3,633,460, due to foreign fair value adjustments.

 

     Level 1      Level 2      Level 3      Total  

Australia

   $ —       $ 608,256       $ —       $ 608,256   

Cambodia

     248,805         —         —         248,805   

China

     685,063         —         —         685,063   

Finland

     —         9,737         —         9,737   

France

     497,658         472,977         —         970,635   

Germany

     2,273,603         —         —         2,273,603   

Hong Kong

     1,206,051         575,994         —         1,782,045   

Japan

     268,262         167,522         —         435,784   

Netherlands

     —         196,339         —         196,339   

Norway

     —         743,238         —         743,238   

South Korea

     —         610,023         —         610,023   

Spain

     —         458,450         —         458,450   

Switzerland

     —         1,855,951         —         1,855,951   

United Kingdom

     365,027         4,928,404         —         5,293,431   

United States

     8,134,056         —         —         8,134,056   

Total Investments

   $ 13,678,525       $ 10,626,891       $ —       $ 24,305,416   

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

NOTE 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.

 

12                         Invesco Global Opportunities Fund

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013.

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, 2014 was $15,075,535 and $8,967,388, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 2,536,430   

Aggregate unrealized (depreciation) of investment securities

     (102,212 ) 

Net unrealized appreciation of investment securities

   $ 2,434,218   

Cost of investments for tax purposes is $21,871,198.

NOTE 8—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30,  2014(a)		      Year ended
October 31, 2013		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     639,757       $ 9,654,262         945,762       $ 12,451,560   

Class C

     176,683         2,638,051         89,846         1,225,373   

Class R

     7,876         118,934         1,692         24,088   

Class Y

     48,327         736,508         223,414         3,118,586   

Issued as reinvestment of dividends:

           

Class A

     23,195         337,718         50         547   

Class C

     5,221         75,282         7         80   

Class R

     162         2,351         —         —   

Class Y

     7,113         103,855         —         —   

Reacquired:

           

Class A

     (426,569 )       (6,465,479 )       (369,206 )       (4,773,333 ) 

Class C

     (33,302 )       (499,175 )       (3,702 )       (52,469 ) 

Class R

     (2,015 )       (30,285 )       —         —   

Class Y

     (11,054 )       (166,310 )       (9,623 )       (137,066 ) 

Net increase in share activity

     435,394       $ 6,505,712         878,240       $ 11,857,366   

 

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 39% 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, 15% of the outstanding shares of the Fund are owned by the Adviser.

 

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

Class A

  

Six months ended 04/30/14

   $ 14.90      $ 0.06      $ 0.74      $ 0.80      $ (0.06 )    $ (0.41 )    $ (0.47 )    $ 15.23        5.50 %    $ 14,756        1.36 %(d)      2.42 %(d)      0.76 %(d)      39 % 

Year ended 10/31/13

     10.64        0.13        4.20        4.33        (0.07 )      —        (0.07 )      14.90        40.94        10,912        1.36        4.80        0.97        76   

Period 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 04/30/14

     14.76        0.00        0.73        0.73        (0.04 )      (0.41 )      (0.45 )      15.04        5.09        3,552        2.11 (d)      3.17 (d)      0.01 (d)      39   

Year ended 10/31/13

     10.62        0.03        4.18        4.21        (0.07 )      —        (0.07 )      14.76        39.85        1,292        2.11        5.55        0.22        76   

Period 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 04/30/14

     14.85        0.04        0.74        0.78        (0.05 )      (0.41 )      (0.46 )      15.17        5.41        132        1.61 (d)      2.67 (d)      0.51 (d)      39   

Year ended 10/31/13

     10.63        0.09        4.20        4.29        (0.07 )      —        (0.07 )      14.85        40.59        40        1.61        5.05        0.72        76   

Period 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 04/30/14

     14.94        0.08        0.74        0.82        (0.07 )      (0.41 )      (0.48 )      15.28        5.64        6,216        1.11 (d)      2.17 (d)      1.01 (d)      39   

Year ended 10/31/13

     10.65        0.16        4.20        4.36        (0.07 )      —        (0.07 )      14.94        41.21        5,414        1.11        4.55        1.22        76   

Period 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 04/30/14

     14.94        0.08        0.74        0.82        (0.07 )      (0.41 )      (0.48 )      15.28        5.64        15        1.11 (d)      2.04 (d)      1.01 (d)      39   

Year ended 10/31/13

     10.64        0.16        4.21        4.37        (0.07 )      —        (0.07 )      14.94        41.34        15        1.11        4.53        1.22        76   

Period 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 04/30/14

     14.94        0.08        0.74        0.82        (0.07 )      (0.41 )      (0.48 )      15.28        5.64        14        1.11 (d)      2.04 (d)      1.01 (d)      39   

Year ended 10/31/13

     10.64        0.16        4.21        4.37        (0.07 )      —        (0.07 )      14.94        41.34        14        1.11        4.53        1.22        76   

Period 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 $14,637, $2,893, $118, $5,894, $15 and $14 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 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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class   Beginning
Account Value
(11/01/13)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,055.00      $ 6.93      $ 1,018.05      $ 6.80        1.36 % 
C     1,000.00        1,050.90        10.73        1,014.33        10.54        2.11   
R     1,000.00        1,054.10        8.20        1,016.81        8.05        1.61   
Y     1,000.00        1,056.40        5.66        1,019.29        5.56        1.11   
R5     1,000.00        1,056.40        5.66        1,019.29        5.56        1.11   
R6     1,000.00        1,056.40        5.66        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, 2013 through April 30, 2014, 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.

 

 

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, 2014
 

 

 

Invesco Global Small & Mid Cap Growth Fund

 

  Nasdaq:
  A: AGAAX  n  B: AGABX  n  C: AGACX   n  Y: AGAYX   n  R5: GAIIX
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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       6.89 %
Class B Shares       6.52  
Class C Shares       6.51  
Class Y Shares       7.04  
Class R5 Shares       7.10  
MSCI World Index‚ (Broad Market Index)       6.32  
MSCI World Growth Indexn (Style-Specific Index)       5.30  
Lipper Global Small/Mid-Cap Funds Classification Averagen (Peer Group)       4.40  

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

The MSCI World IndexSM 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 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.

 

 

2                         Invesco Global Small & Mid Cap Growth Fund

Average Annual Total Returns
As of 4/30/14, including maximum applicable sales charges    
Class A Shares          
Inception (9/15/94)       8.69 %
10 Years       9.18  
  5 Years       16.29  
  1 Year       11.48  
Class B Shares          
Inception (9/15/94)       8.76 %
10 Years       9.17  
  5 Years       16.53  
  1 Year       12.14  
Class C Shares          
Inception (8/4/97)       5.87 %
10 Years       9.01  
  5 Years       16.73  
  1 Year       16.07  
Class Y Shares          
10 Years       9.96 %
  5 Years       17.89  
  1 Year       18.29  
Class R5 Shares          
10 Years       10.18 %
  5 Years       18.17  
  1 Year       18.42  
Average Annual Total Returns
As of 3/31/14, the most recent calendar quarter-end, including maximum applicable sales charges    
Class A Shares          
Inception (9/15/94)       8.65 %
10 Years       8.72  
  5 Years       19.04  
  1 Year       12.95  
Class B Shares          
Inception (9/15/94)       8.72 %
10 Years       8.70  
  5 Years       19.30  
  1 Year       13.67  
Class C Shares          
Inception (8/4/97)       5.82 %
10 Years       8.54  
  5 Years       19.51  
  1 Year       17.66  
Class Y Shares          
10 Years       9.49 %
  5 Years       20.70  
  1 Year       19.86  
Class R5 Shares          
10 Years       9.71 %
  5 Years       21.00  
  1 Year       20.05  

sales charge or a CDSC; therefore, performance is at net asset value.

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

 

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 28, 2015. See current prospectus for more information.
 

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 net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Class R5 shares was 1.38%, 2.13%, 2.13%, 1.13% and 0.96%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Class R5 shares was 1.39%, 2.14%, 2.14%, 1.14% and 0.97%, 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

 

 

3                         Invesco Global Small & Mid Cap Growth Fund

 

Letters to Shareholders

 

 

LOGO

     Bruce Crockett

    

Dear Fellow Shareholders:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors

considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

    Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

    Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

    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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

        Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

    Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

    Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

    Also, you can obtain timely updates to help you stay informed about the markets, the economy and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our

blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

    For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

    Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

4                         Invesco Global Small & Mid Cap Growth Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–95.94%

  

Australia–1.41%   

Computershare Ltd.

     779,807       $ 8,980,813   
Belgium–0.62%   

S.A. D’Ieteren N.V.

     86,188         3,985,222   
Brazil–6.02%   

CETIP S.A.–Mercados Organizados

     996,800         12,637,697   

Cielo S.A.

     946,452         16,507,094   

Duratex S.A.

     2,141,913         9,288,861   
               38,433,652   
Canada–9.84%   

Fairfax Financial Holdings Ltd.

     20,671         9,013,386   

MacDonald, Dettwiler and Associates Ltd.

     49,300         3,823,449   

Onex Corp.

     302,723         17,290,566   

Open Text Corp.

     125,290         6,178,763   

Paramount Resources Ltd.–Class A

     296,410         16,129,464   

Precision Drilling Corp.

     496,455         6,454,821   

TransForce, Inc.

     180,000         3,930,109   
               62,820,558   
China–1.91%   

Lee & Man Paper Manufacturing Ltd.

     12,159,000         6,602,612   

NetEase, Inc.–ADR

     82,500         5,617,425   
               12,220,037   
Germany–5.28%   

Brenntag AG

     29,717         5,373,860   

Deutsche Boerse AG

     151,855         11,121,187   

MorphoSys AG

     157,821         13,513,290   

MTU Aero Engines AG

     39,000         3,674,278   
               33,682,615   
Hong Kong–1.69%   

Hongkong Land Holdings Ltd.

     1,545,000         10,815,000   
Indonesia–1.25%   

PT Perusahaan Gas Negara Persero Tbk

     17,335,000         7,983,815   
Ireland–4.39%   

DCC PLC

     366,961         18,829,928   

Shire PLC

     161,020         9,205,833   
               28,035,761   
Israel–0.87%   

Israel Chemicals Ltd.

     624,624         5,544,612   
Italy–1.26%   

Saipem S.p.A.

     299,763         8,041,170   
Japan–2.80%   

EXEDY Corp.

     339,300         9,054,196   

THK Co., Ltd.

     417,300         8,829,305   
               17,883,501   
     Shares      Value  
Netherlands–0.73%   

NXP Semiconductors N.V.(a)

     78,045       $ 4,653,043   
Philippines–1.79%   

Ayala Corp.

     364,019         5,096,429   

Energy Development Corp.

     50,672,100         6,355,330   
               11,451,759   
South Africa–0.52%   

Naspers Ltd.–Class N

     35,056         3,318,646   
Switzerland–4.52%   

Aryzta AG

     217,713         20,096,775   

Foster Wheeler AG(a)

     76,684         2,628,728   

Tecan Group AG

     49,036         6,116,965   
               28,842,468   
Thailand–1.82%   

Siam Commercial Bank PCL (The)

     2,302,100         11,615,566   
Turkey–2.66%   

Haci Omer Sabanci Holding A.S.

     1,770,697         7,482,043   

Koza Altin Isletmeleri A.S.

     130,000         1,295,998   

Tupras-Turkiye Petrol Rafinerileri A.S.

     363,635         8,180,281   
               16,958,322   
Turkmenistan–1.48%   

Dragon Oil PLC

     887,085         9,456,343   
United Kingdom–17.99%   

Aberdeen Asset Management PLC

     611,000         4,518,725   

Bunzl PLC

     355,093         10,102,707   

Chemring Group PLC

     928,643         3,520,272   

Compass Group PLC

     458,704         7,314,441   

HomeServe PLC

     1,650,642         9,413,739   

IG Group Holdings PLC

     1,623,859         17,465,029   

Informa PLC

     1,064,791         8,702,643   

John Wood Group PLC

     575,000         7,636,959   

Lancashire Holdings Ltd.

     637,330         7,532,029   

Micro Focus International PLC

     927,956         12,141,678   

Smiths Group PLC

     396,534         8,956,359   

UBM PLC

     424,848         4,720,496   

Ultra Electronics Holdings PLC

     266,074         7,629,535   

William Hill PLC

     873,541         5,243,610   
               114,898,222   
United States–27.09%   

Actavis PLC(a)

     25,144         5,137,673   

Alliance Data Systems Corp.(a)

     12,619         3,052,536   

Ameriprise Financial, Inc.

     35,337         3,944,669   

AMETEK, Inc.

     68,800         3,627,136   

Amphenol Corp.–Class A

     51,953         4,953,719   

Applied Materials, Inc.

     150,745         2,873,200   
 

 

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

 

5                         Invesco Global Small & Mid Cap Growth Fund

     Shares      Value  
United States–(continued)   

Aspen Technology, Inc.(a)

     92,616       $ 3,981,562   

B/E Aerospace, Inc.(a)

     71,050         6,236,059   

Baker Hughes Inc.

     48,509         3,390,779   

Best Buy Co., Inc.

     115,392         2,992,115   

BioMarin Pharmaceutical Inc.(a)

     14,710         856,563   

Brunswick Corp.

     83,372         3,350,721   

Carlisle Cos. Inc.

     47,105         3,874,386   

Cinemark Holdings, Inc.

     161,260         4,776,521   

Cognex Corp.(a)

     86,804         2,988,662   

Constellation Brands, Inc.–Class A(a)

     28,163         2,248,534   

Delta Air Lines, Inc.

     51,929         1,912,545   

Discover Financial Services

     65,493         3,661,059   

EQT Corp.

     39,819         4,339,873   

Flowserve Corp.

     40,577         2,964,150   

Gartner, Inc.(a)

     45,511         3,137,528   

Gulfport Energy Corp.(a)

     51,240         3,774,851   

Harman International Industries, Inc.

     42,057         4,609,868   

Illumina, Inc.(a)

     20,401         2,771,476   

IntercontinentalExchange Group, Inc.

     22,603         4,620,957   

ITT Corp.

     77,443         3,340,891   

Kansas City Southern

     22,444         2,264,151   

KAR Auction Services Inc.

     91,882         2,736,246   

Kroger Co. (The)

     50,376         2,319,311   

Lennox International Inc.

     41,565         3,484,394   

LKQ Corp.(a)

     212,894         6,199,473   

MasTec Inc.(a)

     85,440         3,381,715   

Mead Johnson Nutrition Co.

     56,586         4,994,280   

Medivation Inc.(a)

     46,030         2,771,466   

Michael Kors Holdings Ltd.(a)

     24,368         2,222,362   
     Shares      Value  
United States–(continued)   

O’Reilly Automotive, Inc.(a)

     26,564       $ 3,952,458   

Omnicare, Inc.

     74,055         4,389,240   

Pandora Media Inc.(a)

     79,100         1,852,522   

Panera Bread Co.–Class A(a)

     16,202         2,478,420   

Pentair Ltd.

     38,357         2,849,542   

PPG Industries, Inc.

     32,930         6,375,907   

Salesforce.com, Inc.(a)

     41,788         2,158,350   

SBA Communications Corp.–
Class A(a)

     49,228         4,418,705   

Stone Energy Corp.(a)

     38,880         1,907,064   

Tesla Motors, Inc.(a)

     11,099         2,307,371   

Tractor Supply Co.

     43,855         2,948,810   

Under Armour, Inc.–Class A(a)

     54,198         2,649,740   

Universal Health Services, Inc.–Class B

     63,007         5,153,342   

Vantiv, Inc.–Class A(a)

     53,051         1,631,318   

Wynn Resorts Ltd.

     20,170         4,112,461   
               172,976,681   

Total Common Stocks & Other Equity Interests
(Cost $405,935,383)

   

      612,597,806   

Money Market Funds–3.62%

  

Liquid Assets Portfolio–Institutional Class(b)

     11,560,566         11,560,566   

Premier Portfolio–Institutional Class(b)

     11,560,567         11,560,567   

Total Money Market Funds
(Cost $23,121,133)

   

      23,121,133   

TOTAL INVESTMENTS–99.56%
(Cost $429,056,516)

   

      635,718,939   

OTHER ASSETS LESS LIABILITIES–0.44%

  

      2,794,826   

NET ASSETS–100.00%

  

    $ 638,513,765   
 

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, 2014

 

Financials

     19.9 % 

Industrials

     18.7   

Consumer Discretionary

     13.3   

Information Technology

     13.2   

Energy

     10.9   

Health Care

     7.8   

Consumer Staples

     4.6   

Materials

     4.6   

Utilities

     2.2   

Telecommunication Services

     0.7   

Money Market Funds Plus Other Assets Less Liabilities

     4.1   

 

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 Assets and Liabilities

April 30, 2014

(Unaudited)

 

 

 

 

Assets:

  

Investments, at value (Cost $405,935,383)

   $ 612,597,806   

Investments in affiliated money market funds, at value and cost

     23,121,133   

Total investments, at value (Cost $429,056,516)

     635,718,939   

Foreign currencies, at value (Cost $702,872)

     711,456   

Receivable for:

  

Investments sold

     2,407,839   

Fund shares sold

     680,016   

Dividends

     1,853,133   

Investment for trustee deferred compensation and retirement plans

     210,095   

Other assets

     30,235   

Total assets

     641,611,713   

Liabilities:

  

Payable for:

  

Investments purchased

     402,159   

Fund shares reacquired

     669,248   

Dividends

     47   

Accrued foreign taxes

     1,287,981   

Accrued fees to affiliates

     386,819   

Accrued trustees’ and officers’ fees and benefits

     2,166   

Accrued other operating expenses

     107,803   

Trustee deferred compensation and retirement plans

     241,725   

Total liabilities

     3,097,948   

Net assets applicable to shares outstanding

   $ 638,513,765   

Net assets consist of:

  

Shares of beneficial interest

   $ 399,708,485   

Undistributed net investment income

     1,226,902   

Undistributed net realized gain

     30,900,647   

Net unrealized appreciation

     206,677,731   
    $ 638,513,765   

Net Assets:

  

Class A

   $ 567,754,231   

Class B

   $ 13,475,406   

Class C

   $ 30,185,214   

Class Y

   $ 14,278,999   

Class R5

   $ 12,819,915   

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

   

Class A

     26,492,124   

Class B

     733,215   

Class C

     1,641,108   

Class Y

     664,821   

Class R5

     600,334   

Class A:

  

Net asset value per share

   $ 21.43   

Maximum offering price per share

  

(Net asset value of $21.43 ¸ 94.50%)

   $ 22.68   

Class B:

  

Net asset value and offering price per share

   $ 18.38   

Class C:

  

Net asset value and offering price per share

   $ 18.39   

Class Y:

  

Net asset value and offering price per share

   $ 21.48   

Class R5:

  

Net asset value and offering price per share

   $ 21.35   
 

 

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 Operations

For the six months ended April 30, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $325,084)

   $ 5,735,828   

Dividends from affiliated money market funds

     7,579   

Total investment income

     5,743,407   

Expenses:

  

Advisory fees

     2,437,611   

Administrative services fees

     81,436   

Custodian fees

     104,092   

Distribution fees:

  

Class A

     682,036   

Class B

     72,112   

Class C

     144,507   

Transfer agent fees — A, B, C and Y

     628,109   

Transfer agent fees — R5

     7,089   

Trustees’ and officers’ fees and benefits

     23,417   

Other

     134,037   

Total expenses

     4,314,446   

Less: Fees waived and expense offset arrangement(s)

     (26,096 ) 

Net expenses

     4,288,350   

Net investment income

     1,455,057   

Realized and unrealized gain from:

  

Net realized gain from:

  

Investment securities

     31,822,785   

Foreign currencies

     50,250   
      31,873,035   

Change in net unrealized appreciation of:

  

Investment securities (net of foreign taxes on holdings of $56,337)

     8,623,422   

Foreign currencies

     27,949   
      8,651,371   

Net realized and unrealized gain

     40,524,406   

Net increase in net assets resulting from operations

   $ 41,979,463   

 

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

 

8                         Invesco Global Small & Mid Cap Growth Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

 

     April 30,
2014		      October 31,
2013		  

Operations:

  

   

Net investment income

   $ 1,455,057       $ 4,842,929   

Net realized gain

     31,873,035         52,924,561   

Change in net unrealized appreciation

     8,651,371         78,871,723   

Net increase in net assets resulting from operations

     41,979,463         136,639,213   

Distributions to shareholders from net investment income:

     

Class A

     (4,339,708 )       (4,227,552 ) 

Class B

     (31,051 )       (57,975 ) 

Class C

     (59,285 )       (77,135 ) 

Class Y

     (107,366 )       (79,225 ) 

Class R5

     (263,504 )       (261,890 ) 

Total distributions from net investment income

     (4,800,914 )       (4,703,777 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (46,022,180 )       (6,624,317 ) 

Class B

     (1,462,237 )       (269,646 ) 

Class C

     (2,791,809 )       (358,765 ) 

Class Y

     (882,116 )       (100,004 ) 

Class R5

     (1,885,173 )       (280,332 ) 

Total distributions from net realized gains

     (53,043,515 )       (7,633,064 ) 

Share transactions–net:

     

Class A

     30,619,354         (40,619,630 ) 

Class B

     (1,320,895 )       (5,498,523 ) 

Class C

     2,682,966         787,053   

Class Y

     3,894,020         1,252,481   

Class R5

     (9,063,218 )       (2,525,975 ) 

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

     26,812,227         (46,604,594 ) 

Net increase in net assets

     10,947,261         77,697,778   

Net assets:

     

Beginning of period

     627,566,504         549,868,726   

End of period (includes undistributed net investment income of $1,226,902 and $4,572,759, respectively)

   $ 638,513,765       $ 627,566,504   

Notes to Financial Statements

April 30, 2014

(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

 

9                         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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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 Small & Mid Cap 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 (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 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. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

11                         Invesco Global Small & Mid Cap 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. 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(s) 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, 2015, 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 Invesco continues the fee waiver agreement, it will terminate on June 30, 2015. The fee waiver agreement cannot be terminated during its term. 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, 2016, 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, 2014, the Adviser waived advisory fees of $25,690.

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, 2014, 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, 2014, 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, 2014, 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, 2014, IDI advised the Fund that IDI retained $45,057 in front-end sales commissions from the sale of Class A shares and $290, $3,230 and $1,028 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

For the six months ended April 30, 2014, the Fund incurred $614 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.

 

12                         Invesco Global Small & Mid Cap 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $75,516,815 and from Level 2 to Level 1 of $77,787,969, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ —         $ 8,980,813         $ —         $ 8,980,813   

Belgium

     3,985,222           —           —           3,985,222   

Brazil

     38,433,652           —           —           38,433,652   

Canada

     62,820,558           —           —           62,820,558   

China

     12,220,037           —           —           12,220,037   

Germany

     30,008,337           3,674,278           —           33,682,615   

Hong Kong

     10,815,000           —           —           10,815,000   

Indonesia

     7,983,815           —           —           7,983,815   

Ireland

     —           28,035,761           —           28,035,761   

Israel

     —           5,544,612           —           5,544,612   

Italy

     —           8,041,170           —           8,041,170   

Japan

     17,883,501           —           —           17,883,501   

Netherlands

     4,653,043           —           —           4,653,043   

Philippines

     11,451,759           —           —           11,451,759   

South Africa

     —           3,318,646           —           3,318,646   

Switzerland

     28,842,468           —           —           28,842,468   

Thailand

     11,615,566           —           —           11,615,566   

Turkey

     9,476,279           7,482,043           —           16,958,322   

Turkmenistan

     —           9,456,343           —           9,456,343   

United Kingdom

     29,087,446           85,810,776           —           114,898,222   

United States

     196,097,814           —           —           196,097,814   

Total Investments

   $ 475,374,497         $ 160,344,442         $ —         $ 635,718,939   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2014, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $406.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

 

13                         Invesco Global Small & Mid Cap 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 GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013.

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, 2014 was $88,491,197 and $101,892,676, 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

   $ 217,151,628   

Aggregate unrealized (depreciation) of investment securities

     (11,436,760 ) 

Net unrealized appreciation of investment securities

   $ 205,714,868   

Cost of investments for tax purposes is $430,004,071.

 

14                         Invesco Global Small & Mid Cap Growth Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2014(a)		      Year ended
October 31, 2013		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     1,074,305       $ 22,280,883         1,296,133       $ 25,675,345   

Class B

     12,988         233,530         32,838         561,476   

Class C

     169,558         3,033,881         275,489         4,731,339   

Class Y

     236,179         4,900,296         166,646         3,283,683   

Class R5

     32,191         669,214         99,367         1,906,509   

Issued as reinvestment of dividends:

           

Class A

     2,329,609         46,126,256         593,803         10,599,391   

Class B

     84,985         1,447,288         20,760         323,648   

Class C

     158,301         2,697,462         27,510         429,152   

Class Y

     40,273         798,206         9,591         171,400   

Class R5

     57,798         1,138,611         13,878         246,478   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     98,040         2,038,366         182,103         3,563,679   

Class B

     (114,095 )       (2,038,366 )       (209,171 )       (3,563,679 ) 

Reacquired:

           

Class A

     (1,913,681 )       (39,826,151 )       (4,142,993 )       (80,458,045 ) 

Class B

     (53,899 )       (963,347 )       (167,221 )       (2,819,968 ) 

Class C

     (171,937 )       (3,048,377 )       (255,740 )       (4,373,438 ) 

Class Y

     (87,182 )       (1,804,482 )       (113,951 )       (2,202,602 ) 

Class R5

     (512,453 )       (10,871,043 )       (237,867 )       (4,678,962 ) 

Net increase (decrease) in share activity

     1,440,980       $ 26,812,227         (2,408,825 )     $ (46,604,594 ) 

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 32% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

15                         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(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 04/30/14

   $ 22.11      $ 0.05      $ 1.31      $ 1.36      $ (0.18 )    $ (1.86 )    $ (2.04 )    $ 21.43        6.89 %    $ 567,754        1.34 %(e)      1.35 %(e)      0.51 %(e)      6 % 

Year ended 10/31/13

     17.87        0.17        4.48        4.65        (0.16 )      (0.25 )      (0.41 )      22.11        26.56        550,526        1.37        1.38        0.87        26   

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   

Class B

                            

Six months ended 04/30/14

     19.18        (0.02 )      1.12        1.10        (0.04 )      (1.86 )      (1.90 )      18.38        6.52        13,475        2.09 (e)      2.10 (e)      (0.24 )(e)      6   

Year ended 10/31/13

     15.57        0.02        3.89        3.91        (0.05 )      (0.25 )      (0.30 )      19.18        25.58        15,405        2.12        2.13        0.12        26   

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   

Class C

                            

Six months ended 04/30/14

     19.19        (0.02 )      1.12        1.10        (0.04 )      (1.86 )      (1.90 )      18.39        6.51        30,185        2.09 (e)      2.10 (e)      (0.24 )(e)      6   

Year ended 10/31/13

     15.58        0.02        3.89        3.91        (0.05 )      (0.25 )      (0.30 )      19.19        25.56        28,505        2.12        2.13        0.12        26   

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   

Class Y

                            

Six months ended 04/30/14

     22.18        0.08        1.31        1.39        (0.23 )      (1.86 )      (2.09 )      21.48        7.04        14,279        1.09 (e)      1.10 (e)      0.76 (e)      6   

Year ended 10/31/13

     17.92        0.22        4.49        4.71        (0.20 )      (0.25 )      (0.45 )      22.18        26.87        10,546        1.12        1.13        1.12        26   

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   

Class R5

                            

Six months ended 04/30/14

     22.08        0.09        1.30        1.39        (0.26 )      (1.86 )      (2.12 )      21.35        7.10        12,820        0.95 (e)      0.96 (e)      0.90 (e)      6   

Year ended 10/31/13

     17.85        0.25        4.46        4.71        (0.23 )      (0.25 )      (0.48 )      22.08        27.05        22,585        0.95        0.96        1.29        26   

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   

 

(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 the fiscal years ended October 31, 2012 and prior.
(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 $550,151, $14,542, $29,141, $11,780 and $24,442 for Class A, Class B, Class C, Class Y and Class R5 shares, respectively.

 

16                         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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class   Beginning
Account Value
(11/01/13)		     ACTUAL    

HYPOTHETICAL

(5% annual return before
expenses)

     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,068.90      $ 6.87      $ 1,018.15      $ 6.71        1.34 % 
B     1,000.00        1,065.20        10.70        1,014.43        10.44        2.09   
C     1,000.00        1,065.10        10.70        1,014.43        10.44        2.09   
Y     1,000.00        1,070.40        5.60        1,019.39        5.46        1.09   
R5     1,000.00        1,071.00        4.88        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, 2013 through April 30, 2014, 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 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.

 

 

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, 2014
 

 

 

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

 

 

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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       4.15 %
Class B Shares       3.71  
Class C Shares       3.82  
Class R Shares       4.06  
Class Y Shares       4.26  
Investor Class Shares       4.18  
Class R5 Shares       4.46  
Class R6 Shares       4.48  
MSCI EAFE Index‚ (Broad Market/Style-Specific Index)       4.44  
Lipper International Large-Cap Core Funds Indexn (Peer Group Index)       4.23  

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

The MSCI EAFE® Index 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 4/30/14, including maximum applicable sales charges

 

   

Class A Shares          
Inception (3/28/02)       4.49 %
10 Years       4.46  
  5 Years       8.47  
  1 Year       2.72  
Class B Shares          
Inception (3/28/02)       4.54 %
10 Years       4.43  
  5 Years       8.61  
  1 Year       2.95  
Class C Shares          
Inception (2/14/00)       1.98 %
10 Years       4.29  
  5 Years       8.89  
  1 Year       6.98  
Class R Shares          
Inception (11/24/03)       5.60 %
10 Years       4.82  
  5 Years       9.44  
  1 Year       8.51  
Class Y Shares          
10 Years       5.22 %
  5 Years       9.97  
  1 Year       9.03  
Investor Class Shares          
Inception (10/28/98)       4.01 %
10 Years       5.08  
  5 Years       9.70  
  1 Year       8.76  
Class R5 Shares          
Inception (4/30/04)       5.70 %
10 Years       5.70  
  5 Years       10.38  
  1 Year       9.33  
Class R6 Shares          
10 Years       5.18 %
  5 Years       9.91  
  1 Year       9.45  

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

Average Annual Total Returns
As of 3/31/14, the most recent calendar quarter end, including maximum applicable sales charges    
Class A Shares          
Inception (3/28/02)       4.40 %
10 Years       4.12  
  5 Years       10.76  
  1 Year       5.97  
Class B Shares          
Inception (3/28/02)       4.45 %
10 Years       4.11  
  5 Years       10.94  
  1 Year       6.24  
Class C Shares          
Inception (2/14/00)       1.89 %
10 Years       3.95  
  5 Years       11.19  
  1 Year       10.25  
Class R Shares          
Inception (11/24/03)       5.48 %
10 Years       4.47  
  5 Years       11.76  
  1 Year       11.72  
Class Y Shares          
10 Years       4.86 %
  5 Years       12.30  
  1 Year       12.33  
Investor Class Shares          
Inception (10/28/98)       3.93 %
10 Years       4.72  
  5 Years       12.03  
  1 Year       12.04  
Class R5 Shares          
Inception (4/30/04)       5.58 %
  5 Years       12.73  
  1 Year       12.69  
Class R6 Shares          
10 Years       4.82 %
  5 Years       12.24  
  1 Year       12.71  

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 R, Class Y, Investor Class, Class R5 and Class R6 shares was 1.65%, 2.40%, 2.40%, 1.90%, 1.40%, 1.65%, 1.04% and 1.03%, 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:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

    After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives,

short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

    Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

    Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

    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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

      Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

    Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

    Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

    Also, you can obtain timely updates to help you stay informed about the markets, the

economy and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

    For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

    Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

4                         Invesco International Core Equity Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–96.68%

  

Australia–2.71%   

Australia and New Zealand Banking Group Ltd.

     41,325       $ 1,327,394   

Navitas Ltd.

     62,273         427,289   

Woodside Petroleum Ltd.

     51,027         1,937,398   
               3,692,081   
Canada–11.64%   

Agrium Inc.

     22,462         2,157,459   

Aimia Inc.

     34,872         561,579   

CAE, Inc.

     45,479         600,439   

Hudson’s Bay Co.

     79,014         1,249,373   

Intact Financial Corp.

     39,543         2,596,633   

Metro Inc.

     20,339         1,253,743   

Peyto Exploration & Development Corp.(a)

     43,200         1,592,803   

Suncor Energy, Inc.

     60,690         2,341,216   

Toronto-Dominion Bank (The)

     28,430         1,367,805   

Vermilion Energy, Inc.

     31,845         2,119,029   
               15,840,079   
China–1.02%   

China Mobile Ltd.

     146,000         1,387,894   
Finland–1.79%   

Sampo Oyj–Class A(a)

     48,887         2,434,581   
France–12.53%   

BNP Paribas S.A.

     9,773         734,923   

Bouygues S.A.(a)

     45,770         2,058,246   

Casino Guichard-Perrachon S.A.

     11,000         1,404,183   

Danone

     35,425         2,617,779   

Edenred

     39,994         1,348,808   

Lafarge S.A.

     5,364         490,852   

LVMH Moet Hennessy Louis Vuitton S.A.

     14,481         2,847,685   

Orpea

     9,878         717,802   

Publicis Groupe S.A.

     9,346         796,928   

Sanofi(a)

     37,390         4,031,463   
               17,048,669   
Germany–6.67%   

Bayer AG(a)

     13,523         1,876,046   

Daimler AG

     17,100         1,583,024   

MTU Aero Engines AG

     4,651         438,181   

Muenchener Rueckversicherungs-Gesellschaft AG(a)

     8,529         1,969,483   

SAP AG

     25,109         2,021,749   

Siemens AG

     9,014         1,187,987   
               9,076,470   
Ireland–2.50%   

CRH PLC

     51,014         1,486,003   

Shire PLC–ADR

     11,159         1,916,558   
               3,402,561   
     Shares      Value  
Israel–1.46%   

Teva Pharmaceutical Industries Ltd.–ADR

     40,742       $ 1,990,654   
Italy–2.08%   

Fiat S.p.A.(b)

     113,362         1,373,991   

Prada S.p.A.

     182,000         1,458,349   
               2,832,340   
Japan–10.29%   

Asahi Group Holdings, Ltd.

     68,300         1,886,626   

ASICS Corp.

     34,300         667,345   

KDDI Corp.

     21,400         1,139,184   

Mitsubishi Corp.

     52,300         935,189   

Mitsubishi UFJ Financial Group, Inc.

     201,600         1,068,837   

Nintendo Co., Ltd.

     12,000         1,260,687   

Nissan Motor Co., Ltd.

     241,500         2,071,755   

NTT DoCoMo, Inc.(a)

     79,100         1,255,015   

Sumitomo Corp.

     117,500         1,525,213   

Suruga Bank Ltd.

     24,000         411,308   

Toyota Motor Corp.

     33,100         1,788,705   
               14,009,864   
Netherlands–5.38%   

Heineken N.V.(a)

     37,117         2,574,621   

ING Groep N.V.(b)

     137,980         1,970,994   

Koninklijke Philips N.V.

     28,198         905,185   

Nutreco N.V.

     40,093         1,864,035   
               7,314,835   
Singapore–2.51%   

Avago Technologies Ltd.

     23,520         1,493,520   

DBS Group Holdings Ltd.

     142,000         1,923,451   
               3,416,971   
Spain–0.53%   

Acciona S.A.

     8,818         718,208   
Sweden–4.15%   

Sandvik AB

     193,001         2,737,244   

SKF AB–Class B(a)

     67,502         1,750,350   

Svenska Handelsbanken AB–Class A

     23,160         1,166,558   
               5,654,152   
Switzerland–8.67%   

ABB Ltd.

     77,618         1,870,099   

Novartis AG–ADR

     32,163         2,796,251   

Roche Holding AG

     8,466         2,488,623   

Swisscom AG

     2,400         1,460,204   

TE Connectivity Ltd.

     20,335         1,199,358   

UBS AG

     94,696         1,979,557   
               11,794,092   
Taiwan–1.60%   

Taiwan Semiconductor Manufacturing Co. Ltd.

     552,000         2,173,691   
 

 

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

 

5                         Invesco International Core Equity Fund

     Shares      Value  
United Kingdom–16.45%   

British American Tobacco PLC

     30,317       $ 1,747,629   

British Sky Broadcasting Group PLC

     118,530         1,764,370   

Diageo PLC

     65,481         2,009,275   

Imperial Tobacco Group PLC

     35,484         1,534,387   

Kingfisher PLC

     184,525         1,306,917   

Liberty Global PLC–Series A(b)

     28,321         1,127,742   

Liberty Global PLC–Series C(b)

     28,321         1,088,376   

National Grid PLC

     85,277         1,210,095   

Rio Tinto PLC

     56,791         3,086,910   

Royal Dutch Shell PLC–ADR

     33,107         2,606,845   

SABMiller PLC

     30,270         1,651,266   

Schroders PLC

     13,901         601,669   

Standard Chartered PLC

     122,051         2,644,088   
               22,379,569   
United States–4.70%   

ACE Ltd.

     12,113         1,239,402   

Aon PLC

     31,389         2,664,298   

Eaton Corp. PLC

     16,276         1,182,289   

Schlumberger Ltd.

     12,902         1,310,198   
               6,396,187   

Total Common Stocks & Other Equity Interests
(Cost $123,316,991)

   

      131,562,898   
     Shares      Value  

Money Market Funds–3.16%

  

Liquid Assets Portfolio–Institutional Class(c)

     2,151,730       $ 2,151,730   

Premier Portfolio–
Institutional Class(c)

     2,151,730         2,151,730   

Total Money Market Funds
(Cost $4,303,460)

   

      4,303,460   

TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–99.84%
(Cost $127,620,451)

    

      135,866,358   

Investments Purchased with Cash
Collateral from Securities on Loan

   

Money Market Funds–10.47%

  

   

Liquid Assets Portfolio–
Institutional Class
(Cost $14,251,847)(c)(d)

     14,251,847         14,251,847   

TOTAL INVESTMENTS–110.31%
(Cost $141,872,298)

   

      150,118,205   

OTHER ASSETS LESS LIABILITIES–(10.31)%

  

      (14,040,921 ) 

NET ASSETS–100.00%

  

    $ 136,077,284   
 

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

Notes to Schedule of Investments:

 

(a)  All or a portion of this security was out on loan at April 30, 2014.
(b)  Non-income producing security.
(c)  The money market fund and the Fund are affiliated by having the same investment adviser.
(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

 

Counterparty    Gross
Amount of
Securities on
Loan at Value		      Cash
Collateral
Received for
Securities
Loaned*		      Net
Amount		  

State Street Bank and Trust Co.

    $ 13,602,062       $ (13,602,062 )     $ —   

 

  * Amount does not include excess collateral received.

Portfolio Composition

By sector, based on Net Assets

as of April 30, 2014

 

Financials

     19.2 % 

Consumer Discretionary

     14.8   

Consumer Staples

     13.6   

Industrials

     12.2   

Health Care

     11.6   

Energy

     8.7   

Information Technology

     6.0   

Materials

     5.3   

Telecommunication Services

     3.9   

Utilities

     1.4   

Money Market Funds Plus Other Assets Less Liabilities

     3.3   

 

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

 

6                         Invesco International Core Equity Fund

Statement of Assets and Liabilities

April 30, 2014

(Unaudited)

 

Assets:

  

Investments, at value (Cost $123,316,991)*

   $ 131,562,898   

Investments in affiliated money market funds, at value and cost

     18,555,307   

Total investments, at value (Cost $141,872,298)

     150,118,205   

Foreign currencies, at value (Cost $137,723)

     137,107   

Receivable for:

  

Investments sold

     399,043   

Fund shares sold

     74,340   

Dividends

     793,707   

Investment for trustee deferred compensation and retirement plans

     100,198   

Other assets

     50,828   

Total assets

     151,673,428   

Liabilities:

  

Payable for:

  

Investments purchased

     813,205   

Fund shares reacquired

     290,433   

Collateral upon return of securities loaned

     14,251,847   

Accrued fees to affiliates

     66,656   

Accrued trustees’ and officers’ fees and benefits

     1,623   

Accrued other operating expenses

     59,078   

Trustee deferred compensation and retirement plans

     113,302   

Total liabilities

     15,596,144   

Net assets applicable to shares outstanding

   $ 136,077,284   

Net assets consist of:

  

Shares of beneficial interest

   $ 137,811,281   

Undistributed net investment income

     385,897   

Undistributed net realized gain (loss)

     (10,425,038 ) 

Net unrealized appreciation

     8,305,144   
    $ 136,077,284   

Net Assets:

  

Class A

   $ 42,999,419   

Class B

   $ 2,062,386   

Class C

   $ 12,101,918   

Class R

   $ 2,063,474   

Class Y

   $ 1,911,266   

Investor Class

   $ 13,609,193   

Class R5

   $ 2,812,935   

Class R6

   $ 58,516,693   

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

   

Class A

     3,667,614   

Class B

     175,020   

Class C

     1,055,207   

Class R

     175,490   

Class Y

     160,455   

Investor Class

     1,142,531   

Class R5

     240,835   

Class R6

     5,010,201   

Class A:

  

Net asset value per share

   $ 11.72   

Maximum offering price per share

  

(Net asset value of $11.72 ¸ 94.50%)

   $ 12.40   

Class B:

  

Net asset value and offering price per share

   $ 11.78   

Class C:

  

Net asset value and offering price per share

   $ 11.47   

Class R:

  

Net asset value and offering price per share

   $ 11.76   

Class Y:

  

Net asset value and offering price per share

   $ 11.91   

Investor Class:

  

Net asset value and offering price per share

   $ 11.91   

Class R5:

  

Net asset value and offering price per share

   $ 11.68   

Class R6:

  

Net asset value and offering price per share

   $ 11.68   

 

* At April 30, 2014, securities with an aggregate value of $13,602,062 were on loan to brokers.
 

 

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

 

7                         Invesco International Core Equity Fund

Statement of Operations

For the six months ended April 30, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $162,237)

   $ 2,016,391   

Dividends from affiliated money market funds (includes securities lending income of $33,106)

     34,048   

Total investment income

     2,050,439   

Expenses:

  

Advisory fees

     496,576   

Administrative services fees

     24,795   

Custodian fees

     25,390   

Distribution fees:

  

Class A

     51,989   

Class B

     11,170   

Class C

     60,234   

Class R

     5,207   

Investor Class

     17,013   

Transfer agent fees — A, B, C, R, Y and Investor

     124,749   

Transfer agent fees — R5

     174   

Transfer agent fees — R6

     563   

Trustees’ and officers’ fees and benefits

     14,621   

Other

     115,511   

Total expenses

     947,992   

Less: Fees waived and expense offset arrangement(s)

     (2,943 ) 

Net expenses

     945,049   

Net investment income

     1,105,390   

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Investment securities (net of foreign taxes of $9,490)

     7,316,893   

Foreign currencies

     (55,237 ) 
      7,261,656   

Change in net unrealized appreciation (depreciation) of:

  

Investment securities (net of foreign taxes on holdings of $9,426)

     (2,779,856 ) 

Foreign currencies

     12,808   
      (2,767,048 ) 

Net realized and unrealized gain

     4,494,608   

Net increase in net assets resulting from operations

   $ 5,599,998   

 

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

 

8                         Invesco International Core Equity Fund

Statement of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

 

     April 30,
2014		      October 31,
2013		  

Operations:

  

   

Net investment income

   $ 1,105,390       $ 2,579,095   

Net realized gain

     7,261,656         37,098,687   

Change in net unrealized appreciation (depreciation)

     (2,767,048 )       (1,291,216 ) 

Net increase in net assets resulting from operations

     5,599,998         38,386,566   

Distributions to shareholders from net investment income:

     

Class A

     (699,534 )       (710,340 ) 

Class B

     (22,302 )       (30,084 ) 

Class C

     (119,182 )       (118,668 ) 

Class R

     (29,524 )       (31,854 ) 

Class Y

     (25,535 )       (28,913 ) 

Investor Class

     (234,807 )       (255,659 ) 

Class R5

     (67,893 )       (197,847 ) 

Class R6

     (1,303,221 )       (5,230,104 ) 

Total distributions from net investment income

     (2,501,998 )       (6,603,469 ) 

Share transactions–net:

     

Class A

     (717,496 )       (2,345,965 ) 

Class B

     (479,704 )       (1,013,721 ) 

Class C

     (684,065 )       (1,189,913 ) 

Class R

     (10,174 )       (302,488 ) 

Class Y

     569,876         (321,805 ) 

Investor Class

     (1,430,112 )       (1,607,037 ) 

Class R5

     (255,994 )       (5,431,002 ) 

Class R6

     (86,191 )       (166,619,388 ) 

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

     (3,093,860 )       (178,831,319 ) 

Net increase (decrease) in net assets

     4,140         (147,048,222 ) 

Net assets:

     

Beginning of period

     136,073,144         283,121,366   

End of period (includes undistributed net investment income of $385,897 and $1,782,505, respectively)

   $ 136,077,284       $ 136,073,144   

Notes to Financial Statements

April 30, 2014

(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 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 Core Equity 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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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 International Core Equity 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 (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated 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. 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 failed 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.
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.

 

11                         Invesco International Core Equity Fund

K. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L. Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.

NOTE 2—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(s) 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, 2015, 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 Invesco continues the fee waiver agreement, it will terminate on June 30, 2015. The fee waiver agreement cannot be terminated during its term. 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, 2016, 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, 2014, the Adviser waived advisory fees of $2,816.

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, 2014, 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, 2014, 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,

 

12                         Invesco International Core Equity Fund

including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2014, 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, 2014, IDI advised the Fund that IDI retained $4,000 in front-end sales commissions from the sale of Class A shares and $12, $622 and $165 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $7,265,385 and from Level 2 to Level 1 of $7,389,042, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ —         $ 3,692,081         $ —         $ 3,692,081   

Canada

     15,840,079           —           —           15,840,079   

China

     1,387,894           —           —           1,387,894   

Finland

     —           2,434,581           —           2,434,581   

France

     6,972,541           10,076,128           —           17,048,669   

Germany

     8,638,289           438,181           —           9,076,470   

Ireland

     1,916,558           1,486,003           —           3,402,561   

Israel

     1,990,654           —           —           1,990,654   

Italy

     —           2,832,340           —           2,832,340   

Japan

     10,334,533           3,675,331           —           14,009,864   

Netherlands

     2,574,621           4,740,214           —           7,314,835   

Singapore

     1,493,520           1,923,451           —           3,416,971   

Spain

     —           718,208           —           718,208   

Sweden

     —           5,654,152           —           5,654,152   

Switzerland

     5,975,166           5,818,926           —           11,794,092   

Taiwan

     —           2,173,691           —           2,173,691   

United Kingdom

     8,042,333           14,337,236           —           22,379,569   

United States

     24,951,494           —           —           24,951,494   

Total Investments

   $ 90,117,682         $ 60,000,523         $ —         $ 150,118,205   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2014, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $127.

 

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with 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 GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013, which expires as follows:

 

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

October 31, 2017

   $ 11,001,492         $ —         $ 11,001,492   

Not subject to expiration

     4,572,292           1,560,686           6,132,978   
    $ 15,573,784         $ 1,560,686         $ 17,134,470   

 

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment 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, 2014 was $108,162,680 and $111,168,613, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 10,075,990   

Aggregate unrealized (depreciation) of investment securities

     (2,382,306 ) 

Net unrealized appreciation of investment securities

   $ 7,693,684   

Cost of investments for tax purposes is $142,424,521.

 

14                         Invesco International Core Equity Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2014(a)		      Year ended
October 31, 2013		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     213,748       $ 2,410,963         555,347       $ 5,942,173   

Class B

     5,789         64,514         17,830         190,884   

Class C

     69,259         764,041         186,878         1,971,690   

Class R

     53,559         604,843         51,394         545,008   

Class Y

     83,824         958,954         40,986         443,049   

Investor Class

     25,923         296,079         77,150         849,117   

Class R5

     5,799         65,930         5,211         62,790   

Class R6

     141,123         1,579,401         303,590         3,190,475   

Issued as reinvestment of dividends:

           

Class A

     61,809         668,156         67,198         679,375   

Class B

     2,006         21,844         2,866         29,204   

Class C

     10,054         106,576         10,612         105,270   

Class R

     2,721         29,524         3,138         31,854   

Class Y

     2,057         22,564         2,676         27,450   

Investor Class

     20,654         226,785         24,114         247,648   

Class R5

     6,302         67,746         19,646         197,834   

Class R6

     121,343         1,303,221         519,891         5,230,104   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     30,474         345,684         63,299         673,135   

Class B

     (30,304 )       (345,684 )       (63,015 )       (673,135 ) 

Reacquired:

           

Class A

     (366,853 )       (4,142,299 )       (913,757 )       (9,640,648 ) 

Class B

     (19,410 )       (220,378 )       (53,237 )       (560,674 ) 

Class C

     (140,035 )       (1,554,682 )       (318,934 )       (3,266,873 ) 

Class R

     (56,534 )       (644,541 )       (82,934 )       (879,350 ) 

Class Y

     (35,667 )       (411,642 )       (74,071 )       (792,304 ) 

Investor Class

     (169,869 )       (1,952,976 )       (250,611 )       (2,703,802 ) 

Class R5

     (34,236 )       (389,670 )       (536,200 )       (5,691,626 ) 

Class R6

     (263,963 )       (2,968,813 )       (16,433,366 )       (175,039,967 ) 

Net increase (decrease) in share activity

     (260,427 )     $ (3,093,860 )       (16,774,299 )     $ (178,831,319 ) 

 

(a)  47% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco.

 

15                         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		     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 04/30/14

   $ 11.45      $ 0.08      $ 0.38      $ 0.46      $ (0.19 )    $ 11.72        4.15 %    $ 42,999        1.61 %(e)      1.61 %(e)      1.49 %(e)      84 % 

Year ended 10/31/13

     9.87        0.13        1.63        1.76        (0.18 )      11.45        18.11        42,703        1.65        1.65        1.20        25   

Year ended 10/31/12

     10.02        0.18        (0.05 )      0.13        (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 )      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 )      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 )      10.34        24.35        61,810        1.62        1.62        1.63        43   

Class B

  

Six months ended 04/30/14

     11.47        0.04        0.38        0.42        (0.11 )      11.78        3.71        2,062        2.36 (e)      2.36 (e)      0.74 (e)      84   

Year ended 10/31/13

     9.87        0.05        1.65        1.70        (0.10 )      11.47        17.35        2,488        2.40        2.40        0.45        25   

Year ended 10/31/12

     10.00        0.11        (0.05 )      0.06        (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 )      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 )      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 )      10.30        23.26        9,864        2.37        2.37        0.88        43   

Class C

  

Six months ended 04/30/14

     11.16        0.04        0.38        0.42        (0.11 )      11.47        3.82        12,102        2.36 (e)      2.36 (e)      0.74 (e)      84   

Year ended 10/31/13

     9.61        0.05        1.60        1.65        (0.10 )      11.16        17.30        12,458        2.40        2.40        0.45        25   

Year ended 10/31/12

     9.74        0.11        (0.05 )      0.06        (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 )      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 )      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 )      10.04        23.25        22,854        2.37        2.37        0.88        43   

Class R

  

Six months ended 04/30/14

     11.47        0.07        0.38        0.45        (0.16 )      11.76        4.06        2,063        1.86 (e)      1.86 (e)      1.24 (e)      84   

Year ended 10/31/13

     9.88        0.10        1.65        1.75        (0.16 )      11.47        17.87        2,016        1.90        1.90        0.95        25   

Year ended 10/31/12

     10.01        0.15        (0.03 )      0.12        (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 )      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 )      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 )      10.33        23.88        2,697        1.87        1.87        1.38        43   

Class Y

  

Six months ended 04/30/14

     11.65        0.10        0.38        0.48        (0.22 )      11.91        4.26        1,911        1.36 (e)      1.36 (e)      1.74 (e)      84   

Year ended 10/31/13

     10.03        0.16        1.67        1.83        (0.21 )      11.65        18.53        1,284        1.40        1.40        1.45        25   

Year ended 10/31/12

     10.18        0.21        (0.05 )      0.16        (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 )      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 )      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 )      10.51        24.61        1,983        1.37        1.37        1.88        43   

Investor Class

  

Six months ended 04/30/14

     11.63        0.08        0.39        0.47        (0.19 )      11.91        4.18        13,609        1.61 (e)      1.61 (e)      1.49 (e)      84   

Year ended 10/31/13

     10.02        0.13        1.66        1.79        (0.18 )      11.63        18.14        14,726        1.65        1.65        1.20        25   

Year ended 10/31/12

     10.16        0.18        (0.04 )      0.14        (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 )      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 )      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 )      10.49        24.35        21,500        1.62        1.62        1.63        43   

Class R5

  

Six months ended 04/30/14

     11.45        0.12        0.37        0.49        (0.26 )      11.68        4.46        2,813        1.03 (e)      1.03 (e)      2.07 (e)      84   

Year ended 10/31/13

     9.89        0.19        1.63        1.82        (0.26 )      11.45        18.71        3,010        1.04        1.04        1.81        25   

Year ended 10/31/12

     10.04        0.24        (0.04 )      0.20        (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 )      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 )      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 )      10.37        25.10        241,432        0.94        0.94        2.31        43   

Class R6

  

Six months ended 04/30/14

     11.45        0.12        0.37        0.49        (0.26 )      11.68        4.48        58,517        1.02 (e)      1.02 (e)      2.08 (e)      84   

Year ended 10/31/13

     9.88        0.19        1.64        1.83        (0.26 )      11.45        18.84        57,388        1.03        1.03        1.82        25   

Period 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 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Class R5 shares, which were less than $0.005 per share for the fiscal years ended October 31, 2012 and prior.
(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 $41,936, $2,253, $12,147, $2,100, $1,542, $13,723, $2,928 and $56,890 for Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares, respectively.
(f)  Commencement date of September 24, 2012 for Class R6 shares.
(g)  Annualized.

 

16                         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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class   Beginning
Account Value
(11/01/13)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,041.50      $ 8.15      $ 1,016.81      $ 8.05        1.61 % 
B     1,000.00        1,037.10        11.92        1,013.09        11.78        2.36   
C     1,000.00        1,038.20        11.93        1,013.09        11.78        2.36   
R     1,000.00        1,040.60        9.41        1,015.57        9.30        1.86   
Y     1,000.00        1,042.60        6.89        1,018.05        6.80        1.36   
Investor     1,000.00        1,041.80        8.15        1,016.81        8.05        1.61   
R5     1,000.00        1,044.60        5.22        1,019.69        5.16        1.03   
R6     1,000.00        1,044.80        5.17        1,019.74        5.11        1.02   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2013 through April 30, 2014, 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 Core Equity Fund

LOGO

 

 

Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its 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, 2014
 

 

 

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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       4.98 %
Class B Shares       4.56  
Class C Shares       4.59  
Class R Shares       4.83  
Class Y Shares       5.10  
Class R5 Shares       5.15  
Class R6 Shares       5.17  
MSCI EAFE Index‚ (Broad Market Index)       4.44  
Custom International Growth Index‚ (Style-Specific Index)       2.41  
Lipper International Multi-Cap Growth Funds Indexn (Peer Group Index)       3.30  

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

The MSCI EAFE® Index 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 computed using the net return, which withholds applicable taxes for non-resident investors, through February 28, 2013, and the MSCI All Country World ex US Growth Index computed using the net return, which withholds applicable taxes for non-resident investors thereafter.

    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 EAFE® Growth Index 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 MSCI All Country World ex US Growth Index 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 4/30/14, including maximum applicable sales charges    
Class A Shares        
Inception (4/7/92)     8.05 % 
10 Years     8.51   
  5 Years     13.16   
  1 Year     8.84   
Class B Shares        
Inception (9/15/94)     6.70 % 
10 Years     8.49   
  5 Years     13.34   
  1 Year     9.32   
Class C Shares        
Inception (8/4/97)     5.02 % 
10 Years     8.32   
  5 Years     13.58   
  1 Year     13.34   
Class R Shares        
Inception (6/3/02)     8.24 % 
10 Years     8.86   
  5 Years     14.16   
  1 Year     14.89   
Class Y Shares        
10 Years     9.29 % 
  5 Years     14.72   
  1 Year     15.47   
Class R5 Shares        
Inception (3/15/02)     8.98 % 
10 Years     9.61   
  5 Years     14.89   
  1 Year     15.57   
Class R6 Shares        
10 Years     9.20 % 
  5 Years     14.59   
  1 Year     15.67   
Average Annual Total Returns  
As of 3/31/14, the most recent calendar quarter end, including maximum applicable sales charges    
Class A Shares        
Inception (4/7/92)     8.00 % 
10 Years     8.11   
  5 Years     14.32   
  1 Year     8.84   
Class B Shares        
Inception (9/15/94)     6.64 % 
10 Years     8.08   
  5 Years     14.51   
  1 Year     9.31   
Class C Shares        
Inception (8/4/97)     4.94 % 
10 Years     7.92   
  5 Years     14.75   
  1 Year     13.29   
Class R Shares        
Inception (6/3/02)     8.15 % 
10 Years     8.45   
  5 Years     15.33   
  1 Year     14.87   
Class Y Shares        
10 Years     8.87 % 
  5 Years     15.91   
  1 Year     15.43   
Class R5 Shares        
Inception (3/15/02)     8.90 % 
10 Years     9.20   
  5 Years     16.06   
  1 Year     15.56   
Class R6 Shares        
10 Years     8.79 % 
  5 Years     15.77   
  1 Year     15.66   

of the date of this report for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.35%, 2.10%, 2.10%, 1.60%, 1.10%, 0.99% and 0.92%, 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.

 

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, 2015. See current prospectus for more information.
 

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 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 B, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.34%, 2.09%, 2.09%, 1.59%, 1.09%, 0.98% and 0.91%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as

 

 

3                         Invesco International Growth Fund

 

Letters to Shareholders

 

 

LOGO

     Bruce Crockett

    

Dear Fellow Shareholders:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives,

short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

    Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

    Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

    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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

 

LOGO

       Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

Also, you can obtain timely updates to help you stay informed about the markets, the economy

and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

    For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

    Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

4                         Invesco International Growth Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks & Other Equity Interests–91.14%

  

Australia–3.26%   

Amcor Ltd.

     12,071,168       $ 115,603,739   

Brambles Ltd.

     10,022,992         88,041,095   

CSL Ltd.

     845,551         53,909,880   
         257,554,714   
Belgium–1.48%   

Anheuser-Busch InBev N.V.

     1,093,468         116,583,676   
Brazil–3.72%   

Banco Bradesco S.A.–ADR

     7,546,196         112,211,934   

BM&FBovespa S.A.

     26,936,100         137,470,992   

BRF S.A.

     1,933,700         43,707,274   
         293,390,200   
Canada–8.13%   

Agrium Inc.

     548,659         52,698,296   

Canadian National Railway Co.

     1,114,456         65,281,091   

Cenovus Energy Inc.

     2,202,169         65,602,936   

CGI Group Inc.–Class A(a)

     3,070,936         110,733,021   

Encana Corp.

     4,117,477         95,385,713   

Fairfax Financial Holdings Ltd.

     165,460         72,147,203   

Suncor Energy, Inc.

     4,648,001         179,304,272   
         641,152,532   
China–2.80%   

Baidu, Inc.–ADR(a)

     732,883         112,754,050   

CNOOC Ltd.

     23,764,093         39,295,705   

Industrial & Commercial Bank of China Ltd.–Class H

     115,342,461         68,733,270   
         220,783,025   
Denmark–2.47%   

Carlsberg AS–Class B

     1,054,926         105,750,097   

Novo Nordisk AS–Class B

     1,957,255         88,796,908   
         194,547,005   
France–4.78%   

Publicis Groupe S.A.

     1,524,328         129,978,540   

Schneider Electric S.A.

     973,546         91,494,620   

Total S.A.

     2,174,062         155,444,764   
         376,917,924   
Germany–7.38%   

Adidas AG

     597,134         63,729,120   

Allianz S.E.

     721,036         124,886,611   

Deutsche Boerse AG

     1,054,678         77,239,941   

Deutsche Post AG

     2,118,874         79,763,710   

Deutsche Telekom AG

     5,237,594         87,810,990   

SAP AG

     1,847,100         148,726,445   
         582,156,817   
     Shares      Value  
Hong Kong–3.14%   

Galaxy Entertainment Group Ltd.(a)

     16,784,090       $ 132,609,435   

Hutchison Whampoa Ltd.

     8,429,590         115,604,697   
         248,214,132   
Ireland–1.75%   

Shire PLC

     2,416,816         138,174,161   
Israel–1.73%   

Teva Pharmaceutical Industries
Ltd.–ADR

     2,787,155         136,180,393   
Japan–5.83%   

Denso Corp.

     1,172,947         53,375,227   

FANUC Corp.

     474,912         85,477,656   

Japan Tobacco, Inc.

     2,272,900         74,614,618   

Keyence Corp.

     170,327         65,619,964   

Komatsu Ltd.

     3,042,028         67,012,101   

Toyota Motor Corp.

     2,110,830         114,068,041   
         460,167,607   
Mexico–1.79%   

Fomento Economico Mexicano, S.A.B. de C.V.–ADR

     419,483         38,076,472   

Grupo Televisa S.A.B.–ADR

     3,145,479         103,203,166   
         141,279,638   
Netherlands–1.17%   

Unilever N.V.

     2,144,252         91,933,051   
Singapore–4.00%   

Avago Technologies Ltd.

     1,810,797         114,985,609   

Keppel Corp. Ltd.

     11,453,313         96,205,636   

United Overseas Bank Ltd.

     5,993,166         104,029,429   
         315,220,674   
South Korea–3.09%   

Hyundai Mobis Co., Ltd

     410,895         117,316,762   

Samsung Electronics Co., Ltd.

     96,886         126,287,856   
         243,604,618   
Spain–1.11%   

Amadeus IT Holding S.A.–Class A

     2,111,553         87,914,661   
Sweden–2.15%   

Investor AB–Class B

     2,663,016         103,347,386   

Telefonaktiebolaget LM Ericsson–
Class B

     5,537,704         66,492,600   
         169,839,986   
Switzerland–9.29%   

ABB Ltd.

     4,246,752         102,319,628   

Julius Baer Group Ltd.

     1,723,487         80,798,206   

Nestle S.A.

     1,363,674         105,448,577   

Novartis AG

     1,008,767         87,657,214   
 

 

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

 

5                         Invesco International Growth Fund

     Shares      Value  
Switzerland–(continued)   

Roche Holding AG

     541,969       $ 159,314,484   

Syngenta AG

     282,838         112,292,632   

UBS AG

     4,071,858         85,119,504   
               732,950,245   
Taiwan–1.82%   

Taiwan Semiconductor Manufacturing Co. Ltd.

     36,381,887         143,266,252   
Thailand–1.04%   

Kasikornbank PCL–NVDR

     13,861,800         82,173,902   
Turkey–1.12%   

Akbank T.A.S.

     25,372,394         88,560,049   
United Kingdom–18.09%   

Aberdeen Asset Management PLC

     11,017,904         81,484,257   

British American Tobacco PLC

     2,739,427         157,914,801   

British Sky Broadcasting Group PLC

     10,742,793         159,911,113   

Centrica PLC

     12,352,162         68,818,712   

Compass Group PLC

     11,013,103         175,613,655   

Informa PLC

     7,124,832         58,231,965   
     Shares      Value  
United Kingdom–(continued)   

Kingfisher PLC

     11,073,999       $ 78,432,690   

Next PLC

     656,715         72,546,455   

Reed Elsevier PLC

     14,018,219         206,781,825   

Royal Dutch Shell PLC–Class B

     3,029,770         128,619,367   

Smith & Nephew PLC

     6,388,871         99,411,700   

WPP PLC

     6,472,423         139,737,862   
               1,427,504,402   

Total Common Stocks & Other Equity Interests
(Cost $5,012,427,681)

   

      7,190,069,664   

Money Market Funds–8.54%

  

Liquid Assets Portfolio–Institutional Class(b)

     336,785,228         336,785,228   

Premier Portfolio–
Institutional Class(b)

     336,785,228         336,785,228   

Total Money Market Funds
(Cost $673,570,456)

   

      673,570,456   

TOTAL INVESTMENTS–99.68%
(Cost $5,685,998,137)

   

      7,863,640,120   

OTHER ASSETS LESS LIABILITIES–0.32%

  

      25,410,216   

NET ASSETS–100.00%

  

    $ 7,889,050,336   
 

Investment Abbreviations:

 

ADR  

– American Depositary Receipt

NVDR  

– Non-Voting 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, 2014

 

Consumer Discretionary

     20.3 % 

Financials

     15.4   

Information Technology

     12.4   

Industrials

     10.0   

Health Care

     9.7   

Consumer Staples

     9.3   

Energy

     8.4   

Materials

     3.6   

Telecommunication Services

     1.1   

Utilities

     0.9   

Money Market Funds Plus Other Assets Less Liabilities

     8.9   

 

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, 2014

(Unaudited)

 

Assets:

  

Investments, at value (Cost $5,012,427,681)

   $ 7,190,069,664   

Investments in affiliated money market funds, at value and cost

     673,570,456   

Total investments, at value (Cost $5,685,998,137)

     7,863,640,120   

Foreign currencies, at value (Cost $10,919,571)

     10,908,263   

Receivable for:

  

Fund shares sold

     15,979,969   

Dividends

     32,014,542   

Investment for trustee deferred compensation and retirement plans

     735,234   

Other assets

     125,091   

Total assets

     7,923,403,219   

Liabilities:

  

Payable for:

  

Investments purchased

     19,853,162   

Fund shares reacquired

     7,965,530   

Accrued fees to affiliates

     3,327,818   

Accrued trustees’ and officers’ fees and benefits

     9,512   

Accrued foreign taxes

     1,201,759   

Accrued other operating expenses

     1,118,660   

Trustee deferred compensation and retirement plans

     876,442   

Total liabilities

     34,352,883   

Net assets applicable to shares outstanding

   $ 7,889,050,336   

Net assets consist of:

  

Shares of beneficial interest

   $ 5,725,297,133   

Undistributed net investment income

     14,338,650   

Undistributed net realized gain (loss)

     (28,465,207 ) 

Net unrealized appreciation

     2,177,879,760   
    $ 7,889,050,336   

Net Assets:

  

Class A

   $ 2,786,257,321   

Class B

   $ 34,015,352   

Class C

   $ 173,106,963   

Class R

   $ 107,400,282   

Class Y

   $ 2,510,441,179   

Class R5

   $ 1,940,562,127   

Class R6

   $ 337,267,112   

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

   

Class A

     80,616,069   

Class B

     1,065,280   

Class C

     5,415,711   

Class R

     3,141,547   

Class Y

     72,460,902   

Class R5

     55,344,633   

Class R6

     9,624,359   

Class A:

  

Net asset value per share

   $ 34.56   

Maximum offering price per share

  

(Net asset value of $34.56 ¸ 94.50%)

   $ 36.57   

Class B:

  

Net asset value and offering price per share

   $ 31.93   

Class C:

  

Net asset value and offering price per share

   $ 31.96   

Class R:

  

Net asset value and offering price per share

   $ 34.19   

Class Y:

  

Net asset value and offering price per share

   $ 34.65   

Class R5:

  

Net asset value and offering price per share

   $ 35.06   

Class R6:

  

Net asset value and offering price per share

   $ 35.04   
 

 

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, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $6,181,982)

   $ 89,608,904   

Dividends from affiliated money market funds

     112,807   

Total investment income

     89,721,711   

Expenses:

  

Advisory fees

     31,071,745   

Administrative services fees

     348,861   

Custodian fees

     1,338,144   

Distribution fees:

  

Class A

     3,317,855   

Class B

     181,794   

Class C

     802,794   

Class R

     254,014   

Transfer agent fees — A, B, C, R and Y

     4,643,895   

Transfer agent fees — R5

     784,509   

Transfer agent fees — R6

     6,155   

Trustees’ and officers’ fees and benefits

     140,258   

Other

     898,551   

Total expenses

     43,788,575   

Less: Fees waived and expense offset arrangement(s)

     (356,847 ) 

Net expenses

     43,431,728   

Net investment income

     46,289,983   

Realized and unrealized gain from:

  

Net realized gain (loss) from:

  

Investment securities

     144,791,477   

Foreign currencies

     (509,391 ) 
      144,282,086   

Change in net unrealized appreciation of:

  

Investment securities (net of foreign taxes on holdings of $1,201,759)

     184,228,128   

Foreign currencies

     102,768   
      184,330,896   

Net realized and unrealized gain

     328,612,982   

Net increase in net assets resulting from operations

   $ 374,902,965   

 

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, 2014 and the year ended October 31, 2013

(Unaudited)

 

     April 30,
2014		      October 31,
2013		  

Operations:

  

   

Net investment income

   $ 46,289,983       $ 64,402,286   

Net realized gain

     144,282,086         127,776,516   

Change in net unrealized appreciation

     184,330,896         996,385,376   

Net increase in net assets resulting from operations

     374,902,965         1,188,564,178   

Distributions to shareholders from net investment income:

     

Class A

     (28,925,252 )       (21,975,533 ) 

Class B

     (183,328 )       (188,836 ) 

Class C

     (759,542 )       (568,367 ) 

Class R

     (917,629 )       (724,598 ) 

Class Y

     (29,609,780 )       (18,141,196 ) 

Class R5

     (25,890,985 )       (17,685,492 ) 

Class R6

     (4,443,470 )       (3,042,814 ) 

Total distributions from net investment income

     (90,729,986 )       (62,326,836 ) 

Share transactions–net:

     

Class A

     21,054,123         109,823,580   

Class B

     (6,230,382 )       (13,117,436 ) 

Class C

     12,044,033         (3,624,211 ) 

Class R

     (1,352,279 )       (856,318 ) 

Class Y

     231,424,787         397,523,737   

Class R5

     (26,060,463 )       330,067,322   

Class R6

     25,178,007         26,805,828   

Net increase in net assets resulting from share transactions

     256,057,826         846,622,502   

Net increase in net assets

     540,230,805         1,972,859,844   

Net assets:

     

Beginning of period

     7,348,819,531         5,375,959,687   

End of period (includes undistributed net investment income of $14,338,650 and $58,778,653, respectively)

   $ 7,889,050,336       $ 7,348,819,531   

Notes to Financial Statements

April 30, 2014

(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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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 International 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 (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated 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. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

11                         Invesco International 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(s) 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, 2015, 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 2.25%, 3.00%, 3.00%, 2.50%, 2.00%, 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 Invesco continues the fee waiver agreement, it will terminate on June 30, 2015. The fee waiver agreement cannot be terminated during its term. 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 did not waive fees and/or reimburse expenses under this expense limitation.

Further, the Adviser has contractually agreed, through at least June 30, 2016, 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, 2014, the Adviser waived advisory fees of $355,885.

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, 2014, 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, 2014, 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, 2014, 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, 2014, IDI advised the Fund that IDI retained $396,680 in front-end sales commissions from the sale of Class A shares and $5,351, $9,426 and $4,083 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 International 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $1,164,059,028 and from Level 2 to Level 1 of $1,215,615,626, due to foreign fair value adjustments.

 

     Level 1        Level 2        Level 3        Total  

Australia

   $ —         $ 257,554,714         $ —         $ 257,554,714   

Belgium

     —           116,583,676           —           116,583,676   

Brazil

     293,390,200           —           —           293,390,200   

Canada

     641,152,532           —           —           641,152,532   

China

     220,783,025           —           —           220,783,025   

Denmark

     —           194,547,005           —           194,547,005   

France

     —           376,917,924           —           376,917,924   

Germany

     582,156,817           —           —           582,156,817   

Hong Kong

     —           248,214,132           —           248,214,132   

Ireland

     —           138,174,161           —           138,174,161   

Israel

     136,180,393           —           —           136,180,393   

Japan

     346,099,566           114,068,041           —           460,167,607   

Mexico

     141,279,638           —           —           141,279,638   

Netherlands

     —           91,933,051           —           91,933,051   

Singapore

     315,220,674           —           —           315,220,674   

South Korea

     117,316,762           126,287,856           —           243,604,618   

Spain

     —           87,914,661           —           87,914,661   

Sweden

     —           169,839,986           —           169,839,986   

Switzerland

     85,119,504           647,830,741           —           732,950,245   

Taiwan

     —           143,266,252           —           143,266,252   

Thailand

     —           82,173,902           —           82,173,902   

Turkey

     88,560,049           —           —           88,560,049   

United Kingdom

     68,818,712           1,358,685,690           —           1,427,504,402   

United States

     673,570,456           —           —           673,570,456   

Total Investments

   $ 3,709,648,328         $ 4,153,991,792         $ —         $ 7,863,640,120   

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2014, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $962.

 

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with 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 GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013, which expires as follows:

 

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

October 31, 2017

   $ 169,768,428         $ —         $ 169,768,428   

 

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment 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, 2014 was $848,189,662 and $791,772,028, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 2,186,716,650   

Aggregate unrealized (depreciation) of investment securities

     (42,111,451 ) 

Net unrealized appreciation of investment securities

   $ 2,144,605,199   

Cost of investments for tax purposes is $5,719,034,921.

 

14                         Invesco International Growth Fund

NOTE 9—Share Information

 

     Summary of Share Activity  
    Six months ended
April 30, 2014(a)		      Year ended
October 31, 2013		  
     Shares      Amount      Shares      Amount  

Sold:

           

Class A

     9,395,937       $ 312,608,916         19,383,355       $ 583,441,582   

Class B

     29,657         912,953         57,203         1,594,247   

Class C

     835,968         25,695,006         941,432         26,514,706   

Class R

     493,562         16,279,191         1,097,072         32,445,830   

Class Y

     11,337,912         378,075,171         25,383,682         765,865,426   

Class R5

     6,429,962         218,219,574         20,803,776         634,081,306   

Class R6

     896,508         29,896,907         3,109,748         95,344,081   

Issued as reinvestment of dividends:

           

Class A

     783,877         25,272,199         761,301         21,575,264   

Class B

     5,818         173,790         7,035         184,937   

Class C

     23,015         688,159         20,481         539,064   

Class R

     28,368         905,491         25,521         716,367   

Class Y

     739,626         23,870,700         514,305         14,595,975   

Class R5

     650,436         21,261,697         544,290         15,626,551   

Class R6

     136,136         4,443,470         106,058         3,042,814   

Automatic conversion of Class B shares to Class A shares:

           

Class A

     132,462         4,450,295         235,973         7,101,209   

Class B

     (143,271 )       (4,450,295 )       (255,211 )       (7,101,209 ) 

Reacquired:

           

Class A

     (9,659,412 )       (321,277,287 )       (16,687,815 )       (502,294,475 ) 

Class B

     (93,031 )       (2,866,830 )       (281,625 )       (7,795,411 ) 

Class C

     (466,205 )       (14,339,132 )       (1,107,919 )       (30,677,981 ) 

Class R

     (562,002 )       (18,536,961 )       (1,150,554 )       (34,018,515 ) 

Class Y

     (5,109,170 )       (170,521,084 )       (12,615,179 )       (382,937,664 ) 

Class R5

     (7,856,223 )       (265,541,734 )       (10,518,958 )       (319,640,535 ) 

Class R6

     (270,361 )       (9,162,370 )       (2,326,358 )       (71,581,067 ) 

Net increase in share activity

     7,759,569       $ 256,057,826         28,047,613       $ 846,622,502   

 

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 42% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

 

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		     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
to average
net assets		     Portfolio
turnover(c)		  

Class A

  

Six months ended 04/30/14

   $ 33.30      $ 0.18      $ 1.44      $ 1.62      $ (0.36 )    $ 34.56        4.95 %    $ 2,786,257        1.33 %(d)      1.34 %(d)      1.11 %(d)      11 % 

Year ended 10/31/13

     27.96        0.26        5.37        5.63        (0.29 )      33.29        20.31        2,662,962        1.33        1.34        0.87        21   

Year ended 10/31/12

     26.43        0.26        1.59        1.85        (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 )      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 )      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 )      23.41        25.65        1,734,895        1.49        1.51        1.24        26   

Class B

  

Six months ended 04/30/14

     30.69        0.05        1.34        1.39        (0.15 )      31.93        4.56        34,015        2.08 (d)      2.09 (d)      0.36 (d)      11   

Year ended 10/31/13

     25.81        0.03        4.96        4.99        (0.11 )      30.69        19.41        38,858        2.08        2.09        0.12        21   

Year ended 10/31/12

     24.41        0.06        1.47        1.53        (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 )      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 )      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 )      21.68        24.72        61,649        2.24        2.26        0.49        26   

Class C

  

Six months ended 04/30/14

     30.72        0.05        1.34        1.39        (0.15 )      31.96        4.55        173,107        2.08 (d)      2.09 (d)      0.36 (d)      11   

Year ended 10/31/13

     25.83        0.03        4.97        5.00        (0.11 )      30.72        19.44        154,313        2.08        2.09        0.12        21   

Year ended 10/31/12

     24.43        0.06        1.47        1.53        (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 )      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 )      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 )      21.70        24.76        139,000        2.24        2.26        0.49        26   

Class R

  

Six months ended 04/30/14

     32.91        0.14        1.43        1.57        (0.29 )      34.19        4.83        107,400        1.58 (d)      1.59 (d)      0.86 (d)      11   

Year ended 10/31/13

     27.64        0.19        5.31        5.50        (0.23 )      32.91        20.03        104,712        1.58        1.59        0.62        21   

Year ended 10/31/12

     26.13        0.20        1.57        1.77        (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 )      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 )      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 )      23.18        25.44        63,544        1.74        1.76        0.99        26   

Class Y

  

Six months ended 04/30/14

     33.42        0.22        1.45        1.67        (0.44 )      34.65        5.10        2,510,441        1.08 (d)      1.09 (d)      1.36 (d)      11   

Year ended 10/31/13

     28.05        0.34        5.37        5.71        (0.34 )      33.42        20.59        2,188,960        1.08        1.09        1.13        21   

Year ended 10/31/12

     26.53        0.33        1.59        1.92        (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 )      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 )      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 )      23.48        26.05        62,343        1.24        1.26        1.49        26   

Class R5

  

Six months ended 04/30/14

     33.84        0.24        1.46        1.70        (0.48 )      35.06        5.12        1,940,562        0.99 (d)      1.00 (d)      1.45 (d)      11   

Year ended 10/31/13

     28.39        0.38        5.44        5.82        (0.37 )      33.84        20.74        1,899,117        0.97        0.98        1.23        21   

Year ended 10/31/12

     26.86        0.37        1.61        1.98        (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 )      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 )      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 )      23.77        26.32        917,297        1.01        1.03        1.72        26   

Class R6

  

Six months ended 04/30/14

     33.84        0.26        1.44        1.70        (0.50 )      35.04        5.14        337,267        0.91 (d)      0.92 (d)      1.53 (d)      11   

Year ended 10/31/13

     28.38        0.40        5.45        5.85        (0.39 )      33.84        20.85        299,898        0.90        0.91        1.30        21   

Year ended 10/31/12(g)

     28.83        0.04        (0.49 )      (0.45 )      —        28.38        (1.56 )      226,291        0.92 (e)      0.93 (e)      1.44 (e)      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 ended 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 Growth 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 $2,676,245, $36,672, $161,848, $102,460, $2,311,429, $1,847,090 and $313,831 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
(e) Annualized.
(f) Includes redemption fees added to shares of beneficial interest for Class A, Class B, Class C, Class R, Class Y and R5 shares, which were less than $0.005 per share for the fiscal years ended October 31, 2012 and prior.
(g) Commencement date of September 24, 2012.

 

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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class   Beginning
Account Value
(11/01/13)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,049.80      $ 6.76      $ 1,018.20      $ 6.66        1.33 % 
B     1,000.00        1,045.60        10.55        1,014.48        10.39        2.08   
C     1,000.00        1,045.90        10.55        1,014.48        10.39        2.08   
R     1,000.00        1,048.30        8.02        1,016.96        7.90        1.58   
Y     1,000.00        1,051.00        5.49        1,019.44        5.41        1.08   
R5     1,000.00        1,051.50        5.04        1,019.89        4.96        0.99   
R6     1,000.00        1,051.70        4.63        1,020.28        4.56        0.91   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2013 through April 30, 2014, 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

 

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Invesco mailing information

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

 

 

Important notice regarding delivery of security holder documents

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

 

 

Fund holdings and proxy voting information

The Fund provides a complete list of its 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.

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SEC file numbers: 811-06463 and 033-44611   IGR-SAR-1    Invesco Distributors, Inc.

 

 

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Semiannual Report to Shareholders

 

   April 30, 2014
 

 

 

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

 

 

13         Financial Highlights

 

  14         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, 10/31/13 to 4/30/14, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares       10.97 %
Class C Shares       10.48  
Class R Shares       10.86  
Class Y Shares       11.06  
Class R5 Shares       11.06  
Class R6 Shares       11.07  
MSCI World Index‚ (Broad Market Index)       6.32  
MSCI World Small Cap Index‚ (Style-Specific Index)       5.38  
Lipper Global Small/Mid-Cap Funds Classification Averagen (Peer Group)       4.40  

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

The MSCI World IndexSM 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 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.

 

Average Annual Total Returns
As of 4/30/14, including maximum applicable sales charges    
   
Class A Shares          
Inception (8/3/12)       24.19 %
  1 Year       18.22  
Class C Shares          
Inception (8/3/12)       27.39 %
  1 Year       23.08  
Class R Shares          
Inception (8/3/12)       27.98 %
  1 Year       24.85  
Class Y Shares          
Inception (8/3/12)       28.62 %
  1 Year       25.39  
Class R5 Shares          
Inception (8/3/12)       28.62 %
  1 Year       25.39  
Class R6 Shares          
Inception       28.57 %
  1 Year       25.41  

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

Average Annual Total Returns
As of 3/31/14, the most recent calendar quarter end, including maximum applicable sales charges    
Class A Shares          
Inception (8/3/12)       25.73 %
  1 Year       20.61  
Class C Shares          
Inception (8/3/12)       29.19 %
  1 Year       25.59  
Class R Shares          
Inception (8/3/12)       29.77 %
  1 Year       27.29  
Class Y Shares          
Inception (8/3/12)       30.39 %
  1 Year       27.84  
Class R5 Shares          
Inception (8/3/12)       30.39 %
  1 Year       27.84  
Class R6 Shares          
Inception       30.39 %
  1 Year       27.84  

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 1.52%, 2.27%, 1.77%, 1.27%, 1.27% and 1.27%, 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 6.22%, 6.97%, 6.47%, 5.97%, 5.95% and 5.94%, 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, 2015. See current prospectus for more information.
 

 

2                         Invesco Select Opportunities Fund

 

Letters to Shareholders

 

 

LOGO

    Bruce Crockett

    

Dear Fellow Shareholders:

Members of the Invesco Funds Board work continually to oversee how the Invesco Funds are performing in light of ever-changing and often unpredictable economic and market conditions. In light of market conditions over the last few years, the financial news media have given increased attention to “alternative investment strategies” of late. Still, many investors don’t know very much about these types of investments.

After a careful and thorough examination of the potential risks and potential benefits of alternative investment strategies, the Invesco Funds Board has approved the launch of several new alternative funds for the Invesco product lineup, to be managed by teams we determined have the depth and experience to pursue the funds’ investment objectives. That’s especially important, given that alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives,

short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and the additional risks of the strategies they use. Like all investments, performance will fluctuate. You can lose money.

Your financial adviser is a good source of information about alternative investment strategies; he or she can explain the risks associated with them as well as their potential benefits. This type of professional guidance is why Invesco believes it’s so important that individual investors work with trusted, experienced financial advisers.

Be assured that the Invesco Funds Board will continue working on your behalf and on behalf of all our fund shareholders, keeping your needs and interests uppermost in our minds.

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 needs.

Sincerely,

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

 

 

LOGO

        Philip Taylor

    

Dear Shareholders:

This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest.

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever it’s convenient for you; just complete a simple, secure online registration. Use the “Login” box on our home page to get started.

Invesco’s mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go.

Also, you can obtain timely updates to help you stay informed about the markets, the

economy and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com or by visiting the “Intentional Investing Forum” on our home page.

For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

Thank you for investing with us.

Sincerely,

 

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.

 

3                         Invesco Select Opportunities Fund

Schedule of Investments

April 30, 2014

(Unaudited)

 

     Shares      Value  

Common Stocks–85.44%

  

Brazil–5.12%   

CETIP S.A.–Mercados Organizados

     97,500       $ 1,236,131   
Canada–4.10%   

Martinrea International Inc.

     91,950         926,212   

MEGA Brands Inc.(a)

     3,944         63,838   
               990,050   
China–5.18%   

Hollysys Automation Technologies Ltd.(a)

     58,457         1,251,564   
France–7.38%   

Euler Hermes S.A.

     1,153         139,081   

Ipsos

     20,398         790,650   

Vicat S.A.

     9,815         852,277   
               1,782,008   
Hong Kong–1.72%   

Fairwood Holdings Ltd.

     203,000         414,751   
Ireland–8.03%   

DCC PLC

     18,645         956,734   

UDG Healthcare PLC

     162,494         984,053   
               1,940,787   
Netherlands–6.35%   

Aalberts Industries N.V.

     23,478         783,254   

Kendrion N.V.

     22,082         752,074   
               1,535,328   
Norway–3.75%   

Prosafe S.E.

     102,686         906,570   
     Shares      Value  
United Kingdom–4.84%   

Alent PLC

     185,317       $ 994,929   

Charles Taylor PLC

     39,867         175,336   
               1,170,265   
United States–38.97%   

Alere, Inc.(a)

     22,058         736,737   

Alliance Data Systems Corp.(a)

     2,033         491,783   

American Public Education Inc.(a)

     23,472         812,131   

Booz Allen Hamilton Holding Corp.

     42,581         989,583   

Cubic Corp.

     9,547         452,814   

Global Payments Inc.

     11,515         769,547   

International Rectifier Corp.(a)

     29,981         780,705   

ION Geophysical Corp.(a)

     82,113         361,297   

Mitel Networks Corp.(a)

     89,718         821,867   

Performant Financial Corp.(a)

     124,690         1,086,050   

Rovi Corp.(a)

     43,484         969,258   

Ultra Petroleum Corp.(a)

     38,359         1,143,098   
               9,414,870   

Total Common Stocks
(Cost $18,341,286)

   

      20,642,324   

Money Market Funds–11.26%

  

   

Liquid Assets Portfolio–Institutional Class(b)

     1,359,619         1,359,619   

Premier Portfolio–Institutional Class(b)

     1,359,620         1,359,620   

Total Money Market Funds
(Cost $2,719,239)

   

      2,719,239   

TOTAL INVESTMENTS–96.70%
(Cost $21,060,525)

   

      23,361,563   

OTHER ASSETS LESS LIABILITIES–3.30%

  

      797,626   

NET ASSETS–100.00%

  

    $ 24,159,189   
 

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, 2014

 

Information Technology

     25.1 % 

Industrials

     13.6   

Consumer Discretionary

     12.4   

Materials

     10.8   

Energy

     10.0   

Health Care

     7.1   

Financials

     6.4   

Money Market Funds Plus Other Assets Less Liabilities

     14.6   

 

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, 2014

(Unaudited)

 

Assets:

  

Investments, at value (Cost $18,341,286)

   $ 20,642,324   

Investments in affiliated money market funds, at value and cost

     2,719,239   

Total investments, at value (Cost $21,060,525)

     23,361,563   

Foreign currencies, at value (Cost $139,427)

     139,913   

Receivable for:

  

Investments sold

     397,606   

Fund shares sold

     237,381   

Dividends

     31,481   

Investment for trustee deferred compensation and retirement plans

     6,917   

Other assets

     23,957   

Total assets

     24,198,818   

Liabilities:

  

Payable for:

  

Accrued trustees’ and officers’ fees and benefits

     1,794   

Accrued other operating expenses

     30,918   

Trustee deferred compensation and retirement plans

     6,917   

Total liabilities

     39,629   

Net assets applicable to shares outstanding

   $ 24,159,189   

Net assets consist of:

  

Shares of beneficial interest

   $ 21,411,963   

Undistributed net investment income (loss)

     (40,675 ) 

Undistributed net realized gain

     486,294   

Net unrealized appreciation

     2,301,607   
    $ 24,159,189   

Net Assets:

  

Class A

   $ 14,298,972   

Class C

   $ 3,474,263   

Class R

   $ 137,344   

Class Y

   $ 6,183,406   

Class R5

   $ 51,283   

Class R6

   $ 13,921   

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

   

Class A

     953,848   

Class C

     234,050   

Class R

     9,191   

Class Y

     411,199   

Class R5

     3,410   

Class R6

     926   

Class A:

  

Net asset value per share

   $ 14.99   

Maximum offering price per share

  

(Net asset value of $14.99 ¸ 94.50%)

   $ 15.86   

Class C:

  

Net asset value and offering price per share

   $ 14.84   

Class R:

  

Net asset value and offering price per share

   $ 14.94   

Class Y:

  

Net asset value and offering price per share

   $ 15.04   

Class R5:

  

Net asset value and offering price per share

   $ 15.04   

Class R6:

  

Net asset value and offering price per share

   $ 15.03   
 

 

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, 2014

(Unaudited)

 

Investment income:

  

Dividends (net of foreign withholding taxes of $6,902)

   $ 77,691   

Dividends from affiliated money market funds

     920   

Total investment income

     78,611   

Expenses:

  

Advisory fees

     61,377   

Administrative services fees

     24,795   

Custodian fees

     3,650   

Distribution fees:

  

Class A

     11,699   

Class C

     5,789   

Class R

     249   

Transfer agent fees — A, C, R and Y

     15,100   

Transfer agent fees — R5

     24   

Transfer agent fees — R6

     4   

Trustees’ and officers’ fees and benefits

     12,807   

Registration and filing fees

     34,883   

Professional services fees

     26,607   

Other

     11,255   

Total expenses

     208,239   

Less: Fees waived and expenses reimbursed

     (96,499 ) 

Net expenses

     111,740   

Net investment income (loss)

     (33,129 ) 

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Investment securities

     494,935   

Foreign currencies

     (8,556 ) 
      486,379   

Change in net unrealized appreciation of:

  

Investment securities

     994,557   

Foreign currencies

     750   
      995,307   

Net realized and unrealized gain

     1,481,686   

Net increase in net assets resulting from operations

   $ 1,448,557   

 

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, 2014 and the year ended October 31, 2013

(Unaudited)

 

     April 30,
2014		      October 31,
2013		  

Operations:

  

   

Net investment income (loss)

   $ (33,129 )     $ 49,867   

Net realized gain

     486,379         87,467   

Change in net unrealized appreciation

     995,307         1,191,989   

Net increase in net assets resulting from operations

     1,448,557         1,329,323   

Distributions to shareholders from net investment income:

     

Class A

     (27,341 )       (9,673 ) 

Class C

     (2,287 )       (244 ) 

Class R

     (332 )       (76 ) 

Class Y

     (23,626 )       (7,928 ) 

Class R5

     (283 )       (78 ) 

Class R6

     (77 )       (73 ) 

Total distributions from net investment income

     (53,946 )       (18,072 ) 

Distributions to shareholders from net realized gains:

     

Class A

     (46,698 )       (11,089 ) 

Class C

     (6,231 )       (296 ) 

Class R

     (652 )       (88 ) 

Class Y

     (32,687 )       (8,938 ) 

Class R5

     (391 )       (89 ) 

Class R6

     (107 )       (82 ) 

Total distributions from net realized gains

     (86,766 )       (20,582 ) 

Share transactions–net:

     

Class A

     8,529,821         3,169,496   

Class C

     2,855,547         395,832   

Class R

     60,335         48,911   

Class Y

     2,121,752         1,993,912   

Class R5

     474         28,137   

Net increase in net assets resulting from share transactions

     13,567,929         5,636,288   

Net increase in net assets

     14,875,774         6,926,957   

Net assets:

     

Beginning of period

     9,283,415         2,356,458   

End of period (includes undistributed net investment income (loss) of $(40,675) and $46,400, respectively)

   $ 24,159,189       $ 9,283,415   

Notes to Financial Statements

April 30, 2014

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

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 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.

 

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 securities) 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 securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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 trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/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.

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general 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.

 

8                         Invesco Select Opportunities 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 (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated 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. Forward Foreign Currency Contracts — The Fund may enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A forward 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 forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

9                         Invesco Select Opportunities 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. 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(s) 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, 2015, 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 Invesco continues the fee waiver agreement, it will terminate on February 28, 2015. The fee waiver agreement cannot be terminated during its term. 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.

Further, the Adviser has contractually agreed, through at least June 30, 2016, 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, 2014, the Adviser waived advisory fees and reimbursed fund level expenses of $81,371 and reimbursed class level expenses of $9,247, $1,144, $98, $4,611, $24 and $4 of 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, 2014, 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, 2014, 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, 2014, 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, 2014, IDI advised the Fund that IDI retained $7,712 in front-end sales commissions from the sale of Class A shares and $5 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.

 

10                         Invesco Select Opportunities 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, 2014. 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, 2014, there were transfers from Level 1 to Level 2 of $956,734 and from Level 2 to Level 1 of $175,336, due to foreign fair value adjustments.

 

     Level 1      Level 2      Level 3      Total  

Brazil

   $ 1,236,131       $ —       $ —       $ 1,236,131   

Canada

     990,050         —         —         990,050   

China

     1,251,564         —         —         1,251,564   

Hong Kong

     414,751         —         —         414,751   

France

     929,731         852,277         —         1,782,008   

Ireland

     984,053         956,734         —         1,940,787   

Netherlands

     752,074         783,254         —         1,535,328   

Norway

     —         906,570         —         906,570   

United Kingdom

     1,170,265         —         —         1,170,265   

United States

     12,134,109         —         —         12,134,109   

Total Investments

   $ 19,862,728       $ 3,498,835       $ —       $ 23,361,563   

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

NOTE 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.

 

11                         Invesco Select Opportunities Fund

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. 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. Capital loss carryforwards with no expiration date 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, 2013.

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, 2014 was $13,656,313 and $1,063,072, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $ 2,452,900   

Aggregate unrealized (depreciation) of investment securities

     (151,862 ) 

Net unrealized appreciation of investment securities

   $ 2,301,038   

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, 2014(a)		      Year ended
October 31, 2013		  
      Shares      Amount      Shares      Amount  

Sold:

            

Class A

      1,167,513       $ 17,175,322         294,065       $ 3,669,108   

Class C

      199,988         2,921,775         40,288         508,655   

Class R

      4,180         59,526         4,190         52,101   

Class Y

      153,470         2,197,910         178,443         2,176,694   

Class R5

      —         —         2,374         28,137   

Issued as reinvestment of dividends:

            

Class A

      3,856         52,561         321         3,496   

Class C

      496         6,719         35         379   

Class R

      58         809         —         —   

Class Y

      707         9,666         38         416   

Class R5

      35         474         —         —   

Reacquired:

            

Class A

      (583,985 )       (8,698,062 )       (39,476 )       (503,108 ) 

Class C

      (5,240 )       (72,947 )       (9,979 )       (113,202 ) 

Class R

      —         —         (238 )       (3,190 ) 

Class Y

      (5,804 )       (85,824 )       (14,293 )       (183,198 ) 

Net increase in share activity

      935,274       $ 13,567,929         455,768       $ 5,636,288   

 

(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 86% 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, 21% of the outstanding shares of the Fund are owned by the Adviser.

 

12                         Invesco Select 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
(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 04/30/14

   $ 13.70      $ (0.03 )    $ 1.51      $ 1.48      $ (0.07 )    $ (0.12 )    $ (0.19 )    $ 14.99        10.89 %    $ 14,299        1.48 %(d)      2.74 %(d)      (0.46 )%(d)      9 % 

Year ended 10/31/13

     10.63        0.11 (e)      3.13        3.24        (0.08 )      (0.09 )      (0.17 )      13.70        30.84        5,019        1.47        6.17        0.84 (e)      10   

Period ended 10/31/12(f)

     10.00        (0.00 )      0.63        0.63        —        —        —        10.63        6.30        1,186        1.48 (g)      15.54 (g)      (0.07 )(g)      7   

Class C

                            

Six months ended 04/30/14

     13.59        (0.08 )      1.49        1.41        (0.04 )      (0.12 )      (0.16 )      14.84        10.48        3,474        2.23 (d)      3.49 (d)      (1.21 )(d)      9   

Year ended 10/31/13

     10.62        0.01 (e)      3.12        3.13        (0.07 )      (0.09 )      (0.16 )      13.59        29.87        527        2.22        6.92        0.09 (e)      10   

Period ended 10/31/12(f)

     10.00        (0.02 )      0.64        0.62        —        —        —        10.62        6.20        90        2.23 (g)      16.29 (g)      (0.82 )(g)      7   

Class R

                            

Six months ended 04/30/14

     13.66        (0.05 )      1.51        1.46        (0.06 )      (0.12 )      (0.18 )      14.94        10.78        137        1.73 (d)      2.99 (d)      (0.71 )(d)      9   

Year ended 10/31/13

     10.63        0.07 (e)      3.12        3.19        (0.07 )      (0.09 )      (0.16 )      13.66        30.44        68        1.72        6.42        0.59 (e)      10   

Period ended 10/31/12(f)

     10.00        (0.01 )      0.64        0.63        —        —        —        10.63        6.30        11        1.73 (g)      15.79 (g)      (0.32 )(g)      7   

Class Y

                            

Six months ended 04/30/14

     13.74        (0.01 )      1.51        1.50        (0.08 )      (0.12 )      (0.20 )      15.04        11.06        6,183        1.23 (d)      2.49 (d)      (0.21 )(d)      9   

Year ended 10/31/13

     10.64        0.14 (e)      3.13        3.27        (0.08 )      (0.09 )      (0.17 )      13.74        31.11        3,610        1.22        5.92        1.09 (e)      10   

Period ended 10/31/12(f)

     10.00        0.00        0.64        0.64        —        —        —        10.64        6.40        1,049        1.23 (g)      15.29 (g)      0.18 (g)      7   

Class R5

                            

Six months ended 04/30/14

     13.74        (0.01 )      1.51        1.50        (0.08 )      (0.12 )      (0.20 )      15.04        11.06        51        1.23 (d)      2.39 (d)      (0.21 )(d)      9   

Year ended 10/31/13

     10.64        0.14 (e)      3.13        3.27        (0.08 )      (0.09 )      (0.17 )      13.74        31.12        46        1.22        5.90        1.09 (e)      10   

Period ended 10/31/12(f)

     10.00        0.00        0.64        0.64        —        —        —        10.64        6.40        11        1.23 (g)      15.35 (g)      0.18 (g)      7   

Class R6

                            

Six months ended 04/30/14

     13.73        (0.01 )      1.51        1.50        (0.08 )      (0.12 )      (0.20 )      15.03        11.07        14        1.23 (d)      2.34 (d)      (0.21 )(d)      9   

Year ended 10/31/13

     10.64        0.13 (e)      3.13        3.26        (0.08 )      (0.09 )      (0.17 )      13.73        31.02        13        1.22        5.89        1.09 (e)      10   

Period ended 10/31/12(f)

     10.80        0.00        (0.16 )      (0.16 )      —        —        —        10.64        (1.48 )      10        1.23 (g)      11.37 (g)      0.18 (g)      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 $9,437, $1,167, $101, $4,705, $49 and $13 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
(e)  Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes 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 (0.37)%, $(0.14) and (1.12)%, $(0.08) and (0.62)%, $(0.01) and (0.12)%, $(0.01) and (0.12)%, $(0.02) and (0.12)%, for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
(f)  Commencement date of August 3, 2012 for Class A, Class C, Class R, Class Y and Class R5 shares and September 24, 2012 for Class R6 shares, respectively.
(g)  Annualized.

 

13                         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, 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, 2013 through April 30, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

 

Class   Beginning
Account Value
(11/01/13)		     ACTUAL     HYPOTHETICAL
(5% annual return before
expenses)		     Annualized
Expense
Ratio		  
    Ending
Account Value
(04/30/14)1		     Expenses
Paid During
Period2		     Ending
Account Value
(04/30/14)		     Expenses
Paid During
Period2		    
A   $ 1,000.00      $ 1,109.70      $ 7.74      $ 1,017.46      $ 7.40        1.48 % 
C     1,000.00        1,104.80        11.64        1,013.74        11.13        2.23   
R     1,000.00        1,108.60        9.04        1,016.22        8.65        1.73   
Y     1,000.00        1,110.60        6.44        1,018.70        6.16        1.23   
R5     1,000.00        1,110.60        6.44        1,018.70        6.16        1.23   
R6     1,000.00        1,110.70        6.44        1,018.70        6.16        1.23   

 

1  The actual ending account value is based on the actual total return of the Fund for the period November 1, 2013 through April 30, 2014, 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.

 

14                         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.

 

 

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, 2014, 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, 2014, 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 7, 2014

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 7, 2014

 

By:  

/s/ Sheri Morris

  Sheri Morris
  Principal Financial Officer

Date:

   July 7, 2014

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.