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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 811-07452

AIM Variable Insurance Funds (Invesco Variable Insurance Funds)

(Exact name of registrant as specified in charter)

11 Greenway Plaza, Suite 2500 Houston, Texas 77046

(Address of principal executive offices) (Zip code)

Philip A. Taylor 11 Greenway Plaza, Suite 2500 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: 12/31

Date of reporting period: 6/30/10

Item 1. Reports to Stockholders.

          Invesco V.I. Basic Balanced Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIBBA-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-6.90	%
Series II Shares	-7.04
S&P 500 Index▼ (Broad Market Index)	-6.64
Custom Basic Balanced Index§ (Style-Specific Index)	-0.82
Lipper VUF Mixed-Asset Target Allocation Moderate Funds Index▼ (Peer Group Index)	-2.28

^▼ Lipper Inc.; ^§ Invesco, Lipper, Inc.

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

     The Custom Basic Balanced Index, created by Invesco to serve as a benchmark for Invesco Basic Balanced Fund, is composed of the following indexes: Russell 1000^® Value (60%) and Barclays Capital U.S. Aggregate (40%). The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Lipper VUF Mixed-Asset Target Allocation Moderate Funds Index is an unmanaged index considered representative of mixed-asset target allocation moderate variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns

As of 6/30/10

Series I Shares
Inception (5/1/98)	0.67	%
10 Years	-2.33
5 Years	-1.94
1 Year	13.90
Series II Shares
10 Years	-2.57	%
5 Years	-2.18
1 Year	13.74

Series II shares incepted on January 24, 2002. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.92% and 1.17%, 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 Series I and Series II shares was 1.51% and 1.76%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco V.I. Basic Balanced Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     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 April 30, 2011. See current prospectus for more information.

Invesco V.I. Basic Balanced Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–66.48%
Advertising–0.55%
Interpublic Group of Cos., Inc. (The)(b)		22,591	$	161,074
Aerospace & Defense–0.32%
General Dynamics Corp.		1,595		93,403
Air Freight & Logistics–0.47%
FedEx Corp.		1,975		138,467
Apparel Retail–0.63%
Gap, Inc. (The)		9,491		184,695
Asset Management & Custody Banks–0.92%
Janus Capital Group Inc.		10,142		90,061
State Street Corp.		5,306		179,449
				269,510
Automobile Manufacturers–0.40%
Ford Motor Co.(b)		11,555		116,474
Biotechnology–0.84%
Genzyme Corp.(b)		4,812		244,305
Cable & Satellite–2.00%
Comcast Corp. Class A		19,113		331,993
Time Warner Cable, Inc.		4,820		251,025
				583,018
Communications Equipment–0.96%
Cisco Systems, Inc.(b)		13,108		279,332
Computer Hardware–1.91%
Dell Inc.(b)		15,783		190,343
Hewlett-Packard Co.		8,480		367,014
				557,357
Consumer Electronics–0.70%
Sony Corp.–ADR (Japan)		7,611		203,062
Data Processing & Outsourced Services–0.54%
Western Union Co.		10,561		157,465
Diversified Banks–1.19%
U.S. Bancorp		5,720		127,842
Wells Fargo & Co.		8,632		220,979
				348,821
Diversified Chemicals–1.18%
Dow Chemical Co. (The)		8,712		206,648
PPG Industries, Inc.		2,302		139,064
				345,712
Diversified Support Services–0.37%
Cintas Corp.		4,555		109,183
Diversified Metals & Mining–0.41%
Freeport-McMoRan Copper & Gold Inc.		2,040		120,625
Drug Retail–0.55%
Walgreen Co.		6,031		161,028
Electric Utilities–2.88%
American Electric Power Co., Inc.		13,231		427,361
Edison International		2,842		90,148
Entergy Corp.		2,201		157,636
FirstEnergy Corp.		4,726		166,497
				841,642
Food Distributors–0.79%
Sysco Corp.		8,060		230,274
Health Care Distributors–0.48%
Cardinal Health, Inc.		4,143		139,246
Health Care Equipment–0.88%
Covidien PLC (Ireland)		6,424		258,116
Home Improvement Retail–1.12%
Home Depot, Inc. (The)		11,693		328,223
Human Resource & Employment Services–0.70%
Manpower Inc.		2,560		110,541
Robert Half International, Inc.		4,020		94,671
				205,212
Hypermarkets & Super Centers–1.21%
Wal-Mart Stores, Inc.		7,364		353,988
Industrial Conglomerates–3.77%
General Electric Co.		40,876		589,432
Siemens AG–ADR (Germany)		2,368		212,007
Tyco International Ltd.		8,491		299,138
				1,100,577
Industrial Machinery–1.62%
Dover Corp.		5,500		229,845
Ingersoll-Rand PLC (Ireland)		7,038		242,741
				472,586
Insurance Brokers–2.20%
Marsh & McLennan Cos., Inc.		28,536		643,487

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

Invesco V.I. Basic Balanced Fund

	Shares		Value
Integrated Oil & Gas–4.89%
ConocoPhillips		4,087	$	200,631
Exxon Mobil Corp.		3,423		195,350
Hess Corp.		3,964		199,548
Occidental Petroleum Corp.		6,205		478,716
Royal Dutch Shell PLC–ADR (United Kingdom)		7,069		355,005
				1,429,250
Integrated Telecommunication Services–0.67%
Verizon Communications Inc.		6,946		194,627
Internet Software & Services–2.21%
eBay Inc.(b)		22,935		449,755
Yahoo! Inc.(b)		14,226		196,746
				646,501
Investment Banking & Brokerage–0.89%
Charles Schwab Corp. (The)		18,374		260,543
IT Consulting & Other Services–0.64%
Amdocs Ltd.(b)		6,918		185,748
Life & Health Insurance–0.43%
Principal Financial Group, Inc.		5,326		124,841
Managed Health Care–0.97%
UnitedHealth Group Inc.		9,946		282,466
Motorcycle Manufacturers–0.34%
Harley-Davidson, Inc.		4,509		100,235
Movies & Entertainment–3.26%
Time Warner Inc.		12,977		375,165
Viacom Inc.–Class B		18,384		576,706
				951,871
Office Services & Supplies–0.40%
Avery Dennison Corp.		3,657		117,499
Oil & Gas Equipment & Services–0.82%
Schlumberger Ltd.		4,352		240,840
Oil & Gas Exploration & Production–1.71%
Anadarko Petroleum Corp.		5,953		214,844
Devon Energy Corp.		3,202		195,066
Noble Energy, Inc.		1,510		91,098
				501,008
Other Diversified Financial Services–5.62%
Bank of America Corp.		33,771		485,289
Citigroup Inc.(b)		53,418		200,852
JPMorgan Chase & Co.		26,081		954,825
				1,640,966
Packaged Foods & Meats–2.00%
Kraft Foods Inc.–Class A		15,726		440,328
Unilever N.V. (Netherlands)		5,255		143,567
				583,895
Personal Products–0.68%
Avon Products, Inc.		7,502		198,803
Pharmaceuticals–5.31%
Abbott Laboratories		3,259		152,456
Bayer AG–ADR (Germany)		3,687		205,735
Bristol-Myers Squibb Co.		15,227		379,761
Merck & Co., Inc.		9,382		328,089
Pfizer Inc.		19,323		275,546
Roche Holdings AG–ADR (Switzerland)		6,037		208,679
				1,550,266
Property & Casualty Insurance–0.79%
Chubb Corp. (The)		4,620		231,046
Regional Banks–2.58%
BB&T Corp.		6,650		174,962
Fifth Third Bancorp		11,968		147,087
PNC Financial Services Group, Inc.		7,617		430,360
				752,409
Semiconductor Equipment–0.34%
Lam Research Corp.(b)		2,619		99,679
Semiconductors–0.80%
Intel Corp.		12,006		233,517
Soft Drinks–0.54%
Coca-Cola Co. (The)		3,123		156,525
Wireless Telecommunication Services–1.00%
Vodafone Group PLC–ADR (United Kingdom)		14,195		293,411
Total Common Stocks & Other Equity Interests (Cost $19,795,873)				19,422,828
	Principal
	Amount
Bonds & Notes–12.47%
Airlines–0.36%
Delta Air Lines, Inc., Series 2001-1, Class A-2, Sr. Sec. Pass Through Ctfs., 7.11%, 09/18/11	$	100,000		103,875
Automotive Retail–0.31%
Advance Auto Parts Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20		25,000		25,406
AutoZone Inc., Sr. Unsec. Notes, 5.88%, 10/15/12		60,000		64,798
				90,204
Brewers–0.19%
Anheuser-Busch InBev Worldwide Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 01/15/20		50,000		54,042

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

Invesco V.I. Basic Balanced Fund

	Principal
	Amount		Value
Broadcasting–0.52%
CBS Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 04/15/20	$	50,000	$	53,428
COX Communications Inc., Sr. Unsec. Bonds, 8.38%, 03/01/39(c)		30,000		39,512
Sr. Unsec. Global Notes, 5.45%, 12/15/14		20,000		22,050
COX Enterprises Inc., Sr. Unsec. Notes, 7.88%, 09/15/10(c)		35,000		35,394
				150,384
Consumer Finance–0.07%
Capital One Bank USA N.A., Sr. Unsec. Global Notes, 5.75%, 09/15/10		20,000		20,176
Diversified Banks–0.85%
Barclays Bank PLC (United Kingdom), Sr. Unsec. Global Notes, 5.13%, 01/08/20		60,000		60,086
Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15		25,000		24,904
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 5.50%, 11/18/14(c)		100,000		110,898
Wells Fargo & Co., Sr. Unsec. Global Notes, 3.63%, 04/15/15		50,000		50,933
				246,821
Electric Utilities–0.79%
Carolina Power & Light Co., Sec. First Mortgage Bonds, 5.30%, 01/15/19		15,000		16,897
DCP Midstream LLC, Sr. Unsec. Notes, 7.88%, 08/16/10		85,000		85,648
Ohio Power Co., Series M, Sr. Unsec. Notes, 5.38%, 10/01/21		50,000		54,012
PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39		50,000		58,343
Virginia Electric & Power Co., Sr. Unsec. Notes, 5.00%, 06/30/19		15,000		16,432
				231,332
Gold–0.18%
Newmont Mining Corp., Sr. Unsec. Gtd. Notes, 5.13%, 10/01/19		50,000		53,473
Health Care Equipment–0.20%
Boston Scientific Corp., Sr. Unsec. Notes, 6.00%, 01/15/20		30,000		29,884
CareFusion Corp., Sr. Unsec. Global Notes, 6.38%, 08/01/19		25,000		28,540
				58,424
Health Care Services–0.27%
Express Scripts Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 06/15/14		70,000		79,304
Hotels, Resorts & Cruise Lines–0.32%
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15(c)		70,000		74,207
Wyndham Worldwide Corp., Sr. Unsec. Notes, 7.38%, 03/01/20		20,000		20,175
				94,382
Industrial REIT’s–0.32%
ProLogis, Sr. Unsec. Notes, 6.88%, 03/15/20		100,000		94,369
Integrated Telecommunication Services–0.97%
British Telecommunications PLC (United Kingdom), Sr. Unsec. Global Notes, 9.38%, 12/15/10		60,000		62,115
Cellco Partnership/Verizon Wireless Capital LLC, Sr. Unsec. Global Notes, 3.75%, 05/20/11		60,000		61,535
Koninklijke KPN N.V. (Netherlands), Sr. Unsec. Global Bonds, 8.00%, 10/01/10		40,000		40,646
Telecom Italia Capital S.A. (Italy), Sr. Unsec. Gtd. Global Notes, 4.88%, 10/01/10		40,000		40,228
Windstream Georgia Communications Corp., Sr. Unsec., 6.50%, 11/15/13		79,000		79,616
				284,140
Investment Banking & Brokerage–0.18%
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes, 6.00%, 01/14/20(c)		50,000		53,719
Life & Health Insurance–0.68%
MetLife Inc., Sr. Unsec. Global Notes, 7.72%, 02/15/19		75,000		89,019
Monumental Global Funding II, Sr. Sec. Notes, 5.65%, 07/14/11(c)		25,000		25,861
Prudential Financial Inc., Series D, Sr. Unsec. Medium-Term Notes, 3.88%, 01/14/15		50,000		50,493
7.38%, 06/15/19		30,000		34,466
				199,839
Managed Health Care–0.16%
UnitedHealth Group Inc., Sr. Unsec. Notes, 5.25%, 03/15/11		45,000		46,166
Mortgage Backed Securities–0.31%
U.S. Bank N.A., Sr. Unsec. Medium-Term Global Notes, 5.92%, 05/25/12		85,224		89,120
Multi-Line Insurance–0.16%
Liberty Mutual Group Inc., Sr. Unsec. Notes, 5.75%, 03/15/14(c)		45,000		46,986
Office Electronics–0.29%
Xerox Corp., Sr. Unsec. Notes, 6.88%, 08/15/11		40,000		42,264
4.25%, 02/15/15		40,000		41,233
				83,497

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

Invesco V.I. Basic Balanced Fund

	Principal
	Amount		Value
Office REIT’s–0.16%
Digital Realty Trust L.P., Unsec. Gtd. Unsub. Bonds, 5.88%, 02/01/20(c)	$	45,000	$	46,254
Oil & Gas Exploration & Production–0.05%
Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 6.88%, 01/20/40		15,000		15,188
Oil & Gas Refining & Marketing–0.14%
Premcor Refining Group Inc. (The), Sr. Unsec. Gtd. Global Notes, 6.75%, 02/01/11		40,000		41,093
Oil & Gas Storage & Transportation–0.52%
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Notes, 5.20%, 09/01/20		25,000		25,777
6.45%, 09/01/40		25,000		26,274
Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20		50,000		52,703
Transcontinental Gas Pipe Line Co. LLC, Series B, Sr. Unsec. Global Notes, 7.00%, 08/15/11		45,000		47,398
				152,152
Other Diversified Financial Services–2.39%
Bank of America Corp., Sr. Unsec. Global Notes, 6.50%, 08/01/16		20,000		21,693
Bear Stearns Cos. LLC (The), Sr. Unsec. Floating Rate Notes, 0.70%, 07/19/10(d)		180,000		180,053
Citigroup Inc., Sr. Unsec. Global Notes, 6.01%, 01/15/15		65,000		68,229
Countrywide Home Loans Inc., Series L, Sr. Unsec. Gtd. Medium-Term Global Notes, 4.00%, 03/22/11		15,000		15,307
ERAC USA Finance LLC, Sr. Gtd. Notes, 2.75%, 07/01/13(c)		20,000		20,121
General Electric Capital Corp., Sr. Unsec. Global Notes, 5.90%, 05/13/14		75,000		82,934
Sr. Unsec. Medium-Term Global Notes, 5.50%, 01/08/20		50,000		53,005
JPMorgan Chase & Co., Sr. Unsec. Global Notes, 4.75%, 05/01/13		65,000		69,436
Sr. Unsec. Notes, 3.40%, 06/24/15		70,000		70,189
4.95%, 03/25/20		25,000		25,958
Merrill Lynch & Co. Inc., Sr. Unsec. Medium-Term Notes, 6.88%, 04/25/18		85,000		91,028
Twin Reefs Pass-Through Trust, Floating Rate Pass Through Ctfs., 1.39%, (Acquired 12/07/04; Cost: $90,000)(c)(d)(e)(f)		90,000		292
				698,245
Packaged Foods & Meats–0.11%
Kraft Foods Inc., Sr. Unsec. Global Notes, 5.63%, 11/01/11		30,000		31,600
Paper Packaging–0.15%
Bemis Co. Inc., Sr. Unsec. Notes, 5.65%, 08/01/14		40,000		44,168
Paper Products–0.10%
International Paper Co., Sr. Unsec. Global Bonds, 7.50%, 08/15/21		25,000		29,209
Pharmaceuticals–0.14%
Abbott Laboratories, Sr. Unsec. Global Notes, 2.70%, 05/27/15		40,000		40,901
Property & Casualty Insurance–0.09%
CNA Financial Corp., Sr. Unsec. Notes, 7.35%, 11/15/19		25,000		26,823
Publishing–0.14%
Reed Elsevier Capital Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 08/01/11		40,000		42,287
Regional Banks–0.14%
PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 3.63%, 02/08/15		40,000		41,101
Retail REIT’s–0.10%
WT Finance Aust Pty Ltd./ Westfield Capital/WEA Finance LLC (Australia), Sr. Unsec. Gtd. Notes, 4.38%, 11/15/10(c)		30,000		30,300
Specialized Finance–0.18%
NASDAQ OMX Group Inc. (The), Sr. Unsec. Notes, 5.55%, 01/15/20		50,000		51,239
Specialty REIT’s–0.18%
Healthcare Realty Trust Inc., Sr. Unsec. Notes, 6.50%, 01/17/17		50,000		52,635
Steel–0.21%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Bonds, 9.00%, 02/15/15		15,000		17,732
Sr. Unsec. Global Notes, 7.00%, 10/15/39		40,000		42,179
				59,911
Technology Distributors–0.17%
Avnet Inc., Sr. Unsec. Notes, 5.88%, 06/15/20		50,000		50,632
Tobacco–0.12%
Altria Group Inc., Sr. Unsec. Gtd. Global Notes, 4.13%, 09/11/15		35,000		35,736
Trading Companies & Distributors–0.07%
GATX Corp., Sr. Unsec. Notes, 4.75%, 10/01/12		20,000		21,041
Wireless Telecommunication Services–0.18%
American Tower Corp., Sr. Unsec. Global Notes, 4.63%, 04/01/15		30,000		31,169
Vodafone Group PLC (United Kingdom), Sr. Unsec. Global Notes, 5.50%, 06/15/11		20,000		20,809
				51,978
Total Bonds & Notes (Cost $3,571,892)				3,642,746

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

Invesco V.I. Basic Balanced Fund

	Principal
	Amount		Value
U.S. Government Sponsored Agency Mortgage-Backed Securities–8.77%
Federal Home Loan Mortgage Corp. (FHLMC)–2.01%
Pass Through Ctfs.,
7.00%, 06/01/15 to 06/01/32	$	66,578	$	74,233
7.50%, 12/01/30 to 05/01/31		12,195		13,975
6.50%, 08/01/32		3,752		4,175
5.50%, 01/01/35 to 02/01/37		362,794		390,962
Pass Through Ctfs., TBA, 4.50%, 07/01/40(g)		100,000		103,594
				586,939
Federal National Mortgage Association (FNMA)–5.61%
Pass Through Ctfs.,
7.50%, 11/01/15 to 03/01/31		63,617		73,782
7.00%, 02/01/16 to 09/01/32		18,927		21,061
6.50%, 07/01/16 to 10/01/35		57,895		65,159
6.00%, 01/01/17 to 03/01/37		222,384		242,064
5.50%, 03/01/21		832		900
8.00%, 08/01/21 to 12/01/23		12,097		13,808
Pass Through Ctfs., TBA,
4.00%, 07/01/25(g)		50,000		51,953
4.50%, 07/01/25(g)		130,000		137,170
5.00%, 07/01/25 to 07/01/40(g)		630,000		667,509
5.50%, 07/01/25 to 07/01/40(g)		240,000		257,999
6.00%, 07/01/40(g)		100,000		108,469
				1,639,874
Government National Mortgage Association (GNMA)–1.15%
Pass Through Ctfs.,
7.50%, 06/15/23 to 10/15/31		27,799		31,719
8.50%, 11/15/24		28,254		32,809
8.00%, 08/15/25		6,472		7,494
6.50%, 03/15/29 to 01/15/37		236,936		264,036
				336,058
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $2,461,868)				2,562,871
U.S. Treasury Securities–7.63%
U.S. Treasury Notes–6.36%
0.75%, 05/31/12		800,000		802,313
1.50%, 12/31/13(h)		85,000		85,704
2.13%, 05/31/15		680,000		691,688
3.63%, 08/15/19		200,000		211,438
3.50%, 05/15/20		65,000		68,016
				1,859,159
U.S. Treasury Bonds–1.27%
5.38%, 02/15/31		195,000		239,820
4.50%, 08/15/39		40,000		44,056
4.38%, 05/15/40		80,000		86,513
				370,389
Total U.S. Treasury Securities (Cost $2,190,877)				2,229,548
Asset-Backed Securities–5.72%
BA Credit Card Trust, Series 2010-A1, Class A1, Floating Rate Pass Through Ctfs., 0.65%, 09/15/15(d)		40,000		39,920
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-6, Class 1A3, Variable Rate Pass Through Ctfs., 3.68%, 08/25/33(d)		35,012		32,023
Bear Stearns Commercial Mortgage Securities, Series 2004-PWR6, Class A6, Pass Through Ctfs., 4.83%, 11/11/41		80,000		83,617
Series 2005-PWR8, Class A4, Pass Through Ctfs., 4.67%, 06/11/41		45,000		46,645
Series 2006-PW11, Class A4, Variable Rate Pass Through Ctfs., 5.62%, 03/11/39(d)		100,000		106,399
Series 2006-T24, Class A4, Pass Through Ctfs., 5.54%, 10/12/41		50,000		52,556
Chase Issuance Trust, Series 2007-A17, Class A, Pass Through Ctfs., 5.12%, 10/15/14		80,000		86,946
Series 2009-A3, Class A3, Pass Through Ctfs., 2.40%, 06/17/13		50,000		50,720
Citibank Credit Card Issuance Trust, Series 2009-A5, Class A5, Pass Through Ctfs., 2.25%, 12/23/14		50,000		50,923
Citigroup Mortgage Loan Trust Inc., Series 2004-UST1, Class A4, Variable Rate Pass Through Ctfs., 2.50%, 08/25/34(d)		94,585		96,743
Countrywide Asset-Backed Ctfs., Series 2007-4, Class A1B, Pass Through Ctfs., 5.81%, 09/25/37		43,958		42,780
Credit Suisse Mortgage Capital Ctfs., Series 2010-6R, Class 1A1, Pass Through Ctfs., 5.50%, 02/27/37(c)		69,506		71,580
GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, Pass Through Ctfs., 4.75%, 07/10/39		125,000		129,481
Honda Auto Receivables Owner Trust, Series 2009-2, Class A3, Pass Through Ctfs., 2.79%, 01/15/13		45,000		45,801
LB-UBS Commercial Mortgage Trust, Series 2001-WM, Class A2, Pass Through Ctfs., 6.53%, 07/14/16(c)		80,000		82,950
Morgan Stanley Capital I, Series 2005-HQ7, Class A4, Variable Rate Pass Through Ctfs., 5.38%, 11/14/42(d)		60,000		64,085
Series 2005-T19, Class A4A, Pass Through Ctfs., 4.89%, 06/12/47		80,000		84,823
Series 2008-T29, Class A1, Pass Through Ctfs., 6.23%, 01/11/43		45,563		48,290
Option One Mortgage Securities Corp., Series 2007-4A, Floating Rate Notes, 0.44%, 04/25/12 (Acquired 05/11/07; Cost: $47,228)(c)(d)		47,228		35,421
TIAA Seasoned Commercial Mortgage Trust, Series 2007-C4, Class A2, Variable Rate Pass Through Ctfs., 5.79%, 08/15/39(d)		25,000		26,308

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

Invesco V.I. Basic Balanced Fund

	Principal
	Amount		Value
USAA Auto Owner Trust, Series 2009-1, Class A3, Pass Through Ctfs., 3.02%, 06/17/13	$	80,000	$	81,278
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A4, Pass Through Ctfs., 4.94%, 04/15/42		100,000		105,388
Series 2005-C21, Class AM, Variable Rate Pass Through Ctfs., 5.38%, 10/15/44(d)		40,000		38,939
WaMu Mortgage Pass Through Ctfs., Series 2003-AR8, Class A, Floating Rate Pass Through Ctfs., 2.83%, 08/25/33(d)		74,437		74,566
Wells Fargo Mortgage Backed Securities Trust, Series 2004-K, Class 1A2, Floating Rate Pass Through Ctfs., 4.47%, 07/25/34(d)		23,197		23,221
Series 2004-Z, Class 2A1, Floating Rate Pass Through Ctfs., 2.97%, 12/25/34(d)		75,678		70,758
Total Asset-Backed Securities (Cost $1,537,232)				1,672,161
U.S. Government Sponsored Agency Securities–0.46%
Federal National Mortgage Association (FNMA)–0.46%
Unsec. Global Notes, 2.63%, 11/20/14 (Cost $129,316)		130,000		134,438
	Shares
Money Market Funds–1.76%
Liquid Assets Portfolio–Institutional Class		256,660		256,660
Premier Portfolio–Institutional Class		256,660		256,660
Total Money Market Funds (Cost $513,320)				513,320
TOTAL INVESTMENTS–103.29% (Cost $30,200,378)				30,177,912
OTHER ASSETS LESS LIABILITIES–(3.29)%				(961,860	)
NET ASSETS–100.00%			$	29,216,052

Investment Abbreviations:

ADR	– American Depositary Receipt
Ctfs.	– Certificates
Gtd.	– Guaranteed
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
TBA	– To Be Announced
Unsec.	– Unsecured
Unsub.	– Unsubordinated

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $673,495, which represented 2.31% of the Fund’s Net Assets.
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(e)	Perpetual bond with no specified maturity date.
(f)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at June 30, 2010 represented less than 0.01% of the Fund’s Net Assets.
(g)	Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1I.
(h)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L and Note 4.

Portfolio Composition

By security type, based on total investments

as of June 30, 2010

Common Stocks & Other Equity Interests	64.4	%
Bonds & Notes	12.1
U.S. Government Sponsored Agency Mortgage-Backed Securities	8.5
U.S. Treasury Securities	7.4
Asset-Backed Securities	5.5
U.S. Government Sponsored Agency Securities	0.4
Money Market Funds	1.7

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

Invesco V.I. Basic Balanced Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $29,687,058)	$	29,664,592
Investments in affiliated money market funds, at value and cost		513,320
Total investments, at value (Cost $30,200,378)		30,177,912
Cash		126,283
Foreign currencies, at value (Cost $25)		25
Receivables for:
Investments sold		14,075,534
Investments sold to affiliates		1,403,632
Variation margin		563
Fund shares sold		525
Dividends and interest		99,691
Investment for trustee deferred compensation and retirement plans		25,763
Other assets		1,827
Total assets		45,911,755
Liabilities:
Payables for:
Investments purchased		14,727,853
Investments purchased from affiliates		1,875,235
Fund shares reacquired		1,652
Accrued fees to affiliates		15,676
Accrued other operating expenses		40,769
Trustee deferred compensation and retirement plans		34,518
Total liabilities		16,695,703
Net assets applicable to shares outstanding	$	29,216,052
Net assets consist of:
Shares of beneficial interest	$	49,369,881
Undistributed net investment income		771,864
Undistributed net realized gain (loss)		(20,882,739	)
Unrealized appreciation (depreciation)		(42,954	)
	$	29,216,052
Net Assets:
Series I	$	26,939,180
Series II	$	2,276,872
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		3,330,699
Series II		282,977
Series I:
Net asset value per share	$	8.09
Series II:
Net asset value per share	$	8.05

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Interest	$	196,081
Dividends (net of foreign withholding taxes of $5,334)		161,474
Dividends from affiliated money market funds		723
Total investment income		358,278
Expenses:
Advisory fees		123,601
Administrative services fees		57,190
Custodian fees		9,168
Distribution fees — Series II		3,485
Transfer agent fees		4,683
Trustees’ and officers’ fees and benefits		9,501
Professional services fees		21,836
Other		13,931
Total expenses		243,395
Less: Fees waived		(91,589	)
Net expenses		151,806
Net investment income		206,472
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $248,519)		(624,308	)
Foreign currencies		(6,417	)
Futures contracts		13,532
		(617,193	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(1,712,183	)
Foreign currencies		(9,628	)
Futures contracts		(17,855	)
		(1,739,666	)
Net realized and unrealized gain (loss)		(2,356,859	)
Net increase (decrease) in net assets resulting from operations	$	(2,150,387	)

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

Invesco V.I. Basic Balanced Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	206,472		$	632,897
Net realized gain (loss)		(617,193	)		(5,065,105	)
Change in net unrealized appreciation (depreciation)		(1,739,666	)		13,494,233
Net increase (decrease) in net assets resulting from operations		(2,150,387	)		9,062,025
Distributions to shareholders from net investment income:
Series I		—			(1,432,717	)
Series II		—			(137,986	)
Total distributions from net investment income		—			(1,570,703	)
Share transactions–net:
Series I		(2,320,613	)		(3,151,421	)
Series II		(748,916	)		(329,105	)
Net increase (decrease) in net assets resulting from share transactions		(3,069,529	)		(3,480,526	)
Net increase (decrease) in net assets		(5,219,916	)		4,010,796
Net assets:
Beginning of period		34,435,968			30,425,172
End of period (includes undistributed net investment income of $771,864 and $565,392, respectively)	$	29,216,052		$	34,435,968

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Basic Balanced Fund, formerly AIM V.I. Basic Balanced Fund, (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is long-term growth of capital and secondarily, current income.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean

Invesco V.I. Basic Balanced Fund

	between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco V.I. Basic Balanced Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Dollar Roll and Forward Commitment Transactions — The Fund may engage in dollar roll and forward commitment transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. These transactions are often conducted on a to be announced (“TBA”) basis. In a TBA mortgage-backed transaction, the seller does not specify the particular securities to be delivered. Rather, a Fund agrees to accept any security that meets specified terms, such as an agreed upon issuer, coupon rate and terms of the underlying mortgages. TBA mortgage-backed transactions generally settle once a month on a specific date.
	In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to purchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price and future date. The mortgage-backed securities to be purchased will bear the same coupon as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. Based on the typical structure of dollar roll transactions by the Fund, the dollar roll transactions are accounted for as financing transactions in which the Fund receives compensation as either a “fee” or a “drop”. “Fee” income which is agreed upon amongst the parties at the commencement of the dollar roll and the “drop” which is the difference between the selling price and the repurchase price of the mortgage-backed securities are amortized to income. During the period between the sale and purchase settlement dates, the Fund will not be entitled to receive interest and principal payments on securities purchased and not yet settled. Proceeds of the sale may be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. Dollar roll transactions are considered borrowings under the 1940 Act.
	Forward commitment transactions involve commitments by the Fund to acquire or sell TBA mortgage-backed securities from/to a financial institution, such as a bank or broker-dealer at a specified future date and amount. The TBA mortgage-backed security is marked to market until settlement and the unrealized appreciation or depreciation is recorded in the statement of operations.
	At the time the Fund enters into the dollar roll or forward commitment transaction, mortgage-backed securities or other liquid assets held by the Fund having a dollar value equal to the purchase price or in an amount sufficient to honor the forward commitment will be segregated.
	Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed the return on the securities sold.
	Forward commitment transactions involve the risk that a counter-party to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Settlement dates of forward commitment transactions may be a month or more after entering into these transactions and as a result the market values of the securities may vary from the purchase or sale prices. Therefore, forward commitment transactions may increase the Fund’s overall interest rate exposure.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future

Invesco V.I. Basic Balanced Fund

	date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
M.	Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $150 million		0	.75%
Over $150 million		0	.50%

  Effective January 1, 2010, through at least April 30, 2011, the Adviser has contractually agreed to waive advisory fees to the extent necessary so that the advisory fees payable by the Fund (based on the Fund’s average daily net assets) do not exceed the annual rate of:

Average Net Assets	Rate
First $250 million		0	.62%
Next $250 million		0	.605%
Next $500 million		0	.59%
Next $1.5 billion		0	.575%
Next $2.5 billion		0	.56%
Next $2.5 billion		0	.545%
Next $2.5 billion		0	.53%
Over $10 billion		0	.515%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.91% and Series II shares to 1.16% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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.

Invesco V.I. Basic Balanced Fund

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $91,589.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $32,396 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	19,521,734		$	414,414	$	—	$	19,936,148
U.S. Treasury Securities		—			2,229,548		—		2,229,548
U.S. Government Sponsored Agency Securities		—			2,697,309		—		2,697,309
Corporate Debt Securities		—			3,642,746		—		3,642,746
Asset-Backed Securities		—			1,672,161		—		1,672,161
	$	19,521,734		$	10,656,178	$	—	$	30,177,912
Futures*		(10,794	)		—		—		(10,794	)
Total Investments	$	19,510,940		$	10,656,178	$	—	$	30,167,118

*  Unrealized appreciation (depreciation).

Invesco V.I. Basic Balanced Fund

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	5,976	$	(16,770	)

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

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain on
	Statement of Operations
	Futures*
Realized Gain
Interest rate risk	$	13,532
Change in Unrealized Appreciation (Depreciation)
Interest rate risk		(17,855	)
Total	$	(4,323	)

*  The average value of futuresd outstanding during the period was $2,210,469.

Open Futures Contracts
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
U.S. Treasury 2 Year Notes		2		September-2010/Long	$	437,656		$	1,371
U.S. Treasury 30 Year Bonds		2		September-2010/Long		255,000			4,605
Subtotal					$	692,656		$	5,976
U.S. Treasury 10 Year Notes		6		September-2010/Short		(735,281	)		(16,770	)
Total					$	(42,625	)	$	(10,794	)

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $2,329,121 and securities sales of $1,717,894, which resulted in net realized gains of $248,519.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,337 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

Invesco V.I. Basic Balanced Fund

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	10,514,572
December 31, 2016		3,766,236
December 31, 2017		5,167,583
Total capital loss carryforward	$	19,448,391

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

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $21,823,334 and $24,917,412, 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	$	804,111
Aggregate unrealized (depreciation) of investment securities		(1,595,847	)
Net unrealized appreciation (depreciation) of investment securities	$	(791,736	)
Cost of investments for tax purposes is $30,969,648.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		48,991		$	434,360			349,171		$	2,595,538
Series II		11,078			97,694			32,625			248,311
Issued as reinvestment of dividends:
Series I		—			—			168,555			1,432,717
Series II		—			—			16,291			137,986
Reacquired:
Series I		(313,250	)		(2,754,973	)		(972,587	)		(7,179,676	)
Series II		(95,710	)		(846,610	)		(98,463	)		(715,402	)
Net increase (decrease) in share activity		(348,891	)	$	(3,069,529	)		(504,408	)	$	(3,480,526	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 83% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Basic Balanced Fund

NOTE 11—Financial Highlights

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

																					Ratio of			Ratio of
																					expenses			expenses
					Net gains																to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends										net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	8.69	$	0.06	$	(0.66	)	$	(0.60	)	$	—		$	8.09		(6.90	)%	$	26,939		0.90	%(d)		1.46	%(d)		1.27	%(d)		77	%
Year ended 12/31/09		6.81		0.15		2.14			2.29			(0.41	)		8.69		33.84			31,253		0.90			1.50			2.06			57
Year ended 12/31/08		11.81		0.31		(4.84	)		(4.53	)		(0.47	)		6.81		(38.32	)		27,596		0.91			1.35			3.11			50
Year ended 12/31/07		11.92		0.28		(0.01	)		0.27			(0.38	)		11.81		2.20			59,000		0.91			1.18			2.31			47
Year ended 12/31/06		10.99		0.25		0.91			1.16			(0.23	)		11.92		10.55			84,212		0.91			1.15			2.16			44
Year ended 12/31/05		10.59		0.18		0.38			0.56			(0.16	)		10.99		5.29			90,633		0.95			1.15			1.68			44
Series II
Six months ended 06/30/10		8.66		0.04		(0.65	)		(0.61	)		—			8.05		(7.04	)		2,277		1.15	(d)		1.71	(d)		1.02	(d)		77
Year ended 12/31/09		6.78		0.13		2.13			2.26			(0.38	)		8.66		33.54			3,183		1.15			1.75			1.81			57
Year ended 12/31/08		11.73		0.28		(4.79	)		(4.51	)		(0.44	)		6.78		(38.46	)		2,829		1.16			1.60			2.86			50
Year ended 12/31/07		11.84		0.25		(0.01	)		0.24			(0.35	)		11.73		1.94			5,295		1.16			1.43			2.06			47
Year ended 12/31/06		10.91		0.22		0.91			1.13			(0.20	)		11.84		10.36			5,878		1.16			1.40			1.91			44
Year ended 12/31/05		10.53		0.15		0.37			0.52			(0.14	)		10.91		4.91			5,870		1.20			1.40			1.43			44

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $30,423 and $2,811 for Series I and Series II shares, respectively.

Invesco V.I. Basic Balanced Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	931.00	$	4.31	$	1,020.33	$	4.51		0.90	%
Series II		1,000.00		929.60		5.50		1,019.09		5.76		1.15

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Basic Balanced Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Basic Balanced Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Mixed-Asset Target Allocation Moderate Funds Index. The Board noted that the performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board also noted that Invesco Advisers made manager and process changes relating to the fixed income portion of the Fund’s portfolio assets in 2008 and early 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual funds advised by Invesco Advisers, one of which is a fund of funds for which Invesco Advisers does not charge a separate advisory fee.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011, in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board considered the effect this expense limitation has on the Fund’s total estimated expenses.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Basic Balanced Fund

          Invesco V.I. Basic Value Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIBVA-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-10.87	%
Series II Shares	-11.09
S&P 500 Index6 (Broad Market Index)	-6.64
Russell 1000 Value Index6 (Style-Specific Index)	-5.12
Lipper VUF Large-Cap Value Funds Index6 (Peer Group Index)	-6.79

⁶ Lipper Inc.

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

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

     The Lipper VUF Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns

As of 6/30/10

Series I Shares
Inception (9/10/01)	-0.98	%
5 Years	-4.98
1 Year	13.15
Series II Shares
Inception (9/10/01)	-1.22	%
5 Years	-5.23
1 Year	13.02

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.00% and 1.25%, 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.

     Invesco V.I. Basic Value Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. Basic Value Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–93.96%
Advertising–4.74%
Interpublic Group of Cos., Inc. (The)(b)		303,441	$	2,163,534
Omnicom Group Inc.		331,964		11,386,365
				13,549,899
Aerospace & Defense–1.90%
Honeywell International Inc.		139,338		5,438,362
Asset Management & Custody Banks–1.83%
Bank of New York Mellon Corp.		212,076		5,236,156
Brewers–3.29%
Molson Coors Brewing Co.–Class B		222,452		9,423,067
Cable & Satellite–5.62%
Comcast Corp.–Class A		421,824		7,327,083
Time Warner Cable, Inc.		168,195		8,759,595
				16,086,678
Casinos & Gaming–1.48%
International Game Technology		269,101		4,224,886
Computer Hardware–4.20%
Dell Inc.(b)		290,677		3,505,564
Hewlett-Packard Co.		196,563		8,507,247
				12,012,811
Data Processing & Outsourced Services–1.26%
Western Union Co.		242,012		3,608,399
Department Stores–1.75%
Macy’s, Inc.		279,389		5,001,063
Diversified Banks–5.11%
Comerica Inc.		101,966		3,755,408
U.S. Bancorp		166,230		3,715,240
Wells Fargo & Co.		279,855		7,164,288
				14,634,936
General Merchandise Stores–2.55%
Target Corp.		148,175		7,285,765
Household Products–2.49%
Procter & Gamble Co. (The)		118,551		7,110,689
Hypermarkets & Super Centers–2.97%
Wal-Mart Stores, Inc.		177,085		8,512,476
Industrial Conglomerates–2.52%
General Electric Co.		249,234		3,593,954
Tyco International Ltd.		102,326		3,604,945
				7,198,899
Industrial Machinery–2.50%
Illinois Tool Works, Inc.		173,360		7,156,301
Integrated Oil & Gas–9.55%
Chevron Corp.		106,126		7,201,710
Exxon Mobil Corp.		100,109		5,713,221
Petroleo Brasileiro S.A.–ADR (Brazil)		169,825		5,828,394
Royal Dutch Shell PLC–ADR (United Kingdom)		170,742		8,574,663
				27,317,988
Internet Software & Services–2.67%
eBay, Inc.(b)		389,178		7,631,781
Investment Banking & Brokerage–2.73%
Goldman Sachs Group, Inc. (The)		27,844		3,655,082
Morgan Stanley		178,482		4,142,567
				7,797,649
IT Consulting & Other Services–1.35%
Accenture PLC–Class A (Ireland)		100,092		3,868,556
Life & Health Insurance–2.81%
MetLife, Inc.		114,471		4,322,425
Torchmark Corp.		74,870		3,706,814
				8,029,239
Managed Health Care–1.25%
UnitedHealth Group Inc.		126,292		3,586,693
Movies & Entertainment–1.97%
Time Warner Inc.		194,991		5,637,190
Oil & Gas Drilling–1.52%
Noble Corp.(b)		140,786		4,351,695
Other Diversified Financial Services–6.80%
Bank of America Corp.		600,551		8,629,918
JPMorgan Chase & Co.		295,970		10,835,461
				19,465,379
Packaged Foods & Meats–2.00%
Kraft Foods Inc.–Class A		204,056		5,713,568

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

Invesco V.I. Basic Value Fund

	Shares		Value
Pharmaceuticals–3.52%
Bristol-Myers Squibb Co.		201,637	$	5,028,827
Pfizer Inc.		353,492		5,040,796
				10,069,623
Property & Casualty Insurance–7.89%
Allied World Assurance Co. Holdings, Ltd. (Bermuda)		35,986		1,633,045
Aspen Insurance Holdings Ltd.		78,324		1,937,736
Chubb Corp.		233,625		11,683,586
Travelers Cos., Inc. (The)		148,732		7,325,051
				22,579,418
Semiconductors–1.71%
Intel Corp.		251,550		4,892,647
Soft Drinks–1.27%
Coca-Cola Co. (The)		72,557		3,636,557
Steel–1.45%
POSCO–ADR (South Korea)		44,131		4,162,436
Wireless Telecommunication Services–1.26%
Vodafone Group PLC–ADR (United Kingdom)		174,083		3,598,296
Total Common Stocks & Other Equity Interests (Cost $268,675,733)				268,819,102
Money Market Funds–2.14%
Liquid Assets Portfolio–Institutional Class(c)		3,068,363		3,068,363
Premier Portfolio–Institutional Class(c)		3,068,363		3,068,363
Total Money Market Funds (Cost $6,136,726)				6,136,726
TOTAL INVESTMENTS–96.10% (Cost $274,812,459)				274,955,828
OTHER ASSETS LESS LIABILITIES–3.90%				11,146,981
NET ASSETS–100.00%			$	286,102,809

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	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 June 30, 2010

Financials	27.2	%
Consumer Discretionary	18.1
Consumer Staples	12.0
Information Technology	11.2
Energy	11.1
Industrials	6.9
Health Care	4.8
Materials	1.4
Telecommunication Services	1.3
Money Market Funds Plus Other Assets Less Liabilities	6.0

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

Invesco V.I. Basic Value Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $268,675,733)	$	268,819,102
Investments in affiliated money market funds, at value and cost		6,136,726
Total investments, at value (Cost $274,812,459)		274,955,828
Receivables for:
Investments sold		173,069,663
Investments sold to affiliates		25,824,361
Fund shares sold		1,052,225
Dividends		266,194
Investment for trustee deferred compensation and retirement plans		19,061
Other assets		2,131
Total assets		475,189,463
Liabilities:
Payables for:
Investments purchased		184,618,604
Investments purchased from affiliates		3,607,296
Fund shares reacquired		481,858
Accrued fees to affiliates		278,069
Accrued other operating expenses		23,760
Trustee deferred compensation and retirement plans		77,067
Total liabilities		189,086,654
Net assets applicable to shares outstanding	$	286,102,809
Net assets consist of:
Shares of beneficial interest	$	372,853,527
Undistributed net investment income		1,808,324
Undistributed net realized gain (loss)		(88,575,745	)
Unrealized appreciation		16,703
	$	286,102,809
Net Assets:
Series I	$	170,616,757
Series II	$	115,486,052
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		32,010,114
Series II		21,826,260
Series I:
Net asset value per share	$	5.33
Series II:
Net asset value per share	$	5.29

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $70,943)	$	2,168,425
Dividends from affiliated money market funds		3,025
Total investment income		2,171,450
Expenses:
Advisory fees		1,177,943
Administrative services fees		454,663
Custodian fees		8,196
Distribution fees — Series II		164,310
Transfer agent fees		10,453
Trustees’ and officers’ fees and benefits		14,613
Other		20,594
Total expenses		1,850,772
Less: Fees waived		(5,225	)
Net expenses		1,845,547
Net investment income		325,903
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(391,829))		(3,141,916	)
Foreign currencies		(67,187	)
		(3,209,103	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(31,104,559	)
Foreign currencies		(126,666	)
		(31,231,225	)
Net realized and unrealized gain (loss)		(34,440,328	)
Net increase (decrease) in net assets resulting from operations	$	(34,114,425	)

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

Invesco V.I. Basic Value Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	325,903		$	1,541,745
Net realized gain (loss)		(3,209,103	)		(33,121,862	)
Change in net unrealized appreciation (depreciation)		(31,231,225	)		158,453,793
Net increase (decrease) in net assets resulting from operations		(34,114,425	)		126,873,676
Distributions to shareholders from net investment income:
Series I		—			(3,201,037	)
Series II		—			(1,368,809	)
Total distributions from net investment income		—			(4,569,846	)
Share transactions–net:
Series I		(35,650,828	)		(1,497,408	)
Series II		(4,285,185	)		(45,220,456	)
Net increase (decrease) in net assets resulting from share transactions		(39,936,013	)		(46,717,864	)
Net increase (decrease) in net assets		(74,050,438	)		75,585,966
Net assets:
Beginning of period		360,153,247			284,567,281
End of period (includes undistributed net investment income of $1,808,324 and $1,482,421, respectively)	$	286,102,809		$	360,153,247

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Basic Value Fund, formerly AIM V.I. Basic Value Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. Basic Value Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Basic Value Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.695%
Next $250 million		0	.67%
Next $500 million		0	.645%
Next $1.5 billion		0	.62%
Next $2.5 billion		0	.595%
Next $2.5 billion		0	.57%
Next $2.5 billion		0	.545%
Over $10 billion		0	.52%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an

Invesco V.I. Basic Value Fund

expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds use money market fund waiver without securities lending.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $5,225.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $44,332 for accounting and fund administrative services and reimbursed $410,331 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	274,955,828	$	—	$	—	$	274,955,828

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $32,223,016 and securities sales of $4,128,486, which resulted in net realized (losses) of $(391,829).

Invesco V.I. Basic Value Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,723 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	40,544,207
December 31, 2017		32,409,899
Total capital loss carryforward	$	72,954,106

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $252,587,835 and $300,283,504, 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	$	—
Aggregate unrealized (depreciation) of investment securities		(10,640,302	)
Net unrealized appreciation (depreciation) of investment securities	$	(10,640,302	)
Cost of investments for tax purposes is $285,596,130.

Invesco V.I. Basic Value Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		1,353,253		$	8,270,144			7,249,578		$	36,341,584
Series II		2,718,880			16,185,905			6,780,957			32,543,999
Issued as reinvestment of dividends:
Class A		—			—			550,953			3,201,037
Series II		—			—			236,818			1,368,809
Reacquired:
Class A		(7,154,992	)		(43,920,972	)		(8,478,204	)		(41,040,029	)
Series II		(3,398,612	)		(20,471,090	)		(15,711,336	)		(79,133,264	)
Net increase (decrease) in share activity		(6,481,471	)	$	(39,936,013	)		(9,371,234	)	$	(46,717,864	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 62% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Basic Value Fund

NOTE 10—Financial Highlights

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

																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset					(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net			securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income			unrealized)			operations			income			gains			Distributions			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	5.98	$	0.01	(c)	$	(0.66	)	$	(0.65	)	$	—		$	—		$	—		$	5.33		(10.87	)%	$	170,617		0.99	%(d)		0.99	%(d)		0.29	%(d)		76	%
Year ended 12/31/09		4.10		0.03	(c)		1.94			1.97			(0.09	)		—			(0.09	)		5.98		48.00			226,282		0.98			0.99			0.59			23
Year ended 12/31/08		12.73		0.10	(c)		(6.68	)		(6.58	)		(0.09	)		(1.96	)		(2.05	)		4.10		(51.77	)		157,693		1.03			1.03			0.99			58
Year ended 12/31/07		13.35		0.07	(c)		0.17			0.24			(0.08	)		(0.78	)		(0.86	)		12.73		1.62			399,974		0.96			0.99			0.52			25
Year ended 12/31/06		12.37		0.07	(c)		1.54			1.61			(0.05	)		(0.58	)		(0.63	)		13.35		13.12			489,352		0.97			1.02			0.54			15
Year ended 12/31/05		11.84		0.05			0.63			0.68			(0.01	)		(0.14	)		(0.15	)		12.37		5.74			487,332		0.97			1.02			0.38			16
Series II
Six months ended 06/30/10		5.95		0.00	(c)		(0.66	)		(0.66	)		—			—			—			5.29		(11.09	)		115,486		1.24	(d)		1.24	(d)		0.04	(d)		76
Year ended 12/31/09		4.07		0.02	(c)		1.92			1.94			(0.06	)		—			(0.06	)		5.95		47.74			133,872		1.23			1.24			0.34			23
Year ended 12/31/08		12.62		0.07	(c)		(6.61	)		(6.54	)		(0.05	)		(1.96	)		(2.01	)		4.07		(51.90	)		126,874		1.28			1.28			0.74			58
Year ended 12/31/07		13.24		0.04	(c)		0.16			0.20			(0.04	)		(0.78	)		(0.82	)		12.62		1.36			303,628		1.21			1.24			0.27			25
Year ended 12/31/06		12.26		0.04	(c)		1.54			1.58			(0.02	)		(0.58	)		(0.60	)		13.24		12.94			339,457		1.22			1.27			0.29			15
Year ended 12/31/05		11.76		0.02			0.62			0.64			0.00			(0.14	)		(0.14	)		12.26		5.43			363,393		1.22			1.27			0.13			16

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are based on average daily net assets (000’s omitted) of $212,673 and $132,537 for Series I and Series II shares, respectively.

Invesco V.I. Basic Value Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	891.30	$	4.64	$	1,019.89	$	4.96		0.99	%
Series II		1,000.00		889.10		5.81		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 January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Basic Value Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

Invesco V.I. Basic Value Fund

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds Large-Cap Value Index. The Board noted that the performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and in the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rates for the other mutual funds.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Basic Value Fund

          Invesco V.I. Capital Appreciation Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VICAP-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-8.61	%
Series II Shares	-8.70
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell 1000 Growth Index▼ (Style-Specific Index)	-7.65
Lipper VUF Multi-Cap Growth Funds Category Average▼ (Peer Group)	-6.48

^▼ Lipper Inc.

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

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

     The Lipper VUF Multi-Cap Growth Funds Category Average represents an average of all of the variable insurance underlying funds in the Lipper Multi-Cap Growth Funds category.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (5/5/93)	4.85	%
10 Years	-5.91
5 Years	-3.34
1 Year	7.72
Series II Shares
10 Years	-6.14	%
5 Years	-3.58
1 Year	7.50

Series II shares incepted on August 21, 2001. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.92% and 1.17%, 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.

     Invesco V.I. Capital Appreciation Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. Capital Appreciation Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–95.86%
Aerospace & Defense–2.27%
Goodrich Corp.		56,818	$	3,764,193
Rockwell Collins, Inc.		39,272		2,086,521
United Technologies Corp.		116,159		7,539,881
				13,390,595
Air Freight & Logistics–0.57%
Expeditors International of Washington, Inc.		97,144		3,352,440
Airlines–1.29%
Delta Air Lines, Inc.(b)		215,083		2,527,225
UAL Corp.(b)(c)		248,287		5,104,781
				7,632,006
Apparel Retail–1.02%
American Eagle Outfitters, Inc.		313,021		3,677,997
Men’s Wearhouse, Inc. (The)		126,009		2,313,525
				5,991,522
Apparel, Accessories & Luxury Goods–1.15%
Coach, Inc.		185,643		6,785,252
Asset Management & Custody Banks–0.41%
T. Rowe Price Group Inc.		54,760		2,430,796
Auto Parts & Equipment–2.20%
Autoliv, Inc. (Sweden)		113,497		5,430,832
BorgWarner, Inc.(b)		42,066		1,570,744
Johnson Controls, Inc.		222,602		5,981,316
				12,982,892
Automobile Manufacturers–0.64%
Toyota Motor Corp. (Japan)		110,000		3,783,900
Biotechnology–2.89%
Amgen Inc.(b)		143,324		7,538,843
Gilead Sciences, Inc.(b)		277,319		9,506,495
				17,045,338
Broadcasting–0.70%
Scripps Networks Interactive Inc.–Class A		102,586		4,138,319
Casinos & Gaming–0.56%
International Game Technology		211,656		3,322,999
Communications Equipment–3.72%
Cisco Systems, Inc.(b)		446,633		9,517,749
QUALCOMM Inc.		234,890		7,713,788
Research In Motion Ltd. (Canada)(b)		94,944		4,676,941
				21,908,478
Computer Hardware–7.15%
Apple Inc.(b)		129,788		32,645,576
Hewlett-Packard Co.		135,790		5,876,991
Teradata Corp.(b)		118,561		3,613,739
				42,136,306
Computer Storage & Peripherals–0.93%
EMC Corp.(b)		299,806		5,486,450
Construction & Engineering–0.56%
Fluor Corp.		77,674		3,301,145
Construction, Farm Machinery & Heavy Trucks–0.32%
Komatsu Ltd. (Japan)		105,500		1,906,931
Consumer Finance–0.49%
American Express Co.		72,142		2,864,037
Data Processing & Outsourced Services–2.41%
MasterCard, Inc.–Class A		24,925		4,973,285
Visa Inc.–Class A		130,270		9,216,603
				14,189,888
Department Stores–0.49%
Kohl’s Corp.(b)		60,800		2,888,000
Diversified Banks–0.52%
Banco Bradesco S.A.–ADR (Brazil)(c)		194,363		3,082,597
Diversified Metals & Mining–0.47%
BHP Billiton Ltd. (Australia)		89,792		2,791,025
Drug Retail–0.85%
Walgreen Co.		187,762		5,013,246
Electrical Components & Equipment–1.67%
Cooper Industries PLC (Ireland)		224,372		9,872,368
Electronic Components–0.84%
Corning Inc.		308,068		4,975,298
Electronic Manufacturing Services–1.51%
Flextronics International Ltd. (Singapore)(b)		793,514		4,443,678
Tyco Electronics Ltd. (Switzerland)		174,731		4,434,673
				8,878,351

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

Invesco V.I. Capital Appreciation Fund

	Shares		Value
Fertilizers & Agricultural Chemicals–0.78%
Monsanto Co.		43,004	$	1,987,645
Potash Corp. of Saskatchewan Inc. (Canada)		30,011		2,588,149
				4,575,794
Gas Utilities–0.29%
EQT Corp.		47,610		1,720,625
General Merchandise Stores–1.50%
Dollar Tree, Inc.(b)		211,844		8,819,045
Health Care Distributors–2.24%
Cardinal Health, Inc.		221,524		7,445,422
McKesson Corp.		85,597		5,748,694
				13,194,116
Health Care Equipment–1.65%
Baxter International Inc.		91,590		3,722,218
Hospira, Inc.(b)		43,100		2,476,095
Thoratec Corp.(b)		31,041		1,326,382
Varian Medical Systems, Inc.(b)		41,593		2,174,482
				9,699,177
Health Care Services–3.34%
Express Scripts, Inc.(b)		215,604		10,137,700
Medco Health Solutions, Inc.(b)		173,533		9,558,198
				19,695,898
Health Care Supplies–0.61%
DENTSPLY International Inc.		119,308		3,568,502
Home Improvement Retail–1.30%
Lowe’s Cos., Inc.		374,802		7,653,457
Homefurnishing Retail–0.80%
Bed Bath & Beyond Inc.(b)		126,624		4,695,218
Hotels, Resorts & Cruise Lines–1.10%
Carnival Corp.(d)		213,486		6,455,817
Household Products–0.60%
Colgate-Palmolive Co.		44,994		3,543,728
Housewares & Specialties–0.46%
Fortune Brands, Inc.		68,539		2,685,358
Human Resource & Employment Services–0.49%
Robert Half International, Inc.		121,733		2,866,812
Hypermarkets & Super Centers–1.65%
Costco Wholesale Corp.		177,613		9,738,521
Industrial Gases–0.55%
Praxair, Inc.		42,564		3,234,438
Industrial Machinery–3.19%
Illinois Tool Works Inc.		104,717		4,322,718
Ingersoll-Rand PLC (Ireland)		322,869		11,135,752
Kennametal Inc.		132,111		3,359,582
				18,818,052
Integrated Oil & Gas–2.78%
Exxon Mobil Corp.		107,707		6,146,839
Occidental Petroleum Corp.		132,663		10,234,950
				16,381,789
Internet Retail–2.22%
Amazon.com, Inc.(b)		92,275		10,081,966
Priceline.com Inc.(b)		17,009		3,002,769
				13,084,735
Internet Software & Services–4.00%
Google Inc.–Class A(b)		39,302		17,487,425
VeriSign, Inc.(b)		229,435		6,091,499
				23,578,924
Investment Banking & Brokerage–2.28%
Goldman Sachs Group, Inc. (The)		56,061		7,359,127
Jefferies Group, Inc.(c)		288,108		6,073,317
				13,432,444
IT Consulting & Other Services–1.95%
Amdocs Ltd.(b)		132,223		3,550,188
Cognizant Technology Solutions Corp.–Class A(b)		60,365		3,021,872
International Business Machines Corp.		39,649		4,895,858
				11,467,918
Life Sciences Tools & Services–1.33%
Life Technologies Corp.(b)		63,762		3,012,754
Thermo Fisher Scientific, Inc.(b)		98,413		4,827,158
				7,839,912
Managed Health Care–2.39%
UnitedHealth Group Inc.		495,348		14,067,883
Oil & Gas Drilling–0.31%
Transocean Ltd.(b)		39,764		1,842,266
Oil & Gas Equipment & Services–3.89%
Baker Hughes Inc.		88,734		3,688,672
Cameron International Corp.(b)		143,910		4,679,953
Halliburton Co.		86,450		2,122,348
Hornbeck Offshore Services, Inc.(b)		150,320		2,194,672
Schlumberger Ltd.		43,804		2,424,113
Smith International, Inc.		164,692		6,200,654
Weatherford International Ltd.(b)		121,898		1,601,740
				22,912,152

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

Invesco V.I. Capital Appreciation Fund

	Shares		Value
Oil & Gas Exploration & Production–0.57%
Apache Corp.		40,199	$	3,384,354
Other Diversified Financial Services–1.22%
JPMorgan Chase & Co.		196,465		7,192,584
Pharmaceuticals–1.99%
Abbott Laboratories		102,301		4,785,641
Johnson & Johnson		54,282		3,205,895
Shire PLC (United Kingdom)		182,973		3,718,397
				11,709,933
Railroads–1.07%
Union Pacific Corp.		90,421		6,285,164
Regional Banks–0.54%
PNC Financial Services Group, Inc.		56,486		3,191,459
Restaurants–0.62%
Krispy Kreme Doughnuts Inc.–Wts., expiring 03/02/12(e)		1,194		95
McDonald’s Corp.		55,133		3,631,611
				3,631,706
Semiconductor Equipment–0.49%
ASML Holding N.V. (Netherlands)		106,068		2,913,377
Semiconductors–2.16%
Intel Corp.		329,102		6,401,034
NVIDIA Corp.(b)		177,447		1,811,734
PMC-Sierra, Inc.(b)		278,322		2,092,981
Xilinx, Inc.		97,214		2,455,626
				12,761,375
Soft Drinks–1.89%
PepsiCo, Inc.		183,140		11,162,383
Specialized Consumer Services–0.29%
Coinstar, Inc.(b)		40,429		1,737,234
Specialized Finance–1.52%
CBOE Holdings Inc.(b)(c)		26,905		875,758
CME Group Inc.		13,463		3,790,507
IntercontinentalExchange Inc.(b)		38,231		4,321,250
				8,987,515
Specialty Stores–0.34%
Dick’s Sporting Goods, Inc.(b)		81,274		2,022,910
Systems Software–4.70%
Check Point Software Technologies Ltd. (Israel)(b)		614,824		18,125,011
Microsoft Corp.		417,178		9,599,266
				27,724,277
Trading Companies & Distributors–1.13%
W.W. Grainger, Inc.		66,751		6,638,387
Total Common Stocks & Other Equity Interests (Cost $535,096,885)				565,065,418
Money Market Funds–4.32%
Liquid Assets Portfolio–Institutional Class(f)		12,731,213		12,731,213
Premier Portfolio–Institutional Class(f)		12,731,213		12,731,213
Total Money Market Funds (Cost $25,462,426)				25,462,426
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.18% (Cost $560,559,311)				590,527,844
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.45%
Liquid Assets Portfolio–Institutional Class (Cost $8,577,380)(f)(g)		8,577,380		8,577,380
TOTAL INVESTMENTS–101.63% (Cost $569,136,691)				599,105,224
OTHER ASSETS LESS LIABILITIES–(1.63)%				(9,635,900	)
NET ASSETS–100.00%			$	589,469,324

Investment Abbreviations:

ADR	– American Depositary Receipt
Wts.	– Warrants

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of this security was out on loan at June 30, 2010.
(d)	Each unit represents one common share and one trust share.
(e)	Non-income producing security acquired through a corporate action.
(f)	The money market fund and the Fund are affiliated by having the same investment adviser.
(g)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

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

Invesco V.I. Capital Appreciation Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Information Technology	29.9	%
Health Care	16.4
Consumer Discretionary	15.4
Industrials	12.6
Energy	7.5
Financials	7.0
Consumer Staples	5.0
Materials	1.8
Utilities	0.3
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.

Invesco V.I. Capital Appreciation Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $535,096,885)*	$	565,065,418
Investments in affiliated money market funds, at value and cost		34,039,806
Total investments, at value (Cost $569,136,691)		599,105,224
Foreign currencies, at value (Cost $28,888)		29,141
Receivables for:
Investments sold		599
Fund shares sold		237,496
Dividends		469,285
Investment for trustee deferred compensation and retirement plans		118,442
Other assets		387
Total assets		599,960,574
Liabilities:
Payables for:
Investments purchased		541,014
Fund shares reacquired		564,525
Collateral upon return of securities loaned		8,577,380
Accrued fees to affiliates		502,701
Accrued other operating expenses		37,993
Trustee deferred compensation and retirement plans		267,637
Total liabilities		10,491,250
Net assets applicable to shares outstanding	$	589,469,324
Net assets consist of:
Shares of beneficial interest	$	958,730,198
Undistributed net investment income		4,403,603
Undistributed net realized gain (loss)		(403,633,263	)
Unrealized appreciation		29,968,786
	$	589,469,324
Net Assets:
Series I	$	430,148,530
Series II	$	159,320,794
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		23,154,717
Series II		8,726,557
Series I:
Net asset value per share	$	18.58
Series II:
Net asset value per share	$	18.26

*  At June 30, 2010, securities with an aggregate value of $8,467,081 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends	$	3,543,062
Dividends from affiliated money market funds (includes securities lending income of $5,926)		17,837
Total investment income		3,560,899
Expenses:
Advisory fees		2,092,271
Administrative services fees		867,898
Custodian fees		22,856
Distribution fees — Series II		231,713
Transfer agent fees		36,060
Trustees’ and officers’ fees and benefits		19,195
Other		41,715
Total expenses		3,311,708
Less: Fees waived		(17,783	)
Net expenses		3,293,925
Net investment income		266,974
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $9,647)		26,991,076
Foreign currencies		(119,913	)
		26,871,163
Change in net unrealized appreciation (depreciation) of:
Investment securities		(82,646,693	)
Foreign currencies		253
		(82,646,440	)
Net realized and unrealized gain (loss)		(55,775,277	)
Net increase (decrease) in net assets resulting from operations	$	(55,508,303	)

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

Invesco V.I. Capital Appreciation Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	266,974		$	4,829,676
Net realized gain (loss)		26,871,163			(94,066,494	)
Change in net unrealized appreciation (depreciation)		(82,646,440	)		214,294,752
Net increase (decrease) in net assets resulting from operations		(55,508,303	)		125,057,934
Distributions to shareholders from net investment income:
Series I		—			(2,958,538	)
Series II		—			(485,149	)
Total distributions from net investment income		—			(3,443,687	)
Share transactions–net:
Series I		(42,007,757	)		(68,162,037	)
Series II		(18,601,896	)		(16,738,294	)
Net increase (decrease) in net assets resulting from share transactions		(60,609,653	)		(84,900,331	)
Net increase (decrease) in net assets		(116,117,956	)		36,713,916
Net assets:
Beginning of period		705,587,280			668,873,364
End of period (includes undistributed net investment income of $4,403,603 and $4,136,629, respectively)	$	589,469,324		$	705,587,280

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Capital Appreciation Fund, formerly AIM V.I. Capital Appreciation Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. Capital Appreciation Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Capital Appreciation Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.65%
Over $250 million		0	.60%

Invesco V.I. Capital Appreciation Fund

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $17,783.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $82,787 for accounting and fund administrative services and reimbursed $785,111 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Invesco V.I. Capital Appreciation Fund

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	583,991,593	$	15,113,631	$	—	$	599,105,224

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $932,281 and securities sales of $1,381,045, which resulted in net realized gains of $9,647.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $2,117 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	140,535,268
December 31, 2011		56,312,951
December 31, 2017		228,377,814
Total capital loss carryforward	$	425,226,033

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

Invesco V.I. Capital Appreciation Fund

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 June 30, 2010 was $204,687,970 and $268,061,888, 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	$	61,229,145
Aggregate unrealized (depreciation) of investment securities		(36,539,005	)
Net unrealized appreciation of investment securities	$	24,690,140
Cost of investments for tax purposes is $574,415,084.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		319,502		$	6,571,117			1,264,061		$	22,171,261
Series II		291,328			5,846,519			874,710			15,048,701
Issued as reinvestment of dividends:
Class A		—			—			149,045			2,958,538
Series II		—			—			24,828			485,149
Reacquired:
Class A		(2,375,890	)		(48,578,874	)		(5,328,522	)		(93,291,836	)
Series II		(1,214,982	)		(24,448,415	)		(1,893,167	)		(32,272,144	)
Net increase (decrease) in share activity		(2,980,042	)	$	(60,609,653	)		(4,909,045	)	$	(84,900,331	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 51% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Capital Appreciation Fund

NOTE 10—Financial Highlights

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

																						Ratio of			Ratio of
						Net gains																expenses			expenses
						(losses) on																to average			to average net			Ratio of net
	Net asset		Net			securities						Dividends										net assets			assets without			investment
	value,		investment			(both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			income			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	20.33	$	0.02	(c)	$	(1.77	)	$	(1.75	)	$	—		$	18.58		(8.61	)%	$	430,149		0.90	%(d)		0.91	%(d)		0.15	%(d)		31	%
Year ended 12/31/09		16.89		0.14	(c)		3.42			3.56			(0.12	)		20.33		21.08			512,540		0.90			0.91			0.79			85
Year ended 12/31/08		29.37		0.09	(c)		(12.57	)		(12.48	)		—			16.89		(42.49	)		492,079		0.91			0.91			0.37			103
Year ended 12/31/07		26.22		0.01			3.14			3.15			—			29.37		12.01			1,086,677		0.88			0.88			0.03			71
Year ended 12/31/06		24.67		0.01			1.55			1.56			(0.01	)		26.22		6.34			1,204,559		0.91			0.91			0.06			120
Year ended 12/31/05		22.69		0.03			1.97			2.00			(0.02	)		24.67		8.79			822,899		0.89			0.89			0.11			97
Series II
Six months ended 06/30/10		20.00		(0.01	)(c)		(1.73	)		(1.74	)		—			18.26		(8.70	)		159,321		1.15	(d)		1.16	(d)		(0.10	)(d)		31
Year ended 12/31/09		16.61		0.09	(c)		3.35			3.44			(0.05	)		20.00		20.72			193,047		1.15			1.16			0.54			85
Year ended 12/31/08		28.95		0.03	(c)		(12.37	)		(12.34	)		—			16.61		(42.63	)		176,794		1.16			1.16			0.12			103
Year ended 12/31/07		25.91		(0.07	)		3.11			3.04			—			28.95		11.73			349,294		1.13			1.13			(0.22	)		71
Year ended 12/31/06		24.43		(0.05	)		1.53			1.48			—			25.91		6.06			371,316		1.16			1.16			(0.19	)		120
Year ended 12/31/05		22.50		(0.03	)		1.96			1.93			—			24.43		8.58			339,190		1.14			1.14			(0.14	)		97

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $495,464 and $186,907 for Series I and Series II shares, respectively.

Invesco V.I. Capital Appreciation Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	913.90	$	4.27	$	1,020.33	$	4.51		0.90	%
Series II		1,000.00		913.00		5.45		1,019.09		5.76		1.15

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Capital Appreciation Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in

Invesco V.I. Capital Appreciation Fund

considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds - Large-Cap Growth Index and the Lipper VA Underlying Funds — Multi-Cap Growth Index. The Board noted that the performance of Series I shares of the Fund was in the fifth quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of both Indexes for the one, three and five year periods. The Board noted that Invesco Advisers made changes to the Fund’s portfolio management team in 2008, and that the team has a conservative, quality bias that underperformed during the low-quality rally in 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was at the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was below the effective fee rate for one mutual fund and the same as the effective fee rate for the other mutual fund. The Board also compared the Fund’s effective fee rate to the effective sub-advisory fee rate of three mutual funds sub-advised by Invesco Advisers and noted that the Fund’s rate was above the effective sub-advisory rates for the mutual funds.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Capital Appreciation Fund

          Invesco V.I. Capital Development Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VICDV-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-6.38	%
Series II Shares	-6.55
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell Midcap Growth Index▼ (Style-Specific Index)	-3.31
Lipper VUF Mid-Cap Growth Funds Index▼ (Peer Group Index)	-2.34

^▼ Lipper Inc.

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

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

     The Lipper VUF Mid-Cap Growth Funds Index is an unmanaged index considered representative of mid-cap growth variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (5/1/98)	3.24	%
10 Years	1.00
5 Years	-0.16
1 Year	18.50
Series II Shares
10 Years	0.75	%
5 Years	-0.42
1 Year	18.18

Series II shares incepted on August 21, 2001. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.11% and 1.36%, respectively.^1,2 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.12% and 1.37%, 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.

     Invesco V.I. Capital Development Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1	Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2011. See current prospectus for more information.
2	Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2011. See current prospectus for more information.

Invesco V.I. Capital Development Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–94.22%
Aerospace & Defense–1.42%
Goodrich Corp.		33,092	$	2,192,345
Air Freight & Logistics–0.97%
C.H. Robinson Worldwide, Inc.		26,971		1,501,206
Apparel Retail–0.88%
American Eagle Outfitters, Inc.		114,972		1,350,921
Apparel, Accessories & Luxury Goods–3.68%
Carter’s, Inc.(b)		69,169		1,815,686
Coach, Inc.		48,206		1,761,930
Hanesbrands, Inc.(b)		86,686		2,085,665
				5,663,281
Application Software–2.12%
Autodesk, Inc.(b)		61,236		1,491,709
TIBCO Software Inc.(b)		147,251		1,775,847
				3,267,556
Asset Management & Custody Banks–1.38%
Affiliated Managers Group, Inc.(b)		34,901		2,120,934
Auto Parts & Equipment–1.20%
BorgWarner, Inc.(b)		49,513		1,848,815
Biotechnology–2.50%
Genzyme Corp.(b)		34,096		1,731,054
Human Genome Sciences, Inc.(b)		33,205		752,425
United Therapeutics Corp.(b)		27,993		1,366,339
				3,849,818
Casinos & Gaming–2.75%
International Game Technology		94,681		1,486,492
Las Vegas Sands Corp.(b)		69,844		1,546,346
MGM Resorts International(b)		124,675		1,201,867
				4,234,705
Coal & Consumable Fuels–0.86%
Alpha Natural Resources, Inc.(b)		38,951		1,319,270
Communications Equipment–1.12%
Finisar Corp.(b)		115,985		1,728,176
Lantronix Inc.–Wts., expiring 02/09/11(c)		576		0
				1,728,176
Computer Hardware–1.04%
Teradata Corp.(b)		52,718		1,606,845
	Shares
Computer Storage & Peripherals–2.18%
NetApp, Inc.(b)		41,462		1,546,947
QLogic Corp.(b)		108,774		1,807,824
				3,354,771
Construction & Engineering–0.96%
Foster Wheeler AG (Switzerland)(b)		70,431		1,483,277
Construction, Farm Machinery & Heavy Trucks–0.71%
Bucyrus International, Inc.		22,951		1,089,025
Consumer Finance–1.37%
Discover Financial Services		151,467		2,117,509
Data Processing & Outsourced Services–1.57%
Alliance Data Systems Corp.(b)		40,586		2,415,679
Department Stores–3.24%
J.C. Penney Co., Inc.		60,040		1,289,659
Macy’s, Inc.		115,315		2,064,138
Nordstrom, Inc.		50,904		1,638,600
				4,992,397
Distributors–0.72%
LKQ Corp.(b)		57,822		1,114,808
Diversified Support Services–1.06%
Copart, Inc.(b)		45,473		1,628,388
Education Services–2.29%
Capella Education Co.(b)		24,927		2,027,811
ITT Educational Services, Inc.(b)		17,975		1,492,285
				3,520,096
Electrical Components & Equipment–1.99%
Cooper Industries PLC (Ireland)		34,868		1,534,192
Regal-Beloit Corp.		27,563		1,537,464
				3,071,656
Electronic Components–1.02%
Amphenol Corp.–Class A		39,914		1,567,822
Electronic Manufacturing Services–0.52%
Jabil Circuit, Inc.		60,093		799,237
Environmental & Facilities Services–1.34%
Republic Services, Inc.		69,336		2,061,359
Health Care Equipment–3.96%
American Medical Systems Holdings, Inc.(b)		70,504		1,559,548
CareFusion Corp.(b)		66,308		1,505,192

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

Invesco V.I. Capital Development Fund

	Shares		Value
Health Care Equipment–(continued)
Hologic, Inc.(b)		125,086	$	1,742,448
NuVasive, Inc.(b)		36,297		1,287,092
				6,094,280
Health Care Facilities–1.50%
Brookdale Senior Living Inc.(b)		45,377		680,655
VCA Antech, Inc.(b)		66,016		1,634,556
				2,315,211
Health Care Services–2.06%
Express Scripts, Inc.(b)		42,488		1,997,786
Fresenius Medical Care AG & Co. KGaA–ADR (Germany)		22,007		1,181,556
				3,179,342
Hotels, Resorts & Cruise Lines–2.40%
Ctrip.com International, Ltd.–ADR (China)(b)		43,756		1,643,475
Marriott International, Inc.–Class A		68,755		2,058,525
				3,702,000
Household Products–1.94%
Church & Dwight Co., Inc.		25,788		1,617,166
Energizer Holdings, Inc.(b)		27,133		1,364,247
				2,981,413
Human Resource & Employment Services–1.05%
Robert Half International, Inc.		68,799		1,620,216
Independent Power Producers & Energy Traders–0.72%
KGEN Power Corp. (Acquired 01/12/07; Cost $2,219,196)(b)(d)		158,514		1,109,598
Industrial Machinery–2.03%
Flowserve Corp.		17,795		1,509,016
Kennametal Inc.		63,330		1,610,482
				3,119,498
Internet Software & Services–2.08%
Akamai Technologies, Inc.(b)		41,585		1,687,103
Baidu, Inc.–ADR (China)(b)		22,283		1,517,027
				3,204,130
IT Consulting & Other Services–1.17%
Cognizant Technology Solutions Corp.–Class A(b)		35,965		1,800,408
Life & Health Insurance–1.25%
Lincoln National Corp.		79,025		1,919,517
Life Sciences Tools & Services–2.32%
Life Technologies Corp.(b)		33,692		1,591,947
Pharmaceutical Product Development, Inc.		77,718		1,974,814
				3,566,761
Managed Health Care–1.56%
Aetna, Inc.		56,956		1,502,500
Aveta, Inc. (Acquired 12/21/05-02/21/06; Cost $2,162,718)(b)(d)		157,251		904,193
				2,406,693
Metal & Glass Containers–1.07%
Owens-Illinois, Inc.(b)		62,249		1,646,486
Multi-Line Insurance–1.42%
Genworth Financial Inc.–Class A(b)		167,326		2,186,951
Oil & Gas Equipment & Services–2.53%
Baker Hughes Inc.		45,794		1,903,657
Key Energy Services, Inc.(b)		217,389		1,995,631
				3,899,288
Oil & Gas Exploration & Production–4.28%
Cabot Oil & Gas Corp.		42,921		1,344,286
Concho Resources Inc.(b)		37,153		2,055,676
Continental Resources, Inc.(b)		49,841		2,223,905
Oasis Petroleum Inc.(b)		66,642		966,309
				6,590,176
Packaged Foods & Meats–1.13%
Hershey Co. (The)		36,479		1,748,438
Personal Products–1.00%
Estee Lauder Cos. Inc. (The)–Class A		27,568		1,536,365
Pharmaceuticals–1.10%
Shire PLC–ADR (United Kingdom)		27,721		1,701,515
Property & Casualty Insurance–0.45%
Assured Guaranty Ltd.		52,607		698,095
Real Estate Services–1.44%
CB Richard Ellis Group, Inc.–Class A(b)		163,432		2,224,309
Research & Consulting Services–1.23%
IHS Inc.–Class A(b)		32,507		1,899,059
Restaurants–1.27%
Darden Restaurants, Inc.		50,371		1,956,913
Security & Alarm Services–0.93%
Corrections Corp. of America(b)		75,092		1,432,755
Semiconductors–4.21%
Altera Corp.		37,149		921,667
Avago Technologies Ltd. (Singapore)(b)		81,245		1,711,020
Broadcom Corp.–Class A		45,491		1,499,838
Cavium Networks, Inc.(b)		31,684		829,804

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

Invesco V.I. Capital Development Fund

	Shares		Value
Semiconductors–(continued)
Marvell Technology Group Ltd.(b)		34,607	$	545,406
Xilinx, Inc.		38,604		975,137
				6,482,872
Specialty Chemicals–1.24%
Albemarle Corp.		48,002		1,906,159
Specialty Stores–0.80%
Ulta Salon, Cosmetics & Fragrance, Inc.(b)		52,184		1,234,673
Systems Software–2.14%
Check Point Software Technologies Ltd. (Israel)(b)		53,786		1,585,611
Rovi Corp.(b)		45,214		1,714,063
				3,299,674
Trading Companies & Distributors–2.46%
MSC Industrial Direct Co., Inc.–Class A		37,957		1,922,902
W.W. Grainger, Inc.		18,738		1,863,494
				3,786,396
Trucking–1.19%
J.B. Hunt Transport Services, Inc.		56,071		1,831,840
Wireless Telecommunication Services–1.40%
American Tower Corp.–Class A(b)		48,518		2,159,051
Total Common Stocks & Other Equity Interests (Cost $130,924,588)				145,139,978
Money Market Funds–5.09%
Liquid Assets Portfolio–Institutional Class(e)		3,920,753		3,920,753
Premier Portfolio–Institutional Class(e)		3,920,753		3,920,753
Total Money Market Funds (Cost $7,841,506)				7,841,506
TOTAL INVESTMENTS–99.31% (Cost $138,766,094)				152,981,484
OTHER ASSETS LESS LIABILITIES–0.69%				1,055,936
NET ASSETS–100.00%			$	154,037,420

Investment Abbreviations:

ADR	– American Depositary Receipt
Wts.	– Warrants

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Non-income producing security acquired through a corporate action.
(d)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $2,013,791, which represented 1.31% of the Fund’s Net Assets.
(e)	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 June 30, 2010

Consumer Discretionary	19.2	%
Information Technology	19.2
Industrials	17.3
Health Care	15.0
Energy	7.7
Financials	7.3
Consumer Staples	4.1
Materials	2.3
Telecommunication Services	1.4
Utilities	0.7
Money Market Funds Plus Other Assets Less Liabilities	5.8

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

Invesco V.I. Capital Development Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $130,924,588)	$	145,139,978
Investments in affiliated money market funds, at value and cost		7,841,506
Total investments, at value (Cost $138,766,094)		152,981,484
Receivables for:
Investments sold		852,541
Investments sold to affiliates		473,289
Fund shares sold		40,550
Dividends		92,313
Investment for trustee deferred compensation and retirement plans		26,763
Other assets		2,253
Total assets		154,469,193
Liabilities:
Payables for:
Fund shares reacquired		191,588
Accrued fees to affiliates		165,803
Accrued other operating expenses		26,209
Trustee deferred compensation and retirement plans		48,173
Total liabilities		431,773
Net assets applicable to shares outstanding	$	154,037,420
Net assets consist of:
Shares of beneficial interest	$	201,877,164
Undistributed net investment income (loss)		(296,246	)
Undistributed net realized gain (loss)		(61,758,888	)
Unrealized appreciation		14,215,390
	$	154,037,420
Net Assets:
Series I	$	71,551,852
Series II	$	82,485,568
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		6,769,813
Series II		8,029,313
Series I:
Net asset value per share	$	10.57
Series II:
Net asset value per share	$	10.27

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $7,720)	$	789,645
Dividends from affiliated money market funds (includes securities lending income of $6,264)		10,221
Total investment income		799,866
Expenses:
Advisory fees		652,664
Administrative services fees		237,823
Custodian fees		4,720
Distribution fees — Series II		116,352
Transfer agent fees		10,894
Trustees’ and officers’ fees and benefits		11,426
Other		22,431
Total expenses		1,056,310
Less: Fees waived		(9,565	)
Net expenses		1,046,745
Net investment income (loss)		(246,879	)
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities (includes net gains from securities sold to affiliates of $94,311)		14,808,768
Foreign currencies		4,939
		14,813,707
Change in net unrealized appreciation (depreciation) of investment securities		(25,276,715	)
Net realized and unrealized gain (loss)		(10,463,008	)
Net increase (decrease) in net assets resulting from operations	$	(10,709,887	)

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

Invesco V.I. Capital Development Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income (loss)	$	(246,879	)	$	(859,030	)
Net realized gain (loss)		14,813,707			(13,261,728	)
Change in net unrealized appreciation (depreciation)		(25,276,715	)		69,400,458
Net increase (decrease) in net assets resulting from operations		(10,709,887	)		55,279,700
Share transactions–net:
Series I		(5,374,935	)		(5,484,404	)
Series II		(5,984,481	)		(16,147,547	)
Net increase (decrease) in net assets resulting from share transactions		(11,359,416	)		(21,631,951	)
Net increase (decrease) in net assets		(22,069,303	)		33,647,749
Net assets:
Beginning of period		176,106,723			142,458,974
End of period (includes undistributed net investment income (loss) of $(296,246) and $(49,367), respectively)	$	154,037,420		$	176,106,723

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Capital Development Fund, formerly AIM V.I. Capital Development Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity

Invesco V.I. Capital Development Fund

	are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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

Invesco V.I. Capital Development Fund

	results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $350 million		0	.75%
Over $350 million		0	.625%

Invesco V.I. Capital Development Fund

  Through at least April 30, 2011, the Adviser has contractually agreed to waive advisory fees to the extent necessary so that the advisory fees payable by the Fund (based on the Fund’s average daily net assets) do not exceed the annual rate of:

Average Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.73%
Next $500 million		0	.715%
Next $1.5 billion		0	.70%
Next $2.5 billion		0	.685%
Next $2.5 billion		0	.67%
Next $2.5 billion		0	.655%
Over $10 billion		0	.64%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $9,565.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $213,028 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation

Invesco V.I. Capital Development Fund

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 June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	150,967,693	$	—	$	2,013,791	$	152,981,484

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $7,838,966 and securities sales of $3,024,129, which resulted in net realized gains of $94,311.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,484 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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.

Invesco V.I. Capital Development Fund

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	49,840,811
December 31, 2017		26,458,756
Total capital loss carryforward	$	76,299,567

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $66,704,993 and $82,227,297, 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	$	23,605,512
Aggregate unrealized (depreciation) of investment securities		(9,663,151	)
Net unrealized appreciation of investment securities	$	13,942,361
Cost of investments for tax purposes is $139,039,123.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		572,506		$	6,700,129			2,458,503		$	21,351,970
Series II		482,098			5,515,092			1,455,369			12,521,899
Reacquired:
Series I		(1,051,895	)		(12,075,064	)		(3,021,088	)		(26,836,374	)
Series II		(1,027,631	)		(11,499,573	)		(3,276,615	)		(28,669,446	)
Net increase (decrease) in share activity		(1,024,922	)	$	(11,359,416	)		(2,383,831	)	$	(21,631,951	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 60% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Capital Development Fund

NOTE 10—Financial Highlights

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

																						Ratio of			Ratio of
																						expenses			expenses
						Net gains																to average			to average net			Ratio of net
	Net asset		Net			(losses) on						Distributions										net assets			assets without			investment
	value,		investment			securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			realized			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			gains			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	11.29	$	(0.01	)(c)	$	(0.71	)	$	(0.72	)	$	—		$	10.57		(6.38	)%	$	71,552		1.07	%(d)		1.08	%(d)		(0.15	)%(d)		40	%
Year ended 12/31/09		7.93		(0.04	)(c)		3.40			3.36			—			11.29		42.37			81,866		1.10			1.11			(0.41	)		102
Year ended 12/31/08		18.85		(0.05	)(c)		(8.88	)		(8.93	)		(1.99	)		7.93		(47.03	)		61,986		1.10			1.11			(0.38	)		99
Year ended 12/31/07		18.43		(0.10	)(c)		2.14			2.04			(1.62	)		18.85		10.84			149,776		1.05			1.06			(0.47	)		109
Year ended 12/31/06		16.09		(0.07	)		2.73			2.66			(0.32	)		18.43		16.52			148,668		1.08			1.09			(0.48	)		119
Year ended 12/31/05		14.68		(0.04	)		1.45			1.41			—			16.09		9.61			117,674		1.09			1.09			(0.22	)		125
Series II
Six months ended 06/30/10		10.99		(0.02	)(c)		(0.70	)		(0.72	)		—			10.27		(6.55	)		82,486		1.32	(d)		1.33	(d)		(0.40	)(d)		40
Year ended 12/31/09		7.74		(0.06	)(c)		3.31			3.25			—			10.99		41.99			94,241		1.35			1.36			(0.66	)		102
Year ended 12/31/08		18.53		(0.09	)(c)		(8.71	)		(8.80	)		(1.99	)		7.74		(47.13	)		80,473		1.35			1.36			(0.63	)		99
Year ended 12/31/07		18.19		(0.15	)(c)		2.11			1.96			(1.62	)		18.53		10.55			190,815		1.30			1.31			(0.72	)		109
Year ended 12/31/06		15.92		(0.10	)		2.69			2.59			(0.32	)		18.19		16.26			128,990		1.33			1.34			(0.73	)		119
Year ended 12/31/05		14.57		(0.07	)		1.42			1.35			—			15.92		9.27			83,388		1.34			1.34			(0.47	)		125

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $81,633 and $93,853 for Series I and Series II shares, respectively.

Invesco V.I. Capital Development Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	936.20	$	5.14	$	1,019.49	$	5.36		1.07	%
Series II		1,000.00		934.50		6.33		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 January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Capital Development Fund

Approval of Investment Advisory and Sub-advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Mid-Cap

Invesco V.I. Capital Development Fund

Growth Index. The Board noted that the performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period, the fifth quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. In response to an inquiry from the Board, Invesco Advisers indicated that much of the underperformance was concentrated in the second half of 2007 as a result of financial sector stock selection. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was at the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board noted that Invesco Advisers contractually agreed to waive advisory fees of the Fund through at least April 30, 2011, and that this fee waiver includes breakpoints based on net asset levels. The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, the expense waiver is not having any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Capital Development Fund

          Invesco V.I. Core Equity Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VICEQ-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	–7.18	%
Series II Shares	–7.31
S&P 500 Index▼ (Broad Market Index)	–6.64
Russell 1000 Index▼ (Style-Specific Index)	–6.40
Lipper VUF Large-Cap Core Funds Index▼ (Peer Group Index)	–7.62

^▼ Lipper Inc.

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

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

     The Lipper VUF Large-Cap Core Funds Index is an unmanaged index considered representative of large-cap core variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares

Inception (5/2/94)	6.78	%
10 Years	–1.90
5 Years	2.22
1 Year	12.26

Series II Shares

10 Years	–2.15	%
5 Years	1.97
1 Year	12.00

Series II shares incepted on October 24, 2001. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.92% and 1.17%, 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.

     Invesco V.I. Core Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available by calling 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. Core Equity Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–84.94%(a)
Aerospace & Defense–3.94%
ITT Corp.		223,761	$	10,051,344
Lockheed Martin Corp.		173,815		12,949,217
Northrop Grumman Corp.		384,234		20,917,699
United Technologies Corp.		91,102		5,913,431
				49,831,691
Agricultural Products–0.29%
Archer-Daniels-Midland Co.		144,655		3,734,992
Air Freight & Logistics–0.76%
United Parcel Service, Inc.–Class B		169,483		9,641,888
Application Software–0.62%
Adobe Systems, Inc.(b)		297,097		7,852,274
Asset Management & Custody Banks–2.77%
Legg Mason, Inc.		760,314		21,311,601
Northern Trust Corp.		295,000		13,776,500
				35,088,101
Biotechnology–2.44%
Genzyme Corp.(b)		156,893		7,965,458
Gilead Sciences, Inc.(b)		670,000		22,967,600
				30,933,058
Cable & Satellite–1.56%
Comcast Corp.–Class A		1,136,959		19,748,978
Communications Equipment–5.92%
Cisco Systems, Inc.(b)		484,648		10,327,849
Motorola, Inc.(b)		2,983,934		19,455,250
Nokia Corp.–ADR (Finland)		2,475,000		20,171,250
QUALCOMM, Inc.		760,037		24,959,615
				74,913,964
Computer Storage & Peripherals–1.01%
EMC Corp.(b)		695,342		12,724,759
Consumer Finance–2.81%
American Express Co.		894,595		35,515,421
Data Processing & Outsourced Services–0.90%
Automatic Data Processing, Inc.		281,587		11,336,693
Diversified Banks–0.66%
U.S. Bancorp		374,728		8,375,171
Drug Retail–3.63%
CVS Caremark Corp.		1,048,606		30,745,128
Walgreen Co.		567,063		15,140,582
				45,885,710
Education Services–0.57%
Apollo Group, Inc.–Class A(b)		168,865		7,171,697
Electric Utilities–0.62%
Edison International		135,000		4,282,200
Exelon Corp.		94,000		3,569,180
				7,851,380
Electronic Equipment Manufacturers–1.06%
Agilent Technologies, Inc.(b)		471,727		13,411,199
Electronic Manufacturing Services–1.51%
Tyco Electronics Ltd. (Switzerland)		751,015		19,060,761
Environmental & Facilities Services–1.21%
Waste Management, Inc.		487,966		15,268,456
Food Retail–2.42%
Kroger Co. (The)		1,557,128		30,659,850
Health Care Equipment–4.03%
Baxter International, Inc.		315,000		12,801,600
Boston Scientific Corp.(b)		4,947,615		28,696,167
Covidien PLC (Ireland)		134,174		5,391,111
Medtronic, Inc.		114,458		4,151,392
				51,040,270
Home Improvement Retail–1.76%
Lowe’s Cos., Inc.		1,093,571		22,330,720
Hypermarkets & Super Centers–2.13%
Wal-Mart Stores, Inc.		561,026		26,968,520
Industrial Conglomerates–4.06%
3M Co.		295,723		23,359,159
Koninklijke (Royal) Philips Electronics N.V. (Netherlands)		137,868		4,110,323
Tyco International Ltd.		679,095		23,924,517
				51,393,999
Industrial Gases–1.60%
Air Products & Chemicals, Inc.		312,815		20,273,540

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

Invesco V.I. Core Equity Fund

	Shares		Value
Industrial Machinery–1.45%
Danaher Corp.		253,426	$	9,407,173
Illinois Tool Works, Inc.		216,147		8,922,548
				18,329,721
Insurance Brokers–0.94%
Marsh & McLennan Cos., Inc.		529,649		11,943,585
Integrated Oil & Gas–0.43%
Exxon Mobil Corp.		94,817		5,411,218
Life Sciences Tools & Services–1.99%
Thermo Fisher Scientific, Inc.(b)		514,522		25,237,304
Managed Health Care–1.57%
WellPoint, Inc.(b)		406,398		19,885,054
Oil & Gas Equipment & Services–3.06%
Baker Hughes Inc.		675,000		28,059,750
Schlumberger Ltd.		193,772		10,723,342
				38,783,092
Oil & Gas Exploration & Production–1.93%
Apache Corp.		176,332		14,845,391
EOG Resources, Inc.		97,142		9,555,859
				24,401,250
Oil & Gas Refining & Marketing–1.25%
Valero Energy Corp.		878,097		15,788,184
Oil & Gas Storage & Transportation–1.51%
Williams Cos., Inc. (The)		1,043,698		19,078,799
Packaged Foods & Meats–0.50%
Kraft Foods Inc.–Class A		224,793		6,294,204
Pharmaceuticals–5.91%
Allergan, Inc.		160,708		9,362,848
Johnson & Johnson		178,835		10,561,995
Pfizer, Inc.		1,188,808		16,952,402
Roche Holding AG (Switzerland)		173,732		23,854,186
Teva Pharmaceutical Industries Ltd.–ADR (Israel)		271,370		14,108,526
				74,839,957
Property & Casualty Insurance–5.75%
Berkshire Hathaway Inc.–Class A(b)		272		32,640,000
Progressive Corp. (The)		2,145,916		40,171,548
				72,811,548
Railroads–1.35%
Union Pacific Corp.		246,639		17,143,877
Semiconductors–2.29%
Intel Corp.		864,721		16,818,823
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)		6,485,823		12,127,280
				28,946,103
Systems Software–4.77%
Microsoft Corp.		1,165,405		26,815,969
Symantec Corp.(b)		2,419,219		33,578,760
				60,394,729
Wireless Telecommunication Services–1.96%
Vodafone Group PLC (United Kingdom)		11,954,877		24,768,172
Total Common Stocks & Other Equity Interests (Cost $1,132,772,023)				1,075,069,889
Money Market Funds–16.55%
Liquid Assets Portfolio–Institutional Class(c)		104,764,539		104,764,539
Premier Portfolio–Institutional Class(c)		104,764,539		104,764,539
Total Money Market Funds (Cost $209,529,078)				209,529,078
TOTAL INVESTMENTS–101.49% (Cost $1,342,301,101)				1,284,598,967
OTHER ASSETS LESS LIABILITIES–(1.49)%				(18,882,746	)
NET ASSETS–100.00%			$	1,265,716,221

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	The money market fund and the Fund are affiliated by having the same investment adviser.

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

Invesco V.I. Core Equity Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Information Technology	18.1	%
Health Care	15.9
Financials	12.9
Industrials	12.8
Consumer Staples	9.0
Energy	8.2
Consumer Discretionary	3.9
Telecommunication Services	1.9
Materials	1.6
Utilities	0.6
Money Market Funds Plus Other Assets Less Liabilities	15.1

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

Invesco V.I. Core Equity Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $1,132,772,023)	$	1,075,069,889
Investments in affiliated money market funds, at value and cost		209,529,078
Total investments, at value (Cost $1,342,301,101)		1,284,598,967
Foreign currencies, at value (Cost $1,937)		1,894
Receivables for:
Fund shares sold		355,195
Dividends		2,169,942
Investment for trustee deferred compensation and retirement plans		118,010
Other assets		1,940
Total assets		1,287,245,948
Liabilities:
Payables for:
Investments purchased		6,049,537
Fund shares reacquired		13,942,154
Foreign currency contracts outstanding		213,998
Accrued fees to affiliates		865,289
Accrued other operating expenses		62,524
Trustee deferred compensation and retirement plans		396,225
Total liabilities		21,529,727
Net assets applicable to shares outstanding	$	1,265,716,221
Net assets consist of:
Shares of beneficial interest	$	1,628,363,612
Undistributed net investment income		18,947,958
Undistributed net realized gain (loss)		(323,697,422	)
Unrealized appreciation (depreciation)		(57,897,927	)
	$	1,265,716,221
Net Assets:
Series I	$	1,233,663,093
Series II	$	32,053,128
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		53,328,749
Series II		1,396,985
Series I:
Net asset value per share	$	23.13
Series II:
Net asset value per share	$	22.94

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $394,837)	$	12,220,237
Dividends from affiliated money market funds (includes securities lending income of $85,961)		200,336
Total investment income		12,420,573
Expenses:
Advisory fees		4,370,693
Administrative services fees		1,878,378
Custodian fees		33,057
Distribution fees — Series II		43,790
Transfer agent fees		22,947
Trustees’ and officers’ fees and benefits		31,078
Other		34,211
Total expenses		6,414,154
Less: Fees waived		(167,008	)
Net expenses		6,247,146
Net investment income		6,173,427
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(2,573,609))		50,319,173
Foreign currencies		(476,450	)
Foreign currency contracts		2,293,315
		52,136,038
Change in net unrealized appreciation (depreciation) of:
Investment securities		(154,706,174	)
Foreign currencies		(37,419	)
Foreign currency contracts		(893,269	)
		(155,636,862	)
Net realized and unrealized gain (loss)		(103,500,824	)
Net increase (decrease) in net assets resulting from operations	$	(97,327,397	)

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

Invesco V.I. Core Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	6,173,427		$	12,984,133
Net realized gain (loss)		52,136,038			(118,861,783	)
Change in net unrealized appreciation (depreciation)		(155,636,862	)		445,880,351
Net increase (decrease) in net assets resulting from operations		(97,327,397	)		340,002,701
Distributions to shareholders from net investment income:
Series I		—			(23,923,292	)
Series II		—			(459,176	)
Total distributions from net investment income		—			(24,382,468	)
Share transactions–net:
Series I		(128,418,177	)		(182,712,672	)
Series II		364,126			4,143,838
Net increase (decrease) in net assets resulting from share transactions		(128,054,051	)		(178,568,834	)
Net increase (decrease) in net assets		(225,381,448	)		137,051,399
Net assets:
Beginning of period		1,491,097,669			1,354,046,270
End of period (includes undistributed net investment income of $18,947,958 and $12,774,531, respectively)	$	1,265,716,221		$	1,491,097,669

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Core Equity Fund, formerly AIM V.I. Core Equity Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. Core Equity Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Core Equity Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.65%
Over $250 million		0	.60%

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

Invesco V.I. Core Equity Fund

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% 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 items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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. 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 during the period under this expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $167,008.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $170,126 for accounting and fund administrative services and reimbursed $1,708,252 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Invesco V.I. Core Equity Fund

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	1,219,739,007		$	64,859,960	$	—	$	1,284,598,967
Foreign Currency Contracts*		(213,998	)		—		—		(213,998	)
Total Investments	$	1,219,525,009		$	64,859,960	$	—	$	1,284,384,969

*  Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Currency risk
Foreign Currency Contracts(a)	$	—	$	(213,998	)

^(a) Values are disclosed on the Statement of Assets and Liabilities under Foreign currency contracts outstanding.

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain on
	Statement of Operations
	Foreign Currency
	Contracts*
Realized Gain
Currency risk	$	2,293,315
Change in Unrealized Appreciation (Depreciation)
Currency risk		(893,269	)
Total	$	1,400,046

*  The average value of foreign currency contracts during the period was $13,026,834.

Open Foreign Currency Contracts
							Unrealized
Settlement	Contract to						Appreciation
Date	Deliver		Receive		Value		(Depreciation)
09/03/10	GBP	8,021,700	USD	11,767,994	$	11,981,992	$	(213,998	)

Currency Abbreviations:
GBP	– British Pound Sterling
USD	– U.S. Dollar

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $8,514,122 and securities sales of $33,752,163, which resulted in net realized gains (losses) of $(2,573,609).

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

Invesco V.I. Core Equity Fund

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $3,028 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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. Under these limitation rules, the Fund is limited to utilizing $367,472,040 of capital loss carryforward in the fiscal year ending December 31, 2010.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	157,184,467
December 31, 2011		21,217,854
December 31, 2017		189,069,719
Total capital loss carryforward	$	367,472,040

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. To the extent that unrealized gains as of May 1, 2006, the date of the reorganization of AIM V.I. Core Stock Fund and AIM V.I. Premier Equity Fund, into the Fund are realized on securities held in each Fund at such date, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $369,647,561 and $471,053,500, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	99,770,477
Aggregate unrealized (depreciation) of investment securities		(165,154,759	)
Net unrealized appreciation (depreciation) of investment securities	$	(65,384,282	)
Cost of investments for tax purposes is $1,349,983,249.

Invesco V.I. Core Equity Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		844,036		$	21,322,042			3,599,291		$	75,638,826
Series II		234,676			5,908,039			497,105			10,793,298
Issued as reinvestment of dividends:
Series I		—			—			975,664			23,923,292
Series II		—			—			18,850			459,176
Reacquired:
Series I		(5,981,113	)		(149,740,219	)		(13,469,940	)		(282,274,790	)
Series II		(222,826	)		(5,543,913	)		(348,530	)		(7,108,636	)
Net increase (decrease) in share activity		(5,125,227	)	$	(128,054,051	)		(8,727,560	)	$	(178,568,834	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 55% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 11—Financial Highlights

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

																					Ratio of			Ratio of
					Net gains																expenses			expenses
					(losses) on																to average			to average net			Ratio of net
	Net asset				securities						Dividends										net assets			assets without			investment
	value,		Net		(both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	24.92	$	0.11	$	(1.90	)	$	(1.79	)	$	—		$	23.13		(7.18	)%	$	1,233,663		0.87	%(d)		0.89	%(d)		0.86	%(d)		30	%
Year ended 12/31/09		19.75		0.19		5.39			5.58			(0.41	)		24.92		28.30			1,456,822		0.88			0.90			0.96			21
Year ended 12/31/08		29.11		0.33		(9.11	)		(8.78	)		(0.58	)		19.75		(30.14	)		1,330,161		0.89			0.90			1.26			36
Year ended 12/31/07		27.22		0.42		1.80			2.22			(0.33	)		29.11		8.12			2,298,007		0.87			0.88			1.44			45
Year ended 12/31/06		23.45		0.34		3.58			3.92			(0.15	)		27.22		16.70			2,699,252		0.89			0.89			1.35			45
Year ended 12/31/05		22.60		0.24		0.96			1.20			(0.35	)		23.45		5.31			1,246,529		0.89			0.89			1.08			52
Series II
Six months ended 06/30/10		24.75		0.08		(1.89	)		(1.81	)		—			22.94		(7.31	)		32,053		1.12	(d)		1.14	(d)		0.61	(d)		30
Year ended 12/31/09		19.62		0.14		5.34			5.48			(0.35	)		24.75		27.98			34,275		1.13			1.15			0.71			21
Year ended 12/31/08		28.88		0.26		(9.02	)		(8.76	)		(0.50	)		19.62		(30.32	)		23,885		1.14			1.15			1.01			36
Year ended 12/31/07		27.02		0.34		1.80			2.14			(0.28	)		28.88		7.88			34,772		1.12			1.13			1.19			45
Year ended 12/31/06		23.33		0.28		3.55			3.83			(0.14	)		27.02		16.42			39,729		1.14			1.14			1.10			45
Year ended 12/31/05		22.48		0.18		0.96			1.14			(0.29	)		23.33		5.08			3,858		1.14			1.14			0.83			52

(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $1,412,816 and $35,322 for Series I and Series II shares, respectively.

Invesco V.I. Core Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	928.20	$	4.16	$	1,020.48	$	4.36		0.87	%
Series II		1,000.00		926.90		5.35		1,019.24		5.61		1.12

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Core Equity Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Large-Cap Core Index. The Board noted that the performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period and the first quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was at the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised by Invesco Advisers. The Board noted that the Fund’s rate was: (i) below the effective fee rate for one of the mutual funds and (ii) above the effective fee rate for the other mutual fund.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending

Invesco V.I. Core Equity Fund

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

Invesco V.I. Core Equity Fund

          Invesco V.I. Diversified Income Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIDIN-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.44	%
Series II Shares	5.30
Barclays Capital U.S. Aggregate Index▼ (Broad Market Index)	5.33
Barclays Capital U.S. Credit Index▼ (Style-Specific Index)	5.62
Lipper VUF Corporate Debt BBB-Rated Funds Index▼ (Peer Group Index)	5.53

^▼ Lipper Inc.

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

     The Barclays Capital U.S. Credit Index is an unmanaged index considered representative of publicly issued, SEC-registered U.S. corporate and specified foreign debentures and secured notes.

     The Lipper VUF Corporate Debt BBB-Rated Funds Index is an unmanaged index considered representative of corporate debt BBB-rated variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (5/5/93)	3.94	%
10 Years	2.93
5 Years	0.97
1 Year	15.16
Series II Shares
10 Years	2.68	%
5 Years	0.73
1 Year	14.99

Series II shares incepted on March 14, 2002. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.75% and 1.00%, 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 Series I and Series II shares was 1.48% and 1.73%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco V.I. Diversified Income Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     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 April 30, 2011. See current prospectus for more information.

Invesco V.I. Diversified Income Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Principal
	Amount		Value
Bonds & Notes–88.26%
Advertising–0.10%
Lamar Media Corp., Sr. Gtd. Sub. Notes, 7.88%, 04/15/18(b)	$	25,000	$	25,250
Aerospace & Defense–0.22%
BE Aerospace, Inc., Sr. Unsec. Notes, 8.50%, 07/01/18		25,000		26,500
Bombardier Inc. (Canada), Sr. Notes, 7.50%, 03/15/18(b)		10,000		10,325
7.75%, 03/15/20(b)		15,000		15,600
				52,425
Agricultural Products–0.69%
Bunge Limited Finance Corp., Sr. Unsec. Gtd. Notes, 8.50%, 06/15/19		140,000		166,987
Airlines–1.99%
American Airlines Pass Through Trust, Series 2009-1A, Sec. Pass Through Ctfs., 10.38%, 07/02/19		44,690		50,109
Continental Airlines Inc., Series 2009-1, Class A, Pass Through Ctfs., 9.00%, 07/08/16		205,755		224,787
Series 2009-1, Class B, Global Pass Through Ctfs., 9.25%, 05/10/17		15,000		15,684
Delta Air Lines, Inc., Sr. Sec. Notes, 9.50%, 09/15/14(b)		10,000		10,550
Series 2002-1, Class C, Sec. Pass Through Ctfs., 7.78%, 01/02/12		6,025		6,040
Series 2009-1, Class A, Sr. Sec. Pass Through Ctfs., 7.75%, 12/17/19		44,262		47,859
Series 2010-1, Class A, Sec. Pass Through Ctfs., 6.20%, 07/02/18		40,000		40,550
UAL Corp., Series 2009-1, Sr. Sec. Gtd. Global Pass Through Ctfs., 10.40%, 11/01/16		48,726		52,868
Series 2009-2A, Sec. Gtd. Global Pass Through Ctfs., 9.75%, 01/15/17		30,000		32,250
				480,697
Alternative Carriers–0.32%
Intelsat Intermediate Holding Co. S.A. (Bermuda), Sr. Unsec. Gtd. Disc. Global Notes, 9.50%, 02/01/15(c)		35,000		35,875
Level 3 Financing Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 11/01/14		45,000		41,062
				76,937
Aluminum–0.20%
Century Aluminum Co., Sr. Sec. Notes, 8.00%, 05/15/14		25,000		23,625
Novelis Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 7.25%, 02/15/15		25,000		24,375
				48,000
Apparel Retail–0.41%
Collective Brands, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.25%, 08/01/13		44,000		44,550
Limited Brands Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 06/15/19		50,000		54,062
				98,612
Auto Parts & Equipment–0.21%
Allison Transmission Inc., Sr. Unsec. Gtd. Notes, 11.00%, 11/01/15(b)		25,000		26,187
Tenneco Inc., Sr. Unsec. Gtd. Global Notes, 8.13%, 11/15/15		25,000		25,313
				51,500
Automobile Manufacturers–0.09%
Ford Motor Co., Sr. Unsec. Global Notes, 7.45%, 07/16/31		25,000		22,625
Automotive Retail–1.39%
Advance Auto Parts Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20		100,000		101,625
AutoZone Inc., Sr. Unsec. Notes, 5.75%, 01/15/15		210,000		233,142
				334,767

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Brewers–0.39%
Anheuser-Busch InBev Worldwide Inc., Sr. Unsec. Gtd. Global Notes, 4.13%, 01/15/15	$	90,000	$	94,454
Broadcasting–3.18%
Belo Corp., Sr. Unsec. Notes, 6.75%, 05/30/13		15,000		15,263
8.00%, 11/15/16		25,000		25,781
Clear Channel Worldwide Holdings Inc., Sr. Unsec. Gtd. Notes, 9.25%, 12/15/17(b)		25,000		25,219
COX Communications Inc., Sr. Unsec. Bonds, 8.38%, 03/01/39(b)		75,000		98,781
Sr. Unsec. Global Notes, 5.45%, 12/15/14		95,000		104,739
Sr. Unsec. Notes, 9.38%, 01/15/19(b)		140,000		185,322
COX Enterprises Inc., Sr. Unsec. Notes, 7.88%, 09/15/10(b)		120,000		121,350
Discovery Communications LLC, Sr. Unsec. Gtd. Global Notes, 6.35%, 06/01/40		165,000		175,838
LIN Television Corp., Sr. Unsec. Gtd. Notes, 8.38%, 04/15/18(b)		15,000		15,038
				767,331
Building Products–0.47%
Building Materials Corp. of America, Sr. Gtd. Notes, 7.50%, 03/15/20(b)		25,000		24,375
Gibraltar Industries Inc., Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 12/01/15		15,000		14,700
Goodman Global Group Inc., Sr. Disc. Notes, 11.70%, 12/15/14(b)(d)		20,000		12,200
Ply Gem Industries Inc., Sr. Sec. Gtd. First & Second Lien Global Notes, 11.75%, 06/15/13		45,000		47,137
USG Corp., Sr. Unsec. Gtd. Notes, 9.75%, 08/01/14(b)		15,000		15,450
				113,862
Cable & Satellite–2.04%
Cablevision Systems Corp., Sr. Unsec. Notes, 8.63%, 09/15/17(b)		25,000		25,625
DirecTV Holdings LLC/DirecTV Financing Co. Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 05/15/16		350,000		381,500
Sirius XM Radio Inc., Sr. Unsec. Gtd. Notes, 8.75%, 04/01/15(b)		25,000		24,969
Time Warner Cable Inc., Sr. Unsec. Gtd. Notes, 5.00%, 02/01/20		60,000		61,336
				493,430
Casinos & Gaming–0.66%
Great Canadian Gaming Corp. (Canada), Sr. Unsec. Gtd. Sub. Notes, 7.25%, 02/15/15(b)		25,000		24,875
International Game Technology, Sr. Unsec. Global Notes, 5.50%, 06/15/20		35,000		36,056
MGM Resorts International, Sr. Sec. Global Notes, 11.13%, 11/15/17		15,000		16,575
Pinnacle Entertainment, Inc., Sr. Unsec. Gtd. Notes, 8.63%, 08/01/17(b)		30,000		30,750
Wynn Las Vegas Capital LLC/Corp., Sec. First Mortgage Notes, 7.88%, 11/01/17(b)		50,000		50,250
				158,506
Coal & Consumable Fuels–0.13%
Consol Energy Inc., Sr. Unsec. Gtd. Notes, 8.00%, 04/01/17(b)		15,000		15,637
8.25%, 04/01/20(b)		15,000		15,769
				31,406
Computer Hardware–0.25%
Hewlett-Packard Co., Sr. Unsec. Global Notes, 4.75%, 06/02/14		55,000		60,930
Construction Materials–0.53%
Holcim U.S. Finance Sarl & Cie SCS (Switzerland), Unsec. Gtd. Unsub. Notes, 6.00%, 12/30/19(b)		110,000		119,016
Texas Industries, Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 07/15/13		10,000		9,750
				128,766

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Construction, Farm Machinery & Heavy Trucks–0.32%
Case New Holland Inc., Sr. Unsec. Gtd. Global Notes, 7.75%, 09/01/13	$	25,000	$	25,750
CNH America LLC, Sr. Unsec. Gtd. Notes, 7.25%, 01/15/16		25,000		25,188
Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21		25,000		25,437
				76,375
Consumer Finance–0.68%
Ally Financial Inc., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/01/31		50,000		47,000
Sr. Unsec. Gtd. Notes, 8.00%, 03/15/20(b)		25,000		24,688
Ford Motor Credit Co. LLC, Sr. Unsec. Notes, 8.00%, 12/15/16		65,000		66,462
National Money Mart Co. (Canada), Sr. Gtd. Notes, 10.38%, 12/15/16(b)		25,000		25,500
				163,650
Data Processing & Outsourced Services–0.19%
First Data Corp., Sr. Unsec. Gtd. Global Notes, 9.88%, 09/24/15		25,000		19,000
SunGard Data Systems Inc., Sr. Unsec. Gtd. Sub. Global Notes, 10.25%, 08/15/15		25,000		25,813
				44,813
Diversified Banks–3.05%
Bank of Nova Scotia (Canada), Sr. Unsec. Global Notes, 2.38%, 12/17/13		70,000		71,678
Barclays Bank PLC (United Kingdom), Sr. Unsec. Global Notes, 6.75%, 05/22/19		155,000		172,894
ING Bank N.V. (Netherlands), Unsec. Sub. Bonds, 5.13%, 05/01/15(b)		100,000		106,776
Lloyds TSB Bank PLC (United Kingdom), Sr. Unsec. Gtd. Bonds, 4.38%, 01/12/15(b)		145,000		139,880
Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15		130,000		129,500
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 5.50%, 11/18/14(b)		55,000		60,994
Wachovia Corp.–Series G, Sr. Unsec. Medium-Term Notes, 5.50%, 05/01/13		50,000		53,975
				735,697
Diversified Capital Markets–0.91%
Credit Suisse AG (Switzerland), Sub. Global Notes, 5.40%, 01/14/20		115,000		114,787
UBS AG (Switzerland), Sr. Unsec. Medium-Term Notes, 5.75%, 04/25/18		100,000		105,027
				219,814
Diversified Metals & Mining–0.46%
Freeport-McMoRan Copper & Gold Inc., Sr. Unsec. Notes, 8.38%, 04/01/17		35,000		38,577
Rio Tinto Finance USA Ltd. (Australia), Sr. Unsec. Gtd. Global Notes, 8.95%, 05/01/14		60,000		72,874
				111,451
Diversified Support Services–0.11%
Travelport LLC, Sr. Unsec. Gtd. Global Notes, 9.88%, 09/01/14		25,000		25,375
Drug Retail–0.92%
CVS Caremark Corp., Unsec. Notes, 6.60%, 03/15/19		190,000		221,153
Electric Utilities–4.26%
Carolina Power & Light Co., Sec. First Mortgage Bonds, 5.30%, 01/15/19		40,000		45,059
DCP Midstream LLC, Notes, 9.70%, 12/01/13(b)		100,000		120,118
Sr. Unsec. Notes, 7.88%, 08/16/10		200,000		201,525
9.75%, 03/15/19(b)		55,000		70,895
Enel Finance International S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 3.88%, 10/07/14(b)		100,000		100,818
Indiana Michigan Power Co., Sr. Unsec. Notes, 7.00%, 03/15/19		140,000		165,306
LSP Energy L.P./LSP Batesville Funding Corp. Series D, Sr. Sec. Bonds, 8.16%, 07/15/25		25,000		18,562

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Electric Utilities–(continued)
Ohio Power Co., Series M, Sr. Unsec. Notes, 5.38%, 10/01/21	$	180,000	$	194,445
PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39		45,000		52,508
Virginia Electric & Power Co., Sr. Unsec. Notes, 5.00%, 06/30/19		55,000		60,250
				1,029,486
Electrical Components & Equipment–0.11%
Belden Inc., Sr. Gtd. Notes, 9.25%, 06/15/19(b)		25,000		26,219
Electronic Manufacturing Services–0.07%
Jabil Circuit, Inc., Sr. Unsec. Notes, 7.75%, 07/15/16		15,000		15,750
Environmental & Facilities Services–0.06%
Clean Habors Inc., Sr. Sec. Gtd. Global Notes, 7.63%, 08/15/16		15,000		15,413
Food Retail–0.31%
Wrigley WM Jr. Co., Sr. Sec. Gtd. Floating Rate Notes, 1.91%, 06/28/11(b)(e)		45,000		45,141
Sr. Sec. Gtd. Notes, 3.05%, 06/28/13(b)		30,000		30,173
				75,314
Gas Utilities–0.04%
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20		10,000		10,150
Gold–1.14%
Newmont Mining Corp., Sr. Unsec. Gtd. Notes, 5.13%, 10/01/19		145,000		155,073
6.25%, 10/01/39		110,000		120,523
				275,596
Health Care Equipment–0.55%
Boston Scientific Corp., Sr. Unsec. Notes, 4.50%, 01/15/15		50,000		49,168
6.00%, 01/15/20		85,000		84,672
				133,840
Health Care Facilities–0.43%
Community Health Systems Inc., Sr. Unsec. Gtd. Global Notes, 8.88%, 07/15/15		25,000		26,000
HCA, Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 02/15/20		50,000		51,750
Tenet Healthcare Corp., Sr. Unsec. Notes, 7.38%, 02/01/13		25,000		25,187
				102,937
Health Care Services–1.67%
Express Scripts Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 06/15/12		45,000		48,064
6.25%, 06/15/14		125,000		141,614
7.25%, 06/15/19		40,000		48,786
Multiplan Inc., Sr. Unsec. Sub. Notes, 10.38%, 04/15/16(b)		25,000		25,813
Orlando Lutheran Towers Inc., Putable Bonds, 7.75%, 07/01/11		15,000		15,014
8.00%, 07/01/17		125,000		123,654
				402,945
Hotels, Resorts & Cruise Lines–1.61%
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15(b)		165,000		174,916
Royal Caribbean Cruises Ltd. (Trinidad), Sr. Unsec. Yankee Notes, 7.50%, 10/15/27		25,000		22,063
Starwood Hotels & Resorts Worldwide, Inc., Sr. Unsec. Notes, 7.15%, 12/01/19		35,000		35,700
Wyndham Worldwide Corp., Sr. Unsec. Notes, 7.38%, 03/01/20		155,000		156,356
				389,035
Household Products–0.10%
Central Garden and Pet Co., Sr. Gtd. Sub. Notes, 8.25%, 03/01/18		25,000		24,906

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Independent Power Producers & Energy Traders–0.43%
AES Corp. (The), Sr. Unsec. Notes, 9.75%, 04/15/16(b)	$	50,000	$	53,937
NRG Energy, Inc., Sr. Unsec. Gtd. Notes, 7.38%, 02/01/16		25,000		25,062
7.38%, 01/15/17		25,000		24,813
				103,812
Industrial Conglomerates–1.09%
Hutchison Whampoa International Ltd. (Cayman Islands), Gtd. Notes, 5.75%, 09/11/19(b)		100,000		106,925
Sr. Unsec. Gtd. Notes, 7.63%, 04/09/19(b)		130,000		155,642
				262,567
Industrial REIT’s–1.00%
ProLogis, Sr. Unsec. Notes, 6.25%, 03/15/17		255,000		241,784
Insurance Brokers–0.84%
Marsh & McLennan Cos. Inc., Sr. Unsec. Notes, 5.15%, 09/15/10		75,000		75,559
9.25%, 04/15/19		100,000		126,395
				201,954
Integrated Telecommunication Services–3.53%
British Telecommunications PLC (United Kingdom), Sr. Unsec. Global Notes, 9.38%, 12/15/10		250,000		258,810
Cellco Partnership/Verizon Wireless Capital LLC, Sr. Unsec. Global Notes, 7.38%, 11/15/13		140,000		165,829
Qwest Communications International Inc., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/18(b)		25,000		24,938
Telefonica Europe B.V. (Netherlands), Unsec. Gtd. Unsub. Global Notes, 7.75%, 09/15/10		200,000		202,242
Telemar Norte Leste S.A. (Brazil), Sr. Unsec. Notes, 9.50%, 04/23/19(b)		125,000		149,909
Wind Acquisition Finance S.A. (Luxembourg), Sr. Sec. Gtd. Sub. Notes, 11.75%, 07/15/17(b)		50,000		52,125
				853,853
Internet Software & Services–0.06%
Equinix Inc., Sr. Unsec. Notes, 8.13%, 03/01/18		15,000		15,413
Investment Banking & Brokerage–6.21%
E*Trade Financial Corp., Sr. Unsec Global Notes, 7.38%, 09/15/13		10,000		8,850
Goldman Sachs Group Inc. (The), Sr. Unsec. Global Notes, 5.13%, 01/15/15		50,000		52,587
Sr. Unsec. Medium-Term Global Notes, 5.38%, 03/15/20		175,000		173,288
Unsec. Sub. Global Notes, 6.75%, 10/01/37		140,000		138,041
Jefferies Group Inc., Sr. Unsec. Notes, 6.45%, 06/08/27		375,000		352,902
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes, 7.30%, 08/01/14(b)		110,000		121,446
6.00%, 01/14/20(b)		105,000		112,809
Morgan Stanley, Sr. Unsec. Medium-Term Global Notes, 6.00%, 05/13/14		230,000		242,737
Series F, Sr. Unsec. Medium-Term Global Notes, 5.63%, 09/23/19		130,000		126,027
Schwab Capital Trust I, Jr. Unsec. Gtd. Sub. Variable Rate Notes, 7.50%, 11/15/37(e)		50,000		49,810
TD Ameritrade Holding Corp., Sr. Unsec. Gtd. Notes, 5.60%, 12/01/19		115,000		121,467
				1,499,964
Leisure Facilities–0.15%
Universal City Development Partners Ltd., Sr. Notes, 8.88%, 11/15/15(b)		25,000		25,313
Sr. Sub. Notes, 10.88%, 11/15/16(b)		10,000		10,425
				35,738
Life & Health Insurance–3.50%
MetLife Inc., Sr. Unsec. Global Notes, 7.72%, 02/15/19		180,000		213,645
Sr. Unsec. Notes, 6.75%, 06/01/16		155,000		176,089

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Life & Health Insurance–(continued)
Prudential Financial Inc., Jr. Unsec. Sub. Variable Rate Global Notes, 8.88%, 06/15/38(e)	$	130,000	$	140,738
Series D, Sr. Unsec. Medium-Term Notes, 2.75%, 01/14/13		105,000		105,665
Series D, Sr. Unsec. Medium-Term Notes, 3.88%, 01/14/15		105,000		106,035
7.38%, 06/15/19		90,000		103,398
				845,570
Life Sciences Tools & Services–0.64%
Life Technologies Corp., Sr. Notes, 6.00%, 03/01/20		120,000		130,245
Patheon Inc. (Canada), Sr. Sec. Notes, 8.63%, 04/15/17(b)		25,000		24,812
				155,057
Mortgage Backed Securities–0.53%
U.S. Bank N.A., Sr. Unsec. Medium-Term Global Notes, 5.92%, 05/25/12		123,102		128,729
Movies & Entertainment–0.37%
Cinemark USA Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 06/15/19		25,000		25,250
Time Warner Cable Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 07/01/18		55,000		63,055
				88,305
Multi-Line Insurance–1.65%
American Financial Group Inc., Sr. Unsec. Notes, 9.88%, 06/15/19		180,000		217,770
American International Group, Inc., Jr. Sub. Variable Rate Global Notes, 8.18%, 05/15/58(e)		15,000		11,925
Genworth Financial Inc., Sr. Unsec. Notes, 7.70%, 06/15/20		55,000		55,070
Hartford Financial Services Group Inc. (The), Jr. Unsec. Sub. Variable Rate Deb., 8.13%, 06/15/38(e)		10,000		9,187
Liberty Mutual Group Inc., Sr. Unsec. Notes, 5.75%, 03/15/14(b)		100,000		104,414
				398,366
Multi-Utilities–1.33%
Nisource Finance Corp., Sr. Unsec. Gtd. Notes, 7.88%, 11/15/10		250,000		255,364
Pacific Gas & Electric Co., Sr. Unsec. Notes, 5.40%, 01/15/40		65,000		67,130
				322,494
Office REIT’s–1.41%
Boston Properties L.P., Sr. Unsec. Notes, 5.88%, 10/15/19		140,000		150,416
Digital Realty Trust L.P., Unsec. Gtd. Unsub. Bonds, 5.88%, 02/01/20(b)		185,000		190,155
				340,571
Office Services & Supplies–0.21%
IKON Office Solutions, Inc., Sr. Unsec. Notes, 6.75%, 12/01/25		25,000		24,625
7.30%, 11/01/27		25,000		25,781
				50,406
Oil & Gas Equipment & Services–0.08%
Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17		10,000		9,575
Key Energy Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 12/01/14		10,000		9,950
				19,525
Oil & Gas Exploration & Production–2.87%
Anadarko Petroleum Corp., Sr. Unsec. Global Notes, 5.75%, 06/15/14		250,000		225,375
Sr. Unsec. Notes, 7.63%, 03/15/14		15,000		14,272
Chesapeake Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.25%, 01/15/18		25,000		25,000
Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17		50,000		50,500
Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 10/01/19		15,000		15,787
Encore Acquisition Co., Sr. Gtd. Sub. Notes, 9.50%, 05/01/16		10,000		10,588
McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14		40,000		41,050

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Oil & Gas Exploration & Production–(continued)
Motiva Enterprises LLC, Sr. Unsec. Notes, 6.85%, 01/15/40(b)	$	100,000	$	116,604
Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 5.75%, 01/20/20		40,000		40,239
6.88%, 01/20/40		45,000		45,563
Petrohawk Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.88%, 06/01/15		15,000		15,112
Plains Exploration & Production Co., Sr. Unsec. Gtd. Notes, 8.63%, 10/15/19		15,000		15,150
Range Resources Corp., Sr. Unsec. Gtd. Sub. Notes, 7.50%, 10/01/17		25,000		25,344
Southwestern Energy Co., Sr. Gtd. Global Notes, 7.50%, 02/01/18		50,000		53,375
				693,959
Oil & Gas Refining & Marketing–0.76%
Petronas Capital Ltd. (Malaysia), Unsec. Gtd. Unsub. Notes, 5.25%, 08/12/19(b)		100,000		105,873
Tesoro Corp., Sr. Unsec. Gtd. Global Notes, 6.63%, 11/01/15		10,000		9,400
United Refining Co., Series 2, Sr. Unsec. Gtd. Global Notes, 10.50%, 08/15/12		75,000		68,813
				184,086
Oil & Gas Storage & Transportation–2.72%
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Notes, 5.20%, 09/01/20		70,000		72,175
6.45%, 09/01/40		70,000		73,568
Inergy L.P./Inergy Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.25%, 03/01/16		25,000		25,500
Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18		25,000		24,688
Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20		155,000		163,378
Williams Partners L.P., Sr. Unsec. Notes, 3.80%, 02/15/15(b)		210,000		212,992
6.30%, 04/15/40(b)		85,000		85,803
				658,104
Other Diversified Financial Services–11.83%
Bank of America Corp., Sr. Unsec. Global Notes, 4.50%, 04/01/15		240,000		243,168
6.50%, 08/01/16		130,000		141,003
Bear Stearns Cos. LLC (The), Sr. Unsec. Floating Rate Notes, 0.70%, 07/19/10(e)		260,000		260,077
Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19(b)		315,000		326,976
Citigroup Inc., Sr. Unsec. Global Notes, 6.01%, 01/15/15		250,000		262,419
Sr. Unsec. Notes, 6.38%, 08/12/14		505,000		536,519
Countrywide Financial Corp., Sr. Unsec. Gtd. Medium-Term Global Notes, 5.80%, 06/07/12		40,000		42,121
ERAC USA Finance LLC, Sr. Gtd. Notes, 5.25%, 10/01/20(b)		30,000		30,455
Football Trust V, Pass Through Ctfs., 5.35%, 10/05/20(b)		100,000		103,953
General Electric Capital Corp., Sr. Unsec. Medium-Term Global Notes, 5.50%, 01/08/20		75,000		79,508
Series A, Sr. Unsec. Medium-Term Global Notes, 6.88%, 01/10/39		380,000		417,938
International Lease Finance Corp., Sr. Unsec. Notes, 8.63%, 09/15/15(b)		10,000		9,550
8.75%, 03/15/17(b)		15,000		14,325
JPMorgan Chase & Co., Sr. Unsec. Global Notes, 4.75%, 05/01/13		15,000		16,024
JPMorgan Chase Capital XXVII, Series AA, Jr. Unsec. Gtd. Sub. Notes, 7.00%, 11/01/39		160,000		165,557
Merrill Lynch & Co. Inc. Series C, Sr. Unsec. Medium-Term Global Notes, 5.45%, 02/05/13		200,000		208,822
Twin Reefs Pass-Through Trust, Floating Rate Pass Through Ctfs., 1.39%, (Acquired 12/07/04-04/03/06; Cost $130,332)(b)(e)(f)(g)		130,000		422
				2,858,837
Packaged Foods & Meats–0.74%
Del Monte Corp., Sr. Unsec. Gtd. Sub. Notes, 7.50%, 10/15/19(b)		10,000		10,275
Dole Food Co. Inc., Sr. Sec. Notes, 8.00%, 10/01/16(b)		25,000		25,125

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Packaged Foods & Meats–(continued)
Kraft Foods Inc., Sr. Unsec. Global Notes, 2.63%, 05/08/13	$	70,000	$	71,401
4.13%, 02/09/16		15,000		15,802
6.50%, 02/09/40		50,000		55,669
				178,272
Paper Packaging–0.14%
Cascades Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20		10,000		9,800
Graham Packaging Co. L.P./GPC Capital Corp. I, Sr. Unsec. Gtd. Notes, 8.25%, 01/01/17(b)		25,000		24,625
				34,425
Paper Products–0.89%
International Paper Co., Sr. Unsec. Global Bonds, 7.50%, 08/15/21		110,000		128,518
Mercer International Inc., Sr. Unsec. Global Notes, 9.25%, 02/15/13		75,000		72,937
Neenah Paper, Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/15/14		15,000		14,775
				216,230
Pharmaceuticals–0.12%
Valeant Pharmaceuticals International, Sr. Unsec. Gtd. Global Notes, 8.38%, 06/15/16		25,000		28,406
Property & Casualty Insurance–0.71%
CNA Financial Corp., Sr. Unsec. Notes, 7.35%, 11/15/19		160,000		171,670
Publishing–0.32%
Gannett Co. Inc., Sr. Unsec. Gtd. Notes, 9.38%, 11/15/17(b)		25,000		26,562
Nielsen Finance LLC/Co., Sr. Unsec. Gtd. Sub. Disc. Global Notes, 12.50%, 08/01/16(c)		25,000		23,813
Reed Elsevier Capital Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 08/01/11		25,000		26,430
				76,805
Railroads–0.15%
Kansas City Southern de Mexico S.A. de C.V. (Mexico), Sr. Unsec. Notes, 8.00%, 02/01/18(b)		35,000		35,991
Regional Banks–1.41%
CIT Group Inc., Sr. Sec. Bonds, 7.00%, 05/01/14		25,000		23,688
PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 3.63%, 02/08/15		110,000		113,028
PNC Preferred Funding Trust III, Jr. Sub. Variable Rate Notes, 8.70%, 12/31/49(b)(e)		200,000		203,000
				339,716
Research & Consulting Services–0.47%
ERAC USA Finance LLC, Unsec. Gtd. Notes, 5.80%, 10/15/12(b)		105,000		114,076
Restaurants–0.89%
Yum! Brands Inc., Sr. Unsec. Notes, 5.30%, 09/15/19		200,000		215,694
Semiconductor Equipment–0.10%
Amkor Technology Inc., Sr. Unsec. Notes, 7.38%, 05/01/18(b)		25,000		24,500
Semiconductors–0.53%
Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 9.25%, 04/15/18(b)		25,000		24,750
National Semiconductor Corp., Sr. Unsec. Notes, 3.95%, 04/15/15		80,000		81,499
NXP BV/NXP Funding LLC (Netherlands), Sr. Sec. Gtd. Global Notes, 7.88%, 10/15/14		25,000		23,000
				129,249
Sovereign Debt–2.97%
Brazilian Government International Bond (Brazil), Sr. Unsec. Global Bonds, 5.88%, 01/15/19		120,000		131,775
Russia Foreign Bond (Russia), Sr. Unsec. Notes, 3.63%, 04/29/15(b)		100,000		96,937
Russian Foreign Bond (Russia), Sr. Unsec. Bonds, 5.00%, 04/29/20(b)		100,000		96,875
United Mexican States (Mexico), Sr. Unsec. Global Notes, 5.88%, 02/17/14		300,000		329,250
6.05%, 01/11/40		60,000		63,120
				717,957

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Specialized Finance–1.73%
NASDAQ OMX Group Inc. (The), Sr. Unsec. Notes, 4.00%, 01/15/15	$	350,000	$	356,135
National Rural Utilities Cooperative Finance Corp., Sr. Sec. Notes, 2.63%, 09/16/12		60,000		61,493
				417,628
Specialty Chemicals–0.12%
Huntsman International LLC, Sr. Gtd. Sub. Notes,
8.63%, 03/15/20(b)		15,000		13,856
Sr. Unsec. Gtd. Sub. Global Notes, 7.88%, 11/15/14		15,000		14,475
				28,331
Specialty Properties–1.74%
Entertainment Properties Trust, 7.75%, 07/15/20(b)		245,000		244,422
Healthcare Realty Trust Inc., Sr. Unsec. Notes, 6.50%, 01/17/17		140,000		147,378
Senior Housing Properties Trust, Sr. Unsec. Notes, 6.75%, 04/15/20		30,000		29,738
				421,538
Specialty Stores–0.78%
Staples Inc., Sr. Unsec. Gtd. Global Notes, 9.75%, 01/15/14		25,000		30,600
Sr. Unsec. Gtd. Notes, 7.75%, 04/01/11		150,000		157,358
				187,958
Steel–0.84%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Bonds, 9.00%, 02/15/15		55,000		65,016
Sr. Unsec. Global Notes, 7.00%, 10/15/39		130,000		137,081
				202,097
Technology Distributors–0.69%
Avnet Inc., Sr. Unsec. Notes, 5.88%, 06/15/20		165,000		167,086
Textiles–0.10%
Invista, Sr. Unsec. Notes, 9.25%, 05/01/12(b)		24,000		24,330
Thrifts & Mortgage Finance–0.28%
First Niagara Financial Group Inc., Sr. Unsec. Notes, 6.75%, 03/19/20		65,000		68,558
Tires & Rubber–0.20%
Cooper Tire & Rubber Co., Sr. Unsec. Notes, 7.63%, 03/15/27		25,000		22,563
Goodyear Tire & Rubber Co. (The), Sr. Unsec. Gtd. Notes, 8.75%, 08/15/20		25,000		25,687
				48,250
Trading Companies & Distributors–0.10%
H&E Equipment Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16		25,000		23,625
Wireless Telecommunication Services–0.77%
American Tower Corp., Sr. Unsec. Global Notes, 4.63%, 04/01/15		90,000		93,506
Clearwire Communications LLC/Clearwire Finance Inc., Sr. Sec. Gtd. Notes, 12.00%, 12/01/15(b)		35,000		35,437
SBA Telecommunications Inc., Sr. Unsec. Gtd. Notes, 8.25%, 08/15/19(b)		25,000		26,219
Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 11/15/28		25,000		20,813
Sprint Nextel Corp., Sr. Unsec. Notes, 8.38%, 08/15/17		10,000		10,025
				186,000
Total Bonds & Notes (Cost $20,273,553)				21,323,890
U.S. Treasury Securities–7.82%
U.S. Treasury Notes–3.65%
1.50%, 12/31/13		875,000		882,246
U.S. Treasury Bonds–4.17%
5.38%, 02/15/31(h)		415,000		510,385
3.50%, 02/15/39		65,000		60,379
4.25%, 05/15/39		100,000		105,734
4.50%, 08/15/39		300,000		330,422
				1,006,920
Total U.S. Treasury Securities (Cost $1,812,909)				1,889,166

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Asset-Backed Securities–2.25%
Countrywide Asset-Backed Ctfs. Series 2007-4, Class A1B, Pass Through Ctfs., 5.81%, 09/25/37	$	77,573	$	75,494
Credit Suisse Mortgage Capital Ctfs. Series 2009-2R, Class 1A11, Floating Rate Pass Through Ctfs., 3.08%, 09/26/34(b)(e)		135,814		129,731
TIAA Seasoned Commercial Mortgage Trust, Series 2007-C4, Class A2, Variable Rate Pass Through Ctfs., 5.79%, 08/15/39(e)		45,000		47,354
Wachovia Bank Commercial Mortgage Trust, Series 2005-C21, Class AJ, Variable Rate Pass Through Ctfs., 5.38%, 10/15/44(e)		110,000		98,821
Wells Fargo Mortgage Backed Securities Trust, Series 2004-Z, Class 2A1, Floating Rate Pass Through Ctfs., 2.97%, 12/25/34(e)		205,915		192,527
Total Asset-Backed Securities (Cost $525,664)				543,927
U.S. Government Sponsored Mortgage-Backed Securities–1.90%
Federal Home Loan Mortgage Corp. (FHLMC)–0.90%
Pass Through Ctfs., 6.50%, 05/01/16 to 08/01/32		12,163		13,473
6.00%, 05/01/17 to 12/01/31		65,698		72,257
5.50%, 09/01/17		41,405		44,953
7.00%, 08/01/21		78,490		87,609
				218,292
Federal National Mortgage Association (FNMA)–0.85%
Pass Through Ctfs., 7.00%, 02/01/16 to 09/01/32		26,523		29,832
6.50%, 05/01/16 to 10/01/35		18,646		20,764
5.00%, 11/01/18		40,181		43,223
7.50%, 04/01/29 to 10/01/29		91,650		104,416
8.00%, 04/01/32		6,013		6,973
				205,208
Government National Mortgage Association (GNMA)–0.15%
Pass Through Ctfs., 7.50%, 06/15/23		11,465		13,028
8.50%, 11/15/24		6,169		7,163
7.00%, 07/15/31 to 08/15/31		2,463		2,800
6.50%, 11/15/31 to 03/15/32		5,575		6,243
6.00%, 11/15/32		5,528		6,119
				35,353
Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $420,461)				458,853
Municipal Obligations–0.68%
Florida (State of) Development Finance Corp. (Palm Bay Academy Inc.); Series 2006 B, Taxable RB, 7.50%, 05/15/17		65,000		55,493
Georgia (State of) Municipal Electric Authority (Build America Bonds); Series 2010 A, Taxable RB, 6.64%, 04/01/57		110,000		108,952
Total Municipal Obligations (Cost $174,523)				164,445
Common Stocks & Other Equity Interests–0.02%
Broadcasting–0.02%
Adelphia Communications Corp.,(i)		900		1,125
Adelphia Recovery Trust, Series ACC-1(i)		87,412		2,360
Total Common Stocks & Other Equity Interests (Cost $22,181)				3,485
TOTAL INVESTMENTS–100.93% (Cost $23,229,291)				24,383,766
OTHER ASSETS LESS LIABILITIES–(0.93)%				(223,833	)
NET ASSETS–100.00%			$	24,159,933

Investment Abbreviations:

Ctfs.	– Certificates
Deb.	– Debentures
Gtd.	– Guaranteed
Jr.	– Junior
RB	– Revenue Bonds
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
Unsec.	– Unsecured
Unsub.	– Unsubordinated

Notes to Schedule of Investments:

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

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

Invesco V.I. Diversified Income Fund

(b)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $5,140,983, which represented 21.29% of the Fund’s Net Assets.
(c)	Step coupon bond issued at discount. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(d)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(e)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(f)	Perpetual bond with no specified maturity date.
(g)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at June 30, 2010 represented less than 0.01% of the Fund’s Net Assets.
(h)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J and Note 4.
(i)	Non-income producing security acquired as part of the Adelphia Communications bankruptcy reorganization.

Portfolio Composition

By industry, based on Net Assets

as of June 30, 2010

Other Diversified Financial Services	11.8	%
U.S. Treasury Securities	7.9
Investment Banking & Brokerage	6.2
Electric Utilities	4.3
Integrated Telecommunication Services	3.5
Life & Health Insurance	3.5
Broadcasting	3.2
Diversified Banks	3.0
Sovereign Debt	3.0
Other Industries, Each with Less Than 3% of Total Net Assets	54.5
Other Assets Less Liabilities	(0.9	)

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

Invesco V.I. Diversified Income Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $23,229,291)	$	24,383,766
Receivables for:
Investments sold		112,362
Variation margin		2,297
Fund shares sold		8,071
Dividends and interest		364,442
Investment for trustee deferred compensation and retirement plans		34,725
Other assets		2,482
Total assets		24,908,145
Liabilities:
Payables for:
Investments purchased		252,585
Fund shares reacquired		44,003
Amount due custodian		367,910
Accrued fees to affiliates		11,215
Accrued other operating expenses		30,217
Trustee deferred compensation and retirement plans		42,282
Total liabilities		748,212
Net assets applicable to shares outstanding	$	24,159,933
Net assets consist of:
Shares of beneficial interest	$	37,726,248
Undistributed net investment income		1,973,326
Undistributed net realized gain (loss)		(16,704,669	)
Unrealized appreciation		1,165,028
	$	24,159,933
Net Assets:
Series I	$	23,898,730
Series II	$	261,203
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		3,852,168
Series II		42,413
Series I:
Net asset value per share	$	6.20
Series II:
Net asset value per share	$	6.16

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Interest	$	707,606
Dividends from affiliated money market funds		176
Total investment income		707,782
Expenses:
Advisory fees		72,698
Administrative services fees		45,811
Custodian fees		5,466
Distribution fees — Series II		355
Transfer agent fees		4,192
Trustees’ and officers’ fees and benefits		9,177
Professional services fees		21,791
Other		7,678
Total expenses		167,168
Less: Fees waived and expenses reimbursed		(76,419	)
Net expenses		90,749
Net investment income		617,033
Realized and unrealized gain from:
Net realized gain from:
Investment securities		206,916
Futures contracts		58,732
		265,648
Change in net unrealized appreciation of:
Investment securities		355,295
Futures contracts		53,353
		408,648
Net realized and unrealized gain		674,296
Net increase in net assets resulting from operations	$	1,291,329

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

Invesco V.I. Diversified Income Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	617,033		$	1,404,443
Net realized gain (loss)		265,648			(7,052,675	)
Change in net unrealized appreciation		408,648			8,107,358
Net increase in net assets resulting from operations		1,291,329			2,459,126
Distributions to shareholders from net investment income:
Series I		—			(2,398,080	)
Series II		—			(27,960	)
Total distributions from net investment income		—			(2,426,040	)
Share transactions–net:
Series I		(1,677,145	)		201,049
Series II		(44,117	)		(122,516	)
Net increase (decrease) in net assets resulting from share transactions		(1,721,262	)		78,533
Net increase (decrease) in net assets		(429,933	)		111,619
Net assets:
Beginning of period		24,589,866			24,478,247
End of period (includes undistributed net investment income of $1,973,326 and $1,356,293, respectively)	$	24,159,933		$	24,589,866

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Diversified Income Fund, formerly AIM V.I. Diversified Income Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is total return comprised of current income and capital appreciation.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean

Invesco V.I. Diversified Income Fund

	between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco V.I. Diversified Income Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Lower-Rated Securities — The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims.
J.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
K.	Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.60%
Over $250 million		0	.55%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver [and/or expense reimbursement] (excluding certain items discussed below) of Series I shares to 0.75% and Series II shares to 1.00% 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 items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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.

Invesco V.I. Diversified Income Fund

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $72,698 and reimbursed Fund expenses of $3,721.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $21,017 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	2,360	$	1,125	$	—	$	3,485
U.S. Treasury Securities		—		1,889,166		—		1,889,166
U.S. Government Sponsored Securities		—		458,853		—		458,853
Corporate Debt Securities		—		21,323,890		—		21,323,890
Asset Backed Securities		—		543,927		—		543,927
Municipal Obligations		—		164,445		—		164,445
	$	2,360	$	24,381,406	$	—	$	24,383,766
Futures*		10,553		—		—		10,553
Total Investments	$	12,913	$	24,381,406	$	—	$	24,394,319

*  Unrealized appreciation.

Invesco V.I. Diversified Income Fund

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	81,904	$	(71,351	)

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

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain (Loss) on
	Statement of Operations
	Futures*
Realized Gain
Interest rate risk	$	58,732
Change in Unrealized Appreciation
Interest rate risk		53,353
Total	$	112,085

*  The average value of futures outstanding during the period was $8,641,832.

Open Futures Contracts
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
U.S. Treasury Ultra Bonds		2		September-2010/Long	$	271,625		$	14,124
U.S. Treasury 2 Year Notes		8		September-2010/Long		1,750,625			5,483
U.S. Treasury Long Bonds		9		September-2010/Long		1,147,500			20,724
U.S. Treasury 5 Year Notes		24		September-2010/Long		2,840,438			41,573
Subtotal		43			$	6,010,188		$	81,904
U.S. Treasury 10 Year Notes		29		September-2010/Short		(3,553,859	)		(71,351	)
Total					$	2,456,329		$	10,553

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,327 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

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

Invesco V.I. Diversified Income Fund

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

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	6,879,052
December 31, 2014		341,884
December 31, 2015		221,396
December 31, 2016		2,197,944
December 31, 2017		7,359,091
Total capital loss carryforward	$	16,999,367

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $11,927,231 and $10,118,345, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	1,426,785
Aggregate unrealized (depreciation) of investment securities		(272,310	)
Net unrealized appreciation of investment securities	$	1,154,475
Investments have the same cost for tax and financial statement purposes.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		146,304		$	884,859			503,808		$	3,031,480
Series II		44			262			961			5,848
Issued as reinvestment of dividends:
Series I		—			—			406,455			2,398,080
Series II		—			—			4,771			27,960
Reacquired:
Series I		(423,634	)		(2,562,004	)		(882,462	)		(5,228,511	)
Series II		(7,307	)		(44,379	)		(26,192	)		(156,324	)
Net increase (decrease) in share activity		(284,593	)	$	(1,721,262	)		7,341		$	78,533

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 77% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Diversified Income Fund

NOTE 10—Financial Highlights

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

																					Ratio of			Ratio of
																					expenses			expenses
					Net gains																to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends										net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	5.88	$	0.15	$	0.17		$	0.32		$	—		$	6.20		5.44	%	$	23,899		0.75	%(d)		1.38	%(d)		5.10	%(d)		45	%
Year ended 12/31/09		5.87		0.35		0.29			0.64			(0.63	)		5.88		10.89			24,299		0.74			1.48			5.91			200
Year ended 12/31/08		7.80		0.50		(1.74	)		(1.24	)		(0.69	)		5.87		(15.59	)		24,070		0.75			1.31			6.83			35
Year ended 12/31/07		8.28		0.51		(0.37	)		0.14			(0.62	)		7.80		1.72			38,336		0.75			1.17			6.04			67
Year ended 12/31/06		8.43		0.46		(0.08	)		0.38			(0.53	)		8.28		4.48			46,743		0.75			1.10			5.47			78
Year ended 12/31/05		8.74		0.40		(0.15	)		0.25			(0.56	)		8.43		2.90			55,065		0.89			1.08			4.54			92
Series II
Six months ended 06/30/10		5.85		0.14		0.17			0.31			—			6.16		5.30			261		1.00	(d)		1.63	(d)		4.85	(d)		45
Year ended 12/31/09		5.83		0.34		0.29			0.63			(0.61	)		5.85		10.70			291		0.99			1.73			5.66			200
Year ended 12/31/08		7.74		0.48		(1.72	)		(1.24	)		(0.67	)		5.83		(15.78	)		409		1.00			1.56			6.58			35
Year ended 12/31/07		8.21		0.48		(0.36	)		0.12			(0.59	)		7.74		1.51			606		1.00			1.42			5.79			67
Year ended 12/31/06		8.36		0.44		(0.09	)		0.35			(0.50	)		8.21		4.17			713		1.00			1.35			5.22			78
Year ended 12/31/05		8.67		0.38		(0.15	)		0.23			(0.54	)		8.36		2.67			902		1.14			1.33			4.29			92

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $24,147 and $287 for Series I and Series II shares, respectively.

Invesco V.I. Diversified Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	1,054.40	$	3.82	$	1,021.08	$	3.76		0.75	%
Series II		1,000.00		1,053.00		5.09		1,019.84		5.01		1.00

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Diversified Income Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Diversified Income Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, and against the Lipper VA Underlying Funds — Corporate Debt BBB-Rated Index. The Board noted that the performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board also noted that Invesco Advisers made manager and process changes in 2008 and early 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was at the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund.

  Other than the mutual fund described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board also considered the effect this expense limitation would have on the Fund’s estimated total expenses.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Diversified Income Fund

		Invesco V.I. Dividend Growth Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

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

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

Invesco Distributors, Inc.

MS-VIDGR-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-7.13	%
Series II Shares	-7.18
S&P 500 Index▼ (Broad Market /Style-Specific Index)	-6.64
▼Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10
Series I Shares
Inception (3/1/90)	6.21	%
10 Years	1.15
5 Years	-1.85
1 Year	13.01
Series II Shares
Inception (6/5/00)	0.18	%
10 Years	0.91
5 Years	-2.08
1 Year	12.81

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Dividend Growth Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Dividend Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.67% and 0.92%, 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 Series I and Series II shares was 0.87% and 1.12%, 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.

     Invesco V.I. Dividend Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco V.I. Dividend Growth Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks–92.0%
Aerospace & Defense–4.2%
General Dynamics Corp.		38,186	$	2,236,172
Raytheon Co.		45,400		2,196,906
United Technologies Corp.		66,699		4,329,432
				8,762,510
Apparel Retail–1.5%
Ross Stores, Inc.		59,590		3,175,551
Apparel, Accessories & Luxury Goods–2.7%
Guess?, Inc.		96,290		3,008,100
VF Corp.		37,969		2,702,633
				5,710,733
Asset Management & Custody Banks–1.0%
Federated Investors, Inc.–Class B		103,914		2,152,059
Auto Parts & Equipment–1.3%
Johnson Controls, Inc.		104,500		2,807,915
Brewers–1.2%
Heineken N.V. (Netherlands)		58,947		2,498,732
Building Products–1.0%
Masco Corp.		199,995		2,151,946
Casinos & Gaming–1.0%
International Game Technology		131,009		2,056,841
Communications Equipment–1.4%
Corning, Inc.		176,810		2,855,482
Computer & Electronics Retail–1.6%
Best Buy Co., Inc.		98,860		3,347,400
Computer Hardware–4.8%
Apple, Inc.(b)(c)		8,162		2,052,988
Hewlett-Packard Co.		92,620		4,008,594
International Business Machines Corp.		33,538		4,141,272
				10,202,854
Construction & Farm Machinery & Heavy Trucks–1.5%
Caterpillar, Inc.		51,430		3,089,400
Consumer Finance–3.1%
American Express Co.		95,290		3,783,013
Capital One Financial Corp.		66,739		2,689,582
				6,472,595
Data Processing & Outsourced Services–2.5%
Automatic Data Processing, Inc.		70,340		2,831,888
Computer Sciences Corp.		53,830		2,435,808
				5,267,696
Electric Utilities–1.0%
Entergy Corp.		30,041		2,151,536
Food Distributors–1.2%
Sysco Corp.		88,034		2,515,131
Gas Utilities–1.5%
Questar Corp.		70,660		3,214,323
General Merchandise Stores–1.8%
Target Corp.		78,870		3,878,038
Health Care Equipment–1.0%
Stryker Corp.		43,739		2,189,574
Household Appliances–2.3%
Snap-On, Inc.		46,016		1,882,514
Whirlpool Corp.(c)		32,630		2,865,567
				4,748,081
Household Products–3.8%
Kimberly-Clark Corp.		91,390		5,540,976
Procter & Gamble Co. (The)		41,234		2,473,215
				8,014,191
Industrial Machinery–1.2%
Pentair, Inc.		80,923		2,605,721
Insurance Brokers–1.2%
Marsh & McLennan Cos., Inc.		115,009		2,593,453
Integrated Oil & Gas–5.6%
Chevron Corp.		62,710		4,255,501
Exxon Mobil Corp.		77,243		4,408,258
Marathon Oil Corp.		98,780		3,071,070
				11,734,829
Integrated Telecommunication Services–1.7%
AT&T, Inc.		145,650		3,523,274
Leisure Products–1.9%
Mattel, Inc.		192,470		4,072,665
Life & Health Insurance–1.7%
MetLife, Inc.		92,865		3,506,582

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

Invesco V.I. Dividend Growth Fund

	Shares		Value
Multi-Utilities–3.1%
DTE Energy Co.		66,920	$	3,052,221
Public Service Enterprise Group, Inc.		110,850		3,472,931
				6,525,152
Office Services & Supplies–1.1%
Pitney Bowes, Inc.		108,936		2,392,235
Oil & Gas Equipment & Services–1.0%
Baker Hughes, Inc.		52,896		2,198,887
Other Diversified Financial Services–1.6%
JPMorgan Chase & Co.		90,352		3,307,787
Paper Products–1.5%
International Paper Co.		144,570		3,271,619
Pharmaceuticals–8.0%
Bristol-Myers Squibb Co.		112,600		2,808,244
Johnson & Johnson		55,261		3,263,714
Merck & Co., Inc.		155,670		5,443,780
Pfizer, Inc.		374,357		5,338,331
				16,854,069
Property & Casualty Insurance–2.9%
ACE Ltd. (Switzerland)		48,130		2,477,732
Travelers Cos., Inc. (The)		74,000		3,644,500
				6,122,232
Railroads–2.3%
CSX Corp.		96,990		4,813,614
Regional Banks–1.2%
SunTrust Banks, Inc.		108,118		2,519,149
Semiconductors–2.4%
Intel Corp.		260,950		5,075,477
Soft Drinks–1.2%
Coca-Cola Co. (The)		50,866		2,549,404
Specialty Chemicals–1.8%
Lubrizol Corp. (The)		46,760		3,755,296
Systems Software–3.8%
Microsoft Corp.		254,197		5,849,073
Oracle Corp.		101,270		2,173,254
				8,022,327
Thrifts & Mortgage Finance–1.1%
Hudson City Bancorp, Inc.		184,942		2,263,690
Tobacco–4.3%
Altria Group, Inc.		171,308		3,433,012
Philip Morris International, Inc.		121,798		5,583,220
				9,016,232
Total Common Stocks (Cost $200,525,937)				193,986,282
Money Market Funds–1.6%
Liquid Assets Portfolio–Institutional Class(d)		1,665,353		1,665,353
Premier Portfolio–Institutional Class(d)		1,665,353		1,665,353
Total Money Market Funds (Cost $3,330,706)				3,330,706
TOTAL INVESTMENTS (Cost $203,856,643)–93.6%				197,316,988
OTHER ASSETS LESS LIABILITIES–6.4%				13,520,604
NET ASSETS–100.0%			$	210,837,592

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	A portion of this security is subject to call options written. See Note 1K and Note 4.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on net assets

as of June 30, 2010

Information Technology	14.9	%
Financials	13.7
Consumer Discretionary	13.2
Industrials	12.2
Consumer Staples	11.7
Health Care	9.0
Energy	6.6
Utilities	5.6
Materials	3.4
Telecommunication Services	1.7
Money Market Funds Plus Other Assets Less Liabilities	8.0

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

Invesco V.I. Dividend Growth Fund

Statement of Assets and Liabilities

June 30, 2010
(Unaudited)

Assets:
Investments, at value (Cost $200,525,937)	$	193,986,282
Investments in affiliated money market funds, at value and cost		3,330,706
Total investments, at value ($203,856,643)		197,316,988
Receivable for:
Investments sold		57,063,921
Dividends		485,286
Fund shares sold		182,894
Other Assets		7,955
Total assets		255,057,044
Liabilities:
Payable for:
Investments purchased		44,005,900
Fund shares reacquired		85,334
Written options outstanding, at value (premium received $34,669)		4,960
Accrued fees to affiliates		73,346
Trustee deferred compensation and retirement plan		9,986
Accrued other operating expenses		39,926
Total liabilities		44,219,452
Net assets applicable to shares outstanding	$	210,837,592
Net assets consist of:
Shares of beneficial interest	$	431,793,146
Undistributed net investment income		1,601,481
Undistributed net realized gain (loss)		(216,065,499	)
Unrealized appreciation (depreciation)		(6,491,536	)
	$	210,837,592
Net Assets:
Series I	$	163,339,265
Series II	$	47,498,327
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		13,640,500
Series II		3,972,672
Series I:
Net asset value and offering price per share	$	11.97
Series II:
Net asset value and offering price per share	$	11.96

Statement of Operations

For the six months ended June 30, 2010
(Unaudited)

Investment Income:
Dividends	$	2,514,669
Dividends from affiliated money market funds		1,414
Total investment income		2,516,083
Expenses
Advisory fees		659,774
Administrative services fees		133,059
Custodian fees		7,110
Distribution fees — Series II		71,176
Transfer agent fees		250
Trustees’ and officers’ fees and benefits		5,401
Other		38,727
Total expenses		915,497
Less: Fees waived		(11,003	)
Net expenses		904,494
Net investment income		1,611,589
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains (losses) from securities sold to affiliated of $(7,560,205))		(2,869,919	)
Options written		21,998
		(2,847,921	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(14,411,300	)
Foreign currencies		18,410
Options written		21,474
		(14,371,416	)
Net realized and unrealized gain (losses)		(17,219,337	)
Net increase (decrease) in net assets resulting from operations	$	(15,607,748	)

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

Invesco V.I. Dividend Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	1,611,589			4,066,768
Net realized gain (loss)		(2,847,921	)		(15,201,281	)
Change in net unrealized appreciation (depreciation)		(14,371,416	)		62,262,637
Net increase (decrease) in net assets resulting from operations		(15,607,748	)		51,128,124
Distributions to shareholders from net investment income:
Series I shares		(3,255,974	)		(3,466,136	)
Series II shares		(803,719	)		(986,235	)
Total distributions from net investment income		(4,059,693	)		(4,452,371	)
Net increase (decrease) from in net assets resulting from share transactions		(26,236,408	)		(33,543,934	)
Net increase (decrease) in net assets		(45,903,849	)		13,131,819
Net Assets:
Beginning of year		256,741,441			243,609,622
End of year (Including undistributed net investment income of $1,601,481 and $4,049,585, respectively)	$	210,837,592			256,741,441

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Dividend Growth Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Morgan Stanley Variable Investment Series Dividend Growth Portfolio (the “Acquired Fund”), an investment portfolio of Morgan Stanley Variable Investment Series. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class X and Class Y shares received Series I and Series II shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class X and Class Y shares prior to the Reorganization are included with Series I and Series II shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to provide reasonable current income and long-term growth of income and capital.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.

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

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

Invesco V.I. Dividend Growth Fund

	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor.
	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 advisor may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco V.I. Dividend Growth Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K.	Call Options Written — The Fund may write call options. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. Written call options are recorded as a liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized gains and losses on these contracts are included in the Statement of Operations. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
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.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.545%
Over $750 million		0	.42%
Next $1 billion		0	.395%
Over $2 billion		0	.37%

Invesco V.I. Dividend Growth Fund

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

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

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.67% and Series II shares to 0.92% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the six months ended June 30, 2010, the Adviser and MSIA waived advisory fees of $10,132 and $871, respectively.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for period ended June 30, 2010, Invesco was paid $5,039 for accounting and fund administrative services and reimbursed $45,840 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $82,180 to Morgan Stanley Services Company, Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $207 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $60,866 to Morgan Stanley Distributors Inc. based on the annual rate of 0.25% of the Acquired Fund’s average daily net assets of Class Y shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

Invesco V.I. Dividend Growth Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	194,818,257		$	2,498,731	$	—	$	197,316,988
Options written		(4,960	)		—		—		(4,960	)
Total Investments	$	194,813,297		$	2,498,731	$	—	$	197,312,028

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Equity risk/options written		—	$	(4,960	)

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain on
	Statement of Operations
	Options*
Realized Gain
Equity risk	$	21,998
Change in Unrealized Appreciation
Equity risk		21,474
Total	$	43,472

The average value of options outstanding during the period was $7,214.

Open Options Written Contracts
					Number of
Contract	Strike Price		Expiration Date		Contracts		Premium		Value
Apple, Inc.	$	280		July 2010		40	$	21,280	$	3,760
Whirlpool Corp.		110		July 2010		80	$	13,389		1,200
Total							$	34,669	$	4,960

Transactions in options for the six months ended June 30, 2010, were as follows:

	Number of
	Contracts			Premium
Options written, outstanding at beginning of period		58		$	11,657
Options written		498			111,121
Options expired		(303	)		(70,142	)
Options closed		(133	)		(17,967	)
Options written, outstanding at end of period		120		$	34,669

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or

Invesco V.I. Dividend Growth Fund

common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $2,187,444 and securities sales of $13,480,207, which resulted in net realized gains (losses) of $(7,560,205).

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss*
Expiration	Carryforward
December 31, 2010	$	106,916,000
December 31, 2011		48,222,000
December 31, 2016		19,117,000
December 31, 2017		37,214,000
Total capital loss carryforward	$	211,469,000

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

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $83,469,208 and $125,123,060, 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	$	10,650,717
Aggregate unrealized (depreciation) of investment securities		(17,474,363	)
Net unrealized appreciation (depreciation) of investment securities	$	(6,823,646	)
Cost of investments for tax purposes is $204,140,634.

Invesco V.I. Dividend Growth Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Series I Shares
Sold		18,180		$	246,176			40,020		$	445,763
Reinvestment of dividends and distributions		254,971			3,255,974			321,236			3,466,136
Redeemed		(1,278,686	)		(16,967,849	)		(2,833,291	)		(31,203,978	)
Net increase (decrease) — Series I		(1,005,535	)		(13,465,699	)		(2,472,035	)		(27,292,079	)
Series II Shares
Sold		30,034			376,489			64,575			656,925
Reinvestment of dividends and distributions		63,037			803,719			91,572			986,235
Redeemed		(1,045,506	)		(13,950,917	)		(723,234	)		(7,895,015	)
Net increase (decrease) — Series II		(952,435	)		(12,770,709	)		(567,087	)		(6,251,855	)
Net increase (decrease) in share activity		(1,957,970	)	$	(26,236,408	)		(3,039,122	)	$	(33,543,934	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 93% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 11—Financial Highlights

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

	Six months
	ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Series I
Selected Per Share Data:
Net asset value, beginning of period	$	13.13		$	10.78		$	17.01		$	16.53		$	15.09		$	14.48
Income (loss) from investment operations:
Net investment income(a)		0.09			0.20			0.25			0.22			0.21			0.19
Net realized and unrealized gain (loss)		(1.01	)		2.37			(6.41	)		0.48			1.45			0.61
Total income (loss) from investment operations		(0.92	)		2.57			(6.16	)		0.70			1.66			0.80
Less dividends from net investment income		(0.24	)		(0.22	)		(0.07	)		(0.22	)		(0.22	)		(0.19	)
Net asset value, end of period	$	11.97		$	13.13		$	10.78		$	17.01		$	16.53		$	15.09
Total return(b)		(7.13	)%		24.30	%		(36.35	)%		4.22	%		11.09	%		5.61	%
Net assets, end of period, (000’s omitted)	$	163,339		$	192,279		$	184,579		$	368,737		$	471,931		$	582,259
Ratio to Average Net Assets
Total expenses:
With fee waivers and/or expense reimbursements		0.69	%(c)		0.67	%(d)		0.63	%(d)		0.58	%		0.59	%		0.57	%
Without fee waivers and/or expense reimbursements		0.70	%(c)		0.67	%(d)		0.63	%(d)		0.58	%		0.59	%		0.57	%
Net investment income		1.39	%(c)		1.80	%(d)		1.72	%(d)		1.27	%		1.37	%		1.30	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental Data:
Portfolio turnover rate(f)		35	%		44	%		61	%		48	%		114	%		38	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $186,713.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Dividend Growth Fund

NOTE 11—Financial Highlights—(continued)

	Six months
	ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Series II
Selected Per Share Data:
Net asset value, beginning of period	$	13.09		$	10.75		$	16.98		$	16.51		$	15.07		$	14.46
Income (loss) from investment operations:
Net investment income(a)		0.07			0.17			0.21			0.17			0.17			0.15
Net realized and unrealized gain (loss)		(1.00	)		2.36			(6.38	)		0.48			1.45			0.62
Total income (loss) from investment operations		(0.93	)		2.53			(6.17	)		0.65			1.62			0.77
Less dividends from net investment income		(0.20	)		(0.19	)		(0.06	)		(0.18	)		(0.18	)		(0.16	)
Net asset value, end of period	$	11.96		$	13.09		$	10.75		$	16.98		$	16.51		$	15.07
Total return(b)		(7.18	)%		23.94	%		(36.46	)%		3.90	%		10.83	%		5.35	%
Net assets, end of period, (000’s omitted)	$	47,498		$	64,463		$	59,030		$	116,271		$	136,660		$	143,577
Ratio to Average Net Assets
Total expenses:
With fee waivers and/or expense reimbursements		0.94	%(c)		0.92	%(d)		0.88	%(d)		0.83	%		0.84	%		0.82	%
Without fee waivers and/or expense reimbursements		0.95	%(c)		0.92	%(d)		0.88	%(d)		0.83	%		0.84	%		0.82	%
Net investment income		1.14	%(c)		1.55	%(d)		1.47	%(d)		1.02	%		1.12	%		1.05	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental Data:
Portfolio turnover rate(f)		35	%		44	%		61	%		48	%		114	%		38	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $57,413.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 12—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco V.I. Dividend Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. 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.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	928.70	$	3.30	$	1,021.37	$	3.46		0.69	%
Series II		1,000.00		928.20		4.49		1,020.13		4.71		0.94

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

  Effective June 1, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses of Series I and Series II shares to 0.67% and 0.92% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 0.67% and 0.92% for Series I and Series II shares, respectively.

3	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $3.20 and $4.40 for the Series I and Series II shares, respectively.
4	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $3.36 and $4.61 for the Series I and Series II shares, respectively.

Invesco V.I. Dividend Growth Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco V.I. Dividend Growth Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Morgan Stanley retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

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

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

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

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

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

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board

Invesco V.I. Dividend Growth Fund

concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Dividend Growth Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Morgan Stanley Variable Investment Series — Dividend Growth Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		17,337,708		500,364		1,393,829		0

Invesco V.I. Dividend Growth Fund

		Invesco V.I. Dynamics Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

I-VIDYN-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-4.71	%
Series II Shares	-4.76
S&P500 Index▼(Broad Market Index)	-6.64
Russell Midcap Growth Index▼(Style-Specific Index)	-3.31
Lipper VUF Mid-Cap Growth Funds Index▼(Peer Group Index)	-2.34

^▼ Lipper Inc.

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

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

      The Lipper VUF Mid-Cap Growth Funds Index is an unmanaged index considered representative of mid-cap growth variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (8/22/97)	2.53	%
10 Years	-4.49
5 Years	0.09
1 Year	22.27
Series II Shares
10 Years	-4.70	%
5 Years	-0.10
1 Year	22.17

excluding variable product charges, is available at 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2011. See current prospectus for more information.

Series II shares incepted on April 30, 2004. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.31% and 1.46%,

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 Series I and Series II shares was 1.34% and 1.59%, 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.

     Invesco V.I. Dynamics Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level,

Invesco V.I. Dynamics Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.15%
Aerospace & Defense–1.22%
BE Aerospace, Inc.(b)		21,010	$	534,284
Air Freight & Logistics–0.91%
UTI Worldwide, Inc.		32,156		398,091
Apparel Retail–1.76%
American Eagle Outfitters, Inc.		37,758		443,656
Rue21, Inc.(b)		10,755		326,307
				769,963
Apparel, Accessories & Luxury Goods–3.14%
Carter’s, Inc.(b)		15,347		402,859
Coach, Inc.		12,695		464,002
Hanesbrands, Inc.(b)		20,937		503,744
				1,370,605
Application Software–2.19%
Autodesk, Inc.(b)		17,515		426,665
TIBCO Software Inc.(b)		43,749		527,613
				954,278
Asset Management & Custody Banks–1.44%
Affiliated Managers Group, Inc.(b)		10,329		627,693
Auto Parts & Equipment–1.02%
BorgWarner, Inc.(b)		11,867		443,114
Automotive Retail–1.04%
O’Reilly Automotive, Inc.(b)		9,569		455,102
Biotechnology–3.09%
Genzyme Corp.(b)		14,361		729,108
Human Genome Sciences, Inc.(b)		10,142		229,818
United Therapeutics Corp.(b)		8,012		391,065
				1,349,991
Casinos & Gaming–3.03%
International Game Technology		25,582		401,638
Las Vegas Sands Corp.(b)		20,330		450,106
MGM Resorts International(b)		48,802		470,451
				1,322,195
Coal & Consumable Fuels–0.68%
Massey Energy Co.		10,901		298,142
Communications Equipment–1.18%
Finisar Corp.(b)		34,459		513,439
Computer Hardware–1.08%
Teradata Corp.(b)		15,400		469,392
Computer Storage & Peripherals–1.54%
NetApp, Inc.(b)		12,026		448,690
QLogic Corp.(b)		13,404		222,775
				671,465
Construction & Engineering–2.49%
Foster Wheeler AG (Switzerland)(b)		18,494		389,484
Shaw Group Inc. (The)(b)		20,350		696,377
				1,085,861
Construction, Farm Machinery & Heavy Trucks–0.71%
Bucyrus International, Inc.		6,564		311,462
Consumer Finance–1.77%
Discover Financial Services		55,183		771,458
Data Processing & Outsourced Services–1.79%
Alliance Data Systems Corp.(b)		13,123		781,081
Department Stores–2.27%
J.C. Penney Co., Inc.		18,138		389,604
Macy’s, Inc.		33,461		598,952
				988,556
Distributors–0.73%
LKQ Corp.(b)		16,504		318,197
Diversified Support Services–2.14%
Copart, Inc.(b)		13,136		470,400
KAR Auction Services Inc.(b)		37,517		464,086
				934,486
Education Services–2.15%
Grand Canyon Education, Inc.(b)		18,270		428,066
ITT Educational Services, Inc.(b)		6,133		509,162
				937,228
Electrical Components & Equipment–2.45%
Baldor Electric Co.		17,448		629,524
Cooper Industries PLC (Ireland)		9,973		438,812
				1,068,336
Electronic Components–1.05%
Amphenol Corp.–Class A		11,632		456,905
Electronic Manufacturing Services–0.55%
Jabil Circuit, Inc.		18,033		239,839

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

Invesco V.I. Dynamics Fund

	Shares		Value
Environmental & Facilities Services–1.22%
Republic Services, Inc.		17,832	$	530,145
Health Care Equipment–3.95%
American Medical Systems Holdings, Inc.(b)		20,546		454,478
CareFusion Corp.(b)		19,357		439,404
Hologic, Inc.(b)		33,151		461,793
NuVasive, Inc.(b)		10,389		368,394
				1,724,069
Health Care Facilities–0.47%
Brookdale Senior Living Inc.(b)		13,618		204,270
Health Care Services–2.36%
Express Scripts, Inc.(b)		10,103		475,043
Fresenius Medical Care AG & Co. KGaA (Germany)		10,229		553,499
				1,028,542
Hotels, Resorts & Cruise Lines–1.99%
Ctrip.com International, Ltd.–ADR (China)(b)		12,690		476,637
Orient-Express Hotels Ltd.–Class A (Bermuda)(b)		52,623		389,410
				866,047
Household Products–1.35%
Church & Dwight Co., Inc.		3,850		241,433
Energizer Holdings, Inc.(b)		6,953		349,597
				591,030
Human Resource & Employment Services–1.00%
Robert Half International, Inc.		18,471		434,992
Independent Power Producers & Energy Traders–0.70%
KGEN Power Corp. (Acquired 01/12/07; Cost $613,032)(b)(c)		43,788		306,516
Industrial Machinery–2.60%
Flowserve Corp.		6,368		540,006
Kennametal Inc.		23,386		594,706
				1,134,712
Internet Software & Services–2.14%
Akamai Technologies, Inc.(b)		12,130		492,114
Baidu, Inc.–ADR (China)(b)		6,486		441,567
				933,681
IT Consulting & Other Services–1.25%
Cognizant Technology Solutions Corp.–Class A(b)		10,889		545,103
Life & Health Insurance–1.20%
Lincoln National Corp.		21,468		521,458
Life Sciences Tools & Services–2.25%
Life Technologies Corp.(b)		9,836		464,751
Pharmaceutical Product Development, Inc.		20,401		518,389
				983,140
Managed Health Care–1.98%
AMERIGROUP Corp.(b)		12,428		403,661
Aveta, Inc. (Acquired 12/21/05-05/22/06; Cost $1,165,095)(b)(c)		80,000		460,000
				863,661
Multi-Line Insurance–1.48%
Genworth Financial Inc.–Class A(b)		49,560		647,749
Oil & Gas Equipment & Services–1.51%
Key Energy Services, Inc.(b)		71,625		657,518
Oil & Gas Exploration & Production–4.94%
Atlas Energy, Inc.(b)		17,955		486,042
Concho Resources Inc.(b)		7,368		407,671
Continental Resources, Inc.(b)		13,270		592,107
Oasis Petroleum Inc.(b)		18,984		275,268
Plains Exploration & Production Co.(b)		19,050		392,621
				2,153,709
Packaged Foods & Meats–1.20%
Hershey Co. (The)		10,947		524,690
Personal Products–1.11%
Estee Lauder Cos. Inc. (The)–Class A		8,683		483,904
Pharmaceuticals–1.13%
Shire PLC (United Kingdom)		24,342		494,681
Property & Casualty Insurance–0.49%
Assured Guaranty Ltd.		15,972		211,948
Real Estate Services–1.89%
Jones Lang LaSalle Inc.		12,536		822,863
Research & Consulting Services–1.24%
IHS Inc.–Class A(b)		9,235		539,509
Restaurants–1.16%
Texas Roadhouse, Inc.(b)		40,188		507,173
Security & Alarm Services–0.90%
Corrections Corp. of America(b)		20,653		394,059
Semiconductors–4.86%
Altera Corp.		11,184		277,475
Avago Technologies Ltd. (Singapore)(b)		36,208		762,541
Broadcom Corp.–Class A		11,818		389,639
Cavium Networks, Inc.(b)		9,256		242,415

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

Invesco V.I. Dynamics Fund

	Shares		Value
Semiconductors–(continued)
Marvell Technology Group Ltd.(b)		9,719	$	153,171
Xilinx, Inc.		11,622		293,572
				2,118,813
Specialty Chemicals–2.43%
Albemarle Corp.		13,810		548,395
Lubrizol Corp. (The)		6,362		510,932
				1,059,327
Specialty Stores–1.24%
Ulta Salon, Cosmetics & Fragrance, Inc.(b)		22,784		539,069
Systems Software–2.20%
Check Point Software Technologies Ltd. (Israel)(b)		15,674		462,070
Rovi Corp.(b)		13,161		498,933
				961,003
Trading Companies & Distributors–1.17%
Fastenal Co.		10,166		510,232
Trucking–2.08%
J.B. Hunt Transport Services, Inc.		15,526		507,234
Knight Transportation, Inc.		19,779		400,327
				907,561
Wireless Telecommunication Services–1.24%
Crown Castle International Corp.(b)		14,556		542,357
Total Common Stocks & Other Equity Interests (Cost $43,732,750)				42,814,694
Money Market Funds–0.46%
Liquid Assets Portfolio–Institutional Class(d)		99,422		99,422
Premier Portfolio–Institutional Class(d)		99,422		99,422
Total Money Market Funds (Cost $198,844)				198,844
TOTAL INVESTMENTS–98.61% (Cost $43,931,594)				43,013,538
OTHER ASSETS LESS LIABILITIES–1.39%				607,679
NET ASSETS–100.00%			$	43,621,217

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $766,516, which represented 1.76% of the Fund’s Net Assets.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Industrials	20.1	%
Information Technology	19.8
Consumer Discretionary	19.5
Health Care	15.2
Financials	8.3
Energy	7.1
Consumer Staples	3.7
Materials	2.4
Telecommunication Services	1.3
Utilities	0.7
Money Market Funds Plus Other Assets Less Liabilities	1.9

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

Invesco V.I. Dynamics Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $43,732,750)	$	42,814,694
Investments in affiliated money market funds, at value and cost		198,844
Total investments, at value (Cost $43,931,594)		43,013,538
Receivables for:
Investments sold		579,644
Investments sold to affiliates		169,619
Fund shares sold		2,227
Dividends		27,710
Investment for trustee deferred compensation and retirement plans		11,361
Other assets		2,134
Total assets		43,806,233
Liabilities:
Payables for:
Fund shares reacquired		105,466
Accrued fees to affiliates		33,502
Accrued other operating expenses		24,576
Trustee deferred compensation and retirement plans		21,472
Total liabilities		185,016
Net assets applicable to shares outstanding	$	43,621,217
Net assets consist of:
Shares of beneficial interest	$	121,673,840
Undistributed net investment income (loss)		(62,968	)
Undistributed net realized gain (loss)		(77,071,498	)
Unrealized appreciation (depreciation)		(918,157	)
	$	43,621,217
Net Assets:
Series I	$	43,614,407
Series II	$	6,810
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		3,215,757
Series II		508.7
Series I:
Net asset value per share	$	13.56
Series II:
Net asset value per share	$	13.39

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $1,895)	$	278,898
Dividends from affiliated money market funds (includes securities lending income of $2,123)		2,710
Total investment income		281,608
Expenses:
Advisory fees		190,874
Administrative services fees		88,734
Custodian fees		4,511
Distribution fees — Series II		9
Transfer agent fees		8,262
Trustees’ and officers’ fees and benefits		9,689
Professional services fees		18,284
Other		4,395
Total expenses		324,758
Less: Fees waived		(1,018	)
Net expenses		323,740
Net investment income (loss)		(42,132	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $300,066)		4,307,963
Foreign currencies		(2,935	)
		4,305,028
Change in net unrealized appreciation (depreciation) of:
Investment securities		(6,525,042	)
Foreign currencies		(156	)
		(6,525,198	)
Net realized and unrealized gain (loss)		(2,220,170	)
Net increase (decrease) in net assets resulting from operations	$	(2,262,302	)

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

Invesco V.I. Dynamics Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income (loss)	$	(42,132	)	$	(307,133	)
Net realized gain (loss)		4,305,028			(5,129,510	)
Change in net unrealized appreciation (depreciation)		(6,525,198	)		21,019,261
Net increase (decrease) in net assets resulting from operations		(2,262,302	)		15,582,618
Share transactions–net:
Series I		(4,651,781	)		(6,716,157	)
Series II		—			—
Net increase (decrease) in net assets resulting from share transactions		(4,651,781	)		(6,716,157	)
Net increase (decrease) in net assets		(6,914,083	)		8,866,461
Net assets:
Beginning of period		50,535,300			41,668,839
End of period (includes undistributed net investment income (loss) of $(62,968) and $(20,836), respectively)	$	43,621,217		$	50,535,300

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Dynamics Fund, formerly AIM V.I. Dynamics Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity

Invesco V.I. Dynamics Fund

	are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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

Invesco V.I. Dynamics Fund

	results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.73%
Next $500 million		0	.715%
Next $1.5 billion		0	.70%
Next $2.5 billion		0	.685%
Next $2.5 billion		0	.67%
Next $2.5 billion		0	.655%
Over $10 billion		0	.64%

Invesco V.I. Dynamics Fund

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $1,016 and class level expenses of $2 for Series II shares.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $63,939 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Invesco V.I. Dynamics Fund

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	41,198,842	$	1,048,180	$	766,516	$	43,013,538

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $2,283,914 and securities sales of $998,647, which resulted in net realized gains of $300,066.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,355 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	55,297,523
December 31, 2016		15,509,594
December 31, 2017		10,534,011
Total capital loss carryforward	$	81,341,128

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

Invesco V.I. Dynamics Fund

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 June 30, 2010 was $23,238,623 and $28,157,501, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	3,972,283
Aggregate unrealized (depreciation) of investment securities		(4,925,737	)
Net unrealized appreciation (depreciation) of investment securities	$	(953,454	)
Cost of investments for tax purposes is $43,966,992.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		486,677		$	7,435,591			838,528		$	9,769,860
Series II		—			—			—			—
Reacquired:
Series I		(821,758	)		(12,087,372	)		(1,457,783	)		(16,486,017	)
Series II		—			—			—			—
Net increase (decrease) in share activity		(335,081	)	$	(4,651,781	)		(619,255	)	$	(6,716,157	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 71% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Dynamics Fund

NOTE 10—Financial Highlights

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

																			Ratio of			Ratio of
																			expenses			expenses
						Net gains													to average			to average net			Ratio of net
	Net asset		Net			(losses) on													net assets			assets without			investment
	value,		investment			securities (both			Total from			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	14.23	$	(0.01	)(c)	$	(0.66	)	$	(0.67	)	$	13.56		(4.71	)%	$	43,614		1.27	%(d)		1.27	%(d)		(0.16	)%(d)		47	%
Year ended 12/31/09		9.99		(0.08	)(c)		4.32			4.24			14.23		42.44			50,528		1.30			1.33			(0.70	)		97
Year ended 12/31/08		19.24		(0.10	)(c)		(9.15	)		(9.25	)		9.99		(48.08	)		41,664		1.22			1.22			(0.62	)		106
Year ended 12/31/07		17.15		(0.11	)(c)		2.20			2.09			19.24		12.19			122,184		1.11			1.11			(0.58	)		115
Year ended 12/31/06		14.77		(0.09	)		2.47			2.38			17.15		16.11			120,792		1.12			1.13			(0.51	)		142
Year ended 12/31/05		13.34		(0.04	)		1.47			1.43			14.77		10.72			111,655		1.16			1.17			(0.29	)		110
Series II
Six months ended 06/30/10		14.06		(0.03	)(c)		(0.64	)		(0.67	)		13.39		(4.76	)		7		1.45	(d)		1.52	(d)		(0.34	)(d)		47
Year ended 12/31/09		9.88		(0.09	)(c)		4.27			4.18			14.06		42.31			7		1.45			1.58			(0.85	)		97
Year ended 12/31/08		19.06		(0.12	)(c)		(9.06	)		(9.18	)		9.88		(48.16	)		5		1.45			1.47			(0.85	)		106
Year ended 12/31/07		17.04		(0.15	)(c)		2.17			2.02			19.06		11.85			10		1.36			1.36			(0.83	)		115
Year ended 12/31/06		14.71		(0.12	)		2.45			2.33			17.04		15.84			14		1.37			1.38			(0.76	)		142
Year ended 12/31/05		13.32		(0.07	)		1.46			1.39			14.71		10.44			12		1.41			1.42			(0.54	)		110

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $51,659 and $7 for Series I and Series II, respectively.

Invesco V.I. Dynamics Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010, through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	952.90	$	6.15	$	1,018.50	$	6.36		1.27	%
Series II		1,000.00		952.40		7.02		1,017.60		7.25		1.45

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Dynamics Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Dynamics Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Mid-Cap Growth Index. The Board noted that the performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period, the fifth quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board noted that Invesco Advisers indicated that much of the underperformance was concentrated in the second half of 2007 as a result of financial sector stock selection. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund. The Board also noted that the Fund’s effective fee rate was above the effective sub-advisor fee rate of another mutual fund sub-advised by Invesco Advisers.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Dynamics Fund

		Invesco V.I. Financial Services Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

I-VIFSE-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-4.71	%
Series II Shares	-4.95
S&P 500 Index▼(Broad Market Index)	-6.64
S&P 500 Financials Index▼(Style-Specific Index)	-3.67
Lipper VUF Financial Services Funds Category Average▼(Peer Group)	-4.93
▼Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
The S&P 500 Financials Index is an unmanaged index considered representative of the financial market.
The Lipper VUF Financial Services Funds Category Average represents an average of all of the variable insurance underlying funds in the Lipper Financial Services Funds category.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10
Series I Shares
Inception (9/20/99)	-3.17	%
10 Years	-4.40
5 Years	-13.42
1 Year	19.41
Series II Shares
10 Years	-4.63	%
5 Years	-13.63
1 Year	18.96

Series II shares incepted on April 30, 2004. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.29% and 1.46%, 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 Series I and

Series II shares was 1.29% and 1.54%, 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.

     Invesco V.I. Financial Services Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2011. See current prospectus for more information.

Invesco V.I. Financial Services Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Stocks–97.00%
Asset Management & Custody Banks–12.20%
Federated Investors, Inc.–Class B		79,245	$	1,641,164
Legg Mason, Inc.		90,545		2,537,976
State Street Corp.		84,898		2,871,251
				7,050,391
Consumer Finance–14.77%
American Express Co.		79,663		3,162,621
Capital One Financial Corp.		99,104		3,993,891
SLM Corp.(b)		132,598		1,377,694
				8,534,206
Data Processing & Outsourced Services–8.19%
Alliance Data Systems Corp.(b)		25,999		1,547,460
Automatic Data Processing, Inc.		39,762		1,600,818
Heartland Payment Systems, Inc.		61,017		905,492
Western Union Co.		45,416		677,153
				4,730,923
Diversified Banks–1.82%
U.S. Bancorp		47,128		1,053,311
Diversified Capital Markets–2.77%
UBS AG (Switzerland)(b)		121,087		1,600,770
Insurance Brokers–5.62%
Marsh & McLennan Cos., Inc.		92,195		2,078,997
Willis Group Holdings PLC (Ireland)		38,783		1,165,429
				3,244,426
Investment Banking & Brokerage–5.67%
FBR Capital Markets Corp.(b)		369,791		1,231,404
Morgan Stanley		88,192		2,046,936
				3,278,340
Life & Health Insurance–2.85%
Prudential Financial, Inc.		9,384		503,545
StanCorp Financial Group, Inc.		28,131		1,140,431
				1,643,976
Other Diversified Financial Services–15.29%
Bank of America Corp.		206,581		2,968,569
Citigroup Inc.(b)		594,794		2,236,426
JPMorgan Chase & Co.		99,228		3,632,737
				8,837,732
Property & Casualty Insurance–3.67%
Allstate Corp. (The)		8,686		249,549
XL Capital Ltd.–Class A(b)		116,887		1,871,361
				2,120,910
Regional Banks–14.09%
Fifth Third Bancorp		211,875		2,603,944
First Horizon National Corp.(b)		10,707		122,599
First Midwest Bancorp, Inc.		32,764		398,410
SunTrust Banks, Inc.		89,947		2,095,765
Wilmington Trust Corp.		54,704		606,667
Zions Bancorp.		107,398		2,316,575
				8,143,960
Reinsurance–1.83%
Transatlantic Holdings, Inc.		22,020		1,056,079
Specialized Consumer Services–1.74%
H&R Block, Inc.		64,020		1,004,474
Specialized Finance–3.64%
Moody’s Corp.		105,554		2,102,636
Thrifts & Mortgage Finance–2.85%
Hudson City Bancorp, Inc.		88,836		1,087,353
Ocwen Financial Corp.(b)		55,103		561,499
				1,648,852
Total Stocks (Cost $68,635,504)				56,050,986
Money Market Funds–0.97%
Liquid Assets Portfolio–Institutional Class(c)		280,223		280,223
Premier Portfolio–Institutional Class(c)		280,223		280,223
Total Money Market Funds (Cost $560,446)				560,446
TOTAL INVESTMENTS–97.97% (Cost $69,195,950)				56,611,432
OTHER ASSETS LESS LIABILITIES–2.03%				1,175,107
NET ASSETS–100.00%			$	57,786,539

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	The money market fund and the Fund are affiliated by having the same investment adviser.

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

Invesco V.I. Financial Services Fund

Portfolio Composition

By industry, based on Net Assets

as of June 30, 2010

Financials	87	%
Information Technology	8
Consumer Discretionary	2
Money Market Funds Plus Other Assets Less Liabilities	3

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

Invesco V.I. Financial Services Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $68,635,504)	$	56,050,986
Investments in affiliated money market funds, at value and cost		560,446
Total investments, at value (Cost $69,195,950)		56,611,432
Receivables for:
Investments sold		3,728,839
Fund shares sold		70,441
Dividends		54,675
Investment for trustee deferred compensation and retirement plans		11,681
Other assets		2,038
Total assets		60,479,106
Liabilities:
Payables for:
Investments purchased		2,485,864
Fund shares reacquired		108,069
Accrued fees to affiliates		50,485
Accrued other operating expenses		24,081
Trustee deferred compensation and retirement plans		24,068
Total liabilities		2,692,567
Net assets applicable to shares outstanding	$	57,786,539
Net assets consist of:
Shares of beneficial interest	$	111,056,533
Undistributed net investment income		85,188
Undistributed net realized gain (loss)		(40,770,664	)
Unrealized appreciation (depreciation)		(12,584,518	)
	$	57,786,539
Net Assets:
Series I	$	49,648,499
Series II	$	8,138,040
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		10,224,712
Series II		1,695,058
Series I:
Net asset value per share	$	4.86
Series II:
Net asset value per share	$	4.80

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends	$	441,752
Dividends from affiliated money market funds		1,092
Total investment income		442,844
Expenses:
Advisory fees		256,180
Administrative services fees		108,922
Custodian fees		3,189
Distribution fees — Series II		10,655
Transfer agent fees		8,298
Trustees’ and officers’ fees and benefits		10,034
Other		20,263
Total expenses		417,541
Less: Fees waived		(1,937	)
Net expenses		415,604
Net investment income		27,240
Realized and unrealized gain (loss) from:
Net realized gain (loss) from investment securities		(7,065,333	)
Change in net unrealized appreciation of investment securities		3,552,745
Net realized and unrealized gain (loss)		(3,512,588	)
Net increase (decrease) in net assets resulting from operations	$	(3,485,348	)

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

Invesco V.I. Financial Services Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	27,240		$	83,899
Net realized gain (loss)		(7,065,333	)		(7,426,734	)
Change in net unrealized appreciation		3,552,745			22,907,979
Net increase (decrease) in net assets resulting from operations		(3,485,348	)		15,565,144
Distributions to shareholders from net investment income:
Series I		—			(1,643,368	)
Series II		—			(217,704	)
Total distributions from net investment income		—			(1,861,072	)
Share transactions–net:
Series I		(4,981,676	)		6,150,080
Series II		772,692			2,336,966
Net increase (decrease) in net assets resulting from share transactions		(4,208,984	)		8,487,046
Net increase (decrease) in net assets		(7,694,332	)		22,191,118
Net assets:
Beginning of period		65,480,871			43,289,753
End of period (includes undistributed net investment income of $85,188 and $57,948, respectively)	$	57,786,539		$	65,480,871

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Financial Services Fund, formerly AIM V.I. Financial Services Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. Financial Services Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Financial Services Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly.
	The financial services sector is subject to extensive government regulation, which may change frequently. The profitability of businesses in this sector depends heavily on the availability and cost of money and may fluctuate significantly in response to changes to interest rates and general economic conditions.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.75%
Next $250 million		0	.74%
Next $500 million		0	.73%
Next $1.5 billion		0	.72%
Next $2.5 billion		0	.71%
Next $2.5 billion		0	.70%
Next $2.5 billion		0	.69%
Over $10 billion		0	.68%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% 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 items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $1,937.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $84,127 for services provided by insurance companies.

Invesco V.I. Financial Services Fund

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	56,611,432	$	—	$	—	$	56,611,432

NOTE 4—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,371 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (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.

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	22,458,450
December 31, 2017		7,805,524
Total capital loss carryforward	$	30,263,974

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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $13,635,433 and $17,713,713, 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	$	4,517,429
Aggregate unrealized (depreciation) of investment securities		(20,539,838	)
Net unrealized appreciation (depreciation) of investment securities	$	(16,022,409	)
Cost of investments for tax purposes is $72,633,841.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		2,513,712		$	14,058,348			6,175,150		$	25,003,515
Series II		305,373			1,656,063			825,270			3,236,356
Issued as reinvestment of dividends:
Series I		—			—			324,776			1,643,368
Series II		—			—			43,454			217,704
Reacquired:
Series I		(3,578,433	)		(19,040,024	)		(4,778,335	)		(20,496,803	)
Series II		(166,310	)		(883,371	)		(260,764	)		(1,117,094	)
Net increase (decrease) in share activity		(925,658	)	$	(4,208,984	)		2,329,551		$	8,487,046

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 78% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Financial Services Fund

NOTE 9—Financial Highlights

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

																											Ratio of			Ratio of
					Net gains																						expenses			expenses
					(losses) on																						to average			to average net			Ratio of net
	Net asset				securities						Dividends			Distributions													net assets			assets without			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	5.10	$	0.00	$	(0.24	)	$	(0.24	)	$	—		$	—		$	—		$	4.86		(4.71	)%	$	49,648		1.18	%(d)		1.19	%(d)		0.12	%(d)		21	%
Year ended 12/31/09		4.12		0.01		1.12			1.13			(0.15	)		—			(0.15	)		5.10		27.43			57,620		1.27			1.28			0.18			22
Year ended 12/31/08		12.26		0.24		(7.46	)		(7.22	)		(0.24	)		(0.68	)		(0.92	)		4.12		(59.44	)		39,421		1.22			1.23			2.71			47
Year ended 12/31/07		17.41		0.27		(4.04	)		(3.77	)		(0.29	)		(1.09	)		(1.38	)		12.26		(22.22	)		85,144		1.11			1.11			1.61			9
Year ended 12/31/06		15.26		0.23		2.28			2.51			(0.26	)		(0.10	)		(0.36	)		17.41		16.52			146,092		1.12			1.12			1.44			14
Year ended 12/31/05		14.61		0.19		0.66			0.85			(0.20	)		—			(0.20	)		15.26		5.84			141,241		1.12			1.12			1.30			22
Series II
Six months ended 06/30/10		5.05		0.00		(0.25	)		(0.25	)		—			—			—			4.80		(4.95	)		8,138		1.43	(d)		1.44	(d)		(0.13	)(d)		21
Year ended 12/31/09		4.08		0.00		1.11			1.11			(0.14	)		—			(0.14	)		5.05		27.30			7,861		1.44			1.53			0.01			22
Year ended 12/31/08		12.17		0.21		(7.39	)		(7.18	)		(0.23	)		(0.68	)		(0.91	)		4.08		(59.56	)		3,869		1.44			1.48			2.49			47
Year ended 12/31/07		17.33		0.22		(4.00	)		(3.78	)		(0.29	)		(1.09	)		(1.38	)		12.17		(22.39	)		3,688		1.36			1.36			1.36			9
Year ended 12/31/06		15.23		0.20		2.26			2.46			(0.26	)		(0.10	)		(0.36	)		17.33		16.22			1,664		1.37			1.37			1.19			14
Year ended 12/31/05		14.59		0.15		0.67			0.82			(0.18	)		—			(0.18	)		15.23		5.61			11		1.37			1.37			1.05			22

(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. Total returns do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Ratios are based on average daily net assets (000’s omitted) of $60,286 and $8,595 for Series I and Series II shares, respectively.

Invesco V.I. Financial Services Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010, through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	952.90	$	5.71	$	1,018.94	$	5.91		1.18	%
Series II		1,000.00		950.50		6.92		1,017.70		7.15		1.43

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Financial Services Fund

Approval of Investment Advisory and Sub-advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Financial Services Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser. The Board noted that the performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period, the fifth quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was the same as the effective fee rate of the other mutual fund.

  Other than the mutual fund described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Financial Services Fund

		Invesco V.I. Global Dividend Growth Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

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

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

Invesco Distributors, Inc.

MS-VIGDG-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-9.22	%
Series II Shares	-9.31
MSCI World Index▼(Broad Market/Style-Specific Index)	-9.84
▼Lipper Inc.
The MSCI World IndexSM is an unmanaged index considered representative of stocks of developed countries.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10
Series I Shares
Inception (2/23/94)	4.90	%
10 Years	1.09
5 Years	-2.61
1 Year	6.66
Series II Shares
Inception (6/5/00)	0.53	%
10 Years	0.84
5 Years	-2.85
1 Year	6.43

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Global Dividend Growth Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Global Dividend Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.94% and 1.19%, 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 Series I and Series II shares was 1.16% and 1.41%, 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.

     Invesco V.I. Global Dividend Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly.

Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco V.I. Global Dividend Growth Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.4%
Australia–2.7%
Australia & New Zealand Banking Group Ltd.		36,038	$	646,959
Macquarie Group Ltd.		19,272		593,076
Telstra Corp. Ltd.		288,146		784,045
				2,024,080
Austria–0.1%
Telekom Austria AG		2,592		28,812
Bermuda–0.8%
Partnerre Ltd.		8,773		615,338
Brazil–0.5%
Cia Energetica de Minas Gerais (ADR)		7,055		103,497
Petroleo Brasileiro SA (ADR)		4,834		165,903
Vale SA		5,465		133,072
				402,472
Canada–3.8%
Agrium, Inc.		12,661		618,451
EnCana Corp.		16,549		501,188
Intact Financial Corp.		13,821		582,934
Nexen, Inc.		24,603		483,948
Toronto-Dominion Bank (The)		10,357		680,835
				2,867,356
Finland–0.7%
Nokia OYJ (ADR)		66,784		544,290
France–6.1%
BNP Paribas		11,563		617,401
Bouygues SA		24,076		922,186
GDF Suez		34,167		966,675
ICADE		5,737		483,975
Sanofi-Aventis SA		15,934		960,869
Total SA		14,586		649,144
Vallourec SA		166		28,112
				4,628,362
Germany–2.9%
Bayerische Motoren Werke AG		18,649		903,822
Porsche Automobil Holding SE		17,235		733,095
Salzgitter AG		8,799		526,544
				2,163,461
Greece–0.5%
National Bank of Greece SA(a)		34,051		371,007
India–0.1%
State Bank of India		458		45,282
Ireland–0.1%
Dragon Oil PLC(a)		16,427		98,854
Israel–0.4%
Bezeq Israeli Telecommunication Corp. Ltd.		145,502		318,314
Italy–1.1%
Eni SpA		44,900		824,237
Japan–14.4%
Canon, Inc.		18,300		682,280
Daifuku Co., Ltd.		87,490		536,062
FUJIFILM Holdings Corp.		26,500		762,300
Mitsubishi Corp.		30,200		629,302
Mitsubishi UFJ Financial Group, Inc.		267,400		1,212,167
Murata Manufacturing Co., Ltd.		13,300		633,451
Nippon Telegraph & Telephone Corp.		14,600		596,104
Nippon Yusen KK		285,000		1,034,978
Nissan Motor Co., Ltd.(a)		114,600		794,433
NTT DoCoMo, Inc.		459		694,113
Seven & I Holdings Co., Ltd.		32,200		738,806
Sumitomo Chemical Co., Ltd.		242,000		934,353
Sumitomo Osaka Cement Co., Ltd.		179,000		341,232
Takeda Pharmaceutical Co., Ltd.		17,100		731,830
Tokyo Tomin Bank Ltd. (The)		51,800		589,533
				10,910,944
Mexico–0.1%
Desarrolladora Homex SAB de CV (ADR)(a)		3,839		96,896
Netherlands–2.0%
TNT N.V.		33,977		856,367
Unilever N.V.		24,343		663,721
				1,520,088
Norway–0.9%
Statoil ASA		34,997		674,984
Republic of Korea–1.2%
Hyundai Mipo Dockyard		1,259		132,239
Hyundai Mobis		1,036		173,506
LG Electronics, Inc.		829		63,306
Lotte Shopping Co. Ltd.		229		65,584
POSCO		361		137,013
Samsung Electronics Co., Ltd.		290		182,087

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

Invesco V.I. Global Dividend Growth Fund

	Shares		Value
Republic of Korea–(continued)
Shinhan Financial Group Co., Ltd.		2,960	$	109,013
SK Telecom Co. Ltd. (ADR)		4,605		67,832
				930,580
Russia–0.2%
Gazprom OAO		5,407		101,697
Rosneft Oil Co.(a)		12,548		77,370
				179,067
Singapore–1.8%
ComfortDelgro Corp., Ltd.		693,140		717,932
Singapore Post Ltd.		808,000		650,721
				1,368,653
Spain–2.9%
Banco Santander SA		96,777		1,016,934
Iberdrola SA		81,854		459,107
Telefonica SA		39,669		732,549
				2,208,590
Switzerland–5.4%
ACE Ltd.		17,300		890,604
Holcim Ltd.		14,451		967,308
Kuoni Reisen Holding AG (Registered Shares)		1,326		370,474
Swisscom AG (Registered Shares)		2,743		929,287
Zurich Financial Services AG		4,035		885,727
				4,043,400
Taiwan–0.7%
Acer, Inc.		31,000		71,892
AU Optronics Corp. (ADR)		9,933		88,205
HTC Corp.		12,000		159,206
Powertech Technology, Inc.		50,000		138,590
U-Ming Marine Transport Corp.		22,000		41,952
				499,845
United Kingdom–10.4%
BHP Billiton PLC		49,837		1,289,623
BP PLC		123,318		592,354
GlaxoSmithKline PLC		42,668		723,101
Imperial Tobacco Group PLC		54,133		1,509,350
Informa PLC		83,940		441,762
National Grid PLC		90,463		666,529
Royal Dutch Shell PLC (Class A)		65,821		1,662,206
Vodafone Group PLC		482,580		1,000,011
				7,884,936
United States–36.6%
3M Co.		15,798		1,247,884
Aflac, Inc.		16,957		723,555
Allete, Inc.		16,266		556,948
Apache Corp.		7,988		672,510
Apollo Group, Inc. (Class A)(a)		11,664		495,370
Archer-Daniels-Midland Co.		25,828		666,879
Avon Products, Inc.		22,871		606,082
Bank of America Corp.		59,940		861,338
Bank of New York Mellon Corp. (The)		34,802		859,261
Best Buy Co., Inc.		16,909		572,539
Chevron Corp.		20,306		1,377,965
Coach, Inc.		28,556		1,043,722
ConocoPhillips		22,414		1,100,303
DaVita, Inc.(a)		13,216		825,207
Diebold, Inc.		23,158		631,055
DTE Energy Co.		20,421		931,402
Energen Corp.		17,840		790,847
GameStop Corp. (Class A)(a)		40,547		761,878
International Business Machines Corp.		4,982		615,177
Johnson & Johnson		24,113		1,424,114
Kroger Co. (The)		52,081		1,025,475
Merck & Co., Inc.		41,919		1,465,907
Microsoft Corp.		36,089		830,408
Morgan Stanley		36,316		842,894
Oracle Corp.		59,163		1,269,638
Pfizer, Inc.		49,283		702,776
Philip Morris International, Inc.		14,694		673,573
Potlatch Corp.		12,655		452,163
Sonoco Products Co.		9,911		302,087
Stryker Corp.		14,294		715,558
Valero Energy Corp.		42,164		758,109
WellPoint, Inc.(a)		25,974		1,270,908
WR Berkley Corp.		23,754		628,531
				27,702,063
Total Common Stocks & Other Equity Interests (Cost $72,376,760)				72,951,911
Money Market Funds–2.6%
Liquid Assets Portfolio–Institutional Class(b)		986,436		986,436
Premier Portfolio–Institutional Class(b)		986,436		986,436
Total Money Market funds (Cost $1,972,872)				1,972,872
TOTAL INVESTMENTS (Cost $74,349,632)–99.0%				74,924,783
OTHER ASSETS LESS LIABILITIES–1.0%				777,301
NET ASSETS–100.0%			$	75,702,084

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

Invesco V.I. Global Dividend Growth 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 June 30, 2010

Financials	18.2	%
Energy	12.9
Health Care	11.7
Industrials	8.9
Consumer Discretionary	8.6
Information Technology	8.7
Consumer Staples	7.8
Telecommunication Services	6.8
Materials	6.9
Utilities	5.9
Money Market Funds Plus Other Assets Less Liabilities	3.6

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

Invesco V.I. Global Dividend Growth Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $72,376,760)	$	72,951,911
Investments in affiliated money market funds, at value and cost		1,972,872
Total investments, at value (Cost $74,349,632)		74,924,783
Foreign currencies, at value (Cost $398,874)		296,528
Receivable for:
Investments sold		55,462,167
Dividends		248,277
Fund shares sold		27,857
Other Assets		7,881
Total assets		130,967,493
Liabilities:
Payable for:
Investments purchased		55,137,863
Fund shares reacquired		62,480
Accrued fees to affiliates		28,905
Accrued other operating expenses		32,667
Trustee retirement		3,494
Total liabilities		55,265,409
Net assets applicable to shares outstanding	$	75,702,084
Net assets consist of:
Shares of beneficial interest	$	89,991,443
Undistributed net investment income		931,582
Undistributed net realized gain (loss)		(15,697,494	)
Unrealized appreciation		476,553
	$	75,702,084
Net Assets:
Series I	$	50,333,997
Series II	$	25,368,087
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		6,634,515
Series II		3,371,075
Series I:
Net asset value per share	$	7.59
Series II:
Net asset value per share	$	7.53

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment Income:
Dividends (net of $109,663 foreign withholding tax)	$	1,785,369
Dividends from affiliated money market funds		905
Income from securities loaned		12,705
Total investment income		1,798,979
Expenses
Advisory fees		286,937
Administrative services fees		49,414
Custodian fees		21,714
Distribution fees-Series II		35,727
Transfer agent fees		250
Trustees’ and officers’ fees and benefits		2,457
Shareholder reports and notices		23,971
Other		26,251
Total expenses		446,721
Less: Fees waived		(4,370	)
Net expenses		442,351
Net investment income		1,356,628
Realized and unrealized gain (loss) from:
Realized Gain (Loss) on:
Investment securities		3,408,488
Foreign currencies		(143,897	)
Foreign currency contracts		1,570,387
		4,834,978
Change in net unrealized appreciation (depreciation) of:
Investment securities		(13,570,110	)
Foreign currencies		(94,629	)
Foreign currency contracts		(421,445	)
		(14,086,184	)
Net realized and unrealized gain (loss)		(9,251,206	)
Net increase (decrease) in net assets resulting from operations	$	(7,894,578	)

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

Invesco V.I. Global Dividend Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	For the six			For the
	months ended			year ended
	June 30, 2010			December 31, 2009
Operations:
Net investment income	$	1,356,628		$	3,048,064
Net realized gain		4,834,978			3,073,323
Change in net unrealized appreciation (depreciation)		(14,086,184	)		6,730,620
Net increase (decrease) in net assets resulting from operations		(7,894,578	)		12,852,007
Distributions to shareholders from net investment income:
Series I		(1,056,638	)		(2,992,150	)
Series II		(465,368	)		(1,372,445	)
Total Dividends		(1,522,006	)		(4,364,595	)
Net increase (decrease) from transactions in shares of beneficial interest		(5,641,602	)		(9,583,791	)
Net increase (decrease) in net assets		(15,058,186	)		(1,096,379	)
Net Assets:
Beginning of period		90,760,270			91,856,649
End of period (includes undistributed net investment income of $931,582 and $1,096,960, respectively)	$	75,702,084		$	90,760,270

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Dividend Growth Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Morgan Stanley Variable Investment Series Global Dividend Growth Portfolio (the “Acquired Fund”), an investment portfolio of Morgan Stanley Variable Investment Series. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class X and Class Y shares received Series I and Series II shares, respectively, of the Fund.

  Information for the Acquired Fund’s — Class X and Class Y shares prior to the Reorganization are included with Series I and Series II shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to provide reasonable current income and long-term growth of income and capital.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.

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

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

Invesco V.I. Global Dividend Growth Fund

	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco V.I. Global Dividend Growth Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $1 billion		0	.67%
Next $500 million		0	.645%
Next $1 billion		0	.62%
Next $1 billion		0	.595%
Next $1 billion		0	.57%
Over $4.5 billion		0	.545%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

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

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.94% and Series II shares to 1.19% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the

Invesco V.I. Global Dividend Growth Fund

following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the six months ended June 30, 2010, the Adviser and MSIA waived advisory fees of $3,631 and $739, respectively.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $16,229 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $29,075 to Morgan Stanley Services Company, Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $207 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $30,425 to Morgan Stanley Distributors Inc. based on the annual rate of 0.25% of the Acquired Fund’s average daily net assets of Class Y shares. For the six months ended June 30, 2010, expenses incurred under the Plans are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Invesco V.I. Global Dividend Growth Fund

	Level 1*		Level 2*		Level 3		Total
Australia	$	2,024,080	$	—	$	—	$	2,024,080
Austria		—		28,812		—		28,812
Bermuda		615,338		—		—		615,338
Brazil		402,472		—		—		402,472
Canada		2,867,356		—		—		2,867,356
Finland		544,290		—		—		544,290
France		1,883,055		2,745,307		—		4,628,362
Germany		2,163,461		—		—		2,163,461
Greece		371,007		—		—		371,007
India		45,282		—		—		45,282
Ireland		98,854		—		—		98,854
Israel		—		318,314		—		318,314
Italy		—		824,237		—		824,237
Japan		8,761,837		2,149,107		—		10,910,944
Mexico		96,896		—		—		96,896
Netherlands		856,367		663,721		—		1,520,088
Norway		674,984		—		—		674,984
Republic of Korea		930,580		—		—		930,580
Russia		—		179,067		—		179,067
Singapore		—		1,368,653		—		1,368,653
Spain		1,191,656		1,016,934		—		2,208,590
Switzerland		3,672,926		370,474		—		4,043,400
Taiwan		427,953		71,892		—		499,845
United Kingdom		2,768,232		5,116,704		—		7,884,936
United States		29,674,935		—		—		29,674,935
	$	60,071,562	$	14,853,221	$	—	$	74,924,783

*  Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

As of June 30, 2010, the Fund did not hold any derivative instruments.

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain (Loss) on
	Statement of Operations
	Foreign Currency Contracts*
Realized Gain
Currency risk	$	1,570,387
Change in Unrealized Appreciation (Depreciation)
Currency risk	$	(421,445	)
Total	$	1,148,942

*  The average value of foreign currency contracts outstanding during the period was $13,435,968.

Invesco V.I. Global Dividend Growth Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward (000’s)*
2016	$	3,068
2017		16,976
Total capital loss carryforward	$	20,044

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $88,473,819 and $90,912,417, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	1,791,932
Aggregate unrealized (depreciation) of investment securities		(1,623,122	)
Net unrealized appreciation of investment securities	$	168,810
Cost of investments for tax purposes is $74,755,973.

Invesco V.I. Global Dividend Growth Fund

NOTE 9—Share Information

	Summary of Share Activity
	For the six months ended						For the year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Series I
Sold		31,466		$	260,977			39,028		$	300,376
Reinvestment of dividends and distributions		134,262			1,056,638			412,142			2,992,150
Redeemed		(623,599	)		(5,226,498	)		(1,414,208	)		(10,681,016	)
Net increase (decrease) — Series I		(457,871	)		(3,908,883	)		(963,038	)		(7,388,490	)
Series II
Sold		12,807			105,596			120,372			854,130
Reinvestment of dividends and distributions		59,586			465,368			190,617			1,372,445
Redeemed		(278,389	)		(2,303,683	)		(590,289	)		(4,421,876	)
Net increase (decrease) — Series II		(205,996	)		(1,732,719	)		(279,300	)		(2,195,301	)
Net increase (decrease) in share activity		(663,867	)	$	(5,641,602	)		(1,242,338	)	$	(9,583,791	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 94% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Global Dividend Growth Fund

NOTE 10—Financial Highlights

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

	Series I
	For the six months
	ended June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Selected per share data:
Net asset value, beginning of period	$	8.53		$	7.74		$	16.87		$	17.81		$	15.12		$	14.46
Income (loss) from investment operations:
Net investment income(a)		0.14			0.28			0.00			0.31			0.29			0.27
Net realized and unrealized gain (loss)		(0.92	)		0.92			(5.94	)		1.01			2.94			0.63
Total income (loss) from investment operations		(0.78	)		1.20			(5.94	)		1.32			3.23			0.90
Less dividends and distributions from:
Net investment income		(0.16	)		(0.41	)		(0.40	)		(0.36	)		(0.33	)		(0.24	)
Net realized gain		—			—			(2.79	)		(1.90	)		(0.21	)		—
Total dividends and distributions		(0.16	)		(0.41	)		(3.19	)		(2.26	)		(0.54	)		(0.24	)
Net asset value, end of period	$	7.59		$	8.53		$	7.74		$	16.87		$	17.81		$	15.12
Total return(b)		(9.22	)%		16.44	%		(40.94	)%		7.02	%		21.94	%		6.34	%
Net assets, end of period, (000’s)	$	50,334		$	60,521		$	62,333		$	136,495		$	165,864		$	181,475
Ratios to average net assets:
With fee waivers and/or expense reimbursements		0.95	%(c)		0.93	%(d)		0.86	%(d)		0.82	%		0.83	%		0.82	%
Without fee waivers and/or expense reimbursements		0.96	%(c)
Net investment income		3.25	%(c)		3.64	%(d)		3.04	%(d)		1.72	%		1.80	%		1.88	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental data:
Portfolio turnover(f)		106	%		79	%		88	%		38	%		24	%		20	%

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $57,447.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Global Dividend Growth Fund

NOTE 10—Financial Highlights—(continued)

	Series II
	For the six months
	ended June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Selected per share data:
Net asset value, beginning of period	$	8.45		$	7.66		$	16.70		$	17.66		$	15.00		$	14.34
Income (loss) from investment operations:
Net investment income(a)		0.12			0.26			0.00			0.26			0.25			0.23
Net realized and unrealized gain (loss)		(0.90	)		0.91			(5.90	)		1.00			2.91			0.64
Total income (loss) from investment operations		(0.78	)		1.17			(5.90	)		1.26			3.16			0.87
Less dividends and distributions from:
Net investment income		(0.14	)		(0.38	)		(0.35	)		(0.32	)		(0.29	)		(0.21	)
Net realized gain		—			—			(2.79	)		(1.90	)		(0.21	)		—
Total dividends and distributions		(0.14	)		(0.38	)		(3.14	)		(2.22	)		(0.50	)		(0.21	)
Net asset value, end of period	$	7.53		$	8.45		$	7.66		$	16.70		$	17.66		$	15.00
Total return(b)		(9.31	)%		16.11	%		(41.09	)%		6.77	%		21.60	%		6.17	%
Net assets, end of period, (000’s)	$	25,368		$	30,239		$	29,524		$	65,364		$	74,749		$	71,123
Ratios to average net assets:
With fee waivers and/or expense reimbursements		1.20	%(c)		1.18	%(d)		1.11	%(d)		1.07	%		1.08	%		1.07	%
Without fee waivers and/or expense reimbursements		1.21	%(c)
Net investment income		3.00	%(c)		3.39	%(d)		2.79	%(d)		1.47	%		1.55	%		1.63	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental data:
Portfolio turnover(f)		106	%		79	%		88	%		38	%		24	%		20	%

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $28,916.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Global Dividend Growth Fund

NOTE 11—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco V.I. Global Dividend Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. 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.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	907.80	$	4.49	$	1,020.08	$	4.76		0.95	%
Series II		1,000.00		906.90		5.67		1,018.84		6.01		1.20

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. Effective June 1, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit Total Annual Fund Operating Expense of Series I, and Series II shares to 0.94% and 1.19% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 0.94% and 1.19% for Series I and Series II shares, respectively.
3	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $4.45 and $5.63 for Series I and Series II shares, respectively.
4	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $4.71 and $5.96 for Series I and Series II shares, respectively.

Invesco V.I. Global Dividend Growth Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. And Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco V.I. Global Dividend Growth Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund, (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund, and (iii) a Temporary Investment Services Agreement (TISA) by and among Invesco Advisers and Morgan Stanley Investment Management Limited (the MS Sub-Adviser) for the possible provision of temporary investment services to the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers, the Affiliated Sub-Advisers and the MS Sub-Adviser under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Morgan Stanley retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

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

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

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

  The Board considered that the TISA is necessary because certain portfolio managers cannot be migrated to the Invesco Advisers front-end compliance system immediately upon reorganization with the Acquired Fund. The TISA permits those portfolio managers, who will remain employed by the MS Sub-Adviser for a temporary period following the reorganization with the Acquired Fund, to continue to be primarily responsible for the day-to-day management of the Fund. The Board considered that the MS Sub-Adviser had managed the Acquired Fund and that the board of the Acquired Fund had approved an investment advisory agreement with the MS Sub-Adviser. The Board concluded that the nature, extent and quality of the services to be provided by the MS Sub-Adviser are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

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

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rates, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates

Invesco V.I. Global Dividend Growth Fund

provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations. Given the temporary nature of the TISA, the Board did not consider the profitability of the MS Sub-Adviser.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Global Dividend Growth Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Morgan Stanley Variable Investment Series — Global Dividend Growth Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		9,313,476		571,294		624,113		0

Invesco V.I. Global Dividend Growth Fund

		Invesco V.I. Global Health Care Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

I-VIGHC-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-7.56	%
Series II Shares	-7.69
MSCI World Index▼(Broad Market Index)	-9.84
MSCI World Health Care Index▼(Style-Specific Index)	-9.57
Lipper VUF Health/Biotechnology Funds Category Average▼(Peer Group)	-6.07
▼Lipper Inc.
The MSCI World IndexSM is an unmanaged index considered representative of stocks of developed countries.
The MSCI World Health Care Index is an unmanaged index considered representative of health care stocks of developed countries.
The Lipper VUF Health/Biotechnology Funds Category Average represents an average of all of the variable insurance underlying funds in the Lipper Health/ Biotechnology Funds category.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10
Series I Shares
Inception (5/21/97)	5.83	%
10 Years	0.67
5 Years	1.65
1 Year	8.69
Series II Shares
10 Years	0.41	%
5 Years	1.39
1 Year	8.40

Series II shares incepted on April 30, 2004. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.15% and 1.40%, 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.

     Invesco V.I. Global Health Care Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. Global Health Care Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.57%
Biotechnology–22.14%
AMAG Pharmaceuticals, Inc.(b)		19,472	$	668,863
Amgen Inc.(b)		110,398		5,806,935
Biogen Idec Inc.(b)		45,966		2,181,087
BioMarin Pharmaceutical Inc.(b)		124,174		2,354,339
Celgene Corp.(b)		40,563		2,061,412
Genzyme Corp.(b)		76,240		3,870,705
Gilead Sciences, Inc.(b)		199,218		6,829,193
Human Genome Sciences, Inc.(b)		57,275		1,297,851
Incyte Corp.(b)		63,690		705,048
Myriad Genetics, Inc.(b)		52,578		786,041
Pharmasset, Inc.(b)		19,764		540,348
Savient Pharmaceuticals Inc.(b)		103,539		1,304,591
United Therapeutics Corp.(b)		44,944		2,193,717
Vertex Pharmaceuticals Inc.(b)		42,420		1,395,618
				31,995,748
Drug Retail–5.62%
CVS Caremark Corp.		208,709		6,119,348
Drogasil S.A. (Brazil)		104,820		2,003,263
				8,122,611
Health Care Distributors–1.95%
McKesson Corp.		41,892		2,813,467
Health Care Equipment–12.86%
Baxter International Inc.		69,269		2,815,092
Boston Scientific Corp.(b)		467,836		2,713,449
CareFusion Corp.(b)		61,075		1,386,402
Covidien PLC (Ireland)		53,507		2,149,911
Dexcom Inc.(b)		48,428		559,828
Hologic, Inc.(b)		104,356		1,453,679
Hospira, Inc.(b)		44,422		2,552,044
St. Jude Medical, Inc.(b)		41,755		1,506,938
Wright Medical Group, Inc.(b)		67,893		1,127,703
Zimmer Holdings, Inc.(b)		43,003		2,324,312
				18,589,358
Health Care Facilities–2.69%
Assisted Living Concepts Inc.–Class A(b)		31,460		930,901
Rhoen-Klinikum AG (Germany)		133,140		2,957,809
				3,888,710
Health Care Services–8.83%
DaVita, Inc.(b)		56,085		3,501,948
Express Scripts, Inc.(b)		75,836		3,565,809
Medco Health Solutions, Inc.(b)		39,089		2,153,022
Omnicare, Inc.		57,542		1,363,745
Quest Diagnostics Inc.		43,855		2,182,663
				12,767,187
Health Care Supplies–2.56%
Alcon, Inc.		16,285		2,413,274
Immucor, Inc.(b)		67,457		1,285,056
				3,698,330
Health Care Technology–0.70%
Allscripts-Misys Healthcare Solutions, Inc.(b)(c)		62,810		1,011,241
Life & Health Insurance–1.19%
Amil Participacoes S.A. (Brazil)(d)		211,100		1,713,170
Life Sciences Tools & Services–9.66%
Gerresheimer AG (Germany)(b)		74,157		2,360,959
Life Technologies Corp.(b)		76,098		3,595,630
Pharmaceutical Product Development, Inc.		78,722		2,000,326
Thermo Fisher Scientific, Inc.(b)		122,418		6,004,603
				13,961,518
Managed Health Care–9.97%
Aetna Inc.		125,839		3,319,633
AMERIGROUP Corp.(b)		44,144		1,433,797
Aveta, Inc. (Acquired 12/21/05; Cost $1,655,802)(b)(d)		122,652		705,249
CIGNA Corp.		40,036		1,243,518
Health Net Inc.(b)		89,937		2,191,765
UnitedHealth Group Inc.		74,099		2,104,411
WellPoint Inc.(b)		69,819		3,416,244
				14,414,617
Pharmaceuticals–19.40%
Abbott Laboratories		105,877		4,952,926
Allergan, Inc.		40,758		2,374,561
Bayer AG (Germany)		22,993		1,283,158
EastPharma Ltd.–GDR (Turkey)(d)		114,132		159,785
Hikma Pharmaceuticals PLC (United Kingdom)		119,052		1,261,937
Ipsen S.A. (France)		32,981		1,008,476
Johnson & Johnson		65,483		3,867,426
Novartis AG–ADR (Switzerland)		52,410		2,532,451
Pharmstandard–GDR (Russia)(d)		23,450		511,552
Roche Holding AG (Switzerland)		41,608		5,712,966

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

Invesco V.I. Global Health Care Fund

	Shares		Value
Pharmaceuticals–(continued)
Shire PLC–ADR (United Kingdom)		43,278	$	2,656,404
Teva Pharmaceutical Industries Ltd.–ADR (Israel)		33,100		1,720,869
				28,042,511
Total Common Stocks & Other Equity Interests (Cost $146,868,616)				141,018,468
Money Market Funds–2.52%
Liquid Assets Portfolio–Institutional Class(e)		1,820,737		1,820,737
Premier Portfolio–Institutional Class(e)		1,820,737		1,820,737
Total Money Market Funds (Cost $3,641,474)				3,641,474
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.09% (Cost $150,510,090)				144,659,942
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–0.18%
Liquid Assets Portfolio–Institutional Class (Cost $261,405)(e)(f)		261,405		261,405
TOTAL INVESTMENTS–100.27% (Cost $150,771,495)				144,921,347
OTHER ASSETS LESS LIABILITIES–(0.27)%				(386,932	)
NET ASSETS–100.00%			$	144,534,415

Investment Abbreviations:

ADR	– American Depositary Receipt
GDR	– Global Depositary Receipt

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of this security was out on loan at June 30, 2010.
(d)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $3,089,756, which represented 2.14% of the Fund’s Net Assets.
(e)	The money market fund and the Fund are affiliated by having the same investment adviser.
(f)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J.

Portfolio Composition

By country, based on Net Assets

as of June 30, 2010

United States	78.2	%
Switzerland	5.7
Germany	4.6
United Kingdom	2.7
Brazil	2.6
Countries Each Less Than 2.0% of Portfolio	3.8
Money Market Funds Plus Other Assets Less Liabilities	2.4

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

Invesco V.I. Global Health Care Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $146,868,616)*	$	141,018,468
Investments in affiliated money market funds, at value and cost		3,902,879
Total investments, at value (Cost $150,771,495)		144,921,347
Receivables for:
Fund shares sold		73,932
Dividends		98,591
Foreign currency contracts outstanding		57,157
Investment for trustee deferred compensation and retirement plans		14,695
Other assets		1,884
Total assets		145,167,606
Liabilities:
Payables for:
Fund shares reacquired		176,572
Collateral upon return of securities loaned		261,405
Accrued fees to affiliates		118,270
Accrued other operating expenses		36,161
Trustee deferred compensation and retirement plans		40,783
Total liabilities		633,191
Net assets applicable to shares outstanding	$	144,534,415
Net assets consist of:
Shares of beneficial interest	$	173,197,967
Undistributed net investment income		88,863
Undistributed net realized gain (loss)		(22,942,193	)
Unrealized appreciation (depreciation)		(5,810,222	)
	$	144,534,415
Net Assets:
Series I	$	119,568,131
Series II	$	24,966,284
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		8,150,998
Series II		1,733,977
Series I:
Net asset value per share	$	14.67
Series II:
Net asset value per share	$	14.40

*  At June 30, 2010, securities with an aggregate value of $252,770 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $95,904)	$	1,060,548
Dividends from affiliated money market funds (includes securities lending income of $6,472)		10,994
Total investment income		1,071,542
Expenses:
Advisory fees		616,081
Administrative services fees		226,736
Custodian fees		10,270
Distribution fees — Series II		33,986
Transfer agent fees		19,768
Trustees’ and officers’ fees and benefits		11,524
Other		32,397
Total expenses		950,762
Less: Fees waived		(7,447	)
Net expenses		943,315
Net investment income		128,227
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		4,654,189
Foreign currencies		732
Foreign currency contracts		867,657
		5,522,578
Change in net unrealized appreciation (depreciation) of:
Investment securities		(17,692,463	)
Foreign currencies		(5,906	)
Foreign currency contracts		(170,934	)
		(17,869,303	)
Net realized and unrealized gain (loss)		(12,346,725	)
Net increase (decrease) in net assets resulting from operations	$	(12,218,498	)

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

Invesco V.I. Global Health Care Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income (loss)	$	128,227		$	(131,082	)
Net realized gain (loss)		5,522,578			(14,305,912	)
Change in net unrealized appreciation (depreciation)		(17,869,303	)		50,968,906
Net increase (decrease) in net assets resulting from operations		(12,218,498	)		36,531,912
Distributions to shareholders from net investment income:
Series I		—			(447,208	)
Series II		—			(30,590	)
Total distributions from net investment income		—			(477,798	)
Share transactions-net:
Series I		(13,962,873	)		(15,173,536	)
Series II		346,242			1,039,283
Net increase (decrease) in net assets resulting from share transactions		(13,616,631	)		(14,134,253	)
Net increase (decrease) in net assets		(25,835,129	)		21,919,861
Net assets:
Beginning of period		170,369,544			148,449,683
End of period (includes undistributed net investment income (loss) of $88,863 and $(39,364), respectively)	$	144,534,415		$	170,369,544

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Health Care Fund, formerly AIM V.I. Global Health Care Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. Global Health Care Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE.
	Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Global Health Care Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Other Risks — The Fund may invest a large percentage of assets in securities of a limited number of companies, such that each investment may have a greater effect on the Fund’s overall performance, and any change in the value of those securities could significantly affect the value of your investment in the Fund.
	The Fund has invested in non-publicly traded companies, some of which are in the startup or development stages. These investments are inherently risky, as the market for the technologies or products these companies are developing are typically in the early stages and may never materialize. The Fund could lose its entire investment in these companies. These investments are valued at fair value as determined in good faith in accordance with procedures approved by the Board of Trustees. Investments in privately held venture capital securities are illiquid.
J.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
K.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
L.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Global Health Care 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 Net Assets	Rate
First $250 million		0	.75%
Next $250 million		0	.74%
Next $500 million		0	.73%
Next $1.5 billion		0	.72%
Next $2.5 billion		0	.71%
Next $2.5 billion		0	.70%
Next $2.5 billion		0	.69%
Over $10 billion		0	.68%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets, through at least. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $7,447.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $201,942 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation

Invesco V.I. Global Health Care Fund

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 June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Biotechnology	$	31,995,748	$	—	$	—	$	31,995,748
Drug Retail		8,122,611		—		—		8,122,611
Health Care Distributors		2,813,467		—		—		2,813,467
Health Care Equipment		18,589,358		—		—		18,589,358
Health Care Facilities		930,901		2,957,809		—		3,888,710
Health Care Services		12,767,187		—		—		12,767,187
Health Care Supplies		3,698,330		—		—		3,698,330
Health Care Technology		1,011,241		—		—		1,011,241
Life & Health Insurance		1,713,170		—		—		1,713,170
Life Sciences Tools & Services		11,600,559		2,360,959		—		13,961,518
Managed Health Care		13,709,368		—		705,249		14,414,617
Money Market Funds		3,902,879		—		—		3,902,879
Pharmaceuticals		19,272,898		8,769,613		—		28,042,511
	$	130,127,717	$	14,088,381	$	705,249	$	144,921,347
Foreign Currency Contracts*		—		40,003		—		40,003
Total Investments	$	130,127,717	$	14,128,384	$	705,249	$	144,961,350

*  Unrealized appreciation.

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Currency risk
Foreign Currency Contracts(a)	$	115,967	$	(75,964	)

^(a) Values are disclosed on the Statement of Assets and Liabilities under Foreign currency contracts outstanding.

Invesco V.I. Global Health Care Fund

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain (Loss) on
	Statement of Operations
	Foreign Currency
	Contracts*
Realized Gain
Currency risk	$	867,657
Change in Unrealized Appreciation (Depreciation)
Currency risk	$	(170,934	)
Total	$	696,723

*  The average value of foreign currency contracts outstanding during the period was $6,081,645.

Open Foreign Currency Contracts
							Unrealized
Settlement	Contract to						Appreciation
Date	Deliver		Receive		Value		(Depreciation)
08/10/10	CHF	2,931,600	USD	2,645,538	$	2,721,502	$	(75,964	)
08/10/10	EUR	2,286,200	USD	2,912,710		2,796,743		115,967
Total open foreign currency contracts							$	40,003
Closed Foreign Currency Contracts
Closed	Contract to						Realized
Date	Deliver		Receive		Value		Gain
05/25/10	USD	428,760	EUR	350,000	$	445,914	$	17,154
Total foreign currency contracts							$	57,157

Currency Abbreviations:
CHF	– Swiss Fran
EUR	– Euro
USD	– U.S. Dollar

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $352,186.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,478 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco V.I. Global Health Care Fund

NOTE 8—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	12,235,817
December 31, 2017		15,956,934
Total capital loss carryforward	$	28,192,751

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

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $16,186,944 and $22,905,487, 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	$	12,991,323
Aggregate unrealized (depreciation) of investment securities		(18,902,554	)
Net unrealized appreciation (depreciation) of investment securities	$	(5,911,231	)
Cost of investments for tax purposes is $150,832,578.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		871,590		$	14,177,005			1,972,429		$	27,454,826
Series II		160,817			2,538,704			341,255			4,410,301
Issued as reinvestment of dividends:
Series I		—			—			28,759			447,208
Series II		—			—			2,002			30,590
Reacquired:
Series I		(1,772,477	)		(28,139,878	)		(3,260,825	)		(43,075,570	)
Series II		(140,165	)		(2,192,462	)		(252,057	)		(3,401,608	)
Net increase (decrease) in share activity		(880,235	)	$	(13,616,631	)		(1,168,437	)	$	(14,134,253	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 69% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Global Health Care Fund

NOTE 11—Financial Highlights

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

																												Ratio of			Ratio of
						Net gains																						expenses			expenses
						(losses)																						to average			to average net			Ratio of net
	Net asset		Net			on securities						Dividends			Distributions													net assets			assets without			investment
	value,		investment			(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			income			gains			Distributions			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	15.87	$	0.02	(c)	$	(1.22	)	$	(1.20	)	$	—		$	—		$	—		$	14.67		(7.56	)%	$	119,568		1.11	%(d)		1.12	%(d)		0.20	%(d)		10	%
Year ended 12/31/09		12.47		(0.01	)(c)		3.46			3.45			(0.05	)		—			(0.05	)		15.87		27.67			143,648		1.13			1.14			(0.05	)		45
Year ended 12/31/08		24.06		0.07	(c)(e)		(7.16	)		(7.09	)		—			(4.50	)		(4.50	)		12.47		(28.62	)		128,563		1.12			1.13			0.34	(e)		67
Year ended 12/31/07		21.51		(0.01	)(c)		2.56			2.55			—			—			—			24.06		11.85			223,448		1.06			1.07			(0.06	)		66
Year ended 12/31/06		20.44		(0.04	)(c)		1.11			1.07			—			—			—			21.51		5.24			235,509		1.10			1.10			(0.19	)		79
Year ended 12/31/05		18.90		(0.06	)		1.60			1.54			—			—			—			20.44		8.15			257,736		1.08			1.09			(0.24	)		82
Series II
Six months ended 06/30/10		15.60		0.00	(c)		(1.20	)		(1.20	)		—			—			—			14.40		(7.69	)		24,966		1.36	(d)		1.37	(d)		(0.05	)(d)		10
Year ended 12/31/09		12.26		(0.04	)(c)		3.40			3.36			(0.02	)		—			(0.02	)		15.60		27.39			26,722		1.38			1.39			(0.30	)		45
Year ended 12/31/08		23.82		0.02	(c)(e)		(7.08	)		(7.06	)		—			(4.50	)		(4.50	)		12.26		(28.78	)		19,886		1.37			1.38			0.09	(e)		67
Year ended 12/31/07		21.36		(0.07	)(c)		2.53			2.46			—			—			—			23.82		11.52			20,817		1.31			1.32			(0.31	)		66
Year ended 12/31/06		20.34		(0.09	)(c)		1.11			1.02			—			—			—			21.36		5.01			97,646		1.35			1.35			(0.44	)		79
Year ended 12/31/05		18.86		(0.09	)		1.57			1.48			—			—			—			20.34		7.85			11		1.33			1.34			(0.49	)		82

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $138,236 and $27,414 for Series I and Series II shares, respectively.
(e)	Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets include a special cash dividend received of $5.23 per share owned of All-scripts-Misys Healthcare Solutions, Inc. on October 13, 2008. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the special dividend are $0.02 and 0.08% and $(0.03) and (0.17)% for Series I and Series II shares, respectively.

Invesco V.I. Global Health Care Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	924.40	$	5.30	$	1,019.29	$	5.56		1.11	%
Series II		1,000.00		923.10		6.48		1,018.05		6.80		1.36

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Global Health Care Fund

Approval of Investment Advisory and Sub-advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Global Health Care Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Health/Biotechnology Index. The Board noted that the performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period, the third quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which included using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund.

  The Board noted that Affiliated Sub-Advisers and other Invesco Advisers affiliated investment advisers advise funds with comparable investment strategies in other jurisdictions; however, the Board did not consider comparisons of fees charged to those funds to be apt, as those fees may include more than investment management services. The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, the expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Global Health Care Fund

          Invesco V.I. Global Multi-Asset Fund
          Semiannual Report to Shareholders § June 30, 2010

          Effective April 30, 2010, Invesco V.I. PowerShares ETF Allocation Fund was renamed
          Invesco V.I. Global Multi-Asset Fund.

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIGMA-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-1.31	%
Series II Shares	-1.46
MSCI World Index▼ (Broad Market Index)	-9.84
Custom V.I. Global Multi-Asset Fund Indexn (Style-Specific Index)	-2.94
Lipper VUF Global Flexible Portfolio Funds Category Average▼ (Peer Group)	-4.23
Lipper VUF Global Core Funds Index▼ (Former Peer Group Index)	-8.59

^▼  Lipper Inc.; ⁿ  Invesco, Lipper, Inc.

During the reporting period, the Fund elected to use the Lipper VUF Global Flexible Portfolio Funds Category Average as its peer group rather than the Lipper VUF Global Core Funds Index because it more closely reflects the performance of the securities in which the Fund invests.

The MSCI World Index is an unmanaged index considered representative of stocks of developed countries.

     The Custom V.I. Global Multi-Asset Fund Index, created by Invesco to serve as a benchmark for Invesco V.I. Global Multi-Asset Fund, is composed of the following indexes: MSCI World (54%) and Barclays Capital U.S. Universal (46%).

     The Lipper VUF Global Flexible Portfolio Funds Category Average is an average of all the variable insurance underlying funds tracked by the Lipper Global Flexible Portfolio Funds category.

     The Lipper VUF Global Core Funds Index is an unmanaged index considered representative of global core variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns

As of 6/30/10

Series I Shares
Inception (10/24/08)	21.92	%
1 Year	15.32
Series II Shares
Inception (10/24/08)	21.52	%
1 Year	15.00

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.74% and 0.99%, 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 Series I and Series II shares was 2.37% and 2.62%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco V.I. Global Multi-Asset Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     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 April 30, 2011. See current prospectus for more information.

Invesco V.I. Global Multi-Asset Fund

Schedule of Investments

June 30, 2010

(Unaudited)

Schedule of Investments in Affiliated Issuers — 100.18%^(a)

											Change in
	% of										Unrealized
	Net			Value		Purchases		Proceeds			Appreciation			Realized			Dividend		Shares		Value
	Assets			12/31/09		at Cost		from Sales			(Depreciation)			Gain (Loss)			Income		6/30/10		6/30/10
Domestic Equity ETFs–22.00%
iShares MSCI EAFE Small Cap Index Fund(b)		6.59	%	$	—	$	5,700,274	$	(1,347,740	)	$	(601,188	)	$	(215,771	)	$	31,480		108,720	$	3,535,575
PowerShares FTSE RAFI US 1000 Portfolio		9.19	%		5,362,923		1,722,143		(1,859,979	)		(212,084	)		(77,899	)		28,427		108,440		4,935,104
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		6.22	%		3,507,833		1,247,351		(1,399,331	)		(284,027	)		270,100			6,498		67,080		3,341,926
Total Domestic Equity ETFs					8,870,756		8,669,768		(4,607,050	)		(1,097,299	)		(23,570	)		66,405		284,240		11,812,605
Fixed-Income ETFs–52.21%
iShares Barclays 20+ Year Treasury Bond Fund(b)		36.27	%		—		19,980,758		(2,110,759	)		1,590,218			18,294			43,148		191,435		19,478,511
PowerShares 1-30 Laddered Treasury Portfolio		—	%		10,598,640		3,867,178		(14,559,010	)		340,565			(247,373	)		166,375		—		—
PowerShares Emerging Markets Sovereign Debt Portfolio		9.99	%		4,617,101		2,278,172		(1,616,817	)		119,308			(34,509	)		179,255		205,410		5,363,255
PowerShares High Yield Corporate Bond Portfolio		5.95	%		3,273,858		940,789		(855,464	)		(117,680	)		(46,934	)		143,157		184,125		3,194,569
Total Fixed-Income ETFs					18,489,599		27,066,897		(19,142,050	)		1,932,411			(310,522	)		531,935		580,970		28,036,335
Foreign Equity ETFs–23.63%
iShares MSCI Japan Index Fund(b)		6.45	%		3,690,486		1,682,058		(1,586,771	)		(195,762	)		(125,475	)		26,289		376,580		3,464,536
iShares MSCI Pacific ex-Japan Index Fund(b)		5.64	%		—		4,965,482		(1,149,289	)		(599,128	)		(191,317	)		48,557		84,660		3,025,748
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio		—	%		3,590,795		1,149,328		(4,838,534	)		(605,007	)		703,418			12,566		—		—
PowerShares FTSE RAFI Developed Markets ex-US Small-Mid Portfolio		—	%		4,108,289		1,488,183		(5,797,380	)		(457,066	)		657,974			4,561		—		—
PowerShares FTSE RAFI Emerging Markets Portfolio		4.97	%		3,262,704		1,229,220		(1,348,762	)		(311,679	)		(161,283	)		4,370		130,000		2,670,200
PowerShares FTSE RAFI Europe Portfolio		—	%		3,618,122		2,089,801		(5,406,507	)		(508,290	)		206,874			1,709		—		—
Vanguard European ETF(b)		6.57	%		—		4,951,746		(745,002	)		(572,328	)		(109,150	)		—		87,715		3,525,266
Total Foreign Equity ETFs					18,270,396		17,555,818		(20,872,245	)		(3,249,260	)		981,041			98,052		678,955		12,685,750
Money Market Funds–2.34%
Liquid Assets Portfolio–Institutional Class		1.17	%		1,183,493		8,576,664		(9,130,413	)		—			—			413		629,744		629,744
Premier Portfolio–Institutional Class		1.17	%		1,183,493		8,576,664		(9,130,413	)		—			—			170		629,744		629,744
Total Money Market Funds					2,366,986		17,153,328		(18,260,826	)		—			—			583		1,259,488		1,259,488
TOTAL INVESTMENTS IN AFFILIATED ISSUERS (Cost $52,541,979)		100.18	%		47,997,737		70,445,811		(62,882,171	)		(2,414,148	)		646,949			696,975				53,794,178
OTHER ASSETS LESS LIABILITIES		(0.18	)%																			(99,006	)
NET ASSETS		100.00	%																		$	53,695,172

Investment Abbreviations:

ETF – Exchange-Traded Fund

Notes to Schedule of Investments:

(a)	Unless otherwise indicated, each exchange-traded fund or mutual fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser.
(b)	Non-affiliate of the Fund or its investment adviser.

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

Invesco V.I. Global Multi-Asset Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments — non affiliates at value (Cost $33,373,456)	$	33,029,636
Investments — affiliates, at value (Cost $19,168,523)		20,764,542
Total investments, at value (Cost $52,541,979)		53,794,178
Receivables for:
Fund shares sold		1,819
Dividends from affiliates		119
Investment for trustee deferred compensation and retirement plans		2,917
Other assets		2,427
Total assets		53,801,460
Liabilities:
Payables for:
Fund shares reacquired		8,679
Accrued fees to affiliates		68,309
Accrued other operating expenses		26,087
Trustee deferred compensation and retirement plans		3,213
Total liabilities		106,288
Net assets applicable to shares outstanding	$	53,695,172
Net assets consist of:
Shares of beneficial interest	$	51,185,488
Undistributed net investment income		802,648
Undistributed net realized gain		454,837
Unrealized appreciation		1,252,199
	$	53,695,172
Net Assets:
Series I	$	1,170,941
Series II	$	52,524,231
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		86,636
Series II		3,903,105
Series I:
Net asset value per share	$	13.52
Series II:
Net asset value per share	$	13.46

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends — non affiliates	$	149,474
Dividends — affiliates		547,501
Total investment income		696,975
Expenses:
Advisory fees		179,676
Administrative services fees		91,953
Custodian fees		3,590
Distribution fees — Series II		65,921
Transfer agent fees		1,585
Trustees’ and officers’ fees and benefits		9,946
Other		22,809
Total expenses		375,480
Less: Fees waived and expenses reimbursed		(269,893	)
Net expenses		105,587
Net investment income		591,388
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities — non affiliates		(623,419	)
Investment securities — affiliates		1,270,368
		646,949
Change in net unrealized appreciation (depreciation) of:
Investment securities — non affiliates		(378,188	)
Investment securities — affiliates		(2,035,960	)
		(2,414,148	)
Net realized and unrealized gain (loss)		(1,767,199	)
Net increase (decrease) in net assets resulting from operations	$	(1,175,811	)

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

Invesco V.I. Global Multi-Asset Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	591,388		$	656,894
Net realized gain (loss)		646,949			(107,864	)
Change in net unrealized appreciation (depreciation)		(2,414,148	)		3,623,261
Net increase (decrease) in net assets resulting from operations		(1,175,811	)		4,172,291
Distributions to shareholders from net investment income:
Series I		—			(10,312	)
Series II		—			(452,703	)
Total distributions from net investment income		—			(463,015	)
Distributions to shareholders from net realized gains:
Series I		—			(1,782	)
Series II		—			(84,532	)
Total distributions from net realized gains		—			(86,314	)
Share transactions–net:
Series I		282,928			690,765
Series II		7,727,460			42,009,701
Net increase in net assets resulting from share transactions		8,010,388			42,700,466
Net increase in net assets		6,834,577			46,323,428
Net assets:
Beginning of period		46,860,595			537,167
End of period (includes undistributed net investment income of $802,648 and $211,260, respectively)	$	53,695,172		$	46,860,595

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Multi-Asset Fund, formerly AIM V.I. PowerShares ETF Allocation Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is to provide total return consistent with a moderate level of risk relative to the broad stock market. The Fund primarily invests in exchange-traded funds (“underlying funds”) advised by Invesco PowerShares Capital Management LLC (“Invesco PowerShares”). The Fund may also invest in affiliated mutual funds advised by Invesco Advisers, Inc (“Invesco”); in unaffiliated mutual funds and exchange-traded funds and in other securities. Invesco and Invesco PowerShares (collectively the “Advisers”) are affiliates of each other as they are indirect wholly owned subsidiaries of Invesco Ltd. Invesco may change the Fund’s asset class allocations, the underlying funds or the target weightings in the underlying funds without shareholder approval. The underlying funds may engage in a number of investment techniques and practices, which involve certain risks. Each underlying fund’s accounting policies are outlined in the underlying fund’s financial statements and the affiliated underlying funds are available upon request.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

Invesco V.I. Global Multi-Asset Fund

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Distributions from income from underlying funds, if any, are recorded as dividend income on ex-dividend date. Distributions from net realized capital gains from underlying funds, if any, are recorded as realized gains on the ex-dividend date. Interest income is recorded on the accrual basis from settlement date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.

Invesco V.I. Global Multi-Asset Fund

D.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
E.	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.
F.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
G.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.67%
Next $250 million		0	.655%
Next $500 million		0	.64%
Next $1.5 billion		0	.625%
Next $2.5 billion		0	.61%
Next $2.5 billion		0	.595%
Next $2.5 billion		0	.58%
Over $10 billion		0	.565%

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

  Effective April 30, 2010, the Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.10% and Series II shares to 0.35% of average daily net assets. Prior to April 30, 2010, the Adviser had contractually agreed to limit total amount fund operating expense of Series I to 0.18% and Series II shares to 0.43% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and/or expense reimbursement” and (5) expenses of the underlying funds that are paid indirectly as a result of share ownership of the underlying funds; and (6) expenses that the Funds have incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. To the extent that the annualized expense ratio does not exceed 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $179,676 and reimbursed Fund expenses of $90,217.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance

Invesco V.I. Global Multi-Asset Fund

companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $67,158 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	53,794,178	$	—	$	—	$	53,794,178

NOTE 4—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,353 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (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.

Invesco V.I. Global Multi-Asset 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 generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  The Fund did not have a capital loss carryforward as of December 31, 2009.

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 June 30, 2010 was $53,292,483 and $44,621,345, 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	$	2,994,125
Aggregate unrealized (depreciation) of investment securities		(1,934,038	)
Net unrealized appreciation of investment securities	$	1,060,087
Cost of investments for tax purposes is $52,734,091.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		39,373		$	531,419			56,401		$	738,272
Series II		1,249,472			17,327,614			3,459,519			43,759,281
Issued as reinvestment of dividends:
Series I		—			—			880			12,094
Series II		—			—			39,214			537,235
Reacquired:
Series I		(18,361	)		(248,491	)		(4,381	)		(59,601	)
Series II		(712,637	)		(9,600,154	)		(168,256	)		(2,286,815	)
Net increase in share activity		557,847		$	8,010,388			3,383,377		$	42,700,466

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 94% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco Aim and/or Invesco Aim affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco Aim and or Invesco Aim affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Global Multi-Asset Fund

NOTE 9—Financial Highlights

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

																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	13.69	$	0.17	$	(0.34	)	$	(0.17	)	$	—		$	—		$	—		$	13.52		(1.24	)%	$	1,171		0.14	%(d)		1.15	%(d)		2.45	%(d)		85	%
Year ended 12/31/09		11.09		0.53		2.27			2.80			(0.17	)		(0.03	)		(0.20	)		13.69		25.19			899		0.22			1.78			4.03			32
Year ended 12/31/08(e)		10.00		0.11		1.17			1.28			(0.19	)		—			(0.19	)		11.09		12.88			141		0.17	(f)		79.26	(f)		5.72	(f)		6
Series II
Six months ended 06/30/10		13.65		0.15		(0.34	)		(0.19	)		—			—			—			13.46		(1.39	)		52,524		0.39	(d)		1.40	(d)		2.20	(d)		85
Year ended 12/31/09		11.07		0.49		2.27			2.76			(0.15	)		(0.03	)		(0.18	)		13.65		24.95			45,962		0.47			2.03			3.78			32
Year ended 12/31/08(e)		10.00		0.11		1.15			1.26			(0.19	)		—			(0.19	)		11.07		12.66			396		0.42	(f)		79.51	(f)		5.47	(f)		6

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $905 and $53,174 for Series I and Series II shares, respectively.
(e)	Commencement date of October 24, 2008.
(f)	Annualized.

Invesco V.I. Global Multi-Asset Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	986.90	$	0.69	$	1,024.10	$	0.70		0.14	%
Series II		1,000.00		985.40		1.92		1,022.86		1.96		0.39

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

  Effective April 30, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses of Series I and Series II shares to 0.10% and 0.35% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 0.10% and 0.35% for Series I and Series II shares, respectively.

3	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $0.49 and $1.72 for the Series I and Series II shares, respectively.
4	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $0.50 and $1.76 for the Series I and Series II shares, respectively.

Invesco V.I. Global Multi-Asset Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Global Multi-Asset Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board noted that the Fund recently began operations and that only one calendar year of comparative performance data was available. The Board compared the Fund’s performance during the past calendar year to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser. The Board noted that the performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board noted that the Fund is a fund of funds and invests its assets principally in underlying funds rather than directly in individual securities. The Board considered the tactical asset allocation provided for the Fund, which is in contrast to the more static allocation models utilized by the Invesco Balanced-Risk and Asset Allocation funds.

  The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other mutual funds or client accounts with investment strategies comparable to those of the Fund.

  The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board considered the effect this fee waiver would have on the fund’s total estimated expenses.

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

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the underlying funds fees, the advisory fee after fee waivers and fee and expense limitations and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. It is not anticipated that the Fund will execute brokerage transactions through “soft dollar” arrangements to any significant degree.

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

Invesco V.I. Global Multi-Asset Fund

          Invesco V.I. Global Real Estate Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIGRE-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-6.01	%
Series II Shares	-6.12
MSCI World Index▼ (Broad Market Index)	-9.84
FTSE EPRA/NAREIT Developed Real Estate Indexn (Style-Specific Index)	-4.23
Lipper VUF Real Estate Funds Category Average▼ (Peer Group)	1.18

^▼ Lipper Inc.;        ⁿ    Invesco, Bloomberg L.P.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries.

     The FTSE EPRA/NAREIT Developed Real Estate Index is an unmanaged index considered representative of global real estate companies and REITs.

     The Lipper VUF Real Estate Funds Category Average represents an average of all of the variable insurance underlying funds in the Lipper Real Estate Funds category.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (3/31/98)	6.99	%
10 Years	8.89
5 Years	-0.03
1 Year	19.60
Series II Shares
10 Years	8.63	%
5 Years	-0.27
1 Year	19.40

Series II shares incepted on April 30, 2004. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.26% and 1.45%, 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 Series I and Series II shares was 1.26% and 1.51%, 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.

     Invesco V.I. Global Real Estate Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     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 June 30, 2011. See current prospectus for more information.

Invesco V.I. Global Real Estate Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Real Estate Investment Trusts, Common Stocks & Other Equity Interests–98.54%
Australia–9.15%
CFS Retail Property Trust		862,750	$	1,366,362
Dexus Property Group		1,150,754		740,518
Goodman Group		2,955,626		1,557,498
ING Office Fund		2,050,171		991,719
Stockland		584,942		1,816,470
Westfield Group		527,143		5,362,495
				11,835,062
Austria–0.31%
Conwert Immobilien Invest S.E.		38,693		404,592
Brazil–0.73%
Aliansce Shopping Centers S.A.		23,300		146,496
BR Properties S.A.(a)		23,100		161,234
BR Properties S.A.		29,100		203,113
Multiplan Empreendimentos Imobiliarios S.A.		24,200		430,994
				941,837
Canada–2.92%
Boardwalk REIT		4,900		184,417
Canadian REIT		57,000		1,492,475
Cominar REIT		38,400		669,944
Morguard REIT		38,600		476,154
Primaris Retail REIT		58,000		950,864
				3,773,854
China–0.71%
Agile Property Holdings Ltd.		524,000		534,707
KWG Property Holding Ltd.		206,500		127,160
Renhe Commercial Holdings		624,000		129,324
Shimao Property Holdings Ltd.		82,000		127,248
				918,439
Finland–0.45%
Citycon Oyj		103,548		305,208
Sponda Oyj		92,930		279,527
				584,735
France–4.97%
Gecina S.A.		5,959		532,447
Klepierre		42,120		1,156,622
Mercialys		20,186		572,689
Societe Immobiliere de Location pour I’Industrie et le Commerce		7,105		701,393
Unibail-Rodamco S.E.		21,382		3,471,010
				6,434,161
Germany–0.16%
Deutsche Euroshop AG		7,691		208,934
Hong Kong–15.50%
China Overseas Land & Investment Ltd.		1,004,301		1,870,697
China Resources Land Ltd.		375,800		705,583
Hang Lung Properties Ltd.		575,000		2,205,289
Henderson Land Development Co. Ltd.		132,000		768,991
Hongkong Land Holdings Ltd.		479,000		2,368,073
Kerry Properties Ltd.		262,400		1,126,221
Link REIT (The)		305,500		755,820
New World Development Co., Ltd.		210,000		339,226
Sino Land Co. Ltd.		454,000		806,319
Sun Hung Kai Properties Ltd.		522,000		7,096,992
Wharf (Holdings) Ltd. (The)		416,000		2,013,673
				20,056,884
Japan–10.12%
AEON Mall Co., Ltd.		34,400		682,772
Japan Prime Realty Investment Corp.		276		580,156
Japan Real Estate Investment Corp.		131		1,068,682
Japan Retail Fund Investment Corp.		484		588,607
Kenedix Realty Investment Corp.		164		455,002
Mitsubishi Estate Co. Ltd.		290,000		4,027,529
Mitsui Fudosan Co., Ltd.		244,000		3,412,175
NTT Urban Development Corp.		659		520,907
Sumitomo Realty & Development Co., Ltd.		103,000		1,757,179
				13,093,009
Luxembourg–0.27%
ProLogis European Properties(b)		68,581		344,801
Malta–0.00%
BGP Holdings PLC(b)		3,053,090		0
Netherlands–1.39%
Corio N.V.		25,822		1,254,574
Eurocommercial Properties N.V.		16,895		539,689
				1,794,263

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

Invesco V.I. Global Real Estate Fund

	Shares		Value
Singapore–4.45%
Ascendas REIT		506,779	$	654,093
CapitaCommercial Trust		794,000		686,944
Capitaland Ltd.		730,000		1,861,204
CapitaMall Trust		814,550		1,060,046
Keppel Land Ltd.		362,000		995,885
Suntec REIT		532,000		499,471
				5,757,643
Sweden–0.53%
Castellum A.B.		75,512		685,260
Switzerland–1.03%
Swiss Prime Site AG(b)		21,939		1,327,562
United Kingdom–5.09%
Big Yellow Group PLC		121,181		529,227
British Land Co. PLC		132,083		844,165
Derwent London PLC		29,997		557,152
Hammerson PLC		231,257		1,168,085
Hansteen Holdings PLC		410,412		406,549
Land Securities Group PLC		196,136		1,608,505
Segro PLC		132,467		498,859
Shaftesbury PLC		108,538		580,160
Unite Group PLC(b)		149,884		387,619
				6,580,321
United States–40.76%
Acadia Realty Trust		32,798		551,662
Alexandria Real Estate Equities, Inc.		25,683		1,627,532
AMB Property Corp.		36,575		867,193
AvalonBay Communities, Inc.		19,342		1,805,963
Boston Properties, Inc.		32,265		2,301,785
Brookfield Properties Corp.		90,625		1,273,722
Camden Property Trust		51,582		2,107,125
Corporate Office Properties Trust		6,934		261,828
DCT Industrial Trust Inc.		116,093		524,740
DiamondRock Hospitality Co.(b)		55,400		455,388
Digital Realty Trust, Inc.		46,741		2,696,021
Equity Residential		67,977		2,830,562
Essex Property Trust, Inc.		19,910		1,942,021
Federal Realty Investment Trust		4,300		302,161
HCP, Inc.		28,275		911,869
Health Care REIT, Inc.		50,130		2,111,476
Highwoods Properties, Inc.		15,088		418,843
Host Hotels & Resorts Inc.		170,682		2,300,793
Kilroy Realty Corp.		35,162		1,045,366
LaSalle Hotel Properties		18,800		386,716
Liberty Property Trust		62,296		1,797,240
Macerich Co. (The)		41,123		1,534,710
Marriott International, Inc.–Class A		30,609		916,434
Mid-America Apartment Communities, Inc.		5,100		262,497
Nationwide Health Properties, Inc.		32,134		1,149,433
OMEGA Healthcare Investors, Inc.		7,926		157,965
Piedmont Office Realty Trust Inc.–Class A		39,403		738,018
Post Properties, Inc.		3,003		68,258
ProLogis		129,998		1,316,880
Public Storage		24,086		2,117,400
Regency Centers Corp.		54,632		1,879,341
Retail Opportunity Investments Corp.		34,779		335,617
Senior Housing Properties Trust		70,598		1,419,726
Simon Property Group, Inc.		68,749		5,551,482
SL Green Realty Corp.		11,686		643,198
Sovran Self Storage, Inc.		8,600		296,098
Tanger Factory Outlet Centers, Inc.		14,578		603,238
Taubman Centers, Inc.		479		18,025
Ventas, Inc.		40,665		1,909,222
Vornado Realty Trust		36,493		2,662,164
Washington REIT		3,209		88,536
Weingarten Realty Investors		28,300		539,115
				52,727,363
Total Real Estate Investment Trusts, Common Stocks & Other Equity Interests (Cost $115,148,579)				127,468,720
Money Market Funds–0.93%
Liquid Assets Portfolio–Institutional Class(c)		604,142		604,142
Premier Portfolio–Institutional Class(c)		604,142		604,142
Total Money Market Funds (Cost $1,208,284)				1,208,284
TOTAL INVESTMENTS–99.47% (Cost $116,356,863)				128,677,004
OTHER ASSETS LESS LIABILITIES–0.53%				680,152
NET ASSETS–100.00%			$	129,357,156

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

(a)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $161,234, which represented 0.12% of the Fund’s Net Assets.
(b)	Non-income producing security.
(c)	The money market fund and the Fund are affiliated by having the same investment adviser.

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

Invesco V.I. Global Real Estate Fund

Portfolio Composition

By country, based on Net Assets

as of June 30, 2010

United States	40.8	%
Hong Kong	15.5
Japan	10.1
Australia	9.1
United Kingdom	5.1
France	5.0
Singapore	4.4
Canada	2.9
Countries each less than 2.0% of portfolio	5.6
Money Market Funds Plus Other Assets Less Liabilities	1.5

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

Invesco V.I. Global Real Estate Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $115,148,579)	$	127,468,720
Investments in affiliated money market funds, at value and cost		1,208,284
Total investments, at value (Cost $116,356,863)		128,677,004
Foreign currencies, at value (Cost $1,579,425)		1,582,888
Receivables for:
Investments sold		1,526,004
Fund shares sold		100,874
Dividends		501,743
Investment for trustee deferred compensation and retirement plans		9,698
Other assets		2,198
Total assets		132,400,409
Liabilities:
Payables for:
Investments purchased		2,637,607
Fund shares reacquired		237,300
Accrued fees to affiliates		95,214
Accrued other operating expenses		52,948
Trustee deferred compensation and retirement plans		20,184
Total liabilities		3,043,253
Net assets applicable to shares outstanding	$	129,357,156
Net assets consist of:
Shares of beneficial interest	$	161,447,206
Undistributed net investment income		5,175,238
Undistributed net realized gain (loss)		(49,582,494	)
Unrealized appreciation		12,317,206
	$	129,357,156
Net Assets:
Series I	$	114,841,525
Series II	$	14,515,631
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		10,063,943
Series II		1,295,593
Series I:
Net asset value per share	$	11.41
Series II:
Net asset value per share	$	11.20

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $123,760)	$	2,713,843
Dividends from affiliated money market funds		836
Total investment income		2,714,679
Expenses:
Advisory fees		521,400
Administrative services fees		191,343
Custodian fees		57,650
Distribution fees — Series II		16,313
Transfer agent fees		13,521
Trustees’ and officers’ fees and benefits		11,009
Other		30,842
Total expenses		842,078
Less: Fees waived		(1,463	)
Net expenses		840,615
Net investment income		1,874,064
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		486,497
Foreign currencies		(114,491	)
		372,006
Change in net unrealized appreciation (depreciation) of:
Investment securities		(10,748,302	)
Foreign currencies		(3,334	)
		(10,751,636	)
Net realized and unrealized gain (loss)		(10,379,630	)
Net increase (decrease) in net assets resulting from operations	$	(8,505,566	)

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

Invesco V.I. Global Real Estate Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	1,874,064		$	2,709,902
Net realized gain (loss)		372,006			(20,336,177	)
Change in net unrealized appreciation (depreciation)		(10,751,636	)		50,498,502
Net increase (decrease) in net assets resulting from operations		(8,505,566	)		32,872,227
Share transactions–net:
Series I		(5,811,117	)		15,146,597
Series II		3,663,655			5,205,429
Net increase (decrease) in net assets resulting from share transactions		(2,147,462	)		20,352,026
Net increase (decrease) in net assets		(10,653,028	)		53,224,253
Net assets:
Beginning of period		140,010,184			86,785,931
End of period (includes undistributed net investment income of $5,175,238 and $3,301,174, respectively)	$	129,357,156		$	140,010,184

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Real Estate Fund, formerly AIM V.I. Global Real Estate Fund, (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is total return through growth of capital and current income.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity

Invesco V.I. Global Real Estate Fund

	are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
	The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction to the cost of investments in the Statement of Assets and Liabilities. These recharacterizations are reflected in the accompanying financial statements.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco V.I. Global Real Estate Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly.
	The Fund concentrates its assets in the real estate industry, an investment in the fund will be closely linked to the performance of the real estate markets. Property values may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.75%
Next $250 million		0	.74%
Next $500 million		0	.73%
Next $1.5 billion		0	.72%
Next $2.5 billion		0	.71%
Next $2.5 billion		0	.70%
Next $2.5 billion		0	.69%
Over $10 billion		0	.68%

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

Invesco V.I. Global Real Estate Fund

Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees/or reimburse expenses during the period under this expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $1,463.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $166,549 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

Invesco V.I. Global Real Estate Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1*		Level 2*		Level 3		Total
Australia	$	—	$	11,835,062	$	—	$	11,835,062
Austria		—		404,592		—		404,592
Brazil		941,837		—		—		941,837
Canada		3,773,854		—		—		3,773,854
China		—		918,439		—		918,439
Finland		—		584,735		—		584,735
France		—		6,434,161		—		6,434,161
Germany		—		208,934		—		208,934
Hong Kong		—		20,056,884		—		20,056,884
Japan		—		13,093,009		—		13,093,009
Luxembourg		—		344,801		—		344,801
Malta		—		—		0		0
Netherlands		—		1,794,263		—		1,794,263
Singapore		—		5,757,643		—		5,757,643
Sweden		—		685,260		—		685,260
Switzerland		—		1,327,562		—		1,327,562
United Kingdom		—		6,580,321		—		6,580,321
United States		53,935,647		—		—		53,935,647
Total Investments	$	58,651,338	$	70,025,666	$	0	$	128,677,004

*  Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

NOTE 4—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,446 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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.

Invesco V.I. Global Real Estate Fund

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	18,695,360
December 31, 2017		22,621,345
Total capital loss carryforward	$	41,316,705

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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $67,347,536 and $66,586,246, 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	$	6,120,109
Aggregate unrealized (depreciation) of investment securities		(5,993,446	)
Net unrealized appreciation of investment securities	$	126,663
Cost of investments for tax purposes is $128,550,341.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		1,811,092		$	21,834,737			4,597,449		$	43,715,169
Series II		406,060			4,803,468			617,087			6,098,786
Reacquired:
Series I		(2,311,276	)		(27,645,854	)		(2,977,162	)		(28,568,572	)
Series II		(98,203	)		(1,139,813	)		(91,409	)		(893,357	)
Net increase (decrease) in share activity		(192,327	)	$	(2,147,462	)		2,145,965		$	20,352,026

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 50% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Global Real Estate Fund

NOTE 9—Financial Highlights

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

																											Ratio of			Ratio of
					Net gains																						expenses			expenses
					(losses)																						to average			to average net			Ratio of net
	Net asset				on securities						Dividends			Distributions													net assets			assets without			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	12.14	$	0.16	$	(0.89	)	$	(0.73	)	$	—		$	—		$	—		$	11.41		(6.01	)%	$	114,842		1.19	%(d)		1.19	%(d)		2.71	%(d)		49	%
Year ended 12/31/09		9.23		0.26		2.65			2.91			—			—			—			12.14		31.53			128,224		1.26			1.26			2.59			72
Year ended 12/31/08		21.88		0.44		(10.35	)		(9.91	)		(1.08	)		(1.66	)		(2.74	)		9.23		(44.65	)		82,582		1.17			1.17			2.51			62
Year ended 12/31/07		28.74		0.38		(1.52	)		(1.14	)		(1.69	)		(4.03	)		(5.72	)		21.88		(5.54	)		143,773		1.13			1.22			1.31			57
Year ended 12/31/06		21.06		0.33		8.61			8.94			(0.28	)		(0.98	)		(1.26	)		28.74		42.60			192,617		1.15			1.30			1.32			84
Year ended 12/31/05		19.13		0.38		2.34			2.72			(0.22	)		(0.57	)		(0.79	)		21.06		14.24			99,977		1.21			1.36			1.91			51
Series II
Six months ended 06/30/10		11.93		0.15		(0.88	)		(0.73	)		—			—			—			11.20		(6.12	)		14,516		1.44	(d)		1.44	(d)		2.46	(d)		49
Year ended 12/31/09		9.10		0.24		2.59			2.83			—			—			—			11.93		31.10			11,786		1.45			1.51			2.40			72
Year ended 12/31/08		21.66		0.36		(10.19	)		(9.83	)		(1.07	)		(1.66	)		(2.73	)		9.10		(44.72	)		4,203		1.42			1.42			2.26			62
Year ended 12/31/07		28.57		0.29		(1.49	)		(1.20	)		(1.68	)		(4.03	)		(5.71	)		21.66		(5.76	)		2,646		1.38			1.47			1.06			57
Year ended 12/31/06		20.98		0.27		8.58			8.85			(0.28	)		(0.98	)		(1.26	)		28.57		42.30			311		1.40			1.55			1.07			84
Year ended 12/31/05		19.12		0.34		2.31			2.65			(0.22	)		(0.57	)		(0.79	)		20.98		13.85			62		1.45			1.61			1.67			51

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $127,034, and $13,159 for Series I and Series II shares, respectively.

Invesco V.I. Global Real Estate Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	939.90	$	5.72	$	1,018.89	$	5.96		1.19	%
Series II		1,000.00		938.80		6.92		1,017.65		7.20		1.44

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Global Real Estate Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the sub-advisory contracts for the Fund, as Invesco Asset Management Limited currently manages certain assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper

Invesco V.I. Global Real Estate Fund

performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Real Estate Index. The Board noted that the performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period, the second quintile for the three year period and the first quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of the Series I shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers and two domestic mutual funds sub-advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the mutual fund advised by Invesco Advisers and at or below the total account fee for the two mutual funds subadvised by Invesco Advisers.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Global Real Estate Fund

          Invesco V.I. Government Securities Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIGOV-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.19	%
Series II Shares	5.05
Barclays Capital U.S. Aggregate Index▼ (Broad Market Index)	5.33
Barclays Capital U.S. Government Index▼ (Style-Specific Index)	5.40
Lipper VUF U.S. Government Funds Index▼ (Peer Group Index)	5.39

^▼ Lipper Inc.

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

     The Barclays Capital U.S. Government Index is an unmanaged index considered representative of fixed-income obligations issued by the U.S. Treasury, government agencies and quasi-federal corporations.

     The Lipper VUF General U.S. Government Funds Index is an unmanaged index considered representative of general U.S. government variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns

As of 6/30/10

Series I Shares
Inception (5/5/93)	5.20	%
10 Years	5.46
5 Years	5.50
1 Year	7.23
Series II Shares
10 Years	5.19	%
5 Years	5.24
1 Year	6.92

Series II shares incepted on September 19, 2001. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.73% and 0.98%, 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 Series I and Series II shares was 0.75% 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.

     Invesco V.I. Government Securities Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available by calling 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2011. See current prospectus for more information.

Invesco V.I. Government Securities Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Principal
	Amount		Value
U.S. Government Sponsored Agency Mortgage-Backed Securities–73.42%
Collateralized Mortgage Obligations–47.53%
Fannie Mae Grantor Trust, 5.34%, 04/25/12	$	4,500,000	$	4,830,539
Fannie Mae REMICs, 4.50%, 01/25/12 to 07/25/28		13,186,684		13,750,627
5.00%, 12/25/15 to 05/25/30		18,548,510		19,158,743
4.00%, 09/25/16 to 02/25/40		11,948,483		12,428,131
5.50%, 01/25/26 to 03/25/28		5,796,867		5,902,528
6.00%, 05/25/26 to 10/25/33		16,383,446		16,551,436
4.57%, 06/25/30		729,472		730,800
4.25%, 06/25/33		1,220,385		1,250,088
0.65%, 05/25/36(a)		13,009,880		12,962,813
Fannie Mae Whole Loans 5.50%, 07/25/34		1,989,343		1,990,762
Federal Home Loan Bank, 4.55%, 04/27/12		1,430,855		1,511,590
5.27%, 12/28/12		16,854,162		18,054,918
5.46%, 11/27/15		48,218,570		53,134,588
Freddie Mac REMICs, 6.75%, 06/15/11		84,137		84,228
5.25%, 08/15/11 to 08/15/32		15,648,344		16,404,587
5.38%, 08/15/11 to 09/15/11		5,218,337		5,369,941
3.88%, 12/15/12		672,519		685,217
4.50%, 12/15/15 to 04/15/30		33,075,891		34,009,134
7.50%, 01/15/16		482,571		486,758
6.00%, 09/15/16 to 09/15/29		38,581,426		39,098,719
3.50%, 10/15/16 to 05/15/22		3,713,508		3,820,209
4.00%, 11/15/16 to 02/15/30		33,967,541		35,436,871
5.00%, 05/15/18 to 03/15/31		30,381,084		31,181,202
5.75%, 12/15/18		2,548,916		2,549,112
4.75%, 05/15/23 to 04/15/31		12,004,343		12,291,688
5.50%, 07/15/24 to 09/15/30		53,830,086		54,682,176
0.61%, 04/15/28(a)		6,675,833		6,681,049
0.65%, 03/15/36(a)		13,586,860		13,592,737
0.70%, 11/15/36(a)		16,500,000		16,500,000
0.75%, 06/15/37(a)		17,419,181		17,341,545
1.21%, 11/15/39(a)		8,691,324		8,797,667
Ginnie Mae REMICs, 3.13%, 04/16/16		4,021,436		4,064,237
2.17%, 02/16/24		22,355,981		22,495,999
5.00%, 09/16/27 to 02/20/30		10,246,872		10,537,907
4.21%, 01/16/28		5,825,807		5,947,170
4.75%, 12/20/29		3,397,286		3,408,510
4.50%, 01/20/31 to 08/20/35		34,058,958		35,372,306
5.50%, 04/16/31		5,868,209		6,020,464
4.00%, 03/20/36		40,561,578		41,895,190
				591,012,186
Federal Home Loan Mortgage Corp. (FHLMC)–5.97%
Pass Through Ctfs., 6.00%, 08/01/10 to 02/01/34		4,814,706		5,258,004
7.00%, 11/01/10 to 12/01/37		16,619,270		18,764,700
6.50%, 10/01/12 to 12/01/35		7,685,854		8,462,091
8.00%, 07/01/15 to 09/01/36		14,451,100		16,757,226
7.50%, 03/01/16 to 08/01/36		5,517,790		6,219,748
5.00%, 07/01/18		1,965,513		2,109,180
10.50%, 08/01/19		5,529		6,277
4.50%, 09/01/20		11,213,925		11,912,459
8.50%, 09/01/20 to 08/01/31		958,015		1,112,396
10.00%, 03/01/21		79,683		91,041
9.00%, 06/01/21 to 06/01/22		647,702		725,054
7.05%, 05/20/27		366,929		409,595
6.03%, 10/20/30		2,204,929		2,389,280
				74,217,051
Federal National Mortgage Association (FNMA)–15.51%
Pass Through Ctfs., 6.50%, 10/01/10 to 11/01/37		16,833,112		18,439,631
7.00%, 12/01/10 to 06/01/36		25,638,233		28,334,474
7.50%, 08/01/11 to 07/01/37		17,032,891		19,327,377
8.00%, 06/01/12 to 11/01/37		15,195,339		17,307,197
8.50%, 06/01/12 to 08/01/37		5,927,942		6,806,452
10.00%, 09/01/13		15,250		16,093
6.00%, 09/01/17 to 03/01/37		5,229,261		5,690,857
5.00%, 11/01/17 to 12/01/33		29,098,639		31,301,807
4.50%, 09/01/18 to 11/01/21		59,937,290		64,062,883
5.50%, 03/01/21		573		620
6.75%, 07/01/24		1,236,454		1,389,046
6.95%, 10/01/25 to 09/01/26		196,408		222,264
				192,898,701
Government National Mortgage Association (GNMA)–4.41%
Pass Through Ctfs., 6.50%, 02/20/12 to 01/15/37		15,253,519		16,997,704
8.00%, 07/15/12 to 01/15/37		4,404,379		5,100,912
6.75%, 08/15/13		40,064		42,638
7.50%, 10/15/14 to 10/15/35		7,562,643		8,612,798
11.00%, 10/15/15		2,017		2,281
9.00%, 10/20/16 to 12/20/16		97,515		107,671
7.00%, 04/15/17 to 01/15/37		6,315,314		7,122,284
10.50%, 09/15/17 to 11/15/19		3,652		3,987
8.50%, 12/15/17 to 01/15/37		941,247		1,039,938
10.00%, 06/15/19		38,841		43,259
6.00%, 09/15/20 to 08/15/33		3,267,237		3,602,703

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

Invesco V.I. Government Securities Fund

	Principal
	Amount		Value
Government National Mortgage Association (GNMA)–(continued)
6.95%, 08/20/25 to 08/20/27	$	1,010,593	$	1,128,174
6.25%, 06/15/27		137,929		153,183
6.38%, 10/20/27 to 09/20/28		774,580		872,801
Pass Through Ctfs., TBA, 6.00%, 07/01/40(b)		9,134,658		9,960,979
				54,791,312
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $894,049,809)				912,919,250
U.S. Government Sponsored Agency Securities–25.23%
Federal Agricultural Mortgage Corp.–8.66%
Bonds, 2.11%, 03/15/12		70,000,000		71,219,890
Medium-Term Notes, 5.60%, 01/19/17		11,000,000		11,062,749
Unsec. Medium-Term Notes, 2.20%, 11/09/11		25,000,000		25,416,981
				107,699,620
Federal Farm Credit Bank (FFCB)–3.26%
Bonds, 3.00%, 09/22/14		12,500,000		13,135,436
5.59%, 10/04/21		10,075,000		10,721,832
5.75%, 01/18/22		2,775,000		2,979,450
Global Bonds, 1.38%, 06/25/13		10,000,000		10,059,896
Medium-Term Notes, 5.75%, 12/07/28		3,100,000		3,636,482
				40,533,096
Federal Home Loan Bank (FHLB)–6.02%
Unsec. Bonds, 5.45%, 04/15/11		8,439,283		8,734,157
4.72%, 09/20/12		1,367,313		1,443,509
Unsec. Global Bonds, 1.75%, 08/22/12		5,000,000		5,107,432
1.63%, 11/21/12		13,000,000		13,230,723
1.63%, 03/20/13		37,000,000		37,634,388
Series 1, Unsec. Bonds, 5.77%, 03/23/18		7,895,740		8,690,250
				74,840,459
Federal Home Loan Mortgage Corp. (FHLMC)–2.90%
Unsec. Global Notes, 2.13%, 09/21/12		35,000,000		36,019,942
Federal National Mortgage Association (FNMA)–3.94%
Unsec. Global Notes, 1.00%, 11/23/11		4,250,000		4,277,080
1.75%, 05/07/13		34,000,000		34,639,219
1.50%, 06/26/13		10,000,000		10,110,172
				49,026,471
Tennessee Valley Authority (TVA)–0.45%
Series A, Bonds, 6.79%, 05/23/12		5,000,000		5,555,896
Total U.S. Government Sponsored Agency Securities (Cost $306,279,212)				313,675,484
U.S. Treasury Securities–0.83%
U.S. Treasury Notes–0.49%
3.13%, 05/15/19(c)		6,000,000		6,125,625
U.S. Treasury Bonds–0.34%
7.63%, 02/15/25(c)		550,000		807,641
6.88%, 08/15/25(c)		500,000		693,594
4.25%, 05/15/39(c)		2,500,000		2,643,359
				4,144,594
Total U.S. Treasury Securities (Cost $9,300,443)				10,270,219
Foreign Sovereign Bonds–0.34%
Sovereign Debt–0.34%
Israel Government Agency for International Development (AID) Bond (Israel), Gtd. Bonds, 5.13%, 11/01/24 (Cost $3,830,674)		3,800,000		4,294,711
	Shares
Money Market Funds–1.54%
Government & Agency Portfolio–Institutional Class (Cost $19,100,219)(d)		19,100,219		19,100,219
TOTAL INVESTMENTS–101.36% (Cost $1,232,560,357)				1,260,259,883
OTHER ASSETS LESS LIABILITIES–(1.36)%				(16,883,856	)
NET ASSETS–100.00%			$	1,243,376,027

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

Invesco V.I. Government Securities Fund

Investment Abbreviations:

Ctfs.	– Certificates
Gtd.	– Guaranteed
REMICs	– Real Estate Mortgage Investment Conduits
TBA	– To Be Announced
Unsec.	– Unsecured

Notes to Schedule of Investments:

(a)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(b)	Security purchased on a forward commitment basis.
(c)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L and Note 4.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2010

U.S. Government Sponsored Agency Mortgage-Backed Securities	73.4	%
U.S. Government Sponsored Agency Securities	25.2
U.S. Treasury Securities	0.8
Foreign Sovereign Debt	0.4
Money Market Funds Plus Other Assets Less Liabilities	0.2

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

Invesco V.I. Government Securities Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $1,213,460,138)	$	1,241,159,664
Investments in affiliated money market funds, at value and cost		19,100,219
Total investments, at value (Cost $1,232,560,357)		1,260,259,883
Receivables for:
Investments sold		5,037,078
Variation margin		776,631
Fund shares sold		3,024,692
Dividends and interest		5,078,270
Fund expenses absorbed		24,330
Principal paydowns		8,674
Investment for trustee deferred compensation and retirement plans		43,185
Other assets		1,817
Total assets		1,274,254,560
Liabilities:
Payables for:
Investments purchased		29,594,145
Fund shares reacquired		164,199
Amount due custodian		164,767
Accrued fees to affiliates		755,578
Accrued other operating expenses		66,353
Trustee deferred compensation and retirement plans		133,491
Total liabilities		30,878,533
Net assets applicable to shares outstanding	$	1,243,376,027
Net assets consist of:
Shares of beneficial interest	$	1,175,041,120
Undistributed net investment income		68,477,403
Undistributed net realized gain (loss)		(37,597,391	)
Unrealized appreciation		37,454,895
	$	1,243,376,027
Net Assets:
Series I	$	1,227,714,061
Series II	$	15,661,966
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		97,696,079
Series II		1,255,016
Series I:
Net asset value per share	$	12.57
Series II:
Net asset value per share	$	12.48

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Interest	$	17,267,791
Dividends from affiliated money market funds		9,961
Total investment income		17,277,752
Expenses:
Advisory fees		2,792,488
Administrative services fees		1,641,561
Custodian fees		35,756
Distribution fees — Series II		17,564
Transfer agent fees		8,672
Trustees’ and officers’ fees and benefits		29,465
Other		86,881
Total expenses		4,612,387
Less: Fees waived		(178,250	)
Net expenses		4,434,137
Net investment income		12,843,615
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		916,897
Futures contracts		15,835,472
		16,752,369
Change in net unrealized appreciation of:
Investment securities		7,377,069
Futures contracts		23,850,574
		31,227,643
Net realized and unrealized gain		47,980,012
Net increase in net assets resulting from operations	$	60,823,627

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

Invesco V.I. Government Securities Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	12,843,615		$	46,745,306
Net realized gain		16,752,369			6,396,776
Change in net unrealized appreciation (depreciation)		31,227,643			(58,197,138	)
Net increase (decrease) in net assets resulting from operations		60,823,627			(5,055,056	)
Distributions to shareholders from net investment income:
Series I		—			(60,184,129	)
Series II		—			(678,455	)
Total distributions from net investment income		—			(60,862,584	)
Distributions to shareholders from net realized gains:
Series I		—			(43,257,923	)
Series II		—			(522,035	)
Total distributions from net realized gains		—			(43,779,958	)
Share transactions–net:
Series I		(25,378,481	)		(290,464,747	)
Series II		502,170			(4,570,136	)
Net increase (decrease) in net assets resulting from share transactions		(24,876,311	)		(295,034,883	)
Net increase (decrease) in net assets		35,947,316			(404,732,481	)
Net assets:
Beginning of period		1,207,428,711			1,612,161,192
End of period (includes undistributed net investment income of $68,477,403 and $55,633,788, respectively)	$	1,243,376,027		$	1,207,428,711

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Government Securities Fund, formerly AIM V.I. Government Securities Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is total return, comprised of current income and capital appreciation.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.

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

Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.

Invesco V.I. Government Securities Fund

	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE.
	Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

Invesco V.I. Government Securities Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Other Risks — The Funds may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the underlying fund holding securities of such issuer might not be able to recover its investment from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government.
J.	Dollar Roll and Forward Commitment Transactions — The Fund may engage in dollar roll and forward commitment transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. These transactions are often conducted on a to be announced (“TBA”) basis. In a TBA mortgage-backed transaction, the seller does not specify the particular securities to be delivered. Rather, a Fund agrees to accept any security that meets specified terms, such as an agreed upon issuer, coupon rate and terms of the underlying mortgages. TBA mortgage-backed transactions generally settle once a month on a specific date.
	In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to purchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price and future date. The mortgage-backed securities to be purchased will bear the same coupon as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. Based on the typical structure of dollar roll transactions by the Fund, the dollar roll transactions are accounted for as financing transactions in which the Fund receives compensation as either a “fee” or a “drop”. “Fee” income which is agreed upon amongst the parties at the commencement of the dollar roll and the “drop” which is the difference between the selling price and the repurchase price of the mortgage-backed securities are amortized to income. During the period between the sale and purchase settlement dates, the Fund will not be entitled to receive interest and principal payments on securities purchased and not yet settled. Proceeds of the sale may be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. Dollar roll transactions are considered borrowings under the 1940 Act.
	Forward commitment transactions involve commitments by the Fund to acquire or sell TBA mortgage-backed securities from/to a financial institution, such as a bank or broker-dealer at a specified future date and amount. The TBA mortgage-backed security is marked to market until settlement and the unrealized appreciation or depreciation is recorded in the statement of operations.
	At the time the Fund enters into the dollar roll or forward commitment transaction, mortgage-backed securities or other liquid assets held by the Fund having a dollar value equal to the purchase price or in an amount sufficient to honor the forward commitment will be segregated.
	Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed the return on the securities sold.
	Forward commitment transactions involve the risk that a counter-party to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Settlement dates of forward commitment transactions may be a month or more after entering into these transactions and as a result the market values of the securities may vary from the purchase or sale prices. Therefore, forward commitment transactions may increase the Fund’s overall interest rate exposure.
K.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of

Invesco V.I. Government Securities Fund

	the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
L.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
M.	Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.50%
Over $250 million		0	.45%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.73% and Series II shares to 0.98% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $178,250.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $144,518 for accounting and fund administrative services and reimbursed $1,497,043 for services provided by insurance companies.

  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

Invesco V.I. Government Securities Fund

providing such services. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	19,100,219	$	—	$	—	$	19,100,219
U.S. Treasury Securities		—		10,270,219		—		10,270,219
U.S. Government Sponsored Agency Securities		—		1,226,594,734		—		1,226,594,734
Foreign Government Debt Securities		—		4,294,711		—		4,294,711
	$	19,100,219	$	1,241,159,664	$	—	$	1,260,259,883
Futures*		9,755,369		—		—		9,755,369
Total Investments	$	28,855,588	$	1,241,159,664	$	—	$	1,270,015,252

*  Unrealized appreciation.

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	9,803,583	$	(48,214	)

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

Invesco V.I. Government Securities Fund

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain (Loss) on
	Statement of Operations
	Futures*
Realized Gain
Interest rate risk	$	15,835,472
Change in Unrealized Appreciation
Interest rate risk	$	23,850,574
Total	$	39,686,046

*  The average value of futures outstanding during the period was $504,048,353.

Open Futures Contracts
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
U.S. Treasury 5 Year Notes		1,725		September-2010/Long	$	204,156,446		$	2,747,737
U.S. Treasury 10 Year Notes		918		September-2010/Long		112,498,031			1,479,925
U.S. Treasury 30 Year Bonds		676		September-2010/Long		86,190,000			1,556,515
Ultra U.S. Treasury Bonds		792		September-2010/Long		107,563,500			4,018,036
Subtotal					$	510,407,977		$	9,802,213
U.S. Treasury 2 Year Notes		44		September-2010/Short		(9,628,437	)		(46,844	)
Total					$	500,779,540		$	9,755,369

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $2,743 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. A Fund may not purchase additional securities when any borrowings from banks exceeds 5% of the Fund’s total assets.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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.

Invesco V.I. Government Securities Fund

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	56,450,047

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $438,827,278 and $390,526,481, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $0 and $13,497,604, 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	$	29,445,135
Aggregate unrealized (depreciation) of investment securities		(1,876,898	)
Net unrealized appreciation of investment securities	$	27,568,237
Cost of investments for tax purposes is $1,232,691,646.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		10,138,954		$	123,673,332			13,378,824		$	173,338,232
Series II		238,247			2,928,612			368,564			4,730,767
Issued as reinvestment of dividends:
Series I		—			—			8,534,823			103,442,051
Series II		—			—			99,626			1,200,490
Reacquired:
Series I		(12,253,111	)		(149,051,813	)		(44,095,427	)		(567,245,030	)
Series II		(200,144	)		(2,426,442	)		(821,161	)		(10,501,393	)
Net increase (decrease) in share activity		(2,076,054	)	$	(24,876,311	)		(22,534,751	)	$	(295,034,883	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 94% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Government Securities Fund

NOTE 10—Financial Highlights

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

																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	11.95	$	0.13	$	0.49		$	0.62		$	—		$	—		$	—		$	12.57		5.19	%	$	1,227,714		0.73	%(d)		0.76	%(d)		2.12	%(d)		34	%
Year ended 12/31/09		13.05		0.45		(0.43	)		0.02			(0.65	)		(0.47	)		(1.12	)		11.95		(0.01	)		1,192,967		0.73			0.75			3.47			55
Year ended 12/31/08		12.06		0.50		0.96			1.46			(0.47	)		—			(0.47	)		13.05		12.22			1,591,799		0.73			0.76			3.96			109
Year ended 12/31/07		11.80		0.59		0.16			0.75			(0.49	)		—			(0.49	)		12.06		6.43			1,169,985		0.73			0.76			4.93			106
Year ended 12/31/06		11.87		0.55		(0.13	)		0.42			(0.49	)		—			(0.49	)		11.80		3.55			907,403		0.71			0.77			4.62			89
Year ended 12/31/05		12.07		0.45		(0.25	)		0.20			(0.40	)		—			(0.40	)		11.87		1.66			812,824		0.85			0.88			3.68			174
Series II
Six months ended 06/30/10		11.88		0.11		0.49			0.60			—			—			—			12.48		5.05			15,662		0.98	(d)		1.01	(d)		1.87	(d)		34
Year ended 12/31/09		12.97		0.41		(0.43	)		(0.02	)		(0.60	)		(0.47	)		(1.07	)		11.88		(0.26	)		14,462		0.98			1.00			3.22			55
Year ended 12/31/08		11.99		0.46		0.97			1.43			(0.45	)		—			(0.45	)		12.97		11.98			20,362		0.98			1.01			3.71			109
Year ended 12/31/07		11.74		0.56		0.15			0.71			(0.46	)		—			(0.46	)		11.99		6.11			18,770		0.98			1.01			4.68			106
Year ended 12/31/06		11.81		0.52		(0.13	)		0.39			(0.46	)		—			(0.46	)		11.74		3.28			16,218		0.96			1.02			4.37			89
Year ended 12/31/05		12.01		0.41		(0.24	)		0.17			(0.37	)		—			(0.37	)		11.81		1.41			18,863		1.10			1.13			3.43			174

(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $1,209,446 and $14,167 for Series I and Series II shares, respectively.

Invesco V.I. Government Securities Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	1,051.90	$	3.71	$	1,021.17	$	3.66		0.73	%
Series II		1,000.00		1,050.50		4.98		1,019.93		4.91		0.98

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Government Securities Fund

Approval of Investment Advisory and Sub-advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Government Securities Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, and against the Lipper VA Underlying Funds — General U.S. Government Index. The Board noted that the performance of Series I shares of the Fund was in the fifth quintile of its performance universe for the one year period and the second quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the fun was below the performance of the Index for the one year period and above for the three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other mutual funds or client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board also considered the effect this expense limitation would have on the Fund’s estimated total expenses.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Government Securities Fund

          Invesco V.I. High Yield Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIHYI-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	3.64	%*
Series II Shares	3.65	*
Barclays Capital U.S. Aggregate Index6 (Broad Market Index)	5.33
Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index6 (Style-Specific Index)	4.45
Barclays Capital U.S. Corporate High Yield Index6 (Former Style-Specific Index)	4.51
Lipper VUF High Current Yield Bond Funds Category Average6 (Peer Group)	3.38

6	Lipper Inc.
*	Performance includes litigation proceeds. Had these proceeds not been received, total return would have been lower.

During the reporting period, the Fund elected to use the Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index as its style-specific index rather than the Barclays Capital U.S. Corporate High Yield Index because it will better align the Fund’s style-specific index with the Fund’s investment process and restrictions.

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

     The Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index is an unmanaged index that covers U.S. corporate, fixed-rate, non-investment grade debt with at least one year to maturity and at least $150 million in par outstanding. Index weights for each issuer are capped at 2%.

     The Barclays Capital U.S. Corporate High Yield Index is an unmanaged index that covers the universe of fixed-rate, noninvestment-grade debt.

     The Lipper VUF High Current Yield Bond Funds Category Average represents an average of all of the variable insurance underlying funds in the Lipper High Current Yield Bond Funds category.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (5/1/98)	2.97	%
10 Years	3.75
5 Years	5.97
1 Year	25.93
Series II Shares
10 Years	3.51	%
5 Years	5.70
1 Year	25.61

Performance includes litigation proceeds. Had these proceeds not been received, total return would have been lower.

Series II shares incepted on March 26, 2002. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.95% and 1.20%, 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 Series I and Series II shares was 1.22% and 1.47%, 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.

     Invesco V.I. High Yield Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     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 April 30, 2011. See current prospectus for more information.

Invesco V.I. High Yield Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Principal
	Amount		Value
U.S. Dollar Denominated Bonds & Notes–91.29%
Advertising–0.21%
Lamar Media Corp., Sr. Gtd. Sub. Notes, 7.88%, 04/15/18(b)	$	105,000	$	106,050
Aerospace & Defense–1.73%
BE Aerospace, Inc., Sr. Unsec. Notes, 8.50%, 07/01/18		180,000		190,800
Bombardier Inc. (Canada), Sr. Notes, 7.50%, 03/15/18(b)		30,000		30,975
7.75%, 03/15/20(b)		120,000		124,800
Hexcel Corp., Sr. Unsec. Sub. Global Notes, 6.75%, 02/01/15		275,000		270,875
Triumph Group, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 11/15/17		275,000		264,687
				882,137
Airlines–3.48%
American Airlines Pass Through Trust, Series 2009-1A, Sec. Pass Through Ctfs., 10.38%, 07/02/19		69,518		77,947
Continental Airlines Inc., Sr. Unsec. Notes, 8.75%, 12/01/11		185,000		187,322
Series 2000-1, Class C-1, Sec. Sub. Pass Through Ctfs., 8.50%, 05/01/11		37,855		37,855
Series 2000-2, Class B, Sec. Sub. Pass Through Ctfs., 8.31%, 04/02/18		127,052		124,193
Series 2001-1, Class B, Sec. Sub. Pass Through Ctfs., 7.37%, 12/15/15		109,422		104,498
Series 2007-1, Class C, Sec. Sub. Global Pass Through Ctfs., 7.34%, 04/19/14		207,992		200,192
Series 2009-1, Class A, Pass Through Ctfs., 9.00%, 07/08/16		58,787		64,225
Series 2009-1, Class B, Global Pass Through Ctfs., 9.25%, 05/10/17		140,000		146,388
Delta Air Lines, Inc., Sr. Sec. Notes, 9.50%, 09/15/14(b)		45,000		47,475
Series 2002-1, Class C, Sec. Pass Through Ctfs., 7.78%, 01/02/12		124,468		124,779
Series 2007-1, Class C, Sec. Global Pass Through Ctfs., 8.95%, 08/10/14		143,139		143,497
UAL Corp., Series 2007-1, Class B, Sr. Sec. Gtd. Global Pass Through Ctfs., 7.34%, 07/02/19(b)		123,992		105,083
Series 2009-1, Sr. Sec. Gtd. Global Pass Through Ctfs., 10.40%, 11/01/16		180,287		195,611
Series 2009-2A, Sec. Gtd. Global Pass Through Ctfs., 9.75%, 01/15/17		150,000		161,250
United Air Lines Inc., Sr. Sec. Gtd. Notes, 9.88%, 08/01/13(b)		50,000		51,750
				1,772,065
Alternative Carriers–2.04%
Global Crossing UK Finance PLC (United Kingdom), Sr. Sec. Gtd. Global Notes, 10.75%, 12/15/14		75,000		77,250
Intelsat Intermediate Holding Co. S.A. (Bermuda), Sr. Unsec. Gtd. Global Notes, 9.50%, 02/01/15		315,000		322,875
Intelsat Jackson Holdings S.A. (Bermuda), Sr. Unsec. Gtd. Global Notes, 11.25%, 06/15/16		315,000		338,625
Level 3 Financing Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 11/01/14		330,000		301,125
				1,039,875
Aluminum–1.49%
Century Aluminum Co., Sr. Sec. Notes, 8.00%, 05/15/14		430,630		406,945
Novelis Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 7.25%, 02/15/15		359,000		350,025
				756,970
Apparel Retail–1.04%
Collective Brands, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.25%, 08/01/13		350,000		354,375
Limited Brands Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 06/15/19		140,000		151,375
Sr. Unsec. Gtd. Notes, 7.00%, 05/01/20		25,000		25,281
				531,031

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Apparel, Accessories & Luxury Goods–1.96%
Hanesbrands, Inc., Series B, Sr. Unsec. Gtd. Floating Rate Global Notes, 4.12%, 12/15/14(c)	$	225,000	$	213,750
Levi Strauss & Co., Sr. Unsec. Global Notes, 8.88%, 04/01/16		225,000		234,563
Perry Ellis International, Inc., Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.88%, 09/15/13		265,000		269,637
Quiksilver Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 04/15/15		305,000		278,312
				996,262
Auto Parts & Equipment–1.06%
Allison Transmission Inc., Sr. Unsec. Gtd. Notes, 11.00%, 11/01/15(b)		255,000		267,113
Tenneco Inc., Sr. Unsec. Gtd. Global Notes, 8.13%, 11/15/15		270,000		273,375
				540,488
Automobile Manufacturers–1.58%
Ford Motor Co., Sr. Unsec. Conv. Notes, 4.25%, 11/15/16		165,000		206,456
Sr. Unsec. Global Notes, 7.45%, 07/16/31		375,000		339,375
Motors Liquidation Co., Sr. Unsec. Global Notes, 7.20%, 01/15/11(d)		445,000		136,837
Sr. Unsec. Notes, 8.38%, 07/15/33(d)		375,000		120,938
				803,606
Broadcasting–1.27%
Allbritton Communications Co., Sr. Unsec. Notes, 8.00%, 05/15/18(b)		150,000		148,875
Belo Corp., Sr. Unsec. Notes, 6.75%, 05/30/13		160,000		162,800
8.00%, 11/15/16		30,000		30,938
Clear Channel Worldwide Holdings Inc., Sr. Unsec. Gtd. Notes, 9.25%, 12/15/17(b)		170,000		171,487
LIN Television Corp., Sr. Unsec. Gtd. Notes, 8.38%, 04/15/18(b)		130,000		130,325
				644,425
Building Products–4.38%
AMH Holdings Inc., Sr. Unsec. Global Notes, 11.25%, 03/01/14		505,000		517,941
Building Materials Corp. of America, Sr. Gtd. Notes, 7.50%, 03/15/20(b)		130,000		126,750
Sr. Sec. Notes, 7.00%, 02/15/20(b)		160,000		159,200
Gibraltar Industries Inc., Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 12/01/15		200,000		196,000
Goodman Global Group Inc., Sr. Disc. Notes, 12.48%, 12/15/14(b)(e)		500,000		305,000
Nortek Inc., Sr. Sec. Global Notes, 11.00%, 12/01/13		255,955		268,113
Ply Gem Industries Inc., Sr. Gtd. Sub. Notes, 13.13%, 07/15/14(b)		210,000		217,087
Sr. Sec. Gtd. First & Second Lien Global Notes, 11.75%, 06/15/13		335,000		350,912
USG Corp., Sr. Unsec. Gtd. Notes, 9.75%, 08/01/14(b)		85,000		87,550
				2,228,553
Cable & Satellite–1.89%
Cablevision Systems Corp., Sr. Unsec. Notes, 8.63%, 09/15/17(b)		135,000		138,375
7.75%, 04/15/18		30,000		30,075
8.00%, 04/15/20		20,000		20,275
Hughes Network Systems LLC/HNS Finance Corp., Sr. Unsec. Gtd. Global Notes, 9.50%, 04/15/14		205,000		207,050
Sirius XM Radio Inc., Sr. Unsec. Gtd. Notes, 8.75%, 04/01/15(b)		275,000		274,656
Virgin Media Finance PLC (United Kingdom), Sr. Unsec. Gtd. Global Notes, 8.38%, 10/15/19		100,000		102,750
Series 1, Sr. Unsec. Gtd. Global Notes, 9.50%, 08/15/16		180,000		190,575
				963,756
Casinos & Gaming–4.60%
Great Canadian Gaming Corp. (Canada), Sr. Unsec. Gtd. Sub. Notes, 7.25%, 02/15/15(b)		110,000		109,450
Harrah’s Operating Co. Inc., Sr. Sec. Gtd. Global Notes, 11.25%, 06/01/17		175,000		184,187
Sr. Sec. Notes, 12.75%, 04/15/18(b)		45,000		42,750
Sr. Unsec. Gtd. Global Bonds, 5.63%, 06/01/15		275,000		178,750

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Casinos & Gaming–(continued)
MGM Resorts International, Sr. Sec. Global Notes, 10.38%, 05/15/14	$	65,000	$	70,525
11.13%, 11/15/17		65,000		71,825
Sr. Sec. Gtd. Notes, 13.00%, 11/15/13		130,000		149,825
9.00%, 03/15/20(b)		50,000		51,250
Sr. Unsec. Gtd. Conv. Notes, 4.25%, 04/15/15(b)		95,000		75,644
Sr. Unsec. Gtd. Global Notes, 6.75%, 09/01/12		190,000		177,175
6.63%, 07/15/15		223,000		177,285
Sr. Unsec. Gtd. Notes, 5.88%, 02/27/14		10,000		8,350
Midwest Gaming Borrower LLC/Midwest Finance Corp., Sr. Sec. Notes, 11.63%, 04/15/16(b)		45,000		44,550
Pinnacle Entertainment, Inc., Sr. Unsec. Gtd. Notes, 8.63%, 08/01/17(b)		175,000		179,375
Scientific Games International Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.25%, 06/15/19		45,000		46,350
Seneca Gaming Corp., Sr. Unsec. Global Notes, 7.25%, 05/01/12		60,000		59,175
Series B, Sr. Unsec. Global Notes, 7.25%, 05/01/12		215,000		212,044
Snoqualmie Entertainment Authority, Sr. Sec. Floating Rate Notes, 4.14%, 02/01/14(b)(c)		155,000		124,387
Sr. Sec. Notes, 9.13%, 02/01/15(b)		220,000		186,450
Wynn Las Vegas Capital LLC/Corp., Sec. First Mortgage Notes, 7.88%, 11/01/17(b)		130,000		130,650
Sr. Sec. Gtd. First Mortgage Global Notes, 6.63%, 12/01/14		60,000		60,450
				2,340,447
Coal & Consumable Fuels–0.14%
CONSOL Energy Inc., Sr. Unsec. Gtd. Notes, 8.00%, 04/01/17(b)		35,000		36,487
8.25%, 04/01/20(b)		35,000		36,794
				73,281
Commodity Chemicals–0.02%
Westlake Chemical Corp., Sr. Unsec. Gtd. Notes, 6.63%, 01/15/16		10,000		9,638
Computer Storage & Peripherals–0.17%
Seagate HDD Cayman (Cayman Islands), Sr. Unsec. Gtd. Notes, 6.88%, 05/01/20(b)		90,000		85,725
Construction & Engineering–0.86%
American Residential Services LLC, Sr. Sec. Notes, 12.00%, 04/15/15(b)		95,000		96,900
MasTec, Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 02/01/17		350,000		341,250
				438,150
Construction Materials–1.79%
Cemex Finance LLC, Sr. Sec. Gtd. Bonds, 9.50%, 12/14/16(b)		195,000		189,126
Cemex S.A.B. de C.V. (Mexico), Unsec. Sub. Conv. Notes, 4.88%, 03/15/15(b)		100,000		99,375
Texas Industries, Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 07/15/13		125,000		121,875
7.25%, 07/15/13		255,000		248,625
U.S. Concrete, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.38%, 04/01/14(d)		475,000		251,750
				910,751
Construction, Farm Machinery & Heavy Trucks–1.77%
Case New Holland Inc., Sr. Notes, 7.88%, 12/01/17(b)		260,000		265,200
Sr. Unsec. Gtd. Global Notes, 7.75%, 09/01/13		75,000		77,250
CNH America LLC, Sr. Unsec. Gtd. Notes, 7.25%, 01/15/16		60,000		60,450
Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21		290,000		295,075
Oshkosh Corp., Sr. Unsec. Gtd. Global Notes, 8.50%, 03/01/20		150,000		156,375
Terex Corp., Sr. Unsec. Global Notes, 10.88%, 06/01/16		45,000		48,600
				902,950
Consumer Finance–3.31%
Ally Financial Inc., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/01/31		431,000		405,140
Sr. Unsec. Gtd. Notes, 8.00%, 03/15/20(b)		345,000		340,687

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Consumer Finance–(continued)
Capital One Capital VI, Jr. Ltd. Gtd. Sub. Cum. Trust Pfd. Securities, 8.88%, 05/15/40	$	205,000	$	211,150
Ford Motor Credit Co. LLC, Sr. Unsec. Notes, 7.00%, 04/15/15		100,000		99,500
8.00%, 12/15/16		150,000		153,375
8.13%, 01/15/20		355,000		363,875
National Money Mart Co. (Canada), Sr. Gtd. Notes, 10.38%, 12/15/16(b)		110,000		112,200
				1,685,927
Data Processing & Outsourced Services–1.51%
First Data Corp., Sr. Unsec. Gtd. Global Notes, 9.88%, 09/24/15		210,000		159,600
9.88%, 09/24/15		155,000		117,800
SunGard Data Systems Inc., Sr. Unsec. Gtd. Global Notes, 9.13%, 08/15/13		391,000		400,286
Sr. Unsec. Gtd. Sub. Global Notes, 10.25%, 08/15/15		90,000		92,925
				770,611
Distillers & Vintners–0.22%
Constellation Brands Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/15/17		110,000		112,200
Diversified Banks–0.20%
Royal Bank of Scotland Group PLC (United Kingdom), Sr. Unsec. Global Notes, 6.40%, 10/21/19		100,000		101,506
Diversified Metals & Mining–1.00%
FMG Finance Pty. Ltd. (Australia), Sr. Sec. Gtd. Notes, 10.63%, 09/01/16(b)		270,000		300,375
Vedanta Resources PLC (United Kingdom), Sr. Unsec. Notes, 9.50%, 07/18/18(b)		195,000		209,497
				509,872
Diversified Support Services–1.46%
Education Management LLC/Education Management Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.75%, 06/01/14		105,000		104,737
Mobile Mini, Inc., Sr. Unsec. Gtd. Global Notes, 9.75%, 08/01/14		60,000		61,650
Travelport LLC, Sr. Unsec. Gtd. Global Notes, 9.88%, 09/01/14		375,000		380,625
Sr. Unsec. Gtd. Sub. Global Notes, 11.88%, 09/01/16		190,000		198,075
				745,087
Drug Retail–0.36%
General Nutrition Centers Inc., Sr. Unsec. Gtd. PIK Floating Rate Global Notes, 5.75%, 03/15/14(c)		200,000		184,500
Electric Utilities–0.81%
Elwood Energy LLC, Sr. Sec. Global Notes, 8.16%, 07/05/26		126,262		119,633
LSP Energy L.P./LSP Batesville Funding Corp., Series C, Sr. Sec. Mortgage Bonds, 7.16%, 01/15/14		99,036		86,778
Series D, Sr. Sec. Bonds, 8.16%, 07/15/25		275,000		204,188
				410,599
Electronic Manufacturing Services–0.07%
Jabil Circuit, Inc., Sr. Unsec. Notes, 7.75%, 07/15/16		35,000		36,750
Food Retail–0.35%
New Albertsons Inc., Sr. Unsec. Bonds, 8.00%, 05/01/31		205,000		178,094
Forest Products–0.10%
Weyerhaeuser Co., Sr. Unsec. Deb., 6.88%, 12/15/33		55,000		51,707
Gas Utilities–0.58%
Ferrellgas Escrow LLC/Ferrellgas Finance Escrow Corp., Sr. Unsec. Global Notes, 6.75%, 05/01/14		175,000		172,813
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20		120,000		121,800
				294,613
Health Care Equipment–0.54%
DJO Finance LLC/DJO Finance Corp., Sr. Unsec. Gtd. Global Notes, 10.88%, 11/15/14		260,000		274,300

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Health Care Facilities–2.94%
Community Health Systems Inc., Sr. Unsec. Gtd. Global Notes, 8.88%, 07/15/15	$	250,000	$	260,000
HCA, Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 02/15/20		195,000		201,825
Sr. Unsec. Global Notes, 6.38%, 01/15/15		195,000		182,325
Sr. Unsec. Notes, 6.75%, 07/15/13		185,000		182,225
7.19%, 11/15/15		155,000		141,825
Healthsouth Corp., Sr. Unsec. Gtd. Notes, 8.13%, 02/15/20		90,000		88,650
Psychiatric Solutions, Inc., Series 1, Sr. Unsec. Gtd. Sub. Global Notes, 7.75%, 07/15/15		95,000		98,444
Tenet Healthcare Corp., Sr. Unsec. Notes, 7.38%, 02/01/13		340,000		342,550
				1,497,844
Health Care Services–1.52%
DaVita Inc., Sr. Unsec. Gtd. Global Notes, 6.63%, 03/15/13		7,781		7,819
Multiplan Inc., Sr. Unsec. Sub. Notes, 10.38%, 04/15/16(b)		285,000		294,262
Universal Hospital Services Inc., Sr. Sec. PIK Global Notes, 8.50%, 06/01/15		225,000		222,188
Viant Holdings Inc., Sr. Unsec. Gtd. Sub. Notes, 10.13%, 07/15/17(b)		247,000		251,323
				775,592
Health Care Supplies–0.27%
Inverness Medical Innovations Inc., Sr. Unsec. Gtd. Sub. Notes, 9.00%, 05/15/16		135,000		136,013
Homebuilding–0.57%
M/I Homes, Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 04/01/12		145,000		144,275
TOUSA, Inc., Sr. Unsec. Gtd. Global Notes, 9.00%, 07/01/10(d)		60,000		38,550
9.00%, 07/01/10(d)		163,000		104,728
				287,553
Hotels, Resorts & Cruise Lines–0.81%
Royal Caribbean Cruises Ltd., Sr. Unsec. Global Notes, 6.88%, 12/01/13		40,000		39,100
Sr. Unsec. Notes,
7.25%, 03/15/18		85,000		82,025
Royal Caribbean Cruises Ltd. (Trinidad), Sr. Unsec. Notes, 7.50%, 10/15/27		140,000		123,550
Starwood Hotels & Resorts Worldwide, Inc., Sr. Unsec. Notes, 7.15%, 12/01/19		165,000		168,300
				412,975
Household Products–0.48%
Central Garden and Pet Co., Sr. Gtd. Sub. Notes, 8.25%, 03/01/18		245,000		244,081
Housewares & Specialties–0.56%
Yankee Acquisition Corp., Series B, Sr. Gtd. Global Notes, 8.50%, 02/15/15		280,000		282,800
Independent Power Producers & Energy Traders–1.45%
AES Corp. (The), Sr. Unsec. Global Notes, 8.00%, 10/15/17		65,000		65,975
Sr. Unsec. Notes, 9.75%, 04/15/16(b)		75,000		80,906
AES Red Oak LLC, Series A, Sr. Sec. Bonds, 8.54%, 11/30/19		237,829		236,045
NRG Energy, Inc., Sr. Unsec. Gtd. Notes, 7.38%, 02/01/16		200,000		200,500
7.38%, 01/15/17		155,000		153,838
				737,264
Industrial Conglomerates–0.01%
Aleris International Inc., Sr. Unsec. Gtd. PIK Global Notes, 9.00%, 12/15/14(d)		215,000		2,145
Indalex Holding Corp., Series B, Sr. Sec. Gtd. Global Notes, 11.50%, 02/01/14(d)		230,000		2,300
				4,445
Industrial Machinery–0.27%
Cleaver-Brooks Inc., Sr. Sec. Notes, 12.25%, 05/01/16(b)		75,000		74,062
Columbus McKinnon Corp., Sr. Unsec. Gtd. Sub. Global Notes, 8.88%, 11/01/13		63,000		63,788
				137,850

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Integrated Oil & Gas–0.23%
Lukoil International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 7.25%, 11/05/19(b)	$	115,000	$	118,726
Integrated Telecommunication Services–0.67%
Hawaiian Telcom Communications Inc., Series B, Sr. Unsec. Gtd. Global Notes, 9.75%, 05/01/13(d)		360,000		6,525
Qwest Communications International Inc., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/18(b)		190,000		189,525
Wind Acquisition Finance S.A. (Luxembourg), Sr. Sec. Gtd. Sub. Notes, 11.75%, 07/15/17(b)		140,000		145,950
				342,000
Internet Software & Services–0.25%
Equinix Inc., Sr. Unsec. Notes, 8.13%, 03/01/18		125,000		128,438
Investment Banking & Brokerage–0.90%
Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19(b)		220,000		228,364
E*Trade Financial Corp., Sr. Unsec Global Notes, 7.38%, 09/15/13		95,000		84,075
Sr. Unsec. Notes, 7.88%, 12/01/15		165,000		146,850
				459,289
Leisure Facilities–0.58%
Universal City Development Partners Ltd., Sr. Notes, 8.88%, 11/15/15(b)		265,000		268,312
Sr. Sub. Notes, 10.88%, 11/15/16(b)		25,000		26,063
				294,375
Life & Health Insurance–0.63%
Aflac Inc., Sr. Unsec. Notes, 6.90%, 12/17/39		185,000		191,505
Pacific Life Insurance Co., Sub. Notes, 9.25%, 06/15/39(b)		105,000		129,084
				320,589
Life Sciences Tools & Services–0.24%
Patheon Inc. (Canada), Sr. Sec. Notes, 8.63%, 04/15/17(b)		125,000		124,063
Movies & Entertainment–0.76%
AMC Entertainment Inc., Sr. Unsec. Global Notes, 8.75%, 06/01/19		10,000		10,100
Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 03/01/14		275,000		265,031
Cinemark USA Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 06/15/19		95,000		95,950
Live Nation Entertainment Inc., Sr. Unsec. Notes, 8.13%, 05/15/18(b)		15,000		14,513
				385,594
Multi-Line Insurance–2.77%
American International Group, Inc., Jr. Sub. Variable Rate Global Notes, 8.18%, 05/15/58(c)		405,000		321,975
Sr. Unsec. Global Notes, 6.25%, 05/01/36		100,000		79,625
Hartford Financial Services Group Inc. (The), Jr. Unsec. Sub. Variable Rate Deb., 8.13%, 06/15/38(c)		175,000		160,780
Sr. Unsec. Global Notes, 5.95%, 10/15/36		90,000		78,723
Liberty Mutual Group Inc., Sr. Unsec. Bonds, 7.50%, 08/15/36(b)		95,000		92,670
Sr. Unsec. Notes, 6.70%, 08/15/16(b)		70,000		75,843
Liberty Mutual Insurance Co., Unsec. Sub. Notes, 8.50%, 05/15/25(b)		135,000		153,981
Nationwide Mutual Insurance Co., Sub. Notes, 9.38%, 08/15/39(b)		385,000		445,585
				1,409,182
Office Services & Supplies–0.91%
IKON Office Solutions, Inc., Sr. Unsec. Notes, 6.75%, 12/01/25		230,000		226,550
7.30%, 11/01/27		230,000		237,188
				463,738
Oil & Gas Drilling–0.16%
Pride International Inc., Sr. Unsec. Global Notes, 7.38%, 07/15/14		80,000		79,500
Oil & Gas Equipment & Services–0.89%
Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17		220,000		210,650
Key Energy Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 12/01/14		245,000		243,775
				454,425

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Oil & Gas Exploration & Production–6.97%
Chaparral Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 12/01/15	$	105,000	$	98,438
8.88%, 02/01/17		155,000		144,538
Chesapeake Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 06/15/15		174,000		179,812
6.88%, 11/15/20		300,000		305,250
Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17		160,000		161,600
Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 10/01/19		80,000		84,200
Sr. Unsec. Gtd. Notes, 7.38%, 10/01/20(b)		100,000		99,500
Delta Petroleum Corp., Sr. Unsec. Gtd. Global Notes, 7.00%, 04/01/15		400,000		304,000
Encore Acquisition Co., Sr. Gtd. Sub. Notes, 9.50%, 05/01/16		185,000		195,869
Forest Oil Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 06/15/19		175,000		170,188
McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14		350,000		359,187
Newfield Exploration Co., Sr. Unsec. Sub. Global Notes, 7.13%, 05/15/18		220,000		218,900
Petrohawk Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.88%, 06/01/15		325,000		327,437
Plains Exploration & Production Co., Sr. Unsec. Gtd. Notes, 7.75%, 06/15/15		90,000		89,325
7.63%, 06/01/18		95,000		93,456
8.63%, 10/15/19		100,000		101,000
Range Resources Corp., Sr. Unsec. Gtd. Sub. Notes, 7.50%, 05/15/16		80,000		81,400
7.50%, 10/01/17		215,000		217,956
Southwestern Energy Co., Sr. Gtd. Global Notes, 7.50%, 02/01/18		295,000		314,912
				3,546,968
Oil & Gas Refining & Marketing–1.41%
Coffeyville Resources LLC, Sr. Sec. Gtd. Notes, 9.00%, 04/01/15(b)		40,000		39,800
Petroplus Finance Ltd. (Switzerland), Sr. Sec. Gtd. Notes, 6.75%, 05/01/14(b)		75,000		65,625
Tesoro Corp., Sr. Unsec. Gtd. Global Bonds, 6.50%, 06/01/17		175,000		161,875
Sr. Unsec. Gtd. Global Notes, 6.63%, 11/01/15		110,000		103,400
United Refining Co., Series 2, Sr. Unsec. Gtd. Global Notes, 10.50%, 08/15/12		380,000		348,650
				719,350
Oil & Gas Storage & Transportation–2.48%
Copano Energy LLC/ Capano Energy Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.13%, 03/01/16		255,000		253,725
Inergy L.P./Inergy Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/01/15		135,000		139,050
8.25%, 03/01/16		100,000		102,000
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp., Series B, Sr. Unsec. Gtd. Global Notes, 8.75%, 04/15/18		215,000		219,838
Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18		180,000		177,750
Regency Energy Partners L.P./Regency Energy Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.38%, 12/15/13		255,000		264,562
Teekay Corp. (Canada), Sr. Unsec. Global Notes, 8.50%, 01/15/20		105,000		105,000
				1,261,925
Other Diversified Financial Services–0.71%
International Lease Finance Corp., Sr. Unsec. Notes, 8.63%, 09/15/15(b)		105,000		100,275
8.75%, 03/15/17(b)		220,000		210,100
Series R, Sr. Unsec. Medium-Term Notes, 5.65%, 06/01/14		60,000		53,550
				363,925
Packaged Foods & Meats–0.30%
Chiquita Brands International, Inc., Sr. Unsec. Global Notes, 8.88%, 12/01/15		60,000		60,375
Del Monte Corp., Sr. Unsec. Gtd. Sub. Notes, 7.50%, 10/15/19(b)		30,000		30,825
Dole Food Co. Inc., Sr. Sec. Notes, 8.00%, 10/01/16(b)		60,000		60,300
				151,500

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Paper Packaging–0.60%
Cascades Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20	$	85,000	$	83,300
Graham Packaging Co. L.P./GPC Capital Corp. I, Sr. Unsec. Gtd. Notes, 8.25%, 01/01/17(b)		90,000		88,650
Sr. Unsec. Gtd. Sub. Global Notes, 9.88%, 10/15/14		130,000		132,600
				304,550
Paper Products–2.03%
Exopack Holding Corp., Sr. Unsec. Gtd. Global Notes, 11.25%, 02/01/14		210,000		211,838
Mercer International Inc., Sr. Unsec. Global Notes, 9.25%, 02/15/13		457,000		444,432
Neenah Paper, Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/15/14		179,000		176,315
P.H. Glatfelter Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/16(b)		90,000		88,614
PE Paper Escrow GmbH (Austria), Sr. Sec. Gtd. Notes, 12.00%, 08/01/14(b)		100,000		109,750
				1,030,949
Personal Products–0.51%
NBTY, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 7.13%, 10/01/15		259,000		259,000
Pharmaceuticals–0.34%
Elan Finance PLC/Elan Finance Corp. (Ireland), Sr. Unsec. Gtd. Notes, 8.75%, 10/15/16(b)		105,000		103,031
Valeant Pharmaceuticals International, Sr. Unsec. Notes, 7.63%, 03/15/20(b)		60,000		72,000
				175,031
Property & Casualty Insurance–0.30%
Crum & Forster Holdings Corp., Sr. Unsec. Global Notes, 7.75%, 05/01/17		150,000		152,250
Publishing–1.89%
Gannett Co. Inc., Sr. Unsec. Gtd. Notes, 8.75%, 11/15/14(b)		90,000		94,725
9.38%, 11/15/17(b)		275,000		292,188
MediMedia USA Inc., Sr. Sub. Notes, 11.38%, 11/15/14(b)		30,000		27,600
Nielsen Finance LLC/Co., Sr. Global Notes, 11.63%, 02/01/14		85,000		93,075
Sr. Unsec. Gtd. Sub. Disc. Global Notes, 12.50%, 08/01/16(f)		475,000		452,437
Reader’s Digest Association Inc. (The), Sr. Unsec. Gtd. Sub. Global Notes, 9.00%, 02/15/17(d)		210,000		0
				960,025
Railroads–0.47%
Kansas City Southern de Mexico S.A. de C.V. (Mexico), Sr. Unsec. Notes, 8.00%, 02/01/18(b)		230,000		236,509
Regional Banks–1.05%
Regions Financial Corp., Unsec. Sub. Notes, 7.38%, 12/10/37		170,000		147,847
Susquehanna Capital II, Jr. Gtd. Sub. Notes, 11.00%, 03/23/40		175,000		181,395
Zions Bancorp., Sr. Unsec. Notes, 7.75%, 09/23/14		200,000		202,875
				532,117
Semiconductor Equipment–0.51%
Amkor Technology Inc., Sr. Unsec. Gtd. Notes, 9.25%, 06/01/16		120,000		126,600
Sr. Unsec. Notes, 7.38%, 05/01/18(b)		135,000		132,300
				258,900
Semiconductors–1.47%
Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 9.25%, 04/15/18(b)		55,000		54,450
Sr. Unsec. Gtd. Global Notes, 8.88%, 12/15/14		435,000		401,287
MagnaChip Semiconductor S.A./MagnaChip Semiconductor Finance Co. (South Korea), Sr. Sec. Gtd. Global Notes, 6.88%, 12/15/11(d)		360,000		7,650
NXP BV/NXP Funding LLC (Netherlands), Sr. Sec. Gtd. Global Notes, 7.88%, 10/15/14		309,000		284,280
				747,667
Specialized Finance–1.21%
CIT Group Inc., Sr. Sec. Bonds, 7.00%, 05/01/14		305,000		288,987
7.00%, 05/01/17		360,000		327,600
				616,587

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Specialized REIT’s–0.17%
Senior Housing Properties Trust, Sr. Unsec. Notes, 6.75%, 04/15/20	$	85,000	$	84,256
Specialty Chemicals–1.14%
Huntsman International LLC, Sr. Gtd. Sub. Notes, 8.63%, 03/15/20(b)		40,000		36,950
Sr. Unsec. Gtd. Sub. Global Notes, 7.88%, 11/15/14		225,000		217,125
7.38%, 01/01/15		195,000		181,350
NewMarket Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/16		150,000		146,813
				582,238
Specialty Stores–0.27%
Michaels Stores, Inc., Sr. Unsec. Gtd. Global Notes, 10.00%, 11/01/14		130,000		135,525
Steel–0.65%
Metals USA, Inc., Sr. Sec. Gtd. Global Notes, 11.13%, 12/01/15		195,000		206,700
Steel Dynamics Inc., Sr. Unsec. Gtd. Global Notes, 7.75%, 04/15/16		120,000		121,200
				327,900
Textiles–0.21%
Invista, Sr. Unsec. Notes, 9.25%, 05/01/12(b)		104,000		105,430
Tires & Rubber–1.64%
Cooper Tire & Rubber Co., Sr. Unsec. Notes, 8.00%, 12/15/19		185,000		184,075
7.63%, 03/15/27		370,000		333,925
Goodyear Tire & Rubber Co. (The), Sr. Unsec. Gtd. Notes, 8.75%, 08/15/20		310,000		318,525
				836,525
Trading Companies & Distributors–1.08%
Ashtead Capital Inc., Sr. Sec. Gtd. Notes, 9.00%, 08/15/16(b)		150,000		149,250
H&E Equipment Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16		145,000		137,025
Sunstate Equipment Co., LLC, Sr. Unsec. Notes, 10.50%, 04/01/13(b)		90,000		77,850
United Rentals North America, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 7.75%, 11/15/13		25,000		24,313
7.00%, 02/15/14		170,000		160,225
				548,663
Trucking–0.15%
Hertz Corp. (The), Sr. Unsec. Gtd. Global Notes, 8.88%, 01/01/14		75,000		76,313
Wireless Telecommunication Services–3.87%
Clearwire Communications LLC/Clearwire Finance Inc., Sr. Sec. Gtd. Notes, 12.00%, 12/01/15(b)		400,000		405,000
Cricket Communications, Inc., Sr. Sec. Gtd. Global Notes, 7.75%, 05/15/16		100,000		102,500
Sr. Unsec. Gtd. Global Notes, 10.00%, 07/15/15		70,000		72,800
Digicel Group Ltd. (Bermuda), Sr. Unsec. Notes, 8.88%, 01/15/15(b)		145,000		142,462
Digicel Ltd. (Bermuda), Sr. Notes, 8.25%, 09/01/17(b)		155,000		154,419
Sr. Unsec. Notes, 12.00%, 04/01/14(b)		110,000		123,612
MetroPCS Wireless Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 11/01/14		105,000		108,413
9.25%, 11/01/14		95,000		98,088
SBA Telecommunications Inc., Sr. Unsec. Gtd. Notes, 8.25%, 08/15/19(b)		155,000		162,556
Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 11/15/28		100,000		83,250
Sprint Nextel Corp., Sr. Unsec. Notes, 8.38%, 08/15/17		515,000		516,287
				1,969,387
Total U.S. Dollar Denominated Bonds & Notes (Cost $45,192,287)				46,461,752
Non-U.S. Dollar Denominated Bonds & Notes–3.22%(g)
Croatia–0.31%
Agrokor, Sr. Unsec. Medium-Term Euro Notes, 10.00%, 12/07/16	EUR	130,000		156,618
Greece–0.27%
Yioula Glassworks S.A., Sr. Unsec. Gtd. Notes, 9.00%, 12/01/15(b)	EUR	200,000		138,210

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Ireland–0.14%
Ardagh Glass Finance PLC, Sr. Notes, 8.75%, 02/01/20(b)	EUR	60,000	$	73,203
Luxembourg–0.45%
Cirsa Funding Luxembourg S.A., Sr. Gtd. Euro Bonds, 8.75%, 05/15/18(b)	EUR	50,000		56,263
Hellas Telecommunications Luxembourg V, Sr. Sec. Gtd. Floating Rate Bonds, 4.84%, 10/15/12(b)(c)	EUR	459,411		169,976
				226,239
Netherlands–0.87%
Boats Investments B.V., Sec. PIK Medium-Term Euro Notes, 11.00%, 03/31/17	EUR	69,182		62,616
Carlson Wagonlit B.V., Sr. Gtd. Floating Rate Notes, 6.41%, 05/01/15(b)(c)	EUR	240,000		261,988
Ziggo Bond Co. B.V., Sr. Sec. Gtd. Notes, 8.00%, 05/15/18(b)	EUR	100,000		118,335
				442,939
Spain–0.23%
Campofrio Food Group S.A., Sr. Unsec. Gtd. Notes, 8.25%, 10/31/16(b)	EUR	100,000		119,252
United Kingdom–0.60%
Avis Finance Co. PLC, Sr. Unsec. Gtd. Floating Rate Euro Bonds, 3.28%, 07/31/13(c)	EUR	110,000		123,778
EC Finance PLC, Sr. Sec. Gtd. Bonds, 9.75%, 08/01/17(b)	EUR	50,000		60,130
Infinis PLC, Sr. Notes, 9.13%, 12/15/14(b)	GBP	80,000		121,297
				305,205
United States–0.35%
Hertz Corp. (The), Sr. Unsec. Gtd. Global Notes, 7.88%, 01/01/14	EUR	100,000		118,029
Hertz Holdings Netherlands B.V., Sr. Sec. Bonds, 8.50%, 07/31/15(b)	EUR	50,000		61,403
				179,432
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $1,874,901)				1,641,098
Bundled Securities–0.56%
Investment Banking & Brokerage–0.56%
Targeted Return Index Securities Trust, Series HY 2006-1, Sec. Variable Rate Bonds, (Acquired 08/15/08; Cost $274,050) (Cost $277,072)(b)(c)	$	290,000		285,444
	Shares
Preferred Stocks–0.53%
Diversified Banks–0.30%
Ally Financial, Inc., Series G, 7.00%–Conv. Pfd.(b)		195		151,582
Regional Banks–0.23%
Zions Bancorp., Series E–Variable Rate Pfd.(c)(h)		4,560		118,104
Total Preferred Stocks (Cost $174,992)				269,686
Common Stocks & Other Equity Interests–0.34%
Broadcasting–0.21%
Adelphia Communications Corp., 10.88%, 10/01/10(i)		—		4,100
Adelphia Recovery Trust, Series ACC-1(i)		318,570		8,601
Adelphia Recovery Trust, Series ARAHOVA(i)		109,170		25,928
Virgin Media Inc.		4,129		68,913
				107,542
Building Products–0.02%
Nortek, Inc.(h)		215		9,030
Publishing–0.11%
Dex One Corp.(h)		2,970		56,430
Total Common Stocks & Other Equity Interests (Cost $487,727)				173,002
	Principal
	Amount
Senior Secured Floating Rate Interest Loans–0.17%
Airlines–0.17%
Evergreen International Aviation, Inc., Sr. Gtd. Floating Rate First Lien Term Loans, 9.00%, 10/31/11 (Cost $90,569)(d)	$	90,569		85,097
	Shares
Money Market Funds–3.07%
Liquid Assets Portfolio–Institutional Class(j)		781,216		781,216
Premier Portfolio–Institutional Class(j)		781,216		781,216
Total Money Market Funds (Cost $1,562,432)				1,562,432
TOTAL INVESTMENTS–99.18% (Cost $49,659,980)				50,478,511
OTHER ASSETS LESS LIABILITIES–0.82%				416,367
NET ASSETS–100.00%			$	50,894,878

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

Invesco V.I. High Yield Fund

Investment Abbreviations:

Conv.	– Convertible
Ctfs.	– Certificates
Cum	– Cumulative
Deb.	– Debentures
Disc.	– Discounted
EUR	– Euro
GBP	– British Pound
Gtd.	– Guaranteed
Jr.	– Junior
Ltd.	– Limited
Pfd.	– Preferred
PIK	– Payment in Kind
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
Unsec.	– Unsecured
Unsub.	– Unsubordinated

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $12,803,509, which represented 25.16% of the Fund’s Net Assets.
(c)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(d)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at June 30, 2010 was $671,423, which represented 1.32% of the Fund’s Net Assets.
(e)	Zero coupon bond issued at a discount. The interest rate shown represents the yield to maturity at issue.
(f)	Step coupon bond issued at discount. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(g)	Foreign denominated security. Principal amount is denominated in currency indicated.
(h)	Non-income producing security.
(i)	Non-income producing security acquired as part of the Adelphia Communications bankruptcy reorganization.
(j)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By credit quality, based on Net Assets

as of June 30, 2010

AA	0.2	%
A	2.0
BBB	6.2
BB	28.3
B	43.2
CCC	13.9
NR	4.5
Cash	1.7

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

Invesco V.I. High Yield Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $48,097,548)	$	48,916,079
Investments in affiliated money market funds, at value and cost		1,562,432
Total investments, at value (Cost $49,659,980)		50,478,511
Cash		218,977
Foreign currencies, at value (Cost $151,632)		151,076
Receivables for:
Investments sold		83,100
Fund shares sold		112,217
Dividends and interest		1,032,731
Foreign currency contracts		62,298
Fund expenses absorbed		5,406
Investment for trustee deferred compensation and retirement plans		26,986
Other assets		1,827
Total assets		52,173,129
Liabilities:
Payables for:
Investments purchased		1,159,433
Fund shares reacquired		22,349
Accrued fees to affiliates		33,880
Accrued other operating expenses		29,666
Trustee deferred compensation and retirement plans		32,923
Total liabilities		1,278,251
Net assets applicable to shares outstanding	$	50,894,878
Net assets consist of:
Shares of beneficial interest	$	56,049,534
Undistributed net investment income		7,648,950
Undistributed net realized gain (loss)		(13,678,094	)
Unrealized appreciation		874,488
	$	50,894,878
Net Assets:
Series I	$	50,463,979
Series II	$	430,899
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		9,335,469
Series II		79,844
Series I:
Net asset value per share	$	5.41
Series II:
Net asset value per share	$	5.40

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Interest	$	2,615,366
Dividends		15,891
Dividends from affiliated money market funds		347
Total investment income		2,631,604
Expenses:
Advisory fees		177,154
Administrative services fees		92,979
Custodian fees		11,667
Distribution fees — Series II		558
Transfer agent fees		6,692
Trustees’ and officers’ fees and benefits		9,867
Professional services fees		21,997
Other		9,792
Total expenses		330,706
Less: Fees waived		(61,348	)
Net expenses		269,358
Net investment income		2,362,246
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		1,969,009
Foreign currencies		(26,745	)
Foreign currency contracts		318,314
		2,260,578
Change in net unrealized appreciation (depreciation) of:
Investment securities		(2,490,719	)
Foreign currencies		1,127
Foreign currency contracts		(15,645	)
		(2,505,237	)
Net realized and unrealized gain (loss)		(244,659	)
Net increase in net assets resulting from operations	$	2,117,587

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

Invesco V.I. High Yield Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	2,362,246		$	5,270,463
Net realized gain (loss)		2,260,578			(16,824	)
Change in net unrealized appreciation (depreciation)		(2,505,237	)		17,080,223
Net increase in net assets resulting from operations		2,117,587			22,333,862
Distributions to shareholders from net investment income:
Series I		—			(4,425,953	)
Series II		—			(35,151	)
Total distributions from net investment income		—			(4,461,104	)
Share transactions–net:
Series I		(12,287,497	)		3,004,710
Series II		(48,538	)		(55,854	)
Net increase (decrease) in net assets resulting from share transactions		(12,336,035	)		2,948,856
Net increase (decrease) in net assets		(10,218,448	)		20,821,614
Net assets:
Beginning of period		61,113,326			40,291,712
End of period (includes undistributed net investment income of $7,648,950 and $5,286,704, respectively)	$	50,894,878		$	61,113,326

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. High Yield Fund, formerly AIM V.I. High Yield Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is total return, comprised of current income and capital appreciation.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Senior secured floating rate loans and senior secured floating rate debt securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the

Invesco V.I. High Yield Fund

	security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco V.I. High Yield Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Lower-Rated Securities — The Fund normally invests at least 80% of its net assets in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims.
J.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
K.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
L.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. High Yield 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 Net Assets	Rate
First $200 million		0	.625%
Next $300 million		0	.55%
Next $500 million		0	.50%
Over $1 billion		0	.45%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.95% and Series II shares to 1.20% 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 items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $61,348.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $68,185 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Invesco V.I. High Yield Fund

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 June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	1,849,438	$	155,682	$	—	$	2,005,120
Corporate Debt Securities		—		48,473,391		0		48,473,391
	$	1,849,438	$	48,629,073	$	0	$	50,478,511
Foreign Currency Contracts*		—		62,298		—		62,298
Total Investments	$	1,849,438	$	48,691,371	$	0	$	50,540,809

*  Unrealized appreciation.

NOTE 4—Derivative Investments

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

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Currency risk
Foreign currency contracts(a)	$	62,298	$	—

^(a) Values are disclosed on the Statement of Assets and Liabilities under the Foreign currency contracts.

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain (Loss) on
	Statement of Operations
	Foreign Currency
	Contracts*
Realized Gain
Currency risk	$	318,314
Change in Unrealized Appreciation (Depreciation)
Currency risk		(15,646	)
Total	$	302,668

*  The average value of foreign currency contracts outstanding during the period was $1,831,177.

Open Foreign Currency Contracts
Settlement	Contract to						Unrealized
Date	Deliver		Receive		Value		Appreciation
8/11/10	EUR	1,106,000	USD	1,409,403	$	1,352,995	$	56,408

Invesco V.I. High Yield Fund

Closed Foreign Currency Contracts
Closed	Contract to						Realized
Date	Deliver		Receive		Value		Gain
8/11/10	EUR	149,000	USD	189,874	$	183,984	$	5,890
Total foreign currency contracts							$	62,298

Currency Abbreviations:
EUR	– Euro
USD	– U.S. Dollar

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,364 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. A Fund may not purchase additional securities when any borrowings from banks exceeds 5% of the Fund’s total assets.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	10,225,025
December 31, 2016		3,209,402
December 31, 2017		1,834,418
Total capital loss carryforward	$	15,268,845

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

Invesco V.I. High Yield Fund

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 June 30, 2010 was $29,206,522 and $40,221,505, 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	$	2,852,543
Aggregate unrealized (depreciation) of investment securities		(2,631,786	)
Net unrealized appreciation of investment securities	$	220,757
Cost of investments for tax purposes is $50,257,754.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		3,192,322		$	17,080,512			9,049,093		$	37,158,640
Series II		—			—			49			222
Issued as reinvestment of dividends:
Series I		—			—			862,759			4,425,953
Series II		—			—			6,852			35,151
Reacquired:
Series I		(5,473,603	)		(29,368,009	)		(9,123,929	)		(38,579,883	)
Series II		(9,114	)		(48,538	)		(19,361	)		(91,227	)
Net increase (decrease) in share activity		(2,290,395	)	$	(12,336,035	)		775,463		$	2,948,856

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 80% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. High Yield Fund

NOTE 10—Financial Highlights

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

																					Ratio of			Ratio of
					Net gains																expenses			expenses
					(losses) on																to average			to average net			Ratio of net
	Net asset				securities						Dividends										net assets			assets without			investment
	value,		Net		(both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	5.22	$	0.22	$	(0.03	)	$	0.19		$	—		$	5.41		3.64	%	$	50,464		0.94	%(d)		1.16	%(d)		8.35	%(d)		52	%
Year ended 12/31/09		3.69		0.47		1.47			1.94			(0.41	)		5.22		52.79			60,649		0.95			1.22			10.29			125
Year ended 12/31/08		5.74		0.49		(2.00	)		(1.51	)		(0.54	)		3.69		(25.69	)		39,918		0.95			1.22			9.19			85
Year ended 12/31/07		6.12		0.46		(0.38	)		0.08			(0.46	)		5.74		1.24			51,225		0.96			1.15			7.42			113
Year ended 12/31/06		6.03		0.45		0.19			0.64			(0.55	)		6.12		10.74			58,336		0.96			1.18			7.22			135
Year ended 12/31/05		6.45		0.43		(0.26	)		0.17			(0.59	)		6.03		2.72			54,731		1.01			1.16			6.58			69
Series II
Six months ended 06/30/10		5.22		0.22		(0.04	)		0.18			—			5.40		3.45			431		1.19	(d)		1.41	(d)		8.10	(d)		52
Year ended 12/31/09		3.68		0.46		1.48			1.94			(0.40	)		5.22		52.77			464		1.20			1.47			10.04			125
Year ended 12/31/08		5.72		0.47		(1.99	)		(1.52	)		(0.52	)		3.68		(26.00	)		374		1.20			1.47			8.94			85
Year ended 12/31/07		6.09		0.44		(0.38	)		0.06			(0.43	)		5.72		1.01			666		1.21			1.40			7.17			113
Year ended 12/31/06		6.00		0.43		0.19			0.62			(0.53	)		6.09		10.41			919		1.21			1.43			6.97			135
Year ended 12/31/05		6.43		0.41		(0.26	)		0.15			(0.58	)		6.00		2.43			1,556		1.22			1.41			6.37			69

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $56,709 and $450 for Series I and Series II shares, respectively.

Invesco V.I. High Yield Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	1,036.40	$	4.75	$	1,020.13	$	4.71		0.94	%
Series II		1,000.00		1,036.50		6.01		1,018.89		5.96		1.19

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. High Yield Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. High Yield Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, and against the Lipper VA Underlying Funds — High Current Yield Index. The Board noted that the performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and the second quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was at the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund.

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

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board also considered the effect this expense limitation would have on the Fund’s estimated total expenses.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. High Yield Fund

		Invesco V.I. High Yield Securities Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

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

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

Invesco Distributors, Inc.

MS-VIHYI-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	2.48	%
Series II Shares	2.24
Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index▼ (Broad Market/Style-Specific Index)	4.45

^▼ Lipper Inc.

The Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index is an unmanaged index that covers U.S. corporate, fixed-rate, non-investment grade debt with at least one year to maturity and at least $150 million in par outstanding. Index weights for each issuer are capped at 2%.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (3/9/84)	3.94	%
10 Years	-2.20
5 Years	5.71
1 Year	21.90
Series II Shares
Inception (6/5/00)	-2.41	%
10 Years	-2.46
5 Years	5.46
1 Year	21.61

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. High Yield Securities Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. High Yield Securities Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.75% and 2.00%, 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 Series I and Series II shares was 2.08% and 2.33%, 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.

     Invesco V.I. High Yield Securities Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing

variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus.

Invesco V.I. High Yield Securities Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Principal
	Amount		Value
Bonds & Notes–91.8%
Advertising–1.2%
Affinion Group, Inc., 11.50%, 10/15/15	$	295,000	$	310,488
Lamar Media Corp., 7.875%, 04/15/18(b)		70,000		70,700
				381,188
Aerospace & Defense–2.0%
Hexcel Corp., 6.75%, 02/01/15		145,000		142,825
L-3 Communications Corp., 5.875%, 01/15/15		200,000		198,500
Transdigm, Inc., 7.75%, 07/15/14(b)		145,000		145,725
Triumph Group, Inc., 8.00%, 11/15/17		140,000		134,750
				621,800
Airlines–0.7%
Continental Airlines 2007-1 Class C Pass Through Trust, 7.339%, 04/19/14		106,209		102,226
Continental Airlines 2009-1 Class B Pass Through Trust, (Series B), 9.25%, 05/10/17		10,000		10,456
United Air Lines, Inc., 9.875%, 08/01/13(b)		95,000		98,325
				211,007
Alternative Carriers–0.1%
Intelsat Corp., 9.25%, 06/15/16		30,000		31,650
Aluminum–1.4%
Century Aluminum Co., 8.00%, 05/15/14		35,000		33,075
Novelis, Inc. (Canada), 7.25%, 02/15/15		430,000		419,250
				452,325
Apparel Retail–1.2%
Brown Shoe Co., Inc., 8.75%, 05/01/12		330,000		334,950
Collective Brands, Inc., 8.25%, 08/01/13		50,000		50,625
				385,575
Apparel, Accessories & Luxury Goods–0.8%
Oxford Industries, Inc., 11.375%, 07/15/15		150,000		166,125
Quiksilver, Inc., 6.875%, 04/15/15		100,000		91,250
				257,375
Asset Management & Custody Banks–0.3%
Apria Healthcare Group, Inc., 12.375%, 11/01/14(b)		95,000		102,244
Auto Parts & Equipment–0.8%
Cooper-Standard Automotive, Inc., 8.50%, 05/01/18(b)		150,000		151,500
Tenneco, Inc., 8.125%, 11/15/15		105,000		106,313
				257,813
Automobile Manufacturers–1.0%
Ford Motor Co., 7.45%, 07/16/31		265,000		239,825
General Motors Corp., 8.375%, 07/15/33(c)		265,000		85,463
				325,288
Broadcasting–3.0%
Charter Communications Operating LLC/Charter Communications Operating Capital, 10.875%, 09/15/14(b)		295,000		327,081
DISH DBS Corp., 6.625%, 10/01/14		330,000		331,650
DISH DBS Corp., 7.00%, 10/01/13		130,000		134,550
XM Satellite Radio, Inc., 13.00%, 08/01/13(b)		135,000		147,994
				941,275
Building Products–1.5%
Building Materials Corp. of America, 7.50%, 03/15/20(b)		40,000		39,000
Gibraltar Industries, Inc., 8.00%, 12/01/15		105,000		102,900
Nortek, Inc., 11.00%, 12/01/13		115,000		120,463
Ply Gem Industries, Inc., 11.75%, 06/15/13		200,000		209,500
				471,863
Cable & Satellite–2.9%
CSC Holdings, Inc., 8.50%, 06/15/15		120,000		124,800
CSC Holdings, Inc., 8.625%, 02/15/19		445,000		470,031

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

Invesco V.I. High Yield Securities Fund

	Principal
	Amount		Value
Cable & Satellite–(continued)
Hughes Network Systems LLC/HNS Finance Corp., 9.50%, 04/15/14	$	125,000	$	126,250
Virgin Media Finance PLC, 9.125%, 08/15/16		205,000		213,200
				934,281
Casinos & Gaming–4.2%
Ameristar Casinos, Inc., 9.25%, 06/01/14		165,000		173,662
Harrah’s Operating Co., Inc., 5.625%, 06/01/15		115,000		74,750
Harrah’s Operating Co., Inc., 11.25%, 06/01/17		135,000		142,088
Las Vegas Sands Corp., 6.375%, 02/15/15		100,000		96,250
MGM Mirage, 6.75%, 04/01/13		475,000		418,000
MGM Mirage, 13.00%, 11/15/13		145,000		167,112
Resort at Summerlin LP, (Series B), 13.00%, 12/15/07(c)		7,210,050		0
Scientific Games International, Inc., 9.25%, 06/15/19		125,000		128,750
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 7.875%, 05/01/20(b)		160,000		161,200
				1,361,812
Coal & Consumable Fuels–0.6%
Consol Energy, Inc., 8.25%, 04/01/20(b)		35,000		36,794
Foundation PA Coal Co. LLC, 7.25%, 08/01/14		140,000		143,150
				179,944
Commodity Chemicals–0.4%
Westlake Chemical Corp., 6.625%, 01/15/16		130,000		125,288
Communications Equipment–0.6%
Avaya, Inc., 9.75%, 11/01/15		195,000		186,713
Construction & Farm Machinery & Heavy Trucks–2.2%
Case New Holland, Inc., 7.75%, 09/01/13		135,000		139,050
Case New Holland, Inc., 7.875%, 12/01/17(b)		75,000		76,500
Navistar International Corp., 8.25%, 11/01/21		410,000		417,175
Oshkosh Corp., 8.50%, 03/01/20		75,000		78,187
				710,912
Construction Materials–0.5%
Hanson Ltd., 7.875%, 09/27/10		100,000		100,563
Texas Industries, Inc., 7.25%, 07/15/13		55,000		53,625
				154,188
Consumer Finance–2.4%
Ally Financial, Inc., 6.875%, 09/15/11		190,000		194,275
Ally Financial, Inc., 8.00%, 03/15/20(b)		170,000		167,875
Ally Financial, Inc., 8.00%, 11/01/31		85,000		79,900
Ford Motor Credit Co. LLC, 8.00%, 12/15/16		95,000		97,137
Ford Motor Credit Co. LLC, 8.125%, 01/15/20		215,000		220,375
				759,562
Data Processing & Outsourced Services–1.3%
SunGard Data Systems, Inc., 9.125%, 08/15/13		280,000		286,650
SunGard Data Systems, Inc., 10.25%, 08/15/15		60,000		61,950
SunGard Data Systems, Inc., 10.625%, 05/15/15		65,000		69,875
				418,475
Department Stores–0.6%
Macy’s Retail Holdings, Inc., 5.90%, 12/01/16		200,000		202,000
Distillers & Vintners–0.6%
Constellation Brands, Inc., 7.25%, 05/15/17		175,000		178,500
Diversified Chemicals–1.2%
Ashland, Inc., 9.125%, 06/01/17		175,000		193,375
Innophos, Inc., 8.875%, 08/15/14		175,000		180,469
				373,844
Diversified Commercial & Professional Services–0.3%
ARAMARK Corp., 8.50%, 02/01/15		100,000		101,750
Diversified Metals & Mining–1.3%
Teck Resources Ltd. (Canada), 10.25%, 05/15/16		360,000		425,700
Diversified Support Services–0.4%
Travelport LLC, 9.875%, 09/01/14		113,000		114,695

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

Invesco V.I. High Yield Securities Fund

	Principal
	Amount		Value
Electric Utilities–0.7%
Edison Mission Energy, 7.00%, 05/15/17	$	315,000	$	204,750
Midwest Generation LLC, (Series B), 8.56%, 01/02/16		11,655		11,509
				216,259
Electrical Components & Equipment–0.4%
Baldor Electric Co., 8.625%, 02/15/17		120,000		124,800
Fertilizers & Agricultural Chemicals–0.7%
CF Industries, Inc., 7.125%, 05/01/20		210,000		216,300
Food Retail–1.1%
SUPERVALU, Inc., 7.50%, 05/15/12		110,000		113,850
SUPERVALU, Inc., 7.50%, 11/15/14		120,000		120,300
SUPERVALU, Inc., 8.00%, 05/01/16		120,000		119,100
				353,250
Gas Utilities–0.6%
Ferrellgas LP, 6.75%, 05/01/14		110,000		108,625
Suburban Propane Partners, 7.375%, 03/15/20		75,000		76,125
				184,750
Health Care Services–1.1%
Fresenius Medical Care Capital Trust IV, 7.875%, 06/15/11		255,000		264,562
Multiplan, Inc., 10.375%, 04/15/16(b)		52,000		53,690
Universal Hospital Services, Inc., (PIK), 8.50%, 06/01/15		25,000		24,688
				342,940
Health Care Equipment–1.4%
Biomet, Inc., 10.00%, 10/15/17		280,000		303,100
Fresenius US Finance II, Inc., 9.00%, 07/15/15(b)		80,000		87,200
Invacare Corp., 9.75%, 02/15/15		65,000		70,200
				460,500
Health Care Facilities–4.1%
Community Health Systems, 8.875%, 07/15/15		175,000		182,000
HCA, Inc., 5.75%, 03/15/14		255,000		238,425
HCA, Inc., 6.25%, 02/15/13		200,000		197,500
HCA, Inc., 7.875%, 02/15/20		70,000		72,450
HCA, Inc., 9.875%, 02/15/17		115,000		124,200
Select Medical Corp., 6.143%, 09/15/15(d)		60,000		51,900
Sun Healthcare Group, Inc., 9.125%, 04/15/15		130,000		136,337
Tenet Healthcare Corp., 7.375%, 02/01/13		180,000		181,350
Tenet Healthcare Corp., 10.00%, 05/01/18(b)		135,000		149,850
				1,334,012
Heavy Electrical Equipment–0.0%
Ormat Funding Corp., 8.25%, 12/30/20		—		0
Homebuilding–1.2%
K Hovnanian Enterprises, Inc., 10.625%, 10/15/16		295,000		296,475
M/I Homes, Inc., 6.875%, 04/01/12		90,000		89,550
				386,025
Independent Power Producers & Energy Traders–2.8%
AES Corp. (The), 7.75%, 03/01/14		270,000		276,075
Ipalco Enterprises, Inc., 8.625%, 11/14/11		115,000		119,313
Mirant Americas Generation LLC, 8.50%, 10/01/21		135,000		126,225
NRG Energy, Inc., 7.375%, 02/01/16		205,000		205,512
RRI Energy, Inc., 7.875%, 06/15/17		165,000		156,337
				883,462
Industrial Conglomerates–0.8%
RBS Global, Inc./Rexnord LLC, 8.50%, 05/01/18(b)		255,000		247,350
Industrial Gases–0.1%
Airgas, Inc., 7.125%, 10/01/18(b)		45,000		48,431
Integrated Telecommunication Services–6.3%
Frontier Communications Corp., 9.00%, 08/15/31		300,000		280,125
Intelsat Bermuda Ltd. (PIK) (Bermuda), 11.50%, 02/04/17		551,875		554,634
Intelsat Jackson Holdings Ltd., 9.50%, 06/15/16		110,000		116,325
West Corp., 9.50%, 10/15/14		275,000		279,125

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

Invesco V.I. High Yield Securities Fund

	Principal
	Amount		Value
Integrated Telecommunication Services–(continued)
Wind Acquisition Finance SA, 11.75%, 07/15/17(b)	$	200,000	$	208,500
Wind Acquisition Finance SA (Luxembourg), 12.00%, 12/01/15(b)		275,000		286,000
Windstream Corp., 7.875%, 11/01/17		165,000		161,288
Windstream Corp., 8.125%, 08/01/13		125,000		129,531
				2,015,528
Internet Retail–1.8%
Expedia, Inc., 8.50%, 07/01/16		270,000		292,191
Ticketmaster Entertainment LLC/Ticketmaster Noteco, Inc., 10.75%, 08/01/16		260,000		280,150
				572,341
Metal & Glass Containers–1.6%
Berry Plastics Corp., 9.50%, 05/15/18(b)		220,000		202,400
Crown Americas LLC/Crown Americas Capital Corp., 7.625%, 11/15/13		12,000		12,390
Owens-Brockway Glass Container, Inc., 7.375%, 05/15/16		115,000		120,175
Solo Cup Co., 8.50%, 02/15/14		180,000		162,450
				497,415
Movies & Entertainment–0.7%
AMC Entertainment, Inc., 8.75%, 06/01/19		220,000		222,200
Multi-line Insurance–0.5%
Hartford Financial Services Group, Inc., 8.125%, 06/15/38(d)		165,000		151,592
Oil & Gas Drilling–0.2%
Pride International, Inc., 7.375%, 07/15/14		75,000		74,531
Oil & Gas Equipment & Services–1.2%
Bristow Group, Inc., 7.50%, 09/15/17		60,000		57,450
Cie Generale de Geophysique-Veritas (France), 7.50%, 05/15/15		205,000		196,800
Key Energy Services, Inc., 8.375%, 12/01/14		140,000		139,300
				393,550
Oil & Gas Exploration & Production–10.7%
Atlas Energy Operating Co. LLC/ Atlas Energy Finance Corp., 10.75%, 02/01/18		235,000		250,863
Chaparral Energy, Inc., 8.875%, 02/01/17		140,000		130,550
Chesapeake Energy Corp., 6.375%, 06/15/15		150,000		155,010
Chesapeake Energy Corp., 6.50%, 08/15/17		130,000		129,350
Chesapeake Energy Corp., 6.875%, 11/15/20		10,000		10,175
Cimarex Energy Co., 7.125%, 05/01/17		220,000		222,200
Continental Resources, 7.375%, 10/01/20(b)		65,000		64,675
Continental Resources, 8.25%, 10/01/19		50,000		52,625
Encore Acquisition Co., 9.50%, 05/01/16		90,000		95,288
Forest Oil Corp., 7.25%, 06/15/19		265,000		257,712
Hilcorp Energy I LP/Hilcorp Finance Co., 7.75%, 11/01/15(b)		305,000		298,900
Intergen N.V. (Netherlands), 9.00%, 06/30/17(b)		285,000		286,425
McMoRan Exploration Co, 11.875%, 11/15/14		250,000		256,562
Newfield Exploration Co., 6.625%, 09/01/14		255,000		258,187
Newfield Exploration Co., 7.125%, 05/15/18		60,000		59,700
Petrohawk Energy Corp., 7.875%, 06/01/15		175,000		176,313
Pioneer Natural Resources Co., 6.65%, 03/15/17		215,000		218,802
Plains Exploration & Production Co., 7.625%, 06/01/18		195,000		191,831
Range Resources Corp., 7.50%, 05/15/16		110,000		111,925
SandRidge Energy, Inc., (144A), 8.00%, 06/01/18(b)		80,000		74,400
Southwestern Energy Co., 7.50%, 02/01/18		120,000		128,100
				3,429,593
Oil & Gas Refining & Marketing–1.0%
Tesoro Corp., 6.50%, 06/01/17		170,000		157,250
United Refining Co., (Series 2), 10.50%, 08/15/12		165,000		151,388
				308,638
Oil & Gas Storage & Transportation–2.7%
Copano Energy LLC/Copano Energy Finance Corp., 8.125%, 03/01/16		155,000		154,225
El Paso Corp., 6.875%, 06/15/14		115,000		117,300

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

Invesco V.I. High Yield Securities Fund

	Principal
	Amount		Value
Oil & Gas Storage & Transportation–(continued)
El Paso Corp., 12.00%, 12/12/13	$	25,000	$	29,000
Inergy LP, 8.25%, 03/01/16		125,000		127,500
MarkWest Energy Partners LP/ MarkWest Energy Finance Corp., (Series B), 8.75%, 04/15/18		160,000		163,600
Regency Energy Partners, 8.375%, 12/15/13		85,000		88,187
Sonat, Inc., 7.625%, 07/15/11		170,000		175,525
				855,337
Other Diversified Financial Services–2.4%
Bank of America Corp., 8.00%,10/30/49(d)(e)		190,000		182,400
International Lease Finance Corp., 8.625%, 09/15/15(b)		235,000		224,425
International Lease Finance Corp., 8.75%, 03/15/17(b)		94,000		89,770
NSG Holdings LLC/NSG Holdings, Inc., 7.75%, 12/15/25(b)		315,000		279,562
				776,157
Packaged Foods & Meats–0.5%
JBS USA LLC/JBS USA Finance, Inc., 11.625%, 05/01/14		140,000		157,500
Paper Packaging–1.8%
Cascades, Inc, 7.875%, 01/15/20		145,000		142,100
Graham Packaging Co. LP/GPC Capital Corp. I, 9.875%, 10/15/14		210,000		214,200
Graphic Packaging International, Inc., 9.50%, 08/15/13		200,000		204,000
				560,300
Paper Products–2.1%
Georgia-Pacific LLC, 7.125%, 01/15/17(b)		265,000		271,625
Georgia-Pacific LLC, 8.25%, 05/01/16(b)		65,000		69,875
Mercer International, Inc., 9.25%, 02/15/13		210,000		204,225
PH Glatfelter Co., 7.125%, 05/01/16		110,000		108,305
				654,030
Pharmaceuticals–0.3%
Axcan Intermediate Holdings, Inc., 12.75%, 03/01/16		110,000		111,788
Publishing–0.9%
Gannett Co., Inc., 9.375%, 11/15/17(b)		95,000		100,938
Nielsen Finance LLC/Nielsen Finance Co., 10.00%, 08/01/14		185,000		190,087
				291,025
Railroads–0.3%
Kansas City Southern de Mexico SA de CV (Mexico), 8.00%, 02/01/18(b)		95,000		97,689
Semiconductors–0.9%
Freescale Semiconductor, Inc., 9.125%, 12/15/14		190,000		171,475
Freescale Semiconductor, Inc., 9.25%, 04/15/18(b)		109,000		107,910
				279,385
Specialized Finance–1.7%
CIT Group, Inc., 7.00%, 05/01/17		580,000		527,800
Specialty Chemicals–0.5%
Huntsman International LLC, 7.375%, 01/01/15		190,000		176,700
Specialty Stores–0.5%
Michaels Stores, Inc., 13.00%, 11/01/16(f)		175,000		157,063
Systems Software–1.4%
Vangent, Inc., 9.625%, 02/15/15		460,000		442,175
Tires & Rubber–0.4%
Cooper Tire and Rubber Co., 8.00%, 12/15/19		140,000		139,650
Trading Companies & Distributors–0.5%
H&E Equipment Services, Inc., 8.375%, 07/15/16		160,000		151,200
Trucking–0.4%
Hertz Corp. (The), 8.875%, 01/01/14		120,000		122,100
Wireless Telecommunication Services–2.0%
Nextel Communications, Inc., (Series E), 6.875%, 10/31/13		370,000		363,525
Sprint Capital Corp., 6.90%, 05/01/19		315,000		287,437
				650,962
Total Bonds & Notes (Cost $35,033,856)				29,281,395
Senior Secured Floating Rate Interest Loans–1.6%
Casinos & Gaming–1.0%
CCM Merger Corp., 8.50%, 07/13/12(d)		315,369		310,049

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

Invesco V.I. High Yield Securities Fund

	Principal
	Amount		Value
Independent Power Producers & Energy Traders–0.6%
Calpine Corp., 3.165%, 03/29/14(d)	$	249,038	$	228,816
Total Senior Secured Floating Rate Interest Loans (Cost $492,254)				538,865
	Shares
Preferred Stocks–0.7%
Diversified Banks–0.4%
Ally Financial, Inc.(b)		172		133,703
Regional Banks–0.3%
Zions Bancorporation		3,150		81,585
Total Preferred Stocks (Cost $152,236)				215,288
Common Stocks–0.1%
Communications Equipment–0.1%
Orbcomm, Inc.(g)		6,198		11,280
Wireless Telecommunication Services–0.0%
USA Mobility, Inc.		521		6,731
Total Common Stocks (Cost $0)				18,011
Money Market Funds–1.7%
Liquid Assets Portfolio–Institutional Class(h)		267,119		267,119
Premier Portfolio–Institutional Class(h)		267,119		267,119
Total Money Market Funds (Cost $534,238)				534,238
TOTAL INVESTMENTS (Cost $36,212,584)–95.9%				30,587,797
OTHER ASSETS LESS LIABILITIES–4.1%				1,320,000
NET ASSETS–100.0%			$	31,907,797

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $4,908,256 which represented 15.4% of the Fund’s Net Assets.
(c)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at June 30, 2010 was $85,463, which represented 0.3% of the Fund’s Net Assets.
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(e)	Perpetual bond with no specified maturity date.
(f)	Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(g)	Non-income producing security.
(h)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By credit quality, based on Net Assets

as of June 30, 2010

BBB	4.0	%
BB	42.2
B	37.7
CCC	9.8
NR	1.4
Cash	4.9

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

Invesco V.I. High Yield Securities Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $35,678,346)	$	30,053,559
Investments in affiliated money market funds, at value and cost		534,238
Total investments, at value (Cost $36,212,584)		30,587,797
Cash		6,303
Receivable for:
Investments sold		2,468,340
Dividends		607,223
Fund expenses absorbed		133,186
Other Assets		3,725
Total assets		33,806,574
Liabilities:
Payable for:
Investments purchased		1,418,673
Fund shares reacquired		200,999
Accrued fees to affiliates		10,161
Accrued other operating expenses		267,568
Trustee deferred compensation and retirement plans		1,376
Total liabilities		1,898,777
Net assets applicable to shares outstanding	$	31,907,797
Net assets consist of:
Shares of beneficial interest	$	285,357,059
Undistributed net investment income		819,564
Undistributed net realized gain (loss)		(248,644,039	)
Unrealized appreciation (depreciation)		(5,624,787	)
	$	31,907,797
Net Assets:
Series I	$	15,728,618
Series II	$	16,179,179
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		14,866,839
Series II		15,289,494
Series I:
Net asset value per share	$	1.06
Series II:
Net asset value per share	$	1.06

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment Income:
Interest	$	1,524,563
Dividends		6,065
Dividends from affiliated money market funds		1,068
Income from securities loaned		4,371
Total investment income		1,536,067
Expenses
Advisory fees		68,917
Administrative services fees		21,706
Custodian fees		1,904
Distribution fees — Series II		20,670
Transfer agent fees		250
Trustees’ and officers’ fees and benefits		2,651
Professional fees		299,221
Other		26,492
Total expenses		441,811
Less: Fees waived		(134,042	)
Net expenses		307,769
Net investment income		1,228,298
Realized and unrealized gain (loss) from:
Realized gain (loss) from investment securities		(45,271,531	)
Net change in unrealized appreciation of investment securities		44,814,280
Net realized and unrealized gain (loss)		(457,251	)
Net increase in net assets resulting from operations	$	771,047

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

Invesco V.I. High Yield Securities Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30, 2010			December 31, 2009
Operations:
Net investment income	$	1,228,298		$	2,629,901
Net realized gain (loss)		(45,271,531	)		(2,347,089	)
Change in net unrealized appreciation		44,814,280			10,752,985
Net increase in net assets resulting from operations		771,047			11,035,797
Distributions to shareholders from net investment income:
Series I		(1,323,198	)		(1,215,369	)
Series II		(1,325,494	)		(1,195,423	)
Total distributions from net investment income		(2,648,692	)		(2,410,792	)
Net increase (decrease) from in net assets resulting from share transactions		238,838			(2,278,057	)
Net increase (decrease) in net assets		(1,638,807	)		6,346,948
Net Assets:
Beginning of period		33,546,604			27,199,656
End of period (includes undistributed net investment income of $819,564 and $2,239,958, respectively)	$	31,907,797		$	33,546,604

Notes to Financial Statements

June 30, 2010
(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. High Yield Securities Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Morgan Stanley Variable Investment Series - High Yield Portfolio (the “Acquired Fund”), an investment portfolio of Morgan Stanley Variable Investment Series. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class X and Class Y shares received Series I and Series II shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class X and Class Y shares prior to the Reorganization are included with Series I and Series II shares, respectively, of the Fund throughout this report.

  The Fund’s primary investment objective is to provide a high level of current income by investing in a diversified portfolio consisting principally of fixed-income securities, which may include both non-convertible and convertible debt securities and preferred stocks. As a secondary objective the Fund will seek capital appreciation, but only when consistent with its primary objective.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.

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

Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.

Invesco V.I. High Yield Securities Fund

	Senior secured floating rate loans and senior secured floating rate debt securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.

Invesco V.I. High Yield Securities Fund

E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print, which is generally 45 days from the period-end date.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Lower-Rated Securities — The Fund normally invests at least 80% of its net assets in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims.
J.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $500 million		0	.42%
Next $250 million		0	.345%
Next $250 billion		0	.295%
Next $1 billion		0	.27%
Next $1 billion		0	.245%
Over $3 billion		0	.22%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

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

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.75% and Series II shares to 2.00% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above:

Invesco V.I. High Yield Securities Fund

(1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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 waiver or reimbursements prior to the end of each fiscal year.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the six months ended June 30, 2010, the Adviser and MSIA waived advisory fees of $133,179 and $863, respectively.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $6,571 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $11,025 to Morgan Stanley Services Company, Inc.

  Also, the Trust has entered into service agreements with State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $208 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees $17,330 to Morgan Stanley Distributors Inc. based on the annual rate of 0.25% of the Acquired Fund’s average daily net assets of Class Y shares. For the six months ended June 30, 2010, expenses incurred under the Plans are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	633,834	$	133,703	$	—	$	767,537
Corporate Debt Securities		—		29,820,260		0		29,820,260
Total Investments	$	633,834	$	29,953,963	$	0	$	30,587,797

Invesco V.I. High Yield Securities Fund

NOTE 4—Trustees’ and Officers’ Fees and Benefits

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

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	63,495,000
December 31, 2011		81,458,000
December 31, 2012		24,098,000
December 31, 2013		15,737,000
December 31, 2014		6,219,000
December 31, 2016		1,794,000
December 31, 2017		10,401,000
Total capital loss carryforward	$	203,202,000

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

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $14,211,456 and $15,697,997, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	1,737,020
Aggregate unrealized (depreciation) of investment securities		(7,369,549	)
Net unrealized appreciation (depreciation) of investment securities	$	(5,632,529	)
Cost of investments for tax purposes is 36,220,326.

Invesco V.I. High Yield Securities Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Series I
Sold		203,334		$	228,309			885,547		$	849,248
Reinvestment of dividends and distributions		1,272,306			1,323,198			1,279,336			1,215,369
Redeemed		(1,511,833	)		(1,718,352	)		(2,812,285	)		(2,762,208	)
Net increase (decrease) — Series I		(36,193	)		(166,845	)		(647,402	)		(697,591	)
Series II
Sold		289,370			312,665			408,859			415,103
Reinvestment of dividends and distributions		1,274,514			1,325,494			1,258,340			1,195,423
Redeemed		(1,100,086	)		(1,232,476	)		(3,277,685	)		(3,190,992	)
Net increase (decrease) — Series II		463,798			405,683			(1,610,486	)		(1,580,466	)
Net increase in (decrease) in share activity		427,605		$	238,838			(2,257,888	)	$	(2,278,057	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 94% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9—Financial Highlights

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

	Six months ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Series I
Selected Per Share Data:
Net asset value, beginning of period	$	1.13		$	0.85		$	1.13		$	1.16		$	1.14		$	1.20
Income (loss) from investment operations:
Net investment income(a)		0.04			0.09			0.07			0.08			0.08			0.08
Net realized and unrealized gain (loss)		(0.01	)		0.27			(0.33	)		(0.03	)		0.02			(0.06	)
Total income (loss) from investment operations		0.03			0.36			(0.26	)		0.05			0.10			0.02
Less dividends from net investment income		(0.10	)		(0.08	)		(0.02	)		(0.08	)		(0.08	)		(0.08	)
Net asset value, end of period	$	1.06		$	1.13		$	0.85		$	1.13		$	1.16		$	1.14
Total return(b)		2.48	%		44.56	%		(23.13	)%		4.17	%		9.29	%		2.18	%
Net assets, end of period, (000’s omitted)	$	15,729		$	16,824		$	13,226		$	21,625		$	27,907		$	35,226
Ratios to Average Net Assets:
With fee waivers and/or expense reimbursements		1.75	%(c)		1.74	%(d)		1.48	%(d)		1.18	%		0.95	%		0.87	%
Without fee waivers and/or expense reimbursements		2.57	%(c)		1.75	%(d)		1.48	%(d)		1.18	%		0.95	%		0.87	%
Net investment income		7.61	%(c)		8.76	%(d)		6.90	%(d)		6.48	%		6.78	%		6.81	%
Rebate from affiliates		—			0.01	%		0.00	%(e)		—			—			—
Supplemental Data:
Portfolio turnover rate(f)		46	%		75	%		44	%		26	%		23	%		48	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $16,419.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. High Yield Securities Fund

	Six months ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Series II
Selected Per Share Data:
Net asset value, beginning of period	$	1.13		$	0.85		$	1.13		$	1.16		$	1.14		$	1.20
Income (loss) from investment operations:
Net investment income(a)		0.04			0.08			0.07			0.07			0.08			0.08
Net realized and unrealized gain (loss)		(0.02	)		0.28			(0.33	)		(0.03	)		0.02			(0.06	)
Total income (loss) from investment operations		0.02			0.36			(0.26	)		0.04			0.10			0.02
Less dividends from net investment income		(0.09	)		(0.08	)		(0.02	)		(0.07	)		(0.08	)		(0.08	)
Net asset value, end of period	$	1.06		$	1.13		$	0.85		$	1.13		$	1.16		$	1.14
Total return(b)		2.24	%		44.27	%		(23.20	)%		3.90	%		9.01	%		1.92	%
Net assets, end of period, (000’s omitted)	$	16,179		$	16,723		$	13,973		$	24,433		$	30,764		$	35,551
Ratios to Average Net Assets:
With fee waivers and/or expense reimbursements		2.00	%(c)		1.99	%(d)		1.73	%(d)		1.43	%		1.20	%		1.12	%
Without fee waivers and/or expense reimbursements		2.82	%(c)		2.00	%(d)		1.73	%(d)		1.43	%		1.20	%		1.12	%
Net investment income		7.36	%(c)		8.51	%(d)		6.65	%(d)		6.23	%		6.53	%		6.56	%
Rebate from affiliates		—			0.01	%		0.00	%(e)		—			—			—
Supplemental Data:
Portfolio turnover rate(f)		46	%		75	%		44	%		26	%		23	%		48	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $16,670.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 10—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco V.I. High Yield Securities Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. 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.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	1,024.80	$	8.79	$	1,016.12	$	8.75		1.75	%
Series II		1,000.00		1,022.40		10.03		1,014.88		9.99		2.00

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. High Yield Securities Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco V.I. High Yield Securities Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Morgan Stanley retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

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

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

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

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

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

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for

breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services.

Invesco V.I. High Yield Securities Fund

The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

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

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

Invesco V.I. High Yield Securities Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Morgan Stanley Variable Investment Series — High Yield Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		26,367,409		1,046,234		2,021,109		0

Invesco V.I. High Yield Securities Fund

		Invesco V.I. Income Builder Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

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

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

Invesco Distributors, Inc.

MS-VIIBU-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	–5.02	%
Series II Shares	–5.18
Russell 1000 Value Index▼(Broad Market Index)	–5.12
Barclays Capital U.S. Government/Credit Index▼(Style-Specific Index)	5.49

^▼ Lipper Inc.

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

     The Barclays Capital U.S. Government/Credit Index includes treasuries and agencies that represent the government portion of the index, and includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements to represent the credit interests.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (1/21/97)	4.88	%
10 Years	3.87
5 Years	1.70
1 Year	15.83
Series II Shares
Inception (6/5/00)	3.26	%
10 Years	3.60
5 Years	1.44
1 Year	15.45

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Income Builder Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Income Builder Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.02% 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 Series I and Series II shares was 1.35% and 1.60%, 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.

     Invesco V.I. Income Builder Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, charges,

expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

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

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus.

Invesco V.I. Income Builder Fund

Schedule of Investments^(a)

June 30, 2010
(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–70.9%
Aerospace & Defense–0.3%
General Dynamics Corp.		1,636	$	95,804
Air Freight & Logistics–0.5%
FedEx Corp.		2,020		141,622
Apparel Retail–0.7%
Gap, Inc. (The)		9,908		192,810
Asset Management & Custody Banks–1.0%
Janus Capital Group, Inc.		10,554		93,719
State Street Corp.		5,580		188,716
				282,435
Automobile Manufacturers–0.4%
Ford Motor Co.(b)		11,929		120,244
Biotechnology–0.9%
Genzyme Corp.(b)		5,004		254,053
Cable & Satellite–2.1%
Comcast Corp. (Class A)		19,760		343,231
Time Warner Cable, Inc.		4,981		259,411
				602,642
Communications Equipment–1.0%
Cisco Systems, Inc.(b)		13,578		289,347
Computer Hardware–2.1%
Dell, Inc.(b)		18,683		225,317
Hewlett-Packard Co.		8,774		379,739
				605,056
Consumer Electronics–0.7%
Sony Corp. (ADR) (Japan)		8,194		218,616
Data Processing & Outsourced Services–0.6%
Western Union Co. (The)		12,589		187,702
Diversified Banks–1.2%
US Bancorp		6,112		136,603
Wells Fargo & Co.		8,947		229,043
				365,646
Diversified Chemicals–1.2%
Dow Chemical Co. (The)		9,043		214,500
PPG Industries, Inc.		2,405		145,286
				359,786
Diversified Metals & Mining–0.4%
Freeport-McMoRan Copper & Gold, Inc.		2,116		125,119
Diversified Support Services–0.4%
Cintas Corp.		4,714		112,995
Drug Retail–0.6%
Walgreen Co.		6,452		172,268
Electric Utilities–3.0%
American Electric Power Co., Inc.		13,715		442,994
Edison International		2,983		94,621
Entergy Corp.		2,273		162,792
FirstEnergy Corp.		4,877		171,817
				872,224
Food Distributors–0.8%
Sysco Corp.		8,369		239,102
Health Care Distributors–0.5%
Cardinal Health, Inc.		4,281		143,884
Health Care Equipment–0.9%
Covidien PLC (Ireland)		6,686		268,644
Home Improvement Retail–1.2%
Home Depot, Inc.		12,464		349,865
Human Resource & Employment Services–0.7%
Manpower, Inc.		2,636		113,822
Robert Half International, Inc.		4,136		97,403
				211,225
Hypermarkets & Super Centers–1.2%
Wal-Mart Stores, Inc.		7,658		368,120
Industrial Conglomerates–4.2%
General Electric Co.		48,205		695,116
Siemens AG (ADR) (Germany)		2,559		229,108
Tyco International Ltd.		8,792		309,742
				1,233,966
Industrial Machinery–1.5%
Dover Corp.		5,472		228,675
Ingersoll-Rand PLC (Ireland)		5,882		202,870
				431,545
Insurance Brokers–2.3%
Marsh & McLennan Cos., Inc.		29,560		666,578

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

Invesco V.I. Income Builder Fund

	Shares		Value
Integrated Oil & Gas–5.2%
ConocoPhillips		4,731	$	232,245
Exxon Mobil Corp.		3,617		206,422
Hess Corp.		4,250		213,945
Occidental Petroleum Corp.		6,407		494,300
Royal Dutch Shell PLC (ADR) (United Kingdom)		7,597		381,521
				1,528,433
Integrated Telecommunication Services–0.7%
Verizon Communications, Inc.		7,157		200,539
Internet Software & Services–2.3%
eBay, Inc.(b)		23,790		466,522
Yahoo!, Inc.(b)		15,811		218,666
				685,188
Investment Banking & Brokerage–1.0%
Charles Schwab Corp. (The)		20,419		289,542
IT Consulting & Other Services–0.7%
Amdocs Ltd.(b)		7,432		199,549
Life & Health Insurance–0.5%
Principal Financial Group, Inc.		6,151		144,180
Managed Health Care–1.0%
UnitedHealth Group, Inc.		10,343		293,741
Motorcycle Manufacturers–0.3%
Harley-Davidson, Inc.		4,642		103,192
Movies & Entertainment–3.4%
Time Warner, Inc.		13,407		387,596
Viacom, Inc. (Class B)		19,089		598,822
				986,418
Multi-Utilities–1.6%
PG&E Corp.		11,467		471,277
Office Services & Supplies–0.4%
Avery Dennison Corp.		3,752		120,552
Oil & Gas Equipment & Services–0.9%
Schlumberger Ltd.		4,559		252,295
Oil & Gas Exploration & Production–1.8%
Anadarko Petroleum Corp.		6,179		223,000
Devon Energy Corp.		3,232		196,894
Noble Energy, Inc.		1,643		99,122
				519,016
Other Diversified Financial Services–6.0%
Bank of America Corp.		36,086		518,556
Citigroup, Inc.		57,078		214,613
JPMorgan Chase & Co.		27,869		1,020,284
				1,753,453
Packaged Foods & Meats–2.1%
Kraft Foods, Inc. (Class A)		16,258		455,224
Unilever N.V. (NY Registered Shares) (Netherlands)		5,635		153,948
				609,172
Personal Products–0.7%
Avon Products, Inc.		8,042		213,113
Pharmaceuticals–5.6%
Abbott Laboratories		3,425		160,221
Bayer AG (ADR) (Germany)		4,013		225,623
Bristol-Myers Squibb Co.		15,806		394,202
Merck & Co., Inc.		9,688		338,789
Pfizer, Inc.		20,010		285,343
Roche Holding AG (ADR) (Switzerland)		6,472		223,716
				1,627,894
Property & Casualty Insurance–0.8%
Chubb Corp.		4,929		246,499
Regional Banks–2.7%
BB&T Corp.		6,927		182,249
Fifth Third Bancorp		12,410		152,519
PNC Financial Services Group, Inc.		7,892		445,898
				780,666
Semiconductor Equipment–0.3%
Lam Research Corp.(b)		2,675		101,811
Semiconductors–0.8%
Intel Corp.		12,399		241,161
Soft Drinks–0.6%
Coca-Cola Co. (The)		3,262		163,492
Wireless Telecommunication Services–1.1%
Vodafone Group PLC (ADR) (United Kingdom)		15,433		319,000
Total Common Stocks & Other Equity Interests (Cost $22,023,901)				20,761,481
	Principal
	Amount
Convertible Bonds–14.0%
Brewery–4.4%
Molson Coors Brewing Co., 2.50%, 07/30/13	$	1,200,000		1,293,000
Electronic Component–Semiconductor–4.7%
Intel Corp., (144A), 2.95%, 12/15/35(c)		1,450,000		1,384,750

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

Invesco V.I. Income Builder Fund

	Principal
	Amount		Value
Gold Mining–4.9%
Newmont Mining Corp., 1.25%, 07/15/14	$	1,000,000	$	1,430,000
Total Convertible Bonds (Cost $3,723,455)				4,107,750
Bonds & Notes–11.0%
Hotels & Motels–7.3%
Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 05/01/12		2,000,000		2,134,701
Paper & Related Products–3.7%
Buckeye Technologies, Inc., 8.50%, 10/01/13		1,050,000		1,068,375
Total Bonds & Notes (Cost $3,102,032)				3,203,076
	Shares
Convertible Preferred Stocks–1.4%
Real Estate Investment Trusts (REITs)
Equity Residential (Series E) $1.75 (Cost $225,040)		9,000		417,241
Money Market Funds–2.8%
Liquid Assets Portfolio–Institutional Class(d)		408,137		408,137
Premier Portfolio–Institutional Class(d)		408,137		408,137
Total Money Market Funds (Cost $816,274)				816,274
TOTAL INVESTMENTS–100.1% (Cost $29,890,702)				29,305,822
LIABILITIES IN EXCESS OF OTHER ASSETS–(0.1)				(38,846	)
NET ASSETS–100.0%			$	29,266,976

Investment Abbreviations:

ADR	– American Depositary Receipt
REIT	– Real Estate Investment Trust

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at June 30, 2010 represented 4.73% of the Fund’s Net Assets.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Financials	16.9	%
Consumer Discretionary	16.1
Information Technology	12.6
Consumer Staples	10.4
Materials	10.2
Health Care	8.8
Industrials	8.0
Energy	7.9
Utilities	4.6
Telecommunication Services	1.8
Money Market Funds Plus Other Assets Less Liabilities	2.7

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

Invesco V.I. Income Builder Fund

Statement of Assets and Liabilities

June 30, 2010
(Unaudited)

Assets:
Investments, at value (Cost $29,074,428)	$	28,489,548
Investments in affiliated money market funds, at value and cost		816,274
Total investments, at value (Cost $29,890,702)		29,305,822
Receivable for:
Investments sold		45,709
Dividends		129,773
Fund shares sold		8,344
Other assets		3,652
Total assets		29,493,300
Liabilities:
Payable for:
Investments purchased		130,745
Fund shares reacquired		56,354
Accrued fees to affiliates		12,871
Accrued other operating expenses		24,995
Trustee deferred compensation and retirement plans		1,359
Total liabilities		226,324
Net assets applicable to shares outstanding	$	29,266,976
Net assets consist of:
Shares of beneficial interest	$	33,790,571
Undistributed net investment income		162,608
Undistributed net realized gain (loss)		(4,101,323	)
Unrealized appreciation (depreciation)		(584,880	)
	$	29,266,976
Net Assets:
Series I	$	15,322,040
Series II	$	13,944,936
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Series I		1,721,347
Series II		1,571,583
Series I:
Net asset value per share	$	8.90
Series II:
Net asset value per share	$	8.87

Statement of Operations

For the six months ended June 30, 2010
(Unaudited)

Investment income:
Dividends (net of $6,366 foreign withholding tax)	$	263,030
Dividends from affiliated money market funds		422
Interest		176,021
Total investment income		439,473
Expenses
Advisory fees		108,322
Administrative services fees		21,319
Custodian fees		3,745
Distribution fees-Series II		19,363
Transfer agent fees		250
Trustees’ and officers’ fees and benefits		1,546
Professional services fees		21,810
Other		12,958
Total expenses		189,313
Less: Fees waived		(3,134	)
Net expenses		186,179
Net investment income		253,294
Realized and unrealized gain (loss) from:
Net realized gain from investment securities (includes net gains from securities sold to affiliates of $232)		937,111
Change in net unrealized appreciation (depreciation) of investment securities		(2,711,886	)
Net realized and unrealized gain (loss)		(1,774,775	)
Net increase (decrease) in net assets resulting from operations	$	(1,521,481	)

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

Invesco V.I. Income Builder Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30, 2010			December 31, 2009
Operations:
Net investment income	$	253,294			697,812
Net realized gain (loss)		937,111			(3,563,908	)
Change in net unrealized appreciation (depreciation)		(2,711,886	)		9,679,080
Net increase (decrease) in net assets resulting from operations		(1,521,481	)		6,812,984
Distributions to shareholders from net investment income:
Series I		(411,145	)		(528,794	)
Series II		(334,922	)		(448,809	)
Total Dividends		(746,067	)		(977,603	)
Distributions to shareholders from net realized gains:
Series I		—			(8,092	)
Series II		—			(7,525	)
Total Distributions		—			(15,617	)
Net increase (decrease) in net assets resulting from share transactions		(1,580,021	)		(4,385,614	)
Net increase (decrease) in net assets		(3,847,569	)		1,434,150
Net Assets:
Beginning of year		33,114,545			31,680,395
End of year (includes undistributed net investment income of $162,608 and $655,381, respectively)	$	29,266,976			33,114,545

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Income Builder Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Morgan Stanley Variable Investment Series Income Builder Portfolio (the “Acquired Fund”), an investment portfolio of Morgan Stanley Variable Investment Series. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class X and Class Y shares received Series I and Series II shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class X and Class Y shares prior to the Reorganization are included with Series I and Series II shares, respectively, of the Fund throughout this report.

  The Fund’s primary investment objective is to seek reasonable income. As a secondary objective, the Fund seeks growth of capital.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.

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

Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity

Invesco V.I. Income Builder Fund

	are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.

Invesco V.I. Income Builder Fund

E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print, which is generally 45 days from the period-end date.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $500 million		0.67%
Over $500 million		0.645%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

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

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to

Invesco V.I. Income Builder Fund

1.02% and Series II shares to 1.27% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the six months ended June 30, 2010, the Adviser and MSIA waived advisory fees of $323 and $2,811, respectively.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $6,288 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $10,921 to Morgan Stanley Services Company, Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $207 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $16,369 to Morgan Stanley Distributors Inc. based on the annual rate of 0.25% of the Acquired Fund’s average daily net assets of Class Y shares. For the six months ended June 30, 2010, expenses incurred under the Plans are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	21,545,657	$	449,339	$	—	$	21,994,996
Corporate Debt Securities		—		7,310,826		—		7,310,826
Total Investments	$	21,545,657	$	7,760,165	$	—	$	29,305,822

Invesco V.I. Income Builder Fund

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $18,896 and securities sales of $1,133, which resulted in net realized gains (losses) of $232.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	4,529,599

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $3,501,483 and $5,697,994, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	1,668,182
Aggregate unrealized (depreciation) of investment securities		(2,733,381	)
Net unrealized appreciation (depreciation) of investment securities	$	(1,065,199	)
Cost of investments for tax purposes is $30,371,021.

Invesco V.I. Income Builder Fund

NOTE 9—Share Information

	Summary of Share Activity
	For the six months ended						For the year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Series I
Sold		38,157		$	377,430			84,206		$	700,726
Reinvestment of dividends and distributions		43,739			411,146			68,133			536,886
Redeemed		(141,062	)		(1,360,418	)		(402,407	)		(3,276,702	)
Net increase (decrease) — Series I		(59,166	)		(571,842	)		(250,068	)		(2,039,090	)
Series II
Sold		34,108			323,782			46,979			393,492
Reinvestment of dividends and distributions		35,706			334,922			58,058			456,334
Redeemed		(169,679	)		(1,666,883	)		(392,269	)		(3,196,350	)
Net increase (decrease) — Series II		(99,865	)		(1,008,179	)		(287,232	)		(2,346,524	)
Net increase (decrease) in share activity		(159,031	)	$	(1,580,021	)		(537,300	)	$	(4,385,614	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 93% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Income Builder Fund

NOTE 10—Financial Highlights

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

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series I
Selected per share data:
Net asset value, beginning of period	$	9.61		$	7.96		$	12.86		$	13.59		$	12.22		$	11.74
Income (loss) from investment operations:
Net investment income(a)		0.08			0.20			0.31			0.31			0.33			0.29
Net realized and unrealized gain (loss)		(0.55	)		1.73			(3.33	)		0.15			1.38			0.52
Total income (loss) from investment operations		(0.47	)		1.93			(3.02	)		0.46			1.71			0.81
Less dividends and distributions from:
Net investment income		(0.24	)		(0.28	)		(0.09	)		(0.38	)		(0.34	)		(0.33	)
Net realized gain		—			0.00	(b)		(1.79	)		(0.81	)		—			—
Total dividends and distributions		(0.24	)		(0.28	)		(1.88	)		(1.19	)		(0.34	)		(0.33	)
Net asset value, end of period	$	8.90		$	9.61		$	7.96		$	12.86		$	13.59		$	12.22
Total Return(c)		(5.02	)%		25.16	%		(26.29	)%		3.21	%		14.21	%		6.96	%
Net assets, end of period (000’s)	$	15,322		$	17,116		$	16,164		$	28,244		$	35,195		$	39,562
Ratios to average net assets:
With fee waivers and/or expense reimbursements		1.03	%(d)		1.01	%(e)		0.90	%(e)		0.85	%		0.83	%		0.84	%
Without fee waivers and/or expense reimbursements		1.05	%(d)
Net investment income		1.69	%(d)		2.40	%(e)		2.95	%(e)		2.31	%		2.61	%		2.47	%
Rebate from affiliates		—			0.01	%		0.00	%(f)		—			—			—
Supplemental data:
Portfolio turnover(g)		12	%		47	%		35	%		32	%		19	%		27	%

(a)	Calculated using average shares outstanding.
(b)	Amount is less than $0.005.
(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $16,984.
(e)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(f)	Amount is less than 0.005%.
(g)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Income Builder Fund

NOTE 10—Financial Highlights (continued)

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series II
Selected per share data:
Net asset value, beginning of period	$	9.57		$	7.92		$	12.82		$	13.56		$	12.20		$	11.71
Income (loss) from investment operations:
Net investment income(a)		0.07			0.18			0.29			0.28			0.30			0.26
Net realized and unrealized gain (loss)		(0.55	)		1.73			(3.32	)		0.14			1.37			0.53
Total income (loss) from investment operations		(0.48	)		1.91			(3.03	)		0.42			1.67			0.79
Less dividends and distributions from:
Net investment income		(0.22	)		(0.26	)		(0.08	)		(0.35	)		(0.31	)		(0.30	)
Net realized gain		—			0.00	(b)		(1.79	)		(0.81	)		—			—
Total dividends and distributions		(0.22	)		(0.26	)		(1.87	)		(1.16	)		(0.31	)		(0.30	)
Net asset value, end of period	$	8.87		$	9.57		$	7.92		$	12.82		$	13.56		$	12.20
Total Return(c)		(5.18	)%		24.90	%		(26.44	)%		2.86	%		13.96	%		6.71	%
Net assets, end of period (000’s)	$	13,945		$	15,998		$	15,517		$	34,717		$	45,371		$	45,918
Ratios to average net assets:
With fee waivers and/or expense reimbursements		1.28	%(d)		1.26	%(e)		1.15	%(e)		1.10	%		1.08	%		1.09	%
Without fee waivers and/or expense reimbursements		1.30	%(d)
Net investment income		1.44	%(d)		2.15	%(e)		2.70	%(e)		2.06	%		2.36	%		2.22	%
Rebate from affiliates		—			0.01	%		0.00	%(f)		—			—			—
Supplemental data:
Portfolio turnover(g)		12	%		47	%		35	%		32	%		19	%		27	%

(a)	Calculated using average shares outstanding.
(b)	Amount is less than $0.005.
(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $15,619.
(e)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(f)	Amount is less than 0.005%.
(g)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Income Builder Fund

NOTE 11 — Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco V.I. Income Builder Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	949.80	$	4.98	$	1,019.69	$	5.16		1.03	%
Series II		1,000.00		948.20		6.18		1,018.45		6.41		1.28

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. Effective June 1, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit Total Annual Fund Operating Expense of Series I, and Series II shares to 1.02% and 1.27% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 1.02% and 1.27% for Series I and Series II shares, respectively.
3	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $4.93 and $6.13 for Series I and Series II shares, respectively.
4	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $5.11 and $6.36 for Series I and Series II shares, respectively.

Invesco V.I. Income Builder Fund

Approval of Investment Advisory and sub-Advisory Agreements with Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco V.I. Income Builder Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Morgan Stanley retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

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

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

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

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

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

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco

Invesco V.I. Income Builder Fund

Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

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

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

Invesco V.I. Income Builder Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Morgan Stanley Variable Investment Series — Income Builder Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		2,927,333		225,191		246,768		0

Invesco V.I. Income Builder Fund

		Invesco V.I. International Growth Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIIGR-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-8.46	%
Series II Shares	-8.54
MSCI EAFE Index▼ (Broad Market Index)	-13.23
MSCI EAFE Growth Index▼ (Style-Specific Index)	-10.73
Lipper VUF International Growth Funds Index▼ (Peer Group Index)	-9.54

^▼ Lipper Inc.

The MSCI EAFE^® Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East.

     The MSCI EAFE^® Growth Index is an unmanaged index considered representative of growth stocks of Europe, Australasia and the Far East.

     The Lipper VUF International Growth Funds Index is an unmanaged index considered representative of international growth variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (5/5/93)	6.75	%
10 Years	0.87
5 Years	4.89
1 Year	11.71
Series II Shares
10 Years	0.62	%
5 Years	4.62
1 Year	11.45

Series II shares incepted on September 19, 2001. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.06% and 1.31%, 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.

     Invesco V.I. International Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available by calling 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. International Growth Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–94.20%
Australia–5.44%
BHP Billiton Ltd.		500,223	$	15,548,544
Cochlear Ltd.		211,474		13,166,079
CSL Ltd.		310,263		8,457,355
QBE Insurance Group Ltd.		471,761		7,175,567
Woolworths Ltd.		283,846		6,431,215
				50,778,760
Belgium–1.94%
Anheuser-Busch InBev N.V.		378,091		18,164,935
Brazil–1.02%
Banco Bradesco S.A.–ADR		602,200		9,550,892
Canada–6.35%
Bombardier Inc.–Class B		1,455,233		6,630,853
Canadian National Railway Co.		113,460		6,510,839
Canadian Natural Resources Ltd.		243,185		8,085,604
Cenovus Energy Inc.		307,695		7,929,419
EnCana Corp.		229,895		6,976,333
Fairfax Financial Holdings Ltd.		22,102		8,130,853
Suncor Energy, Inc.		283,716		8,356,348
Talisman Energy Inc.		440,003		6,659,572
				59,279,821
China–1.33%
Industrial and Commercial Bank of China Ltd.–Class H		17,174,000		12,469,732
Denmark–1.58%
Novo Nordisk A.S.–Class B		182,596		14,730,801
France–4.46%
AXA S.A.		365,800		5,548,816
BNP Paribas		194,784		10,402,504
Danone S.A.		170,181		9,089,858
Eutelsat Communications		189,073		6,317,963
Total S.A.		231,470		10,303,562
				41,662,703
Germany–7.11%
Adidas AG		224,053		10,816,795
Bayer AG		238,247		13,295,726
Bayerische Motoren Werke AG		315,889		15,282,116
Fresenius Medical Care AG & Co. KGaA		174,648		9,450,332
Puma AG Rudolf Dassler Sport		39,892		10,530,846
SAP AG		157,185		6,983,239
				66,359,054
Hong Kong–2.53%
Esprit Holdings Ltd.		1,126,735		6,076,041
Hutchison Whampoa Ltd.		1,785,000		11,020,122
Li & Fung Ltd.		1,462,000		6,544,428
				23,640,591
India–2.07%
Bharat Heavy Electricals Ltd.		110,887		5,840,176
Infosys Technologies Ltd.		226,553		13,537,670
				19,377,846
Israel–2.51%
Teva Pharmaceutical Industries Ltd.–ADR		450,273		23,409,693
Italy–1.70%
Finmeccanica S.p.A.		727,582		7,551,755
UniCredit S.p.A.		3,745,577		8,315,770
				15,867,525
Japan–7.18%
Denso Corp.		283,400		7,837,643
Fanuc Ltd.		96,500		10,829,401
Hoya Corp.		379,800		8,066,922
Keyence Corp.		40,800		9,388,231
Komatsu Ltd.		343,900		6,216,054
Nidec Corp.		188,400		15,783,717
Toyota Motor Corp.		258,600		8,895,606
				67,017,574
Mexico–2.91%
America Movil S.A.B de C.V.–Series L–ADR		383,410		18,211,975
Fomento Economico Mexicano, S.A.B. de C.V.–ADR		20,127		868,480
Grupo Televisa S.A.–ADR		465,946		8,112,120
				27,192,575
Netherlands–4.27%
Koninklijke (Royal) KPN N.V.		727,300		9,288,684
Koninklijke Ahold N.V.		861,338		10,669,220
TNT N.V.		416,726		10,505,417
Unilever N.V.		347,021		9,463,567
				39,926,888

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

Invesco V.I. International Growth Fund

	Shares		Value
Norway–0.41%
Petroleum Geo-Services A.S.A.(a)		461,001	$	3,848,362
Philippines–1.18%
Philippine Long Distance Telephone Co.		214,790		11,017,002
Russia–1.61%
Gazprom–ADR		490,742		9,230,092
VimpelCom Ltd.–ADR(a)		358,456		5,799,818
				15,029,910
Singapore–3.17%
K-Green Trust(a)		438,000		328,641
Keppel Corp. Ltd.		2,190,000		13,194,923
United Overseas Bank Ltd.		1,156,000		16,058,109
				29,581,673
South Korea–2.59%
Hyundai Mobis		102,160		17,111,721
NHN Corp.(a)		47,347		7,047,227
				24,158,948
Spain–0.49%
Telefonica S.A.		249,447		4,607,355
Switzerland–7.71%
Julius Baer Group Ltd.		208,947		5,948,065
Nestle S.A.		409,544		19,757,737
Novartis AG		197,719		9,591,288
Roche Holding AG		160,037		21,973,801
Syngenta AG		63,688		14,704,745
				71,975,636
Taiwan–2.84%
Hon Hai Precision Industry Co., Ltd.		2,253,000		7,912,441
MediaTek Inc.		448,000		6,247,975
Taiwan Semiconductor Manufacturing Co. Ltd.–ADR		1,267,523		12,371,024
				26,531,440
Turkey–0.89%
Akbank T.A.S.		1,741,766		8,316,826
United Kingdom–20.91%
BG Group PLC		733,154		10,850,771
British American Tobacco PLC		379,180		12,004,247
Capita Group PLC		472,831		5,186,658
Centrica PLC		3,011,607		13,259,302
Compass Group PLC		2,056,810		15,601,874
Imperial Tobacco Group PLC		685,619		19,112,783
Informa PLC		1,587,631		8,353,763
International Power PLC		3,386,130		14,998,933
Kingfisher PLC		1,523,690		4,727,622
Next PLC		271,096		8,020,713
Reckitt Benckiser Group PLC		378,815		17,519,175
Reed Elsevier PLC		1,117,207		8,245,910
Shire PLC		881,029		17,904,367
Smith & Nephew PLC		478,567		4,504,863
Tesco PLC		2,342,972		13,189,398
Vodafone Group PLC		6,553,363		13,577,289
WPP PLC		874,407		8,221,078
				195,278,746
Total Common Stocks & Other Equity Interests (Cost $704,075,593)				879,775,288
Preferred Stocks–0.97%
Brazil–0.97%
Petroleo Brasileiro S.A.–ADR–Pfd. (Cost $5,890,149)		304,695		9,079,911
Money Market Funds–4.75%
Liquid Assets Portfolio–Institutional Class(b)		22,177,461		22,177,461
Premier Portfolio–Institutional Class(b)		22,177,461		22,177,461
Total Money Market Funds (Cost $44,354,922)				44,354,922
TOTAL INVESTMENTS–99.92% (Cost $754,320,664)				933,210,121
OTHER ASSETS LESS LIABILITIES–0.08%				738,287
NET ASSETS–100.00%				933,948,408

Investment Abbreviations:

ADR	– American Depositary Receipt
Pfd.	– Preferred

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.

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

Invesco V.I. International Growth Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Consumer Discretionary	16.1	%
Consumer Staples	14.6
Health Care	14.6
Financials	9.9
Information Technology	9.4
Industrials	8.9
Energy	8.7
Telecommunication Services	6.7
Materials	3.3
Utilities	3.0
Money Market Funds Plus Other Assets Less Liabilities	4.8

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

Invesco V.I. International Growth Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $709,965,742)	$	888,855,199
Investments in affiliated money market funds, at value and cost		44,354,922
Total investments, at value (Cost $754,320,664)		933,210,121
Cash		487,364
Foreign currencies		2,242,414
Receivables for:
Investments sold		1,577,072
Fund shares sold		828,931
Dividends		3,723,077
Investment for trustee deferred compensation and retirement plans		44,642
Other assets		2,637
Total assets		942,116,258
Liabilities:
Payables for:
Investments purchased		379,760
Fund shares reacquired		5,579,005
Accrued fees to affiliates		1,613,779
Accrued other operating expenses		462,959
Trustee deferred compensation and retirement plans		132,347
Total liabilities		8,167,850
Net assets applicable to shares outstanding	$	933,948,408
Net assets consist of:
Shares of beneficial interest	$	1,046,845,237
Undistributed net investment income		36,925,575
Undistributed net realized gain (loss)		(328,701,574	)
Unrealized appreciation		178,879,170
	$	933,948,408
Net Assets:
Series I	$	475,454,502
Series II	$	458,493,906
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		19,965,489
Series II		19,559,348
Series I:
Net asset value per share	$	23.81
Series II:
Net asset value per share	$	23.44

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $2,622,077)	$	26,651,442
Dividends from affiliated money market funds		58,296
Total investment income		26,709,738
Expenses:
Advisory fees		6,285,633
Administrative services fees		2,378,642
Custodian fees		424,054
Distribution fees — Series II		1,569,160
Transfer agent fees		29,991
Trustees’ and officers’ fees and benefits		38,155
Other		65,048
Total expenses		10,790,683
Less: Fees waived		(112,581	)
Net expenses		10,678,102
Net investment income		16,031,636
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(1,349))		(42,049,558	)
Foreign currencies		(3,311,366	)
		(45,360,924	)
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes of $855,181)		(139,954,065	)
Foreign currencies		(315,729	)
		(140,269,794	)
Net realized and unrealized gain (loss)		(185,630,718	)
Net increase (decrease) in net assets resulting from operations	$	(169,599,082	)

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

Invesco V.I. International Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	16,031,636		$	20,309,315
Net realized gain (loss)		(45,360,924	)		(147,739,857	)
Change in net unrealized appreciation (depreciation)		(140,269,794	)		630,344,796
Net increase (decrease) in net assets resulting from operations		(169,599,082	)		502,914,254
Distributions to shareholders from net investment income:
Series I		—			(7,359,852	)
Series II		—			(17,849,719	)
Total distributions from net investment income		—			(25,209,571	)
Share transactions–net:
Series I		(35,562,883	)		(27,076,452	)
Series II		(918,286,730	)		366,967,140
Net increase (decrease) in net assets resulting from share transactions		(953,849,613	)		339,890,688
Net increase (decrease) in net assets		(1,123,448,695	)		817,595,371
Net assets:
Beginning of period		2,057,397,103			1,239,801,732
End of period (includes undistributed net investment income of $36,925,575 and $20,893,939, respectively)	$	933,948,408		$	2,057,397,103

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. International Growth Fund, formerly AIM V.I. International Growth Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. International Growth Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. International Growth Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.75%
Over $250 million		0	.70%

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

  The Adviser has contractually agreed, through at least April 30, 2011 to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $112,581.

Invesco V.I. International Growth Fund

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $194,924 for accounting and fund administrative services and reimbursed $2,183,718 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

Invesco V.I. International Growth Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1*		Level 2*		Level 3		Total
Australia	$	—	$	50,778,760	$	—	$	50,778,760
Belgium		—		18,164,935		—		18,164,935
Brazil		18,630,803		—		—		18,630,803
Canada		59,279,821		—		—		59,279,821
China		—		12,469,732		—		12,469,732
Denmark		—		14,730,801		—		14,730,801
France		—		41,662,703		—		41,662,703
Germany		—		66,359,054		—		66,359,054
Hong Kong		—		23,640,591		—		23,640,591
India		—		19,377,846		—		19,377,846
Israel		23,409,693		—		—		23,409,693
Italy		—		15,867,525		—		15,867,525
Japan		—		67,017,574		—		67,017,574
Mexico		27,192,575		—		—		27,192,575
Netherlands		—		39,926,888		—		39,926,888
Norway		—		3,848,362		—		3,848,362
Philippines		—		11,017,002		—		11,017,002
Russia		5,799,818		9,230,092		—		15,029,910
Singapore		328,641		29,253,032		—		29,581,673
South Korea		—		24,158,948		—		24,158,948
Spain		—		4,607,355		—		4,607,355
Switzerland		—		71,975,636		—		71,975,636
Taiwan		12,371,024		14,160,416		—		26,531,440
Turkey		—		8,316,826		—		8,316,826
United Kingdom		—		195,278,746		—		195,278,746
United States		44,354,922		—		—		44,354,922
Total Investments	$	191,367,297	$	741,842,824	$	—	$	933,210,121

*  Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities sales of $30,109, which resulted in net realized gains (losses) of $(1,349).

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $3,654 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

Invesco V.I. International Growth Fund

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	87,932,439
December 31, 2017		143,189,697
Total capital loss carryforward	$	231,122,136

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $361,240,191 and $1,174,285,293, 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	$	149,956,102
Aggregate unrealized (depreciation) of investment securities		(18,539,276	)
Net unrealized appreciation of investment securities	$	131,416,826
Cost of investments for tax purposes is $801,793,295.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		1,231,188		$	31,675,018			3,456,056		$	76,132,583
Series II		4,277,814			107,976,826			21,080,766			443,187,963
Issued as reinvestment of dividends:
Series I		—			—			284,164			7,359,852
Series II		—			—			698,893			17,849,719
Reacquired:
Series I		(2,677,760	)		(67,237,901	)		(5,238,473	)		(110,568,887	)
Series II		(43,253,398	)		(1,026,263,556	)		(4,496,473	)		(94,070,542	)
Net increase (decrease) in share activity		(40,422,156	)	$	(953,849,613	)		15,784,933		$	339,890,688

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 56% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. International Growth Fund

NOTE 10—Financial Highlights

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

																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	26.01	$	0.25	$	(2.45	)	$	(2.20	)	$	—		$	—		$	—		$	23.81		(8.46	)%	$	475,455		1.03	%(d)		1.04	%(d)		1.98	%(d)		22	%
Year ended 12/31/09		19.49		0.32		6.55			6.87			(0.35	)		—			(0.35	)		26.01		35.24			556,883		1.02			1.04			1.47			27
Year ended 12/31/08		33.63		0.54		(14.16	)		(13.62	)		(0.15	)		(0.37	)		(0.52	)		19.49		(40.38	)		446,437		1.05			1.06			1.96			44
Year ended 12/31/07		29.44		0.34		3.98			4.32			(0.13	)		—			(0.13	)		33.63		14.68			792,779		1.06			1.07			1.06			20
Year ended 12/31/06		23.17		0.23		6.32			6.55			(0.28	)		—			(0.28	)		29.44		28.28			563,460		1.10			1.10			0.90			34
Year ended 12/31/05		19.77		0.23		3.31			3.54			(0.14	)		—			(0.14	)		23.17		17.93			444,608		1.11			1.11			1.11			36
Series II
Six months ended 06/30/10		25.63		0.22		(2.41	)		(2.19	)		—			—			—			23.44		(8.54	)		458,494		1.28	(d)		1.29	(d)		1.73	(d)		22
Year ended 12/31/09		19.23		0.27		6.44			6.71			(0.31	)		—			(0.31	)		25.63		34.91			1,500,514		1.27			1.29			1.22			27
Year ended 12/31/08		33.24		0.45		(13.96	)		(13.51	)		(0.13	)		(0.37	)		(0.50	)		19.23		(40.55	)		793,365		1.30			1.31			1.71			44
Year ended 12/31/07		29.16		0.26		3.94			4.20			(0.12	)		—			(0.12	)		33.24		14.41			745,206		1.31			1.32			0.81			20
Year ended 12/31/06		23.00		0.17		6.25			6.42			(0.26	)		—			(0.26	)		29.16		27.92			163,657		1.35			1.35			0.65			34
Year ended 12/31/05		19.65		0.18		3.30			3.48			(0.13	)		—			(0.13	)		23.00		17.70			54,658		1.36			1.36			0.86			36

(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. Total returns are not annualized for periods less than a year and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 are based on average daily net assets (000’s omitted) of $527,190 and $1,265,731 for Series I and Series II shares, respectively.

Invesco V.I. International Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	915.40	$	4.89	$	1,019.69	$	5.16		1.03	%
Series II		1,000.00		914.60		6.08		1,018.45		6.41		1.28

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. International Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years

Invesco V.I. International Growth Fund

to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — International Growth Funds Index. The Board noted that the performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one year period and the first quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was below the effective fee rate for the other mutual fund. The Board also noted that Invesco Advisers sub-advises other mutual funds with similar investment strategies and that the sub-advisory fee is below the advisory fee for the Fund.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. International Growth Fund

		Invesco V.I. Large Cap Growth Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VILCG-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares*	-6.35	%
Series II Shares*	-6.48
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell 1000 Growth Index▼ (Style-Specific Index)	-7.65
Lipper VUF Large-Cap Growth Funds Index▼ (Peer Group Index)	-8.85

^▼ Lipper Inc.

* Performance includes litigation proceeds. Had these proceeds not been received, total return would have been lower.

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

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

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

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (8/29/03)	2.23	%
5 Years	-0.26
1 Year	12.80
Series II Shares
Inception (8/29/03)	2.01	%
5 Years	-0.51
1 Year	12.55

Performance includes litigation proceeds. Had these proceeds not been received, total return would have been lower.

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.02% 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 Series I and Series II shares was 1.16% and 1.41%, 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.

     Invesco V.I. Large Cap Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246.

     As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     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 April 30, 2011. See current prospectus for more information.

Invesco V.I. Large Cap Growth Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks–85.46%
Aerospace & Defense–2.03%
Goodrich Corp.		17,973	$	1,190,711
Air Freight & Logistics–1.63%
C.H. Robinson Worldwide, Inc.		10,761		598,957
Expeditors International of Washington, Inc.		10,286		354,970
				953,927
Airlines–0.49%
Continental Airlines, Inc.–Class B(b)		12,915		284,130
Apparel Retail–3.78%
Limited Brands, Inc.		46,674		1,030,095
Ross Stores, Inc.		22,223		1,184,264
				2,214,359
Application Software–1.97%
Salesforce.com, Inc.(b)		13,443		1,153,678
Cable & Satellite–3.08%
Comcast Corp.–Class A		69,703		1,210,741
Time Warner Cable Inc.		11,362		591,733
				1,802,474
Casinos & Gaming–3.12%
Las Vegas Sands Corp.(b)		34,858		771,756
Wynn Resorts Ltd.		13,833		1,055,043
				1,826,799
Communications Equipment–1.01%
Cisco Systems, Inc.(b)		27,762		591,608
Computer Hardware–6.94%
Apple Inc.(b)		16,164		4,065,731
Computer Storage & Peripherals–2.60%
EMC Corp.(b)		83,220		1,522,926
Consumer Finance–2.93%
American Express Co.		43,297		1,718,891
Data Processing & Outsourced Services–2.02%
MasterCard, Inc.–Class A		3,069		612,357
Visa Inc.–Class A		8,033		568,335
				1,180,692
Electrical Components & Equipment–0.74%
Cooper Industries PLC (Ireland)		9,894		435,336
Gas Utilities–1.00%
Questar Corp.		12,935		588,413
General Merchandise Stores–1.54%
Dollar Tree, Inc.(b)		21,639		900,811
Gold–3.42%
Barrick Gold Corp. (Canada)		19,938		905,385
Newmont Mining Corp.		17,775		1,097,428
				2,002,813
Health Care Distributors–5.09%
AmerisourceBergen Corp.		28,985		920,274
Cardinal Health, Inc.		26,979		906,764
McKesson Corp.		17,167		1,152,936
				2,979,974
Health Care Equipment–4.07%
Edwards Lifesciences Corp.(b)		6,930		388,219
Hospira, Inc.(b)		14,732		846,353
Intuitive Surgical, Inc.(b)		3,650		1,152,013
				2,386,585
Health Care Services–4.47%
Express Scripts, Inc.(b)		18,613		875,183
Medco Health Solutions, Inc.(b)		29,620		1,631,470
Quest Diagnostics Inc.		2,266		112,779
				2,619,432
Industrial Machinery–1.53%
Ingersoll-Rand PLC (Ireland)		25,930		894,326
Integrated Oil & Gas–1.98%
Occidental Petroleum Corp.		15,070		1,162,650
Internet Retail–0.95%
Amazon.com, Inc.(b)		5,090		556,133
Internet Software & Services–1.28%
Google Inc.–Class A(b)		1,682		748,406
IT Consulting & Other Services–3.39%
Accenture PLC–Class A (Ireland)		3,017		116,607
Cognizant Technology Solutions Corp.–Class A(b)		13,422		671,905
International Business Machines Corp.		9,689		1,196,398
				1,984,910
Life Sciences Tools & Services–1.72%
Thermo Fisher Scientific, Inc.(b)		20,566		1,008,762

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

Invesco V.I. Large Cap Growth Fund

	Shares		Value
Oil & Gas Exploration & Production–0.99%
Ultra Petroleum Corp.(b)		13,139	$	581,401
Packaged Foods & Meats–4.00%
General Mills, Inc.		32,985		1,171,627
Mead Johnson Nutrition Co.		23,365		1,171,054
				2,342,681
Personal Products–1.35%
Estee Lauder Cos. Inc. (The)–Class A		14,238		793,484
Property & Casualty Insurance–3.07%
Berkshire Hathaway Inc.–Class B(b)		22,600		1,800,994
Railroads–2.21%
Union Pacific Corp.		18,631		1,295,041
Restaurants–2.64%
McDonald’s Corp.		13,701		902,485
Starbucks Corp.		26,513		644,266
				1,546,751
Semiconductors–2.32%
Broadcom Corp.–Class A		17,892		589,899
Xilinx, Inc.		30,513		770,759
				1,360,658
Soft Drinks–3.22%
Dr. Pepper Snapple Group, Inc.		50,519		1,888,905
Systems Software–1.93%
Check Point Software Technologies Ltd. (Israel)(b)		11,056		325,931
Rovi Corp.(b)		10,021		379,896
VMware, Inc.–Class A(b)		6,789		424,923
				1,130,750
Wireless Telecommunication Services–0.95%
American Tower Corp.–Class A(b)		12,443		553,714
Total Common Stocks (Cost $45,073,130)				50,068,856
Preferred Stocks–2.18%
Brewers–2.18%
Companhia de Bebidas das Americas (Brazil)–Pfd.–ADR (Cost $1,204,696)		12,628		1,275,555
Money Market Funds–8.59%
Liquid Assets Portfolio–Institutional Class(c)		2,515,024		2,515,024
Premier Portfolio–Institutional Class(c)		2,515,024		2,515,024
Total Money Market Funds (Cost $5,030,048)				5,030,048
TOTAL INVESTMENTS–96.23% (Cost $51,307,874)				56,374,459
OTHER ASSETS LESS LIABILITIES–3.77%				2,210,928
NET ASSETS–100.00%			$	58,585,387

Investment Abbreviations:

ADR	– American Depositary Receipt
Pfd.	– Preferred

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Information Technology	23.4	%
Health Care	15.4
Consumer Discretionary	15.1
Consumer Staples	10.8
Industrials	8.6
Financials	6.0
Materials	3.4
Energy	3.0
Utilities	1.0
Telecommunication Services	0.9
Money Market Funds Plus Other Assets Less Liabilities	12.4

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

Invesco V.I. Large Cap Growth Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $46,277,826)	$	51,344,411
Investments in affiliated money market funds, at value and cost		5,030,048
Total investments, at value (Cost $51,307,874)		56,374,459
Receivables for:
Investments sold		25,263,688
Investments sold to affiliates		1,878,924
Fund shares sold		7,838
Dividends		52,168
Investment for trustee deferred compensation and retirement plans		24,220
Other assets		2,627
Total assets		83,603,924
Liabilities:
Payables for:
Investments purchased		18,365,467
Investments purchased from affiliates		6,437,110
Fund shares reacquired		112,077
Accrued fees to affiliates		35,242
Accrued other operating expenses		33,035
Trustee deferred compensation and retirement plans		35,606
Total liabilities		25,018,537
Net assets applicable to shares outstanding	$	58,585,387
Net assets consist of:
Shares of beneficial interest	$	64,855,847
Undistributed net investment income		316,662
Undistributed net realized gain (loss)		(11,664,467	)
Unrealized appreciation		5,077,345
	$	58,585,387
Net Assets:
Series I	$	58,066,749
Series II	$	518,638
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		5,049,466
Series II		45,505
Series I:
Net asset value per share	$	11.50
Series II:
Net asset value per share	$	11.40

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $3,842)	$	388,288
Dividends from affiliated money market funds (includes securities lending income of $1,664)		3,013
Total investment income		391,301
Expenses:
Advisory fees		228,256
Administrative services fees		103,232
Custodian fees		3,981
Distribution fees — Series II		775
Transfer agent fees		4,667
Trustees’ and officers’ fees and benefits		9,821
Professional services fees		22,469
Other		5,913
Total expenses		379,114
Less: Fees waived		(47,692	)
Net expenses		331,422
Net investment income		59,879
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $447,212)		3,135,431
Foreign currencies		(318	)
		3,135,113
Change in net unrealized appreciation (depreciation) of:
Investment securities		(7,182,378	)
Foreign currencies		10,186
		(7,172,192	)
Net realized and unrealized gain (loss)		(4,037,079	)
Net increase (decrease) in net assets resulting from operations	$	(3,977,200	)

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

Invesco V.I. Large Cap Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	59,879		$	282,650
Net realized gain (loss)		3,135,113			(3,064,495	)
Change in net unrealized appreciation (depreciation)		(7,172,192	)		17,627,936
Net increase (decrease) in net assets resulting from operations		(3,977,200	)		14,846,091
Distributions to shareholders from net investment income:
Series I		—			(225,916	)
Series II		—			(60	)
Total distributions from net investment income		—			(225,976	)
Share transactions–net:
Series I		(5,826,389	)		(9,298,793	)
Series II		(142,616	)		(166,783	)
Net increase (decrease) in net assets resulting from share transactions		(5,969,005	)		(9,465,576	)
Net increase (decrease) in net assets		(9,946,205	)		5,154,539
Net assets:
Beginning of period		68,531,592			63,377,053
End of period (includes undistributed net investment income of $316,662 and $256,783, respectively)	$	58,585,387		$	68,531,592

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Large Cap Growth Fund, formerly AIM V.I. Large Cap Growth Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. Large Cap Growth Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Large Cap Growth Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Large 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 Net Assets	Rate
First $250 million		0	.695%
Next $250 million		0	.67%
Next $500 million		0	.645%
Next $1.5 billion		0	.62%
Next $2.5 billion		0	.595%
Next $2.5 billion		0	.57%
Next $2.5 billion		0	.545%
Over $10 billion		0	.52%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.01% and Series II shares to 1.26% 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 net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $47,692.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $78,437 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation

Invesco V.I. Large Cap Growth Fund

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 June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	56,374,459	$	—	$	—	$	56,374,459

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $6,437,110 and securities sales of $2,321,577, which resulted in net realized gains of $447,212.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,371 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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.

Invesco V.I. Large Cap Growth Fund

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	3,544,700
December 31, 2013		10,283
December 31, 2014		1,757,332
December 31, 2016		3,185,835
December 31, 2017		5,433,762
Total capital loss carryforward	$	13,931,912

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $37,654,810 and $50,550,273, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	5,627,769
Aggregate unrealized (depreciation) of investment securities		(1,428,852	)
Net unrealized appreciation of investment securities	$	4,198,917
Cost of investments for tax purposes is $52,175,542.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		117,795		$	1,477,579			1,174,128		$	11,561,836
Series II		221			2,826			143			1,375
Issued as reinvestment of dividends:
Series I		—			—			19,033			225,916
Series II		—			—			5			60
Reacquired:
Series I		(589,987	)		(7,303,968	)		(2,077,325	)		(21,086,545	)
Series II		(12,173	)		(145,442	)		(16,099	)		(168,218	)
Net increase (decrease) in share activity		(484,144	)	$	(5,969,005	)		(900,115	)	$	(9,465,576	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 90% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Large Cap Growth Fund

NOTE 10—Financial Highlights

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

																												Ratio of			Ratio of
						Net gains																						expenses			expenses
						(losses) on																						to average			to average net			Ratio of net
	Net asset		Net			securities						Dividends			Distributions													net assets			assets without			investment
	value,		investment			(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss) to
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			average net			Portfolio
	of period		(loss)			unrealized)			operations			income			gains			Distributions			of period		Return(a)			(000s omitted)		absorbed			absorbed			assets			turnover(b)
Series I
Six months ended 06/30/10	$	12.28	$	0.01	(c)	$	(0.79	)	$	(0.78	)	$	—		$	—		$	—		$	11.50		(6.35	)%	$	58,067		1.00	%(d)		1.15	%(d)		0.18	%(d)		60	%
Year ended 12/31/09		9.78		0.04	(c)		2.50	(e)		2.54			(0.04	)		—			(0.04	)		12.28		25.99	(e)		67,831		1.01			1.15			0.44			57
Year ended 12/31/08		15.85		0.03	(c)		(6.10	)		(6.07	)		(0.00	)		—			(0.00	)		9.78		(38.29	)		62,665		1.01			1.10			0.23			41
Year ended 12/31/07		13.71		0.02			2.13			2.15			(0.01	)		—			(0.01	)		15.85		15.64			129,071		1.01			1.08			0.11			58
Year ended 12/31/06		12.71		0.02			1.00			1.02			(0.02	)		—			(0.02	)		13.71		8.05			120,825		1.02			1.23			0.06			76
Year ended 12/31/05		11.86		(0.01	)(c)		0.88			0.87			—			(0.02	)		(0.02	)		12.71		7.30			4,352		1.13			7.30			(0.06	)		99
Series II
Six months ended 06/30/10		12.19		(0.00	)(c)		(0.79	)		(0.79	)		—			—			—			11.40		(6.48	)		519		1.25	(d)		1.40	(d)		(0.07	)(d)		60
Year ended 12/31/09		9.70		0.02	(c)		2.47	(e)		2.49			(0.00	)		—			(0.00	)		12.19		25.68	(e)		700		1.26			1.40			0.19			57
Year ended 12/31/08		15.75		0.00	(c)		(6.05	)		(6.05	)		—			—			—			9.70		(38.41	)		712		1.26			1.35			(0.02	)		41
Year ended 12/31/07		13.66		(0.04	)		2.13			2.09			—			—			—			15.75		15.30			1,259		1.26			1.33			(0.14	)		58
Year ended 12/31/06		12.67		(0.01	)		1.00			0.99			—			—			—			13.66		7.81			1,949		1.27			1.48			(0.19	)		76
Year ended 12/31/05		11.84		(0.03	)(c)		0.88			0.85			—			(0.02	)		(0.02	)		12.67		7.15			636		1.33			7.55			(0.26	)		99

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $65,605 and $625 for Series I and Series II shares, respectively.
(e)	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 $2.44 and $2.41 for Series I and Series II shares, respectively and total returns would have been lower.

Invesco V.I. Large Cap Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	936.50	$	4.80	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		935.20		6.00		1,018.60		6.26		1.25

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Large Cap Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper

Invesco V.I. Large Cap Growth Fund

performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Large-Cap Growth Index. The Board noted that the performance of Series I shares of the Fund was in the fifth quintile of its performance universe for the one year period and the fourth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. Invesco Advisers advised the Board noted that the portfolio management team has a conservative, quality bias that underperformed during the low-quality rally in 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund. The Board noted that Invesco Advisers sub-advises two other mutual funds and the effective sub-advisory fee rate is below the advisory effective fee rate of the Fund.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board also considered the effect this expense limitation would have on the Fund’s estimated total expenses.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Large Cap Growth Fund

		Invesco V.I. Leisure Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

I-VILEI-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-5.34	%
Series II Shares	-5.34
S&P 500 Index▼ (Broad Market Index)	-6.64
S&P Consumer Discretionary Index▼ (Style-Specific Index)	-1.59

^▼ Lipper Inc.

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

     The S&P Consumer Discretionary Index is an unmanaged index considered representative of the consumer discretionary market.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (4/30/02)	1.02	%
5 Years	-2.24
1 Year	17.06
Series II Shares
Inception	0.80	%
5 Years	-2.46
1 Year	17.00

Series II shares incepted on April 30, 2004. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.02% 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 Series I and Series II shares was 1.75% and 2.00%, 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.

     Invesco V.I. Leisure Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     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 April 30, 2011. See current prospectus for more information.

Invesco V.I. Leisure Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.79%
Advertising–9.24%
Interpublic Group of Cos., Inc. (The)(b)		65,107	$	464,213
Lamar Advertising Co.–Class A(b)		11,903		291,861
National CineMedia, Inc.		11,362		189,291
Omnicom Group Inc.		19,957		684,525
				1,629,890
Apparel Retail–6.18%
Abercrombie & Fitch Co.–Class A		8,944		274,491
American Eagle Outfitters, Inc.		19,583		230,100
Gap, Inc. (The)		6,385		124,252
J. Crew Group, Inc.(b)		3,335		122,761
TJX Cos., Inc. (The)		4,649		195,026
Urban Outfitters, Inc.(b)		4,174		143,544
				1,090,174
Apparel, Accessories & Luxury Goods–3.95%
Carter’s, Inc.(b)		4,948		129,885
Coach, Inc.		5,228		191,083
Hanesbrands, Inc.(b)		8,174		196,667
Polo Ralph Lauren Corp.		2,453		178,971
				696,606
Brewers–1.08%
Heineken N.V. (Netherlands)		4,493		190,494
Broadcasting–7.25%
Discovery Communications, Inc.–Class A(b)		12,078		431,306
Grupo Televisa S.A.–ADR (Mexico)		18,266		318,011
Scripps Networks Interactive Inc.–Class A		13,104		528,615
				1,277,932
Cable & Satellite–2.33%
DIRECTV–Class A(b)		12,112		410,839
Casinos & Gaming–6.55%
International Game Technology		28,666		450,056
MGM Resorts International(b)(c)		7,116		68,598
Penn National Gaming, Inc.(b)		10,738		248,048
WMS Industries Inc.(b)		9,884		387,947
				1,154,649
Department Stores–4.00%
Kohl’s Corp.(b)		6,791		322,573
Macy’s, Inc.		10,620		190,098
Nordstrom, Inc.		5,995		192,979
				705,650
Food Retail–1.92%
Woolworths Ltd. (Australia)		14,907		337,754
Footwear–3.05%
NIKE, Inc.–Class B		7,962		537,833
General Merchandise Stores–3.14%
Target Corp.		11,255		553,408
Home Improvement Retail–6.15%
Home Depot, Inc. (The)		20,459		574,284
Lowe’s Cos., Inc.		24,970		509,887
				1,084,171
Hotels, Resorts & Cruise Lines–8.48%
Carnival Corp.(d)		5,718		172,912
Choice Hotels International, Inc.		6,457		195,066
Hyatt Hotels Corp.–Class A(b)		5,597		207,593
Marriott International, Inc.–Class A		20,625		617,513
Orient-Express Hotels Ltd.–Class A (Bermuda)(b)		19,076		141,162
Regal Hotels International Holdings Ltd. (Hong Kong)		413,800		161,746
				1,495,992
Hypermarkets & Super Centers–1.49%
Costco Wholesale Corp.		4,785		262,362
Internet Retail–1.82%
Amazon.com, Inc.(b)		2,941		321,334
Internet Software & Services–3.97%
Google Inc.–Class A(b)		404		179,760
GSI Commerce, Inc.(b)		7,772		223,833
Knot, Inc. (The)(b)		20,356		158,370
OpenTable, Inc.(b)(c)		3,343		138,634
				700,597
Motorcycle Manufacturers–1.01%
Harley-Davidson, Inc.		8,011		178,085
Movies & Entertainment–12.51%
Time Warner Inc.		13,284		384,040
Viacom Inc.–Class A(c)		7,140		254,612

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

Invesco V.I. Leisure Fund

	Shares		Value
Movies & Entertainment–(continued)
Viacom Inc.–Class B		9,053	$	283,993
Walt Disney Co. (The)		40,743		1,283,405
				2,206,050
Personal Products–1.00%
Estee Lauder Cos. Inc. (The)–Class A		3,168		176,553
Restaurants–10.91%
Brinker International, Inc.		19,179		277,329
Buffalo Wild Wings Inc.(b)		4,235		154,916
Darden Restaurants, Inc.		10,749		417,599
Jack in the Box Inc.(b)		12,806		249,077
McDonald’s Corp.		4,890		322,104
P.F. Chang’s China Bistro, Inc.		4,985		197,655
Starbucks Corp.		12,550		304,965
				1,923,645
Specialty Stores–2.76%
Staples, Inc.		19,163		365,055
Tiffany & Co.		3,233		122,563
				487,618
Total Common Stocks & Other Equity Interests (Cost $16,791,566)				17,421,636
Money Market Funds–1.01%
Liquid Assets Portfolio–Institutional Class(e)		88,547		88,547
Premier Portfolio–Institutional Class(e)		88,547		88,547
Total Money Market Funds (Cost $177,094)				177,094
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–99.80% (Cost $16,968,660)				17,598,730
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–2.04%
Liquid Assets Portfolio–Institutional Class (Cost $360,195)(e)(f)		360,195		360,195
TOTAL INVESTMENTS–101.84% (Cost $17,328,855)				17,958,925
OTHER ASSETS LESS LIABILITIES–(1.84)%				(324,544	)
NET ASSETS–100.00%			$	17,634,381

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of this security was out on loan at June 30, 2010.
(d)	Each unit represents one common share and one trust share.
(e)	The money market fund and the Fund are affiliated by having the same investment adviser.
(f)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Consumer Discretionary	89.3	%
Consumer Staples	5.5
Information Technology	4.0
Money Market Funds Plus Other Assets Less Liabilities	1.2

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

Invesco V.I. Leisure Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $16,791,566)*	$	17,421,636
Investments in affiliated money market funds, at value and cost		537,289
Total investments, at value (Cost $17,328,855)		17,958,925
Foreign currencies, at value (Cost $10,920)		10,451
Receivables for:
Fund shares sold		41,276
Dividends		21,160
Investment for trustee deferred compensation and retirement plans		8,937
Other assets		1,977
Total assets		18,042,726
Liabilities:
Payables for:
Fund shares reacquired		13
Collateral upon return of securities loaned		360,195
Accrued fees to affiliates		11,163
Accrued other operating expenses		25,005
Trustee deferred compensation and retirement plans		11,969
Total liabilities		408,345
Net assets applicable to shares outstanding	$	17,634,381
Net assets consist of:
Shares of beneficial interest	$	21,418,481
Undistributed net investment income		131,846
Undistributed net realized gain (loss)		(4,545,353	)
Unrealized appreciation		629,407
	$	17,634,381
Net Assets:
Series I	$	17,575,322
Series II	$	59,059
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		2,834,560
Series II		9,532
Series I:
Net asset value per share	$	6.20
Series II:
Net asset value per share	$	6.20

*  At June 30, 2010, securities with an aggregate value of $351,170 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $678)	$	141,556
Dividends from affiliated money market funds (includes securities lending income of $3,123)		3,224
Total investment income		144,780
Expenses:
Advisory fees		76,013
Administrative services fees		50,102
Custodian fees		5,508
Distribution fees — Series II		54
Transfer agent fees		1,279
Trustees’ and officers’ fees and benefits		9,136
Professional services fees		17,709
Other		6,226
Total expenses		166,027
Less: Fees waived		(63,778	)
Net expenses		102,249
Net investment income		42,531
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $17,892)		1,324,489
Foreign currencies		(11,756	)
		1,312,733
Change in net unrealized appreciation (depreciation) of:
Investment securities		(2,252,772	)
Foreign currencies		(574	)
		(2,253,346	)
Net realized and unrealized gain (loss)		(940,614	)
Net increase (decrease) in net assets resulting from operations	$	(898,082	)

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

Invesco V.I. Leisure Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	42,531		$	127,249
Net realized gain (loss)		1,312,733			(3,631,778	)
Change in net unrealized appreciation (depreciation)		(2,253,346	)		8,741,336
Net increase (decrease) in net assets resulting from operations		(898,082	)		5,236,807
Distributions to shareholders from net investment income:
Series I		—			(347,842	)
Series II		—			(128	)
Total distributions from net investment income		—			(347,970	)
Share transactions–net:
Series I		(1,867,333	)		(2,556,830	)
Series II		58,138			1,158
Net increase (decrease) in net assets resulting from share transactions		(1,809,195	)		(2,555,672	)
Net increase (decrease) in net assets		(2,707,277	)		2,333,165
Net assets:
Beginning of period		20,341,658			18,008,493
End of period (includes undistributed net investment income of $131,846 and $89,315, respectively)	$	17,634,381		$	20,341,658

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Leisure Fund, formerly AIM V.I. Leisure Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

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

Invesco V.I. Leisure Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service.
	Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Leisure Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly.
	The leisure sector depends on consumer discretionary spending, which generally falls during economic downturns.
J.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
K.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
L.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance.
	Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations.
	The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Leisure 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 Net Assets	Rate
First $250 million		0	.75%
Next $250 million		0	.74%
Next $500 million		0	.73%
Next $1.5 billion		0	.72%
Next $2.5 billion		0	.71%
Next $2.5 billion		0	.70%
Next $2.5 billion		0	.69%
Over $10 billion		0	.68%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Series I shares to 1.01% and Series II shares to 1.26% 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 net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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 reimbursement prior to the end of each fiscal year.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $63,778.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $25,307 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation

Invesco V.I. Leisure Fund

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 June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	17,268,930	$	689,995	$	—	$	17,958,925

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other AIM Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment advisor (or affiliated investment advisors), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $196,263 and securities sales of $136,726, which resulted in net realized gains of $17,892.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,322 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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.

Invesco V.I. Leisure Fund

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	850,432
December 31, 2017		4,976,585
Total capital loss carryforward	$	5,827,017

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

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $4,392,536 and $6,170,228, 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	$	2,399,049
Aggregate unrealized (depreciation) of investment securities		(1,800,048	)
Net unrealized appreciation of investment securities	$	599,001
Cost of investments for tax purposes is $17,359,924.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		23,173		$	161,892			15,116		$	86,339
Series II		17,144			120,582			195			1,057
Issued as reinvestment of dividends:
Series I		—			—			54,350			347,842
Series II		—			—			20			128
Reacquired:
Series I		(293,107	)		(2,029,225	)		(553,001	)		(2,991,011	)
Series II		(8,958	)		(62,444	)		(5	)		(27	)
Net increase (decrease) in share activity		(261,748	)	$	(1,809,195	)		(483,325	)	$	(2,555,672	)

^(a) There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund that owns 16% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with this entity whereby this entity sells units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity is also owned beneficially.

Invesco V.I. Leisure Fund

NOTE 10—Financial Highlights

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

																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset					(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net			securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income			unrealized)			operations			income			gains			Distributions			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	6.55	$	0.01	(c)	$	(0.36	)	$	(0.35	)	$	—		$	—		$	—		$	6.20		(5.34	)%	$	17,575		1.01	%(d)		1.64	%(d)		0.42	%(d)		22	%
Year ended 12/31/09		5.02		0.04	(c)		1.60			1.64			(0.11	)		—			(0.11	)		6.55		32.78			20,333		1.01			1.74			0.69			61
Year ended 12/31/08		12.67		0.12	(c)		(5.67	)		(5.55	)		(0.12	)		(1.98	)		(2.10	)		5.02		(43.04	)		18,003		1.01			1.44			1.15			7
Year ended 12/31/07		13.82		0.09			(0.15	)		(0.06	)		(0.24	)		(0.85	)		(1.09	)		12.67		(0.79	)		42,593		1.01			1.28			0.50			15
Year ended 12/31/06		11.86		0.07			2.83			2.90			(0.16	)		(0.78	)		(0.94	)		13.82		24.61			52,820		1.01			1.26			0.54			14
Year ended 12/31/05		12.38		0.04			(0.19	)		(0.15	)		(0.14	)		(0.23	)		(0.37	)		11.86		(1.19	)		54,192		1.16			1.31			0.34			32
Series II
Six months ended 06/30/10		6.55		0.01	(c)		(0.36	)		(0.35	)		—			—			—			6.20		(5.34	)		59		1.26	(d)		1.89	(d)		0.17	(d)		22
Year ended 12/31/09		5.02		0.02	(c)		1.61			1.63			(0.10	)		—			(0.10	)		6.55		32.47			9		1.26			1.99			0.44			61
Year ended 12/31/08		12.63		0.09	(c)		(5.64	)		(5.55	)		(0.08	)		(1.98	)		(2.06	)		5.02		(43.17	)		6		1.26			1.69			0.90			7
Year ended 12/31/07		13.78		0.05			(0.15	)		(0.10	)		(0.20	)		(0.85	)		(1.05	)		12.63		(1.13	)		9		1.26			1.53			0.25			15
Year ended 12/31/06		11.84		0.04			2.82			2.86			(0.14	)		(0.78	)		(0.92	)		13.78		24.28			14		1.26			1.51			0.29			14
Year ended 12/31/05		12.37		0.02			(0.19	)		(0.17	)		(0.13	)		(0.23	)		(0.36	)		11.84		(1.37	)		11		1.36			1.56			0.14			32

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $20,395 and $43 for Series I and Series II shares, respectively.

Invesco V.I. Leisure Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	946.60	$	4.87	$	1,019.79	$	5.06		1.01	%
Series II		1,000.00		946.60		6.08		1,018.55		6.31		1.26

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Leisure Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Leisure Fund

Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund.

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser. The Board noted that the performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period, the fifth quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that Invesco Advisers made changes to the Fund’s portfolio management team in 2009, and Invesco Advisers advised the Board that the team has a conservative, quality bias that underperformed during the low-quality rally in 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was the same as the effective fee rate for the other mutual fund.

  Other than the mutual fund described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board also considered the effect this fee waiver would have on the Fund’s total estimated expenses.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Leisure Fund

           Invesco V.I. Mid Cap Core Equity Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIMCCE-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-4.49	%
Series II Shares	-4.52
S&P 500 Index6 (Broad Market Index)	-6.64
Russell Midcap Index6 (Style-Specific Index)	-2.06
Lipper VUF Mid-Cap Core Funds Index6 (Peer Group Index)	-1.83

⁶ Lipper Inc.

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

     The Russell Midcap^® Index is an unmanaged index considered representative of mid-cap stocks. The Russell Midcap Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Lipper VUF Mid-Cap Core Funds Index is an unmanaged index considered representative of mid-cap core variable insurance underlying funds tracked by Lipper.

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

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

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (9/10/01)	5.58	%
5 Years	2.74
1 Year	16.12

Series II Shares
Inception (9/10/01)	5.34	%
5 Years	2.50
1 Year	15.95

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.07% and 1.32%, 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.

     Invesco V.I. Mid Cap Core Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. Mid Cap Core Equity Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–86.11%
Aerospace & Defense–5.73%
Alliant Techsystems Inc.(b)		85,379	$	5,298,621
Goodrich Corp.		51,302		3,398,757
ITT Corp.		184,570		8,290,884
Moog Inc.–Class A(b)		115,334		3,717,215
Precision Castparts Corp.		38,742		3,987,327
				24,692,804
Air Freight & Logistics–1.11%
Expeditors International of Washington, Inc.		138,652		4,784,881
Apparel, Accessories & Luxury Goods–1.23%
Carter’s, Inc.(b)		202,408		5,313,210
Asset Management & Custody Banks–3.26%
Legg Mason, Inc.		260,763		7,309,187
Northern Trust Corp.		144,665		6,755,855
				14,065,042
Biotechnology–1.91%
Biogen Idec Inc.(b)		77,592		3,681,740
Genzyme Corp.(b)		89,941		4,566,305
				8,248,045
Communications Equipment–2.08%
Juniper Networks, Inc.(b)		111,838		2,552,143
Motorola, Inc.(b)		987,238		6,436,792
				8,988,935
Computer Storage & Peripherals–0.21%
NetApp, Inc.(b)		24,799		925,251
Construction, Farm Machinery & Heavy Trucks–1.46%
WABCO Holdings Inc.(b)		199,676		6,285,800
Data Processing & Outsourced Services–1.52%
Western Union Co.		438,356		6,535,888
Distributors–0.15%
Genuine Parts Co.		16,283		642,364
Education Services–0.60%
Apollo Group, Inc.–Class A(b)		61,219		2,599,971
Electric Utilities–0.95%
Edison International		128,705		4,082,523
Electrical Components & Equipment–0.89%
Thomas & Betts Corp.(b)		110,402		3,830,949
Electronic Equipment & Instruments–1.26%
Agilent Technologies, Inc.(b)		191,111		5,433,286
Electronic Manufacturing Services–0.68%
Molex Inc.		160,307		2,924,000
Environmental & Facilities Services–1.76%
Republic Services, Inc.		254,745		7,573,569
Fertilizers & Agricultural Chemicals–0.50%
Scotts Miracle-Gro Co. (The)–Class A		48,396		2,149,266
Food Retail–2.69%
Kroger Co. (The)		103,865		2,045,102
Safeway Inc.		486,644		9,567,421
				11,612,523
Gas Utilities–0.14%
UGI Corp.		23,517		598,272
Health Care Equipment–7.33%
Boston Scientific Corp.(b)		1,865,416		10,819,413
Hologic, Inc.(b)		446,329		6,217,363
Hospira, Inc.(b)		68,897		3,958,132
St. Jude Medical, Inc.(b)		3,667		132,342
Teleflex Inc.		39,403		2,138,795
Varian Medical Systems, Inc.(b)		15,793		825,658
Zimmer Holdings, Inc.(b)		139,057		7,516,031
				31,607,734
Health Care Facilities–0.70%
Rhoen-Klinikum AG (Germany)(c)		136,159		3,024,878
Health Care Services–3.11%
DaVita, Inc.(b)		85,912		5,364,346
Laboratory Corp. of America Holdings(b)		47,532		3,581,536
Quest Diagnostics Inc.		89,960		4,477,309
				13,423,191
Health Care Supplies–1.31%
Cooper Cos., Inc. (The)		141,869		5,644,968
Household Products–0.54%
Energizer Holdings, Inc.(b)		46,124		2,319,115
Hypermarkets & Super Centers–1.45%
BJ’s Wholesale Club, Inc.(b)		169,188		6,261,648
Industrial Conglomerates–1.36%
Tyco International Ltd.		166,195		5,855,050

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

Invesco V.I. Mid Cap Core Equity Fund

	Shares		Value
Industrial Gases–0.12%
Air Products & Chemicals, Inc.		8,181	$	530,211
Industrial Machinery–2.75%
Actuant Corp.–Class A		160,620		3,024,475
Atlas Copco A.B.–Class A (Sweden)		236,378		3,461,624
Danaher Corp.		20,644		766,305
Pall Corp.		45,877		1,576,792
Parker Hannifin Corp.		54,808		3,039,652
				11,868,848
Insurance Brokers–1.61%
Marsh & McLennan Cos., Inc.		306,934		6,921,362
IT Consulting & Other Services–1.41%
Amdocs Ltd.(b)		227,148		6,098,924
Leisure Products–0.65%
Hasbro, Inc.		68,063		2,797,389
Life Sciences Tools & Services–4.05%
Pharmaceutical Product Development, Inc.		318,830		8,101,470
Techne Corp.		89,197		5,124,368
Waters Corp.(b)		65,471		4,235,974
				17,461,812
Managed Health Care–1.49%
Aetna Inc.		237,587		6,267,545
Health Net Inc.(b)		5,791		141,127
				6,408,672
Metal & Glass Containers–1.23%
Owens-Illinois, Inc.(b)		200,893		5,313,620
Multi-Sector Holdings–0.20%
PICO Holdings, Inc.(b)		28,327		848,960
Office Electronics–0.18%
Xerox Corp.		96,087		772,539
Office Services & Supplies–1.10%
Pitney Bowes Inc.		215,389		4,729,942
Oil & Gas Drilling–0.66%
Helmerich & Payne, Inc.		77,683		2,836,983
Oil & Gas Equipment & Services–3.42%
Baker Hughes Inc.		188,107		7,819,608
Cameron International Corp.(b)		87,281		2,838,378
Dresser-Rand Group, Inc.(b)		98,104		3,095,181
Smith International, Inc.		26,397		993,847
				14,747,014
Oil & Gas Exploration & Production–1.54%
Newfield Exploration Co.(b)		73,706		3,601,275
Penn West Energy Trust (Canada)		113,569		2,160,082
Pioneer Natural Resources Co.		8,220		488,679
Southwestern Energy Co.(b)		10,259		396,408
				6,646,444
Oil & Gas Refining & Marketing–0.52%
Valero Energy Corp.		124,717		2,242,412
Oil & Gas Storage & Transportation–1.26%
Williams Cos., Inc. (The)		296,500		5,420,020
Packaged Foods & Meats–0.24%
Kraft Foods Inc.–Class A		16,136		451,808
Sara Lee Corp.		42,182		594,766
				1,046,574
Paper Packaging–1.58%
Sealed Air Corp.		344,569		6,794,901
Personal Products–0.10%
Avon Products, Inc.		16,908		448,062
Pharmaceuticals–0.69%
Teva Pharmaceutical Industries Ltd.–ADR (Israel)		57,201		2,973,880
Property & Casualty Insurance–1.86%
Axis Capital Holdings Ltd.		21,306		633,214
Progressive Corp. (The)		394,026		7,376,167
				8,009,381
Research & Consulting Services–1.13%
Dun & Bradstreet Corp. (The)		72,840		4,889,021
Semiconductors–2.92%
Linear Technology Corp.		224,228		6,235,781
Microchip Technology Inc.(c)		112,448		3,119,307
Xilinx, Inc.		128,681		3,250,482
				12,605,570
Specialized Consumer Services–1.58%
H&R Block, Inc.		435,049		6,825,919
Specialized Finance–1.06%
Moody’s Corp.		229,724		4,576,102
Specialty Chemicals–3.10%
International Flavors & Fragrances Inc.		148,639		6,305,266
Sigma-Aldrich Corp.		141,695		7,060,662
				13,365,928
Systems Software–2.48%
Symantec Corp.(b)		769,816		10,685,046

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

Invesco V.I. Mid Cap Core Equity Fund

	Shares		Value
Thrifts & Mortgage Finance–2.40%
People’s United Financial Inc.		765,303	$	10,331,590
Wireless Telecommunication Services–0.85%
MetroPCS Communications, Inc.(b)		446,080		3,653,395
Total Common Stocks & Other Equity Interests (Cost $355,754,822)				371,273,684
Money Market Funds–13.89%
Liquid Assets Portfolio–Institutional Class(d)		29,945,613		29,945,613
Premier Portfolio–Institutional Class(d)		29,945,613		29,945,613
Total Money Market Funds (Cost $59,891,226)				59,891,226
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.00% (Cost $415,646,048)				431,164,910
	Shares
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.11%
Liquid Assets Portfolio–Institutional Class (Cost $4,782,949)(d)(e)		4,782,949		4,782,949
TOTAL INVESTMENTS–101.11% (Cost $420,428,997)				435,947,859
OTHER ASSETS LESS LIABILITIES–(1.11)%				(4,793,934	)
NET ASSETS–100.00%			$	431,153,925

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of this security was out on loan at June 30, 2010.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.
(e)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Health Care	20.6	%
Industrials	15.8
Information Technology	12.8
Financials	10.4
Energy	7.4
Materials	6.5
Consumer Discretionary	5.7
Consumer Staples	5.0
Utilities	1.1
Telecommunication Services	0.8
Money Market Funds Plus Other Assets Less Liabilities	13.9

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

Invesco V.I. Mid Cap Core Equity Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $355,754,822)*	$	371,273,684
Investments in affiliated money market funds, at value and cost		64,674,175
Total investments, at value (Cost $420,428,997)		435,947,859
Foreign currencies, at value (Cost $137)		7
Receivables for:
Investments sold		27,813
Fund shares sold		636,025
Dividends		460,480
Investment for trustee deferred compensation and retirement plans		18,146
Other assets		2,116
Total assets		437,092,446
Liabilities:
Payables for:
Investments purchased		530,837
Fund shares reacquired		189,122
Collateral upon return of securities loaned		4,782,949
Accrued fees to affiliates		329,404
Accrued other operating expenses		39,102
Trustee deferred compensation and retirement plans		67,107
Total liabilities		5,938,521
Net assets applicable to shares outstanding	$	431,153,925
Net assets consist of:
Shares of beneficial interest	$	449,412,485
Undistributed net investment income		2,849,762
Undistributed net realized gain (loss)		(36,625,024	)
Unrealized appreciation		15,516,702
	$	431,153,925
Net Assets:
Series I	$	382,175,414
Series II	$	48,978,511
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		36,630,579
Series II		4,739,063
Series I:
Net asset value per share	$	10.43
Series II:
Net asset value per share	$	10.34

*  At June 30, 2010, securities with an aggregate value of $4,624,829 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $43,027)	$	2,846,336
Dividends from affiliated money market funds (includes securities lending income of $14,068)		50,456
Total investment income		2,896,792
Expenses:
Advisory fees		1,718,547
Administrative services fees		646,878
Custodian fees		6,731
Distribution fees — Series II		68,281
Transfer agent fees		11,222
Trustees’ and officers’ fees and benefits		16,551
Other		23,257
Total expenses		2,491,467
Less: Fees waived		(54,725	)
Net expenses		2,436,742
Net investment income		460,050
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $674,870)		38,219,247
Foreign currencies		(126,022	)
Foreign currency contracts		257,196
		38,350,421
Change in net unrealized appreciation (depreciation) of:
Investment securities		(58,481,676	)
Foreign currencies		(373	)
Foreign currency contracts		(112,609	)
		(58,594,658	)
Net realized and unrealized gain (loss)		(20,244,237	)
Net increase (decrease) in net assets resulting from operations	$	(19,784,187	)

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

Invesco V.I. Mid Cap Core Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	460,050		$	2,434,222
Net realized gain (loss)		38,350,421			(61,873,895	)
Change in net unrealized appreciation (depreciation)		(58,594,658	)		174,517,834
Net increase (decrease) in net assets resulting from operations		(19,784,187	)		115,078,161
Distributions to shareholders from net investment income:
Series I		—			(5,080,173	)
Series II		—			(530,907	)
Total distributions from net investment income		—			(5,611,080	)
Distributions to shareholders from net realized gains:
Series I		—			(4,902,328	)
Series II		—			(669,176	)
Total distributions from net realized gains		—			(5,571,504	)
Share transactions–net:
Series I		(32,518,969	)		(11,987,008	)
Series II		(4,904,688	)		(4,824,114	)
Net increase (decrease) in net assets resulting from share transactions		(37,423,657	)		(16,811,122	)
Net increase (decrease) in net assets		(57,207,844	)		87,084,455
Net assets:
Beginning of period		488,361,769			401,277,314
End of period (includes undistributed net investment income of $2,849,762 and $2,389,712, respectively)	$	431,153,925		$	488,361,769

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Mid Cap Core Equity Fund, formerly AIM V.I. Mid Cap Core Equity Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

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

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.

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

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

Invesco V.I. Mid Cap Core Equity Fund

	independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

Invesco V.I. Mid Cap Core Equity Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Mid Cap Core Equity 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 Net Assets	Rate
First $500 million		0	.725%
Next $500 million		0	.70%
Next $500 million		0	.675%
Over $1.5 billion		0	.65%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% 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 net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $54,725.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $59,478 for accounting and fund administrative services and reimbursed $587,400 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Invesco V.I. Mid Cap Core Equity Fund

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 June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	429,461,357	$	6,486,502	$	—	$	435,947,859

NOTE 4—Derivative Investments

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

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain (loss) on Statement of Operations
	Foreign Currency Contracts*
Realized Gain
Currency risk	$	257,196
Change in Unrealized Appreciation (Depreciation)
Currency risk	$	(112,609	)
Total	$	144,587

*  The average value of foreign currency contracts outstanding during the period was $580,610.

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $10,254,905 and securities sales of $10,717,006, which resulted in net realized gains of $674,870.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,869 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco V.I. Mid Cap Core Equity Fund

NOTE 8—Tax Information

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

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	70,739,673

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

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $160,566,409 and $193,875,492, 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	$	40,532,496
Aggregate unrealized (depreciation) of investment securities		(29,136,797	)
Net unrealized appreciation of investment securities	$	11,395,699
Cost of investments for tax purposes is $424,552,160.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		917,922		$	10,349,449			3,776,568		$	34,511,811
Series II		688,218			7,605,320			1,852,803			16,828,951
Issued as reinvestment of dividends:
Series I		—			—			939,088			9,982,501
Series II		—			—			113,860			1,200,083
Reacquired:
Series I		(3,875,361	)		(42,868,418	)		(6,211,044	)		(56,481,320	)
Series II		(1,132,408	)		(12,510,008	)		(2,477,573	)		(22,853,148	)
Net increase (decrease) in share activity		(3,401,629	)	$	(37,423,657	)		(2,006,298	)	$	(16,811,122	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 74% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Mid Cap Core Equity Fund

NOTE 11—Financial Highlights

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

																												Ratio of			Ratio of
						Net gains																						expenses			expenses
						(losses) on																						to average			to average net			Ratio of net
	Net asset		Net			securities						Dividends			Distributions													net assets			assets without			investment
	value,		investment			(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			income			gains			Distributions			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	10.92	$	0.01	(c)	$	(0.50	)	$	(0.49	)	$	—		$	—		$	—		$	10.43		(4.49	)%	$	382,175		1.00	%(d)		1.02	%(d)		0.22	%(d)		39	%
Year ended 12/31/09		8.59		0.06	(c)		2.53			2.59			(0.13	)		(0.13	)		(0.26	)		10.92		30.21			432,233		1.02			1.04			0.60			41
Year ended 12/31/08		14.57		0.14	(c)		(4.33	)		(4.19	)		(0.22	)		(1.57	)		(1.79	)		8.59		(28.52	)		352,788		1.01			1.04			1.05			62
Year ended 12/31/07		13.52		0.19			1.11			1.30			(0.04	)		(0.21	)		(0.25	)		14.57		9.55			585,608		1.00			1.01			1.23			62
Year ended 12/31/06		13.61		0.14			1.39			1.53			(0.14	)		(1.48	)		(1.62	)		13.52		11.24			581,154		1.04			1.04			0.93			83
Year ended 12/31/05		13.11		0.06			0.94			1.00			(0.07	)		(0.43	)		(0.50	)		13.61		7.62			584,860		1.03			1.03			0.50			70
Series II
Six months ended 06/30/10		10.83		(0.00	)(c)		(0.49	)		(0.49	)		—			—			—			10.34		(4.52	)		48,979		1.25	(d)		1.27	(d)		(0.03	)(d)		39
Year ended 12/31/09		8.52		0.03	(c)		2.51			2.54			(0.10	)		(0.13	)		(0.23	)		10.83		29.85			56,129		1.27			1.29			0.35			41
Year ended 12/31/08		14.45		0.10	(c)		(4.28	)		(4.18	)		(0.18	)		(1.57	)		(1.75	)		8.52		(28.68	)		48,489		1.26			1.29			0.80			62
Year ended 12/31/07		13.42		0.13			1.12			1.25			(0.01	)		(0.21	)		(0.22	)		14.45		9.29			79,079		1.25			1.26			0.98			62
Year ended 12/31/06		13.52		0.10			1.38			1.48			(0.10	)		(1.48	)		(1.58	)		13.42		10.98			56,766		1.29			1.29			0.68			83
Year ended 12/31/05		13.04		0.03			0.92			0.95			(0.04	)		(0.43	)		(0.47	)		13.52		7.27			50,380		1.28			1.28			0.25			70

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $422,933 and $55,078 for Series I and Series II shares, respectively.

Invesco V.I. Mid Cap Core Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	955.10	$	4.85	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		954.80		6.06		1,018.60		6.26		1.25

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Mid Cap Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper

Invesco V.I. Mid Cap Core Equity Fund

performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, and against the Lipper VA Underlying Funds — Mid-Cap Core Index. The Board noted that the performance of Series I shares of the Fund was in the fifth quintile for the one year period and the first quintile of its performance universe for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was at the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the rate for the other mutual fund.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Mid Cap Core Equity Fund

           Invesco V.I. Money Market Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

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

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

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

Invesco Distributors, Inc.

VIMKT-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

As of June 30, 2010, the seven-day SEC yield on the Fund’s Series I shares was 0.37% and the seven-day SEC yield on the Fund’s Series II shares was 0.37%. Had fees not been waived, seven-day SEC yields for the Fund’s Series I and Series II shares would have been -0.61% and -0.86%, respectively.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please see your variable product issuer or financial adviser for the most recent month-end variable product performance.

Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     Invesco V.I. Money Market Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

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

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Invesco V.I. Money Market Fund

Schedule of Investments

June 30, 2010

(Unaudited)

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Variable Rate Demand Notes–30.03%(a)(b)
Credit Enhanced–30.03%
Benjamin Rose Institute (The) (Kethley House); Series 2005, VRD Taxable Notes (LOC–JPMorgan Chase Bank N.A.)(c)		0.35	%		12/01/28	$	1,800	$	1,800,000
Collier (County of), Florida Industrial Development Authority (Allete, Inc.); Series 2006, Ref. VRD IDR (LOC–Wells Fargo Bank, N.A.)(c)		0.37	%		10/01/25		1,000		1,000,000
Hamilton (County of), Ohio (Children’s Hospital Medical Center); Series 1997 A, VRD Hospital Facilities RB (LOC–PNC Bank, N.A.)(c)		0.30	%		05/15/17		600		600,000
Miami-Dade (County of), Florida Industrial Development Authority (Professional Modification Services, Inc.); Series 1998, VRD RB (LOC–JPMorgan Chase Bank, N.A.)(c)		0.29	%		08/01/18		1,000		1,000,000
Nashville (City of) & Davidson (County of), Tennessee Metropolitan Government Industrial Development Board (L & S, LLC); Series 2001, VRD IDR (LOC–JPMorgan Chase Bank, N.A.)(c)		0.31	%		03/01/26		520		520,000
New Hampshire (State of) Business Finance Authority (Alice Peck Day Health Systems Obligated Group); Series 2007 B, VRD RB (LOC–TD Bank, N.A.)(c)(d)		0.40	%		10/01/36		1,000		1,000,000
Pitney Road Partners, LLC; Series 2008, VRD Notes (CEP–General Electric Capital Corp.)(e)		0.48	%		07/01/25		2,260		2,260,000
Rock Island (County of), Illinois Metropolitan Airport Authority (Quad City International Airport Air Freight Project); Series 1998 A, VRD Priority RB (LOC–U.S. Bank, N.A.)(c)		0.40	%		12/01/18		535		535,000
Saint Paul (City of), Minnesota Port Authority; Series 2009-10 CC, VRD District Cooling RB (LOC–Deutsche Bank AG)(c)(d)		0.32	%		03/01/29		500		500,000
Total Variable Rate Demand Notes (Cost $9,215,000)									9,215,000
Certificates of Deposit–17.60%
Credit Agricole Corporate & Investment Bank		0.70	%		09/10/10		1,000		1,000,000
Lloyds TSB Bank PLC		0.18	%		07/06/10		1,400		1,400,000
Nordea Bank Finland PLC		0.51	%		09/07/10		1,500		1,500,000
Royal Bank of Scotland PLC		0.40	%		07/12/10		1,500		1,500,000
Total Certificates of Deposit (Cost $5,400,000)									5,400,000
Commercial Paper–15.31%(f)
Asset-Backed Securities–Commercial Loans/Leases–2.28%
Atlantis One Funding Corp.(d)(e)		0.29	%		08/09/10		700		699,780
Asset-Backed Securities–Fully Supported Bank–4.89%
Crown Point Capital Co., LLC–Series A, (Multi CEP’s-Liberty Hampshire Co., LLC; agent)(d)(e)		0.50	%		08/06/10		1,500		1,499,250
Asset-Backed Securities–Multi-Purpose–3.26%
Mont Blanc Capital Corp.(d)(e)		0.37	%		07/16/10		1,000		999,846
Life & Health Insurance–1.63%
Metlife Short-Term Funding LLC(e)		0.36	%		07/21/10		500		499,900
Regional Banks–3.25%
Banque et Caisse d’Epargne de l’Etat(d)		0.46	%		10/28/10		1,000		998,479
Total Commercial Paper (Cost $4,697,255)									4,697,255
Medium-Term Notes–11.05%
European Investment Bank Sr. Unsec. Global MTN(d)		5.25	%		06/15/11		968		1,008,745
JPMorgan Chase & Co. Sr. Unsec. Global MTN(b)		0.86	%		09/24/10		1,000		1,000,768

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

Invesco V.I. Money Market Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Medium-Term Notes–(continued)
Unilever Capital Corp. Sr. Unsec. Gtd. Global MTN(d)		7.13	%		11/01/10	$	1,351	$	1,381,945
Total Medium-Term Notes (Cost $3,391,458)									3,391,458
TOTAL INVESTMENTS (excluding Repurchase Agreements)–73.99% (Cost $22,703,713)									22,703,713
						Repurchase
						Amount
Repurchase Agreements–25.85%(g)
Banc of America Securities LLC, Joint agreement dated 06/30/10, aggregate maturing value $350,000,194 (collateralized by U.S. Treasury obligations valued at $357,000,099; 1.75%-3.63%, 11/15/11-08/15/19)		0.02	%		07/01/10		1,500,001		1,500,000
BNP Paribas, Joint agreement dated 06/30/10, aggregate maturing value $392,003,158 (collateralized by U.S. Government sponsored agency and Corporate obligations valued at $399,966,432; 0%-6.00%, 05/25/11-09/16/37)(d)		0.29	%		07/01/10		1,500,012		1,500,000
Goldman, Sachs & Co., Joint agreement dated 06/30/10, aggregate maturing value $250,000,208 (collateralized by U.S. Government sponsored agency obligations valued at $255,000,001; 2.42%-7.00%, 05/01/20-06/01/40)		0.03	%		07/01/10		1,500,001		1,500,000
RBS Securities Inc., Joint agreement dated 06/30/10, aggregate maturing value $350,000,778 (collateralized by U.S. Treasury obligations valued at $357,004,410; 2.38%-4.63%, 02/29/12-03/31/15)		0.08	%		07/01/10		2,031,769		2,031,764
Wells Fargo Securities, LLC, Joint agreement dated 06/30/10, aggregate maturing value $625,003,646 (collateralized by Corporate obligations valued at $656,250,000; 0%-7.95%, 08/14/11-12/10/49)		0.21	%		07/01/10		1,400,008		1,400,000
Total Repurchase Agreements (Cost $7,931,764)									7,931,764
TOTAL INVESTMENTS(h)(i)–99.84% (Cost $30,635,477)									30,635,477
OTHER ASSETS LESS LIABILITIES–0.16%									49,248
NET ASSETS–100.00%								$	30,684,725

Investment Abbreviations:

CEP	– Credit Enhancement Provider
Gtd.	– Guaranteed
IDR	– Industrial Development Revenue Bonds
LOC	– Letter of Credit
MTN	– Medium-Term Notes
RB	– Revenue Bonds
Ref.	– Refunding
Sr.	– Senior
Unsec.	– Unsecured
VRD	– Variable Rate Demand

Notes to Schedule of Investments:

(a)	Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months.
(b)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(c)	Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
(d)	The security is credit guaranteed, enhanced or has credit risk by a foreign entity. The foreign credit exposure to countries other than the United States of America (as a percentage of net assets) is summarized as follows: Netherlands: 5.5%; other countries less than 5% each: 25.7%.
(e)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $5,958,776, which represented 19.41% of the Fund’s Net Assets.
(f)	Security may be traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(g)	Principal amount equals value at period end. See Note 1I.
(h)	Also represents cost for federal income tax purposes.
(i)	This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities	Percentage
JPMorgan Chase Bank, N.A.		14.1	%
General Electric Capital Corp.		7.4

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

Invesco V.I. Money Market Fund

Portfolio Composition*

Number of days to Maturity

as of June 30, 2010

1-7	54.0	%
8-30	16.5
31-90	24.8
91-180	3.7
181+	1.0

*  The number of days to maturity of each holding is determined in accordance with the provisions of Rule 2a-7 of the Investment Company Act of 1940.

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

Invesco V.I. Money Market Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, excluding repurchase agreements, at value and cost	$	22,703,713
Repurchase agreements, at value and cost		7,931,764
Total investments, at value and cost		30,635,477
Receivables for:
Investments sold		115,000
Interest		28,380
Fund expenses absorbed		9,846
Investment for trustee deferred compensation and retirement plans		34,948
Other assets		2,652
Total assets		30,826,303
Liabilities:
Payables for:
Fund shares reacquired		56,573
Accrued fees to affiliates		15,083
Accrued other operating expenses		26,264
Trustee deferred compensation and retirement plans		43,658
Total liabilities		141,578
Net assets applicable to shares outstanding	$	30,684,725
Net assets consist of:
Shares of beneficial interest	$	30,686,868
Undistributed net realized gain (loss)		(2,143	)
	$	30,684,725
Net Assets:
Series I	$	29,261,624
Series II	$	1,423,101
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		29,262,525
Series II		1,422,917
Series I:
Net asset value per share	$	1.00
Series II:
Net asset value per share	$	1.00

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Interest	$	52,012
Expenses:
Advisory fees		65,234
Administrative services fees		53,322
Custodian fees		5,791
Distribution fees — Series II		1,836
Transfer agent fees		3,466
Trustees’ and officers’ fees and benefits		9,444
Professional services fees		25,160
Other		6,560
Total expenses		170,813
Less: Fees waived		(161,069	)
Net expenses		9,744
Net investment income		42,268
Net realized gain (loss) from investment securities		(2,143	)
Net increase in net assets resulting from operations	$	40,125

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

Invesco V.I. Money Market Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	42,268		$	50,085
Net realized gain (loss)		(2,143	)		—
Net increase in net assets resulting from operations		40,125			50,085
Distributions to shareholders from net investment income:
Series I		(40,384	)		(48,846	)
Series II		(1,884	)		(1,239	)
Total distributions from net investment income		(42,268	)		(50,085	)
Share transactions–net:
Series I		(4,222,003	)		(15,518,673	)
Series II		(266,293	)		(576,067	)
Net increase (decrease) in net assets resulting from share transactions		(4,488,296	)		(16,094,740	)
Net increase (decrease) in net assets		(4,490,439	)		(16,094,740	)
Net assets:
Beginning of period		35,175,164			51,269,904
End of period (includes undistributed net investment income of $0 and $0, respectively)	$	30,684,725		$	35,175,164

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Money Market Fund, formerly AIM V.I. Money Market Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 twenty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is to provide as high a level of current income as is consistent with the preservation of capital and liquidity.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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

A.	Security Valuations — The Fund’s securities are recorded on the basis of amortized cost which approximates value as permitted by Rule 2a-7 under the 1940 Act. This method values a security at its cost on the date of purchase and, thereafter, assumes a constant amortization to maturity of any premiums or accretion of any discounts.
	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, adjusted for amortization of premiums and accretion of discounts on investments, is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized gain (loss) from investment securities

Invesco V.I. Money Market Fund

	reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income are declared daily and paid monthly to separate accounts of participating insurance companies. Distributions from net realized gain, if any, are generally paid annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Repurchase Agreements — The Fund may enter into repurchase agreements. Collateral on repurchase agreements, including the Fund’s pro-rata interest in joint repurchase agreements, is taken into possession by the Fund upon entering into the repurchase agreement. Eligible securities for collateral are securities consistent with the Fund’s investment objectives and may consist of U.S. Government Securities, U.S. Government Sponsored Agency Securities and/or, Investment Grade Debt Securities. Collateral consisting of U.S. Government Securities and U.S. Government Sponsored Agency Securities is marked to market daily to ensure its market value is at least 102% of the sales price of the repurchase agreement. Collateral consisting of Investment Grade Debt Securities is marked to market daily to ensure its market value is at least 105% of the sales price of the repurchase agreement. The investments in some repurchase agreements, pursuant to procedures approved by the Board of Trustees, are through participation with other mutual funds, private accounts and certain non-registered investment companies managed by the investment advisor or its affiliates (“Joint repurchase agreements”). The principal amount of the repurchase agreement is equal to the value at period-end. If the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement, the Fund might incur expenses in enforcing its rights, and could experience losses, including a decline in the value of the collateral and loss of income.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.40%
Over $250 million		0	.35%

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

Invesco V.I. Money Market Fund

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% 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 net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) extraordinary or non-routine items, including payments to participate in the United States Treasury Temporary Guarantee Program (the “Program”); (4) expenses related to a merger or reorganization, as approved by the Fund’s Board of Trustees; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

  The Adviser and/or Invesco Distributors, Inc., (“IDI”) voluntarily agreed to waive fees and/or reimbursed expenses in order to increase the Fund’s yield. Voluntary fee waivers and/or reimbursements may be modified at any time upon consultation with the Board of Trustees without further notice to investors.

  For the six months ended June 30, 2010, Invesco voluntarily waived advisory fees of $159,233 and reimbursed class level expenses of $1,836 for Series II shares.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $28,528 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Short-term Investments	$	—	$	30,635,477	$	—	$	30,635,477

Invesco V.I. Money Market Fund

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $1,520,060 and securities sales of $660,016.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,338 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The Bank of New York Mellon, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

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

  The Fund did not have a capital loss carryforward as of December 31, 2009.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		6,983,582		$	6,983,582			14,958,501		$	14,958,537
Series II		36,103			36,103			51,965			51,965
Issued as reinvestment of dividends:
Series I		40,384			40,384			48,883			48,846
Series II		1,884			1,884			1,238			1,239
Reacquired:
Series I		(11,245,969	)		(11,245,969	)		(30,526,056	)		(30,526,056	)
Series II		(304,280	)		(304,280	)		(629,271	)		(629,271	)
Net increase (decrease) in share activity		(4,488,296	)	$	(4,488,296	)		(16,094,740	)	$	(16,094,740	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 92% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Money Market Fund

NOTE 9—Financial Highlights

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

																Ratio of			Ratio of
																expenses			expenses
																to average			to average net			Ratio of net
	Net asset					Dividends										net assets			assets without			investment
	value,		Net			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		Investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average
	of period		income			income			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets
Series I
Six months ended 06/30/10	$	1.00	$	0.00	(b)	$	(0.00	)	$	1.00		0.13	%	$	29,262		0.06	%(c)		1.04	%(c)		0.26	%(c)
Year ended 12/31/09		1.00		0.00	(b)		(0.00	)		1.00		0.11			33,486		0.65			0.90			0.11
Year ended 12/31/08		1.00		0.02	(b)		(0.02	)		1.00		2.04			49,004		0.86			0.86			2.02
Year ended 12/31/07		1.00		0.04			(0.04	)		1.00		4.54			46,492		0.86			0.86			4.45
Year ended 12/31/06		1.00		0.04			(0.04	)		1.00		4.27			43,568		0.90			0.90			4.20
Year ended 12/31/05		1.00		0.02			(0.02	)		1.00		2.51			44,923		0.82			0.82			2.46
Series II
Six months ended 06/30/10		1.00		0.00	(b)		(0.00	)		1.00		0.13			1,423		0.06	(c)		1.29	(c)		0.26	(c)
Year ended 12/31/09		1.00		0.00	(b)		(0.00	)		1.00		0.06			1,690		0.70			1.15			0.06
Year ended 12/31/08		1.00		0.02	(b)		(0.02	)		1.00		1.78			2,266		1.11			1.11			1.77
Year ended 12/31/07		1.00		0.04			(0.04	)		1.00		4.28			2,515		1.11			1.11			4.20
Year ended 12/31/06		1.00		0.04			(0.04	)		1.00		4.01			2,341		1.15			1.15			3.95
Year ended 12/31/05		1.00		0.02			(0.02	)		1.00		2.26			3,080		1.07			1.07			2.21

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Calculated using average shares outstanding.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $31,407 and $1,481 for Series I and Series II shares, respectively.

Invesco V.I. Money Market Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	1,001.30	$	0.30	$	1,024.50	$	0.30		0.06	%
Series II		1,000.00		1,001.30		0.30		1,024.50		0.30		0.06

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Money Market Fund

Approval of Investment Advisory and Sub-advisory Contracts

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

The Board’s Fund Evaluation Process

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

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

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

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

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

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

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

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

Invesco V.I. Money Market Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Money Market Index. The Board noted that the performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period, the fourth quintile for the three year period and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. Invesco Advisers advised the Board that the Fund has historically been priced consistent with its role as a conduit to and from other Invesco Advisers products, which impacts performance. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual advisory fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised or sub-advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the mutual fund advised by Invesco Advisers and above the sub-adviser effective fee rate of the fund sub-advised by Invesco Advisers.

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

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

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

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

D.  Economies of Scale and Breakpoints

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

E.  Profitability and Financial Resources

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

F.  Collateral Benefits to Invesco Advisers and its Affiliates

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

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

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

Invesco V.I. Money Market Fund

           Invesco V.I. S&P 500 Index Fund
          Semiannual Report to Shareholders n June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

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

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

Invesco Distributors, Inc.

MS-VISPI-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-6.75	%
Series II Shares	-6.92
S&P 500 Index6 (Broad Market/Style-Specific Index)	-6.64

⁶ Lipper Inc.

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

     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 6/30/10

Series I Shares
Inception (5/18/98)	0.86	%
10 Years	-1.88
5 Years	-0.97
1 Year	14.19
Series II Shares
Inception (6/5/00)	-2.21	%
10 Years	-2.13
5 Years	-1.23
1 Year	13.87

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. S&P 500 Index Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. S&P 500 Index Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.28% and 0.53%, 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 Series I and Series II shares was 0.49% and 0.74%, 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.

     Invesco V.I. S&P 500 Index Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco V.I. S&P 500 Index Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.0%
Advertising–0.2%
Interpublic Group of Cos., Inc.(b)		5,848	$	41,696
Omnicom Group, Inc.		3,656		125,401
				167,097
Aerospace & Defense–2.8%
Boeing Co. (The)		9,072		569,268
General Dynamics Corp.		4,610		269,962
Goodrich Corp.		1,496		99,110
Honeywell International, Inc.		9,158		357,437
ITT Corp.		2,193		98,510
L-3 Communications Holdings, Inc.		1,383		97,972
Lockheed Martin Corp.		3,728		277,736
Northrop Grumman Corp.		3,600		195,984
Precision Castparts Corp.		1,699		174,861
Raytheon Co.		4,554		220,368
Rockwell Collins, Inc.		1,881		99,937
United Technologies Corp.		11,153		723,941
				3,185,086
Agricultural Products–0.2%
Archer-Daniels-Midland Co.		7,686		198,453
Air Freight & Logistics–1.0%
C.H. Robinson Worldwide, Inc.		1,982		110,318
Expeditors International of Washington, Inc.		2,544		87,793
FedEx Corp.		3,729		261,440
United Parcel Service, Inc. (Class B)		11,839		673,521
				1,133,072
Airlines–0.1%
Southwest Airlines Co.		8,898		98,857
Aluminum–0.1%
Alcoa, Inc.		12,204		122,772
Apparel Retail–0.5%
Abercrombie & Fitch Co. (Class A)		1,054		32,347
Gap, Inc. (The)		5,415		105,376
Limited Brands, Inc.		3,226		71,198
Ross Stores, Inc.		1,464		78,017
TJX Cos., Inc.		4,876		204,548
Urban Outfitters, Inc.(b)		1,556		53,511
				544,997
Apparel, Accessories & Luxury Goods–0.2%
Coach, Inc.		3,646		133,261
Polo Ralph Lauren Corp.		794		57,930
VF Corp.		1,052		74,882
				266,073
Application Software–0.5%
Adobe Systems, Inc.(b)		6,292		166,297
Autodesk, Inc.(b)		2,742		66,795
Citrix Systems, Inc.(b)		2,220		93,751
Compuware Corp.(b)		2,689		21,458
Intuit, Inc.(b)		3,756		130,596
Salesforce.com, Inc.(b)		1,352		116,029
				594,926
Asset Management & Custody Banks–1.1%
Ameriprise Financial, Inc.		3,059		110,522
Bank of New York Mellon Corp. (The)		14,461		357,042
Federated Investors, Inc. (Class B)		1,061		21,973
Franklin Resources, Inc.		1,766		152,212
Invesco Ltd.		5,584		93,979
Janus Capital Group, Inc.		2,229		19,793
Legg Mason, Inc.		2,004		56,172
Northern Trust Corp.		2,890		134,963
State Street Corp.		5,978		202,176
T. Rowe Price Group, Inc.		3,102		137,698
				1,286,530
Auto Parts & Equipment–0.2%
Johnson Controls, Inc.		8,040		216,035
Automobile Manufacturers–0.4%
Ford Motor Co.(b)		40,721		410,468
Automotive Retail–0.2%
AutoNation, Inc.(b)		1,065		20,767
AutoZone, Inc.(b)		348		67,241
O’Reilly Automotive, Inc.(b)		1,650		78,474
				166,482
Biotechnology–1.4%
Amgen, Inc.(b)		11,450		602,270
Biogen Idec, Inc.(b)		3,191		151,413
Celgene Corp.(b)		5,508		279,917
Cephalon, Inc.(b)		898		50,961

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Biotechnology–(continued)
Genzyme Corp.(b)		3,189	$	161,906
Gilead Sciences, Inc.(b)		10,637		364,636
				1,611,103
Brewers–0.1%
Molson Coors Brewing Co. (Class B)		1,885		79,849
Broadcasting–0.2%
CBS Corp. (Class B)		8,127		105,082
Discovery Communications, Inc. (Class A)(b)		3,398		121,343
				226,425
Building Products–0.0%
Masco Corp.		4,287		46,128
Cable & Satellite–1.1%
Comcast Corp. (Class A)		33,728		585,855
DirecTV (Class A)(b)		10,862		368,439
Scripps Networks Interactive, Inc. (Class A)		1,073		43,285
Time Warner Cable, Inc.		4,225		220,038
				1,217,617
Casinos & Gaming–0.1%
International Game Technology		3,563		55,939
Wynn Resorts Ltd.		825		62,923
				118,862
Coal & Consumable Fuels–0.2%
Consol Energy, Inc.		2,697		91,051
Massey Energy Co.		1,202		32,875
Peabody Energy Corp.		3,212		125,685
				249,611
Commercial Printing–0.0%
RR Donnelley & Sons Co.		2,465		40,352
Communications Equipment–2.5%
Cisco Systems, Inc.(b)		68,269		1,454,812
Corning, Inc.		18,656		301,295
Harris Corp.		1,551		64,599
JDS Uniphase Corp.(b)		2,683		26,401
Juniper Networks, Inc.(b)		6,288		143,492
Motorola, Inc.(b)		27,781		181,132
QUALCOMM, Inc.		19,608		643,927
Tellabs, Inc.		4,605		29,426
				2,845,084
Computer & Electronics Retail–0.2%
Best Buy Co., Inc.		4,135		140,011
GameStop Corp. (Class A)(b)		1,826		34,311
RadioShack Corp.		1,498		29,226
				203,548
Computer Hardware–5.5%
Apple, Inc.(b)		10,876		2,735,640
Dell, Inc.(b)		20,597		248,400
Hewlett-Packard Co.		27,905		1,207,728
International Business Machines Corp.		15,328		1,892,702
Teradata Corp.(b)		1,994		60,777
				6,145,247
Computer Storage & Peripherals–0.8%
EMC Corp.(b)		24,571		449,649
Lexmark International, Inc.(b)		938		30,982
NetApp, Inc.(b)		4,119		153,680
QLogic Corp.(b)		1,333		22,155
SanDisk Corp.(b)		2,748		115,608
Western Digital Corp.(b)		2,739		82,608
				854,682
Construction & Engineering–0.2%
Fluor Corp.		2,136		90,780
Jacobs Engineering Group, Inc.(b)		1,494		54,441
Quanta Services, Inc.(b)		2,521		52,059
				197,280
Construction & Farm Machinery & Heavy Trucks–0.9%
Caterpillar, Inc.		7,503		450,705
Cummins, Inc.		2,397		156,117
Deere & Co.		5,078		282,743
PACCAR, Inc.		4,346		173,275
				1,062,840
Construction Materials–0.1%
Vulcan Materials Co.		1,526		66,885
Consumer Electronics–0.0%
Harman International Industries, Inc.(b)		827		24,719
Consumer Finance–0.8%
American Express Co.		14,359		570,052
Capital One Financial Corp.		5,456		219,877
Discover Financial Services		6,500		90,870
SLM Corp.(b)		5,806		60,324
				941,123

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Data Processing & Outsourced Services–1.2%
Automatic Data Processing, Inc.		6,012	$	242,043
Computer Sciences Corp.		1,843		83,396
Fidelity National Information Services, Inc.		3,961		106,234
Fiserv, Inc.(b)		1,824		83,284
Mastercard, Inc. (Class A)		1,157		230,856
Paychex, Inc.		3,844		99,829
Total System Services, Inc.		2,359		32,082
Visa, Inc. (Class A)		5,409		382,687
Western Union Co. (The)		8,034		119,787
				1,380,198
Department Stores–0.4%
JC Penney Co., Inc.		2,823		60,638
Kohl’s Corp.(b)		3,680		174,800
Macy’s, Inc.		5,045		90,305
Nordstrom, Inc.		1,990		64,058
Sears Holdings Corp.(b)		592		38,273
				428,074
Distillers & Vintners–0.1%
Brown-Forman Corp. (Class B)		1,285		73,541
Constellation Brands, Inc.(b)		2,292		35,801
				109,342
Distributors–0.1%
Genuine Parts Co.		1,898		74,876
Diversified REIT’s–0.1%
Vornado Realty Trust		1,891		137,948
Diversified Banks–1.9%
Comerica, Inc.		2,125		78,264
US Bancorp		22,913		512,106
Wells Fargo & Co.		62,282		1,594,412
				2,184,782
Diversified Chemicals–0.8%
Dow Chemical Co. (The)		13,805		327,455
Eastman Chemical Co.		865		46,156
EI Du Pont de Nemours & Co.		10,829		374,575
FMC Corp.		868		49,849
PPG Industries, Inc.		1,988		120,095
				918,130
Diversified Metals & Mining–0.3%
Freeport-McMoRan Copper & Gold, Inc.		5,638		333,375
Titanium Metals Corp.(b)		1,008		17,731
				351,106
Diversified Support Services–0.1%
Cintas Corp.		1,571		37,657
Iron Mountain, Inc.		2,162		48,558
				86,215
Drug Retail–0.7%
CVS Caremark Corp.		16,267		476,948
Walgreen Co.		11,695		312,257
				789,205
Education Services–0.1%
Apollo Group, Inc. (Class A)(b)		1,504		63,875
DeVry, Inc.		740		38,842
				102,717
Electric Utilities–1.9%
Allegheny Energy, Inc.		2,026		41,898
American Electric Power Co., Inc.		5,720		184,756
Duke Energy Corp.		15,696		251,136
Edison International		3,919		124,311
Entergy Corp.		2,262		162,004
Exelon Corp.		7,895		299,773
FirstEnergy Corp.		3,643		128,343
NextEra Energy, Inc.		4,956		241,655
Northeast Utilities		2,099		53,482
Pepco Holdings, Inc.		2,668		41,834
Pinnacle West Capital Corp.		1,296		47,123
PPL Corp.		5,601		139,745
Progress Energy, Inc.		3,432		134,603
Southern Co.		9,855		327,974
				2,178,637
Electrical Components & Equipment–0.5%
Emerson Electric Co.		9,007		393,516
First Solar, Inc.(b)		581		66,135
Rockwell Automation, Inc.		1,704		83,649
				543,300
Electronic Components–0.1%
Amphenol Corp. (Class A)		2,074		81,467
Electronic Equipment & Instruments–0.2%
Agilent Technologies, Inc.(b)		4,160		118,269
FLIR Systems, Inc.(b)		1,832		53,293
				171,562
Electronic Manufacturing Services–0.1%
Jabil Circuit, Inc.		2,315		30,790
Molex, Inc.		1,622		29,585
				60,375

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Environmental & Facilities Services–0.3%
Republic Services, Inc.		3,879	$	115,323
Stericycle, Inc.(b)		1,011		66,301
Waste Management, Inc.		5,773		180,637
				362,261
Fertilizers & Agricultural Chemicals–0.3%
CF Industries Holdings, Inc.		849		53,869
Monsanto Co.		6,520		301,354
				355,223
Food Distributors–0.2%
Sysco Corp.		7,071		202,018
Food Retail–0.3%
Kroger Co. (The)		7,724		152,086
Safeway, Inc.		4,644		91,301
SUPERVALU, Inc.		2,536		27,490
Whole Foods Market, Inc.(b)		2,049		73,805
				344,682
Footwear–0.3%
NIKE, Inc. (Class B)		4,644		313,702
Forest Products–0.1%
Weyerhaeuser Co.		2,529		89,021
Gas Utilities–0.1%
EQT Corp.		1,719		62,124
Nicor, Inc.		538		21,789
Questar Corp.		2,092		29,787
				113,700
General Merchandise Stores–0.5%
Big Lots, Inc.(b)		961		30,838
Family Dollar Stores, Inc.		1,614		60,832
Target Corp.		8,802		432,794
				524,464
Gold–0.3%
Newmont Mining Corp.		5,872		362,537
Health Care Services–0.8%
Cerner Corp(b)		829		62,913
DaVita, Inc.(b)		1,241		77,488
Express Scripts, Inc.(b)		6,536		307,323
Laboratory Corp. of America Holdings(b)		1,243		93,660
Medco Health Solutions, Inc.(b)		5,460		300,737
Quest Diagnostics, Inc.		1,806		89,884
				932,005
Health Care Distributors–0.4%
AmerisourceBergen Corp.		3,376		107,188
Cardinal Health, Inc.		4,327		145,430
McKesson Corp.		3,243		217,800
Patterson Cos., Inc.		1,115		31,811
				502,229
Health Care Equipment–1.8%
Baxter International, Inc.		7,129		289,723
Becton Dickinson and Co.		2,788		188,525
Boston Scientific Corp.(b)		18,125		105,125
C.R. Bard, Inc.		1,136		88,074
CareFusion Corp.(b)		2,125		48,238
Hospira, Inc.(b)		1,982		113,866
Intuitive Surgical, Inc.(b)		471		148,657
Medtronic, Inc.		13,167		477,567
St Jude Medical, Inc.(b)		3,905		140,931
Stryker Corp.		3,366		168,502
Varian Medical Systems, Inc.(b)		1,476		77,165
Zimmer Holdings, Inc.(b)		2,424		131,017
				1,977,390
Health Care Facilities–0.0%
Tenet Healthcare Corp.(b)		5,208		22,603
Health Care Supplies–0.0%
DENTSPLY International, Inc.		1,749		52,313
Home Entertainment Software–0.1%
Electronic Arts, Inc.(b)		3,918		56,419
Home Furnishings–0.0%
Leggett & Platt, Inc.		1,770		35,506
Home Improvement Retail–0.9%
Home Depot, Inc.		20,086		563,814
Lowe’s Cos., Inc.		17,084		348,855
Sherwin-Williams Co. (The)		1,101		76,178
				988,847
Homebuilding–0.1%
DR Horton, Inc.		3,308		32,518
Lennar Corp. (Class A)		1,995		27,750
Pulte Group, Inc.(b)		3,795		31,423
				91,691
Homefurnishing Retail–0.1%
Bed Bath & Beyond, Inc.(b)		3,146		116,654
Hotels, Resorts & Cruise Lines–0.3%
Carnival Corp. (Units)		5,174		156,462
Marriott International, Inc. (Class A)		3,066		91,796

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Hotels, Resorts & Cruise Lines–(continued)
Starwood Hotels & Resorts Worldwide, Inc.		2,265	$	93,839
Wyndham Worldwide Corp.		2,151		43,321
				385,418
Household Appliances–0.2%
Stanley Black & Decker, Inc.		1,917		96,847
Whirlpool Corp.		897		78,774
				175,621
Household Products–2.6%
Clorox Co.		1,683		104,615
Colgate-Palmolive Co.		5,851		460,825
Kimberly-Clark Corp.		4,948		299,997
Procter & Gamble Co. (The)		34,425		2,064,812
				2,930,249
Housewares & Specialties–0.1%
Fortune Brands, Inc.		1,820		71,308
Newell Rubbermaid, Inc.		3,325		48,678
				119,986
Human Resource & Employment Services–0.1%
Monster Worldwide, Inc.(b)		1,507		17,557
Robert Half International, Inc.		1,793		42,225
				59,782
Hypermarkets & Super Centers–1.3%
Costco Wholesale Corp.		5,285		289,777
Wal-Mart Stores, Inc.		24,831		1,193,626
				1,483,403
Independent Power Producers & Energy Traders–0.2%
AES Corp. (The)(b)		7,985		73,781
Constellation Energy Group, Inc.		2,410		77,723
NRG Energy, Inc.(b)		3,051		64,712
				216,216
Industrial Conglomerates–2.3%
3M Co.		8,523		673,232
General Electric Co.(c)		127,625		1,840,352
Textron, Inc.		3,266		55,424
				2,569,008
Industrial Gases–0.4%
Air Products & Chemicals, Inc.		2,538		164,488
Praxair, Inc.		3,656		277,819
				442,307
Industrial Machinery–0.8%
Danaher Corp.		6,286		233,336
Dover Corp.		2,232		93,275
Eaton Corp.		2,003		131,076
Flowserve Corp.		672		56,986
Illinois Tool Works, Inc.		4,624		190,879
Pall Corp.		1,397		48,015
Parker Hannifin Corp.		1,924		106,705
Roper Industries, Inc.		1,122		62,787
Snap-On, Inc.		691		28,269
				951,328
Industrial REIT’s–0.1%
ProLogis		5,696		57,700
Insurance Brokers–0.2%
AON Corp.		3,220		119,526
Marsh & McLennan Cos., Inc.		6,469		145,876
				265,402
Integrated Oil & Gas–6.5%
Chevron Corp.		24,010		1,629,319
ConocoPhillips		17,790		873,311
Exxon Mobil Corp.		61,108		3,487,434
Hess Corp.		3,492		175,787
Marathon Oil Corp.		8,480		263,643
Murphy Oil Corp.		2,288		113,370
Occidental Petroleum Corp.		9,707		748,895
				7,291,759
Integrated Telecommunication Services–2.6%
AT&T, Inc.		70,634		1,708,636
CenturyTel, Inc.		3,590		119,583
Frontier Communications Corp.		3,733		26,542
Qwest Communications International, Inc.		17,848		93,702
Verizon Communications, Inc.		33,789		946,768
Windstream Corp.		5,774		60,973
				2,956,204
Internet Retail–0.5%
Amazon.com, Inc.(b)		4,101		448,075
Expedia, Inc.		2,478		46,537
Priceline.com, Inc.(b)		567		100,098
				594,710
Internet Software & Services–1.7%
Akamai Technologies, Inc.(b)		2,057		83,452
eBay, Inc.(b)		13,592		266,539
Google, Inc. (Class A)(b)		2,894		1,287,685

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Internet Software & Services–(continued)
VeriSign, Inc.(b)		2,181	$	57,906
Yahoo!, Inc.(b)		14,073		194,630
				1,890,212
Investment Banking & Brokerage–1.2%
Charles Schwab Corp. (The)		11,668		165,452
E*Trade Financial Corp.(b)		2,367		27,978
Goldman Sachs Group, Inc. (The)		6,151		807,442
Morgan Stanley		16,708		387,793
				1,388,665
IT Consulting & Other Services–0.2%
Cognizant Technology Solutions Corp. (Class A)(b)		3,558		178,113
SAIC, Inc.(b)		3,497		58,540
				236,653
Leisure Products–0.1%
Hasbro, Inc.		1,564		64,280
Mattel, Inc.		4,359		92,237
				156,517
Life & Health Insurance–1.1%
Aflac, Inc.		5,632		240,317
Lincoln National Corp.		3,613		87,760
MetLife, Inc.		9,796		369,897
Principal Financial Group, Inc.		3,845		90,127
Prudential Financial, Inc.		5,570		298,886
Torchmark Corp.		986		48,817
Unum Group		3,978		86,323
				1,222,127
Life Sciences Tools & Services–0.5%
Life Technologies Corp.(b)		2,182		103,100
Millipore Corp.(b)		669		71,349
PerkinElmer, Inc.		1,408		29,103
Thermo Fisher Scientific, Inc.(b)		4,905		240,590
Waters Corp.(b)		1,110		71,817
				515,959
Managed Health Care–0.9%
Aetna, Inc.		5,078		133,958
CIGNA Corp.		3,307		102,715
Coventry Health Care, Inc.(b)		1,768		31,258
Humana, Inc.(b)		2,034		92,893
UnitedHealth Group, Inc.		13,587		385,871
WellPoint, Inc.(b)		5,106		249,836
				996,531
Metal & Glass Containers–0.1%
Ball Corp.		1,103		58,271
Owens-Illinois, Inc.(b)		1,971		52,133
Pactiv Corp.(b)		1,588		44,226
				154,630
Motorcycle Manufacturers–0.1%
Harley-Davidson, Inc.		2,814		62,555
Movies & Entertainment–1.5%
News Corp. (Class A)		26,907		321,808
Time Warner, Inc.		13,623		393,841
Viacom, Inc. (Class B)		7,259		227,715
Walt Disney Co. (The)		23,411		737,446
				1,680,810
Multi-line Insurance–0.4%
American International Group, Inc.(b)		1,614		55,586
Assurant, Inc.		1,336		46,359
Genworth Financial, Inc. (Class A)(b)		5,845		76,394
Hartford Financial Services Group, Inc.		5,308		117,466
Loews Corp.		4,201		139,936
				435,741
Multi-Sector Holdings–0.0%
Leucadia National Corp.(b)		2,268		44,249
Multi-Utilities–1.4%
Ameren Corp.		2,848		67,697
Centerpoint Energy, Inc.		4,977		65,497
CMS Energy Corp.		2,747		40,244
Consolidated Edison, Inc.		3,370		145,247
Dominion Resources, Inc.		7,124		275,984
DTE Energy Co.		2,012		91,767
Integrys Energy Group, Inc.		920		40,241
NiSource, Inc.		3,316		48,082
Oneok, Inc.		1,270		54,927
PG&E Corp.		4,475		183,922
Public Service Enterprise Group, Inc.		6,047		189,452
SCANA Corp.		1,355		48,455
Sempra Energy		2,978		139,341
TECO Energy, Inc.		2,556		38,519
Wisconsin Energy Corp.		1,397		70,884
Xcel Energy, Inc.		5,493		113,211
				1,613,470
Office Electronics–0.1%
Xerox Corp.		16,484		132,531
Office REIT’s–0.1%
Boston Properties, Inc.		1,661		118,496

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Office Services & Supplies–0.1%
Avery Dennison Corp.		1,320	$	42,411
Pitney Bowes, Inc.		2,480		54,461
				96,872
Oil & Gas Drilling–0.2%
Diamond Offshore Drilling, Inc.		830		51,618
Helmerich & Payne, Inc.		1,243		45,394
Nabors Industries Ltd. (Bermuda)		3,409		60,067
Rowan Cos., Inc.(b)		1,367		29,992
				187,071
Oil & Gas Equipment & Services–1.5%
Baker Hughes, Inc.		5,128		213,171
Cameron International Corp.(b)		2,918		94,893
FMC Technologies, Inc.(b)		1,453		76,515
Halliburton Co.		10,784		264,747
National Oilwell Varco, Inc.		5,008		165,615
Schlumberger Ltd.		14,258		789,038
Smith International, Inc.		2,970		111,820
				1,715,799
Oil & Gas Exploration & Production–1.7%
Anadarko Petroleum Corp.		5,913		213,400
Apache Corp.		4,031		339,370
Cabot Oil & Gas Corp.		1,242		38,900
Chesapeake Energy Corp.		7,780		162,991
Denbury Resources, Inc.(b)		4,772		69,862
Devon Energy Corp.		5,341		325,374
EOG Resources, Inc.		3,025		297,569
Noble Energy, Inc.		2,074		125,124
Pioneer Natural Resources Co.		1,385		82,338
Range Resources Corp.		1,905		76,486
Southwestern Energy Co.(b)		4,137		159,854
				1,891,268
Oil & Gas Refining & Marketing–0.2%
Sunoco, Inc.		1,441		50,103
Tesoro Corp.		1,688		19,699
Valero Energy Corp.		6,759		121,527
				191,329
Oil & Gas Storage & Transportation–0.3%
El Paso Corp.		8,411		93,446
Spectra Energy Corp.		7,745		155,442
Williams Cos., Inc. (The)		7,018		128,289
				377,177
Other Diversified Financial Services–4.0%
Bank of America Corp.		119,932		1,723,421
Citigroup, Inc.		270,207		1,015,978
JPMorgan Chase & Co.		47,559		1,741,135
				4,480,534
Packaged Foods & Meats–1.8%
Campbell Soup Co.		2,236		80,116
ConAgra Foods, Inc.		5,325		124,179
Dean Foods Co.(b)		2,174		21,892
General Mills, Inc.		7,912		281,034
Hershey Co. (The)		1,982		94,997
HJ Heinz Co.		3,779		163,328
Hormel Foods Corp.		828		33,518
JM Smucker Co. (The)		1,423		85,693
Kellogg Co.		3,048		153,315
Kraft Foods, Inc. (Class A)		20,840		583,520
McCormick & Co., Inc.		1,583		60,091
Mead Johnson Nutrition Co.		2,459		123,245
Sara Lee Corp.		7,934		111,869
Tyson Foods, Inc. (Class A)		3,649		59,807
				1,976,604
Paper Packaging–0.1%
Bemis Co., Inc.		1,303		35,181
Sealed Air Corp.		1,906		37,586
				72,767
Paper Products–0.1%
International Paper Co.		5,218		118,083
MeadWestvaco Corp.		2,042		45,333
				163,416
Personal Products–0.2%
Avon Products, Inc.		5,120		135,680
Estee Lauder Cos., Inc. (The) (Class A)		1,430		79,694
				215,374
Pharmaceuticals–6.1%
Abbott Laboratories		18,451		863,138
Allergan, Inc.		3,690		214,979
Bristol-Myers Squibb Co.		20,556		512,667
Eli Lilly & Co.		12,129		406,321
Forest Laboratories, Inc.(b)		3,643		99,927
Johnson & Johnson		32,968		1,947,090
King Pharmaceuticals, Inc.(b)		2,983		22,641
Merck & Co., Inc.		37,275		1,303,507
Mylan, Inc.(b)		3,691		62,895

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Pharmaceuticals–(continued)
Pfizer, Inc.		96,420	$	1,374,949
Watson Pharmaceuticals, Inc.(b)		1,280		51,930
				6,860,044
Photographic Products–0.0%
Eastman Kodak Co.(b)		3,211		13,936
Property & Casualty Insurance–2.2%
Allstate Corp. (The)		6,429		184,705
Berkshire Hathaway, Inc. (Class B)(b)		19,787		1,576,826
Chubb Corp.		3,905		195,289
Cincinnati Financial Corp.		1,948		50,395
Progressive Corp. (The)		8,013		150,003
Travelers Cos., Inc. (The)		5,920		291,560
XL Capital Ltd. (Class A) (Cayman Islands)		4,088		65,449
				2,514,227
Publishing–0.2%
Gannett Co., Inc.		2,846		38,307
McGraw-Hill Cos., Inc. (The)		3,795		106,791
Meredith Corp.		410		12,763
New York Times Co. (The) (Class A)(b)		1,392		12,041
Washington Post Co. (The) (Class B)		72		29,555
				199,457
Railroads–0.8%
CSX Corp.		4,661		231,326
Norfolk Southern Corp.		4,423		234,640
Union Pacific Corp.		6,049		420,466
				886,432
Real Estate Services–0.0%
CB Richard Ellis Group, Inc. (Class A)(b)		3,249		44,219
Regional Banks–1.1%
BB&T Corp.		8,272		217,636
Fifth Third Bancorp		9,500		116,755
First Horizon National Corp.(b)		2,733		31,290
Huntington Bancshares, Inc.		8,565		47,450
KeyCorp		10,508		80,807
M&T Bank Corp.		990		84,101
Marshall & Ilsley Corp.		6,302		45,248
PNC Financial Services Group, Inc.		6,287		355,218
Regions Financial Corp.		14,254		93,791
SunTrust Banks, Inc.		5,975		139,217
Zions BanCorp.		1,915		41,307
				1,252,820
Research & Consulting Services–0.1%
Dun & Bradstreet Corp.		602		40,406
Equifax, Inc.		1,513		42,455
				82,861
Residential REIT’s–0.2%
Apartment Investment & Management Co.		1,396		27,040
AvalonBay Communities, Inc.		991		92,530
Equity Residential		3,381		140,785
				260,355
Restaurants–1.2%
Darden Restaurants, Inc.		1,680		65,268
McDonald’s Corp.		12,859		847,022
Starbucks Corp.		8,906		216,416
Yum! Brands, Inc.		5,587		218,117
				1,346,823
Retail REIT’s–0.3%
Kimco Realty Corp.		4,848		65,157
Simon Property Group, Inc.		3,498		282,464
				347,621
Semiconductor Equipment–0.3%
Applied Materials, Inc.		16,056		192,993
KLA-Tencor Corp.		2,031		56,624
MEMC Electronic Materials, Inc.(b)		2,718		26,854
Novellus Systems, Inc.(b)		1,148		29,113
Teradyne, Inc.(b)		2,154		21,002
				326,586
Semiconductors–2.2%
Advanced Micro Devices, Inc.(b)		6,760		49,483
Altera Corp.		3,605		89,440
Analog Devices, Inc.		3,561		99,210
Broadcom Corp. (Class A)		5,162		170,191
Intel Corp.		66,510		1,293,620
Linear Technology Corp.		2,679		74,503
LSI Corp.(b)		7,812		35,935
Microchip Technology, Inc.		2,217		61,500
Micron Technology, Inc.(b)		10,211		86,691
National Semiconductor Corp.		2,855		38,428
Nvidia Corp.(b)		6,839		69,826
Texas Instruments, Inc.		14,610		340,121
Xilinx, Inc.		3,273		82,676
				2,491,624
Soft Drinks–2.5%
Coca-Cola Co. (The)		27,577		1,382,159
Coca-Cola Enterprises, Inc.		3,888		100,544

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Soft Drinks–(continued)
Dr Pepper Snapple Group, Inc.		2,936	$	109,777
PepsiCo, Inc.		19,277		1,174,933
				2,767,413
Specialized Consumer Services–0.1%
H&R Block, Inc.		3,935		61,740
Specialized Finance–0.4%
CME Group, Inc.		788		221,861
IntercontinentalExchange, Inc.(b)		887		100,258
Moody’s Corp.		2,351		46,832
NASDAQ OMX Group, Inc. (The)(b)		1,742		30,973
NYSE Euronext		3,119		86,178
				486,102
Specialized REIT’s–0.5%
HCP, Inc.		3,513		113,294
Health Care REIT, Inc.		1,503		63,307
Host Hotels & Resorts, Inc.		7,867		106,047
Plum Creek Timber Co., Inc.		1,947		67,230
Public Storage		1,623		142,678
Ventas, Inc.		1,874		87,984
				580,540
Specialty Chemicals–0.3%
Airgas, Inc.		995		61,889
Ecolab, Inc.		2,789		125,254
International Flavors & Fragrances, Inc.		950		40,299
Sigma-Aldrich Corp.		1,450		72,253
				299,695
Specialty Stores–0.3%
CarMax, Inc.(b)		2,667		53,073
Office Depot, Inc.(b)		3,293		13,304
Staples, Inc.		8,724		166,192
Tiffany & Co.		1,519		57,585
				290,154
Steel–0.3%
AK Steel Holding Corp.		1,313		15,651
Allegheny Technologies, Inc.		1,177		52,012
Cliffs Natural Resources, Inc.		1,618		76,305
Nucor Corp.		3,766		144,162
United States Steel Corp.		1,713		66,036
				354,166
Systems Software–3.1%
BMC Software, Inc.(b)		2,169		75,113
CA, Inc.		4,668		85,891
McAfee, Inc.(b)		1,864		57,262
Microsoft Corp.		91,142		2,097,177
Novell, Inc.(b)		4,181		23,748
Oracle Corp.		46,797		1,004,264
Red Hat, Inc.(b)		2,254		65,231
Symantec Corp.(b)		9,549		132,540
				3,541,226
Thrifts & Mortgage Finance–0.1%
Hudson City Bancorp, Inc.		5,664		69,327
People’s United Financial, Inc.		4,479		60,467
				129,794
Tires & Rubber–0.0%
Goodyear Tire & Rubber Co. (The)(b)		2,903		28,856
Tobacco–1.6%
Altria Group, Inc.		24,893		498,856
Lorillard, Inc.		1,838		132,299
Philip Morris International, Inc.		22,136		1,014,714
Reynolds American, Inc.		2,020		105,283
				1,751,152
Trading Companies & Distributors–0.1%
Fastenal Co.		1,568		78,698
WW Grainger, Inc.		740		73,593
				152,291
Trucking–0.0%
Ryder System, Inc.		633		25,466
Wireless Telecommunication Services–0.4%
American Tower Corp. (Class A)(b)		4,822		214,579
MetroPCS Communications, Inc.(b)		3,123		25,577
Sprint Nextel Corp.(b)		35,633		151,084
				391,240
Total Common Stocks & Other Equity Interests (Cost $92,309,258)				111,366,692
Money Market Funds–0.6%
Liquid Assets Portfolio–Institutional Class(d)		359,814		359,814
Premier Portfolio–Institutional Class(d)		359,814		359,814
Total Money Market Funds (Cost $719,628)				719,628
TOTAL INVESTMENTS–99.6% (Cost $93,028,886)				112,086,320
OTHER ASSETS LESS LIABILITIES–0.4%				471,131
NET ASSETS–100.0%			$	112,557,451

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

Invesco V.I. S&P 500 Index Fund

Investment Abbreviations:

REIT – Real Estate Investment Trust.

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on net assets

as of June 30, 2010

Information Technology	18.5	%
Financials	16.1
Health Care	12.0
Consumer Staples	11.4
Energy	10.6
Industrials	10.3
Consumer Discretionary	10.1
Utilities	3.7
Materials	3.3
Telecommunication Services	3.0
Money Market Funds Plus Other Assets Less Liabilities	1.0

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

Invesco V.I. S&P 500 Index Fund

Statement of Assets and Liabilities

June 30, 2010
(Unaudited)

Assets:
Investments, at value (Cost $92,309,258)	$	111,366,692
Investments in affiliated money market funds, at value and cost		719,628
Total investments, at value (Cost $93,028,886)		112,086,320
Receivable for:
Investments sold		1,700,173
Dividends		153,026
Fund shares sold		423,250
Other assets		8,384
Total assets		114,371,153
Liabilities:
Payable for:
Investments purchased		1,701,662
Fund shares reacquired		37,758
Variation margin		6,960
Accrued fees to affiliates		36,998
Accrued other operating expenses		24,990
Trustee deferred compensation and retirement plans		5,334
Total liabilities		1,813,702
Net assets applicable to shares outstanding	$	112,557,451
Net assets consist of:
Shares of beneficial interest	$	127,203,559
Undistributed net investment income		971,172
Undistributed net realized gain (loss)		(34,594,317	)
Unrealized appreciation		18,977,037
	$	112,557,451
Net Assets:
Series I	$	33,910,816
Series II	$	78,646,635
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		3,659,820
Series II		8,528,465
Series I:
Net asset value and offering price per share	$	9.27
Series II:
Net asset value and offering price per share	$	9.22

Statement of Operations

For the six months ended June 30, 2010
(Unaudited)

Investment Income:
Dividends	$	1,246,936
Dividends from affiliated money market funds		392
Interest		20
Total investment income		1,247,348
Expenses
Advisory fees		76,001
Administrative services fees		71,370
Custodian fees		5,195
Distribution fees — Series II		110,607
Transfer agent fees		250
Trustees’ and officers’ fees and benefits		9,940
Reports to shareholders		18,212
Professional services fees		16,928
Other		7,005
Total expenses		315,508
Less: Fees waived		(22,708	)
Net expenses		292,800
Net investment income		954,548
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		2,290
Futures contracts		(23,187	)
		(20,897	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(8,894,437	)
Futures contracts		(100,641	)
		(8,995,078	)
Net realized and unrealized gain (loss)		(9,015,975	)
Net increase (decrease) in net assets resulting from operations	$	(8,061,427	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	954,548			2,206,337
Net realized gain (loss)		(20,897	)		(1,087,362	)
Change in net unrealized appreciation (depreciation)		(8,995,078	)		26,688,201
Net increase (decrease) in net assets resulting from operations		(8,061,427	)		27,807,176
Distributions to shareholders from net investment income:
Series I shares		(728,756	)		(976,649	)
Series II shares		(1,463,002	)		(2,074,490	)
Total distributions from net investment income		(2,191,758	)		(3,051,139	)
Net increase (decrease) from in net assets resulting from share transactions		(7,577,218	)		(8,284,436	)
Net increase (decrease) in net assets		(17,830,403	)		16,471,601
Net Assets:
Beginning of year		130,387,854			113,916,253
End of year (Includes undistributed net investment income of $971,172 and $2,208,382, respectively)	$	112,557,451			130,387,854

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. S&P 500 Index Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Morgan Stanley Variable Investment Series S&P 500 Index Portfolio (the “Acquired Fund”), an investment portfolio of Morgan Stanley Variable Investment Series. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class X and Class Y shares received Series I and Series II shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class X and Class Y shares prior to the Reorganization are included with Series I and Series II shares, respectively, of the Fund throughout this report.

  The Fund’s primary investment objective is to provide investment results that, before expenses, correspond to the total return (i.e., the combination of capital changes and income) of the Standard & Poor’s^® 500 Composite Stock Price Index.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. S&P 500 Index Fund

	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco V.I. S&P 500 Index Fund

F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
J.	Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $2 billion		0	.12%
Over $2 billion		0	.10%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012 to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.28% and Series II shares to 0.53% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time.

  Prior to the Reorganization, MSIA had voluntarily agreed to cap operating expenses (except for brokerage and 12b-1 fees) by assuming the Acquired Fund’s “other expenses” and/or waiving the Acquired Fund’s advisory fees, and Morgan Stanley Services Company Inc. (the “MSSCI”) had agreed to waive the Acquired Fund’s administrative fees, to the extent such operating expenses exceed 0.40% of the average daily net assets of the Acquired Fund on an annualized basis.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the six months ended June 30, 2010, the Adviser and MSIA waived advisory fees of $22,290 and $418, respectively.

Invesco V.I. S&P 500 Index Fund

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $24,401 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $42,859 to MSSCI.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $207 to Morgan Stanley Trust, which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $93,623 to Morgan Stanley Distributors Inc. based on the annual rate of 0.25% of the Acquired Fund’s average daily net assets of Class Y shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	112,086,320		$	—	$	—	$	112,086,320
Futures*		(80,397	)		—		—		(80,397	)
Total Investments	$	112,005,923		$	—	$	—	$	112,005,923

*  Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Invesco V.I. S&P 500 Index Fund

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Equity risk
Futures Contracts(a)		—	$	(80,397	)

^(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the six months ended June 30, 2010

The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on
	Statement of Operations
	Futures*
Realized Gain (Loss)
Equity risk	$	(23,187	)
Change in Unrealized Appreciation (Depreciation)
Equity risk	$	(100,641	)
Total	$	(123,828	)

*  The average value of futures outstanding during the period was $1,279,911.

Open Futures Contracts at Period-End
							Unrealized
	Number of		Month/				Appreciation
Contract	Contracts		Commitment		Value		(Depreciation)
S&P 500 E-MINI		25		September-2010/Long	$	1,283,250	$	(100,609	)
S&P 500 E-MINI		9		September-2010/Short		461,970		20,212
Total							$	(80,397	)

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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.

Invesco V.I. S&P 500 Index Fund

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	9,169,000
December 31, 2012		3,450,000
December 31, 2013		9,726,000
December 31, 2014		5,449,000
December 31, 2017		1,185,000
Total capital loss carryforward	$	28,979,000

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $4,466,203 and $13,396,545, 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	$	28,276,630
Aggregate unrealized (depreciation) of investment securities		(14,594,762	)
Net unrealized appreciation of investment securities	$	13,681,868
Cost of investments for tax purposes is $98,404,452.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Series I Shares
Sold		63,282		$	650,867			227,397		$	1,896,482
Reinvestment of dividends and distributions		73,537			728,755			117,952			976,649
Redeemed		(310,101	)		(3,145,664	)		(600,690	)		(5,068,610	)
Net increase (decrease) — Series I		(173,282	)		(1,766,042	)		(255,341	)		(2,195,479	)
Series II Shares
Sold		71,410			676,753			584,015			5,084,799
Reinvestment of dividends and distributions		148,378			1,463,002			251,759			2,074,490
Redeemed		(768,084	)		(7,950,931	)		(1,515,796	)		(13,248,246	)
Net increase (decrease) — Series II		(548,296	)		(5,811,176	)		(680,022	)		(6,088,957	)
Net increase (decrease) in share activity		(721,578	)	$	(7,577,218	)		(935,363	)	$	(8,284,436	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 95% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. S&P 500 Index Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Six months
	ended June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Series I
Selected Per Share Data:
Net asset value, beginning of period	$	10.14		$	8.27		$	13.46		$	13.02		$	11.46		$	11.14
Income (loss) from investment operations:
Net investment income(a)		0.09			0.18			0.23			0.23			0.20			0.18
Net realized and unrealized gain (loss)		(0.76	)		1.94			(5.14	)		0.45			1.56			0.33
Total income (loss) from investment operations		(0.67	)		2.12			(4.91	)		0.68			1.76			0.51
Less dividends from net investment income		(0.20	)		(0.25	)		(0.28	)		(0.24	)		(0.20	)		(0.19	)
Net asset value, end of period	$	9.27		$	10.14		$	8.27		$	13.46		$	13.02		$	11.46
Total return(b)		(6.75	)%		26.34	%		(37.07	)%		5.23	%		15.56	%		4.64	%
Net assets, end of period, (000’s omitted)	$	33,911		$	38,873		$	33,801		$	66,275		$	84,545		$	103,899
Ratios to Average Net Assets:
Total expenses:
With fee waivers and/or expense reimbursements		0.28	%(c)		0.28	%(d)		0.30	%(d)		0.27	%		0.28	%		0.28	%
Without fee waivers and/or expense reimbursements		0.32	%(c)		0.28	%(d)		0.30	%(d)		0.27	%		0.28	%		0.28	%
Net investment income		1.69	%(c)		2.09	%(d)		2.01	%(d)		1.71	%		1.67	%		1.59	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental Data:
Portfolio turnover rate(f)		4	%		5	%		14	%		3	%		4	%		5	%

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $38,499.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. S&P 500 Index Fund

NOTE 10—Financial Highlights—(continued)

	Six months
	ended June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Series II Shares
Selected Per Share Data:
Net asset value, beginning of period	$	10.08		$	8.21		$	13.36		$	12.92		$	11.38		$	11.06
Income (loss) from investment operations:
Net investment income(a)		0.07			0.16			0.20			0.20			0.17			0.15
Net realized and unrealized gain (loss)		(0.76	)		1.93			(5.11	)		0.45			1.54			0.33
Total income (loss) from investment operations		(0.69	)		2.09			(4.91	)		0.65			1.71			0.48
Less dividends from net investment income		(0.17	)		(0.22	)		(0.24	)		(0.21	)		(0.17	)		(0.16	)
Net asset value, end of period	$	9.22		$	10.08		$	8.21		$	13.36		$	12.92		$	11.38
Total return(b)		(6.92	)%		26.06	%		(37.27	)%		5.00	%		15.21	%		4.43	%
Net assets, end of period, (000’s omitted)	$	78,647		$	91,515		$	80,115		$	152,984		$	176,883		$	172,544
Ratios to Average Net Assets:
Total expenses:
With fee waivers and/or expense reimbursements		0.53	%(c)		0.53	%(d)		0.55	%(d)		0.52	%		0.53	%		0.53	%
Without fee waivers and/or expense reimbursements		0.57	%(c)		0.53	%(d)		0.55	%(d)		0.52	%		0.53	%		0.53	%
Net investment income		1.44	%(c)		1.84	%(d)		1.76	%(d)		1.46	%		1.42	%		1.34	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental Data:
Portfolio turnover rate(f)		4	%		5	%		14	%		3	%		4	%		5	%

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $89,219.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 11—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco V.I. S&P 500 Index Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. 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.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio2
Series I	$	1,000.00	$	932.50	$	1.34	$	1,023.41	$	1.40		0.28	%
Series II		1,000.00		930.80		2.54		1,022.17		2.66		0.53

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. S&P 500 Index Fund

Approval of Investment Advisory and Sub-Advisory Agreements with Invesco Advisers, Inc. and its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco V.I. S&P 500 Index Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Morgan Stanley retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco

Invesco V.I. S&P 500 Index Fund

Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco V.I. S&P 500 Index Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Morgan Stanley Variable Investment Series — S&P 500 Index Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		11,445,667		446,098		823,509		0

Invesco V.I. S&P 500 Index Fund

      Invesco V.I. Select Dimensions Funds
    Semiannual Report to Shareholders ■ June 30, 2010

     Invesco V.I. Select Dimensions Balanced Fund
     Invesco V.I. Select Dimensions Dividend Growth Fund
     Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website,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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

MS-VISDCOMBO-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary – Invesco V.I. Select Dimensions Balanced Fund
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-4.08	%
Series II Shares	-4.19
Russell 1000 Value Index▼ (Broad Market Index)	-5.12
Barclays Capital U.S. Government/Credit Index▼ (Style-Specific Index)	5.49
▼Lipper Inc.
The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Barclays Capital U.S. Government/Credit Index includes treasuries and agencies that represent the government portion of the index, and includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements to represent the credit interests.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/10
Series I Shares
Inception (11/9/94)	6.78	%
10 Years	4.28
5 Years	1.85
1 Year	14.44
Series II Shares
Inception (7/24/00)	3.77	%
5 Years	1.58
1 Year	14.11

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Select Dimensions Balanced Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Select Dimensions Balanced Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.82% and 1.07%, 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 Series I and Series II shares was 1.12% and 1.37%, 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.

     Invesco V.I. Select Dimensions Balanced Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco V.I. Select Dimensions Funds

Fund Performance

Performance summary — Invesco V.I. Select Dimensions Dividend Growth Fund
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-7.01	%
Series II Shares	-7.13
S&P 500 Index▼ (Broad Market/Style-Specific Index)	-6.64
▼Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10
Series I Shares
Inception (11/9/94)	6.53	%
10 Years	1.10
5 Years	-1.87
1 Year	12.82
Series II Shares
Inception (7/24/00)	0.63	%
5 Years	-2.12
1 Year	12.55

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Select Dimensions Dividend Growth Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Select Dimensions Dividend Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.72% and 0.97%, 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 Series I and Series II shares was 0.95% and 1.20%, 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.

     Invesco V.I. Select Dimensions Dividend Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco V.I. Select Dimensions Funds

Fund Performance

Performance summary – Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-3.59	%
Series II Shares	-3.73
S&P 500 Equal Weight Index▼ (Broad Market/Style-Specific Index)	-3.43
▼Invesco, Bloomberg L.P.
The S&P 500 Equal Weight Index is the equally weighted version of the S&P 500® Index.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10
Series I Shares
Inception (11/9/94)	8.73	%
10 Years	4.67
5 Years	1.12
1 Year	24.29
Series II Shares
Inception (7/24/00)	4.26	%
5 Years	0.86
1 Year	24.06

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.37% and 0.62%, 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 Series I and Series II shares was 0.60% and 0.85%, 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.

     Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco V.I. Select Dimensions Funds

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

Invesco V.I. Select Dimensions Balanced Fund

	Shares		Value
Common Stocks & Other Equity Interests–64.4%
Aerospace & Defense–0.3%
General Dynamics Corp.		1,924	$	112,669
Air Freight & Logistics–0.5%
FedEx Corp.		2,405		168,614
Apparel Retail–0.6%
Gap, Inc. (The)		11,733		228,324
Asset Management & Custody Banks–0.9%
Janus Capital Group, Inc.		12,519		111,169
State Street Corp.		6,636		224,429
				335,598
Automobile Manufacturers–0.4%
Ford Motor Co.(b)		14,235		143,489
Biotechnology–0.8%
Genzyme Corp.(b)		5,927		300,914
Cable & Satellite–1.9%
Comcast Corp. (Class A)		23,500		408,195
Time Warner Cable, Inc.		5,909		307,741
				715,936
Communications Equipment–0.9%
Cisco Systems, Inc.(b)		16,128		343,688
Computer Hardware–1.9%
Dell, Inc.(b)		21,741		262,197
Hewlett-Packard Co.		10,444		452,016
				714,213
Consumer Electronics–0.7%
Sony Corp. (ADR) (Japan)		9,516		253,887
Data Processing & Outsourced Services–0.6%
Western Union Co. (The)		14,656		218,521
Diversified Banks–1.2%
US Bancorp		7,105		158,797
Wells Fargo & Co.		10,579		270,822
				429,619
Diversified Chemicals–1.1%
Dow Chemical Co. (The)		10,676		253,235
PPG Industries, Inc.		2,886		174,343
				427,578
Diversified Consumer Services–0.4%
Cintas Corp.		5,579		133,729
Diversified Metals & Mining–0.4%
Freeport-McMoRan Copper & Gold, Inc.		2,501		147,884
Drug Retail–0.5%
Walgreen Co.		7,553		201,665
Electric Utilities–2.8%
American Electric Power Co., Inc.		16,263		525,295
Edison International		3,462		109,815
Entergy Corp.		2,683		192,156
FirstEnergy Corp.		5,780		203,629
				1,030,895
Food Distributors–0.8%
Sysco Corp.		9,906		283,014
Health Care Distributors–0.5%
Cardinal Health, Inc.		5,097		171,310
Health Care Equipment–0.9%
Covidien PLC (Ireland)		7,878		316,538
Home Improvement Retail–1.1%
Home Depot, Inc.		14,509		407,268
Human Resource & Employment Services–0.7%
Manpower, Inc.		3,111		134,333
Robert Half International, Inc.		4,905		115,513
				249,846
Hypermarkets & Super Centers–1.2%
Wal-Mart Stores, Inc.		9,054		435,226
Industrial Conglomerates–3.9%
General Electric Co.		55,702		803,223
Siemens AG (ADR) (Germany)		2,982		266,978
Tyco International Ltd. (Luxembourg)		10,389		366,005
				1,436,206
Industrial Machinery–1.3%
Dover Corp.		6,331		264,572
Ingersoll-Rand PLC (Ireland)		6,792		234,256
				498,828
Insurance Brokers–2.1%
Marsh & McLennan Cos., Inc.		35,037		790,084

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

	Shares		Value
Integrated Oil & Gas–4.9%
ConocoPhillips		5,480	$	269,013
Exxon Mobil Corp.		4,251		242,605
Hess Corp.		5,132		258,345
Occidental Petroleum Corp.		7,607		586,880
Royal Dutch Shell PLC (ADR) (Netherlands)		8,869		445,401
				1,802,244
Integrated Telecommunication Services–0.6%
Verizon Communications, Inc.		8,493		237,974
Internet Software & Services–2.2%
eBay, Inc.(b)		28,180		552,610
Yahoo!, Inc.(b)		18,407		254,569
				807,179
Investment Banking & Brokerage–0.9%
Charles Schwab Corp. (The)		23,662		335,527
IT Consulting & Other Services–0.6%
Amdocs Ltd.(b)		8,722		234,186
Life & Health Insurance–0.4%
Principal Financial Group, Inc.		7,128		167,080
Managed Health Care–0.9%
UnitedHealth Group, Inc.		12,250		347,900
Motorcycle Manufacturers–0.3%
Harley-Davidson, Inc.		5,581		124,066
Movies & Entertainment–3.1%
Time Warner, Inc.		15,917		460,160
Viacom, Inc. (Class B)		22,561		707,739
				1,167,899
Office Services & Supplies–0.4%
Avery Dennison Corp.		4,521		145,260
Oil & Gas Equipment & Services–0.8%
Schlumberger Ltd. (Netherlands Antilles)		5,385		298,006
Oil & Gas Exploration & Production–1.7%
Anadarko Petroleum Corp.		7,318		264,107
Devon Energy Corp.		3,944		240,268
Noble Energy, Inc.		1,951		117,704
				622,079
Other Diversified Financial Services–5.5%
Bank of America Corp.		41,953		602,865
Citigroup, Inc.(b)		66,357		249,502
JPMorgan Chase & Co.		32,400		1,186,164
				2,038,531
Packaged Foods & Meats–1.9%
Kraft Foods, Inc. (Class A)		19,331		541,268
Unilever N.V. (NY Registered Shares) (Netherlands)		6,603		180,394
				721,662
Personal Products–0.7%
Avon Products, Inc.		9,385		248,702
Pharmaceuticals–5.2%
Abbott Laboratories		4,010		187,588
Bayer AG (ADR) (Germany)		4,670		262,562
Bristol-Myers Squibb Co.		18,648		465,081
Merck & Co., Inc.		11,563		404,358
Pfizer, Inc.		23,755		338,746
Roche Holding AG (ADR) (Switzerland)		7,515		259,769
				1,918,104
Property & Casualty Insurance–0.8%
Chubb Corp.		5,740		287,057
Regional Banks–2.5%
BB&T Corp.		8,175		215,084
Fifth Third Bancorp		14,715		180,847
PNC Financial Services Group, Inc.		9,318		526,467
				922,398
Semiconductor Equipment–0.3%
Lam Research Corp.(b)		3,161		120,308
Semiconductors–0.8%
Intel Corp.		14,733		286,557
Soft Drinks–0.5%
Coca-Cola Co. (The)		3,856		193,263
Wireless Telecommunication Services–1.0%
Vodafone Group PLC (ADR) (United Kingdom)		18,149		375,140
Total Common Stocks & Other Equity Interests (Cost $26,219,874)				23,896,665
	Principal
	Amount
U.S. Treasury Securities–18.2%
U.S. Treasury Bills–0.1%
0.10%, 10/28/10(c)(d)	$	15,000		14,993

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

	Principal
	Amount		Value
U.S. Treasury Bonds–1.7%
4.25%, 05/15/39	$	555,000	$	586,826
4.625%, 02/15/40		50,000		56,203
				643,029
U.S. Treasury Notes–16.4%
0.875%, 02/29/12		500,000		502,695
1.00%, 04/30/12		400,000		403,031
1.375%, 09/15/12		1,700,000		1,726,297
1.50%, 12/31/13		500,000		504,141
2.375%, 10/31/14		2,170,000		2,238,490
2.50%, 03/31/15		275,000		284,969
2.625%, 07/31/14		100,000		104,500
3.625%, 08/15/19		265,000		280,155
3.625%, 02/15/20		46,000		48,595
				6,092,873
Total U.S. Treasury Securities (Cost $6,569,685)				6,750,895
Bonds & Notes–10.9%
Aerospace & Defense–0.1%
Systems 2001 Asset Trust, 6.664%, 09/15/13(e)		28,257		29,953
Agricultural Products–0.0%
Bunge Ltd. Finance Corp., 8.50%, 06/15/19		10,000		11,928
Airlines–0.1%
Delta Air Lines, Inc., 6.20%, 07/02/18		20,000		20,275
Automobile Manufacturers–0.1%
Daimler Finance North America LLC, 7.30%, 01/15/12		20,000		21,522
Nissan Motor Acceptance Corp., 4.50%, 01/30/15(e)		10,000		10,337
				31,859
Biotechnology–0.1%
Biogen Idec, Inc., 6.875%, 03/01/18		20,000		22,975
Brewers–0.2%
Anheuser-Busch InBev Worldwide, Inc., 7.20%, 01/15/14(e)		25,000		28,777
FBG Finance Ltd. (Australia), 5.125%, 06/15/15(e)		30,000		32,688
				61,465
Cable & Satellite–0.3%
Comcast Corp., 5.15%, 03/01/20		15,000		15,685
Comcast Corp., 5.70%, 05/15/18		45,000		49,411
Time Warner Cable, Inc., 6.75%, 06/15/39		10,000		11,053
Time Warner Cable, Inc., 8.25%, 04/01/19		10,000		12,319
Time Warner Cable, Inc., 8.75%, 02/14/19		15,000		18,909
				107,377
Communications Equipment–0.0%
Cisco Systems, Inc., 5.90%, 02/15/39		5,000		5,531
Construction Materials–0.0%
Holcim US Finance Sarl & Cie SCS, 6.00%, 12/30/19(e)		15,000		16,229
Consumer Finance–0.5%
American Express Co., 8.125%, 05/20/19		20,000		24,810
American Express Credit Corp., (Series C), 7.30%, 08/20/13		35,000		39,739
Capital One Financial Corp., 6.75%, 09/15/17		50,000		57,292
HSBC Finance Corp., 6.375%, 10/15/11		25,000		26,270
HSBC Finance Corp., 6.75%, 05/15/11		45,000		46,895
				195,006
Department Stores–0.1%
Kohl’s Corp., 6.875%, 12/15/37		25,000		30,107
Diversified Banks–1.0%
Abbey National Treasury Services PLC, 3.875%, 11/10/14(e)		100,000		99,801
Bank of Nova Scotia, 2.375%, 12/17/13		35,000		35,839
Barclays Bank PLC (United Kingdom), 6.75%, 05/22/19		25,000		27,886
Commonwealth Bank of Australia (Australia), 5.00%, 10/15/19(e)		35,000		36,562
Credit Suisse (Switzerland), 6.00%, 02/15/18		5,000		5,206

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

	Principal
	Amount		Value
Diversified Banks–(continued)
US Bancorp, 2.00%, 06/14/13	$	50,000	$	50,605
Wells Fargo & Co., 5.625%, 12/11/17		105,000		114,504
				370,403
Diversified Capital Markets–0.1%
Credit Suisse AG, 5.40%, 01/14/20		10,000		9,982
UBS AG (Switzerland), (MTN), 5.875%, 12/20/17		25,000		26,534
				36,516
Diversified Metals & Mining–0.2%
Freeport-McMoRan Copper & Gold, Inc., 8.375%, 04/01/17		5,000		5,511
Rio Tinto Finance USA Ltd. (Australia), 9.00%, 05/01/19		30,000		39,301
Southern Copper Corp., 5.375%, 04/16/20		5,000		5,047
Southern Copper Corp., 6.75%, 04/16/40		10,000		10,060
				59,919
Drug Retail–0.1%
CVS Pass-Through Trust, 6.036%, 12/10/28		41,160		42,933
Electric Utilities–1.0%
EDF SA, 4.60%, 01/27/20(e)		25,000		25,684
Enel Finance International SA, 5.125%, 10/07/19(e)		100,000		100,231
FirstEnergy Solutions Corp., 6.05%, 08/15/21		60,000		61,444
Iberdrola Finance Ireland Ltd. (Ireland), 3.80%, 09/11/14(e)		75,000		74,817
Ohio Power Co., (Series M), 5.375%, 10/01/21		50,000		54,013
PPL Energy Supply LLC, 6.30%, 07/15/13		20,000		22,212
Progress Energy, Inc., 7.05%, 03/15/19		35,000		41,589
				379,990
Electrical Components & Equipment–0.1%
Cooper US, Inc., 5.25%, 11/15/12		25,000		26,982
Electronic Components–0.1%
Amphenol Corp., 4.75%, 11/15/14		15,000		15,834
Corning, Inc., 7.25%, 08/15/36		5,000		5,945
				21,779
Environmental & Facilities Services–0.1%
Republic Services, Inc., 5.50%, 09/15/19(e)		25,000		27,043
Fertilizers & Agricultural Chemicals–0.1%
Mosaic Co. (The), 7.625%, 12/01/16(e)		30,000		32,925
Potash Corp. of Saskatchewan, Inc. (Canada), 5.875%, 12/01/36		5,000		5,383
				38,308
Food Retail–0.3%
Delhaize America, Inc., 9.00%, 04/15/31		10,000		13,563
Delhaize Group SA (Belgium), 5.875%, 02/01/14		15,000		16,761
WM Wrigley Jr Co, 1.912%, 06/28/11(e)(f)		65,000		65,203
				95,527
Gas Utilities–0.1%
QEP Resources Inc, 6.80%, 04/01/18		25,000		26,196
Health Care Services–0.1%
Medco Health Solutions, Inc., 7.125%, 03/15/18		30,000		35,885
Quest Diagnostics, Inc., 4.75%, 01/30/20		20,000		20,141
				56,026
Health Care Equipment–0.1%
CareFusion Corp., 4.125%, 08/01/12		35,000		36,651
Home Improvement Retail–0.1%
Home Depot, Inc., 5.875%, 12/16/36		25,000		25,565
Hypermarkets & Super Centers–0.0%
Wal-Mart Stores, Inc., 5.25%, 09/01/35		10,000		10,486
Wal-Mart Stores, Inc., 6.50%, 08/15/37		5,000		6,077
				16,563

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

	Principal
	Amount		Value
Industrial Conglomerates–0.5%
General Electric Capital Corp., 5.625%, 05/01/18	$	35,000	$	37,286
General Electric Capital Corp., (MTN), 5.875%, 01/14/38		15,000		14,696
General Electric Capital Corp., (Series G), 6.00%, 08/07/19		50,000		54,347
General Electric Co., 5.25%, 12/06/17		45,000		49,124
Koninklijke Philips Electronics N.V. (Netherlands), 5.75%, 03/11/18		25,000		28,253
				183,706
Integrated Oil & Gas–0.1%
Hess Corp., 6.00%, 01/15/40		25,000		25,955
Shell International Finance BV (Finland), 3.10%, 06/28/15		25,000		25,391
				51,346
Integrated Telecommunication Services–0.7%
AT&T Corp., 8.00%, 11/15/31		5,000		6,424
AT&T, Inc., 6.15%, 09/15/34		15,000		15,985
AT&T, Inc., 6.30%, 01/15/38		50,000		54,506
Deutsche Telekom International Finance BV (Netherlands), 8.75%, 06/15/30		15,000		19,368
NBC Universal, Inc., 5.15%, 04/30/20(e)		20,000		20,925
Telecom Italia Capital SA (Luxembourg), 6.999%, 06/04/18		35,000		37,361
Telecom Italia Capital SA (Luxembourg), 7.175%, 06/18/19		20,000		21,519
Telefonica Europe BV (Netherlands), 8.25%, 09/15/30		30,000		37,116
Verizon Communications, Inc., 6.35%, 04/01/19		25,000		29,159
Verizon Communications, Inc., 8.95%, 03/01/39		20,000		28,869
				271,232
Investment Banking & Brokerage–0.5%
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18		55,000		64,013
Goldman Sachs Group, Inc. (The), 6.15%, 04/01/18		100,000		104,729
Goldman Sachs Group, Inc. (The), 6.75%, 10/01/37		20,000		19,720
				188,462
Life & Health Insurance–0.4%
Aegon N.V. (Netherlands), 4.625%, 12/01/15		25,000		25,907
MetLife, Inc., 7.717%, 02/15/19		10,000		11,869
Pacific LifeCorp, 6.00%, 02/10/20(e)		40,000		41,605
Principal Financial Group, Inc., 8.875%, 05/15/19		15,000		18,432
Prudential Financial, Inc., (MTN), 4.75%, 09/17/15		25,000		25,916
Prudential Financial, Inc., (MTN), 6.625%, 12/01/37		15,000		15,677
Prudential Financial, Inc., (Series D), 7.375%, 06/15/19		5,000		5,744
				145,150
Managed Health Care–0.1%
UnitedHealth Group, Inc., 6.00%, 02/15/18		25,000		28,042
Movies & Entertainment–0.2%
News America, Inc., 7.85%, 03/01/39		30,000		37,384
Time Warner, Inc., 5.875%, 11/15/16		10,000		11,267
Time Warner, Inc., 7.70%, 05/01/32		20,000		24,027
Vivendi SA (France), 6.625%, 04/04/18(e)		15,000		17,381
				90,059
Multi-Utilities–0.2%
CenterPoint Energy Resources Corp., 6.25%, 02/01/37		20,000		21,131
CenterPoint Energy Resources Corp., (Series B), 7.875%, 04/01/13		10,000		11,493
NiSource Finance Corp., 6.80%, 01/15/19		25,000		28,196
				60,820

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

	Principal
	Amount		Value
Office Electronics–0.0%
Xerox Corp., 5.625%, 12/15/19	$	5,000	$	5,346
Xerox Corp., 6.35%, 05/15/18		10,000		11,128
				16,474
Office REIT’s–0.2%
Boston Properties LP, 5.875%, 10/15/19		25,000		26,860
Digital Realty Trust LP, 4.50%, 07/15/15		30,000		29,909
				56,769
Oil & Gas Equipment & Services–0.1%
Weatherford International Ltd. (Switzerland), 9.625%, 03/01/19		30,000		36,339
Oil & Gas Exploration & Production–0.1%
Petrobras International Finance Co. (Cayman Islands), 5.75%, 01/20/20		20,000		20,120
Oil & Gas Storage & Transportation–0.4%
Energy Transfer Partners LP, 8.50%, 04/15/14		25,000		28,997
Enterprise Products Operating LLC, 5.25%, 01/31/20		15,000		15,559
Enterprise Products Operating LLC, (Series N), 6.50%, 01/31/19		25,000		27,926
Plains All American Pipeline LP/PAA Finance Corp., 6.70%, 05/15/36		20,000		20,136
Plains All American Pipeline LP / PAA Finance Corp., 8.75%, 05/01/19		20,000		24,002
Texas Eastern Transmission LP, 7.00%, 07/15/32		20,000		23,919
				140,539
Other Diversified Financial Services–1.1%
Bank of America Corp., 5.75%, 12/01/17		110,000		114,965
Bear Stearns Cos. LLC (The), 6.40%, 10/02/17		5,000		5,616
Citigroup Inc, 5.875%, 05/29/37		25,000		23,526
Citigroup Inc, 6.125%, 11/21/17		35,000		36,782
Citigroup Inc, 6.125%, 05/15/18		25,000		26,255
Citigroup Inc, 8.50%, 05/22/19		40,000		47,728
ERAC USA Finance LLC, 2.75%, 07/01/13(e)		20,000		20,121
General Electric Capital Corp., 5.50%, 01/08/20		15,000		15,902
JPMorgan Chase & Co., 4.95%, 03/25/20		20,000		20,766
JPMorgan Chase & Co., 6.00%, 01/15/18		25,000		27,666
Merrill Lynch & Co., Inc., (MTN), 6.875%, 04/25/18		40,000		42,837
Xlliac Global Funding, 4.80%, 08/10/10(e)		35,000		35,010
				417,174
Packaged Foods & Meats–0.3%
ConAgra Foods, Inc., 7.00%, 10/01/28		20,000		23,744
ConAgra Foods, Inc., 8.25%, 09/15/30		10,000		13,092
Kraft Foods, Inc., 5.375%, 02/10/20		15,000		16,074
Kraft Foods, Inc., 6.875%, 01/26/39		20,000		23,506
Kraft Foods, Inc., 7.00%, 08/11/37		30,000		35,523
				111,939
Paper Packaging–0.0%
Sealed Air Corp., 7.875%, 06/15/17(e)		10,000		10,464
Property & Casualty Insurance–0.0%
Allstate Corp. (The), 7.45%, 05/16/19		15,000		17,702
Railroads–0.0%
CSX Corp., 6.15%, 05/01/37		5,000		5,467
Union Pacific Corp., 6.125%, 02/15/20		5,000		5,792
				11,259
Real Estate Management & Development–0.1%
Brookfield Asset Management, Inc. (Canada), 5.80%, 04/25/17		10,000		10,129
Brookfield Asset Management, Inc. (Canada), 7.125%, 06/15/12		10,000		10,745
				20,874

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

	Principal
	Amount		Value
Regional Banks–0.1%
PNC Funding Corp., 5.125%, 02/08/20	$	30,000	$	31,330
PNC Funding Corp., 6.70%, 06/10/19		20,000		23,020
				54,350
Reinsurance–0.1%
Platinum Underwriters Finance, Inc., (Series B), 7.50%, 06/01/17		15,000		15,961
Reinsurance Group of America, Inc., 6.45%, 11/15/19		25,000		26,705
				42,666
Residential REIT’s–0.1%
AvalonBay Communities, Inc., (MTN), 6.10%, 03/15/20		25,000		27,779
Restaurants–0.1%
Yum! Brands, Inc., 5.30%, 09/15/19		20,000		21,569
Yum! Brands, Inc., 6.25%, 03/15/18		10,000		11,462
				33,031
Retail REIT’s–0.1%
Simon Property Group LP, 5.65%, 02/01/20		10,000		10,615
Simon Property Group LP, 6.75%, 05/15/14		15,000		16,755
WEA Finance LLC/WT Finance Aust Pty Ltd., 6.75%, 09/02/19(e)		25,000		27,778
				55,148
Semiconductor Equipment–0.0%
KLA-Tencor Corp., 6.90%, 05/01/18		15,000		16,856
Specialized Finance–0.1%
NASDAQ OMX Group, Inc. (The), 5.55%, 01/15/20		25,000		25,619
Steel–0.2%
ArcelorMittal (Luxembourg), 9.85%, 06/01/19		36,000		45,035
Vale Overseas Ltd. (Cayman Islands), 5.625%, 09/15/19		25,000		26,503
				71,538
Tobacco–0.1%
BAT International Finance PLC (United Kingdom), 9.50%, 11/15/18(e)		15,000		19,724
Philip Morris International, Inc., 5.65%, 05/16/18		25,000		27,456
				47,180
Trucking–0.0%
Ryder System, Inc., (MTN), 7.20%, 09/01/15		10,000		11,640
Total Bonds & Notes (Cost $3,793,612)				4,057,383
U.S. Government Agency Obligations–3.9%
Diversified Banks–FDIC Guaranteed–0.1%
GMAC, Inc., 2.20%, 12/19/12		50,000		51,473
Federal Home Loan Mortgage Corp. (FHLMC)–1.2%
Federal Home Loan Mortgage Corp., 3.00%, 07/28/14		120,000		126,408
Federal Home Loan Mortgage Corp., 5.50%, 08/23/17		140,000		164,627
Federal Home Loan Mortgage Corp., 6.75%, 03/15/31		100,000		132,681
				423,716
Federal National Mortgage Association (FNMA)–0.5%
Federal National Mortgage Assoc., 4.375%, 10/15/15		180,000		199,467
Industrial Conglomerates–FDIC Guaranteed–1.1%
General Electric Capital Corp., 2.20%, 06/08/12		80,000		82,163
General Electric Capital Corp. (Series G), 2.625%, 12/28/12		300,000		312,036
				394,199
Other Diversified Financial Services–FDIC Guaranteed–1.0%
Citigroup Funding, Inc., 2.25%, 12/10/12		360,000		371,198
Total U.S. Government Agency Obligations (Cost $1,378,784)				1,440,053

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

	Principal
	Amount		Value
Foreign Government Obligations–0.4%
Brazilian Government International Bond (Brazil), 6.00%, 01/17/17	$	100,000	$	110,350
Peruvian Government International Bond (Peru), 7.125%, 03/30/19		10,000		11,875
Republic of Italy (Italy), 6.875%, 09/27/23		30,000		34,253
Total Foreign Government Obligations (Cost $145,358)				156,478
	Shares
Money Market Funds–1.9%
Liquid Assets Portfolio–Institutional Class(g)		344,280		344,280
Premier Portfolio–Institutional Class(g)		344,280		344,280
Total Money Market Funds (Cost $688,560)				688,560
TOTAL INVESTMENTS (Cost $38,795,873)–99.7%				36,990,034
OTHER ASSETS IN EXCESS OF LIABILITIES–0.3%				116,250
NET ASSETS–100.0%			$	37,106,284

Investment Abbreviations:

ADR	– American Depositary Receipt.
FDIC	– Federal Deposit Insurance Corporation.
MTN	– Medium Term Note.
REIT	– Real Estate Investment Trust.

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(d)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1K and Note 4.
(e)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $773,258 which represented 2.08% of the Fund’s Net Assets.
(f)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(g)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By security type, based on Total Investments

as of June 30, 2010

Common Stocks & Other Equity Interests	64.6	%
U.S. Treasury Securities	18.3
Bonds & Notes	11.0
U.S. Government Sponsored Agency Obligations	3.9
Foreign Government Obligations	0.4
Money Market Funds	1.8

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

Invesco V.I. Select Dimensions Dividend Growth Fund

	Shares		Value
Common Stocks & Other Equity Interests–92.1%
Aerospace & Defense–4.2%
General Dynamics Corp.		15,197	$	889,936
Raytheon Co.		18,200		880,698
United Technologies Corp.		26,739		1,735,629
				3,506,263
Apparel Retail–1.5%
Ross Stores, Inc.		23,930		1,275,230
Apparel, Accessories & Luxury Goods–2.7%
Guess?, Inc.		36,290		1,133,699
VF Corp.		16,349		1,163,722
				2,297,421
Asset Management & Custody Banks–1.0%
Federated Investors, Inc. (Class B)		41,356		856,483
Auto Parts & Equipment–1.3%
Johnson Controls, Inc.		41,860		1,124,778
Brewers–1.2%
Heineken N.V. (Netherlands)		23,460		994,457
Building Products–1.0%
Masco Corp.		79,472		855,119
Casinos & Gaming–1.0%
International Game Technology		52,139		818,582
Communications Equipment–1.3%
Corning, Inc.		66,730		1,077,690
Computer & Electronics Retail–1.6%
Best Buy Co., Inc.		39,700		1,344,242
Computer Hardware–4.9%
Apple, Inc.(b)(c)		3,248		816,969
Hewlett-Packard Co.		37,920		1,641,178
International Business Machines Corp.		13,347		1,648,088
				4,106,235
Construction & Farm Machinery & Heavy Trucks–1.5%
Caterpillar, Inc.		20,460		1,229,032
Consumer Finance–3.1%
American Express Co.		38,270		1,519,319
Capital One Financial Corp.		26,561		1,070,408
				2,589,727
Data Processing & Outsourced Services–2.6%
Automatic Data Processing, Inc.		27,994		1,127,038
Computer Sciences Corp.		23,360		1,057,040
				2,184,078
Electric Utilities–1.0%
Entergy Corp.		11,956		856,289
Food Distributors–1.2%
Sysco Corp.		35,036		1,000,979
Gas Utilities–1.5%
Questar Corp.		28,300		1,287,367
General Merchandise Stores–1.9%
Target Corp.		32,220		1,584,257
Health Care Equipment–1.0%
Stryker Corp.		17,407		871,394
Household Appliances–2.3%
Snap-On, Inc.		18,313		749,185
Whirlpool Corp.(c)		13,330		1,170,640
				1,919,825
Household Products–3.5%
Kimberly-Clark Corp.		36,371		2,205,174
Procter & Gamble Co. (The)		11,582		694,688
				2,899,862
Industrial Machinery–1.2%
Pentair, Inc.		32,206		1,037,033
Insurance Brokers–1.2%
Marsh & McLennan Cos., Inc.		45,771		1,032,136
Integrated Oil & Gas–5.5%
Chevron Corp.		26,230		1,779,968
Exxon Mobil Corp.		25,281		1,442,787
Marathon Oil Corp.		43,370		1,348,373
				4,571,128
Integrated Telecommunication Services–1.7%
AT&T, Inc.		58,046		1,404,133
Leisure Products–1.9%
Mattel, Inc.		75,980		1,607,737
Life & Health Insurance–1.7%
MetLife, Inc.		37,292		1,408,146
Multi-Utilities–3.2%
DTE Energy Co.		26,800		1,222,348
Public Service Enterprise Group, Inc.		45,640		1,429,901
				2,652,249
Office Services & Supplies–1.1%
Pitney Bowes, Inc.		41,400		909,144
Oil & Gas Equipment & Services–1.1%
Baker Hughes, Inc.		21,051		875,090

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Dividend Growth Fund

	Shares		Value
Other Diversified Financial Services–1.6%
JPMorgan Chase & Co.		36,280	$	1,328,211
Paper Products–1.7%
International Paper Co.		63,470		1,436,326
Pharmaceuticals–7.8%
Bristol-Myers Squibb Co.		44,813		1,117,636
Johnson & Johnson		21,993		1,298,906
Merck & Co., Inc.		64,180		2,244,375
Pfizer, Inc.		132,131		1,884,188
				6,545,105
Property & Casualty Insurance–3.0%
ACE Ltd. (Switzerland)		20,860		1,073,873
Travelers Cos., Inc. (The)		29,030		1,429,727
				2,503,600
Railroads–2.2%
CSX Corp.		36,540		1,813,480
Regional Banks–1.2%
SunTrust Banks, Inc.		43,029		1,002,576
Semiconductors–2.4%
Intel Corp.		103,210		2,007,435
Soft Drinks–1.2%
Coca-Cola Co. (The)		20,244		1,014,629
Specialty Chemicals–1.8%
Lubrizol Corp. (The)		18,670		1,499,388
Systems Software–3.8%
Microsoft Corp.		102,073		2,348,700
Oracle Corp.		40,590		871,061
				3,219,761
Thrifts & Mortgage Finance–1.1%
Hudson City Bancorp, Inc.		73,625		901,170
Tobacco–4.4%
Altria Group, Inc.		69,659		1,395,966
Philip Morris International, Inc.		50,179		2,300,206
				3,696,172
Total Common Stocks & Other Equity Interests (Cost $79,253,385)				77,143,959
Money Market Funds–1.6%
Liquid Assets Portfolio–Institutional Class(d)		654,015		654,015
Premier Portfolio–Institutional Class(d)		654,015		654,015
Total Money Market Funds (Cost $1,308,030)				1,308,030
TOTAL INVESTMENTS (Cost $80,561,415)–93.7%				78,451,989
OTHER ASSETS IN EXCESS OF LIABILITIES–6.3%				5,304,363
NET ASSETS–100.0%			$	83,756,352

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	A portion of this security is subject to call options written. See Note 1L and Note 4.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Information Technology	15.0	%
Financials	13.9
Consumer Discretionary	13.4
Industrials	12.1
Consumer Staples	11.5
Health Care	8.8
Energy	6.5
Utilities	5.7
Materials	3.5
Telecommunication Services	1.7
Money Market Funds Plus Other Assets Less Liabilities	7.9

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Common Stocks & Other Equity Interests–99.7%
Advertising–0.4%
Interpublic Group of Cos., Inc.(b)		23,161	$	165,138
Omnicom Group, Inc.		5,083		174,347
				339,485
Aerospace & Defense–2.4%
Boeing Co. (The)		2,834		177,833
General Dynamics Corp.		2,879		168,594
Goodrich Corp.		2,697		178,676
Honeywell International, Inc.		4,489		175,206
ITT Corp.		3,974		178,512
L-3 Communications Holdings, Inc.		2,360		167,182
Lockheed Martin Corp.		2,387		177,832
Northrop Grumman Corp.		3,103		168,927
Precision Castparts Corp.		1,678		172,700
Raytheon Co.		3,617		175,027
Rockwell Collins, Inc.		3,289		174,745
United Technologies Corp.		2,784		180,709
				2,095,943
Agricultural Products–0.2%
Archer-Daniels-Midland Co.(c)		7,086		182,961
Air Freight & Logistics–0.8%
C.H. Robinson Worldwide, Inc.		3,261		181,507
Expeditors International of Washington, Inc.		4,989		172,170
FedEx Corp.		2,447		171,559
United Parcel Service, Inc. (Class B)		3,094		176,018
				701,254
Airlines–0.2%
Southwest Airlines Co.		15,717		174,616
Aluminum–0.2%
Alcoa, Inc.		17,344		174,481
Apparel Retail–1.2%
Abercrombie & Fitch Co. (Class A)		5,453		167,353
Gap, Inc. (The)		9,072		176,541
Limited Brands, Inc.		7,814		172,455
Ross Stores, Inc.		3,361		179,108
TJX Cos., Inc.		4,192		175,854
Urban Outfitters, Inc.(b)		5,274		181,373
				1,052,684
Apparel, Accessories & Luxury Goods–0.6%
Coach, Inc.		4,469		163,342
Polo Ralph Lauren Corp.		2,394		174,666
VF Corp.		2,433		173,181
				511,189
Application Software–1.1%
Adobe Systems, Inc.(b)		5,748		151,920
Autodesk, Inc.(b)		6,618		161,214
Citrix Systems, Inc.(b)		4,180		176,521
Compuware Corp.(b)		22,226		177,364
Intuit, Inc.(b)		5,131		178,405
Salesforce.com, Inc.(b)		2,012		172,670
				1,018,094
Asset Management & Custody Banks–2.0%
Ameriprise Financial, Inc.		4,846		175,086
Bank of New York Mellon Corp. (The)		7,248		178,953
Federated Investors, Inc. (Class B)		8,699		180,156
Franklin Resources, Inc.		2,064		177,896
Invesco Ltd.		10,018		168,603
Janus Capital Group, Inc.		18,855		167,432
Legg Mason, Inc.		6,021		168,769
Northern Trust Corp.		3,831		178,908
State Street Corp.		5,179		175,154
T. Rowe Price Group, Inc.		3,905		173,343
				1,744,300
Auto Parts & Equipment–0.2%
Johnson Controls, Inc.		6,674		179,330
Automobile Manufacturers–0.2%
Ford Motor Co.(b)		16,814		169,485
Automotive Retail–0.6%
AutoNation, Inc.(b)		9,097		177,391
AutoZone, Inc.(b)		986		190,515
O’Reilly Automotive, Inc.(b)		3,859		183,534
				551,440
Biotechnology–1.2%
Amgen, Inc.(b)		3,496		183,889
Biogen Idec, Inc.(b)		3,864		183,347
Celgene Corp.(b)		3,480		176,854
Cephalon, Inc.(b)		3,217		182,565
Genzyme Corp.(b)		3,648		185,209
Gilead Sciences, Inc.(b)		5,353		183,501
				1,095,365

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Brewers–0.2%
Molson Coors Brewing Co. (Class B)		4,318	$	182,910
Broadcasting–0.4%
CBS Corp. (Class B)		12,906		166,874
Discovery Communications, Inc. (Class A)(b)		4,908		175,265
				342,139
Building Products–0.2%
Masco Corp.		15,641		168,297
Cable & Satellite–0.8%
Comcast Corp. (Class A)		10,409		180,804
DirecTV (Class A)(b)		5,147		174,586
Scripps Networks Interactive, Inc. (Class A)		4,251		171,485
Time Warner Cable, Inc.		3,492		181,864
				708,739
Casinos & Gaming–0.4%
International Game Technology		10,500		164,850
Wynn Resorts Ltd.		2,265		172,752
				337,602
Coal & Consumable Fuels–0.6%
Consol Energy, Inc.		4,926		166,302
Massey Energy Co.		6,155		168,339
Peabody Energy Corp.		4,670		182,737
				517,378
Commercial Printing–0.2%
RR Donnelley & Sons Co.		10,587		173,309
Communications Equipment–1.5%
Cisco Systems, Inc.(b)		8,203		174,806
Corning, Inc.		10,569		170,689
Harris Corp.		3,973		165,475
JDS Uniphase Corp.(b)		16,583		163,177
Juniper Networks, Inc.(b)		7,556		172,428
Motorola, Inc.(b)		26,542		173,054
QUALCOMM, Inc.		5,398		177,270
Tellabs, Inc.		27,646		176,658
				1,373,557
Computer & Electronics Retail–0.6%
Best Buy Co., Inc.		5,093		172,449
GameStop Corp. (Class A)(b)		10,030		188,464
RadioShack Corp.		8,730		170,322
				531,235
Computer Hardware–1.0%
Apple, Inc.(b)		702		176,574
Dell, Inc.(b)		13,693		165,138
Hewlett-Packard Co.		4,016		173,812
International Business Machines Corp.		1,480		182,750
Teradata Corp.(b)		5,670		172,822
				871,096
Computer Storage & Peripherals–1.2%
EMC Corp.(b)		9,958		182,231
Lexmark International, Inc.(b)		5,036		166,339
NetApp, Inc.(b)		4,674		174,387
QLogic Corp.(b)		10,657		177,119
SanDisk Corp.(b)		3,931		165,377
Western Digital Corp.(b)		5,503		165,971
				1,031,424
Construction & Engineering–0.6%
Fluor Corp.		4,146		176,205
Jacobs Engineering Group, Inc.(b)		4,621		168,389
Quanta Services, Inc.(b)		8,433		174,142
				518,736
Construction & Farm Machinery & Heavy Trucks–0.8%
Caterpillar, Inc.		2,925		175,705
Cummins, Inc.		2,592		168,817
Deere & Co.		3,250		180,960
PACCAR, Inc.		4,414		175,986
				701,468
Construction Materials–0.2%
Vulcan Materials Co.		4,054		177,687
Consumer Electronics–0.2%
Harman International Industries, Inc.(b)		5,634		168,400
Consumer Finance–0.8%
American Express Co.		4,584		181,985
Capital One Financial Corp.		4,519		182,116
Discover Financial Services		13,763		192,407
SLM Corp.(b)		16,165		167,954
				724,462
Data Processing & Outsourced Services–1.8%
Automatic Data Processing, Inc.		4,548		183,103
Computer Sciences Corp.		3,813		172,538
Fidelity National Information Services, Inc.		7,011		188,035
Fiserv, Inc.(b)		3,942		179,992
Mastercard, Inc. (Class A)		899		179,377

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Data Processing & Outsourced Services–(continued)
Paychex, Inc.		6,801	$	176,622
Total System Services, Inc.		12,976		176,474
Visa, Inc. (Class A)		2,500		176,875
Western Union Co. (The)		11,895		177,354
				1,610,370
Department Stores–0.9%
JC Penney Co., Inc.		7,365		158,200
Kohl’s Corp.(b)		3,655		173,613
Macy’s, Inc.		8,979		160,724
Nordstrom, Inc.		4,984		160,435
Sears Holdings Corp.(b)		2,539		164,146
				817,118
Distillers & Vintners–0.4%
Brown-Forman Corp. (Class B)		3,239		185,368
Constellation Brands, Inc.(b)		11,822		184,660
				370,028
Distributors–0.2%
Genuine Parts Co.		4,623		182,377
Diversified REIT’s–0.2%
Vornado Realty Trust		2,426		176,977
Diversified Banks–0.6%
Comerica, Inc.		4,891		180,136
US Bancorp		8,175		182,711
Wells Fargo & Co.		6,864		175,718
				538,565
Diversified Chemicals–1.0%
Dow Chemical Co. (The)		7,136		169,266
Eastman Chemical Co.		3,074		164,029
EI Du Pont de Nemours & Co.		5,023		173,746
FMC Corp.		3,085		177,171
PPG Industries, Inc.		2,888		174,464
				858,676
Diversified Metals & Mining–0.4%
Freeport-McMoRan Copper & Gold, Inc.		2,923		172,837
Titanium Metals Corp.(b)		9,634		169,462
				342,299
Diversified Support Services–0.4%
Cintas Corp.		7,383		176,971
Iron Mountain, Inc.		7,916		177,793
				354,764
Drug Retail–0.4%
CVS Caremark Corp.		5,941		174,190
Walgreen Co.		6,403		170,960
				345,150
Education Services–0.4%
Apollo Group, Inc. (Class A)(b)		3,982		169,116
DeVry, Inc.		3,366		176,681
				345,797
Electric Utilities–2.9%
Allegheny Energy, Inc.		8,647		178,820
American Electric Power Co., Inc.		5,657		182,721
Duke Energy Corp.		11,580		185,280
Edison International		5,609		177,917
Entergy Corp.		2,466		176,615
Exelon Corp.		4,672		177,396
FirstEnergy Corp.		5,008		176,432
NextEra Energy, Inc.		3,668		178,852
Northeast Utilities		7,170		182,692
Pepco Holdings, Inc.		11,511		180,493
Pinnacle West Capital Corp.		5,120		186,163
PPL Corp.		7,394		184,480
Progress Energy, Inc.		4,776		187,315
Southern Co.		5,648		187,965
				2,543,141
Electrical Components & Equipment–0.6%
Emerson Electric Co.		4,059		177,338
First Solar, Inc.(b)		1,557		177,233
Rockwell Automation, Inc.		3,578		175,644
				530,215
Electronic Components–0.2%
Amphenol Corp. (Class A)		4,519		177,506
Electronic Equipment & Instruments–0.4%
Agilent Technologies, Inc.(b)		5,908		167,965
FLIR Systems, Inc.(b)		6,680		194,321
				362,286
Electronic Manufacturing Services–0.4%
Jabil Circuit, Inc.		13,803		183,580
Molex, Inc.		9,286		169,377
				352,957

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Environmental & Facilities Services–0.6%
Republic Services, Inc.		6,113	$	181,740
Stericycle, Inc.(b)		2,943		193,002
Waste Management, Inc.		5,746		179,792
				554,534
Fertilizers & Agricultural Chemicals–0.4%
CF Industries Holdings, Inc.		2,998		190,223
Monsanto Co.		3,824		176,745
				366,968
Food Distributors–0.2%
Sysco Corp.		6,193		176,934
Food Retail–0.8%
Kroger Co. (The)		9,605		189,122
Safeway, Inc.		9,250		181,855
SUPERVALU, Inc.		14,984		162,427
Whole Foods Market, Inc.(b)		4,774		171,960
				705,364
Footwear–0.2%
NIKE, Inc. (Class B)		2,570		173,604
Forest Products–0.2%
Weyerhaeuser Co.		4,909		172,797
Gas Utilities–0.6%
EQT Corp.		4,703		169,966
Nicor, Inc.		4,487		181,724
Questar Corp.		3,886		176,820
				528,510
General Merchandise Stores–0.6%
Big Lots, Inc.(b)		5,556		178,292
Family Dollar Stores, Inc.		4,890		184,304
Target Corp.		3,589		176,471
				539,067
Gold–0.2%
Newmont Mining Corp.		3,145		194,172
Health Care Services–1.2%
Cerner Corp(b)		2,389		181,301
DaVita, Inc.(b)		2,891		180,514
Express Scripts, Inc.(b)		3,704		174,162
Laboratory Corp. of America Holdings(b)		2,400		180,840
Medco Health Solutions, Inc.(b)		3,208		176,697
Quest Diagnostics, Inc.		3,628		180,566
				1,074,080
Health Care Distributors–0.8%
AmerisourceBergen Corp.		5,917		187,865
Cardinal Health, Inc.		5,376		180,687
McKesson Corp.		2,748		184,556
Patterson Cos., Inc.		6,266		178,769
				731,877
Health Care Equipment–2.5%
Baxter International, Inc.		4,586		186,375
Becton Dickinson and Co.		2,701		182,642
Boston Scientific Corp.(b)		30,442		176,564
C.R. Bard, Inc.		2,399		185,994
CareFusion Corp.(b)		7,807		177,219
Hospira, Inc.(b)		3,416		196,249
Intuitive Surgical, Inc.(b)		550		173,591
Medtronic, Inc.		4,957		179,790
St Jude Medical, Inc.(b)		5,153		185,972
Stryker Corp.		3,720		186,223
Varian Medical Systems, Inc.(b)		3,621		189,306
Zimmer Holdings, Inc.(b)		3,499		189,121
				2,209,046
Health Care Facilities–0.2%
Tenet Healthcare Corp.(b)		39,326		170,675
Health Care Supplies–0.2%
DENTSPLY International, Inc.		6,074		181,673
Home Entertainment Software–0.2%
Electronic Arts, Inc.(b)		12,021		173,102
Home Furnishings–0.2%
Leggett & Platt, Inc.		8,560		171,714
Home Improvement Retail–0.6%
Home Depot, Inc.		6,032		169,318
Lowe’s Cos., Inc.		8,518		173,938
Sherwin-Williams Co. (The)		2,528		174,912
				518,168
Homebuilding–0.6%
DR Horton, Inc.		17,924		176,193
Lennar Corp. (Class A)		13,072		181,832
Pulte Group, Inc.(b)		20,587		170,460
				528,485
Homefurnishing Retail–0.2%
Bed Bath & Beyond, Inc.(b)		4,530		167,972

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Hotels, Resorts & Cruise Lines–0.7%
Carnival Corp. (Units)		5,417	$	163,810
Marriott International, Inc. (Class A)		5,458		163,412
Starwood Hotels & Resorts Worldwide, Inc.		3,990		165,306
Wyndham Worldwide Corp.		7,962		160,355
				652,883
Household Appliances–0.6%
Snap-On, Inc.		4,402		180,086
Stanley Black & Decker, Inc.		3,440		173,789
Whirlpool Corp.		1,906		167,385
				521,260
Household Products–0.8%
Clorox Co.		2,960		183,994
Colgate-Palmolive Co.		2,390		188,236
Kimberly-Clark Corp.		3,068		186,013
Procter & Gamble Co. (The)		3,142		188,457
				746,700
Housewares & Specialties–0.4%
Fortune Brands, Inc.		4,267		167,181
Newell Rubbermaid, Inc.		11,342		166,047
				333,228
Human Resource & Employment Services–0.4%
Monster Worldwide, Inc.(b)		14,564		169,671
Robert Half International, Inc.		7,795		183,572
				353,243
Hypermarkets & Super Centers–0.4%
Costco Wholesale Corp.		3,304		181,158
Wal-Mart Stores, Inc.		3,738		179,686
				360,844
Independent Power Producers & Energy Traders–0.6%
AES Corp. (The)(b)		18,334		169,406
Constellation Energy Group, Inc.		5,258		169,570
NRG Energy, Inc.(b)		8,151		172,883
				511,859
Industrial Conglomerates–0.6%
3M Co.		2,373		187,443
General Electric Co.(c)		12,081		174,208
Textron, Inc.		9,620		163,252
				524,903
Industrial Gases–0.4%
Air Products & Chemicals, Inc.		2,692		174,469
Praxair, Inc.		2,373		180,324
				354,793
Industrial Machinery–1.6%
Danaher Corp.		4,733		175,689
Dover Corp.		4,223		176,479
Eaton Corp.		2,601		170,209
Flowserve Corp.		2,036		172,653
Illinois Tool Works, Inc.		4,257		175,729
Pall Corp.		5,172		177,762
Parker Hannifin Corp.		3,165		175,531
Roper Industries, Inc.		3,178		177,841
				1,401,893
Industrial REIT’s–0.2%
ProLogis		16,698		169,151
Insurance Brokers–0.4%
AON Corp.		4,858		180,329
Marsh & McLennan Cos., Inc.		8,327		187,774
				368,103
Integrated Oil & Gas–1.4%
Chevron Corp.		2,538		172,229
ConocoPhillips		3,439		168,820
Exxon Mobil Corp.		3,053		174,235
Hess Corp.		3,429		172,616
Marathon Oil Corp.		5,702		177,275
Murphy Oil Corp.		3,449		170,898
Occidental Petroleum Corp.		2,214		170,810
				1,206,883
Integrated Telecommunication Services–1.2%
AT&T, Inc.		7,577		183,288
CenturyTel, Inc.		5,510		183,538
Frontier Communications Corp.		24,610		174,977
Qwest Communications International, Inc.		35,685		187,346
Verizon Communications, Inc.		6,614		185,324
Windstream Corp.		17,007		179,594
				1,094,067
Internet Retail–0.6%
Amazon.com, Inc.(b)		1,531		167,277
Expedia, Inc.		9,188		172,551
Priceline.com, Inc.(b)		993		175,304
				515,132

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Internet Software & Services–1.0%
Akamai Technologies, Inc.(b)		4,214	$	170,962
eBay, Inc.(b)		8,695		170,509
Google, Inc. (Class A)(b)		384		170,861
VeriSign, Inc.(b)		6,555		174,035
Yahoo!, Inc.(b)		12,439		172,031
				858,398
Investment Banking & Brokerage–0.8%
Charles Schwab Corp. (The)		12,472		176,853
E*Trade Financial Corp.(b)		13,932		164,676
Goldman Sachs Group, Inc. (The)		1,394		182,990
Morgan Stanley		7,498		174,029
				698,548
IT Consulting & Other Services–0.4%
Cognizant Technology Solutions Corp. (Class A)(b)		3,596		180,016
SAIC, Inc.(b)		10,710		179,285
				359,301
Leisure Products–0.4%
Hasbro, Inc.		4,493		184,663
Mattel, Inc.		8,564		181,214
				365,877
Life & Health Insurance–1.4%
Aflac, Inc.		4,339		185,145
Lincoln National Corp.		6,928		168,281
MetLife, Inc.		4,700		177,472
Principal Financial Group, Inc.		7,312		171,393
Prudential Financial, Inc.		3,262		175,039
Torchmark Corp.		3,644		180,415
Unum Group		8,172		177,332
				1,235,077
Life Sciences Tools & Services–1.0%
Life Technologies Corp.(b)		3,735		176,479
Millipore Corp.(b)		1,800		191,970
PerkinElmer, Inc.		8,481		175,302
Thermo Fisher Scientific, Inc.(b)		3,590		176,090
Waters Corp.(b)		2,686		173,784
				893,625
Managed Health Care–1.2%
Aetna, Inc.		6,331		167,012
CIGNA Corp.		5,472		169,960
Coventry Health Care, Inc.(b)		9,459		167,235
Humana, Inc.(b)		3,912		178,661
UnitedHealth Group, Inc.		6,150		174,660
WellPoint, Inc.(b)		3,488		170,668
				1,028,196
Metal & Glass Containers–0.6%
Ball Corp.		3,493		184,535
Owens-Illinois, Inc.(b)		6,375		168,619
Pactiv Corp.(b)		6,518		181,526
				534,680
Motorcycle Manufacturers–0.2%
Harley-Davidson, Inc.		7,186		159,745
Movies & Entertainment–0.8%
News Corp. (Class A)		13,787		164,893
Time Warner, Inc.		5,845		168,979
Viacom, Inc. (Class B)		5,411		169,743
Walt Disney Co. (The)		5,481		172,651
				676,266
Multi-line Insurance–1.0%
American International Group, Inc.(b)		5,082		175,024
Assurant, Inc.		5,200		180,440
Genworth Financial, Inc. (Class A)(b)		12,611		164,826
Hartford Financial Services Group, Inc.		7,671		169,759
Loews Corp.		5,683		189,301
				879,350
Multi-Sector Holdings–0.2%
Leucadia National Corp.(b)		8,916		173,951
Multi-Utilities–3.3%
Ameren Corp.		7,545		179,345
Centerpoint Energy, Inc.		13,753		180,990
CMS Energy Corp.		12,400		181,660
Consolidated Edison, Inc.		4,292		184,985
Dominion Resources, Inc.		4,587		177,700
DTE Energy Co.		3,985		181,756
Integrys Energy Group, Inc.		4,106		179,597
NiSource, Inc.		12,400		179,800
Oneok, Inc.		4,099		177,282
PG&E Corp.		4,462		183,388
Public Service Enterprise Group, Inc.		5,731		179,552
SCANA Corp.		5,123		183,199
Sempra Energy		3,846		179,954
TECO Energy, Inc.		11,902		179,363

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Multi-Utilities–(continued)
Wisconsin Energy Corp.		3,710	$	188,245
Xcel Energy, Inc.		8,933		184,109
				2,900,925
Office Electronics–0.2%
Xerox Corp.		20,434		164,289
Office REIT’s–0.2%
Boston Properties, Inc.		2,405		171,573
Office Services & Supplies–0.4%
Avery Dennison Corp.		5,475		175,912
Pitney Bowes, Inc.		8,301		182,290
				358,202
Oil & Gas Drilling–0.8%
Diamond Offshore Drilling, Inc.		3,016		187,565
Helmerich & Payne, Inc.		4,532		165,509
Nabors Industries Ltd. (Bermuda)		8,958		157,840
Rowan Cos., Inc.(b)		7,628		167,358
				678,272
Oil & Gas Equipment & Services–1.4%
Baker Hughes, Inc.		4,313		179,291
Cameron International Corp.(b)		5,074		165,007
FMC Technologies, Inc.(b)		3,493		183,941
Halliburton Co.		7,141		175,312
National Oilwell Varco, Inc.		5,057		167,235
Schlumberger Ltd. (Netherlands Antilles)		3,182		176,092
Smith International, Inc.		4,679		176,164
				1,223,042
Oil & Gas Exploration & Production–2.1%
Anadarko Petroleum Corp.		4,526		163,343
Apache Corp.		1,974		166,191
Cabot Oil & Gas Corp.		5,260		164,743
Chesapeake Energy Corp.		7,830		164,039
Denbury Resources, Inc.(b)		11,023		161,377
Devon Energy Corp.		2,755		167,835
EOG Resources, Inc.		1,747		171,852
Noble Energy, Inc.		2,919		176,103
Pioneer Natural Resources Co.		2,688		159,802
QEP Resources		1,904		58,700
Range Resources Corp.		3,941		158,231
Southwestern Energy Co.(b)		4,371		168,896
				1,881,112
Oil & Gas Refining & Marketing–0.6%
Sunoco, Inc.		5,503		191,339
Tesoro Corp.		15,666		182,822
Valero Energy Corp.		10,710		192,566
				566,727
Oil & Gas Storage & Transportation–0.6%
El Paso Corp.		15,197		168,839
Spectra Energy Corp.		8,883		178,282
Williams Cos., Inc. (The)		8,995		164,428
				511,549
Other Diversified Financial Services–0.6%
Bank of America Corp.		12,209		175,443
Citigroup, Inc.(b)		48,055		180,687
JPMorgan Chase & Co.		4,918		180,048
				536,178
Packaged Foods & Meats–2.9%
Campbell Soup Co.		5,186		185,814
ConAgra Foods, Inc.		7,717		179,960
Dean Foods Co.(b)		17,842		179,669
General Mills, Inc.		4,999		177,565
Hershey Co. (The)		3,837		183,907
HJ Heinz Co.		4,166		180,055
Hormel Foods Corp.		4,556		184,427
JM Smucker Co. (The)		3,102		186,802
Kellogg Co.		3,536		177,861
Kraft Foods, Inc. (Class A)		6,400		179,200
McCormick & Co., Inc.		4,753		180,424
Mead Johnson Nutrition Co.		3,542		177,525
Sara Lee Corp.		13,037		183,822
Tyson Foods, Inc. (Class A)		10,517		172,374
				2,529,405
Paper Packaging–0.4%
Bemis Co., Inc.		6,564		177,228
Sealed Air Corp.		8,954		176,573
				353,801
Paper Products–0.4%
International Paper Co.		7,489		169,476
MeadWestvaco Corp.		7,916		175,735
				345,211

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Personal Products–0.4%
Avon Products, Inc.		6,704	$	177,656
Estee Lauder Cos., Inc. (The) (Class A)		3,214		179,116
				356,772
Pharmaceuticals–2.3%
Abbott Laboratories		3,951		184,828
Allergan, Inc.		3,160		184,102
Bristol-Myers Squibb Co.		7,474		186,402
Eli Lilly & Co.		5,567		186,494
Forest Laboratories, Inc.(b)		7,057		193,574
Johnson & Johnson		3,255		192,240
King Pharmaceuticals, Inc.(b)		23,673		179,678
Merck & Co., Inc.		5,390		188,488
Mylan, Inc.(b)		10,342		176,228
Pfizer, Inc.		12,669		180,660
Watson Pharmaceuticals, Inc.(b)		4,378		177,615
				2,030,309
Photographic Products–0.2%
Eastman Kodak Co.(b)		36,018		156,318
Property & Casualty Insurance–1.4%
Allstate Corp. (The)		6,309		181,257
Berkshire Hathaway, Inc. (Class B)(b)		2,410		192,053
Chubb Corp.		3,636		181,836
Cincinnati Financial Corp.		6,810		176,175
Progressive Corp. (The)		9,562		179,001
Travelers Cos., Inc. (The)		3,752		184,786
XL Capital Ltd. (Class A) (Cayman Islands)		10,710		171,467
				1,266,575
Publishing–1.0%
Gannett Co., Inc.		11,573		155,773
McGraw-Hill Cos., Inc. (The)		6,401		180,124
Meredith Corp.		5,450		169,658
New York Times Co. (The) (Class A)(b)		19,703		170,431
Washington Post Co. (The) (Class B)		420		172,402
				848,388
Railroads–0.6%
CSX Corp.		3,505		173,953
Norfolk Southern Corp.		3,260		172,943
Union Pacific Corp.		2,522		175,304
				522,200
Real Estate Services–0.2%
CB Richard Ellis Group, Inc. (Class A)(b)		12,384		168,546
Regional Banks–2.2%
BB&T Corp.		6,542		172,120
Fifth Third Bancorp		14,189		174,383
First Horizon National Corp.(b)		16,072		184,024
Huntington Bancshares, Inc.		31,851		176,455
KeyCorp		23,022		177,039
M&T Bank Corp.		2,123		180,349
Marshall & Ilsley Corp.		24,491		175,845
PNC Financial Services Group, Inc.		3,068		173,342
Regions Financial Corp.		26,951		177,338
SunTrust Banks, Inc.		7,354		171,348
Zions BanCorp.		8,035		173,315
				1,935,558
Research & Consulting Services–0.4%
Dun & Bradstreet Corp.		2,630		176,526
Equifax, Inc.		6,357		178,377
				354,903
Residential REIT’s–0.6%
Apartment Investment & Management Co.		8,660		167,744
AvalonBay Communities, Inc.		1,860		173,668
Equity Residential		4,211		175,346
				516,758
Restaurants–0.8%
Darden Restaurants, Inc.		4,332		168,298
McDonald’s Corp.		2,756		181,538
Starbucks Corp.		6,852		166,504
Yum! Brands, Inc.		4,535		177,046
				693,386
Retail REIT’s–0.4%
Kimco Realty Corp.		12,702		170,715
Simon Property Group, Inc.		2,154		173,935
				344,650
Semiconductor Equipment–0.9%
Applied Materials, Inc.		14,444		173,617
KLA-Tencor Corp.		6,255		174,389
MEMC Electronic Materials, Inc.(b)		16,385		161,884
Novellus Systems, Inc.(b)		6,774		171,789
Teradyne, Inc.(b)		16,330		159,217
				840,896
Semiconductors–2.5%
Advanced Micro Devices, Inc.(b)		21,822		159,737
Altera Corp.		7,423		184,165
Analog Devices, Inc.		6,313		175,880

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Semiconductors–(continued)
Broadcom Corp. (Class A)		5,441	$	179,390
Intel Corp.		9,000		175,050
Linear Technology Corp.		6,529		181,572
LSI Corp.(b)		36,565		168,199
Microchip Technology, Inc.		6,487		179,949
Micron Technology, Inc.(b)		19,270		163,602
National Semiconductor Corp.		13,081		176,070
Nvidia Corp.(b)		15,666		159,950
Texas Instruments, Inc.		7,571		176,253
Xilinx, Inc.		7,189		181,594
				2,261,411
Soft Drinks–0.8%
Coca-Cola Co. (The)		3,682		184,542
Coca-Cola Enterprises, Inc.		7,125		184,252
Dr Pepper Snapple Group, Inc.		5,076		189,792
PepsiCo, Inc.		3,006		183,216
				741,802
Specialized Consumer Services–0.2%
H&R Block, Inc.		12,196		191,355
Specialized Finance–1.0%
CME Group, Inc.		627		176,532
IntercontinentalExchange, Inc.(b)		1,576		178,135
Moody’s Corp.		9,132		181,909
NASDAQ OMX Group, Inc. (The)(b)		10,051		178,707
NYSE Euronext		6,457		178,407
				893,690
Specialized REIT’s–1.2%
HCP, Inc.		5,888		189,888
Health Care REIT, Inc.		4,446		187,265
Host Hotels & Resorts, Inc.		12,424		167,476
Plum Creek Timber Co., Inc.		5,165		178,347
Public Storage		2,053		180,479
Ventas, Inc.		3,889		182,589
				1,086,044
Specialty Chemicals–0.8%
Airgas, Inc.		3,021		187,906
Ecolab, Inc.		4,099		184,086
International Flavors & Fragrances, Inc.		4,146		175,874
Sigma-Aldrich Corp.		3,617		180,235
				728,101
Specialty Stores–0.7%
CarMax, Inc.(b)		8,438		167,916
Office Depot, Inc.(b)		37,201		150,292
Staples, Inc.		8,766		166,992
Tiffany & Co.		4,336		164,378
				649,578
Steel–0.9%
AK Steel Holding Corp.		13,862		165,235
Allegheny Technologies, Inc.		3,700		163,503
Cliffs Natural Resources, Inc.		3,426		161,570
Nucor Corp.		4,644		177,772
United States Steel Corp.		4,438		171,085
				839,165
Systems Software–1.6%
BMC Software, Inc.(b)		5,102		176,682
CA, Inc.		9,581		176,290
McAfee, Inc.(b)		5,853		179,804
Microsoft Corp.(c)		7,287		167,674
Novell, Inc.(b)		31,486		178,841
Oracle Corp.		8,305		178,225
Red Hat, Inc.(b)		6,036		174,682
Symantec Corp.(b)		12,710		176,415
				1,408,613
Thrifts & Mortgage Finance–0.4%
Hudson City Bancorp, Inc.		14,401		176,268
People’s United Financial, Inc.		13,252		178,902
				355,170
Tires & Rubber–0.2%
Goodyear Tire & Rubber Co. (The)(b)		16,071		159,746
Tobacco–0.9%
Altria Group, Inc.		9,624		192,865
Lorillard, Inc.		2,569		184,917
Philip Morris International, Inc.		4,197		192,390
Reynolds American, Inc.		3,651		190,290
				760,462
Trading Companies & Distributors–0.4%
Fastenal Co.		3,523		176,819
WW Grainger, Inc.		1,779		176,922
				353,741
Trucking–0.2%
Ryder System, Inc.		4,331		174,236

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Wireless Telecommunication Services–0.6%
American Tower Corp. (Class A)(b)		4,275	$	190,237
MetroPCS Communications, Inc.(b)		21,152		173,235
Sprint Nextel Corp.(b)		41,982		178,004
				541,476
Total Common Stocks & Other Equity Interests (Cost $57,073,704)				88,144,125
Money Market Funds–0.4%
Liquid Assets Portfolio–Institutional Class(d)		184,825		184,825
Premier Portfolio–Institutional Class(d)		184,825		184,825
Total Money Market Funds (Cost $369,650)				369,650
TOTAL INVESTMENTS (Cost $57,443,354)–100.1%				88,513,775
LIABILITIES IN EXCESS OF OTHER ASSETS–(0.1)%				(67,682	)
NET ASSETS–100.0%			$	88,446,093

Investment Abbreviations

REIT – Real Estate Investment Trust.

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1K and Note 4.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Consumer Discretionary	15.9	%
Financials	15.8
Information Technology	14.8
Industrials	11.3
Health Care	10.7
Consumer Staples	8.4
Energy	7.4
Utilities	7.3
Materials	6.2
Telecommunication Services	1.9
Money Market Funds Plus Other Assets Less Liabilities	0.3

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Statements of Assets and Liabilities

June 30, 2010
(Unaudited)

				Invesco V.I.
	Invesco V.I.			Select			Invesco V.I.
	Select			Dimensions			Select
	Dimensions			Dividend			Dimensions
	Balanced			Growth			Equally-Weighted
	Fund			Fund			S&P 500 Fund
Assets:
Investments, at value*	$	36,301,474		$	77,143,959		$	88,144,125
Investments in affiliated money market funds, at value and cost		688,560			1,308,030			369,650
Total investments, at value		36,990,034			78,451,989			88,513,775
Receivable for:
Investments sold		236,597			22,687,654			1,966,773
Dividends and interest		154,099			179,778			116,196
Variation margin		1,000			—			—
Other assets		5,345			3,649			7,582
Total assets		37,387,075			101,323,070			90,604,326
Liabilities:
Payable for:
Investments purchased		215,486			17,420,356			2,026,133
Fund shares reacquired		18,255			75,163			22,122
Variation margin		—			—			3,645
Accrued fees to affiliates		13,742			27,384			40,009
Accrued other operating expenses		33,308			42,425			66,324
Written options outstanding, at value		—			1,390			—
Total liabilities		280,791			17,566,718			2,158,233
Net assets	$	37,106,284		$	83,756,352		$	88,446,093
Composition of Net Assets:
Shares of beneficial interest	$	40,700,636		$	172,208,424		$	64,306,675
Undistributed net investment income		294,454			614,577			650,027
Undistributed net realized gain (loss)		(2,077,881	)		(86,973,540	)		(7,554,093	)
Net unrealized appreciation (depreciation)		(1,810,925	)		(2,093,109	)		31,043,484
	$	37,106,284		$	83,756,352		$	88,446,093
Net Assets:
Series I	$	22,665,947		$	63,963,408		$	38,230,135
Series II	$	14,440,337		$	19,792,944		$	50,215,958
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		1,888,035			4,883,721			2,566,103
Series II		1,207,381			1,513,636			3,411,864
Series I:
Net asset value per share	$	12.01		$	13.10		$	14.90
Series II:
Net asset value per share	$	11.96		$	13.08		$	14.72
* Cost	$	38,107,313		$	79,253,385		$	57,073,704

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Statements of Operations

For the six months ended June 30, 2010
(Unaudited)

				Invesco V.I.			Invesco V.I.
	Invesco V.I.			Select Dimensions			Select Dimensions
	Select Dimensions			Dividend			Equally-Weighted
	Balanced Fund			Growth Fund			S&P 500 Fund
Investment Income:
Dividends†	$	295,954		$	989,045		$	855,493
Dividends from affiliated money market funds		842			553			397
Interest		201,792			—			—
Total income		498,588			989,598			855,890
†Net of foreign withholding taxes		12,985			—			156
Expenses
Advisory fees		106,793			259,535			59,539
Administrative services fees		25,940			54,599			56,981
Custodian fees		3,904			3,056			11,241
Distribution fees — Series II		19,802			28,057			70,297
Transfer agent fees		250			250			337
Trustees’ and officers’ fees and benefits		1,416			5,808			2,066
Professional services fees		24,724			19,049			17,993
Other		16,477			12,832			9,004
Total expenses		199,306			383,186			227,458
Less: Fees waived		(7,354	)		(8,643	)		(280	)
Net expenses		191,952			374,543			227,178
Net investment income		306,636			615,055			628,712
Net Realized and Unrealized Gain (Loss) from:
Net realized gain (loss) from:
Investment securities (includes gains (losses) from securities sold to affiliates of $(2,924,233))		1,061,185			(1,133,729	)		4,194,020
Futures contracts		12,885			—			(68,269	)
Options written		—			8,822			—
Swap agreements		525			—			—
		1,074,595			(1,124,907	)		4,125,751
Change in unrealized appreciation (depreciation) of:
Investment securities		(2,882,150	)		(5,728,454	)		(7,762,274	)
Foreign currencies		—			7,327			—
Futures contracts		(26,884	)		—			(16,573	)
Options written		—			5,866			—
Swap agreements		(38	)		—			—
		(2,909,072	)		(5,715,261	)		(7,778,847	)
Net realized and unrealized gain (loss)		(1,834,477	)		(6,840,168	)		(3,653,096	)
Net increase (decrease) in net assets resulting from operations	$	(1,527,841	)	$	(6,225,113	)	$	(3,024,384	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Select Dimensions Funds

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

													Invesco V.I.
	Invesco V.I.						Invesco V.I.						Select Dimensions
	Select Dimensions						Select Dimensions						Equally-Weighted
	Balanced Fund						Dividend Growth Fund						S&P 500 Fund
	For The Six			For The Year			For The Six			For The Year			For the Six			For The Year
	Months Ended			Ended			Months Ended			Ended			Months Ended			Ended
	June 30,			December 31,			June 30,			December 31,			June 30,			December 31,
	2010			2009			2010			2009			2010			2009
Operations:
Net investment income	$	306,636		$	730,484		$	615,055		$	1,545,831		$	628,712		$	1,385,144
Net realized gain (loss)		1,074,595			(194,630	)		(1,124,907	)		(8,551,653	)		4,125,751			(7,590,340	)
Change in unrealized appreciation (depreciation)		(2,909,072	)		6,485,933			(5,715,261	)		26,820,219			(7,778,847	)		39,237,550
Net increase (decrease) in net assets resulting from operations		(1,527,841	)		7,021,787			(6,225,113	)		19,814,397			(3,024,384	)		33,032,354
Dividends and Distributions to Shareholders from:
Net investment income
Series I		(509,670	)		(750,282	)		(1,223,469	)		(1,414,595	)		(629,718	)		(960,460	)
Series II		(286,007	)		(437,618	)		(321,049	)		(386,002	)		(710,006	)		(1,118,274	)
Total distributions from net investment income		(795,677	)		(1,187,900	)		(1,544,518	)		(1,800,597	)		(1,339,724	)		(2,078,734	)
Net realized gain
Series I		—			—			—			—			—			(1,537,281	)
Series II		—			—			—			—			—			(2,093,569	)
Total distribution form net realized gains		—			—			—			—			—			(3,630,850	)
Net increase (decrease) in net assets resulting from share transactions		(2,740,398	)		(5,936,768	)		(7,796,669	)		(20,474,343	)		(8,320,497	)		(9,453,683	)
Net increase (decrease) in net assets		(5,063,916	)		(102,881	)		(15,566,300	)		(2,460,543	)		(12,684,605	)		17,869,087
Net Assets:
Beginning of period		42,170,200			42,273,081			99,322,652			101,783,195			101,130,698			83,261,611
End of period	$	37,106,284		$	42,170,200		$	83,756,352		$	99,322,652		$	88,446,093		$	101,130,698
Undistributed net investment income	$	294,454		$	783,495		$	614,577		$	1,544,040		$	650,027		$	1,361,039

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance Funds, (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 forty-one separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The Funds covered in this report are Invesco V.I. Select Dimensions Balanced Fund, Invesco V.I. Select Dimensions Dividend Growth Fund and Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund (each “Fund” or collectively, the “Funds”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to each Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, Morgan Stanley Select Dimensions Balanced Portfolio, Morgan Stanley Select Dimensions Dividend Growth Portfolio and Morgan Stanley Select Dimensions Equally-Weighted S&P 500 Portfolio (each “Acquired Fund”) operated as a separate portfolio of Morgan Stanley Select Dimensions Investment Series. Each Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to each Fund (the “Reorganization”).

Invesco V.I. Select Dimensions Funds

  Upon closing of the Reorganization, holders of each Acquired Fund’s Class X and Class Y shares received Series I and Series II shares, respectively of each corresponding Fund.

  Information for each Acquired Fund’s — Class X and Class Y shares prior to the Reorganization are included with Series I and Series II shares, respectively, of each corresponding Fund throughout this report.

  The investment objective’s: to provide capital growth with reasonable current income for Invesco V.I. Select Dimensions Balanced Fund; to provide reasonable current income and long-term growth of income and capital for Invesco V.I. Select Dimensions Dividend Growth Fund; and to achieve a high level of total return on its assets through a combination of capital appreciation and current income for Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.

Invesco V.I. Select Dimensions Funds

	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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, which is generally 45 days from the period-end date.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Select Dimensions Funds

K.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
L.	Call Options Written — The Fund may write call options. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. Written call options are recorded as a liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized gains and losses on these contracts are included in the Statement of Operations. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
M.	Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk.
	Interest rate, total return, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
	A CDS is an agreement between two parties (“Counterparties”) to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement.
	Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
	Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the

Invesco V.I. Select Dimensions Funds

	possibility that a swap is difficult to sell or liquidate; the counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations.
N.	Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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, each Fund pays an advisory fee to the Adviser based on the annual rate of such Fund’s average daily net assets as follows:

Invesco V.I. Select Dimensions Balanced Fund

Average Net Assets	Rate
First $500 million		0	.52%
Over $500 million		0	.495%

Invesco V.I. Select Dimensions Dividend Growth Fund

Average Net Assets	Rate
First $250 million		0	.545%
Next $750 million		0	.42%
Next $1 billion		0	.395%
Over $2 billion		0	.37%

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

Average Net Assets	Rate
First $2 billion		0	.12%
Over $2 billion		0	.10%

  Prior to the Reorganization, each Acquired Fund paid an advisory fee to Morgan Stanley Investment Advisors Inc. (“MSIA”) based on the annual rates above of such Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Funds, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to such Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I and Series II shares of each Fund as shown in the following table:

	Series I			Series II
Invesco V.I. Select Dimensions Balanced Fund		0.82	%		1.07	%
Invesco V.I. Select Dimensions Dividend Growth Fund		0.72	%		0.97	%
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		0.37	%		0.62	%

  In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by each Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by such Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by each Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

Invesco V.I. Select Dimensions Funds

  For the six months ended June 30, 2010, the Adviser and MSIA waived the following expenses:

	Paid to		Paid to
	Adviser		MSIA
Invesco V.I. Select Dimensions Balanced Fund	$	6,629	$	725
Invesco V.I. Select Dimensions Dividend Growth Fund		8,056		587
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		—		280

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which each Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to such Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, each Fund for the period ended June 30, 2010, paid Invesco for accounting and fund administrative services and paid insurance companies for services provided as shown in the following table:

					Paid to
	Paid to				insurance
	Invesco		MSSCI		companies
Invesco V.I. Select Dimensions Balanced Fund	$	4,110	$	13,886	$	7,944
Invesco V.I. Select Dimensions Dividend Growth Fund		4,110		32,266		18,223
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		4,110		33,473		19,398

  Prior to the Reorganization, each Acquired Fund paid an administration fee to the Morgan Stanley Services Company, Inc. (“MSSCI”).

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to each Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which each Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to such Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid Morgan Stanley Trust, which served as each Acquired Fund’s transfer agent as shown in the following table:

Invesco V.I. Select Dimensions Balanced Fund	$	206
Invesco V.I. Select Dimensions Dividend Growth Fund		207
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		213

  For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for each Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to such Fund’s Series II shares (the “Plan”). Each Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of such Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of such Fund. Prior to the Reorganization, each Acquired Fund paid distribution fees to Morgan Stanley Distributors Inc. based on the annual rate of 0.25% of such Acquired Fund’s average daily net assets of Class Y shares as shown in the following table:

Invesco V.I. Select Dimensions Balanced Fund	$	16,714
Invesco V.I. Select Dimensions Dividend Growth Fund		23,772
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		59,304

  For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Invesco V.I. Select Dimensions Funds

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 June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between Level 1 and Level 2.

Invesco V.I. Select Dimensions Balanced Fund

	Level 1			Level 2		Level 3		Total
Equity Securities	$	24,062,894		$	522,331	$	—	$	24,585,225
U.S. Treasury Securities		—			6,750,895		—		6,750,895
U.S. Government Sponsored Securities		—			1,440,053		—		1,440,053
Corporate Debt Securities		—			4,057,383		—		4,057,383
Foreign Government Debt Securities		—			156,478		—		156,478
	$	24,062,894		$	12,927,140	$	—	$	36,990,034
Futures*		(5,086	)		—		—		(5,086	)
Total Investments	$	24,057,808		$	12,927,140	$	—	$	36,984,948

*  Unrealized appreciation (depreciation).

Invesco V.I. Select Dimensions Dividend Growth Fund

	Level 1		Level 2		Level 3		Total
Equity Securities	$	77,457,532	$	994,457	$	—	$	78,451,989
Options*		1,390		—		—		1,390
Total Investments	$	77,458,922	$	994,457	$	—	$	78,453,379

*  Unrealized appreciation.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Level 1			Level 2		Level 3		Total
Equity Securities	$	88,513,775		$	—	$	—	$	88,513,775
Futures*		(26,937	)		—		—		(26,937	)
Total Investments	$	88,486,838		$	—	$	—	$	88,486,838

*  Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Value of Derivative Instruments at Period-End

The tables below summarize the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

Invesco V.I. Select Dimensions Balanced Fund

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	6,952	$	(12,038	)

^(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Dividend Growth Fund

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Equity risk
Options written(a)	$	1,390		—

^(a) Values are disclosed on the Statement of Assets and Liabilities under Written options outstanding, at value.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Equity risk
Futures contracts(a)		—	$	(26,937	)

^(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the six months ended June 30, 2010

The tables below summarize the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:

Invesco V.I. Select Dimensions Balanced Fund

	Location of Gain (Loss) on
	Statement of Operations
				Swap
	Futures*			Agreements*
Realized Gain
Credit risk		—		$	525
Interest rate risk	$	12,885			—
Change in Unrealized Appreciation (Depreciation)
Credit risk		—			(38	)
Interest rate risk		(26,884	)		—
Total	$	(13,999	)	$	487

* The average value of futures and swap agreements outstanding during the period was $3,038,309 and $3,205, respectively.

Invesco V.I. Select Dimensions Dividend Growth Fund

	Location of Gain on
	Statement of Operations
	Options*
Realized Gain
Equity risk	$	8,822
Change in Unrealized Appreciation
Equity risk		5,866
Total	$	14,688

* The average value of options outstanding during the period was $2,183.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Location of Gain (Loss) on
	Statement of Operations
	Futures*
Realized Gain (Loss)
Equity risk	$	(68,269	)
Change in Unrealized Appreciation (Depreciation)
Equity risk	$	(16,573	)
Total	$	(84,842	)

* The average value of futures outstanding during the period was $964,861.

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Balanced Fund

Open Futures Contracts
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
U.S. Treasury 2 Year Notes		2		September-2010/Long	$	437,656		$	1,871
U.S. Treasury 10 Year Notes		1		September-2010/Long		122,547			2,123
U.S. Treasury 30 Year Bonds		1		September-2010/Long		127,500			2,958
Subtotal					$	687,703		$	6,952
U.S. Treasury 5 Year Notes		9		September-2010/Short	$	(1,065,164	)	$	(12,038	)
Total					$	377,461		$	(5,086	)

Invesco V.I. Select Dimensions Dividend Growth Fund

Open Options Written Contracts
					Number of
Contract	Strike Price		Expiration Date		Contracts		Premium		Value
Apple, Inc.	$	280.00		July-2010		10	$	5,320	$	940
Whirlpool Corp.		110.00		July-2010		30		5,060		450
Total							$	10,380	$	1,390

  Transactions in options for the six months ended June 30, 2010, were as follows:

	Number of
	contracts			Premium
Options written, outstanding at beginning of period		22		$	4,422
Options written		192			41,002
Options expired		(122	)		(28,098	)
Options closed		(52	)		(6,946	)
Options written, outstanding at end of period		40		$	10,380

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

Open Futures Contracts
							Unrealized
	Number of		Month/				Appreciation
Contract	Contracts		Commitment		Value		(Depreciation)
S&P 500 E-MINI		9		September-2010/Long	$	461,970	$	(26,937	)

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Funds engaged in the following transactions with Affiliated Funds:

					Realized Gains
	Purchases		Sales		(Losses)
Invesco V.I. Select Dimensions Balanced Fund	$	20,385	$	2,265	$	438
Invesco V.I. Select Dimensions Dividend Growth Fund		870,553		5,341,855		(2,924,671	)
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		—		—		—

Invesco V.I. Select Dimensions Funds

NOTE 6—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

Invesco V.I. Select Dimensions Balanced Fund

	Capital Loss
	Carryforward
Expiration	(000s)*
2016	$	1,128
2017		1,938
Total capital loss carryforward	$	3,066

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

Invesco V.I. Select Dimensions Dividend Growth Fund

	Capital Loss
	Carryforward
Expiration	(000s)*
2010	$	37,657
2011		21,222
2016		7,857
2017		17,973
Total capital loss carryforward	$	84,709

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Capital Loss
	Carryforward
Expiration	(000s)*
2017	$	9,172

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

Invesco V.I. Select Dimensions Funds

NOTE 9—Share Information

	Invesco V. I. Select Dimensions Balanced Fund						Invesco V.I. Select Dimensions Dividend Growth Fund						Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund
	For The Six			For The Year			For The Six			For The Year			For The Six			For The Year
	Months Ended			Ended			Months Ended			Ended			Months Ended			Ended
	June 30,			December 31,			June 30,			December 31,			June 30,			December 31,
	2010(a)			2009			2010(a)			2009			2010(a)			2009
Series I
Shares
Sold		5,774			205,613			14,954			65,164			9,609			85,681
Reinvestment of dividends and distributions		40,482			69,989			87,641			119,678			39,137			205,238
Redeemed		(188,450	)		(527,590	)		(514,533	)		(1,465,877	)		(257,997	)		(687,136	)
Net increase (decrease) — Series I		(142,194	)		(251,988	)		(411,938	)		(1,281,035	)		(209,251	)		(396,217	)
Amount
Sold	$	74,905		$	2,288,162		$	219,833		$	821,495		$	153,810		$	1,108,596
Reinvestment of dividends and distributions		509,670			750,282			1,223,469			1,414,595			629,718			2,497,741
Redeemed		(2,463,125	)		(5,871,276	)		(7,479,174	)		(17,440,567	)		(4,216,269	)		(8,620,430	)
Net increase (decrease) — Series I	$	(1,878,550	)	$	(2,832,832	)	$	(6,035,872	)	$	(15,204,477	)	$	(3,432,741	)	$	(5,014,093	)
Series II
Shares
Sold		18,277			32,359			11,589			57,615			34,783			143,074
Reinvestment of dividends and distributions		22,808			40,975			23,030			32,712			44,654			267,208
Redeemed		(107,723	)		(349,414	)		(154,351	)		(532,525	)		(384,631	)		(749,130	)
Net increase (decrease) — Series II		(66,638	)		(276,080	)		(119,732	)		(442,198	)		(305,194	)		(338,848	)
Amount
Sold	$	243,004		$	351,813		$	165,251		$	653,317		$	562,234		$	1,655,307
Reinvestment of dividends and distributions		286,007			437,618			321,049			386,002			710,006			3,211,843
Redeemed		(1,390,859	)		(3,893,367	)		(2,247,097	)		(6,309,185	)		(6,159,996	)		(9,306,740	)
Net increase (decrease) — Series II	$	(861,848	)	$	(3,103,936	)	$	(1,760,797	)	$	(5,269,866	)	$	(4,887,756	)	$	(4,439,590	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of each Fund and in the aggregate own 97%, 99% and 91% of the outstanding shares of Invesco V.I. Select Dimensions Balanced Fund, Invesco V.I. Select Dimensions Dividend Growth Fund and Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund, respectively. The Funds and each Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Funds. The Funds, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Funds, for providing services to the Funds, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 10—Investment Securities

The aggregate amount of investment securities purchased and sold by each Fund and aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes are as follows:

					At June 30, 2010
	For the six months ended											Net Unrealized
	June 30, 2010*				Federal Tax		Unrealized		Unrealized			Appreciation
	Purchases		Sales		Cost**		Appreciation		(Depreciation)			(Depreciation)
Invesco V.I. Select Dimensions Balanced Fund	$	10,468,774	$	11,976,095	$	38,856,445	$	1,526,085	$	(3,392,496	)	$	(1,866,411	)
Invesco V.I. Select Dimensions Dividend Growth Fund		34,836,808		48,304,415		80,657,268		4,327,814		(6,533,093	)		(2,205,279	)
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		12,216,547		20,554,533		59,922,973		30,779,631		(2,188,829	)		28,590,802

 *  Excludes U.S. Treasury obligations and money market funds, if any.

**  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.

Invesco V.I. Select Dimensions Funds

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of each Fund outstanding throughout the periods indicated.

Invesco V.I. Select Dimensions Balanced Fund

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series I
Selected per share data:
Net asset value, beginning of period	$	12.79		$	11.05		$	16.40		$	17.57		$	16.88		$	15.95
Income (loss) from investment operations:
Net investment income(a)		0.10			0.22			0.36			0.42			0.41			0.34
Net realized and unrealized gain (loss)		(0.61	)		1.87			(3.77	)		0.28			1.60			0.95
Total income (loss) from investment operations		(0.51	)		2.09			(3.41	)		0.70			2.01			1.29
Less dividends and distributions from:
Net investment income		(0.27	)		(0.35	)		(0.11	)		(0.45	)		(0.44	)		(0.36	)
Net realized gain		—			—			(1.83	)		(1.42	)		(0.88	)		—
Total dividends and distributions		(0.27	)		(0.35	)		(1.94	)		(1.87	)		(1.32	)		(0.36	)
Net asset value, end of period	$	12.01		$	12.79		$	11.05		$	16.40		$	17.57		$	16.88
Total return(b)		(4.08	)%		19.48	%		(22.51	)%		3.86	%		12.67	%		8.21	%
Net assets, end of period, (000’s)	$	22,666		$	25,961		$	25,225		$	42,488		$	54,204		$	64,663
Ratios to average net assets:
With fee waivers and/or expense reimbursements		0.83	%(c)		0.82	%(d)		0.84	%(d)		0.78	%		0.74	%		0.70	%
Without fee waivers and/or expense reimbursements		0.87	%(c)
Net investment income		1.60	%(c)		1.91	%(d)		2.65	%(d)		2.44	%		2.42	%		2.07	%
Rebate from affiliates		—			0.01	%		0.01	%		—			—			—
Supplemental data:
Portfolio turnover(e)		26	%		77	%		65	%		86	%		45	%		55	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $25,441.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Select Dimensions Funds

NOTE 11—Financial Highlights—(continued)

Invesco V.I. Select Dimensions Balanced Fund

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series II
Selected per share data:
Net asset value, beginning of period	$	12.72		$	11.00		$	16.36		$	17.52		$	16.84		$	15.92
Income (loss) from investment operations:
Net investment income(a)		0.09			0.19			0.33			0.38			0.37			0.30
Net realized and unrealized gain (loss)		(0.61	)		1.85			(3.76	)		0.29			1.59			0.95
Total income (loss) from investment operations		(0.52	)		2.04			(3.43	)		0.67			1.96			1.24
Less dividends and distributions from:
Net investment income		(0.24	)		(0.32	)		(0.10	)		(0.41	)		(0.40	)		(0.32	)
Net realized gain		—			—			(1.83	)		(1.42	)		(0.88	)		—
Total dividends and distributions		(0.24	)		(0.32	)		(1.93	)		(1.83	)		(1.28	)		(0.32	)
Net asset value, end of period	$	11.96		$	12.72		$	11.00		$	16.36		$	17.52		$	16.84
Total return(b)		(4.19	)%		19.07	%		(22.64	)%		3.60	%		12.37	%		7.89	%
Net assets, end of period, (000’s)	$	14,440		$	16,210		$	17,048		$	27,535		$	30,562		$	27,970
Ratios to average net assets:
With fee waivers and/or expense reimbursements		1.08	%(c)		1.07	%(d)		1.09	%(d)		1.03	%		0.99	%		0.95	%
Without fee waivers and/or expense reimbursements		1.12	%(c)
Net investment income		1.35	%(c)		1.66	%(d)		2.40	%(d)		2.19	%		2.17	%		1.82	%
Rebate from affiliates		—			0.01	%		0.01	%		—			—			—
Supplemental data:
Portfolio turnover(e)		26	%		77	%		65	%		86	%		45	%		55	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $15,974.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Select Dimensions Funds

NOTE 11—Financial Highlights—(continued)

Invesco V.I. Select Dimensions Dividend Growth Fund

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series I
Selected per share data:
Net asset value, beginning of period	$	14.34		$	11.77		$	18.64		$	18.09		$	16.48		$	15.81
Income (loss) from investment operations:
Net investment income(a)		0.10			0.21			0.26			0.22			0.22			0.20
Net realized and unrealized gain (loss)		(1.09	)		2.61			(7.06	)		0.55			1.62			0.67
Total income (loss) from investment operations		(0.99	)		2.82			(6.80	)		0.77			1.84			0.87
Less dividends from net investment income		(0.25	)		(0.25	)		(0.07	)		(0.22	)		(0.23	)		(0.20	)
Net asset value, end of period	$	13.10		$	14.34		$	11.77		$	18.64		$	18.09		$	16.48
Total return(b)		(7.01	)%		24.39	%		(36.60	)%		4.27	%		11.25	%		5.57	%
Net assets, end of period, (000’s)	$	63,963		$	75,962		$	77,428		$	153,676		$	201,169		$	249,516
Ratios to average net assets:
With fee waivers and/or expense reimbursements		0.73	%(c)		0.72	%(d)		0.71	%(d)		0.67	%		0.67	%		0.63	%
Without fee waivers and/or expense reimbursements		0.75	%(c)
Net investment income		1.35	%(c)		1.72	%(d)		1.63	%(d)		1.18	%		1.31	%		1.26	%
Rebate from affiliates		—			0.00	%(e)		0.01	%		—			—			—
Supplemental data:
Portfolio turnover(f)		40	%		44	%		61	%		48	%		115	%		38	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $73,400.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Select Dimensions Funds

NOTE 11—Financial Highlights—(continued)

Invesco V.I. Select Dimensions Dividend Growth Fund

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series II
Selected per share data:
Net asset value, beginning of period	$	14.30		$	11.73		$	18.61		$	18.07		$	16.45		$	15.79
Income (loss) from investment operations:
Net investment income(a)		0.08			0.18			0.22			0.17			0.18			0.16
Net realized and unrealized gain (loss)		(1.09	)		2.60			(7.04	)		0.55			1.62			0.66
Total income (loss) from investment operations		(1.01	)		2.78			(6.82	)		0.72			1.80			0.82
Less dividends from net investment income		(0.21	)		(0.21	)		(0.06	)		(0.18	)		(0.18	)		(0.16	)
Net asset value, end of period	$	13.08		$	14.30		$	11.73		$	18.61		$	18.07		$	16.45
Total return(b)		(7.13	)%		24.11	%		(36.76	)%		3.95	%		10.98	%		5.32	%
Net assets, end of period, (000’s)	$	19,793		$	23,361		$	24,355		$	49,021		$	54,255		$	56,061
Ratios to average net assets:
With fee waivers and/or expense reimbursements		0.98	%(c)		0.97	%(d)		0.96	%(d)		0.92	%		0.92	%		0.88	%
Without fee waivers and/or expense reimbursements		1.00	%(c)
Net investment income		1.10	%(c)		1.47	%(d)		1.38	%(d)		0.93	%		1.06	%		1.01	%
Rebate from affiliates		—			0.00	%(e)		0.01	%		—			—			—
Supplemental data:
Portfolio turnover(f)		40	%		44	%		61	%		48	%		115	%		38	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $22,632.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Select Dimensions Funds

NOTE 11—Financial Highlights—(continued)

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series I
Selected per share data:
Net asset value, beginning of period	$	15.69		$	11.61		$	25.37		$	27.75		$	25.71		$	24.45
Income (loss) from investment operations:
Net investment income(a)		0.11			0.22			0.32			0.41			0.37			0.32
Net realized and unrealized gain (loss)		(0.66	)		4.75			(8.73	)		0.20			3.45			1.54
Total income (loss) from investment operations		(0.55	)		4.97			(8.41	)		0.61			3.82			1.86
Less dividends and distributions from:
Net investment income		(0.24	)		(0.34	)		(0.45	)		(0.42	)		(0.34	)		(0.23	)
Net realized gain		—			(0.55	)		(4.90	)		(2.57	)		(1.44	)		(0.37	)
Total dividends and distributions		(0.24	)		(0.89	)		(5.35	)		(2.99	)		(1.78	)		(0.60	)
Net asset value, end of period	$	14.90		$	15.69		$	11.61		$	25.37		$	27.75		$	25.71
Total return(b)		(3.59	)%		45.08	%		(40.02	)%		1.47	%		15.69	%		7.81	%
Net assets, end of period, (000’s)	$	38,230		$	43,553		$	36,814		$	77,688		$	103,824		$	120,117
Ratios to average net assets:
Total expenses		0.32	%(c)		0.37	%(d)		0.31	%(d)		0.28	%		0.27	%		0.27	%
Net investment income		1.41	%(c)		1.72	%(d)		1.70	%(d)		1.48	%		1.40	%		1.30	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental data:
Portfolio turnover(f)		13	%		13	%		32	%		17	%		17	%		17	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $43,334.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

Invesco V.I. Select Dimensions Funds

NOTE 11—Financial Highlights—(continued)

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	For the six
	months ended
	June 30,			For the year ended December 31,
	2010			2009			2008			2007			2006			2005
Series II
Selected per share data:
Net asset value, beginning of period	$	15.49		$	11.45		$	25.08		$	27.47		$	25.48		$	24.25
Income (loss) from investment operations:
Net investment income(a)		0.09			0.19			0.27			0.34			0.30			0.26
Net realized and unrealized gain (loss)		(0.65	)		4.69			(8.63	)		0.19			3.42			1.53
Total income (loss) from investment operations		(0.56	)		4.88			(8.36	)		0.53			3.72			1.79
Less dividends and distributions from:
Net investment income		(0.21	)		(0.29	)		(0.37	)		(0.35	)		(0.29	)		(0.19	)
Net realized gain		—			(0.55	)		(4.90	)		(2.57	)		(1.44	)		(0.37	)
Total dividends and distributions		(0.21	)		(0.84	)		(5.27	)		(2.92	)		(1.73	)		(0.56	)
Net asset value, end of period	$	14.72		$	15.49		$	11.45		$	25.08		$	27.47		$	25.48
Total return(b)		(3.73	)%		44.79	%		(40.19	)%		1.23	%		15.34	%		7.57	%
Net assets, end of period, (000’s)	$	50,216		$	57,578		$	46,447		$	99,861		$	112,897		$	101,156
Ratios to average net assets:
Total expenses		0.57	%(c)		0.62	%(d)		0.56	%(d)		0.53	%		0.52	%		0.52	%
Net investment income		1.16	%(c)		1.47	%(d)		1.45	%(d)		1.23	%		1.15	%		1.05	%
Rebate from affiliates		—			0.00	%(e)		0.00	%(e)		—			—			—
Supplemental data:
Portfolio turnover(f)		13	%		13	%		32	%		17	%		17	%		17	%

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total return.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $56,720.
(d)	The ratios reflect the rebate of certain Fund expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from affiliate”.
(e)	Amount is less than 0.005%.
(f)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

NOTE 12—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco V.I. Select Dimensions Funds

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees of other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. 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.

Invesco V.I. Select Dimensions Balanced Fund

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,3		Ratio3
Series I	$	1,000.00	$	959.20	$	4.03	$	1,020.68	$	4.16		0.83	%
Series II		1,000.00		958.10		5.24		1,019.44		5.41		1.08

Invesco V.I. Select Dimensions Dividend Growth Fund

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,3		Ratio3
Series I	$	1,000.00	$	929.90	$	3.49	$	1,021.17	$	3.66		0.73	%
Series II		1,000.00		928.70		4.69		1,019.93		4.91		0.98

Invesco V.I. Select Dimensions Funds

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,3		Ratio3
Series I	$	1,000.00	$	964.10	$	1.56	$	1,023.21	$	1.61		0.32	%
Series II		1,000.00		962.70		2.77		1,021.97		2.86		0.57

1	The actual ending account value is based on the actual total return of the Funds for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on each Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to each 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.
3	Effective on June 1, 2010, the expense limit rate changed for all classes of each fund. The annualized expense ratios, the actual expenses paid and the hypothetical expenses paid restated as if the rate changes had been in effect throughout the entire most recent fiscal half year for each fund are as follows:

					HYPOTHETICAL
					(5% annual return before
	ACTUAL				expenses)
	Restated Expenses				Restated Expenses				Restated
	Paid During				Paid During				Annualized
	Period				Period				Expense Ratio
Share Class	Series I		Series II		Series I		Series II		Series I			Series II
Invesco V.I. Select Dimensions Balanced Fund	$	3.98	$	5.19	$	4.11	$	5.36		0.82	%		1.07	%
Invesco V.I. Select Dimensions Dividend Growth Fund		3.45		4.64		3.61		4.86		0.72			0.97
Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund		1.80		3.02		1.86		3.11		0.37			0.62

Invesco V.I. Select Dimensions Funds

Approval of Investment Advisory and Sub-advisory Agreements
(Invesco V.I. Select Dimensions Balanced Fund, Invesco V.I. Select Dimensions Dividend Growth Fund and Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund)

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve annually the renewal of each series portfolio of Invesco Variable Insurance Funds (each, a Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add each Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). In doing so, the Board determined that the investment advisory agreements are in the best interests of each Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under each Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

Each Fund was formed to acquire the assets and liabilities of a Morgan Stanley retail fund (each, an Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, no Fund had any assets or any performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of each Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of each Fund’s investment advisory agreement. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

1.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to each Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve each Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to each Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which each Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit each Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing each Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

2.  Fund Performance

Each Fund will retain the performance track record of its Acquired Fund. The Board considered the performance of each Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed each Acquired Fund. The Board did not view fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of any Fund.

3.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of each Fund is the same as that of its Acquired Fund, that the board of each Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of each Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of each Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to each Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on any Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of each Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that each Fund’s advisory and sub-advisory fees were fair and reasonable.

4.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to each Fund. The Board also considered whether each Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that each Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that each Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

5.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that each Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under each Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

6.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with each Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the

Invesco V.I. Select Dimensions Funds

performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to each Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to each Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to each Fund and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that any Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by each Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that each Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco V.I. Select Dimensions Funds

Proxy Results

Special Meetings (“Meetings”) of Shareholders of Morgan Stanley Select Dimensions Investment Series — Balanced Portfolio, Morgan Stanley Select Dimensions Investment Series — Dividend Growth Portfolio and Morgan Stanley Select Dimensions Investment Series — Equally Weighted S&P 500 Portfolio were held on Tuesday, May 11, 2010. The Meetings were held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization.
	Morgan Stanley Select Dimensions Investment Series — Balanced Portfolio		2,988,457		60,378		210,082		0
	Morgan Stanley Select Dimensions Investment Series — Dividend Growth Portfolio		6,151,950		181,214		443,507		0
	Morgan Stanley Select Dimensions Investment Series — Equally Weighted S&P 500 Portfolio		5,771,820		206,452		350,088		0

Invesco V.I. Select Dimensions Funds

          Invesco V.I. Small Cap Equity Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VISCE-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-0.78	%
Series II Shares	-0.95
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell 2000 Index▼ (Style-Specific Index)	-1.95
Lipper VUF Small-Cap Core Funds Index▼ (Peer Group Index)	-2.47

^▼ Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the U.S. stock market.

     The Russell 2000^® Index is an unmanaged index considered representative of small-cap stocks. The Russell 2000 Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Lipper VUF Small-Cap Core Funds Index is an unmanaged index considered representative of small-cap core variable insurance underlying funds tracked by Lipper.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (8/29/03)	4.78	%
5 Years	1.93
1 Year	15.87
Series II Shares
Inception (8/29/03)	4.54	%
5 Years	1.67
1 Year	15.47

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.09% and 1.34%, 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.

     Invesco V.I. Small Cap Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower.

Invesco V.I. Small Cap Equity Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.90%
Advertising–1.03%
Interpublic Group of Cos., Inc. (The)(b)		302,336	$	2,155,656
Aerospace & Defense–1.93%
AAR Corp.(b)		100,393		1,680,579
Aerovironment Inc.(b)		44,567		968,441
Curtiss-Wright Corp.		47,488		1,379,051
				4,028,071
Agricultural Products–0.97%
Corn Products International, Inc.		67,093		2,032,918
Air Freight & Logistics–0.89%
UTI Worldwide, Inc.		149,682		1,853,063
Airlines–1.15%
Allegiant Travel Co.		39,260		1,676,009
Continental Airlines, Inc.–Class B(b)		32,597		717,134
				2,393,143
Apparel Retail–2.79%
Citi Trends Inc.(b)		63,709		2,098,574
Genesco Inc.(b)		76,408		2,010,295
J. Crew Group, Inc.(b)		46,739		1,720,463
				5,829,332
Apparel, Accessories & Luxury Goods–3.27%
Carter’s, Inc.(b)		78,121		2,050,676
Hanesbrands, Inc.(b)		92,867		2,234,380
Phillips-Van Heusen Corp.		54,964		2,543,185
				6,828,241
Application Software–3.30%
Parametric Technology Corp.(b)		123,435		1,934,227
Quest Software, Inc.(b)		123,601		2,229,762
TIBCO Software Inc.(b)		226,717		2,734,207
				6,898,196
Asset Management & Custody Banks–1.75%
Affiliated Managers Group, Inc.(b)		23,905		1,452,707
SEI Investments Co.		108,242		2,203,807
				3,656,514
Auto Parts & Equipment–1.11%
TRW Automotive Holdings Corp.(b)		84,100		2,318,637
Automotive Retail–0.74%
Penske Automotive Group, Inc.(b)		136,330		1,548,709
	Shares
Biotechnology–0.26%
InterMune, Inc.(b)		58,267		544,796
Casinos & Gaming–0.83%
Bally Technologies Inc.(b)		53,690		1,739,019
Communications Equipment–2.89%
Comtech Telecommunications Corp.(b)		50,100		1,499,493
JDS Uniphase Corp.(b)		258,484		2,543,482
Tellabs, Inc.		312,640		1,997,770
				6,040,745
Construction, Farm Machinery & Heavy Trucks–1.84%
Titan International, Inc.		245,661		2,449,240
Trinity Industries, Inc.		78,783		1,396,035
				3,845,275
Data Processing & Outsourced Services–0.95%
Wright Express Corp.(b)		66,601		1,978,050
Diversified Chemicals–0.93%
FMC Corp.		33,978		1,951,357
Diversified Metals & Mining–1.05%
Compass Minerals International, Inc.		31,302		2,199,905
Electrical Components & Equipment–3.15%
Baldor Electric Co.		61,013		2,201,349
Belden Inc.		90,184		1,984,048
GrafTech International Ltd.(b)		163,142		2,385,136
				6,570,533
Electronic Equipment & Instruments–1.71%
OSI Systems, Inc.(b)		93,270		2,590,108
Rofin-Sinar Technologies, Inc.(b)		47,559		990,178
				3,580,286
Environmental & Facilities Services–2.95%
ABM Industries Inc.		122,037		2,556,675
Team, Inc.(b)		125,980		1,644,039
Waste Connections, Inc.(b)		56,183		1,960,225
				6,160,939
Gas Utilities–1.53%
Energen Corp.		33,993		1,506,909
UGI Corp.		66,629		1,695,042
				3,201,951
Health Care Distributors–0.85%
Owens & Minor, Inc.		62,626		1,777,326

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Health Care Equipment–0.85%
Invacare Corp.		85,778	$	1,779,036
Health Care Facilities–1.48%
Hanger Orthopedic Group, Inc.(b)		12,749		228,972
Universal Health Services, Inc.–Class B		74,919		2,858,160
				3,087,132
Health Care Services–1.69%
Emdeon, Inc.–Class A(b)		122,769		1,538,296
Gentiva Health Services, Inc.(b)		74,025		1,999,415
				3,537,711
Health Care Supplies–1.29%
Cooper Cos., Inc. (The)		67,643		2,691,515
Health Care Technology–0.71%
Omnicell, Inc.(b)		126,480		1,478,551
Home Furnishings–0.83%
Ethan Allen Interiors Inc.		124,262		1,738,425
Industrial Machinery–2.92%
Gardner Denver Inc.		49,685		2,215,454
IDEX Corp.		70,431		2,012,214
Valmont Industries, Inc.		25,737		1,870,050
				6,097,718
Insurance Brokers–0.90%
Arthur J. Gallagher & Co.		77,078		1,879,162
Integrated Telecommunication Services–1.79%
Alaska Communications Systems Group Inc.		212,271		1,802,181
Cincinnati Bell Inc.(b)		642,408		1,933,648
				3,735,829
Internet Software & Services–2.09%
GSI Commerce, Inc.(b)		82,867		2,386,570
Open Text Corp. (Canada)(b)		52,928		1,986,917
				4,373,487
Investment Banking & Brokerage–0.82%
KBW Inc.(b)		80,013		1,715,479
IT Consulting & Other Services–0.87%
CACI International Inc.–Class A(b)		42,845		1,820,056
Life Sciences Tools & Services–1.63%
Dionex Corp.(b)		27,909		2,078,104
eResearch Technology, Inc.(b)		168,724		1,329,545
				3,407,649
Metal & Glass Containers–0.95%
AptarGroup, Inc.		52,148		1,972,237
Movies & Entertainment–0.98%
World Wrestling Entertainment, Inc.–Class A		131,257		2,042,359
Office REIT’s–1.99%
Alexandria Real Estate Equities, Inc.		27,924		1,769,544
Digital Realty Trust, Inc.		41,500		2,393,720
				4,163,264
Oil & Gas Equipment & Services–2.86%
Complete Production Services, Inc.(b)		152,669		2,183,167
Dresser-Rand Group, Inc.(b)		66,530		2,099,021
Oceaneering International, Inc.(b)		37,650		1,690,485
				5,972,673
Oil & Gas Exploration & Production–3.64%
Arena Resources, Inc.(b)		49,379		1,575,190
Comstock Resources, Inc.(b)		70,120		1,943,726
Forest Oil Corp.(b)		81,315		2,224,779
Penn Virginia Corp.		92,669		1,863,574
				7,607,269
Packaged Foods & Meats–2.16%
Flowers Foods, Inc.		83,508		2,040,101
TreeHouse Foods, Inc.(b)		53,902		2,461,165
				4,501,266
Pharmaceuticals–3.20%
Biovail Corp. (Canada)		137,916		2,653,504
ViroPharma Inc.(b)		191,748		2,149,495
VIVUS, Inc.(b)		196,208		1,883,597
				6,686,596
Property & Casualty Insurance–1.46%
FPIC Insurance Group, Inc.(b)		53,829		1,380,714
Hanover Insurance Group Inc. (The)		38,349		1,668,181
				3,048,895
Regional Banks–7.07%
BancFirst Corp.		54,989		2,006,549
Columbia Banking System, Inc.		112,769		2,059,162
Commerce Bancshares, Inc.		47,440		1,707,366
Community Trust Bancorp, Inc.		58,255		1,462,200
First Financial Bankshares, Inc.		28,362		1,363,928
First Midwest Bancorp, Inc.		169,623		2,062,616
FirstMerit Corp.		104,562		1,791,147
Zions Bancorp.		106,716		2,301,864
				14,754,832
Restaurants–3.90%
Brinker International, Inc.		124,939		1,806,618
DineEquity, Inc.(b)		57,110		1,594,511
Papa John’s International, Inc.(b)		58,459		1,351,572

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Restaurants–(continued)
Sonic Corp.(b)		148,207	$	1,148,604
Texas Roadhouse, Inc.(b)		177,446		2,239,369
				8,140,674
Semiconductor Equipment–1.97%
ATMI, Inc.(b)		19,011		278,321
Cymer, Inc.(b)		59,418		1,784,917
MKS Instruments, Inc.(b)		108,969		2,039,899
				4,103,137
Semiconductors–1.02%
Semtech Corp.(b)		129,930		2,126,954
Specialized REIT’s–2.57%
LaSalle Hotel Properties		115,748		2,380,936
Senior Housing Properties Trust		78,746		1,583,582
Universal Health Realty Income Trust		43,789		1,406,941
				5,371,459
Specialty Chemicals–1.35%
PolyOne Corp.(b)		249,425		2,100,158
Zep, Inc.		41,434		722,609
				2,822,767
Systems Software–1.68%
Ariba Inc.(b)		219,967		3,504,074
Technology Distributors–0.88%
Ingram Micro Inc.–Class A(b)		121,133		1,840,010
Trading Companies & Distributors–1.06%
Beacon Roofing Supply, Inc.(b)		122,867		2,214,063
Trucking–2.08%
Landstar System, Inc.		52,132		2,032,627
Old Dominion Freight Line, Inc.(b)		65,553		2,303,532
				4,336,159
Water Utilities–0.34%
Cascal N.V. (United Kingdom)		105,469		706,642
Total Common Stocks & Other Equity Interests (Cost $192,593,266)				202,389,742
Money Market Funds–2.55%
Liquid Assets Portfolio–Institutional Class(c)		2,669,802		2,669,802
Premier Portfolio–Institutional Class(c)		2,669,802		2,669,802
Total Money Market Funds (Cost $5,339,604)				5,339,604
TOTAL INVESTMENTS–99.45% (Cost $197,932,870)				207,729,346
OTHER ASSETS LESS LIABILITIES–0.55%				1,139,790
NET ASSETS–100.00%			$	208,869,136

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	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 June 30, 2010

Industrials	17.9	%
Information Technology	17.4
Financials	16.5
Consumer Discretionary	15.5
Health Care	12.0
Energy	6.5
Materials	4.3
Consumer Staples	3.1
Utilities	1.9
Telecommunication Services	1.8
Money Market Funds Plus Other Assets Less Liabilities	3.1

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $192,593,266)	$	202,389,742
Investments in affiliated money market funds, at value and cost		5,339,604
Total investments, at value (Cost $197,932,870)		207,729,346
Receivables for:
Investments sold		544,131
Fund shares sold		722,443
Dividends		259,870
Investment for trustee deferred compensation and retirement plans		14,369
Other assets		1,281
Total assets		209,271,440
Liabilities:
Payables for:
Investments purchased		149,053
Fund shares reacquired		33,918
Accrued fees to affiliates		157,682
Accrued other operating expenses		36,821
Trustee deferred compensation and retirement plans		24,830
Total liabilities		402,304
Net assets applicable to shares outstanding	$	208,869,136
Net assets consist of:
Shares of beneficial interest	$	237,240,412
Undistributed net investment income (loss)		(189,009	)
Undistributed net realized gain (loss)		(37,978,743	)
Unrealized appreciation		9,796,476
	$	208,869,136
Net Assets:
Series I	$	188,426,241
Series II	$	20,442,895
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		14,769,245
Series II		1,625,737
Series I:
Net asset value per share	$	12.76
Series II:
Net asset value per share	$	12.57

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $3,584)	$	972,204
Dividends from affiliated money market funds (includes securities lending income of $11,834)		15,665
Total investment income		987,869
Expenses:
Advisory fees		786,425
Administrative services fees		288,762
Custodian fees		5,939
Distribution fees — Series II		23,098
Transfer agent fees		10,026
Trustees’ and officers’ fees and benefits		11,995
Other		30,987
Total expenses		1,157,232
Less: Fees waived		(4,419	)
Net expenses		1,152,813
Net investment income (loss)		(164,944	)
Realized and unrealized gain (loss) from:
Net realized gain from investment securities		940,912
Change in net unrealized appreciation (depreciation) of investment securities		(4,750,410	)
Net realized and unrealized gain (loss)		(3,809,498	)
Net increase (decrease) in net assets resulting from operations	$	(3,974,442	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income (loss)	$	(164,944	)	$	(40,537	)
Net realized gain (loss)		940,912			(20,760,004	)
Change in net unrealized appreciation (depreciation)		(4,750,410	)		54,460,389
Net increase (decrease) in net assets resulting from operations		(3,974,442	)		33,659,848
Distributions to shareholders from net investment income:
Series I		—			(278,362	)
Series II		—			(15,577	)
Total distributions from net investment income		—			(293,939	)
Share transactions–net:
Series I		12,871,293			(4,469,997	)
Series II		6,975,585			6,233,450
Net increase in net assets resulting from share transactions		19,846,878			1,763,453
Net increase in net assets		15,872,436			35,129,362
Net assets:
Beginning of period		192,996,700			157,867,338
End of period (includes undistributed net investment income (loss) of $(189,009) and $(24,065), respectively)	$	208,869,136		$	192,996,700

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Small Cap Equity Fund, formerly AIM V.I. Small Cap Equity Fund, (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is long-term growth of capital.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Invesco V.I. Small Cap Equity Fund

	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service.
	Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

Invesco V.I. Small Cap Equity Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.73%
Next $500 million		0	.715%
Next $1.5 billion		0	.70%
Next $2.5 billion		0	.685%
Next $2.5 billion		0	.67%
Next $2.5 billion		0	.655%
Over $10 billion		0	.64%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Series I shares to 1.15% and Series II shares to 1.40% 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 net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $4,419.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

Invesco V.I. Small Cap Equity Fund

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $263,967 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	207,729,346	$	—	$	—	$	207,729,346

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $95,723.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,506 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

Invesco V.I. Small Cap Equity Fund

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	12,193,641
December 31, 2017		22,760,741
Total capital loss carryforward	$	34,954,382

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $56,095,759 and $40,384,615, 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	$	23,572,866
Aggregate unrealized (depreciation) of investment securities		(17,185,604	)
Net unrealized appreciation of investment securities	$	6,387,262
Cost of investments for tax purposes is $201,342,084.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		2,718,516		$	38,295,936			3,683,269		$	39,156,749
Series II		590,353			7,945,765			780,951			8,298,387
Issued as reinvestment of dividends:
Series I		—			—			22,558			278,362
Series II		—			—			1,279			15,577
Reacquired:
Series I		(1,863,841	)		(25,424,643	)		(4,128,279	)		(43,905,108	)
Series II		(71,511	)		(970,180	)		(204,276	)		(2,080,514	)
Net increase in share activity		1,373,517		$	19,846,878			155,502		$	1,763,453

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 81% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Small Cap Equity Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset		Net			(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		investment			securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)(a)			unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	12.86	$	(0.01	)	$	(0.09	)	$	(0.10	)	$	—		$	—		$	—		$	12.76		(0.78	)%	$	188,426		1.07	%(d)		1.07	%(d)		(0.13	)%(d)		20	%
Year ended 12/31/09		10.62		(0.00	)		2.26			2.26			(0.02	)		—			(0.02	)		12.86		21.29			178,949		1.09			1.09			(0.01	)		46
Year ended 12/31/08		15.53		0.02			(4.88	)		(4.86	)		—			(0.05	)		(0.05	)		10.62		(31.31	)		152,310		1.09			1.09			0.16			55
Year ended 12/31/07		15.19		(0.01	)		0.81			0.80			(0.01	)		(0.45	)		(0.46	)		15.53		5.19			168,286		1.12			1.15			(0.07	)		45
Year ended 12/31/06		13.46		(0.01	)		2.37			2.36			—			(0.63	)		(0.63	)		15.19		17.44			93,243		1.15			1.33			(0.06	)		52
Year ended 12/31/05		12.45		(0.06	)		1.07			1.01			—			—			—			13.46		8.11			42,752		1.22			1.57			(0.44	)		70
Series II
Six months ended 06/30/10		12.69		(0.03	)		(0.09	)		(0.12	)		—			—			—			12.57		(0.95	)		20,443		1.32	(d)		1.32	(d)		(0.38	)(d)		20
Year ended 12/31/09		10.51		(0.03	)		2.23			2.20			(0.02	)		—			(0.02	)		12.69		20.90			14,048		1.34			1.34			(0.26	)		46
Year ended 12/31/08		15.39		0.00			(4.83	)		(4.83	)		—			(0.05	)		(0.05	)		10.51		(31.40	)		5,557		1.34			1.34			(0.09	)		55
Year ended 12/31/07		15.10		(0.05	)		0.79			0.74			—			(0.45	)		(0.45	)		15.39		4.84			32		1.37			1.40			(0.32	)		45
Year ended 12/31/06		13.41		(0.04	)		2.36			2.32			—			(0.63	)		(0.63	)		15.10		17.20			854		1.40			1.58			(0.31	)		52
Year ended 12/31/05		12.43		(0.08	)		1.06			0.98			—			—			—			13.41		7.88			679		1.42			1.82			(0.64	)		70

(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. Total returns do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ending December 31, 2007, the portfolio turnover calculation excludes the value of securities purchased of $17,709,035 and sold of $19,432,514 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Small Cap Growth Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $194,239 and $18,631 for Series I and Series II shares, respectively.

Invesco V.I. Small Cap Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	992.20	$	5.29	$	1,019.49	$	5.36		1.07	%
Series II		1,000.00		990.50		6.51		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 January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Small Cap Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco V.I. Small Cap Equity Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

  The Board reviewed the services provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund.

Invesco V.I. Small Cap Equity Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Small-Cap Core Index. The Board noted that the performance of Series I shares of the Fund was in the fifth quintile of its performance universe for the one year period, the second quintile for the three year period and the first quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. The Board noted that the investment management team has a conservative, quality bias that underperformed during the low-quality rally in 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund. The Board also noted that Invesco Advisers serves as a sub-adviser to two mutual funds and that the effective fee sub-advisory rate is below the effective fee advisory rate for the Fund.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts in a manner substantially similar to the management of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco V.I. Small Cap Equity Fund

		Invesco V.I. Technology Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

I-VITEC-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-8.26	%
Series II Shares	-8.40
S&P 500 Index▼ (Broad Market Index)	-6.64
BofA Merrill Lynch 100 Technology Index▼ (Style-Specific Index)	-8.41
Lipper VUF Science & Technology Funds Category Average▼ (Peer Group)	-6.98
▼Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
The BofA Merrill Lynch 100 Technology Index is a price-only equal-dollar weighted index of 100 stocks designed to measure the performance of a cross section of large, actively traded technology stocks and American Depositary Receipts.
The Lipper VUF Science & Technology Funds Category Average represents an average of all of the variable insurance underlying funds in the Lipper Science & Technology Funds category.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10
Series I Shares
Inception (5/20/97)	1.53	%
10 Years	-11.88
5 Years	0.78
1 Year	18.39
Series II Shares
10 Years	-12.12	%
5 Years	0.50
1 Year	18.07

Series II shares incepted on April 30, 2004. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.20% and 1.45%, respectively. The expense ratios presented above may vary from the

expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco V.I. Technology Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. Technology Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–94.46%
Application Software–5.28%
Autodesk, Inc.(b)		45,231	$	1,101,827
NICE Systems Ltd.–ADR (Israel)		69,746		1,777,826
Quest Software, Inc.(b)		63,951		1,153,676
TIBCO Software Inc.(b)		117,238		1,413,890
				5,447,219
Communications Equipment–9.60%
Ciena Corp.(b)		52,587		666,803
Cisco Systems, Inc.(b)		127,198		2,710,589
Finisar Corp.(b)(c)		31,448		468,575
JDS Uniphase Corp.(b)		105,735		1,040,432
Plantronics, Inc.		42,456		1,214,242
Polycom, Inc.(b)		33,143		987,330
QUALCOMM Inc.		63,177		2,074,733
Research In Motion Ltd. (Canada)(b)		14,938		735,846
				9,898,550
Computer Hardware–12.05%
Apple Inc.(b)		30,196		7,595,200
Dell, Inc.(b)		61,505		741,750
Hewlett-Packard Co.		94,655		4,096,669
				12,433,619
Computer Storage & Peripherals–6.91%
EMC Corp.(b)		174,523		3,193,771
NetApp, Inc.(b)		27,344		1,020,205
QLogic Corp.(b)		71,875		1,194,562
Seagate Technology(b)		58,025		756,646
Western Digital Corp.(b)		31,993		964,909
				7,130,093
Data Processing & Outsourced Services–3.58%
Alliance Data Systems Corp.(b)(c)		29,425		1,751,376
MasterCard, Inc.–Class A		5,444		1,086,241
Western Union Co.		57,260		853,747
				3,691,364
Electronic Components–2.17%
Corning Inc.		71,857		1,160,491
Dolby Laboratories Inc.–Class A(b)		17,212		1,079,020
				2,239,511
Electronic Equipment & Instruments–0.79%
Cogent Inc.(b)		89,947		810,422
	Shares
Electronic Manufacturing Services–4.93%
Flextronics International Ltd. (Singapore)(b)		335,887		1,880,967
Jabil Circuit, Inc.		41,496		551,897
Tyco Electronics Ltd. (Switzerland)		104,334		2,647,997
				5,080,861
Home Entertainment Software–0.65%
Nintendo Co., Ltd. (Japan)		2,300		670,171
Internet Retail–1.22%
Amazon.com, Inc.(b)		11,495		1,255,944
Internet Software & Services–6.72%
Google Inc.–Class A(b)		9,599		4,271,075
GSI Commerce, Inc.(b)		44,192		1,272,730
VeriSign, Inc.(b)		26,276		697,628
Yahoo! Inc.(b)		49,973		691,126
				6,932,559
IT Consulting & Other Services–6.59%
Amdocs Ltd.(b)		44,071		1,183,306
Cognizant Technology Solutions Corp.–Class A(b)		84,550		4,232,573
International Business Machines Corp.		11,210		1,384,211
				6,800,090
Other Diversified Financial Services–0.93%
BlueStream Ventures L.P. (Acquired 08/03/00-06/13/08; Cost $3,149,655)(d)(e)		—		958,423
Semiconductor Equipment–4.16%
Applied Materials, Inc.		129,394		1,555,316
ASML Holding N.V.–New York Shares (Netherlands)		64,396		1,768,958
Cymer, Inc.(b)		32,309		970,562
				4,294,836
Semiconductors–13.79%
Avago Technologies Ltd. (Singapore)(b)		95,719		2,015,842
Intel Corp.		174,354		3,391,185
Marvell Technology Group Ltd.(b)		191,217		3,013,580
Microsemi Corp.(b)		126,482		1,850,432
ON Semiconductor Corp.(b)		245,289		1,564,944
Semtech Corp.(b)		73,731		1,206,976
Xilinx, Inc.		46,991		1,186,993
				14,229,952
Systems Software–13.88%
Ariba Inc.(b)		135,516		2,158,770
Check Point Software Technologies Ltd. (Israel)(b)		112,696		3,322,278
McAfee Inc.(b)		34,320		1,054,310

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Technology Fund

	Shares		Value
Systems Software–(continued)
Microsoft Corp.		155,470	$	3,577,365
Oracle Corp.		93,925		2,015,631
Rovi Corp.(b)		15,298		579,947
SonicWALL, Inc.(b)		65,159		765,618
Symantec Corp.(b)		60,523		840,059
				14,313,978
Technology Distributors–1.21%
Anixter International Inc.(b)		29,410		1,252,866
Total Common Stocks & Other Equity Interests (Cost $91,307,213)				97,440,458
Money Market Funds–5.74%
Liquid Assets Portfolio–Institutional Class(f)(g)		2,959,764		2,959,764
Premier Portfolio–Institutional Class(f)		2,959,764		2,959,764
Total Money Market Funds (Cost $5,919,528)				5,919,528
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.20% (Cost $97,226,741)				103,359,986
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.67%
Liquid Assets Portfolio–Institutional Class (Cost $1,723,524)(f)(g)		1,723,524		1,723,524
TOTAL INVESTMENTS–101.87% (Cost $98,950,265)				105,083,510
OTHER ASSETS LESS LIABILITIES–(1.87)%				(1,932,714	)
NET ASSETS–100.00%			$	103,150,796

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of this security was out on loan at June 30, 2010.
(d)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at June 30, 2010 represented 0.93% of the Fund’s Net Assets.
(e)	The Fund has a remaining commitment of $101,250 to purchase additional interests in BlueStream Ventures L.P., which is subject to the terms of the limited partnership agreement.
(f)	The money market fund and the Fund are affiliated by having the same investment adviser.
(g)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Information Technology	92.3	%
Consumer Discretionary	1.2
Financials	0.9
Money Market Funds Plus Other Assets Less Liabilities	5.6

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Technology Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $91,307,213)*	$	97,440,458
Investments in affiliated money market funds, at value and cost		7,643,052
Total investments, at value (Cost $98,950,265)		105,083,510
Foreign currencies, at value (Cost $27,466)		27,202
Receivables for:
Fund shares sold		35,519
Dividends		43,324
Investment for trustee deferred compensation and retirement plans		26,228
Other assets		2,228
Total assets		105,218,011
Liabilities:
Payables for:
Fund shares reacquired		204,697
Collateral upon return of securities loaned		1,723,524
Accrued fees to affiliates		73,790
Accrued other operating expenses		23,641
Trustee deferred compensation and retirement plans		41,563
Total liabilities		2,067,215
Net assets applicable to shares outstanding	$	103,150,796
Net assets consist of:
Shares of beneficial interest	$	141,528,703
Undistributed net investment income		1,474,177
Undistributed net realized gain (loss)		(45,985,065	)
Unrealized appreciation		6,132,981
	$	103,150,796
Net Assets:
Series I	$	102,622,723
Series II	$	528,073
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		8,483,171
Series II		44,411
Series I:
Net asset value per share	$	12.10
Series II:
Net asset value per share	$	11.89

*  At June 30, 2010, securities with an aggregate value of $1,664,919 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $2,429)	$	332,350
Dividends from affiliated money market funds (includes securities lending income of $4,177)		6,390
Total investment income		338,740
Expenses:
Advisory fees		440,049
Administrative services fees		169,073
Custodian fees		4,612
Distribution fees:
Distribution fees — Series II		600
Transfer agent fees		14,405
Trustees’ and officers’ fees and benefits		10,672
Other		25,432
Total expenses		664,843
Less: Fees waived		(2,973	)
Net expenses		661,870
Net investment income (loss)		(323,130	)
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		1,892,766
Foreign currencies		680
		1,893,446
Change in net unrealized appreciation (depreciation) of:
Investment securities		(11,050,080	)
Foreign currencies		(25	)
		(11,050,105	)
Net realized and unrealized gain (loss)		(9,156,659	)
Net increase (decrease) in net assets resulting from operations	$	(9,479,789	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Technology Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income (loss)	$	(323,130	)	$	(246,156	)
Net realized gain (loss)		1,893,446			(7,709,275	)
Change in net unrealized appreciation (depreciation)		(11,050,105	)		49,818,541
Net increase (decrease) in net assets resulting from operations		(9,479,789	)		41,863,110
Share transactions–net:
Series I		(7,312,805	)		6,048,496
Series II		158,354			212,164
Net increase (decrease) in net assets resulting from share transactions		(7,154,451	)		6,260,660
Net increase (decrease) in net assets		(16,634,240	)		48,123,770
Net assets:
Beginning of period		119,785,036			71,661,266
End of period (includes undistributed net investment income of $1,474,177 and $1,797,307, respectively)	$	103,150,796		$	119,785,036

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Technology Fund, formerly AIM V.I. Technology Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objective is long-term growth of capital.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity

Invesco V.I. Technology Fund

	are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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

Invesco V.I. Technology Fund

	results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly.
	Many of the products and services offered in technology-related industries are subject to rapid obsolescence, which may lower the value of the securities of the companies in this sector.
J.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
K.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
L.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Technology 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 Net Assets	Rate
First $250 million		0	.75%
Next $250 million		0	.74%
Next $500 million		0	.73%
Next $1.5 billion		0	.72%
Next $2.5 billion		0	.71%
Next $2.5 billion		0	.70%
Next $2.5 billion		0	.69%
Over $10 billion		0	.68%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Series I shares to 1.30% and Series II shares to 1.45% 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 net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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 during the period under this expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $2,973.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $144,278 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

Invesco V.I. Technology Fund

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the period January 1, 2010 to June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	103,454,916	$	670,171	$	958,423	$	105,083,510

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $5,780.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,425 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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. Under these limitation rules, the Fund is limited to utilizing $47,527,413 of capital loss carryforward in the fiscal year ending December 31, 2010.

Invesco V.I. Technology Fund

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	33,793,498
December 31, 2016		2,325,578
December 31, 2017		11,408,337
Total capital loss carryforward	$	47,527,413

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $14,288,005 and $22,920,563, 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	$	17,605,270
Aggregate unrealized (depreciation) of investment securities		(9,670,544	)
Net unrealized appreciation of investment securities	$	7,934,726
Cost of investments for tax purposes is $97,148,784.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		1,038,904		$	13,819,290			2,735,605		$	28,624,111
Series II		14,176			182,113			21,914			249,444
Reacquired:
Series I		(1,604,745	)		(21,132,095	)		(2,226,031	)		(22,575,615	)
Series II		(1,855	)		(23,759	)		(3,726	)		(37,280	)
Net increase (decrease) in share activity		(553,520	)	$	(7,154,451	)		527,762		$	6,260,660

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 65% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Technology Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																			Ratio of			Ratio of
																			expenses			expenses
						Net gains													to average			to average net			Ratio of net
	Net asset		Net			(losses) on													net assets			assets without			investment
	value,		investment			securities (both			Total from			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/10	$	13.19	$	(0.04	)(c)	$	(1.05	)	$	(1.09	)	$	12.10		(8.26	)%	$	102,623		1.12	%(d)		1.13	%(d)		(0.54	)%(d)		13	%
Year ended 12/31/09		8.38		(0.03	)(c)		4.84			4.81			13.19		57.40			119,369		1.18			1.19			(0.27	)		42
Year ended 12/31/08		15.10		0.01	(c)		(6.73	)		(6.72	)		8.38		(44.50	)		71,546		1.15			1.16			0.05			81
Year ended 12/31/07		14.02		(0.06	)		1.14			1.08			15.10		7.70			158,739		1.10			1.10			(0.38	)		59
Year ended 12/31/06		12.69		(0.08	)		1.41			1.33			14.02		10.48			173,321		1.12			1.12			(0.54	)		116
Year ended 12/31/05		12.42		(0.07	)		0.34			0.27			12.69		2.17			190,700		1.12			1.12			(0.60	)		114
Series II
Six months ended 06/30/10		12.98		(0.05	)(c)		(1.04	)		(1.09	)		11.89		(8.40	)		528		1.37	(d)		1.38	(d)		(0.79	)(d)		13
Year ended 12/31/09		8.26		(0.06	)(c)		4.78			4.72			12.98		57.14			417		1.43			1.44			(0.52	)		42
Year ended 12/31/08		14.95		(0.02	)(c)		(6.67	)		(6.69	)		8.26		(44.75	)		115		1.40			1.41			(0.20	)		81
Year ended 12/31/07		13.91		(0.10	)		1.14			1.04			14.95		7.48			130		1.35			1.35			(0.63	)		59
Year ended 12/31/06		12.62		(0.12	)		1.41			1.29			13.91		10.22			134		1.37			1.37			(0.79	)		116
Year ended 12/31/05		12.39		(0.11	)		0.34			0.23			12.62		1.86			142		1.37			1.37			(0.85	)		114

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $117,835 and $484 for Series I and Series II shares, respectively.

Invesco V.I. Technology Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	917.40	$	5.32	$	1,019.24	$	5.61		1.12	%
Series II		1,000.00		916.00		6.51		1,018.00		6.85		1.37

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Technology Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco V.I. Technology Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

  The Board reviewed the services provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund.

Invesco V.I. Technology Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Science & Technology Index. The Board noted that the performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period and the fourth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that Invesco Advisers made changes to the Fund’s portfolio management team in 2008 and added a co-manager in 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rate for the other mutual fund.

  Other than the mutual fund described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other mutual funds or client accounts in a manner substantially similar to the management of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco V.I. Technology Fund

		Invesco V.I. Utilities Fund Semiannual Report to Shareholders ■ June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

I-VIUTI-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-7.99	%
Series II Shares	-8.18
S&P 500 Index▼ (Broad Market Index)	-6.64
S&P 500 Utilities Index▼ (Style-Specific Index)	-7.14
Lipper VUF Utility Funds Category Average▼(Peer Group)	-7.66

^▼ Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the U.S. stock market.

     The S&P 500 Utilities Index is an unmanaged index considered representative of the utilities market.

     The Lipper VUF Utility Funds Category Average represents an average of all of the variable insurance underlying funds in the Lipper Utility Funds category.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (12/30/94)	5.70	%
10 Years	-0.02
5 Years	2.76
1 Year	5.51
Series II Shares
10 Years	-0.27	%
5 Years	2.48
1 Year	5.15

Series II shares incepted on April 30, 2004. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.94% and 1.19%, 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 Series I and Series II shares was 1.05% and 1.30%, respectively. The expense ratios presented

above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco V.I. Utilities Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2011. See current prospectus for more information.

Invesco V.I. Utilities Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks–98.12%
Electric Utilities–45.10%
American Electric Power Co., Inc.		77,283	$	2,496,241
Duke Energy Corp.		123,952		1,983,232
E.ON AG (Germany)		53,357		1,436,652
Edison International		78,139		2,478,569
Entergy Corp.		41,886		2,999,875
Exelon Corp.		47,435		1,801,107
FirstEnergy Corp.		53,693		1,891,605
NextEra Energy, Inc.		26,512		1,292,725
Northeast Utilities		59,859		1,525,207
Pepco Holdings, Inc.		152,313		2,388,268
Portland General Electric Co.		127,636		2,339,568
PPL Corp.		95,357		2,379,157
Southern Co.		75,289		2,505,618
				27,517,824
Gas Utilities–8.45%
AGL Resources Inc.		44,203		1,583,351
EQT Corp.		21,018		759,591
ONEOK, Inc.		40,857		1,767,065
Questar Corp.(b)		17,541		283,287
UGI Corp.		29,949		761,903
				5,155,197
Independent Power Producers & Energy Traders–3.25%
NRG Energy, Inc.(b)		93,586		1,984,959
Integrated Oil & Gas–0.69%
QEP Resources Inc.(b)		13,692		422,124
Integrated Telecommunication Services–4.52%
AT&T Inc.		50,663		1,225,538
Verizon Communications Inc.		54,675		1,531,993
				2,757,531
Multi-Utilities–31.45%
CMS Energy Corp.		205,431		3,009,564
Dominion Resources, Inc.		77,828		3,015,057
National Grid PLC (United Kingdom)		320,668		2,361,719
PG&E Corp.		70,436		2,894,920
Public Service Enterprise Group, Inc.		65,698		2,058,318
Sempra Energy		43,756		2,047,343
Wisconsin Energy Corp.		23,501		1,192,441
Xcel Energy, Inc.		126,774		2,612,812
				19,192,174
Oil & Gas Storage & Transportation–4.66%
El Paso Corp.		54,162		601,740
Southern Union Co.		44,355		969,600
Williams Cos., Inc. (The)		69,599		1,272,270
				2,843,610
Total Common Stocks (Cost $57,369,267)				59,873,419
Money Market Funds–1.85%
Liquid Assets Portfolio–Institutional Class(c)		564,038		564,038
Premier Portfolio–Institutional Class(c)		564,038		564,038
Total Money Market Funds (Cost $1,128,076)				1,128,076
TOTAL INVESTMENTS–99.97% (Cost $58,497,343)				61,001,495
OTHER ASSETS LESS LIABILITIES–0.03%				18,385
NET ASSETS–100.00%			$	61,019,880

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Utilities	89.7	%
Telecommunication Services	4.5
Energy	3.9
Money Market Funds Plus Other Assets Less Liabilities	1.9

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Utilities Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $57,369,267)	$	59,873,419
Investments in affiliated money market funds, at value and cost		1,128,076
Total investments, at value (Cost $58,497,343)		61,001,495
Receivables for:
Investments sold		130,299
Fund shares sold		8,272
Dividends		323,200
Fund expenses absorbed		5,846
Investment for trustee deferred compensation and retirement plans		33,418
Other assets		2,114
Total assets		61,504,644
Liabilities:
Payables for:
Investments purchased		287,444
Fund shares reacquired		88,304
Accrued fees to affiliates		39,517
Accrued other operating expenses		23,626
Trustee deferred compensation and retirement plans		45,873
Total liabilities		484,764
Net assets applicable to shares outstanding	$	61,019,880
Net assets consist of:
Shares of beneficial interest	$	58,213,356
Undistributed net investment income		3,493,627
Undistributed net realized gain (loss)		(3,191,477	)
Unrealized appreciation		2,504,374
	$	61,019,880
Net Assets:
Series I	$	59,529,165
Series II	$	1,490,715
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		4,460,536
Series II		112,468
Series I:
Net asset value per share	$	13.35
Series II:
Net asset value per share	$	13.25

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $15,446)	$	1,479,985
Dividends from affiliated money market funds (includes securities lending income of $8,025)		9,401
Total investment income		1,489,386
Expenses:
Advisory fees		200,575
Administrative services fees		99,874
Custodian fees		3,838
Distribution fees — Series II		2,024
Transfer agent fees		10,627
Trustees’ and officers’ fees and benefits		9,954
Professional services fees		18,079
Other		4,734
Total expenses		349,705
Less: Fees waived		(39,315	)
Net expenses		310,390
Net investment income		1,178,996
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		756,400
Foreign currencies		9,569
		765,969
Change in net unrealized appreciation (depreciation) of:
Investment securities		(7,464,782	)
Foreign currencies		(5,634	)
		(7,470,416	)
Net realized and unrealized gain (loss)		(6,704,447	)
Net increase (decrease) in net assets resulting from operations	$	(5,525,451	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Utilities Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	1,178,996		$	2,365,392
Net realized gain (loss)		765,969			(3,566,259	)
Change in net unrealized appreciation (depreciation)		(7,470,416	)		9,982,838
Net increase (decrease) in net assets resulting from operations		(5,525,451	)		8,781,971
Distributions to shareholders from net investment income:
Series I		—			(3,146,581	)
Series II		—			(69,727	)
Total distributions from net investment income		—			(3,216,308	)
Distributions to shareholders from net realized gains:
Series I		—			(793,124	)
Series II		—			(19,073	)
Total distributions from net realized gains		—			(812,197	)
Share transactions–net:
Series I		(5,753,037	)		(14,677,265	)
Series II		(74,688	)		(124,013	)
Net increase (decrease) in net assets resulting from share transactions		(5,827,725	)		(14,801,278	)
Net increase (decrease) in net assets		(11,353,176	)		(10,047,812	)
Net assets:
Beginning of period		72,373,056			82,420,868
End of period (includes undistributed net investment income of $3,493,627 and $2,314,631, respectively)	$	61,019,880		$	72,373,056

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Utilities Fund, formerly AIM V.I. Utilities Fund, (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, (each constituting a “Fund”). 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  The Fund’s investment objectives are long-term growth of capital and secondarily, current income.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an

Invesco V.I. Utilities Fund

	independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

Invesco V.I. Utilities Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly.
	The Fund may invest a large percentage of assets in securities of a limited number of companies, such that each investment may have a greater effect on the Fund’s overall performance, and any change in the value of those securities could significantly affect the value of your investment in the Fund.
	Government regulation, difficulties in obtaining adequate financing and investment return, environmental issues, prices of fuel for generation of electricity, availability of natural gas, risks associated with power marketing and trading, and risks associated with nuclear power facilities may adversely affect the market value of the Fund’s holdings.
J.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
K.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
L.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Utilities 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 0.60% of the Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Series I shares to 0.93% and Series II shares to 1.18% 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 net annual operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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 each fiscal year.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $39,315.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the six months ended June 30, 2010, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $75,079 for services provided by insurance companies.

  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. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Invesco V.I. Utilities Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	57,203,124	$	3,798,371	$	—	$	61,001,495

NOTE 4—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,374 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	3,645,250

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $2,910,356 and $4,800,948, 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	$	6,907,980
Aggregate unrealized (depreciation) of investment securities		(4,716,024	)
Net unrealized appreciation of investment securities	$	2,191,956
Cost of investments for tax purposes is $58,809,539.

Invesco V.I. Utilities Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		281,741		$	3,950,655			609,839		$	8,004,977
Series II		4,486			62,310			12,671			166,300
Issued as reinvestment of dividends:
Series I		—			—			276,664			3,939,705
Series II		—			—			6,267			88,800
Reacquired:
Series I		(692,836	)		(9,703,692	)		(2,046,142	)		(26,621,947	)
Series II		(10,006	)		(136,998	)		(30,065	)		(379,113	)
Net increase (decrease) in share activity		(416,615	)	$	(5,827,725	)		(1,170,766	)	$	(14,801,278	)

^(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. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. Utilities Fund

NOTE 9—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	14.51	$	0.24	$	(1.40	)	$	(1.16	)	$	—		$	—		$	—		$	13.35		(7.99	)%	$	59,529		0.92	%(d)		1.04	%(d)		3.54	%(d)		5	%
Year ended 12/31/09		13.38		0.45		1.53			1.98			(0.68	)		(0.17	)		(0.85	)		14.51		14.93			70,671		0.93			1.04			3.35			14
Year ended 12/31/08		23.97		0.52		(8.36	)		(7.84	)		(0.59	)		(2.16	)		(2.75	)		13.38		(32.35	)		80,704		0.93			0.96			2.53			15
Year ended 12/31/07		21.23		0.47		3.94			4.41			(0.47	)		(1.20	)		(1.67	)		23.97		20.64			155,748		0.93			0.94			1.97			30
Year ended 12/31/06		17.83		0.47		4.06			4.53			(0.70	)		(0.43	)		(1.13	)		21.23		25.46			139,080		0.93			0.96			2.40			38
Year ended 12/31/05		15.61		0.42		2.21			2.63			(0.41	)		—			(0.41	)		17.83		16.83			114,104		0.93			0.96			2.49			49
Series II
Six months ended 06/30/10		14.43		0.22		(1.40	)		(1.18	)		—			—			—			13.25		(8.18	)		1,491		1.17	(d)		1.29	(d)		3.29	(d)		5
Year ended 12/31/09		13.30		0.41		1.52			1.93			(0.63	)		(0.17	)		(0.80	)		14.43		14.61			1,702		1.18			1.29			3.10			14
Year ended 12/31/08		23.80		0.46		(8.28	)		(7.82	)		(0.52	)		(2.16	)		(2.68	)		13.30		(32.51	)		1,717		1.18			1.21			2.28			15
Year ended 12/31/07		21.12		0.41		3.91			4.32			(0.44	)		(1.20	)		(1.64	)		23.80		20.32			3,293		1.18			1.19			1.72			30
Year ended 12/31/06		17.76		0.42		4.06			4.48			(0.69	)		(0.43	)		(1.12	)		21.12		25.25			2,462		1.18			1.21			2.15			38
Year ended 12/31/05		15.57		0.38		2.20			2.58			(0.39	)		—			(0.39	)		17.76		16.55			801		1.18			1.21			2.24			49

(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. Total returns are not annualized for periods less than one year and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $65,780 and $1,632 for Series I and Series II shares, respectively.

Invesco V.I. Utilities Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	920.10	$	4.38	$	1,020.23	$	4.61		0.92	%
Series II		1,000.00		918.20		5.56		1,018.99		5.86		1.17

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Utilities Fund

Approval of Investment Advisory and Sub-advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco V.I. Utilities Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

  The Board reviewed the services provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund.

Invesco V.I. Utilities Fund

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an affiliated Sub-Adviser and against the Lipper VA Underlying Funds — Utility Index. The Board noted that the performance of Series I shares of the Fund was in the fourth quintile of its Lipper performance universe for the one year period, the third quintile for the three year period and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate of Series I shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was below the effective fee rate for the other mutual fund.

  Other than the mutual fund described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board also considered the effect this fee waiver would have on the Fund’s total estimated expenses.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above, the advisory fee after fee waivers and expense limitations and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board noted that the Fund did not benefit from breakpoints, but did share directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for the research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco V.I. Utilities Fund

           Invesco Van Kampen V.I. Capital Growth Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VICGR-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-4.12	%
Series II Shares	-4.21
Russell 1000 Growth Index 6 (Broad Market/Style-Specific Index)	-7.65
6 Lipper Inc.

The Russell 1000^® Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (7/3/95)	7.01	%
10 Years	-6.06
5 Years	1.14
1 Year	26.17

Series II Shares
Inception (9/18/00)	-6.77	%
5 Years	0.89
1 Year	25.84

Effective June 1, 2010, Class I and Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Capital Growth Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Capital Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.84% and 1.09%, respectively. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.10% and 1.35%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco Van Kampen V.I. Capital Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco Van Kampen V.I. Capital Growth Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks–87.7%
Aerospace & Defense–1.9%
Goodrich Corp.		50,745	$	3,361,856
Air Freight & Logistics–2.1%
C.H. Robinson Worldwide, Inc.		30,600		1,703,196
Expeditors International of Washington, Inc.		54,633		1,885,385
				3,588,581
Airlines–0.5%
Continental Airlines, Inc., Class B(a)		36,465		802,230
Apparel Retail–1.1%
Limited Brands, Inc.		50,515		1,114,866
Ross Stores, Inc.		14,595		777,768
				1,892,634
Application Software–1.9%
Adobe Systems, Inc.(a)		2,470		65,282
Salesforce.com, Inc.(a)		37,957		3,257,470
				3,322,752
Broadcasting & Cable TV–2.0%
Comcast Corp., Class A		196,807		3,418,538
Broadcasting–Diversified–0.6%
Time Warner Cable, Inc.		20,235		1,053,839
Casinos & Gaming–3.5%
Las Vegas Sands Corp. (a)		98,422		2,179,063
Wynn Resorts Ltd.		50,157		3,825,474
				6,004,537
Communications Equipment–1.0%
Cisco Systems, Inc.(a)		78,386		1,670,406
Computer Hardware–8.6%
Apple, Inc.(a)		45,637		11,479,075
IBM Corp.		27,357		3,378,042
				14,857,117
Computer Storage & Peripherals–2.5%
EMC Corp.(a)		234,971		4,299,969
Construction Materials–1.2%
Cemex SAB de CV–ADR (Mexico)(a)		161,260		1,559,387
Martin Marietta Materials, Inc.		5,590		474,088
				2,033,475
Consumer Finance–2.8%
American Express Co.		122,249		4,853,285
Data Processing & Outsourced Services–2.9%
MasterCard, Inc., Class A		17,632		3,518,113
Visa, Inc., Class A		22,682		1,604,751
				5,122,864
Department Stores–0.5%
Sears Holdings Corp.(a)		14,719		951,583
Diversified Commercial & Professional Services–0.1%
Corporate Executive Board Co.		5,658		148,636
Electrical Components & Equipment–0.8%
Cooper Industries PLC (Ireland)		27,937		1,229,228
First Solar, Inc.(a)		1,118		127,262
				1,356,490
Fertilizers & Agricultural Chemicals–1.3%
Monsanto Co.		47,358		2,188,887
Gas Utilities–1.0%
Questar Corp.		36,521		1,661,340
General Merchandise Stores–0.6%
Dollar Tree, Inc.(a)		26,896		1,119,680
Gold–3.3%
Barrick Gold Corp. (Canada)		56,296		2,556,401
Newmont Mining Corp.		50,187		3,098,546
				5,654,947
Health Care Distributors–3.0%
AmerisourceBergen Corp.		70,468		2,237,359
Cardinal Health, Inc.		43,248		1,453,565
McKesson Corp.		21,434		1,439,508
				5,130,432
Health Care Equipment–3.5%
Edwards Lifesciences Corp.(a)		19,566		1,096,087
Hospira, Inc.(a)		29,668		1,704,427
Intuitive Surgical, Inc.(a)		10,306		3,252,780
				6,053,294
Health Care Services–1.3%
Express Scripts, Inc.(a)		49,299		2,318,039
Human Resource & Employment Services–0.3%
Monster Worldwide, Inc.(a)		47,130		549,064
Industrial Machinery–1.4%
Ingersoll-Rand PLC (Ireland)		73,212		2,525,082

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Capital Growth Fund

	Shares		Value
Integrated Oil & Gas–1.9%
Occidental Petroleum Corp.		42,550	$	3,282,733
Internet Retail–2.8%
Amazon.com, Inc.(a)		44,578		4,870,592
Internet Software & Services–5.0%
Baidu, Inc.–ADR (Cayman Islands)(a)		44,683		3,042,019
eBay, Inc.(a)		33,720		661,249
Google, Inc., Class A(a)		11,302		5,028,825
				8,732,093
IT Consulting & Other Services–0.8%
Cognizant Technology Solutions Corp., Class A(a)		29,033		1,453,392
Life Sciences Tools & Services–1.9%
Illumina, Inc.(a)		11,125		484,271
Thermo Fisher Scientific, Inc.(a)		58,067		2,848,187
				3,332,458
Multi-Sector Holdings–0.2%
Leucadia National Corp.(a)		14,889		290,484
Oil & Gas Exploration & Production–1.5%
Range Resources Corp.		25,117		1,008,448
Ultra Petroleum Corp. (Canada)(a)		37,098		1,641,586
				2,650,034
Packaged Foods & Meats–1.9%
General Mills, Inc.		93,133		3,308,084
Personal Products–0.4%
Estee Lauder Cos., Inc., Class A		12,181		678,847
Pharmaceuticals–2.8%
Allergan, Inc.		27,112		1,579,545
Mead Johnson Nutrition Co., Class A		65,972		3,306,517
				4,886,062
Property & Casualty Insurance–2.9%
Berkshire Hathaway, Inc., Class B(a)		63,700		5,076,253
Publishing–0.5%
McGraw-Hill Cos., Inc.		29,172		820,900
Railroads–2.1%
Union Pacific Corp.		52,604		3,656,504
Restaurants–3.6%
McDonald’s Corp.		38,686		2,548,247
Starbucks Corp.		149,880		3,642,084
				6,190,331
Semiconductors–1.9%
Broadcom Corp., Class A		50,517		1,665,545
Xilinx, Inc.		62,445		1,577,361
				3,242,906
Soft Drinks–3.1%
Dr. Pepper Snapple Group, Inc.		142,641		5,333,347
Specialized Finance–1.1%
CME Group, Inc.		6,852		1,929,181
Systems Software–1.3%
Rovi Corp.(a)		28,297		1,072,739
VMware, Inc., Class A(a)		19,916		1,246,543
				2,319,282
Wireless Telecommunication Services–2.3%
America Movil SAB de CV, Ser L–ADR (Mexico)		50,931		2,419,222
American Tower Corp., Class A(a)		35,132		1,563,374
				3,982,596
Total Common Stocks–87.7%				151,975,636
Money Market Funds–4.9%
Liquid Assets Portfolio–Institutional Class(b)		4,245,547		4,245,547
Premier Portfolio–Institutional Class(b)		4,245,547		4,245,547
Total Money Market Funds–4.9%				8,491,094
Investment Companies–4.4%
iShares Russell 1000 Growth Index Fund		105,711		4,845,792
Powershares QQQ, Ser 1(b)		10,084		430,688
SPDR S&P ETF Trust		23,479		2,423,502
Total Investment Companies–4.4%				7,699,982
TOTAL INVESTMENTS–97.0% (Cost $164,267,189)				168,166,712
OTHER ASSETS IN EXCESS OF LIABILITIES–3.0%				5,229,478
NET ASSETS–100.0%			$	173,396,190

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.

(a)	Non-income producing security.
(b)	Each underlying fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Funds’ investment adviser.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Capital Growth Fund

Portfolio Composition

By sector, based on Net Assets

Information Technology	26.2	%
Consumer Discretionary	15.2
Health Care	12.5
Financials	11.2
Industrials	9.2
Materials	5.7
Consumer Staples	5.4
Energy	3.4
Telecommunication Services	2.3
Utilities	1.0
Money Market Funds and Other Assets in Excess of Liabilities	7.9

Fair Value Measurements

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below. (See Note 1(B) in the Notes to Financial Statements for further information regarding fair value measurements.)

	Level 1		Level 2		Level 3
			Other Significant		Significant
	Quoted Prices		Observable Inputs		Unobservable Inputs		Total
Equity Securities	$	168,166,712	$	—	$	—	$	168,166,712

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Capital Growth Fund

Statement of Assets and Liabilities

June 30, 2010
(Unaudited)

Assets:
Investments at value (Cost $155,282,533)	$	159,244,930
Investments in affiliates (Cost $8,984,656)		8,921,782
Receivables:
Investments sold		47,642,203
Fund shares sold		10,621,153
Dividends		63,650
Other		1,983
Total assets		226,495,701
Liabilities:
Payables:
Investments purchased		52,773,367
Fund shares repurchased		150,016
Distributor and affiliates		61,529
Custodian bank		35,578
Accrued expenses		79,021
Total liabilities		53,099,511
Net assets	$	173,396,190
Net assets consist of:
Capital (par value of $0.001 per share with an unlimited number of shares authorized)	$	352,900,692
Net unrealized appreciation		3,899,523
Accumulated net investment loss		(564,020	)
Accumulated net realized loss		(182,840,005	)
Net assets	$	173,396,190
Net asset value, offering price and redemption price per share:
Series I Shares (Based on net assets of $76,651,828 and 2,817,847 shares of beneficial interest issued and outstanding)		27.20
Series II Shares (Based on net assets of $96,744,362 and 3,606,251 shares of beneficial interest issued and outstanding)		26.83

Statement of Operations

For the six months ended June 30, 2010
(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $4,206)	$	444,536
Dividends from affiliated investments		5,101
Interest		7,551
Total income		457,188
Expenses:
Investment advisory fee		633,966
Distribution (12b-1) and service fees
Series II		136,249
Accounting and administrative expenses		34,128
Trustees’ fees and related expenses		13,676
Custody		11,655
Transfer agent fees		9,278
Total expenses		838,952
Less credits earned on cash balances		33
Net expenses		838,919
Net investment loss	$	(381,731	)
Realized and unrealized gain/loss:
Realized gain/loss:
Investments	$	(8,908,093	)
Investments in affiliates		(229,737	)
Foreign currency transactions		(33,250	)
Net realized loss		(9,171,080	)
Unrealized appreciation/depreciation:
Beginning of the period		1,387,413
End of the period		3,899,523
Net unrealized appreciation during the period		2,512,110
Net realized and unrealized loss	$	(6,658,970	)
Net decrease in net assets from operations	$	(7,040,701	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Capital Growth Fund

Statements of Changes in Net Assets

(Unaudited)

	For the			For the
	six months ended			year ended
	June 30, 2010			December 31, 2009
From Investment Activities:
Operations:
Net investment income/loss	$	(381,731	)	$	42,137
Net realized loss		(9,171,080	)		(9,935,026	)
Net unrealized appreciation during the period		2,512,110			86,278,618
Change in net assets from operations		(7,040,701	)		76,385,729
Distributions from net investment income:
Series I Shares		0			(60,146	)
Series II Shares		0			0
		0			(60,146	)
Return of capital distributions:
Series I shares		0			(11,587	)
Series II shares		0			0
		0			(11,587	)
Total distributions		0			(71,733	)
Net change in net assets from investment activities		(7,040,701	)		76,313,996
From capital transactions:
Proceeds from shares sold		18,391,728			32,081,935
Net asset value of shares issued through dividend reinvestment		0			71,733
Cost of shares repurchased		(24,702,224	)		(39,516,705	)
Net change in net assets from capital transactions		(6,310,496	)		(7,363,037	)
Total increase/decrease in net assets		(13,351,197	)		68,950,959
Net assets:
Beginning of the period		186,747,387			117,796,428
End of the period (including accumulated net investment loss of $564,020 and $182,289, respectively)	$	173,396,190		$	186,747,387

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Capital Growth Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for one share of the Fund outstanding throughout the periods indicated.

	Six months ended
	June 30,			Year ended December 31,
	2010,			2009			2008			2007			2006			2005
Series I Shares
Net asset value, beginning of the period	$	28.37		$	17.10		$	33.68		$	28.81			28.01			26.02
Net investment income/loss(a)		(0.00	)(b)		0.04			(0.01	)		0.11			0.04			0.03
Net realized and unrealized gain/loss		(1.17	)		11.26			(16.43	)		4.77			0.76			2.03
Total from investment operations		(1.17	)		11.30			(16.44	)		4.88			0.80			2.06
Less:
Distributions from net investment income		-0-			0.03			0.14			0.01			-0-			0.07
Return of capital distribution		-0-			0.00	(b)		-0-			-0-			-0-			-0-
Total distributions		-0-			0.03			0.14			0.01			-0-			0.07
Net asset value, end of the period	$	27.20		$	28.37		$	17.10		$	33.68			28.81			28.01
Total return*		(4.12	)%**		66.07	%		(48.99	)%		16.96	%		2.86	%		7.93	%
Net assets at end of the period (in millions)	$	76.7		$	74.2		$	48.6		$	143.6			160.5			204.0
Ratio of expenses to average net assets*		0.77	%		0.84	%		0.85	%		0.80	%		0.78	%		0.77	%
Ratio of net investment income/loss to average net assets*		(0.27	)%		0.17	%		(0.04	)%		0.35	%		0.16	%		0.13	%
Portfolio turnover		63	%**		13	%		42	%		177	%		128	%		98	%
* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		N/A			N/A			0.87	%		N/A			N/A			N/A
Ratio of net investment loss to average net assets		N/A			N/A			(0.02	)%		N/A			N/A			N/A

(a)	Based on average shares outstanding.
(b)	Amount is less than $0.01 per share.
**	Non-Annualized

N/A=Not Applicable

On June 1, 2010, the Fund’s former Class I shares were reorganized into Series I shares.

	Six months ended
	June 30,			Year ended December 31,
	2010,			2009			2008			2007			2006			2005
Series II Shares
Net asset value, beginning of the period	$	28.01		$	16.91		$	33.29		$	28.54			27.81			25.84
Net investment income/loss(a)		(0.00	)(b)		0.02			(0.08	)		0.03			(0.02	)		(0.03	)
Net realized and unrealized gain/loss		(1.18	)		11.12			(16.25	)		4.72			0.75			2.00
Total from investment operations		(1.18	)		11.10			(16.33	)		4.75			0.73			1.97
Less distributions from net investment income		-0-			-0-			0.05			-0-			-0-			-0-
Net asset value, end of the period	$	26.83		$	28.01		$	16.91		$	33.29			28.54			27.81
Total return*(c)		(4.21	)%**		65.64	%		(49.11	)%		16.64	%		2.62	%		7.64	%
Net assets at end of the period (in millions)	$	96.7		$	112.5		$	69.2		$	261.2			257.4			268.1
Ratio of expenses to average net assets*		1.02	%		1.09	%		1.10	%		1.05	%		1.03	%		1.02	%
Ratio of net investment income/loss to average net assets*		(0.52	)%		(0.07	)%		(0.29	)%		0.11	%		(0.09	)%		(0.12	)%
Portfolio turnover		63	%**		13	%		42	%		177	%		128	%		98	%
* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		N/A			N/A			1.12	%		N/A			N/A			N/A
Ratio of net investment loss to average net assets		N/A			N/A			(0.27	)%		N/A			N/A			N/A

(a)	Based on average shares outstanding.
(b)	Amount is less than $0.01 per share.
(c)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.
**	Non-Annualized

N/A=Not Applicable

On June 1, 2010 the Fund’s former Class II shares were reorganized into Series II shares.

Invesco Van Kampen V.I. Capital Growth Fund

Notes to Financial Statements

June 30, 2010
(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Capital Growth Fund (the “Fund”) is organized as a series of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance Funds, (the “Trust”), a Delaware statutory trust, and is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust consists of forty-one 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. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Life Investment Trust Capital Growth Portfolio (the “Acquired Fund”), an investment portfolio of Van Kampen Life Investment Trust. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class I and Class II Shares received Series I and Series II Shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class I and Class II Shares prior to the Reorganization are included with Series I and Series II Shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to seek capital appreciation.

  The Fund currently offers two classes of shares, Series I and Series II Shares, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies.

  The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A.	Security Valuation — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Invesco Van Kampen V.I. Capital Growth Fund

	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Fair Value Measurements — GAAP defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
	Level 1 — Prices are based on quoted prices in active markets for identical investments.
	Level 2 — Prices are based on other significant observable inputs which may include quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.
	Level 3 — Prices are based on significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
C.	Security Transactions — Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
D.	Income and Expenses — Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Income and expenses of the Fund are allocated on a pro rata basis to each class of shares, except for distribution and service fees and incremental transfer agency costs which are unique to each class of shares.
E.	Federal Income Taxes — It is the Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation, as applicable, as the income is earned or capital gains are recorded. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in “Interest Expense” and penalties in “Other” expenses on the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service and various states. Generally, each of the tax years in the four year period ended December 31, 2009, remains subject to examination by taxing authorities.
	The Fund intends to utilize provisions of the federal income tax law which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. At December 31, 2009, the Fund had an accumulated capital loss carryforward for tax purposes of $164,997,039, which will expire according to the following schedule:

Amount		Expiration
$	144,941,795		December 31, 2010
	1,891,381		December 31, 2011
	12,927,582		December 31, 2016
	5,236,281		December 31, 2017

Invesco Van Kampen V.I. Capital Growth Fund

    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	$	14,661,332
Aggregate unrealized (depreciation) of investment securities		(14,013,804	)
Net unrealized appreciation of investment securities	$	647,528
Cost of investments for tax purposes is $167,519,184.

F.	Distribution of Income and Gains — The Fund declares and pays dividends at least annually from net investment income and from net realized gains, if any. Distributions from net realized gains for book purposes may include short-term capital gains which are included as ordinary income for tax purposes. Distributions from the Fund are recorded on the ex-distribution date.
	The tax character of distributions paid during the year ended December 31, 2009 were as follows:

Distributions paid from:
Ordinary income	$	60,146
Return of Capital		11,587
	$	71,733

	Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of gains or losses recognized on securities for tax purposes but not for book purposes and the deferral of losses relating to wash sale transactions.
G.	Foreign Currency Translation — Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated at the rate of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at rates prevailing when accrued. Unrealized gains and losses on investments resulting from changes in exchange rates and the unrealized gains or losses on translations of other assets or liabilities denominated in foreign currencies are included in foreign currency translation on the Statement of Operations. Realized gains and losses on investments resulting from changes in exchange rates and the realized gains or losses on translations of other assets or liabilities denominated in foreign currencies are included in foreign currency transactions on the Statement of Operations.
H.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

NOTE 2—Investment Advisory Agreement and Other Transactions with 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	% Per Annum
First $500 million		0	.70%
Next $500 million		0	.65%
Over $1 billion		0	.60%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Funds’s average daily net assets.

  Under the terms of a master sub-advisory agreement approved by shareholders of the Funds between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Funds, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

Invesco Van Kampen V.I. Capital Growth Fund

  Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit the Fund’s expenses (excluding certain items discussed below) of Series I Shares to 0.84% and Series II Shares to 1.09% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Fund’s expenses to exceed the limit reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary or non-routine items; and (v) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco Advisers, Inc. mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Advisor did not waive fees and/or reimburse expenses during the period under this limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. For the period ended June 30, 2010, the Adviser did not waive any advisory fees under this agreement.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $2,376 for accounting and fund administrative services and reimbursed $20,756 for services provided by insurance companies. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investment Inc., provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $10,997 to Van Kampen Investments Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $8,107 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as Transfer Agent Fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or Invesco Distributors, Inc. (“IDI”).

  “Trustees’ Fees and Related Expenses” 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’ Fees and Related Expenses” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ Fees and Related Expenses” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  For the period ended June 30, 2010, the Fund paid legal fees of approximately $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

  Prior to the Reorganization, the Acquired Fund paid brokerage commissions to Morgan Stanley & Co., Inc., an affiliate of the Acquired Fund, totaling $2,138.

Transactions with Affiliates

The Fund invests in Affiliates of Invesco Advisers, Inc. A summary of the Fund’s transactions in shares of the Affiliates during the six months ended June 30, 2010 is as follows:

								Change in
	Purchase		Sales		Realized			Unrealized			Income		Value		Value
Investment	Cost		Proceeds		Gain/(Loss)			Gain/Loss			Earned		12/31/2009		6/30/2010
Powershares QQQ, Ser 1	$	2,884,041	$	2,160,741	$	(229,737	)	$	(62,875	)	$	5,101	$	0	$	430,688

Invesco Van Kampen V.I. Capital Growth Fund

NOTE 3—Share Information

For the six months ended June 30, 2010 and the year ended December 31, 2009, transactions were as follows:

	For the						For the
	six months ended						year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Value			Shares			Value
Sales:
Series I		509,551		$	14,062,425			707,974		$	14,460,316
Series II		151,244			4,329,303			797,284			17,621,619
Total sales		660,795		$	18,391,728			1,505,258		$	32,081,935
Dividend Reinvestment:
Series I		0		$	0			2,584		$	71,733
Series II		0			0			0			0
Total dividend reinvestment		0		$	0			2,584		$	71,733
Repurchases:
Series I		(307,488	)	$	(8,803,699	)		(937,388	)	$	(20,613,290	)
Series II		(561,952	)		(15,898,525	)		(873,368	)		(18,903,415	)
Total repurchases		(869,440	)	$	(24,702,224	)		(1,810,756	)	$	(39,516,705	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 54% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 4—Investment Transactions

During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments and money market funds, were $105,383,262 and $107,116,554, respectively.

NOTE 5—Distribution and Service Plans

The Trust has entered into a master distribution agreement with IDI to serve as the distributor for the Fund. The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II Shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II Shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II Shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II Shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $114,899 to Van Kampen Funds Inc. based on the annual rate of 0.25% of the Acquired Funds’s average daily net assets of Class II shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

NOTE 6—Indemnifications

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco Van Kampen V.I. Capital Growth Fund

NOTE 8—Change in Independent Registered Public Accounting Firm

In connection with the Reorganization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Capital Growth Fund

Calculating your ongoing Fund expenses

Expense example

As a policyholder of the Fund, you incur ongoing costs, including management fees, distribution and 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 the 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 1/1/10–6/30/10.

Actual expense

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The second line of the table below 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 cost of investing in the Fund and other portfolios. 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. Therefore, the second line of the table is useful in comparing ongoing costs and will not help you determine the relative total costs of owning different funds that have transactional costs, such as sales charges (loads) and redemption fees, or exchanges.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses
	Account Value		Account Value		Paid During		Account Value		Paid During
Series	(1/1/10)		(6/30/10)		Period*		(6/30/10)		Period*
I	$	1,000.00	$	958.76	$	3.74	$	1,020.98	$	3.86
II		1,000.00		957.87		4.95		1,019.74		5.11

*  Expenses are equal to the Fund’s annualized expense ratio of 0.77% and 1.02% for Series I and II Shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Assumes all dividends and distributions were reinvested.

Invesco Van Kampen V.I. Capital Growth Fund

Approval of Investment Advisory and Sub-Advisory Agreements
with Invesco Advisers, Inc. and its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Capital Growth Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the

Invesco Van Kampen V.I. Capital Growth Fund

terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Capital Growth Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Van Kampen Life Investment Trust Capital Growth Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		5,521,134		188,150		360,153		0

Invesco Van Kampen V.I. Capital Growth Fund

           Invesco Van Kampen V.I. Comstock Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VICOM-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-5.71	%
Series II Shares	-5.92
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell 1000 Value Index▼ (Style-Specific Index)	-5.12

^▼ Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the U.S. stock market.

     The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (4/30/99)	2.95	%
10 Years	3.70
5 Years	-1.28
1 Year	17.76

Series II Shares
Inception (9/18/00)	2.62	%
5 Years	-1.54
1 Year	17.27

Effective June 1, 2010, Class I and Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Comstock Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Comstock Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.62% and 0.87%, respectively. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.87% and 1.12%, 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.

     Invesco Van Kampen V.I. Comstock Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco V.I. Comstock Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks–96.7%
Aerospace & Defense–1.0%
Honeywell International, Inc.		404,500	$	15,787,635
Aluminum–0.7%
Alcoa, Inc.		1,043,324		10,495,839
Asset Management & Custody Banks–2.2%
Bank of New York Mellon Corp.		1,189,208		29,361,545
State Street Corp.		150,700		5,096,674
				34,458,219
Broadcasting & Cable TV–4.9%
Comcast Corp., Class A		4,349,792		75,555,887
Broadcasting–Diversified–2.3%
DIRECTV, Class A(a)		391,386		13,275,813
Time Warner Cable, Inc.		435,982		22,705,943
				35,981,756
Communications Equipment–1.0%
Cisco Systems, Inc.(a)		739,611		15,761,110
Computer Hardware–1.8%
Dell, Inc.(a)		940,798		11,346,024
Hewlett-Packard Co.		383,197		16,584,766
				27,930,790
Data Processing & Outsourced Services–0.3%
Western Union Co.		278,095		4,146,396
Department Stores–0.8%
J.C. Penney Co., Inc.		351,432		7,548,759
Macy’s, Inc.		260,165		4,656,954
				12,205,713
Diversified Banks–1.8%
U.S. Bancorp		481,681		10,765,570
Wells Fargo & Co.		649,981		16,639,514
				27,405,084
Diversified Chemicals–0.6%
Du Pont (E.I.) de Nemours & Co.		265,155		9,171,711
Drug Retail–1.1%
CVS Caremark Corp.		586,315		17,190,756
Electric Utilities–0.3%
American Electric Power Co., Inc.		132,400		4,276,520
Electrical Components & Equipment–0.8%
Emerson Electric Co.		269,775		11,786,470
Electronic Equipment Manufacturers–0.1%
Cognex Corp.		77,765		1,367,109
General Merchandise Stores–0.4%
Target Corp.		117,878		5,796,061
Health Care Distributors–1.6%
Cardinal Health, Inc.		743,311		24,982,683
Health Care Equipment–0.3%
Boston Scientific Corp.(a)		874,337		5,071,155
Home Improvement Retail–1.7%
Home Depot, Inc.		462,571		12,984,368
Lowe’s Cos., Inc.		668,721		13,655,283
				26,639,651
Household Products–0.5%
Procter & Gamble Co.		120,800		7,245,584
Hypermarkets & Super Centers–2.0%
Wal-Mart Stores, Inc.		643,867		30,950,686
Industrial Conglomerates–2.8%
General Electric Co.		1,350,889		19,479,819
Textron, Inc.		92,599		1,591,187
Tyco International Ltd. (Switzerland)		605,400		21,328,242
				42,399,248
Industrial Machinery–1.0%
Ingersoll-Rand PLC (Ireland)		458,700		15,820,563
Integrated Oil & Gas–5.7%
BP PLC–ADR (United Kingdom)		227,139		6,559,774
Chevron Corp.		422,300		28,657,278
ConocoPhillips		465,930		22,872,504
Royal Dutch Shell PLC–ADR (United Kingdom)		428,734		21,531,022
Total SA–ADR (France)		196,230		8,759,707
				88,380,285
Integrated Telecommunication Services–3.3%
AT&T, Inc.		862,403		20,861,529
Verizon Communications, Inc.		1,089,864		30,537,989
				51,399,518

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Comstock Fund

	Shares		Value
Internet Software & Services–3.8%
eBay, Inc.(a)		1,937,126	$	37,987,041
Yahoo!, Inc.(a)		1,498,617		20,725,873
				58,712,914
Investment Banking & Brokerage–1.0%
Goldman Sachs Group, Inc.		122,029		16,018,747
IT Consulting & Other Services–0.5%
Accenture PLC, Class A (Ireland)		192,000		7,420,800
Life & Health Insurance–2.9%
Aflac, Inc.		165,873		7,077,801
MetLife, Inc.		635,000		23,977,600
Torchmark Corp.		288,637		14,290,418
				45,345,819
Managed Health Care–1.8%
UnitedHealth Group, Inc.		631,602		17,937,497
WellPoint, Inc.(a)		203,851		9,974,429
				27,911,926
Movies & Entertainment–6.4%
News Corp., Class B		1,409,659		19,523,777
Time Warner, Inc.		782,715		22,628,291
Viacom, Inc., Class B		1,819,002		57,062,093
				99,214,161
Multi-Utilities–0.3%
Sempra Energy		103,200		4,828,728
Oil & Gas Drilling–0.4%
Noble Corp. (Switzerland)(a)		179,192		5,538,825
Oil & Gas Equipment & Services–1.5%
Halliburton Co.		933,769		22,924,029
Oil & Gas Exploration & Production–0.3%
Anadarko Petroleum Corp.		125,890		4,543,370
Other Diversified Financial Services–6.1%
Bank of America Corp.		2,486,054		35,724,596
Citigroup, Inc.(a)		3,992,700		15,012,552
JPMorgan Chase & Co.		1,170,523		42,852,847
				93,589,995
Packaged Foods & Meats–4.4%
Kraft Foods, Inc., Class A		1,431,281		40,075,868
Unilever NV (Netherlands)		1,001,477		27,360,352
				67,436,220
Paper Products–2.7%
International Paper Co.		1,837,517		41,583,010
Personal Products–0.5%
Avon Products, Inc.		302,379		8,013,043
Pharmaceuticals–9.5%
Abbott Laboratories		260,729		12,196,903
Bristol-Myers Squibb Co.		1,728,440		43,107,294
Eli Lilly & Co.		183,193		6,136,965
GlaxoSmithKline PLC–ADR (United Kingdom)		211,777		7,202,536
Merck & Co., Inc.		877,566		30,688,483
Pfizer, Inc.		2,627,971		37,474,866
Roche Holdings AG–ADR (Switzerland)		304,098		10,511,664
				147,318,711
Property & Casualty Insurance–8.2%
Berkshire Hathaway, Inc., Class B(a)		213,550		17,017,799
Chubb Corp.		1,452,901		72,659,579
Travelers Cos., Inc.		751,102		36,991,774
				126,669,152
Regional Banks–1.4%
PNC Financial Services Group, Inc.		369,989		20,904,378
Semiconductor Equipment–0.5%
KLA-Tencor Corp.		251,619		7,015,138
Semiconductors–1.4%
Intel Corp.		1,146,235		22,294,271
Soft Drinks–1.4%
Coca-Cola Co.		332,496		16,664,700
PepsiCo, Inc.		81,100		4,943,045
				21,607,745
Systems Software–0.3%
Microsoft Corp.		205,237		4,722,503
Tobacco–1.6%
Altria Group, Inc.		515,417		10,328,957
Philip Morris International, Inc.		321,036		14,716,290
				25,045,247
Wireless Telecommunication Services–0.8%
Vodafone Group PLC–ADR (United Kingdom)		624,100		12,900,147
Total Long-Term Investments–96.7% (Cost $1,869,125,928)				1,493,765,308

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Comstock Fund

	Shares		Value
Money Market Funds–2.4%
Liquid Assets Portfolio–Institutional Class(b)		18,348,082	$	18,348,082
Premier Portfolio–Institutional Class(b)		18,348,082		18,348,082
Total Money Market Funds–2.4% (Cost $36,696,164)				36,696,164
TOTAL INVESTMENTS–99.1% (Cost $1,905,822,092)				1,530,461,472
OTHER ASSETS IN EXCESS OF LIABILITIES–0.9%				14,299,105
NET ASSETS–100.0%			$	1,544,760,577

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.

(a)	Non-income producing security.
(b)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

Financials	23.5	%
Consumer Discretionary	16.4
Health Care	13.3
Consumer Staples	11.5
Information Technology	9.7
Energy	7.9
Industrials	5.6
Telecommunication Services	4.2
Materials	4.0
Utilities	0.6
Money Market Funds Plus Other Assets in Excess of Liabilities	3.3

Fair Value Measurements

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below. (See Note 1(B) in the Notes to Financial Statements for further information regarding fair value measurements.)

	Level 1		Level 2		Level 3
			Other Significant		Significant
	Quoted Prices		Observable Inputs		Unobservable Inputs		Total
Equity Securities	$	1,530,461,472	$	—	$	—	$	1,530,461,472

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Comstock Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $1,869,125,928)	$	1,493,765,308
Investments in affiliated money market funds, at value and cost		36,696,164
Receivables:
Investments sold		18,427,657
Fund shares sold		5,147,615
Dividends		3,896,500
Other		624
Total assets		1,557,933,868
Liabilities:
Payables:
Investments purchased		10,584,251
Fund shares repurchased		1,260,785
Distributor and affiliates		716,255
Accrued expenses		612,000
Total liabilities		13,173,291
Net assets	$	1,544,760,577
Net assets consist of:
Capital (par value of $0.001 per share with an unlimited number of shares authorized)	$	2,473,767,576
Accumulated undistributed net investment income		14,512,004
Net unrealized depreciation		(375,360,620	)
Accumulated net realized loss		(568,158,383	)
Net assets	$	1,544,760,577
Net assets value, offering price and redemption price per share:
Series I Shares
(Based on net assets of $128,669,050 and 13,518,449 shares of beneficial interest issued and outstanding)	$	9.52
Series II Shares
(Based on net assets of $1,416,091,527 and 149,143,243 shares of beneficial interest issued and outstanding)	$	9.49

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment Income:
Dividends (net of foreign withholding taxes of $345,230)	$	24,242,025
Interest		38,074
Total income		24,280,099
Expenses:
Investment advisory fee		6,105,869
Distribution (12b-1) and service fees		2,546,280
Accounting and administrative expenses		503,162
Professional fees		56,438
Reports to shareholders		56,222
Trustees’ fees and related expenses		52,983
Custody		40,777
Transfer agent fees		7,934
Other		60,037
Total expenses		9,429,702
Net investment income	$	14,850,397
Realized and unrealized gain/loss:
Realized gain/loss:
Investments	$	56,807,022
Futures		(11,884,840	)
Net realized gain		44,922,182
Unrealized appreciation/depreciation:
Beginning of the period		(217,426,062	)
End of the period		(375,360,620	)
Net unrealized depreciation during the period		(157,934,558	)
Net realized and unrealized loss	$	(113,012,376	)
Net decrease in net assets from operations	$	(98,161,979	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Comstock Fund

Statements of Changes in Net Assets

(Unaudited)

	For the			For the
	six months ended			year ended
	June 30, 2010			December 31, 2009
From Investment Activities:
Operations:
Net investment income	$	14,850,397		$	36,407,520
Net realized gain/loss		44,922,182			(111,063,024	)
Net unrealized appreciation/depreciation during the period		(157,934,558	)		592,297,754
Change in net assets from operations		(98,161,979	)		517,642,250
Distributions from net investment income:
Series I shares		(193,187	)		(8,041,700	)
Series II shares		(2,889,112	)		(95,569,652	)
Total distributions		(3,082,299	)		(103,611,352	)
Net change in net assets from investment activities		(101,244,278	)		414,030,898
From capital transactions:
Proceeds from shares sold		55,256,740			193,807,400
Net asset value of shares issued through dividend reinvestment		3,082,299			103,611,352
Cost of shares repurchased		(725,713,934	)		(859,429,553	)
Net change in net assets from capital transactions		(667,374,895	)		(562,010,801	)
Total decrease in net assets		(768,619,173	)		(147,979,903	)
Net assets:
Beginning of the period		2,313,379,750			2,461,359,653
End of the period (including accumulated undistributed net investment income of $14,512,004 and $2,743,906, respectively)	$	1,544,760,577		$	2,313,379,750

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Comstock Fund

Financial Highlights

(Unaudited)

  The following schedule presents financial highlights for one share of the Fund outstanding throughout the periods indicated.

	Six months ended			Year ended December 31,
	June 30, 2010			2009			2008			2007			2006			2005
Series I Shares
Net asset value, beginning of the period	$	10.11		$	8.25		$	13.86		$	14.75		$	13.69		$	13.73
Net investment income(a)		0.08			0.16			0.26			0.30			0.30			0.26
Net realized and unrealized gain/loss		(0.66	)		2.12			(4.93	)		(0.60	)		1.81			0.31
Total from investment operations		(0.58	)		2.28			(4.67	)		(0.30	)		2.11			0.57
Less:
Distributions from net investment income		0.01			0.42			0.30			0.26			0.21			0.16
Distributions from net realized gain		—			—			0.64			0.33			0.84			0.45
Total distributions		0.01			0.42			0.94			0.59			1.05			0.61
Net asset value, end of the period	$	9.52		$	10.11		$	8.25		$	13.86		$	14.75		$	13.69
Total return		(5.71	)%*		28.78	%		(35.67	)%		(2.04	)%		16.28	%		4.37	%
Net assets at end of the period (In millions)	$	128.7		$	148.1		$	192.5		$	309.6		$	400.7		$	402.2
Ratio of Expenses to average net assets(b)		0.64	%		0.62	%		0.60	%		0.59	%		0.59	%		0.59	%
Ratio of net investment income to average net assets		1.62	%		1.91	%		2.38	%		2.03	%		2.17	%		2.00	%
Portfolio turnover		10	%*		27	%		38	%		25	%		27	%		28	%

	Six months ended			Year ended December 31,
	June 30, 2010			2009			2008			2007			2006			2005
Series II Shares
Net asset value, beginning of the period	$	10.10		$	8.22		$	13.80		$	14.70		$	13.65		$	13.69
Net investment income (a)		0.07			0.14			0.23			0.26			0.26			0.23
Net realized and unrealized gain/loss		(0.67	)		2.11			(4.91	)		(0.59	)		1.81			0.31
Total from investment operations		(0.60	)		2.25			(4.68	)		(0.33	)		2.07			0.54
Less:
Distributions from net investment income		0.01			0.37			0.26			0.24			0.18			0.13
Distributions from net realized gain		—			—			0.64			0.33			0.84			0.45
Total distributions		0.01			0.37			0.90			0.57			1.02			0.58
Net asset value, end of the period	$	9.49		$	10.10		$	8.22		$	13.80		$	14.70		$	13.65
Total return(c)		(5.92	)%*		28.41	%		(35.80	)%		(2.33	)%		16.04	%		4.11	%
Net assets at end of the period (In millions)	$	1,416.1		$	2,165.3		$	2,268.8		$	3,521.5		$	3,440.8		$	2,421.4
Ratio of expenses to average net assets(b)		0.88	%		0.87	%		0.85	%		0.84	%		0.84	%		0.84	%
Ratio of net investment income to average net assets		1.34	%		1.63	%		2.13	%		1.78	%		1.91	%		1.76	%
Portfolio turnover		10	%*		27	%		38	%		25	%		27	%		28	%

*	Non-Annualized
(a)	Based on average shares outstanding.
(b)	The Ratio of Expenses to Average Net Assets does not reflect credits earned on cash balances. If these credits were reflected as a reduction of expenses, the ratio would decrease by 0.01% for the year ended December 31, 2005.
(c)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.
	On June 1, 2010, the Fund’s former Class I and Class II Shares were reorganized into Series I and Series II Shares, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Comstock Fund

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Comstock Fund (the “Fund”) is organized as a series of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance Funds, (the “Trust”), a Delaware statutory trust, and is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust consists of forty-one 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. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Life Investment Trust Comstock Portfolio (the “Acquired Fund”), an investment portfolio of Van Kampen Life Investment Trust. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class I and Class II Shares received Series I and Series II Shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class I and Class II Shares prior to the Reorganization are included with Series I and Series II Shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to seek capital growth and income through investments in equity securities, including common and preferred stocks and securities convertible into common and preferred stocks.

  The Fund currently offers two classes of shares, Series I and Series II Shares, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies.

  The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Invesco Van Kampen V.I. Comstock Fund

	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Fair Value Measurements — GAAP defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
	Level 1— Prices are based on quoted prices in active markets for identical investments.
	Level 2— Prices are based on other significant observable inputs which may include quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.
	Level 3— Prices are based on significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
C.	Security Transactions — Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis.
	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 on the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported on the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share on 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 on 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 on the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
D.	Income and Expenses — Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Income and expenses of the Fund are allocated on a pro rata basis to each class of shares, except for distribution and service fees and incremental transfer agency costs which are unique to each class of shares.
E.	Federal Income Taxes — It is the Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation, as applicable, as the income is earned or capital gains are recorded. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in “Interest Expense” and penalties in “Other” expenses on the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service. Generally, each of the tax years in the four year period ended December 31, 2009, remains subject to examination by taxing authorities.
	The Fund intends to utilize provisions of the federal income tax laws which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. At December 31, 2009, the Fund had an accumulated capital loss carryforward for tax purposes of $598,306,138, which will expire according to the following schedule:

Amount		Expiration Date
$	257,208,309		December 31, 2016
	341,097,829		December 31, 2017

Invesco Van Kampen V.I. Comstock Fund

    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	$	34,542,296
Aggregate unrealized (depreciation) of investment securities		(423,850,211	)
Net unrealized depreciation of investment securities	$	(389,307,915	)
Cost of investments for tax purposes is $1,919,769,387.

F.	Distribution of Income and Gains — The Fund declares and pays dividends at least annually from net investment income and net realized gains, if any. Distributions from net realized gains for book purposes may include short-term capital gains and a portion of futures gains, which are included in ordinary income for tax purposes. Distributions from the Fund are recorded on the ex-distribution date.
	The tax character of distributions paid during the year ended December 31, 2009 was as follows:

Distributions paid from:
Ordinary income	$	103,611,352

    As of December 31, 2009, the component of distributable earnings on a tax basis was as follows:

Undistributed ordinary income $ 3,091,375

    Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of the deferral of losses relating to wash sale transactions.

NOTE 2—Investment Advisory Agreement and Other Transactions with 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	% Per Annum
First $500 million		0	.60%
Over $500 million		0	.55%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Funds, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit the Fund’s expenses (excluding certain items discussed below) of Series I Shares to 0.62% and Series II Shares to 0.87% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Fund’s expenses to exceed the limit reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary or non-routine items; and (v) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Advisor did not waive fees and/or reimburse expenses during the period under this limitation.

  Prior to the Reorganization, Van Kampen had voluntarily agreed to reimburse the Acquired Fund for all expenses as a percentage of average daily net assets in excess of 0.95% and 1.20% for Class I and Class II Shares, respectively. Van Kampen did not waive fees and/or reimburse expenses under this agreement.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the period ended June 30, 2010, the Adviser did not waive any advisory fees under this agreement.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $30,740 for accounting and fund administrative services and reimbursed $340,343 for services provided by insurance companies. Prior to the Reorganization, under separate accounting services and Chief Compliance Officer (“CCO”) employment agreements, Van Kampen Investments Inc. provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $132,079 to Van Kampen Investments Inc.

Invesco Van Kampen V.I. Comstock Fund

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $6,763 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown on the Statement of Operations as “Transfer Agent Fees”.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or Invesco Distributors, Inc. (“IDI”).

  “Trustees’ Fees and Related Expenses” 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’ Fees and Related Expenses” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ Fees and Related Expenses” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  For the period ended June 30, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

  Prior to the Reorganization, the Acquired Fund paid brokerage commissions to Morgan Stanley & Co., Inc., an affiliate of the Acquired Fund, totaling $310,622.

NOTE 3—Share Information

For the six months ended June 30, 2010 and year ended December 31, 2009, transactions were as follows:

	For the						For the
	six months ended						year ended
	June 30, 2010 (a)						December 31, 2009
	Shares			Value			Shares			Value
Sales:
Series I		481,179		$	5,019,578			2,067,749		$	18,516,951
Series II		4,884,337			50,237,162			22,069,383			175,290,449
Total Sales		5,365,516		$	55,256,740			24,137,132		$	193,807,400
Dividend Reinvestment:
Series I		18,487		$	193,187			714,104		$	8,041,700
Series II		277,000			2,889,112			11,583,228			95,569,652
Total Dividend Reinvestment		295,487		$	3,082,299			12,297,332		$	103,611,352
Repurchases:
Series I		(1,629,725	)	$	(16,767,354	)		(11,459,451	)	$	(93,050,713	)
Series II		(70,497,867	)		(708,946,580	)		(95,145,270	)		(766,378,840	)
Total Repurchases		(72,127,592	)	$	(725,713,934	)		(106,604,721	)	$	(859,429,553	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 79% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 4—Investment Transactions

During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investment and money market funds, were $210,781,964 and $822,849,539, respectively.

NOTE 5—Derivative Financial Instruments

A derivative financial instrument in very general terms refers to a security whose value is “derived” from the value of an underlying asset, reference rate or index.

  The Fund may use derivative instruments for a variety of reasons, such as to attempt to protect the Fund against possible changes in the market value of its portfolio or to manage the Fund’s foreign currency exposure or to generate potential gain. All of the Fund’s portfolio holdings, including derivative instruments, are marked to market each day with the change in value reflected in the unrealized appreciation/depreciation. Upon disposition, a realized gain or loss is generally recognized. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts.

  Summarized below are specific types of derivative financial instruments used by the Fund.

Invesco Van Kampen V.I. Comstock Fund

A.

Futures Contracts — The Fund is subject to equity price risk in the normal course of pursing its investment objectives. The Fund may use futures contracts to gain exposure to, or hedge against changes in the value of equities. A futures contract is an agreement involving the delivery of a particular asset on a specified future date at an agreed upon price. Upon entering into futures contracts, the Fund maintains an amount of cash or liquid securities with a value equal to a percentage of the contract amount with either a futures commission merchant pursuant to rules and regulations promulgated in the 1940 Act, or with its custodian in an account in the broker’s name. This amount is known as initial margin. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). When entering into futures contracts, the Fund bears the risk of securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchanges clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against defaults. The risk of loss associated with a futures contract is in excess of the variation margin reflected on the Statement of Assets and Liabilities. Restricted cash, if any, for segregating purposes is shown on the Statement of Assets and Liabilities.

Transactions in futures contracts for the six months ended June 30, 2010, were as follows:

	Contracts
Outstanding at December 31, 2009		-0-
Futures Opened		11,184
Futures Closed		(11,184	)
Outstanding at June 30, 2010		-0-

    The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. GAAP has intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

    The following table sets forth by primary risk exposure the Fund’s realized gains/losses by type of derivative contract for the six months ended June 30, 2010.

Amount of Realized Gain/Loss on Derivative Contracts
Primary Risk Exposure	Futures
Equity Contracts	$	(11,884,840	)

NOTE 6—Distribution and Service Plans

The Trust has entered into a master distribution agreement with IDI to serve as the distributor for the Fund. The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II Shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II Shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II Shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II Shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $2,234,083 to Van Kampen Funds Inc. based on the annual rate of 0.25% of the Acquired Fund’s average daily net assets of Class II Shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed on the Statement of Operations as “Distribution (12b-1) and Service Fees”.

NOTE 7—Indemnifications

Under the Trust’s organizational documents, each trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 8—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco Van Kampen V.I. Comstock Fund

NOTE 9—Change in Independent Registered Public Accounting Firm

In connection with the Reorganization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Comstock Fund

Calculating your ongoing Fund expenses

Expense Example

As a policyholder of the Fund, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

  The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 1/1/10 — 6/30/10.

Actual Expense

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below 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 cost 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. Therefore, the second line of the table is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds that have transactional costs, such as sales charges (loads), or exchanges fees.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses
	Account Value		Account Value		Paid During		Account Value		Paid During
Series	(1/1/10)		(6/30/10)		Period*		(6/30/10)		Period*
I	$	1,000.00	$	942.87	$	3.08	$	1,021.62	$	3.21
II		1,000.00		940.83		4.23		1,020.43		4.41

*  Expenses are equal to the Fund’s annualized expense ratio of 0.64% and 0.88% for Series I and II Shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

  Assumes all dividends and distributions were reinvested.

Invesco Van Kampen V.I. Comstock Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Comstock Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for

breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be

Invesco Van Kampen V.I. Comstock Fund

provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Comstock Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Van Kampen Life Investment Trust Comstock Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		206,723,730		6,459,774		13,400,553		0

Invesco Van Kampen V.I. Comstock Fund

          Invesco Van Kampen V.I. Equity and Income Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIEQI-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-4.55	%
Series II Shares	-4.55
Russell 1000 Value Index▼ (Broad Market Index)	-5.12
Barclays Capital U.S. Government/Credit Index▼ (Style-Specific Index)	5.49

^▼ Lipper Inc.

The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Barclays Capital U.S. Government/Credit Index includes treasuries and agencies that represent the government portion of the index, and includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements to represent the credit interests.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception	5.59	%
5 Years	2.21
1 Year	14.46
Series II Shares
Inception (4/30/03)	5.59	%
5 Years	2.21
1 Year	14.46

Effective June 1, 2010, Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series II shares of Invesco Van Kampen V.I. Equity and Income Fund. Returns shown above for Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Equity and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

     Series I shares incepted on June 1, 2010. Series I shares performance shown prior to that date is that of the predecessor fund’s Class II shares and includes the 12b-1 fees applicable to the predecessor fund’s Class II shares. Class II shares performance reflects any applicable fee waivers or expense reimbursements. The inception date of the predecessor fund’s Class II shares is April 30, 2003.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.71% and 0.76%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.73% and 0.98%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco Van Kampen V.I. Equity and Income Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. Equity and Income Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–62.0%
Aerospace & Defense–0.3%
General Dynamics Corp.		33,000	$	1,932,480
Air Freight & Logistics–0.4%
FedEx Corp.		42,100		2,951,631
Apparel Retail–0.6%
Gap, Inc. (The)		202,700		3,944,542
Asset Management & Custody Banks–0.9%
Janus Capital Group, Inc.		216,299		1,920,735
State Street Corp.		113,300		3,831,806
				5,752,541
Automobile Manufacturers–0.4%
Ford Motor Co.(b)		246,100		2,480,688
Biotechnology–0.8%
Genzyme Corp.(b)		102,632		5,210,627
Cable & Satellite–1.9%
Comcast Corp. (Class A)		406,765		7,065,508
Time Warner Cable, Inc.		99,521		5,183,054
				12,248,562
Communications Equipment–0.9%
Cisco Systems, Inc.(b)		274,220		5,843,628
Computer Hardware–1.8%
Dell, Inc.(b)		377,981		4,558,451
Hewlett-Packard Co.		175,130		7,579,626
				12,138,077
Consumer Electronics–0.7%
Sony Corp. (ADR) (Japan)		162,650		4,339,502
Data Processing & Outsourced Services–0.6%
Western Union Co. (The)		254,982		3,801,782
Diversified Banks–1.1%
US Bancorp		123,232		2,754,235
Wells Fargo & Co.		185,400		4,746,240
				7,500,475
Diversified Chemicals–1.1%
Dow Chemical Co. (The)		179,900		4,267,228
PPG Industries, Inc.		49,000		2,960,090
				7,227,318
Diversified Metals & Mining–0.4%
Freeport-McMoRan Copper & Gold, Inc.		42,100		2,489,373
Diversified Support Services–0.4%
Cintas Corp.		97,000		2,325,090
Drug Retail–0.5%
Walgreen Co.		129,802		3,465,713
Electric Utilities–2.6%
American Electric Power Co., Inc.		273,205		8,824,522
Edison International		63,900		2,026,908
Entergy Corp.		45,457		3,255,630
FirstEnergy Corp.		97,590		3,438,096
				17,545,156
Food Distributors–0.8%
Sysco Corp.		180,700		5,162,599
Health Care Distributors–0.4%
Cardinal Health, Inc.		85,600		2,877,016
Health Care Equipment–0.8%
Covidien PLC (Ireland)		132,617		5,328,551
Home Improvement Retail–1.1%
Home Depot, Inc.		252,016		7,074,089
Human Resource & Employment Services–0.6%
Manpower, Inc.		52,839		2,281,588
Robert Half International, Inc.		81,900		1,928,745
				4,210,333
Hypermarkets & Super Centers–1.1%
Wal-Mart Stores, Inc.		157,057		7,549,730
Industrial Conglomerates–3.7%
General Electric Co.		970,579		13,995,749
Siemens AG (ADR) (Germany)		48,910		4,378,912
Tyco International Ltd.		181,447		6,392,378
				24,767,039
Industrial Machinery–1.3%
Dover Corp.		110,738		4,627,741
Ingersoll-Rand PLC (Ireland)		118,858		4,099,412
				8,727,153
Insurance Brokers–2.0%
Marsh & McLennan Cos., Inc.		589,250		13,287,587
Integrated Oil & Gas–4.6%
ConocoPhillips		95,825		4,704,049
Exxon Mobil Corp.		73,260		4,180,948
Hess Corp.		84,617		4,259,620
Occidental Petroleum Corp.		128,170		9,888,315
Royal Dutch Shell PLC (ADR) (United Kingdom)		146,030		7,333,627
				30,366,559
Integrated Telecommunication Services–0.6%
Verizon Communications, Inc.		143,430		4,018,909

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

	Shares		Value
Internet Software & Services–2.1%
eBay, Inc.(b)		488,650	$	9,582,427
Yahoo!, Inc.(b)		320,298		4,429,721
				14,012,148
Investment Banking & Brokerage–0.9%
Charles Schwab Corp. (The)		413,944		5,869,726
IT Consulting & Other Services–0.6%
Amdocs Ltd.(b)		147,392		3,957,475
Life & Health Insurance–0.4%
Principal Financial Group, Inc.		124,699		2,922,945
Managed Health Care–0.9%
UnitedHealth Group, Inc.		212,140		6,024,776
Motorcycle Manufacturers–0.3%
Harley-Davidson, Inc.		93,120		2,070,058
Movies & Entertainment–3.1%
Time Warner, Inc.		291,820		8,436,516
Viacom, Inc. (Class B)		379,595		11,907,895
				20,344,411
Multi-Utilities–0.2%
PG&E Corp.		34,267		1,383,825
Office Services & Supplies–0.4%
Avery Dennison Corp.		78,700		2,528,631
Oil & Gas Equipment & Services–0.8%
Schlumberger Ltd.		89,930		4,976,726
Oil & Gas Exploration & Production–1.6%
Anadarko Petroleum Corp.		126,822		4,577,006
Devon Energy Corp.		66,200		4,032,904
Noble Energy, Inc.		32,300		1,948,659
				10,558,569
Other Diversified Financial Services–5.3%
Bank of America Corp.		727,625		10,455,971
Citigroup, Inc.		1,150,904		4,327,399
JPMorgan Chase & Co.		561,940		20,572,624
				35,355,994
Packaged Foods & Meats–1.9%
Kraft Foods, Inc. (Class A)		337,400		9,447,200
Unilever N.V. (NY Registered Shares) (Netherlands)		108,490		2,963,947
				12,411,147
Personal Products–0.6%
Avon Products, Inc.		160,904		4,263,956
Pharmaceuticals–4.9%
Abbott Laboratories		67,350		3,150,633
Bayer AG (ADR) (Germany)		78,110		4,391,586
Bristol-Myers Squibb Co.		314,420		7,841,635
Merck & Co., Inc.		198,588		6,944,622
Pfizer, Inc.		411,300		5,865,138
Roche Holding AG (ADR) (Switzerland)		124,720		4,311,159
				32,504,773
Property & Casualty Insurance–0.8%
Chubb Corp.		99,556		4,978,796
Regional Banks–2.4%
BB&T Corp.		142,800		3,757,068
Fifth Third Bancorp		257,000		3,158,530
PNC Financial Services Group, Inc.		157,280		8,886,320
				15,801,918
Semiconductor Equipment–0.3%
Lam Research Corp.(b)		55,563		2,114,728
Semiconductors–0.7%
Intel Corp.		247,940		4,822,433
Soft Drinks–0.5%
Coca-Cola Co. (The)		66,960		3,356,035
Wireless Telecommunication Services–0.9%
Vodafone Group PLC (ADR) (United Kingdom)		302,200		6,246,474
Total Common Stocks & Other Equity Interests (Cost $425,658,678)				411,072,294
	Principal
	Amount
Convertible Bonds–15.0%
Advertising–0.5%
Interpublic Group of Cos., Inc., 4.25%, 03/15/23	$	1,805,000		1,816,281
Interpublic Group of Cos., Inc., 4.75%, 03/15/23		1,638,000		1,676,903
				3,493,184
Application Software–0.3%
Cadence Design Systems, Inc., 1.375%, 12/15/11		153,000		150,705
Cadence Design Systems, Inc., 2.625%, 06/01/15(c)		902,000		881,705
Cadence Design Systems, Inc., 1.50%, 12/15/13		860,000		752,500
				1,784,910
Asset Management & Custody Banks–0.5%
Affiliated Managers Group, Inc., 3.95%, 08/15/38		2,511,000		2,460,780
Janus Capital Group, Inc., 3.25%, 07/15/14		1,013,000		1,020,597
				3,481,377
Auto Parts & Equipment–0.3%
BorgWarner, Inc., 3.50%, 04/15/12		1,772,000		2,294,740
Automobile Manufacturers–0.7%
Ford Motor Co., 4.25%, 11/15/16		3,775,000		4,723,469
Biotechnology–1.8%
Amgen, Inc., 0.375%, 02/01/13		8,090,000		8,029,325
Amylin Pharmaceuticals, Inc., 3.00%, 06/15/14		1,628,000		1,385,835
Cephalon, Inc., 2.50%, 05/01/14		2,659,000		2,805,245
				12,220,405

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

	Principal
	Amount		Value
Cable & Satellite–0.3%
Liberty Global, Inc., 4.50%, 11/15/16(c)	$	1,442,000	$	1,679,930
Casinos & Gaming–0.5%
International Game Technology, 3.25%, 05/01/14(c)		3,013,000		3,314,300
Coal & Consumable Fuels–0.4%
Massey Energy Co., 3.25%, 08/01/15		3,271,000		2,735,374
Communications Equipment–1.0%
Alcatel-Lucent USA, Inc., (Series B), 2.875%, 06/15/25		4,401,000		3,729,847
Ciena Corp., 0.25%, 05/01/13		1,336,000		1,087,170
JDS Uniphase Corp., 1.00%, 05/15/26		662,000		587,525
JDS Uniphase Corp., 1.00%, 05/15/26(c)		1,100,000		976,250
				6,380,792
Computer Storage & Peripherals–0.8%
SanDisk Corp., 1.00%, 05/15/13		6,064,000		5,419,700
Construction & Farm Machinery & Heavy Trucks–0.2%
Navistar International Corp., 3.00%, 10/15/14		967,000		1,138,643
Health Care Services–0.5%
Omnicare, Inc., (Series OCR), 3.25%, 12/15/35		4,060,000		3,379,950
Health Care Equipment–0.2%
Wright Medical Group, Inc., 2.625%, 12/01/14		1,640,000		1,424,750
Health Care Facilities–0.3%
LifePoint Hospitals, Inc., 3.50%, 05/15/14		1,868,000		1,734,905
Hotels, Resorts & Cruise Lines–0.3%
Gaylord Entertainment Co., 3.75%, 10/01/14(c)		1,728,000		1,810,080
Industrial Conglomerates–0.6%
3M CO, 0.00%, 11/21/32(d)		3,312,000		3,001,500
Textron, Inc., (Series TXT), 4.50%, 05/01/13		474,000		688,485
				3,689,985
Investment Banking & Brokerage–0.7%
Goldman Sachs Group, Inc. (The), (Series 0000) (MTN), 1.00%, 03/15/17(c)		3,328,000		3,178,639
Jefferies Group, Inc., 3.875%, 11/01/29		1,414,200		1,332,884
				4,511,523
Life Sciences Tools & Services–0.4%
Life Technologies Corp., 1.50%, 02/15/24		2,545,000		2,809,044
Movies & Entertainment–0.8%
Liberty Media LLC, 3.125%, 03/30/23		4,735,200		4,977,879
Oil & Gas Equipment & Services–0.2%
Helix Energy Solutions Group, Inc., 3.25%, 12/15/25		1,208,000		1,050,960
Pharmaceuticals–1.3%
Allergan Inc, 1.50%, 04/01/26		1,914,000		2,095,830
Endo Pharmaceuticals Holdings, Inc., 1.75%, 04/15/15(c)		1,493,000		1,418,350
King Pharmaceuticals, Inc., 1.25%, 04/01/26		2,368,000		2,063,120
Mylan, Inc., 1.25%, 03/15/12		3,362,000		3,362,000
				8,939,300
Semiconductors–1.0%
Linear Technology Corp., 3.00%, 05/01/27(c)		1,193,000		1,173,614
Linear Technology Corp., 3.00%, 05/01/27		819,000		805,691
Micron Technology, Inc., 1.875%, 06/01/14		3,414,000		3,017,122
Xilinx, Inc., 3.125%, 03/15/37(c)		1,302,000		1,192,958
Xilinx, Inc., 3.125%, 03/15/37		763,000		699,099
				6,888,484
Specialized Finance–0.2%
NASDAQ OMX Group, Inc. (The), 2.50%, 08/15/13		1,601,000		1,526,954
Steel–0.4%
Allegheny Technologies, Inc., 4.25%, 06/01/14		2,058,000		2,657,392
Systems Software–0.5%
Symantec Corp., 0.75%, 06/15/11		1,799,000		1,792,254
Symantec Corp., 1.00%, 06/15/13		1,738,000		1,774,932
				3,567,186
Thrifts & Mortgage Finance–0.0%
MGIC Investment Corp., 5.00%, 05/01/17		247,000		221,991
Wireless Telecommunication Services–0.3%
SBA Communications Corp., 1.875%, 05/01/13		1,711,000		1,728,110
Total Convertible Bonds (Cost $96,300,397)				99,585,317
U.S. Treasury Securities–8.1%
U.S. Treasury Bills–0.1%
U.S. Treasury Bill, 0.201%, 10/28/10(e)(f)		345,000		344,842
U.S. Treasury Bonds–2.8%
8.125%, 08/15/21		2,700,000		3,948,750
6.625%, 02/15/27		2,500,000		3,441,016
5.375%, 02/15/31		8,800,000		10,822,625
4.25%, 05/15/39		250,000		264,336
4.625%, 02/15/40		200,000		224,812
				18,701,539
U.S. Treasury Notes–5.2%
1.50%, 12/31/13		500,000		504,141
1.75%, 03/31/14		2,300,000		2,331,984
2.625%, 07/31/14		1,000,000		1,045,000
2.375%, 10/31/14		18,800,000		19,393,375
2.25%, 01/31/15		6,000,000		6,148,125
4.00%, 08/15/18		3,055,000		3,359,545
3.625%, 08/15/19		1,260,000		1,332,056
3.375%, 11/15/19		300,000		310,688
				34,424,914
Total U.S. Treasury Securities (Cost $51,009,867)				53,471,295

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

	Principal
	Amount		Value
Bonds & Notes–7.9%
Advertising–0.0%
WPP Finance (United Kingdom), 8.00%, 09/15/14	$	100,000	$	117,320
Aerospace & Defense–0.0%
Systems 2001 AT LLC, 6.664%, 09/15/13(c)		96,076		101,840
Agricultural Products–0.0%
Bunge Ltd. Finance Corp., 8.50%, 06/15/19		90,000		107,349
Air Freight & Logistics–0.0%
FedEx Corp., 7.25%, 02/15/11		10,000		10,375
Airlines–0.0%
Delta Air Lines, Inc., 6.20%, 07/02/18		230,000		233,162
Application Software–0.0%
Adobe Systems, Inc., 4.75%, 02/01/20		185,000		189,886
Automobile Manufacturers–0.1%
Daimler Finance North America LLC, 7.30%, 01/15/12		170,000		182,937
Daimler Finance North America LLC, 8.50%, 01/18/31		35,000		44,622
Nissan Motor Acceptance Corp., 4.50%, 01/30/15(c)		105,000		108,540
				336,099
Biotechnology–0.0%
Biogen Idec, Inc., 6.875%, 03/01/18		180,000		206,775
Brewers–0.1%
Anheuser-Busch InBev Worldwide, Inc., 7.20%, 01/15/14(c)		215,000		247,484
FBG Finance Ltd. (Australia), 5.125%, 06/15/15(c)		295,000		321,431
				568,915
Broadcasting–0.0%
COX Communications, Inc., 8.375%, 03/01/39(c)		50,000		65,854
Cable & Satellite–0.2%
Comcast Corp., 5.70%, 05/15/18		400,000		439,210
Comcast Corp., 5.15%, 03/01/20		160,000		167,310
Time Warner Cable, Inc., 8.75%, 02/14/19		200,000		252,123
Time Warner Cable, Inc., 6.75%, 06/15/39		130,000		143,680
				1,002,323
Communications Equipment–0.1%
Cisco Systems, Inc., 4.95%, 02/15/19		215,000		236,883
Cisco Systems, Inc., 5.90%, 02/15/39		30,000		33,188
Corning, Inc., 6.625%, 05/15/19		35,000		40,752
				310,823
Construction Materials–0.0%
Holcim US Finance Sarl & Cie SCS (Switzerland), 6.00%, 12/30/19(c)		85,000		91,967
Consumer Finance–0.3%
American Express Co., 8.125%, 05/20/19		555,000		688,467
Capital One Bank USA NA, 8.80%, 07/15/19		400,000		498,087
HSBC Finance Corp., 6.75%, 05/15/11		120,000		125,053
HSBC Finance Corp., 6.375%, 10/15/11		445,000		467,615
				1,779,222
Department Stores–0.0%
Kohl’s Corp., 6.875%, 12/15/37		190,000		228,814
Diversified Banks–1.0%
Abbey National Treasury Services PLC, 3.875%, 11/10/14(c)		210,000		209,583
Ally Financial, Inc., 2.20%, 12/19/12		500,000		514,732
Bank of Nova Scotia (Canada), 2.375%, 12/17/13		360,000		368,629
Barclays Bank PLC (United Kingdom), 6.75%, 05/22/19		485,000		540,992
Commonwealth Bank of Australia (Australia), 5.00%, 10/15/19(c)		285,000		297,721
Credit Suisse, 6.00%, 02/15/18		70,000		72,888
HBOS PLC (United Kingdom), 6.75%, 05/21/18(c)		325,000		307,681
HSBC Finance Corp., 8.00%, 07/15/10		85,000		85,153
Lloyds TSB Bank PLC (United Kingdom), 5.80%, 01/13/20(c)		185,000		174,654
National Australia Bank Ltd., 3.75%, 03/02/15(c)		190,000		195,157
Nordea Bank AB, 4.875%, 01/27/20(c)		245,000		253,829
Rabobank Nederland N.V. (Netherlands), 4.75%, 01/15/20(c)		490,000		502,910
Royal Bank of Scotland PLC (The) (United Kingdom), 4.875%, 03/16/15		420,000		418,383
Santander US Debt SA Unipersonal, 3.724%, 01/20/15(c)		200,000		196,543
Standard Chartered PLC (United Kingdom), 3.85%, 04/27/15(c)		255,000		255,227
Svenska Handelsbanken AB, 5.125%, 03/30/20(c)		240,000		245,840
US Bancorp, 2.00%, 06/14/13		480,000		485,805
US Bank NA, 3.778%, 04/29/20(d)		450,000		457,532
Wells Fargo & Co., 5.625%, 12/11/17		795,000		866,957
				6,450,216
Diversified Capital Markets–0.2%
Credit Suisse (Switzerland), 5.30%, 08/13/19		170,000		181,007
Credit Suisse AG (Switzerland), 5.40%, 01/14/20		550,000		548,979
UBS AG (Switzerland), (MTN), 5.875%, 12/20/17		225,000		238,809
				968,795
Diversified Metals & Mining–0.1%
Anglo American Capital PLC (United Kingdom), 9.375%, 04/08/19(c)		300,000		383,317
Freeport-McMoRan Copper & Gold, Inc., 8.375%, 04/01/17		60,000		66,131
Rio Tinto Finance USA Ltd. (Australia), 9.00%, 05/01/19		265,000		347,160
				796,608

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

	Principal
	Amount		Value
Drug Retail–0.1%
CVS Pass-Through Trust, 6.036%, 12/10/28	$	356,718	$	372,086
CVS Pass-Through Trust, 8.353%, 07/10/31(c)		34,465		42,023
				414,109
Electric Utilities–0.2%
EDF SA, 4.60%, 01/27/20(c)		125,000		128,418
Enel Finance International SA, 5.125%, 10/07/19(c)		325,000		325,751
FirstEnergy Solutions Corp., 6.05%, 08/15/21		350,000		358,422
Iberdrola Finance Ireland Ltd. (Ireland), 3.80%, 09/11/14(c)		125,000		124,696
Ohio Power Co., (Series M), 5.375%, 10/01/21		100,000		108,025
PPL Energy Supply LLC, 6.30%, 07/15/13		140,000		155,484
Progress Energy, Inc., 7.05%, 03/15/19		270,000		320,833
				1,521,629
Electrical Components & Equipment–0.0%
Cooper US, Inc., 5.25%, 11/15/12		165,000		178,082
Electronic Components–0.0%
Amphenol Corp., 4.75%, 11/15/14		115,000		121,395
Corning, Inc., 7.25%, 08/15/36		55,000		65,391
				186,786
Environmental & Facilities Services–0.0%
Republic Services, Inc., 5.50%, 09/15/19(c)		155,000		167,664
Fertilizers & Agricultural Chemicals–0.1%
Mosaic Co. (The), 7.625%, 12/01/16(c)		260,000		285,350
Potash Corp. of Saskatchewan, Inc. (Canada), 5.875%, 12/01/36		35,000		37,680
				323,030
Food Retail–0.2%
Delhaize America, Inc., 9.00%, 04/15/31		135,000		183,100
Delhaize Group SA (Belgium), 5.875%, 02/01/14		165,000		184,377
WM Wrigley Jr Co, 1.912%, 06/28/11(c)(d)		650,000		652,031
				1,019,508
Gas Utilities–0.0%
QEP Resources Inc, 6.80%, 04/01/18		200,000		209,569
Gold–0.1%
Newmont Mining Corp., 5.125%, 10/01/19		315,000		336,883
Health Care Services–0.1%
Medco Health Solutions, Inc., 7.125%, 03/15/18		280,000		334,926
Quest Diagnostics, Inc., 4.75%, 01/30/20		245,000		246,724
				581,650
Health Care Distributors–0.0%
AmerisourceBergen Corp., 4.875%, 11/15/19		115,000		118,635
Health Care Equipment–0.1%
CareFusion Corp., 4.125%, 08/01/12		355,000		371,748
Home Improvement Retail–0.0%
Home Depot, Inc., 5.875%, 12/16/36		210,000		214,746
Hypermarkets & Super Centers–0.0%
Wal-Mart Stores, Inc., 5.25%, 09/01/35		120,000		125,836
Wal-Mart Stores, Inc., 6.50%, 08/15/37		45,000		54,690
				180,526
Industrial Conglomerates–0.7%
General Electric Capital Corp., 2.625%, 12/28/12		3,150,000		3,276,375
General Electric Capital Corp., 5.625%, 05/01/18		295,000		314,270
General Electric Capital Corp., (MTN), 5.875%, 01/14/38		120,000		117,573
General Electric Capital Corp., (Series G), 6.00%, 08/07/19		595,000		646,725
General Electric Co., 5.25%, 12/06/17		440,000		480,320
				4,835,263
Integrated Oil & Gas–0.1%
Hess Corp., 6.00%, 01/15/40		175,000		181,685
Shell International Finance BV (Finland), 3.10%, 06/28/15		275,000		279,302
				460,987
Integrated Telecommunication Services–0.4%
AT&T Corp., 8.00%, 11/15/31		85,000		109,207
AT&T, Inc., 6.15%, 09/15/34		125,000		133,211
AT&T, Inc., 6.30%, 01/15/38		610,000		664,969
Deutsche Telekom International Finance BV (Netherlands), 8.75%, 06/15/30		140,000		180,763
NBC Universal, Inc., 5.15%, 04/30/20(c)		200,000		209,249
Telecom Italia Capital SA (Luxembourg), 6.999%, 06/04/18		325,000		346,925
Telecom Italia Capital SA (Luxembourg), 7.175%, 06/18/19		140,000		150,632
Telefonica Europe BV (Netherlands), 8.25%, 09/15/30		295,000		364,974
Verizon Communications, Inc., 6.35%, 04/01/19		235,000		274,099
Verizon Communications, Inc., 8.95%, 03/01/39		280,000		404,166
				2,838,195
Investment Banking & Brokerage–0.3%
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18		285,000		331,706
Goldman Sachs Group, Inc. (The), 6.15%, 04/01/18		805,000		843,064
Goldman Sachs Group, Inc. (The), 6.75%, 10/01/37		365,000		359,892
TD Ameritrade Holding Corp., 5.60%, 12/01/19		250,000		264,058
				1,798,720
IT Consulting & Other Services–0.0%
International Business Machines Corp., 5.60%, 11/30/39		220,000		244,413
Life & Health Insurance–0.2%
Aegon N.V. (Netherlands), 4.625%, 12/01/15		250,000		259,070
MetLife, Inc., 7.717%, 02/15/19		40,000		47,476
Pacific LifeCorp, 6.00%, 02/10/20(c)		175,000		182,021
Principal Financial Group, Inc., 8.875%, 05/15/19		140,000		172,031

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

	Principal
	Amount		Value
Life & Health Insurance–(continued)
Prudential Financial, Inc., (MTN), 4.75%, 09/17/15	$	230,000	$	238,423
Prudential Financial, Inc., (MTN), 6.625%, 12/01/37		95,000		99,289
Prudential Financial, Inc., (Series D), 7.375%, 06/15/19		70,000		80,421
				1,078,731
Managed Health Care–0.0%
UnitedHealth Group, Inc., 6.00%, 02/15/18		195,000		218,726
Movies & Entertainment–0.1%
News America, Inc., 7.85%, 03/01/39		270,000		336,459
Time Warner, Inc., 5.875%, 11/15/16		120,000		135,201
Time Warner, Inc., 7.70%, 05/01/32		170,000		204,224
Vivendi SA, 6.625%, 04/04/18(c)		130,000		150,637
				826,521
Multi-line Insurance–0.1%
AIG SunAmerica Global Financing VI, 6.30%, 05/10/11(c)		405,000		407,278
Multi-Utilities–0.1%
CenterPoint Energy Resources Corp., 6.25%, 02/01/37		75,000		79,240
CenterPoint Energy Resources Corp., (Series B), 7.875%, 04/01/13		70,000		80,454
Nisource Finance Corp., 6.80%, 01/15/19		175,000		197,371
				357,065
Office Electronics–0.0%
Xerox Corp., 6.35%, 05/15/18		120,000		133,541
Xerox Corp., 5.625%, 12/15/19		45,000		48,114
				181,655
Office REIT’s–0.1%
Boston Properties LP, 5.875%, 10/15/19		175,000		188,020
Digital Realty Trust LP, 4.50%, 07/15/15		305,000		304,076
				492,096
Oil & Gas Equipment & Services–0.0%
Weatherford International Ltd. (Switzerland), 9.625%, 03/01/19		245,000		296,767
Oil & Gas Exploration & Production–0.1%
Petrobras International Finance Co. (Cayman Islands), 5.75%, 01/20/20		410,000		412,452
Oil & Gas Storage & Transportation–0.2%
Energy Transfer Partners LP, 8.50%, 04/15/14		200,000		231,976
Enterprise Products Operating LLC, 5.25%, 01/31/20		100,000		103,730
Enterprise Products Operating LLC, (Series N), 6.50%, 01/31/19		220,000		245,744
Plains All American Pipeline LP / PAA Finance Corp., 8.75%, 05/01/19		150,000		180,018
Plains All American Pipeline LP / PAA Finance Corp., 6.70%, 05/15/36		175,000		176,188
Spectra Energy Capital LLC, 7.50%, 09/15/38		120,000		134,916
Texas Eastern Transmission LP, 7.00%, 07/15/32		165,000		197,331
				1,269,903
Other Diversified Financial Services–1.4%
Bank of America Corp., 5.75%, 12/01/17		865,000		904,041
Bank of America Corp., 7.625%, 06/01/19		70,000		80,382
Bank of America Corp., (Series L), 5.65%, 05/01/18		280,000		287,394
Citibank NA, 1.75%, 12/28/12		1,500,000		1,528,522
Citigroup Funding, Inc., 2.25%, 12/10/12		3,090,000		3,186,114
Citigroup Inc, 6.125%, 11/21/17		460,000		483,416
Citigroup Inc, 6.125%, 05/15/18		355,000		372,820
Citigroup Inc, 8.50%, 05/22/19		415,000		495,181
General Electric Capital Corp., 5.50%, 01/08/20		140,000		148,415
JPMorgan Chase & Co., 6.00%, 01/15/18		590,000		652,910
JPMorgan Chase & Co., 4.95%, 03/25/20		185,000		192,087
Merrill Lynch & Co., Inc., (MTN), 6.875%, 04/25/18		285,000		305,213
Xlliac Global Funding, 4.80%, 08/10/10(c)		315,000		315,094
				8,951,589
Packaged Foods & Meats–0.2%
ConAgra Foods, Inc., 7.00%, 10/01/28		40,000		47,487
ConAgra Foods, Inc., 8.25%, 09/15/30		180,000		235,658
Grupo Bimbo SAB de CV, 4.875%, 06/30/20(c)		270,000		272,358
Kraft Foods, Inc., 5.375%, 02/10/20		200,000		214,317
Kraft Foods, Inc., 7.00%, 08/11/37		275,000		325,632
Kraft Foods, Inc., 6.875%, 01/26/39		180,000		211,553
				1,307,005
Paper Packaging–0.0%
Sealed Air Corp., 7.875%, 06/15/17(c)		95,000		99,413
Pharmaceuticals–0.2%
GlaxoSmithKline Capital, Inc., 5.65%, 05/15/18		75,000		85,868
GlaxoSmithKline Capital, Inc., 6.375%, 05/15/38		70,000		83,725
Merck & Co., Inc., 5.00%, 06/30/19		280,000		312,587
Pfizer, Inc., 6.20%, 03/15/19		650,000		776,299
				1,258,479
Property & Casualty Insurance–0.1%
Allstate Corp. (The), 7.45%, 05/16/19		140,000		165,220
Catlin Insurance Co. Ltd. (Bermuda), 7.249%, 10/19/49(c)(d)(g)		220,000		177,082
				342,302
Railroads–0.0%
CSX Corp., 6.15%, 05/01/37		75,000		82,002
Union Pacific Corp., 6.125%, 02/15/20		105,000		121,628
				203,630

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

	Principal
	Amount		Value
Real Estate Management & Development–0.0%
Brookfield Asset Management, Inc. (Canada), 5.80%, 04/25/17	$	210,000	$	212,716
Brookfield Asset Management, Inc. (Canada), 7.125%, 06/15/12		10,000		10,745
				223,461
Regional Banks–0.2%
KeyBank NA, 3.20%, 06/15/12		500,000		523,959
Nationwide Building Society (United Kingdom), 6.25%, 02/25/20(c)		485,000		522,861
PNC Funding Corp., 6.70%, 06/10/19		165,000		189,914
PNC Funding Corp., 5.125%, 02/08/20		330,000		344,636
				1,581,370
Reinsurance–0.1%
Platinum Underwriters Finance, Inc., (Series B), 7.50%, 06/01/17		145,000		154,290
Reinsurance Group of America, Inc., 6.45%, 11/15/19		150,000		160,232
				314,522
Research & Consulting Services–0.0%
ERAC USA Finance LLC, 2.75%, 07/01/13(c)		205,000		206,240
Residential REIT’s–0.0%
AvalonBay Communities, Inc., (MTN), 6.10%, 03/15/20		160,000		177,784
Restaurants–0.0%
Yum! Brands, Inc., 6.25%, 03/15/18		100,000		114,615
Yum! Brands, Inc., 5.30%, 09/15/19		155,000		167,163
				281,778
Retail REIT’s–0.1%
Simon Property Group LP, 6.75%, 05/15/14		195,000		217,808
Simon Property Group LP, 5.65%, 02/01/20		25,000		26,538
WEA Finance LLC / WT Finance Aust Pty Ltd., 6.75%, 09/02/19(c)		225,000		250,003
				494,349
Semiconductor Equipment–0.0%
KLA-Tencor Corp., 6.90%, 05/01/18		135,000		151,701
Specialized Finance–0.0%
NASDAQ OMX Group, Inc. (The), 5.55%, 01/15/20		240,000		245,948
Steel–0.1%
ArcelorMittal (Luxembourg), 9.85%, 06/01/19		410,000		512,893
Vale Overseas Ltd. (Cayman Islands), 5.625%, 09/15/19		160,000		169,622
				682,515
Tobacco–0.1%
BAT International Finance PLC (United Kingdom), 9.50%, 11/15/18(c)		150,000		197,237
Philip Morris International, Inc., 5.65%, 05/16/18		210,000		230,631
				427,868
Trucking–0.0%
Ryder System, Inc., (MTN), 7.20%, 09/01/15		95,000		110,584
Total Bonds & Notes (Cost $49,339,704)				52,170,218
U.S. Government Agency Obligations–0.9%
U.S. Government Agencies–0.9%
Federal Home Loan Mortgage Corp., 3.00%, 07/28/14		900,000		948,057
Federal Home Loan Mortgage Corp., 5.00%, 04/18/17		1,500,000		1,713,753
Federal Home Loan Mortgage Corp., 4.875%, 06/13/18		1,000,000		1,133,924
Federal Home Loan Mortgage Corp., 6.75%, 03/15/31		650,000		862,428
Federal National Mortgage Association, 4.375%, 10/15/15		1,520,000		1,684,389
				6,342,551
Total U.S. Government Agency Obligations (Cost $6,096,426)				6,342,551
	Shares
Convertible Preferred Stocks–2.2%
Agricultural Products–0.2%
Archer-Daniels-Midland Co. $3.125		34,250		1,240,193
Health Care Services–0.3%
Omnicare Capital Trust II (Series B) $2.00		44,400		1,580,640
Health Care Facilities–0.2%
Healthsouth Corp. $65.00		1,785		1,475,303
Multi-Utilities–0.3%
CenterPoint Energy, Inc. $0.77(d)		62,215		1,822,899
Office Services & Supplies–0.3%
Avery Dennison Corp. $3.938		52,960		2,113,104
Oil & Gas Storage & Transportation–0.5%
El Paso Energy Capital Trust I $2.375		95,499		3,485,713
Regional Banks–FDIC Guaranteed–0.4%
KeyCorp (Series A) $7.75		30,290		2,885,122
Total Convertible Preferred Stocks (Cost $14,854,736)				14,602,974
	Principal
	Amount
Foreign Government Obligations–0.1%
Export-Import Bank of Korea (South Korea), 4.125%, 09/09/15	$	100,000		101,596
Republic of Italy (Italy), 6.875%, 09/27/23		290,000		331,112
Korea Development Bank (South Korea), 4.375%, 08/10/15		200,000		205,024
Total Foreign Government Obligations (Cost $618,369)				637,732

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

	Principal
	Amount		Value
Foreign Government & Corporate Bonds–0.0%
Diversified Banks–0.0%
Standard Chartered Bank (United Kingdom)(c)	$	100,000	$	106,309
Total Foreign Government & Corporate Bonds (Cost $106,303)				106,309
Asset-Backed Security–0.0%
Harley-Davidson Motorcycle Trust, 2005-3 A2, 4.41%, 06/15/12 (Cost $44,989)		44,998		45,069
U.S. Government Agencies–Mortgage-Backed Securities–0.0%
Federal Home Loan Mortgage Corp.–0.0%
Federal Home Loan Mortgage Corp., 6.50%, 02/01/26		9,068		10,064
Federal National Mortgage Association (FNMA)–0.0%
Federal National Mortgage Association, 9.50%, 04/01/30		15,923		18,713
Total U.S. Government Agencies–Mortgage-Backed Securities (Cost $27,590)				28,777
	Shares
Money Market Funds–3.6%
Liquid Assets Portfolio–Institutional Class(h)		12,033,269		12,033,269
Premier Portfolio–Institutional Class(h)		12,033,269		12,033,269
Total Money Market Funds (Cost $24,066,538)				24,066,538
TOTAL INVESTMENTS (Cost $668,123,597)–99.8%				662,129,074
OTHER ASSETS LESS LIABILITIES–0.2%				1,067,889
NET ASSETS–100.0%			$	663,196,963

Investment Abbreviations:

ADR	– American Depositary Receipt.
MTN	– Medium Term Note.
REIT	– Real Estate Investment Trust.

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $24,407,119 which represented 3.7% of the Fund’s Net Assets.
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(e)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund
(f)	All or portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4.
(g)	Perpetual bond with no specified maturity date.
(h)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2010

Common Stocks & Other Equity Interests	62.0	%
Convertible Bonds	15.0
U.S. Treasury Securities	8.1
Bonds & Notes	7.9
Convertible Preferred Stocks	2.2
U.S. Government Agency Obligations	0.9
Foreign Government Obligations	0.1
Foreign Government & Corporate Bonds	0.0
Asset-Backed Security	0.0
U.S. Government Agencies – Mortgage-Backed Securities	0.0
Money Market Funds Plus Other Assets Less Liabilities	3.8

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $644,057,059)	$	638,062,536
Investments in affiliated money market funds, at value and cost		24,066,538
Total investments, at value (Cost $668,123,597)		662,129,074
Receivables for:
Investments sold		1,641,247
Fund shares sold		527,998
Dividends and interest		2,728,906
Fund expenses absorbed		123,750
Other assets		12,623
Total assets		667,163,598
Liabilities:
Payables for:
Investments purchased		3,481,930
Fund shares reacquired		101,346
Variation margin		25,860
Accrued fees to affiliates		282,243
Accrued other operating expenses		75,256
Total liabilities		3,966,635
Net assets applicable to shares outstanding	$	663,196,963
Net assets consist of:
Shares of beneficial interest	$	729,367,263
Undistributed net investment income		3,710,708
Undistributed net realized gain (loss)		(63,535,123	)
Unrealized appreciation (depreciation)		(6,345,885	)
	$	663,196,963
Net Assets:
Series I	$	9,754
Series II	$	663,187,209
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		815
Series II		55,421,998
Series I:
Net asset value per share	$	11.97
Series II:
Net asset value per share	$	11.97

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $32,198)	$	5,417,168
Dividends from affiliated money market funds		3,624
Interest		3,351,630
Total investment income		8,772,422
Expenses:
Advisory fees		1,398,894
Administrative services fees		880,621
Custodian fees		16,536
Distribution fees — Series II		866,382
Transfer agent fees		3,214
Trustees’ and officers’ fees and benefits		8,727
Other		86,648
Total expenses		3,261,022
Less: Fees waived		(714,259	)
Net expenses		2,546,763
Net investment income		6,225,659
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		10,636,222
Futures contracts		(693,821	)
Swap agreements		5,123
		9,947,524
Change in net unrealized appreciation (depreciation) of:
Investment securities		(48,058,929	)
Futures contracts		(811,576	)
Swap agreements		1,778
		(48,868,727	)
Net realized and unrealized gain (loss)		(38,921,203	)
Net increase (decrease) in net assets resulting from operations	$	(32,695,544	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Equity and Income Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	6,225,659		$	11,732,832
Net realized gain (loss)		9,947,524			(27,956,625	)
Change in net unrealized appreciation (depreciation)		(48,868,727	)		134,974,013
Net increase (decrease) in net assets resulting from operations		(32,695,544	)		118,750,220
Distributions to shareholders from net investment income — Series II		(13,994,793	)		(15,771,072	)
Share transactions–net:
Series I		10,000			—
Series II		37,095,516			52,678,233
Net increase in net assets resulting from share transactions		37,105,516			52,678,233
Net increase (decrease) in net assets		(9,584,821	)		155,657,381
Net assets:
Beginning of period		672,781,784			517,124,403
End of period (includes undistributed net investment income of $3,710,708 and $11,479,842, respectively)	$	663,196,963		$	672,781,784

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Equity and Income Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Universal Institutional Funds Equity and Income Portfolio (“the Acquired Fund”), an investment portfolio of The Universal Institutional Funds, Inc. The Acquired Fund was reorganized on June 1, 2010 (“the Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class II shares received Series II shares of the Fund.

  Information for the Acquired Fund’s — Class II shares prior to the Reorganization is included with Series II shares of the Fund throughout this report.

  The Fund’s investment objectives are both capital appreciation and current income.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the

Invesco Van Kampen V.I. Equity and Income Fund

	security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

Invesco Van Kampen V.I. Equity and Income Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $150 million		0	.50%
Next $100 million		0	.45%
Next $100 million		0	.40%
Over $350 million		0	.35%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Management Inc. (“MS Investment Management”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.70% and Series II shares to 0.75% of average daily net assets, through at least April 30, 2011. 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 items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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.

  Prior to the Reorganization, MS Investment Management had voluntarily agreed to waive fees and/or reimburse expenses of Class II shares to 1.00% of the Acquired Fund’s average daily net assets.

Invesco Van Kampen V.I. Equity and Income Fund

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the period ended June 30, 2010, MS Investment Management waived advisory fees of $21,238.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $13,756 for accounting and fund administrative services and reimbursed $140,583 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $726,282 to MS Investment Management and JPMorgan Investor Services Co.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provide certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $3,214 to Morgan Stanley Services Company Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. IDI has contractually agreed to waive 0.20% of Rule 12b-1 plan fees on Series II shares through at least June 30, 2012.

  Prior to the Reorganization, the Acquired Fund paid distribution fees to Morgan Stanley Distribution Inc. (the “MSDI”) based on the annual rate of 0.35% of the Acquired Fund’s average daily net assets of Class II shares. MSDI had voluntarily agreed to waive 0.30% distribution fee that it received from the Acquired Fund. MSDI was paid distribution fees of $145,245 after fee waivers of $580,557.

  12b-1 fees before fee waivers under this agreement are shown as Distribution fees in the Statement of Operations. For the six months ended June 30, 2010, fees incurred after fee waivers for Series II shares were $173,361.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Invesco Van Kampen V.I. Equity and Income Fund

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	434,255,146		$	15,486,660	$	—	$	449,741,806
U.S. Treasury Securities		—			53,471,295		—		53,471,295
U.S. Government Sponsored Agency Securities		—			6,371,328		—		6,371,328
Corporate Debt Securities		—			152,499,576		—		152,499,576
Asset-Backed Securities		—			45,069		—		45,069
	$	434,255,146		$	227,873,928	$	—	$	662,129,074
Futures*		(353,139	)		—		—		(353,139	)
Total Investments	$	433,902,007		$	227,873,928	$	—	$	661,775,935

*  Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Futures contracts(a)
Interest rate risk	$	127,215	$	(480,354	)

^(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the six months ended June 30, 2010

The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on
	Statement of Operations
				Swap
	Futures*			Agreements*
Realized Gain (Loss)
Credit risk	$	—		$	5,123
Interest rate risk		(693,821	)		—
Change in Unrealized Appreciation (Depreciation)
Credit risk	$	—		$	1,778
Interest rate risk		(811,576	)		—
Total	$	(1,505,397	)	$	6,901

*  The average value of futures and swap agreements outstanding during the period was $30,031,046 and $12,857, respectively.

Open Futures Contracts
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
U.S. Treasury 2 Year Notes		136		September-2010/Long	$	29,760,625		$	127,215
Subtotal					$	29,760,625		$	127,215
U.S. Treasury 5 Year Notes		112		September-2010/Short		(13,255,375	)		(149,808	)
U.S. Treasury 10 Year Notes		55		September-2010/Short		(6,740,078	)		(114,244	)
U.S. Treasury 30 Year Bonds		73		September-2010/Short		(9,307,500	)		(216,302	)
Subtotal					$	(29,302,953	)	$	(480,354	)
Total					$	457,672		$	(353,139	)

Invesco Van Kampen V.I. Equity and Income Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	23,179,000
December 31, 2017		47,645,000
Total capital loss carryforward	$	70,824,000

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $144,603,403 and $111,703,268, 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	$	29,915,495
Aggregate unrealized (depreciation) of investment securities		(37,077,475	)
Net unrealized appreciation (depreciation) of investment securities	$	(7,161,980	)
Cost of investments for tax purposes is $669,291,054.

Invesco Van Kampen V.I. Equity and Income Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I(b)		815		$	10,000			—		$	—
Series II		4,910,826			64,170,750			10,389,966			116,829,247
Issued as reinvestment of dividends:
Series II		1,110,698			13,994,794			1,504,873			15,771,072
Reacquired:
Series II		(3,152,210	)		(41,070,028	)		(7,373,030	)		(79,922,086	)
Net increase in share activity		2,870,129		$	37,105,516			4,521,809		$	52,678,233

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 82% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b)

Commencement date of June 1, 2010.

Invesco Van Kampen V.I. Equity and Income Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																																	Ratio of net
																											Ratio of			Ratio of			investment
																											expenses			expenses			income to
																											to average			to average			average			Ratio of
					Net gains																						net assets			net assets			net assets			rebate from
					(losses) on																						with fee			without fee			with fee			Morgan
	Net asset				securities						Dividends			Distributions													waivers			waivers			waivers			Stanley
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		and/or			and/or			and/or			Affiliates
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		expenses			expenses			expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			absorbed			net assets			turnover(c)
Series I
One month ended 06/30/10(d)	$	12.27	$	0.12	$	(0.42	)	$	(0.30	)	$	—		$	—		$	—		$	11.97		(2.44	)%	$	10		0.70	%(e)		0.73	%(e)		1.83	%(e)		—	%		17	%
Series II
Six months ended 06/30/10		12.80		0.12		(0.69	)		(0.57	)		(0.26	)		—			(0.26	)		11.97		(4.55	)		663,187		0.73	(e)		0.94	(e)		1.80	(e)		—			17
Year ended 12/31/09		10.77		0.24		2.11			2.35			(0.32	)		—			(0.32	)		12.80		22.49			672,782		0.74	(f)		1.04	(f)		2.09	(f)(g)		0.01			81
Year ended 12/31/08		14.74		0.32		(3.56	)		(3.24	)		(0.31	)		(0.42	)		(0.73	)		10.77		(22.68	)(h)		517,124		0.75	(f)		1.05	(f)		2.50	(f)(g)		0.01			95
Year ended 12/31/07		14.89		0.35		0.17			0.52			(0.28	)		(0.39	)		(0.67	)		14.74		3.36			711,897		0.74	(f)		1.04	(f)		2.31	(f)(g)		0.00	(i)		70
Year ended 12/31/06		13.69		0.32		1.35			1.67			(0.16	)		(0.31	)		(0.47	)		14.89		12.58			570,626		0.78			1.08			2.25	(g)		—			56
Year ended 12/31/05		12.97		0.24		0.71			0.95			(0.09	)		(0.14	)		(0.23	)		13.69		7.38			406,725		0.83			1.13			1.79	(g)		—			46

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Commencement date of June 1, 2010.
(e)	Ratios are annualized and based on average daily net assets (000’s omitted) of $2 and $698,848 for Series I and Series II shares, respectively.
(f)	The ratios reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets”.
(g)	Ratio of net investment income to average net assets without fee waivers and/or expenses absorbed was 1.79%, 2.20%, 2.01%, 1.95% and 1.49% for the years ended December 31, 2009 through December 31, 2005, respectively.
(h)	The Adviser reimbursed the Fund for losses incurred on derivative transactions which breached an investment guideline of the Fund during the period. The impact of this reimbursement is reflected in the total return shown above. Without this reimbursement, the total return for Series II would have been (22.68)%.
(i)	Amount is less than 0.005%.

NOTE 11—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Equity and Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. With the exception of the actual ending account value and expenses of the Series I shares, the example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010. The actual ending account value and expenses of the Series I shares in the below example are based on an investment of $1,000 invested as of close of business June 1, 2010 (the date the share class commenced operations) and held through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period (as of close of business June 1, 2010 through June 30, 2010 for the Series I shares). Because the actual ending account value and expense information in the example is not based upon a six month period for the Series I shares, the ending account value and expense information may not provide a meaningful comparison to mutual funds that provide such information for a full six month period..

Hypothetical example for comparison purposes

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	975.60	$	0.57	$	1,021.32	$	3.51		0.70	%
Series II		1,000.00		954.50		3.54		1,021.17		3.66		0.73

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010, through June 30, 2010 (as of close of business June 1, 2010, through June 30, 2010 for the Series I shares), after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. For the Series I shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 30 (as of close of business June 1, 2010, through June 30, 2010)/365. Because the Series I shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.   Effective June 1, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses of Series II shares to 0.75% of average daily net assets. The annualized expense ratio restated as if this agreement had been in effect throughout the entire most recent fiscal half year is 0.75%.
3	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year is $3.63 for the Series II shares.
4	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in Series I shares of the Fund and other funds because such data is based on a full six month period.   The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year is $3.76 for the Series II shares.

Invesco Van Kampen V.I. Equity and Income Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

  The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Equity and Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services.

Invesco Van Kampen V.I. Equity and Income Fund

The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Equity and Income Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of The Universal Institutional Funds, Inc. — Equity and Income Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		48,048,088		1,441,484		3,456,602		0

Invesco Van Kampen V.I. Equity and Income Fund

         Invesco Van Kampen V.I. Global Tactical
         Asset Allocation Fund
         Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIGTAA-SAR-1

NOT FDIC INSURED| MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-6.33	%
Series II Shares	-6.43
MSCI World Index▼ (Broad Market/Style-Specific Index)	-9.84

^▼ Lipper Inc.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (1/23/09)	13.63	%
1 Year	8.88
Series II Shares
Inception (1/23/09)	13.33	%
1 Year	8.67

Effective June 1, 2010, Class I and Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.98% and 1.23%, respectively. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.58% and 1.83%, 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.

     Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Schedule of Investments

June 30, 2010
(Unaudited)

	Shares		Value
Common Stocks–61.7%
Australia–2.1%
BHP Billiton Ltd.		22,861	$	710,974
Centennial Coal Company Ltd		26,408		97,745
Commonwealth Bank of Australia		852		34,532
Rio Tinto Ltd.		2,622		145,217
Westpac Banking Corp.		14,291		252,369
				1,240,837
Bermuda–1.1%
Allied World Assurance Co. Holdings Ltd.		2,000		90,760
Arch Capital Group Ltd(a)		7,700		573,650
				664,410
Canada–3.4%
Atco, Ltd., Class 1		4,500		201,381
Bank of Montreal		1,500		81,358
BCE, Inc.		38,300		1,117,466
Canadian Imperial Bank of Commerce		1,900		118,046
Canadian Utilities, Ltd., Class A		4,400		187,482
Penn West Energy Trust		10,900		207,853
Royal Bank of Canada		1,600		76,201
				1,989,787
Denmark–1.7%
Coloplast A/S, Class B		1,184		117,528
Novo Nordisk A/S, Class B		11,254		907,812
				1,025,340
Finland–0.5%
Fortum Oyj		14,501		319,228
France–1.5%
GDF Suez		1,942		54,944
Sanofi-Aventis SA		11,943		720,197
Total SA		1,392		61,950
Valeo SA(a)		1,777		47,871
				884,962
Germany–1.5%
Deutsche Bank AG		527		29,796
Deutsche Lufthansa AG(a)		19,377		266,992
Hannover Rueckversicherung AG		8,503		366,287
RWE AG		3,562		232,173
				895,248
Hong Kong–1.5%
BOC Hong Kong Holdings Ltd.		94,500		214,804
Cheung Kong Holdings Ltd.		29,000		333,246
Swire Pacific Ltd., Class A		27,500		311,597
				859,647
Ireland–0.6%
Seagate Technology(a)		17,900		233,416
Warner Chilcott PLC, Class A(a)		5,600		127,960
				361,376
Italy–2.2%
Enel SpA		28,902		122,270
ENI SpA		6,225		114,273
Mediaset SpA		102,572		584,016
Mediobanca SpA (warrants, expiring 03/18/11)(a)		429		17
Snam Rete Gas SpA		9,191		36,539
Terna Rete Elettrica Nationale SpA		116,363		419,071
Unione di Banche Italiane ScpA (warrants, expiring 06/30/11)(a)		623		13
				1,276,199
Japan–7.9%
Astellas Pharma, Inc.		15,100		504,982
Canon, Inc.		27,200		1,014,100
DAITO Trust Construction Co., Ltd.		2,600		146,982
East Japan Railway Co.		1,300		86,658
Honda Motor Co., Ltd.		8,600		249,757
Hoya Corp.		5,600		118,910
JGC Corp.		2,000		30,320
Lawson, Inc.		2,900		126,745
Mizuho Financial Group, Inc.		197,300		323,832
Nissan Motor Co., Ltd.		155,500		1,077,960
Takeda Pharmaceutical Co., Ltd.		6,800		291,020
Tokio Marine Holdings, Inc.		18,900		495,078
Toyota Motor Corp.		5,700		196,019
				4,662,363
Luxembourg–0.1%
Tenaris SA		5,487		95,227
Netherlands–0.1%
STMicroelectronics NV		9,454		74,894
Norway–0.2%
StatoilHydro ASA		6,233		120,215

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

	Shares		Value
Singapore–0.4%
United Overseas Bank Ltd.		16,000	$	222,274
Spain–1.2%
Banco Bilbao Vizcaya Argentaria SA		29,182		301,056
Banco Santander SA		37,620		395,310
				696,366
Sweden–1.2%
Alfa Laval AB		14,716		190,082
Nordea Bank AB		26,014		214,557
Svenska Handelsbanken AB, Class A		12,606		308,752
				713,391
Switzerland–3.5%
Banque Cantonale Vaudis		119		48,970
Credit Suisse Group AG		8,707		327,242
Nestle SA		3,201		154,448
Noble Corp.		5,000		154,550
Novartis AG		15,266		740,652
Roche Holding AG		1,690		232,077
Schindler Holding AG		3,285		276,217
Tyco International Ltd.		3,700		130,351
				2,064,507
United Kingdom–4.8%
BHP Billiton PLC		29,018		750,895
BP PLC		50,435		242,225
British American Tobacco PLC		25,745		815,211
BT Group PLC		190,724		364,214
HSBC Holdings PLC		4,067		37,103
IG Group Holdings PLC		11,733		73,212
International Power PLC		1,288		5,706
Next PLC		14,625		432,786
Standard Chartered PLC		5,240		127,206
				2,848,558
United States–26.2%
American Express Co.		9,000		357,300
AmeriCredit Corp.(a)		3,200		58,304
Amgen, Inc.(a)		7,300		383,980
Apple, Inc.(a)		500		125,765
Automatic Data Processing, Inc.		14,600		587,796
Avis Budget Group, Inc.(a)		22,100		217,022
Bank of America Corp.		5,800		83,346
Brinker International, Inc.		4,400		63,624
Capital One Financial Corp.		4,300		173,290
Cardinal Health, Inc.		7,800		262,158
Cheesecake Factory, Inc.(a)		2,100		46,746
Chevron Corp.		7,000		475,020
Cimarex Energy Co.		1,400		100,212
Cisco Systems, Inc.(a)		7,600		161,956
Citigroup, Inc.(a)		20,700		77,832
ConocoPhillips		8,300		407,447
D.R. Horton, Inc.		29,400		289,002
Exxon Mobil Corp.		19,900		1,135,693
Ford Motor Co.(a)		11,600		116,928
Forest Laboratories, Inc.(a)		3,600		98,748
Franklin Resources, Inc.		3,200		275,808
Gannett Co., Inc.		10,300		138,638
Gap, Inc.		50,100		974,946
Goldman Sachs Group, Inc.		1,700		223,159
Humana, Inc.(a)		1,300		59,371
IAC/InteractiveCorp(a)		3,100		68,107
IBM Corp.		9,700		1,197,756
InterDigital, Inc.(a)		6,900		170,361
Johnson & Johnson		6,300		372,078
Jones Apparel Group, Inc.		21,100		334,435
JPMorgan Chase & Co.		1,100		40,271
Limited Brands, Inc.		2,400		52,968
M & T Bank Corp.		3,700		314,315
Macy’s, Inc.		4,200		75,180
McDonald’s Corp.		6,000		395,220
Micron Technology, Inc.(a)		7,400		62,826
Microsoft Corp.		47,400		1,090,674
Moody’s Corp.		3,900		77,688
Northrop Grumman Corp.		5,600		304,864
Oil States International, Inc.(a)		2,400		94,992
Oshkosh Corp.(a)		20,700		645,012
Peabody Energy Corp.		5,400		211,302
Procter & Gamble Co.		4,600		275,908
Reliance Steel & Aluminum		3,300		119,295
Rent-A-Center, Inc.(a)		5,400		109,404
R.R. Donnelley & Sons Co.		17,300		283,201
Sprint Nextel Corp.(a)		34,600		146,704
Texas Instruments, Inc.		10,300		239,784
Time Warner, Inc.		3,533		102,139
Travelers Cos., Inc.		900		44,325
TRW Automotive Holdings Corp.(a)		12,900		355,653
UnitedHealth Group, Inc.		14,800		420,320
U.S. Bancorp		2,700		60,345
Valeant Pharmaceuticals International(a)		2,400		125,496
Vishay Intertechnology, Inc.(a)		14,600		113,004
Walter Industries, Inc.		4,400		267,740

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

	Shares		Value
United States–(continued)
Wells Fargo & Co.		2,200	$	56,320
Windstream Corp.		36,000		380,160
				15,501,938
Total Common Stocks–61.7%				36,516,767
Investment Companies–8.1%
iShares Barclays 3-7 Year Treasury Bond Fund		6,700	$	772,711
iShares MSCI EAFE Index Fund		18,500		860,435
SPDR Barclays Capital International Treasury Bond Fund ETF		43,000		2,311,250
SPDR S&P 500 ETF		8,200		846,404
Total Investment Companies–8.1%				4,790,800
United States Government Agency Obligations–5.1%
United States Treasury Bill ($3,000,000 par, yielding 0.149%, 09/02/10 maturity)				2,999,190
Total Long-Term Investments–74.9% (Cost $45,353,983)				44,306,757
Money Market Funds–18.4%
Liquid Assets Portfolio–Institutional Class(b)		5,443,630		5,443,630
Premier Portfolio–Institutional Class(b)		5,443,630		5,443,630
Total Money Market Funds–18.4% (Cost $10,887,260)				10,887,260
TOTAL INVESTMENTS–93.3% (Cost $56,241,243)				55,194,017
FOREIGN CURRENCY–3.3% (Cost $1,988,251)				1,968,185
OTHER ASSETS IN EXCESS OF LIABILITIES–3.4%				2,023,557
NET ASSETS–100.0%			$	59,185,759

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.

(a)	Non-income producing security
(b)	The money market fund & the fund are affiliated by having the same investment adviser

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Financials	12.2	%
Consumer Discretionary	9.8
Health Care	9.0
Information Technology	8.9
Energy	5.6
Industrials	4.5
Telecommunication Services	3.4
Materials	3.3
Utilities	2.7
Consumer Staples	2.3
Money Market Funds Plus Other Assets in Excess of Liabilities	38.3

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Forward Foreign Currency Contracts Outstanding as of June 30, 2010:
				Unrealized
				Appreciation/
Current	In Exchange for	Value		Depreciation
Long Contracts:
Taiwan Dollar 11,500,000 expiring 07/21/10	US$	$	358,126	$	(912	)

Futures Contracts Outstanding as of June 30, 2010:
			Unrealized
	Number of		Appreciation/
	Contracts		Depreciation
Long Contracts:
10-Year Government of Canada Bond Futures, September 2010 (Current Notional Value of $116,529 per contract)		27	$	73,662
Australian Treasury Bond 10-Year Futures, September 2010 (Current Notional Value of $90,328 per contract)		10		20,863
German Euro Bond Futures, September 2010 (Current Notional Value of $158,490 per contract)		20		9,073
JGB Mini 10-Year Futures, September 2010 (Current Notional Value of $1,600,900 per contract)		6		70,922
Russell 2000 Mini Index Futures, September 2010 (Current Notional Value of $60,780 per contract)		12		(10,549	)
UK Long Gilt Bond Futures, September 2010 (Current Notional Value of $181,103 per contract)		17		58,842
U.S. Treasury Note 10-Year Futures, September 2010 (Current Notional Value of $122,547 per contract)		25		54,648
Total Long Contracts		117	$	277,461
			Unrealized
	Number of		Appreciation/
	Contracts		Depreciation
Short Contracts:
ASX SPI 200 Index Futures, September 2010 (Current Notional Value of $89,997 per contract)		4	$	19,934
CAC 40 Index Futures, July 2010 (Current Notional Value of $42,161 per contract)		8		14,209
FTSE JSE Top 40 Index Futures, September 2010 (Current Notional Value of $30,427 per contract)		13		20,045
FTSE MIB Index Futures, September 2010 (Current Notional Value of $118,485 per contract)		2		6,541
Hang Seng Index Futures, July 2010 (Current Notional Value of $128,925 per contract)		3		12,155
Hang Seng China Ent Index Futures, July 2010 (Current Notional Value of $73,294 per contract)		4		11,429
IBEX 35 Index Futures, July 2010 (Current Notional Value of $3,758 per contract)		3		8,396
MSCI Taiwan Index Futures, July 2010 (Current Notional Value of $25,220 per contract)		14		8,960
SGX MSCI Singapore Index Futures, July 2010 (Current Notional Value of $48,148 per contract)		7		2,908
S&P 500 E-Mini Index Futures, September 2010 (Current Notional Value of $51,330 per contract)		34		20,655
S&P/TSE 60 Index Futures, September 2010 (Current Notional Value of $124,067 per contract)		5		5,887
Topix index Futures, September 2010 (Current Notional Value of $94,759 per contract)		4		9,357
Total Short Contracts		101		140,476
Total Futures Contracts		218	$	417,937

				Notional
				Amount
Swap Contracts	Counterparty			(000)
J.P. Morgan Global Government Bond Index	J.P. Morgan Chase Bank, N.A.	34,250	June 2011/Long	$	15,196	$	438,929

Fair Value Measurements

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below. (See Note 1(B) in the Notes to Financial Statements for further information regarding fair value measurements.)

  The following is a summary of the inputs used as of June 30, 2010 in valuing the Fund’s investments carried at value.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

	Level 1		Level 2		Level 3
	Quotes		Other Significant		Significant				Percent of
Investments	Prices		Observable Inputs		Unobservable Inputs		Total		Net Assets
Investments in an Asset Position
Common Stocks
Aerospace & Defense	$	304,864	$	—	$	—	$	304,864		0.5	%
Airlines		—		266,992		—		266,992		0.4
Apparel Retail		1,027,914		—		—		1,027,914		1.7
Apparel, Accessories & Luxury Goods		334,435		—		—		334,435		0.6
Asset Management & Custody Banks		275,808		—		—		275,808		0.5
Auto Parts & Equipment		355,653		47,871		—		403,524		0.7
Automobile Manufacturers		116,928		1,523,737		—		1,640,665		2.8
Biotechnology		383,980		—		—		383,980		0.6
Broadcasting & Cable TV		—		584,016		—		584,016		1.0
Coal & Consumable Fuels		—		97,745		—		97,745		0.2
Commercial Printing		283,201		—		—		283,201		0.5
Communications Equipment		332,317		—		—		332,317		0.5
Computer Hardware		1,323,521		—		—		1,323,521		2.2
Computer Storage & Peripherals		233,416		—		—		233,416		0.4
Construction & Engineering		—		30,320		—		30,320		0.1
Construction & Farm Machinery & Heavy Trucks		645,012		—		—		645,012		1.1
Consumer Finance		588,894		—		—		588,894		1.0
Data Processing & Outsourced Services		587,796		—		—		587,796		1.0
Department Stores		75,180		432,786		—		507,966		0.8
Diversified Banks		392,270		2,431,808		—		2,824,078		4.8
Diversified Capital Markets		—		357,037		—		357,037		0.6
Diversified Metals & Mining		211,302		1,607,085		—		1,818,387		3.1
Electric Utilities		—		860,568		—		860,568		1.4
Electronic Equipment Manufacturers		113,004		118,910		—		231,914		0.4
Food Retail		—		126,745		—		126,745		0.2
Gas Utilities		—		36,539		—		36,539		0.1
Health Care Distributors		262,158		—		—		262,158		0.4
Health Care Supplies		—		117,528		—		117,528		0.2
Home Furnishing Retail		109,404		—		—		109,404		0.2
Homebuilding		289,002		146,982		—		435,984		0.7
Household Products		275,908		—		—		275,908		0.5
Independent Power Producers & Energy Traders		—		5,706		—		5,706		0.0	*
Industrial Conglomerates		398,091		—		—		398,091		0.7
Industrial Machinery		—		466,300		—		466,300		0.8
Integrated Oil & Gas		2,018,160		538,664		—		2,556,824		4.3
Integrated Telecommunication Services		1,497,626		364,214		—		1,861,840		3.1
Internet Software & Services		68,107		—		—		68,107		0.1
Investment Banking & Brokerage		223,159		17		—		223,176		0.4
Managed Health Care		479,691		—		—		479,691		0.8
Movies & Entertainment		102,139		—		—		102,139		0.2
Multi-Utilities		388,863		287,117		—		675,980		1.1
Office Electronics		—		1,014,100		—		1,014,100		1.7
Oil & Gas Drilling		154,550		—		—		154,550		0.3
Oil & Gas Equipment & Services		94,992		95,228		—		190,220		0.3

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

	Level 1			Level 2			Level 3
	Quotes			Other Significant			Significant					Percent of
Investments	Prices			Observable Inputs			Unobservable Inputs		Total			Net Assets
Oil & Gas Exploration & Production		308,065			—			—		308,065			0.5
Other Diversified Financial Services		201,449			—			—		201,449			0.3
Packaged Foods & Meats		—			154,448			—		154,448			0.3
Pharmaceuticals		724,282			3,396,740			—		4,121,022			6.9
Property & Casualty Insurance		135,085			495,078			—		630,163			1.1
Publishing		138,638			—			—		138,638			0.2
Railroads		—			86,658			—		86,658			0.2
Real Estate Management & Development		—			644,842			—		644,842			1.1
Regional Banks		314,315			48,970			—		363,285			0.6
Reinsurance		573,650			366,287			—		939,937			1.6
Restaurants		505,590			—			—		505,590			0.9
Semiconductors		302,610			74,894			—		377,504			0.6
Specialized Finance		77,688			73,212			—		150,900			0.3
Steel		119,295			—			—		119,295			0.2
Systems Software		1,090,674			—			—		1,090,674			1.8
Tobacco		—			815,211			—		815,211			1.4
Trucking		217,022			—			—		217,022			0.4
Wireless Telecommunication Services		146,704			—			—		146,704			0.3
Total Common Stocks		18,802,412			17,714,355			—		36,516,767			61.7
United States Government Agency Obligations		—			2,999,190			—		2,999,190			5.1
Investment Companies		4,790,800			—			—		4,790,800			8.1
Mutual Funds		10,887,260			—			—		10,887,260			18.4
Futures		428,486			—			—		428,486			0.7
Swap Contracts		—			438,929			—		438,929			0.7
Total Investments in an Asset Position	$	34,908,958		$	21,152,474		$	—	$	56,061,432			94.7	%
Investments in a Liability Position
Forward Foreign Currency Contracts	$	—		$	(912	)	$	—	$	(912	)
Futures		(10,549	)		—			—		(10,549	)
Total Investments in a Liability Position	$	(10,549	)	$	(912	)	$	—	$	(11,461	)

*  Amount Is less than 0.1%

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $45,353,983)	$	44,306,757
Investments in affiliated money market funds, at value and cost		10,887,260
Foreign currency (Cost $1,988,251)		1,968,185
Cash		1,223,237
Receivables:
Variation margin on futures		417,937
Dividends		108,017
Fund shares sold		12,513
Investments sold		454
Swap contracts		438,929
Total assets		59,363,289
Liabilities:
Payables:
Offering costs		53,026
Distributor and affiliates		29,335
Investment advisory fee		2,295
Trustees deferred comp retirement plan		490
Fund shares repurchased		109
Forward foreign currency contracts		912
Accrued expenses		91,363
Total liabilities		177,530
Net assets	$	59,185,179
Net assets consist of:
Capital (par value of $0.001 per share with an unlimited number of shares authorized)	$	56,618,609
Net unrealized depreciation		(212,212	)
Accumulated undistributed net investment income		194,140
Accumulated net realized gain		2,585,222
Net assets	$	59,185,759
Net asset value and offering price per share
Series I Shares: (Based on net assets of $112,021 and 10,000 shares of beneficial interest issued and outstanding)	$	11.20
Series II Shares: (Based on net assets of $59,073,738 and 5,286,076 shares of beneficial interest issued and outstanding)	$	11.18

Statement of Operations

For the Six Months Ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $43,720)	$	769,561
Interest		44,395
Total income		813,956
Expenses:
Investment advisory fee		348,953
Distribution (12b-1) and service fees		116,171
Custody		72,818
Accounting and administrative expenses		54,575
Professional fees		29,904
Reports to shareholders		10,025
Offering costs		8,560
Transfer agent fees		7,679
Trustees’ fees and related expenses		6,784
Other		6,131
Total expenses		661,600
Expense reduction		126,656
Net expenses		534,944
Net investment income		279,012
Realized and unrealized gain/loss:
Realized gain/loss:
Investments	$	3,665,569
Futures		1,068,962
Foreign currency transactions		891,657
Forward foreign currency contracts		(2,749,855	)
Net realized gain		2,876,333
Unrealized appreciation/depreciation:
Beginning of the period		6,962,088
End of the period:
Investments		(1,047,226	)
Swap contracts		438,929
Futures		417,937
Forward commitments		(912	)
Foreign currency translation		(20,940	)
		(212,212	)
Net unrealized depreciation during the period		(7,174,300	)
Net realized and unrealized loss	$	(4,297,967	)
Net decrease in net assets from operations	$	(4,018,955	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Statement of Changes in Net Assets

(Unaudited)

				For the Period
	For the			January 23, 2009
	Six Months			(Commencement
	Ended			of Operations) to
	June 30, 2010			December 31, 2009
From investment activities:
Operations:
Net investment income	$	279,012		$	241,262
Net realized gain		2,876,333			6,738,510
Net unrealized appreciation/depreciation during the period		(7,174,300	)		6,962,088
Change in net assets from operations		(4,018,955	)		13,941,860
Distributions from net investment income:
Series I Shares		(196	)		(2,462	)
Series II Shares		(185,515	)		(1,961,058	)
		(185,711	)		(1,963,520	)
Distributions from net realized gain:
Series I Shares		(1,436	)		(4,587	)
Series II Shares		(1,359,183	)		(3,885,689	)
		(1,360,619	)		(3,890,276	)
Total distributions		(1,546,330	)		(5,853,796	)
Net change in net assets from investment activities		(5,565,285	)		8,088,064
From capital transactions:
Proceeds from shares sold		19,296,045			105,224,572
Net asset value of shares issued through dividend reinvestment		1,546,330			5,853,796
Cost of shares repurchased		(65,785,791	)		(9,471,972	)
Net change in net assets from capital transactions		(44,943,416	)		101,606,396
Total increase/decrease in net assets		(50,508,701	)		109,694,460
Net assets:
Beginning of the period		109,694,460			0
End of the period (including accumulated undistributed net investment income of $194,140 and $100,839, respectively)	$	59,185,759		$	109,694,460

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for one share of the Fund outstanding throughout the periods indicated.

	Series I Sharesˆ
				January 23, 2009
	Six months			(commencement of
	ended			operations) to
	June 30, 2010			December 31, 2009
Net asset value, beginning of the period	$	12.00		$	10.00
Net investment income(a)		0.06			0.04
Net realized and unrealized gain/loss		(0.70	)		2.67
Total from investment operations		(0.64	)		2.71
Less:
Distributions from net investment Income		0.02			0.25
Distributions from net realized gain		0.14			0.46
Total distributions		0.16			0.71
Net asset value, end of the period	$	11.20		$	12.00
Total return*		(6.33	)%**		28.21	%**
Net assets at end of the period (in millions)	$	0.1		$	0.1
Ratio of expenses to average net assets*(b)		0.90	%		0.90	%
Ratio of net investment income to average net assets*(b)		0.97	%		0.41	%
Portfolio turnover		116	%**		87	%**
* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets(b)		1.17	%		1.46	%
Ratio of net investment income/loss to average net assets(b)		0.70	%		(0.15	%)

	Series II Sharesˆ
				January 23, 2009
	Six months			(commencement of
	ended			operations) to
	June 30, 2010			December 31, 2009
Net asset value, beginning of the period	$	12.10		$	10.00
Net investment income(a)		0.05			0.05
Net realized and unrealized gain/loss		(0.81	)		2.74
Total from investment operations		(0.76	)		2.79
Less:
Distributions from net investment income		0.02			0.23
Distributions from net realized gain		0.14			0.46
Total distributions		0.16			0.69
Net asset value, end of the period	$	11.18		$	12.10
Total return*(c)		(6.43	)**		27.86	%**
Net assets at end of the period (in millions)	$	59.1		$	109.6
Ratio of expenses to average net assets*(b)		1.15	%		1.15	%
Ratio of net investment income to average net assets*(b)		0.60	%		0.44	%
Portfolio turnover		116	%**		87	%**
* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets(b)		1.42	%		1.71	%
Ratio of net investment income/loss to average net assets(b)		0.33	%		(0.12	)%

(a)	Based on average shares outstanding.
(b)	Does not include expenses of the Underlying Funds in which the Fund invests. The annualized weighted average ratio of expense to average net assets for the Underlying Funds was 0.09% and 0.08% at June 30, 2010 and December 31, 2009, respectively.
(c)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.
ˆ	On June 1, 2010, the Fund’s former Class I and Class II Shares were reorganized into Series I and Series II Shares, respectively.
**	Non-Annualized

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Notes to Financial Statements

June 30, 2010

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund (the ”Fund”) is organized as a series of the Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance Funds, (the ”Trust”), a Delaware statutory trust, and is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the ”1940 Act”). The Trust consists of forty-one 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. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Life Investment Trust Global Tactical Asset Allocation Portfolio (the “Acquired Fund”), an investment portfolio of Van Kampen Life Investment Trust. The Acquired Fund was reorganized June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class I and Class II Shares received Series I and Series II Shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class I and Class II Shares prior to the Reorganization are included with Series I and Series II Shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to seek capital appreciation over time by investing primarily in a diversified mix of equity securities and fixed income securities of U.S. and non-U.S. issuers.

  The Fund currently offers two classes of shares, Series I Shares and Series II Shares, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies.

  The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Fair Value Measurements — GAAP defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

Level 1 —	Prices are based on quoted prices in active markets for identical investments.
Level 2 —	Prices are based on other significant observable inputs which may include quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.
Level 3 —	Prices are based on significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
C.	Security Transactions — Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
D.	Income and Expenses — Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Income and expenses of the Fund are allocated on a pro rata basis to each class of shares, except for distribution and service fees and incremental transfer agency costs which are unique to each class of shares.
E.	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.
F.	Federal Income Taxes — It is the Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation, as applicable, as the income is earned or capital gains are recorded. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in “Interest Expense” and penalties in “Other” expenses in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service and various states. Generally, the tax period ended December 31, 2009, remains subject to examination by taxing authorities.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

  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 on investment securities	$	876,362
Aggregate unrealized (depreciation) on investment securities		(1,999,504	)
Net unrealized (depreciation) on investment securities	$	(1,123,142	)
Cost of investments for tax purposes is $56,317,159.

G.	Distribution of Income and Gains — The Fund declares and pays dividends at least annually from net investment income and net realized gains, if any. Distributions from net realized gains for book purposes may include short-term capital gains and a portion of futures gains, which are included in ordinary income for tax purposes. Distributions from the Fund are recorded on the ex-distribution date.
	The tax character of distributions paid during the period ended December 31, 2009 was as follows:

Distributions paid from:
Ordinary income	$	5,145,625
Long-term capital gain		708,171
	$	5,853,796

  As of December 31, 2009, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	$	1,157,086
Undistributed long-term capital gain		389,877

	Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of mark to market on open futures contracts and deferral of losses relating to wash sale transactions.
H.	Foreign Currency Translation — Assets and liabilities denominated in foreign currencies and commitments under forward currency contracts are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated at the rate of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at rates prevailing when accrued. Realized and unrealized gains and losses on securities resulting from changes in exchange rates are not segregated for financial reporting purposes from amounts arising from changes in the market prices of securities. The unrealized gains and losses on translations of other assets or liabilities denominated in foreign currencies are included in foreign currency translation in the Statement of Operations. Realized gains and losses on foreign currency transactions in the Statement of Operations include the net realized amount from the sale of the foreign currency and the amount realized between trade date and settlement date on security transactions.
I.	Offering Costs — Offering costs are amortized, on a straight-line basis, over a twelve month period.

NOTE 2—Investment Advisory Agreement and Other Transactions with 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	% Per Annum
First $750 million	0.	75	%
Next $750 million	.	0.70	%
Over $1.5 billion	0.	65	%

  Prior to the reorganization, the Acquired Fund paid an advisory fee to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit the Fund’s expenses (excluding certain items discussed below) of Series I shares to 0.90% and Series II shares to 1.15% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Fund’s expenses to exceed the limit reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary or non-routine items; and (v) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and the Adviser mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. For the period June 1, 2010 to June 30, 2010, the Adviser did not waive advisory fees under this limitation.

  Prior to the Reorganization, Van Kampen had voluntarily agreed to waive fees and/or reimburse expenses of the Acquired Fund’s Series I and the Acquired Fund’s Series II Shares resulting in net expense ratios of 0.90% and 1.15%, respectively. For the period July 1, 2009 to May 31, 2010 Van Kampen waived advisory fees of $126,656.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the period ended June 30, 2010, the Adviser did not waive any advisory fees under the agreement.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $12,464 for services provided by insurance companies. Prior to the Reorganization, under separate accounting services and Chief Compliance Officer (“CCO”) employment agreements, Van Kampen Investments, Inc. provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $38.001 to Van Kampen Investments Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $6,508 to Van Kampen Investor Services, Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as “Transfer Agent Fees”.

  Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or Invesco Distributors, Inc. (“IDI”).

  “Trustees’ Fees and Related Expenses” 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’ Fees and Related Expenses” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ Fees and Related Expenses” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  For the period ended June 30, 2010, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

  Prior to the Reorganization, the Acquired Fund paid brokerage commissions to Morgan Stanley & Co., Inc., an affiliate of the Acquired Fund, totaling $37,343.

NOTE 3—Share Information

For the six months ended June 30, 2010 and the period ended December 31, 2009, transactions were as follows:

	For the						For the
	six months						period ended
	June 30, 2010(a)						December 31, 2009
	Shares			Value			Shares			Value
Sales:
Series I		0		$	0			10,000		$	100,000
Series II		1,614,576			19,296,045			9,353,445			105,124,572
Total sales		1,614,576		$	19,296,045			9,363,445		$	105,224,572
Dividend reinvestment:
Series I		0		$	0			0		$	0
Series II		101,831			1,546,330			367,564			5,853,796
Total dividend reinvestment		101,831		$	1,546,330			367,564		$	5,853,796
Repurchases:
Series I		0		$	0			0		$	0
Series II		(5,485,983	)		(65,785,791	)		(665,357	)		(9,471,972	)
Total repurchases		(5,485,983	)	$	(65,785,791	)		(665,357	)	$	(9,471,972	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 97% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

NOTE 4—Investment Transactions

During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, Money Market Funds, and U.S. Government Securities, were $63,207,127 and $80,258,174, respectively. The cost of purchases and proceeds from sales of long-term U.S. Government Securities for the period were $0 and $1,891,527, respectively.

NOTE 5—Risks of Investing in Underlying Funds

Each of the Underlying Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Underlying Funds’ shares and therefore the value of the Fund’s investments.

  Each Underlying Fund’s prospectus and statement of additional information discuss the investment objectives and risks associated with each Underlying Fund. Copies of these documents along with the Underlying Fund’s financial statements are available on the Securities and Exchange Commission’s website, http://www.sec.gov.

NOTE 6—Derivative Financial Instruments

A derivative financial instrument in very general terms refers to a security whose value is “derived” from the value of an underlying asset, reference rate or index.

  The Fund may use derivative instruments for a variety of reasons, such as to attempt to protect the Fund against possible changes in the market value of its portfolio or to manage the Fund’s foreign currency exposure or to generate potential gain. All of the Fund’s holdings, including derivative instruments, are marked to market each day with the change in value reflected in unrealized appreciation/depreciation. Upon disposition, a realized gain or loss is recognized accordingly except when taking delivery of a security underlying a contract. In these instances, the recognition of gain or loss is postponed until the disposal of the security underlying the contract.

  The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. GAAP has intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

A.	Forward Foreign Currency Contracts — A forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Fund may enter into forward foreign currency contracts to attempt to protect securities and related receivables and payables against changes in future foreign currency exchange rates. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized appreciation/depreciation on foreign currency translation in the Statement of Operations. The gain or loss arising from the difference between the original value of the contract and the closing value of such contract is included as a component of realized gain (loss) on foreign currency transactions. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. Risks may also arise from the unanticipated movements in the value of a foreign currency relative to the U.S. dollar. During the six months ended June 30, 2010, the cost of purchases and the proceeds from sales of forward foreign currency contracts were $218,786,080 and $213,068,316 respectively.
B.	Futures Contracts — The Fund is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may use futures contracts to gain exposure to, or hedge against changes in the value of equities, interest rates or foreign currencies. A futures contract is an agreement involving the delivery of a particular asset on a specified future date at an agreed upon price. Upon entering into futures contracts, the Fund maintains an amount of cash or liquid securities with a value equal to a percentage of the contract amount with either a futures commission merchant pursuant to rules and regulations promulgated under the 1940 Act, or with its custodian in an account in the broker’s name. This amount is known as initial margin. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (variation margin). When entering into futures contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. The risk of loss associated with a futures contract is in excess of the variation margin reflected in the Statement of Assets and Liabilities. Restricted cash, if any, for segregating purposes is shown in the Statement of Assets and Liabilities.
	Transactions in futures contracts for the six months ended June 30, 2010, were as follows:

Contracts
Outstanding at December 31, 2009	486
Futures opened	1819
Futures closed	(2087	)
Outstanding at June 30, 2010	218

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

C.	Swap Contracts — The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk.
	Interest rate, total return, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
	A CDS is an agreement between two parties (“Counterparties”) to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement.
	Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
	Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. For the six months ended June 30, 2010, the average notional amount of total return swap contracts entered into by the Fund was $15,196,000.

  The following table sets forth the fair value of the Fund’s derivative contracts by primary risk exposure as of June 30, 2010.

	Asset Derivatives				Liability Derivatives
	Balance Sheet				Balance Sheet
Primary Risk Exposure	Location	Fair Value			Location	Fair Value
Total return contracts	Swap contracts	$	438,929	*	Swap contracts	$	0	*
Interest rate contracts	Variation margin on futures		288,008	*	Variation margin on futures		0	*
Equity contracts	Variation margin on futures		140,478	*	Variation margin on futures		(10,549	)*
Foreign exchange contracts	Forward foreign currency contracts		0		Forward foreign currency contracts		(912	)
Total			867,415				(11,461	)

*  Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments/footnotes. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

  The following tables set forth by primary risk exposures the Fund’s realized gains (losses) and change in unrealized appreciation/depreciation by type of derivative contract for the period ended June 30, 2010.

Amount of Realized Gain/(Loss) on Derivative Contracts
			Forward Foreign
Primary Risk Exposure	Futures		Currency Contracts			Total
Interest rate contracts	$	475,142	$	0		$	475,142
Equity contracts		593,820		0			593,820
Foreign exchange contracts		0		(2,749,855	)		(2,749,855	)
Total	$	1,068,962	$	(2,749,855	)	$	(1,680,893	)

Change in Unrealized Appreciation/(Depreciation) on Derivative Contracts
				Forward Foreign
Primary Risk Exposure	Futures			Currency Contracts		Swaps		Total
Total return contracts	$	0		$	0	$	438,929	$	438,929
Interest rate contracts		428,020			0				428,020
Equity contracts		(437,703	)		0				(437,703	)
Foreign exchange contracts		0			365,087				365,087
Total	$	(9,683	)	$	365,087	$	438,929	$	794,333

NOTE 7—Distribution and Service Plans

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II Shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II Shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II Shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II Shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $103,780 to Van Kampen Funds Inc. based on the annual rate of 0.25% of the Acquired Funds’s average daily net assets of Class II shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as “Distribution (12b-1) and Service Fees”.

NOTE 8—Indemnifications

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 9—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 10—Change in Independent Registered Public Accounting Firm

In connection with the Reorganization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the period did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Calculating your ongoing Fund expenses

Expense Example

As a policyholder of the Fund, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

  The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 1/1/10-6/30/10.

Actual Expense

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below 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 cost 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. Therefore, the second line of the table is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds that have transactional costs, such as sales charges (loads) or exchanges fees.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
					Expenses				Expenses
	Beginning		Ending		Paid During		Ending		Paid During
	Account Value		Account Value		Period*		Account Value		Period*
Class	01/01/10		06/30/10		01/01/10–06/30/10		06/30/10		01/01/10–06/30/10
I	$	1,000.00	$	929.97	$	4.31		1,020.33		4.51
II		1,000.00		929.01		5.50		1,019.09		5.76

^*  Expenses are equal to the Fund’s annualized expense ratio of 0.90% and 1.15% for Series I and II Shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). These expense ratios reflect an expense waiver.

Assumes all dividends and distributions were reinvested.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Approval of Investment Advisory and Sub-Advisory Agreements with Invesco Advisers, Inc. and its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as the Board was not advised whether an Affiliated Sub-Adviser would manage assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Van Kampen Life Investment Trust Global Tactical Asset Allocation Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		8,481,729		124,146		693,606		0

Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund

          Invesco Van Kampen V.I. Global Value
          Equity Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIGVE-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-9.35	%
Series II Shares	-9.59
MSCI World Index ▼ (Broad Market/Style-Specific Index)	-9.84

^▼ Lipper Inc.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (1/2/97)	3.25	%
10 Years	0.46
5 Years	-2.72
1 Year	6.41
Series II Shares
10 Years	0.19	%
5 Years	-2.99
1 Year	6.00

Effective June 1, 2010, Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I shares of Invesco Van Kampen V.I. Global Value Equity Fund. Returns shown above for Series I shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Global Value Equity Fund. Share class returns will differ from the predecessor fund because of different expenses.

     Series II shares incepted on June 1, 2010. Series II shares performance shown prior to that date is that of the predecessor fund’s Class I shares restated to reflect the higher 12b-1 fees applicable to the fund’s Series II shares. Class I shares performance reflects any applicable fee waivers or expense reimbursements. The inception date of the predecessor fund’s Class I shares is January 2, 1997.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.15% 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 Series I and Series II shares was 1.31% and 1.56%, 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.

     Invesco Van Kampen V.I. Global Value Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect, through at least June 30, 2011. See current prospectus for more information.

Invesco Van Kampen V.I. Global Value Equity Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.4%
Australia–2.7%
Australia & New Zealand Banking Group Ltd.		18,406	$	330,427
Macquarie Group Ltd.		9,844		302,939
Telstra Corp. Ltd.		147,175		400,463
				1,033,829
Austria–0.1%
Telekom Austria AG		1,328		14,762
Bermuda–0.8%
Partnerre Ltd.		4,480		314,227
Brazil–0.5%
Cia Energetica de Minas Gerais (ADR)		3,544		51,990
Petroleo Brasileiro SA (ADR)		2,469		84,736
Vale SA(a)		2,759		67,182
				203,908
Canada–3.8%
Agrium, Inc.		6,466		315,843
EnCana Corp.		8,453		256,000
Intact Financial Corp.		7,059		297,731
Nexen, Inc.		12,566		247,177
Toronto-Dominion Bank (The)		5,290		342,778
				1,459,529
Finland–0.7%
Nokia OYJ (ADR)		34,110		277,997
France–6.1%
BNP Paribas		5,907		315,401
Bouygues SA		12,297		471,014
GDF Suez		17,332		490,368
ICADE		2,915		258,071
Sanofi-Aventis SA		8,139		490,806
Total SA		7,449		331,515
Vallourec SA		84		13,407
				2,370,582
Germany–2.9%
Bayerische Motoren Werke AG		9,525		460,708
Porsche Automobil Holding SE		8,803		374,438
Salzgitter AG		4,494		268,927
				1,104,073
Greece–0.5%
National Bank of Greece SA(a)		17,392		189,497
India–0.1%
State Bank of India		233		23,037
Ireland–0.1%
Dragon Oil PLC(a)		8,389		50,483
Israel–0.4%
Bezeq Israeli Telecommunication Corp. Ltd.		74,826		163,697
Italy–1.1%
Eni SpA		22,933		420,985
Japan–14.4%
Canon, Inc.		9,300		346,733
Daifuku Co., Ltd.		44,500		272,657
FUJIFILM Holdings Corp.		13,600		391,218
Mitsubishi Corp.		15,400		320,902
Mitsubishi UFJ Financial Group, Inc.		136,600		619,230
Murata Manufacturing Co., Ltd.		6,800		323,870
Nippon Telegraph & Telephone Corp.		7,400		302,135
Nippon Yusen KK		145,000		526,568
Nissan Motor Co., Ltd.(a)		58,500		405,535
NTT DoCoMo, Inc.		234		353,862
Seven & I Holdings Co., Ltd.		16,400		376,286
Sumitomo Chemical Co., Ltd.		124,000		478,759
Sumitomo Osaka Cement Co., Ltd.		91,000		173,475
Takeda Pharmaceutical Co., Ltd.		8,700		372,334
Tokyo Tomin Bank Ltd. (The)		26,500		301,595
				5,565,159
Mexico–0.1%
Desarrolladora Homex SAB de CV (ADR)(a)		1,960		49,470
Netherlands–2.0%
TNT N.V.		17,354		437,396
Unilever N.V.		12,433		338,990
				776,386
Norway–0.9%
Statoil ASA		17,875		344,753
Republic of Korea–1.2%
Hyundai Mipo Dockyard		643		67,537
Hyundai Mobis		528		88,428
LG Electronics, Inc.		424		32,378
Lotte Shopping Co. Ltd.		117		33,508
POSCO		184		69,835
Samsung Electronics Co., Ltd.		147		92,300

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Value Equity Fund
 

	Shares		Value
Republic of Korea–(continued)
Shinhan Financial Group Co., Ltd.		1,500	$	55,243
SK Telecom Co. Ltd. (ADR)		2,351		34,630
				473,859
Russia–0.2%
Gazprom OAO		2,761		51,930
Rosneft Oil Co.(a)		6,409		39,517
				91,447
Singapore–1.8%
ComfortDelgro Corp., Ltd.		354,000		366,662
Singapore Post Ltd.		414,000		333,414
				700,076
Spain–2.9%
Banco Santander SA		49,431		519,421
Iberdrola SA		41,807		234,490
Telefonica SA		20,262		374,169
				1,128,080
Switzerland–5.3%
ACE Ltd.		8,836		454,877
Holcim Ltd.		7,381		494,063
Kuoni Reisen Holding AG (Registered Shares)		677		184,299
Swisscom AG (Registered Shares)		1,401		474,638
Zurich Financial Services AG		2,061		452,412
				2,060,289
Taiwan–0.6%
Acer, Inc.		8,000		18,553
AU Optronics Corp. (ADR)		5,073		45,048
HTC Corp.		6,000		79,603
Powertech Technology, Inc.		25,000		69,295
U-Ming Marine Transport Corp.		11,000		20,976
				233,475
United Kingdom–10.5%
BHP Billiton PLC		25,047		648,137
BP PLC		62,986		302,551
GlaxoSmithKline PLC		21,767		368,889
Imperial Tobacco Group PLC		27,648		770,888
Informa PLC		42,561		281,778
National Grid PLC		46,205		340,437
Royal Dutch Shell PLC (Class A)		33,630		849,273
Vodafone Group PLC		246,484		510,769
				4,072,722
United States–36.7%
3M Co.		8,068		637,301
Aflac, Inc.		8,661		369,565
Allete, Inc.		8,206		280,973
Apache Corp.		4,080		343,495
Apollo Group, Inc. (Class A)(a)		5,957		252,994
Archer-Daniels-Midland Co.		13,192		340,617
Avon Products, Inc.		11,681		309,547
Bank of America Corp.		30,615		439,938
Bank of New York Mellon Corp. (The)		17,775		438,865
Best Buy Co., Inc.		8,636		292,415
Chevron Corp.		10,372		703,844
Coach, Inc.		14,585		533,082
ConocoPhillips		11,448		561,982
DaVita, Inc.(a)		6,751		421,532
Diebold, Inc.		11,916		324,711
DTE Energy Co.		10,429		475,667
Energen Corp.		9,111		403,891
GameStop Corp. (Class A)(a)		20,710		389,141
International Business Machines Corp.		2,545		314,257
Johnson & Johnson		12,315		727,324
Kroger Co. (The)		26,600		523,754
Merck & Co., Inc.		21,411		748,743
Microsoft Corp.		18,433		424,143
Morgan Stanley		18,549		430,522
Oracle Corp.		30,218		648,478
Pfizer, Inc.		25,171		358,938
Philip Morris International, Inc.		8,664		397,158
Potlatch Corp.		6,462		230,887
Sonoco Products Co.		5,037		153,528
Stryker Corp.		7,300		365,438
Valero Energy Corp.		21,536		387,217
WellPoint, Inc.(a)		13,267		649,154
WR Berkley Corp.		12,132		321,013
				14,200,114
Total Common Stocks & Other Equity Interests (Cost $38,122,770)				37,322,436
Money Market Funds–2.4%
Liquid Assets Portfolio–Institutional Class(b)		474,430		474,430
Premier Portfolio–Institutional Class(b)		474,430		474,430
Total Money Market Funds (Cost $948,860)				948,860
TOTAL INVESTMENTS (Cost $39,071,630)–98.8%				38,271,296
OTHER ASSETS IN EXCESS OF LIABILITIES–1.2%				447,946
NET ASSETS–100.0%			$	38,719,242

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Value Equity 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 June 30, 2010

Financials	18.1	%
Energy	12.8
Health Care	11.6
Industrials	9.0
Consumer Discretionary	8.7
Information Technology	8.7
Consumer Staples	7.9
Materials	6.9
Telecommunication Services	6.8
Utilities	5.9
Money Market Funds Plus Other Assets Less Liabilities	3.6

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Value Equity Fund
 

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $38,122,770)	$	37,322,436
Investments in affiliated money market funds, at value and cost		948,860
Total investments, at value (Cost $39,071,630)		38,271,296
Cash		36,687
Foreign currencies, at value (Cost $185,154)		185,691
Receivables for:
Investments sold		28,280,566
Fund shares sold		492
Dividends		182,469
Other assets		5,367
Total assets		66,962,568
Liabilities:
Payables for:
Investments purchased		28,126,228
Fund shares reacquired		16,327
Foreign currency contracts outstanding		53,618
Accrued fees to affiliates		10,093
Accrued other operating expenses		37,060
Total liabilities		28,243,326
Net assets applicable to shares outstanding	$	38,719,242
Net assets consist of:
Shares of beneficial interest	$	60,661,990
Undistributed net investment income		490,484
Undistributed net realized gain (loss)		(21,585,761	)
Unrealized appreciation (depreciation)		(847,471	)
	$	38,719,242
Net Assets:
Series I	$	38,709,372
Series II	$	9,870
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		6,011,806
Series II		1,534
Series I:
Net asset value per share	$	6.44
Series II:
Net asset value per share	$	6.43

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $80,137)	$	913,209
Dividends from affiliated money market funds		67
Total investment income		913,276
Expenses:
Advisory fees		146,164
Administrative services fees		58,552
Custodian fees		16,294
Distribution fees — Series II		2
Transfer agent fees		568
Trustees’ and officers’ fees and benefits		1,522
Professional services fees		12,393
Other		6,109
Total expenses		241,604
Less: Fees waived		(15	)
Net expenses		241,589
Net investment income		671,687
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(8,305	)
Foreign currencies		513,673
Foreign currency contracts		241,751
		747,119
Change in net unrealized appreciation (depreciation) of:
Investment securities		(5,184,808	)
Foreign currencies		6,402
Foreign currency contracts		(267,331	)
		(5,445,737	)
Net realized and unrealized gain (loss)		(4,698,618	)
Net increase (decrease) in net assets resulting from operations	$	(4,026,931	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Global Value Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	671,687		$	1,451,529
Net realized gain		747,119			858,582
Change in net unrealized appreciation (depreciation)		(5,445,737	)		3,798,012
Net increase (decrease) in net assets resulting from operations		(4,026,931	)		6,108,123
Distributions to shareholders from net investment income:
Distributions to shareholders from net investment income — Series I		(823,810	)		(3,097,718	)
Share transactions–net:
Series I		(2,411,925	)		(5,647,809	)
Series II		10,000			—
Net increase (decrease) in net assets resulting from share transactions		(2,401,925	)		(5,647,809	)
Net increase (decrease) in net assets		(7,252,666	)		(2,637,404	)
Net assets:
Beginning of period		45,971,908			48,609,312
End of period (includes undistributed net investment income of $490,484 and $642,607, respectively)	$	38,719,242		$	45,971,908

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1— Significant Accounting Policies

Invesco Van Kampen V.I. Global Value Equity Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Universal Funds Global Value Equity Portfolio (the “Acquired Fund”), an investment portfolio of The Universal Institutional Funds, Inc. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund Class I shares received Series I shares of the Fund.

  Information for the Acquired Fund — Class I shares prior to the Reorganization is included with Series I shares of the Fund throughout this report.

  The Fund’s investment objective is long-term capital appreciation by investing primarily in equity securities of issuers throughout the world, including U.S. issuers.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an

Invesco Van Kampen V.I. Global Value Equity Fund

	independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

Invesco Van Kampen V.I. Global Value Equity Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $1 billion		0	.67%
Next $500 million		0	.645%
Next $1 billion		0	.62%
Next $1 billion		0	.595%
Next $1 billion		0	.57%
Over $4.5 billion		0	.545%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Management Inc. (“MS Investment Management”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s). Prior to the Reorganization, Morgan Stanley Investment Management Limited served as sub-adviser to the Acquired Fund.

Invesco Van Kampen V.I. Global Value Equity Fund

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012 to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.15% and Series II shares to 1.40% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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.

  Prior to the Reorganization, MS Investment Management had voluntarily agreed to waive fees and/or reimburse expenses of Class I shares to 1.15% of the Acquired Fund’s average daily net assets.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the period ended June 30, 2010, MS Investment Management waived advisory fees of $15.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the six months ended June 30, 2010, Invesco Ltd. did not reimburse any expenses.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $8,266 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $46,176 to MS Investment Management and JPMorgan Investor Services Co.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provide certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $568 to Morgan Stanley Services Company Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Invesco Van Kampen V.I. Global Value Equity Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2			Level 3		Total
Australia	$	1,033,829	$	—		$	—	$	1,033,829
Austria		—		14,762			—		14,762
Bermuda		314,227		—			—		314,227
Brazil		203,908		—			—		203,908
Canada		1,459,529		—			—		1,459,529
Finland		277,997		—			—		277,997
France		961,820		1,408,762			—		2,370,582
Germany		1,104,073		—			—		1,104,073
Greece		189,497		—			—		189,497
India		23,037		—			—		23,037
Ireland		50,483		—			—		50,483
Israel		—		163,697			—		163,697
Italy		—		420,985			—		420,985
Japan		4,470,699		1,094,460			—		5,565,159
Mexico		49,470		—			—		49,470
Netherlands		437,396		338,990			—		776,386
Norway		344,753		—			—		344,753
Republic of Korea		473,859		—			—		473,859
Russia		—		91,447			—		91,447
Singapore		—		700,076			—		700,076
Spain		608,659		519,421			—		1,128,080
Switzerland		1,875,990		184,299			—		2,060,289
Taiwan		214,922		18,553			—		233,475
United Kingdom		1,413,877		2,658,845			—		4,072,722
United States		15,148,974		—			—		15,148,974
	$	30,656,999	$	7,614,297		$	—	$	38,271,296
Foreign Currency Contracts**		—		(53,618	)		—		(53,618	)
Total Investments	$	30,656,999	$	7,560,679		$	—	$	38,217,678

**  Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Currency risk(a)/Foreign currency contracts	$	—	$	(58,618	)

^(a) Values are disclosed on the Statement of Assets and Liabilities under foreign currency contracts outstanding.

Invesco Van Kampen V.I. Global Value Equity Fund

Effect of Derivative Instruments for the six months ended June 30, 2010

The table below summarizes the gains on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain on
	Statement of Operations
	Foreign Currency
	Contracts*
Realized Gain
Currency risk	$	241,751
Change in Unrealized Appreciation (Depreciation)
Currency risk		(267,331	)
Total	$	(25,580	)

*  The average value of foreign currency contracts outstanding during the period was and $6,794,120.

Open Foreign Currency Contracts
							Unrealized
Settlement	Contract to						Appreciation
Date	Deliver		Receive		Value		(Depreciation)
07/06/10	EUR	1,635,000	USD	1,983,893	$	1,999,406	$	(15,513	)
07/06/10	GBP	830,000	USD	1,201,981		1,240,086		(38,105	)
Total open foreign currency contracts
							$	(53,618	)

Currency Abbreviations:

EUR	– Euro
GBP	– British Pound Sterling
USD	– U.S. Dollar

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	4,176
December 31, 2017		17,957
Total capital loss carryforward	$	22,133

Invesco Van Kampen V.I. Global Value Equity Fund

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $41,334,989 and $43,616,988, 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	$	423,561
Aggregate unrealized (depreciation) of investment securities		(1,422,533	)
Net unrealized appreciation (depreciation) of investment securities	$	(998,972	)
Cost of investments for tax purposes is $39,270,268.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		205,618		$	1,495,917			610,980		$	4,100,196
Series II(b)		1,534			10,000			—			—
Issued as reinvestment of dividends:
Series I		123,510			823,810			507,823			3,097,721
Reacquired:
Series I		(663,452	)		(4,731,652	)		(1,974,372	)		(12,845,726	)
Net increase (decrease) in share activity		(332,790	)	$	(2,401,925	)		(855,569	)	$	(5,647,809	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 93% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b)

Commencement date of June 1, 2010.

Invesco Van Kampen V.I. Global Value Equity Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net
					(losses) on																						net assets			assets without			Ratio of net
	Net asset				securities						Dividends			Distributions													with fee waivers			fee waivers			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		and/or			and/or			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		expenses			expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	7.24	$	0.11	$	(0.77	)	$	(0.66	)	$	(0.14	)	$	—		$	(0.14	)	$	6.44		(9.21	)%	$	38,709		1.11	%(d)		1.11	%(d)		3.08	%(d)		97	%
Year ended 12/31/09		6.75		0.22		0.77			0.99			(0.50	)		—			(0.50	)		7.24		15.99			45,972		1.15	(e)		1.20	(e)		3.33	(e)(f)		79
Year ended 12/31/08		16.46		0.30		(5.71	)		(5.41	)		(0.35	)		(3.95	)		(4.30	)		6.75		(40.15	)		48,610		1.11	(e)		1.11			2.69	(e)		93
Year ended 12/31/07		16.99		0.25		0.94			1.19			(0.33	)		(1.39	)		(1.72	)		16.46		6.64			107,470		1.00	(e)		1.00			1.47	(e)		36
Year ended 12/31/06		14.87		0.24		2.78			3.02			(0.26	)		(0.64	)		(0.90	)		16.99		21.21			151,300		1.50			1.50			1.53			29
Year ended 12/31/05		14.30		0.23		0.59			0.82			(0.15	)		(0.10	)		(0.25	)		14.87		5.83			133,950		1.02			1.02			1.60			26
Series II
Six months ended 06/30/10(g)		6.52		0.02		(0.11	)		(0.09	)		—			—			—			6.43		(1.38	)		10		1.40	(d)		1.40	(d)		2.79	(d)		97

(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $44,037 and $2 for Series I and Series II shares, respectively.
(e)	Ratios reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios was less than 0.005% for the years ended December 31, 2009, December 31, 2008 and December 31, 2007, respectively.
(f)	Ratio of net investment income to average net assets without fee waivers and/or expenses absorbed was 3.28% for the year ended December 31, 2009.
(g)	Commencement date of June 1, 2010.

NOTE 11—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report

Invesco Van Kampen V.I. Global Value Equity Fund

Calculating your Ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. With the exception of the actual ending account value and expenses of the Series II shares, the example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010. The actual ending account value and expenses of the Series II shares in the example below are based on an investment of $1,000 invested as of close of business June 1, 2010 (the date the share class commenced operations) and held through June 30, 2010.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period (as of close of business June 1, 2010 through June 30, 2010 for the Series II). Because the actual ending account value and expense information in the example is not based upon a six month period for the Series II shares, the ending account value and expense information may not provide a meaningful comparison to mutual funds that provide such information for a full six month period.

Hypothetical example for comparison purposes

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							Hypothetical
							(5% annual return before
			Actual				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	906.50	$	5.25	$	1,019.29	$	5.56		1.11	%
Series II		1,000.00		984.70		1.14		1,017.85		7.00		1.40

1

The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010 (as of close of business June 1, 2010 through June 30, 2010 for the Series II shares), after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. For the Series II shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 30 (as of close of business June 1, 2010, through June 30, 2010)/365. Because the Series II shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods

  Effective June 1, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses of Series I and Series II shares to 1.15% and 1.40% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 1.15% and 1.40% for Series I and Series II shares, respectively.

3	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $5.44 and $1.14 for the Series I and Series II shares, respectively.
4	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in Series I shares of the Fund and other funds because such data is based on a full six month period.

  The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $5.76 and $7.00 for the Series I and Series II shares, respectively.

        Invesco Van Kampen V.I. Global Value Equity Fund

Approval of Investment Advisory and Sub-Advisory Agreements with Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Global Value Equity Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund, (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund, and (iii) a Temporary Investment Services Agreement (TISA) by and among Invesco Advisers and Morgan Stanley Investment Management Limited (the MS Sub-Adviser) for the possible provision of temporary investment services to the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers, the Affiliated Sub-Advisers and the MS Sub-Adviser under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers and MS Sub-Adviser

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

  The Board considered that the TISA is necessary because certain portfolio managers cannot be migrated to the Invesco Advisers front-end compliance system immediately upon reorganization with the Acquired Fund. The TISA permits those portfolio managers, who will remain employed by the MS Sub-Adviser for a temporary period following the reorganization with the Acquired Fund, to continue to be primarily responsible for the day-to-day management of the Fund. The Board considered that the MS Sub-Adviser had managed the Acquired Fund and that the board of the Acquired Fund had approved an investment advisory agreement with the MS Sub-Adviser. The Board concluded that the nature, extent and quality of the services to be provided by the MS Sub-Adviser are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as the Board was not advised whether an Affiliated Sub-Adviser would manage assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates. The Board also noted that the sub-advisory fees paid under the TISA have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rates, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of

Invesco Van Kampen V.I. Global Value Equity Fund

Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations. Given the temporary nature of the TISA, the Board did not consider the profitability of the MS Sub-Adviser.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Global Value Equity Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of The Universal Institutional Funds, Inc. Global Value Equity Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		5,558,793		296,008		331,493		0

Invesco Van Kampen V.I. Global Value Equity Fund

          Invesco Van Kampen V.I. Government Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIGOV-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.78	%
Series II Shares	4.66
Barclays U.S. Government/Mortgage Index▼ (Broad Market/Style-Specific Index)	4.96

^▼ Lipper Inc.

The Barclays U.S. Government/Mortgage Index is generally representative of U.S. government treasury securities and agency mortgage-backed securities.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (4/7/86)	5.95	%
10 Years	5.17
5 Years	3.69
1 Year	6.58
Series II Shares
Inception (12/15/00)	4.40	%
5 Years	3.45
1 Year	6.47

Effective June 1, 2010, Class I and Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Government Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Government Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.60% and 0.85%, respectively. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.86% and 1.11%, 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.

     Invesco Van Kampen V.I. Government Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco Van Kampen V.I. Government Fund

Schedule of Investments

June 30, 2010

(Unaudited)

						Par
						Amount
	Coupon			Maturity		(000)		Value
Mortgage Backed Securities–35.5%
Federal Home Loan Mortgage Corp., July(a)		6.000	%		TBA	$	285	$	309,359
Federal Home Loan Mortgage Corp.		4.500			01/01/40		5,342		5,542,952
Federal Home Loan Mortgage Corp.		5.000			01/01/37 to 01/01/40		6,647		7,043,166
Federal Home Loan Mortgage Corp.		5.500			05/01/38 to 11/01/39		9,390		10,090,222
Federal Home Loan Mortgage Corp.		6.000			06/01/29 to 07/01/38		5,936		6,452,851
Federal Home Loan Mortgage Corp.		6.500			06/01/29		19		20,914
Federal Home Loan Mortgage Corp.		7.500			05/01/35		274		314,090
Federal Home Loan Mortgage Corp.		8.000			08/01/32		146		168,406
Federal Home Loan Mortgage Corp.		8.500			08/01/31		171		201,935
Federal National Mortgage Association		4.500			11/01/24 to 08/01/39		11,612		12,144,237
Federal National Mortgage Association		5.000			05/01/35 to 03/01/40		27,682		29,358,565
Federal National Mortgage Association		5.500			04/01/35 to 08/01/38		25,856		27,815,328
Federal National Mortgage Association		6.000			01/01/14 to 10/01/38		9,498		10,333,820
Federal National Mortgage Association		6.500			11/01/10 to 04/01/38		186		206,370
Federal National Mortgage Association		7.000			06/01/11 to 06/01/32		38		43,377
Federal National Mortgage Association		7.500			08/01/37		482		549,336
Federal National Mortgage Association		8.000			04/01/33		356		413,065
Federal National Mortgage Association		8.500			10/01/32		333		387,362
Government National Mortgage Association		6.500			05/15/23 to 03/15/29		45		50,242
Government National Mortgage Association		7.000			04/15/23 to 11/15/27		64		72,970
Government National Mortgage Association		8.000			05/15/17 to 01/15/23		15		17,165
Total Mortgage Backed Securities–35.5%									111,535,732
United States Treasury Obligations–20.3%
United States Treasury Bonds		4.250			05/15/39		1,685		1,781,624
United States Treasury Bonds		4.375			11/15/39		3,000		3,238,594
United States Treasury Bonds		4.625			02/15/40		3,700		4,159,031
United States Treasury Bonds		5.375			02/15/31		3,800		4,673,406
United States Treasury Bonds		6.875			08/15/25		1,400		1,942,063
United States Treasury Bonds		7.500			11/15/24		8,270		11,995,376
United States Treasury Notes		1.125			06/15/13		3,000		3,012,187
United States Treasury Notes		1.375			05/15/13		3,000		3,036,094
United States Treasury Notes		2.125			05/31/15		9,000		9,154,688
United States Treasury Notes		2.250			01/31/15		3,500		3,586,406
United States Treasury Notes		2.375			10/31/14		600		618,937
United States Treasury Notes		2.500			03/31/15		9,037		9,364,591
United States Treasury Notes		3.500			05/15/20		4,000		4,185,625
United States Treasury Notes		3.625			02/15/20		2,729		2,882,933
Total United States Treasury Obligations–20.3%									63,631,555
United States Government Agency Obligations–15.1%
Federal Home Loan Mortgage Corp.		1.125			07/27/12		7,000		7,061,860
Federal Home Loan Mortgage Corp.		4.875			06/13/18		5,130		5,817,030

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Government Fund

						Par
						Amount
	Coupon			Maturity		(000)		Value
United States Government Agency Obligations–(continued)
Federal Home Loan Mortgage Corp.		5.500	%		08/23/17	$	4,650	$	5,467,973
Federal National Mortgage Association		1.125			07/30/12		8,000		8,061,741
Federal National Mortgage Association		1.500			06/26/13		8,500		8,593,647
Federal National Mortgage Association		5.000			05/11/17		1,000		1,142,050
Federal National Mortgage Association		5.375			06/12/17		480		559,293
Financing Corp.		9.650			11/02/18		1,985		2,890,963
Financing Corp.		9.800			04/06/18		700		1,008,128
Tennessee Valley Authority, Ser D		4.875			12/15/16		2,420		2,708,721
Tennessee Valley Authority, Ser G		7.125			05/01/30		2,960		3,972,162
Total United States Government Agency Obligations–15.1%									47,283,568
Collateralized Mortgage Obligations–13.6%
FDIC Structured Sale Guaranteed Notes(b)(c)		0.904			02/25/48		1,835		1,842,843
Federal Home Loan Mortgage Corp.(b)		0.607			04/15/28		1,700		1,701,328
Federal Home Loan Mortgage Corp.(b)		0.650			03/15/36		3,484		3,485,317
Federal Home Loan Mortgage Corp.(a)(b)		0.704			11/15/36		4,000		4,000,000
Federal Home Loan Mortgage Corp.(b)		0.750			06/15/37		4,487		4,466,762
Federal Home Loan Mortgage Corp.(b)		1.210			11/15/39		2,069		2,094,683
Federal Home Loan Mortgage Corp.		3.770			09/15/17		2,175		2,246,999
Federal Home Loan Mortgage Corp.		3.835			09/15/17		2,872		2,969,654
Federal Home Loan Mortgage Corp.		4.160			07/15/17		2,587		2,676,628
Federal Home Loan Mortgage Corp.		4.250			01/15/19		2,183		2,283,297
Federal Home Loan Mortgage Corp.		4.380			05/15/17		2,271		2,354,649
Federal Home Loan Mortgage Corp.		4.500			06/15/19 to 06/15/22		1,401		1,465,966
Federal Home Loan Mortgage Corp.		4.750			07/15/14		1,009		1,044,031
Federal National Mortgage Association(b)		0.647			05/25/36		3,252		3,240,703
Federal National Mortgage Association		3.000			07/25/22		813		831,007
Federal National Mortgage Association		4.500			07/25/19		2,438		2,574,689
Federal National Mortgage Association		6.022			11/25/10		750		761,796
Federal National Mortgage Association		6.500			01/25/30		613		653,390
Government National Mortgage Association		4.500			08/20/35		1,884		1,956,371
Total Collateralized Mortgage Obligations–13.6%									42,650,113
Agency Bonds–7.8%
Banking–2.7%
GMAC, Inc.		2.200			12/19/12		8,200		8,441,601
Banking–Savings and Loans–0.8%
US Central Federal Credit Union		1.900			10/19/12		2,260		2,307,381
Commercial Bank–2.9%
Citibank NA		1.750			12/28/12		9,000		9,171,134
Diversified Financial Services–0.9%
General Electric Capital Corp.		2.625			12/28/12		2,800		2,912,334

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Government Fund

						Par
						Amount
	Coupon			Maturity		(000)		Value
Diversified Financial Securities–Other Services–0.5%
Private Export Funding Corp.		4.300	%		12/15/21	$	1,540	$	1,626,956
Total Agency Bonds–7.8%									24,459,406
Adjustable Rate Mortgage Backed Securities–1.1%
Federal Home Loan Mortgage Corp.(b)		5.529			01/01/38		552		588,160
Federal Home Loan Mortgage Corp.(b)		5.947			10/01/36		1,032		1,098,480
Federal National Mortgage Association(b)		2.628			05/01/35		1,483		1,547,423
Federal National Mortgage Association(b)		5.708			03/01/38		385		409,951
Total Adjustable Rate Mortgage Backed Securities–1.1%									3,644,014
Total Long-Term Investments 93.4% (Cost $283,509,947)								$	293,204,388
Money Market Funds–7.4%
Government & Agency Portfolio–Institutional Class (23,156,409 Common Shares) (Cost $23,156,409)(d)									23,156,409
United States Government Agency Obligation–1.3%
United States Treasury Bill ($4,019,000 par, yielding 0.202%, 10/28/10 maturity) (Cost $4,016,359)(e)									4,017,151
TOTAL INVESTMENTS–102.1% (Cost $310,682,715)									320,377,948
LIABILITIES IN EXCESS OF OTHER ASSETS–(2.1%)									(6,646,534	)
NET ASSETS–100.0%								$	313,731,414

Percentages are calculated as a percentage of net assets.

(a)	Security purchased on a when-issued, delayed delivery or forward commitment basis.
(b)	Floating Rate Coupon
(c)	144A-Private Placement security which is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.
(e)	All or a portion of this security has been physically segregated in connection with open futures contracts.

TBA – To be announced, maturity date has not yet been established. Upon settlement and delivery of the mortgage pools, maturity dates will be assigned.

Portfolio Composition

By sector, based on Net Assets

FNMA	26.5	%
U.S. Treasury Obligations	20.3
U.S. Government Agency Obligations	15.1
CMO	13.6
FHLMC	10.1
Agency Bonds	7.8
GNMA	0.0	*
Money Market Funds Less Liabilities in Excess of Other Assets	6.6

*  Amount is less than 0.1%

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Government Fund

Futures Contracts Outstanding as of June 30, 2010:
	Number		Unrealized
	of		Appreciation/
	Contracts		Depreciation
Long Contracts:
U.S. Treasury Notes 5-Year Futures, September 2010 (Current Notional Value of $118,352 per contract)		244	$	429,599
Short Contracts:
U.S. Treasury Bonds 30-Year Futures, September 2010 (Current Notional Value of $127,500 per contract)		11		(23	)
U.S. Treasury Bonds Ultra Long Futures, September 2010 (Current Notional Value of $135,813 per contract)		2		(16,255	)
U.S. Treasury Notes 2-Year Futures, September 2010 (Current Notional Value of $218,828 per contract)		36		(34,107	)
U.S. Treasury Notes 10-Year Futures, September 2010 (Current Notional Value of $122,547 per contract)		73		(151,632	)
Total Short Contracts:		122		(202,017	)
Total Futures Contracts		366	$	227,582

Fair Value Measurements

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below. (See Note 1(B) in the Notes to Financial Statements for further information regarding fair value measurements.)

	Level 1			Level 2		Level 3
	Quoted			Other Significant		Significant
Investments in an Asset Position:	Prices			Observable Inputs		Unobservable Inputs		Total
Mortgage Backed Securities	$	—		$	111,535,732	$	—	$	111,535,732
Agency Bonds		—			24,459,406		—		24,459,406
Debt Securities issued by the United States		—			110,915,123		—		110,915,123
Collateralized Mortgage Obligations		—			42,650,113		—		42,650,113
Adjustable Rate Mortgage Backed Securities		—			3,644,014		—		3,644,014
Money Market Funds		23,156,409			—		—		23,156,409
U.S. Treasury Bill		—			4,017,151		—		4,017,151
Futures		429,599			—		—		429,599
Total Investments in an Asset Position		23,586,008			297,221,539		—		320,807,547
Investments in a Liability Position:
Futures		(202,017	)		—		—		(202,017	)
Total Investments in a Liability Position	$	(202,017	)	$	—	$	—	$	(202,017	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Government Fund

Statement of Assets and Liabilities

June 30, 2010 (Unaudited)

Assets:
Investments, at value (Cost $287,526,306)	$	297,221,539
Investments in affiliated money market funds, at value and cost		23,156,409
Cash		3,995,417
Receivables:
Investments sold		53,942,033
Interest		1,244,320
Principal paydowns		38,782
Fund shares sold		12,011
Expense reimbursement from adviser		2,946
Other		13,045
Total assets		379,626,502
Liabilities:
Payables:
Investments purchased		64,884,450
Fund shares repurchased		788,028
Distributor and affiliates		131,518
Variation margin on futures		19,418
Accrued expenses		71,674
Total liabilities		65,895,088
Net assets	$	313,731,414
Net assets consist of:
Capital (par value of $0.001 per share with an unlimited number of shares authorized)	$	315,312,833
Net unrealized appreciation		9,922,815
Accumulated undistributed net investment income		2,626,411
Accumulated net realized loss		(14,130,645	)
Net assets	$	313,731,414
Net asset value, offering price and redemption price per share:
Series I shares (based on net assets of $32,267,826 and 3,519,352 shares of beneficial interest issued and outstanding)	$	9.17
Series II shares (based on net assets of $281,463,588 and 30,701,341 shares of beneficial interest issued and outstanding)	$	9.17

Statement of Operations

For the six months ended June 30, 2010 (Unaudited)

Investment Income:
Interest	$	4,788,137
Expenses:
Investment advisory fee		782,361
Distribution (12b-1) and service fees		350,196
Accounting and administrative expenses		104,905
Reports to shareholders		21,407
Custody		19,455
Professional fees		17,385
Trustees’ fees and related expenses		16,854
Transfer agent fees		9,195
Other		12,912
Total expenses		1,334,670
Expense reduction		45,567
Net expenses		1,289,103
Net investment income	$	3,499,034
Realized and unrealized Gain/Loss:
Realized gain/loss:
Investments	$	2,699,493
Futures		1,398,648
Swap contracts		(4,581,402	)
Net Realized loss		(483,261	)
Unrealized appreciation/depreciation:
Beginning of the period		(1,193,281	)
End of the period:
Investments		9,695,233
Futures		227,582
		9,922,815
Net unrealized appreciation during the period		11,116,096
Net realized and unrealized gain	$	10,632,835
Net increase in net assets from operations	$	14,131,869

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Government Fund

Statements of Changes in Net Assets

(Unaudited)

	For the			For the
	six months ended			year ended
	June 30, 2010			December 31, 2009
From investment activities:
Operations:
Net investment income	$	3,499,034		$	6,415,830
Net realized gain/loss		(483,261	)		12,018,216
Net unrealized appreciation/depreciation during the period		11,116,096			(15,898,968	)
Change in net assets from operations		14,131,869			2,535,078
Distributions from net investment income:
Series I shares		(67,352	)		(2,682,417	)
Series II shares		(590,082	)		(15,211,001	)
Total distributions		(657,434	)		(17,893,418	)
Net change in net assets from investment activities		13,474,435			(15,358,340	)
From capital transactions:
Proceeds from shares sold		34,451,173			122,570,783
Net asset value of shares issued through dividend reinvestment		657,434			17,893,418
Cost of shares repurchased		(45,227,316	)		(93,695,171	)
Net change in net assets from capital transactions		(10,118,709	)		46,769,030
Total increase in net assets		3,355,726			31,410,690
Net assets:
Beginning of the period		310,375,688			278,964,998
End of the period (including accumulated undistributed net investment income of $2,626,411 and $(215,189), respectively)	$	313,731,414		$	310,375,688

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Government Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for one share of the Fund outstanding throughout the periods indicated.

	Series I Shares
	Six months ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Net asset value, beginning of the period	$	8.77		$	9.28		$	9.52		$	9.30		$	9.42		$	9.48
Net investment income(a)		0.11			0.22			0.35			0.45			0.44			0.35
Net realized and unrealized gain/loss		0.31			(0.13	)		(0.18	)		0.21			(0.14	)		(0.03	)
Total from investment operations		0.42			0.09			0.17			0.66			0.30			0.32
Less distributions from net investment income		0.02			0.60			0.41			0.44			0.42			0.38
Net asset value, end of the period	$	9.17		$	8.77		$	9.28		$	9.52		$	9.30		$	9.42
Total return*		4.78	%**		0.98	%		1.81	%		7.33	%		3.34	%		3.54	%
Net assets at end of the period (in millions)	$	32.3		$	34.7		$	51.4		$	55.0		$	57.5		$	63.1
Ratio of expenses to average net assets*		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets*		2.47	%		2.45	%		3.80	%		4.91	%		4.84	%		3.78	%
Portfolio turnover		216	%**		407	%		411	%		324	%		242	%		261	%
* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		0.63	%		0.61	%		0.60	%		0.62	%		0.65	%		0.64	%
Ratio of net investment income to average net assets		2.44	%		2.44	%		3.80	%		4.90	%		4.79	%		3.75	%

(a)	Based on average shares outstanding.
**	Non-Annualized

On June 1, 2010, the Fund’s former Class I Shares were reorganized into Series I Shares.

	Series II Shares
	Six months ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Net asset value, beginning of the period	$	8.78		$	9.26		$	9.51		$	9.30		$	9.42		$	9.48
Net investment income(a)		0.10			0.20			0.32			0.43			0.42			0.33
Net realized and unrealized gain/loss		0.31			(0.12	)		(0.18	)		0.20			(0.14	)		(0.03	)
Total from investment operations		0.41			0.08			0.14			0.63			0.28			0.30
Less distributions from net investment income		0.02			0.56			0.39			0.42			0.40			0.36
Net asset value, end of the period	$	9.17		$	8.78		$	9.26		$	9.51		$	9.30		$	9.42
Total return*(b)		4.66	%**		0.86	%		1.51	%		7.02	%		3.11	%		3.28	%
Net assets at end of the period (in millions)	$	281.5		$	275.7		$	227.6		$	223.4		$	147.2		$	108.4
Ratio of expenses to average net assets*		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Ratio of net investment income to average net assets*		2.21	%		2.19	%		3.50	%		4.63	%		4.62	%		3.52	%
Portfolio turnover		216	%**		407	%		411	%		324	%		242	%		261	%
* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of expenses to average net assets		0.88	%		0.86	%		0.85	%		0.87	%		0.90	%		0.89	%
Ratio of net investment income to average net assets		2.18	%		2.18	%		3.50	%		4.62	%		4.57	%		3.49	%

(a)	Based on average shares outstanding.
(b)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.
**	Non-Annualized

On June 1, 2010, the Fund’s former Class II Shares were reorganized into Series II Shares.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Government Fund

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Government Fund (the “Fund”) is organized as a series of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance Funds, (the “Trust”), a Delaware statutory trust, and is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust consists of forty-one 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 Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Life Investment Trust Government Portfolio (the “Acquired Fund”), an investment portfolio of Van Kampen Life Investment Trust. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class I and Class II Shares received Series I and Series II Shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class I and Class II Shares prior to the Reorganization are included with Series I and Series II Shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to seek to provide investors with high current return consistent with preservation of capital.

  The Fund currently offers two classes of shares, Series I and Series II Shares, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies.

  The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A.	Security Valuation — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Invesco Van Kampen V.I. Government Fund

	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Fair Value Measurements — GAAP defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
	Level 1 — Prices are based on quoted prices in active markets for identical investments.
	Level 2 — Prices are based on other significant observable inputs which may include quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.
	Level 3 — Prices are based on significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
C.	Security Transactions — Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis.
	The Fund may purchase and sell securities on a “when-issued”, “delayed delivery” or “forward commitment” basis, with settlement to occur at a later date. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security so purchased is subject to market fluctuations during this period. Purchasing securities on this basis involves a risk that the market value at the time of delivery may be lower than the agreed upon purchase price resulting in an unrealized loss. The Fund will segregate assets with the custodian having an aggregate value at least equal to the amount of the when-issued, delayed delivery or forward purchase commitments until payment is made. At June 30, 2010, the Fund had $4,278,654 of when-issued, delayed delivery or forward purchase commitments.
	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 on the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported on the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share on 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 on the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
D.	Income and Expenses — Interest income is recorded on an accrual basis. Discounts are accreted and premiums are amortized over the expected life of each applicable security. Income and expenses of the Fund are allocated on a pro rata basis to each class of shares, except for distribution and service fees and incremental transfer agency costs which are unique to each class of shares.
E.	Federal Income Taxes — It is the Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in “Interest Expense” and penalties in “Other” expenses on the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service and various states. Generally, each of the tax years in the four year period ended December 31, 2009, remains subject to examination by taxing authorities.
	The Fund intends to utilize provisions of the federal income tax laws which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. During the prior fiscal year, the Fund utilized capital losses carried forward of $8,076,228. At December 31, 2009, the Fund had an accumulated capital loss carryforward for tax purposes of $10,072,819 which will expire on December 31, 2016.

Invesco Van Kampen V.I. Government Fund

  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	$	9,096,763
Aggregate unrealized (depreciation) of investment securities		(21,725	)
Net unrealized appreciation of investment securities	$	9,075,038
Cost of Investments for tax purposes is $311,302,910.

F.

Distribution of Income and Gains — The Fund declares and pays dividends at least annually from net investment income and from net realized gains, if any. Distributions from net realized gains for book purposes may include short-term capital gains, including a portion of premiums received from written options, and gains on futures transactions. All short-term capital gains and a portion of futures gains are included in ordinary income for tax purposes.

The tax character of distributions paid during the year ended December 31, 2009 were as follows:

Distribution paid from ordinary income $ 17,893,418

  As of December 31, 2009, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income $ 658,137

Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of gains or losses recognized on securities for tax purposes but not for book purposes and the deferral of losses relating to wash sale transactions.

G.

Foreign Currency Translation — Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated at the rate of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at rates prevailing when accrued. Unrealized gains and losses on investments resulting from changes in exchange rates and the unrealized gains or losses on translations of other assets or liabilities denominated in foreign currencies are included in foreign currency translation on the Statement of Operations. Realized gains and losses on investments resulting from changes in exchange rates and the realized gains or losses on translations of other assets or liabilities denominated in foreign currencies are included in foreign currency transactions on the Statement of Operations.

NOTE 2—Investment Advisory Agreement and Other Transactions with 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	% Per Annum
First $500 million		0	.50%
Next $500 million		0	.45%
Over $1 billion		0	.40%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Funds’s average daily net assets.

  Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit the Fund’s expenses (excluding certain items discussed below) of Series I Shares to 0.60% and Series II Shares to 0.85% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Fund’s expenses to exceed the limit reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary or non-routine items; and (v) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. For the period June 1, 2010 to June 30, 2010, the Adviser waived advisory fees of $45,567 under this limitation.

  Prior to the Reorganization, Van Kampen had voluntarily agreed to waive fees and/or reimburse expenses of Class I and Class II Shares resulting in net expense ratios of 0.60% and 0.85%, respectively. Van Kampen did not waive fees and/or reimburse expenses under this agreement.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the period ended June 30, 2010, the Adviser did not waive any advisory fees under this agreement.

Invesco Van Kampen V.I. Government Fund

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $6,748 for accounting and fund administrative services and reimbursed $64,370 for services provided by insurance companies. Prior to the Reorganization, under separate accounting services and Chief Compliance Officer (“CCO”) employment agreements, Van Kampen Investments Inc. provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $33,787 to Van Kampen Investments Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $8,024 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown on the Statement of Operations as “Transfer Agent Fees.”

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or Invesco Distributors, Inc. (“IDI”).

  “Trustees’ Fees and Related Expenses” 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’ Fees and Related Expenses” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ Fees and Related Expenses” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  For the period ended June 30, 2010, the Fund paid legal fees of approximately $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 3—Share Information

For the six months ended June 30, 2010 and the year ended December 31, 2009, transactions were as follows:

	For the						For the
	six months ended						year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Value			Shares			Value
Sales:
Series I		221,985		$	1,971,324			495,270		$	4,487,721
Series II		3,642,039			32,479,849			13,183,520			118,083,062
Total Sales		3,864,024		$	34,451,173			13,678,790		$	122,570,783
Dividend Reinvestment:
Series I		7,593		$	67,352			301,921		$	2,682,417
Series II		66,525			590,082			1,712,142			15,211,001
Total Dividend Reinvestment		74,118		$	657,434			2,014,063		$	17,893,418
Repurchases:
Series I		(662,630	)	$	(5,904,696	)		(2,383,350	)	$	(21,385,604	)
Series II		(4,413,635	)		(39,322,620	)		(8,057,502	)		(72,309,567	)
Total Repurchases		(5,076,265	)	$	(45,227,316	)		(10,440,852	)	$	(93,695,171	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 85% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 4—Investment Transactions

During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, money market funds and U.S. Government securities, were $10,557,574 and $57,589,077, respectively. The cost of purchases and proceeds from sales of long-term U.S. Government securities, including paydowns on mortgage-backed securities, for the period were $654,356,355 and $632,452,527 respectively.

Invesco Van Kampen V.I. Government Fund

NOTE 5—Derivative Financial Instruments

A derivative financial instrument in very general terms refers to a security whose value is “derived” from the value of an underlying asset, reference rate, or index.

  The Fund may use derivative instruments for a variety of reasons, such as to attempt to protect the Fund against possible changes in the market value of its portfolio or to manage the Fund’s foreign currency exposure or to generate potential gain. All of the Fund’s holdings, including derivative instruments, are marked to market each day with the change in value reflected in unrealized appreciation/depreciation. Upon disposition, a realized gain or loss is generally recognized.

  Summarized below are the specific types of derivative financial instruments used by the Fund.

A.

Futures Contracts — The Fund is subject to interest rate risk or exchange rate risk in the normal course of pursuing its investment objectives. The Fund may use futures contracts to gain exposure to, or hedge against changes in the value of interest rates or exchange rates. A futures contract is an agreement involving the delivery of a particular asset on a specified future date at an agreed upon price. Upon entering into futures contracts, the Fund maintains an amount of cash or liquid securities with a value equal to a percentage of the contract amount with either a futures commission merchant pursuant to the rules and regulations promulgated under the 1940 Act, or with its custodian in an account in the broker’s name. This amount is known as initial margin. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (variation margin). When entering into futures contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. The risk of loss associated with a futures contract is in excess of the variation margin reflected on the Statement of Assets and Liabilities.

Transactions in futures contracts for the six months ended June 30, 2010 were as follows:

	Contracts
Outstanding at December 31, 2009		669
Futures Opened		3,301
Futures Closed		(3,604	)
Outstanding at June 30, 2010		366

B.	Option Contracts — The Fund is subject to interest rate risk or exchange rate risk in the normal course of pursing its investment objectives. The Fund may use options contracts to gain exposure to, or hedge against changes in the value of interest rates or exchange rates. An option contract gives the buyer the right, but not the obligation to buy (call) or sell (put) an underlying item at a fixed exercise (strike) price during a specified period. The Fund may purchase put and call options. Purchasing call options tends to increase the Fund’s exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund’s exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of “Total Investments” on the Statement of Assets and Liabilities. Premiums paid for purchasing options which expire are treated as realized losses.
	The Fund may write covered call and put options. Writing put options tends to increase the Fund’s exposure to the underlying instrument. Writing call options tends to decrease the Fund’s exposure to the underlying instrument. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as written options outstanding on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying securities to determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying security may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
	There were no transactions in written call options for the six months ended June 30, 2010.
C.	Interest Rate Swaps — The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swap contracts, including inflation asset swaps. Interest rate swaps, including inflation asset swaps, are contractual agreements to exchange interest payments calculated on a predetermined notional principal amount except in the case of inflation asset swaps where the principal amount is periodically adjusted for inflation. Interest rate swaps generally involve one party paying a fixed interest rate and the other party paying a variable rate. The Fund will usually enter into interest rate swaps on a net basis, i.e., the two payments are netted out in a cash settlement on the payment date or dates specified in the instrument, with the Fund receiving or paying, as the case may be, only the net amount of the two payments. The Fund accrues the net amount with respect to each swap on a daily basis. This net amount is recorded within unrealized appreciation/depreciation on swap contracts. In a zero-coupon interest rate swap, payments only occur at maturity, at which time one counterparty pays the total compounded fixed rate over the life of the swap and the other pays the total compounded floating rate that would have been earned had a series of LIBOR investments been rolled over through the life of the swap. Upon cash settlement of the payments, the net amount is recorded as realized gain/loss on swap contracts on the Statement of Operations. The risks of interest rate swaps include changes in market conditions that will affect the value of the contract or the cash flows and the possible inability of the counterparty to fulfill its obligation under the agreement. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty of the contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by having a master netting arrangement between the Fund and

Invesco Van Kampen V.I. Government Fund

the counterparty and by posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. For the six months ended June 30, 2010, the average notional amount of interest rate swap contracts entered into by the Fund was $103,242

  Swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. Therefore, swaps are subject to the risk of default or non-performance by the counterparty. If there is a default by the counterparty to a swap agreement, the Fund will have contractual remedies pursuant to the agreements related to the transaction. Counterparties are required to pledge collateral daily (based on the valuation of each swap) on behalf of the Fund with a value approximately equal to the amount of any unrealized gain. Reciprocally, when the Fund has an unrealized loss on a swap contract, the Fund has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Cash collateral is disclosed in the table following the Schedule of Investments. Cash collateral has been offset against open swap contracts and are included within “Swap Contracts” on the Statement of Assets and Liabilities. For cash collateral received, the Fund pays a monthly fee to the counterparty based on the effective rate for Federal Funds. This fee, when paid, is included within realized loss on swap contracts on the Statement of Operations.

  The following table sets forth the fair value of the Fund’s derivative contracts by primary risk exposure as of June 30, 2010.

	Asset Derivatives					Liability Derivatives
	Balance Sheet					Balance Sheet
Primary Risk Exposure	Location		Fair Value			Location		Fair Value
Interest Rate Contracts		Variation Margin on Futures	$	429,599	*		Variation Margin on Futures	$	(202,017	)*

* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments Footnotes. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.

  The following tables set forth by primary risk exposure the Fund’s realized gains/losses and change in unrealized appreciation/depreciation by type of derivative contract for the six months ended June 30, 2010.

Amount of Realized Gain/Loss on Derivative Contracts
Primary Risk Exposure	Futures		Swaps			Total
Interest Rate Contracts	$	1,398,648	$	(4,581,402	)	$	(3,182,754	)
Change in Unrealized Appreciation/Depreciation on Derivative Contracts
Primary Risk Exposure	Futures		Swaps			Total
Interest Rate Contracts	$	20,756	$	1,777,683		$	1,798,439

NOTE 6—Mortgage Backed Securities

The Fund may invest in various types of Mortgage Backed Securities. A Mortgage Backed Security (MBS) is a pass-through security created by pooling mortgages and selling participations in the principal and interest payments received from borrowers. Most of these securities are guaranteed by federally sponsored agencies — Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC). GNMA is a wholly owned corporate instrumentality of the United States whose securities and guarantees are backed by the full faith and credit of the United States. FNMA, a federally chartered and privately owned corporation, and FHLMC, a federal corporation, are instrumentalities of the United States. Securities of FNMA and FHLMC include those issued in principal only or interest only components. On September 7, 2008, FNMA and FHLMC were placed into conservatorship by their new regulator, the Federal Housing Finance Agency. Simultaneously, the U.S. Treasury made a commitment of indefinite duration to maintain the positive net worth of both entities. No assurance can be given that the initiatives discussed above with respect to the debt and mortgage-backed securities issued by FNMA and FHLMC will be successful. A Collateralized Mortgage Obligation (CMO) is a bond, which is collateralized by a pool of MBS’s.

  These securities derive their value from or represent interests in a pool of mortgages, or mortgage securities. Mortgage securities are subject to prepayment risk — the risk that, as mortgage interest rates fall, borrowers will refinance and “prepay” principal. A fund holding mortgage securities that are experiencing prepayments will have to reinvest these payments at lower prevailing interest rates. On the other hand, when interest rates rise, borrowers are less likely to refinance resulting in lower prepayments. This can effectively extend the maturity of a fund’s mortgage securities resulting in greater price volatility. It can be difficult to measure precisely the remaining life of a mortgage security or the average life of a portfolio of such securities.

  To the extent a fund invests in mortgage securities offered by non-governmental issuers, such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers, the Fund may be subject to additional risks. Timely payment of interest and principal of non-governmental issuers are supported by various forms of private insurance or guarantees, including individual loan, title, pool and hazard insurance purchased by the issuer. There can be no assurance that the private insurers can meet their obligations under the policies.

  An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of a mortgage backed security and could result in losses to a Fund. The risk of such defaults is generally higher in the case of mortgage pools that include subprime mortgages. Subprime mortgages refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payment on their mortgages.

NOTE 7—Distribution and Service Plans

The Trust has entered into a master distribution agreement with IDI to serve as the distributor for the Fund. The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II Shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II Shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II Shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II Shares of the

Invesco Van Kampen V.I. Government Fund

Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $292,458 to Van Kampen Funds Inc. based on the annual rate of 0.25% of the Acquired Funds’s average daily net assets of Series II shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed on the Statement of Operations as “Distribution (12b-1) and Service fees.”

NOTE 8—Indemnifications

Under the Trust’s organizational documents, each trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 9—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 10—Change in Independent Registered Public Accounting Firm

In connection with the Reorganization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Government Fund

Calculating your ongoing Fund expenses

Expense Example

As a policyholder of the Fund, you incur ongoing costs, including management fees, distribution and 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 the ongoing costs of investing in other funds.

  The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 1/1/10 — 6/30/10.

Actual Expense

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below 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 cost 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. Therefore, the second line of the table is useful in comparing ongoing costs and will not help you determine the relative total costs of owning different funds that have transactional costs, such as sales charges (loads), or exchanges fees.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses
	Account Value		Account Value		Paid During		Account Value		Paid During
Series	(1/1/10)		(6/30/10)		Period*		(6/30/10)		Period*
I	$	1,000.00	$	1,047.76	$	3.05	$	1,021.82	$	3.01
II		1,000.00		1,046.56		4.31		1,020.58		4.26

*  Expenses are equal to the Fund’s annualized expense ratio of 0.60% and 0.85% for Series I and II Shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). These expense ratios reflect an expense waiver.

Assumes all dividends and distributions were reinvested.

Invesco Van Kampen V.I. Government Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. And Its Affiliates

  The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Government Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these

Invesco Van Kampen V.I. Government Fund

services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Government Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Van Kampen Life Investment Trust Government Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		31,103,476		647,467		1,876,694		0

Invesco Van Kampen V.I. Government Fund

          Invesco Van Kampen V.I. Growth and Income Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIGRI-SAR-1

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-8.28	%
Series II Shares	-8.45
Russell 1000 Value Index▼ (Broad Market/Style-Specific Index)	-5.12

^▼ Lipper Inc.

The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (12/23/96)	6.67	%
10 Years	3.15
5 Years	-0.07
1 Year	15.20
Series II Shares
Inception (9/18/00)	2.15	%
5 Years	-0.32
1 Year	14.90

Effective June 1, 2010, Class I and Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Growth and Income Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Growth and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.62% and 0.87%, respectively. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.88% and 1.13%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Invesco Van Kampen V.I. Growth and Income Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Invesco Van Kampen V.I. Growth and Income Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks–96.5%
Aerospace & Defense–0.5%
General Dynamics Corp.		122,314	$	7,162,708
Air Freight & Logistics–0.7%
FedEx Corp.		151,591		10,628,045
Apparel Retail–0.9%
Gap, Inc.		718,361		13,979,305
Application Software–0.9%
Amdocs Ltd. (Guernsey)(a)		529,709		14,222,687
Asset Management & Custody Banks–1.3%
Janus Capital Group, Inc.		776,526		6,895,551
State Street Corp.		401,917		13,592,833
				20,488,384
Automobile Manufacturers–0.6%
Ford Motor Co.(a)		874,176		8,811,694
Biotechnology–1.2%
Genzyme Corp.(a)		368,510		18,709,253
Broadcasting & Cable TV–1.6%
Comcast Corp., Class A		1,445,377		25,106,198
Broadcasting–Diversified–1.3%
Time Warner Cable, Inc.		369,411		19,238,925
Communications Equipment–1.4%
Cisco Systems, Inc.(a)		1,003,240		21,379,044
Computer Hardware–2.9%
Dell, Inc.(a)		1,342,257		16,187,619
Hewlett-Packard Co.		650,057		28,134,467
				44,322,086
Consumer Electronics–1.0%
Sony Corp.–ADR (Japan)		580,446		15,486,299
Data Processing & Outsourced Services–0.9%
Western Union Co.		904,918		13,492,327
Diversified Banks–1.7%
U.S. Bancorp		438,047		9,790,350
Wells Fargo & Co.		662,461		16,959,002
				26,749,352
Diversified Chemicals–2.7%
Bayer AG–ADR (Germany)		277,501		15,601,966
Dow Chemical Co.		667,765		15,839,386
PPG Industries, Inc.		174,089		10,516,717
				41,958,069
Diversified Commercial & Professional Services–0.5%
Cintas Corp.		347,883		8,338,755
Diversified Metals & Mining–0.6%
Freeport-McMoRan Copper & Gold, Inc.		156,405		9,248,228
Drug Retail–0.8%
Walgreen Co.		461,835		12,330,994
Electric Utilities–4.2%
American Electric Power Co., Inc.		1,014,156		32,757,239
Edison International		218,102		6,918,195
Entergy Corp.		168,762		12,086,734
FirstEnergy Corp.		362,285		12,763,301
				64,525,469
Food Distributors–1.2%
Sysco Corp.		618,545		17,671,831
Health Care Distributors–0.7%
Cardinal Health, Inc.		317,623		10,675,309
Health Care Equipment–1.3%
Covidien PLC (Ireland)		492,421		19,785,476
Home Improvement Retail–1.6%
Home Depot, Inc.		895,482		25,136,180
Human Resource & Employment Services–1.0%
Manpower, Inc.		196,302		8,476,320
Robert Half International, Inc.		303,869		7,156,115
				15,632,435
Hypermarkets & Super Centers–1.8%
Wal-Mart Stores, Inc.		563,880		27,105,712
Industrial Conglomerates–5.8%
General Electric Co.		3,438,525		49,583,531
Siemens AG–ADR (Germany)		181,604		16,259,006
Tyco International Ltd. (Switzerland)		648,865		22,859,514
				88,702,051

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Growth and Income Fund

	Shares		Value
Industrial Machinery–2.0%
Dover Corp.		392,907	$	16,419,584
Ingersoll-Rand PLC (Ireland)		421,531		14,538,604
				30,958,188
Insurance Brokers–3.2%
Marsh & McLennan Cos., Inc.		2,187,368		49,325,148
Integrated Oil & Gas–7.2%
ConocoPhillips		340,078		16,694,429
Exxon Mobil Corp.		259,178		14,791,289
Hess Corp.		305,291		15,368,349
Occidental Petroleum Corp.		475,669		36,697,863
Royal Dutch Shell PLC–ADR (United Kingdom)		541,895		27,213,967
				110,765,897
Integrated Telecommunication Services–1.0%
Verizon Communications, Inc.		532,502		14,920,706
Internet Software & Services–3.2%
eBay, Inc.(a)		1,734,451		34,012,584
Yahoo!, Inc.(a)		1,136,669		15,720,132
				49,732,716
Investment Banking & Brokerage–1.4%
Charles Schwab Corp.		1,469,259		20,834,093
Life & Health Insurance–0.7%
Principal Financial Group, Inc.		442,609		10,374,755
Managed Health Care–1.4%
UnitedHealth Group, Inc.		761,710		21,632,564
Motorcycle Manufacturers–0.5%
Harley-Davidson, Inc.		345,664		7,684,111
Movies & Entertainment–4.8%
Time Warner, Inc.		994,725		28,757,500
Viacom, Inc., Class B		1,409,145		44,204,878
				72,962,378
Office Services & Supplies–0.6%
Avery Dennison Corp.		278,817		8,958,390
Oil & Gas Equipment & Services–1.2%
Schlumberger Ltd. (Netherlands Antilles)		333,627		18,462,918
Oil & Gas Exploration & Production–2.5%
Anadarko Petroleum Corp.		455,784		16,449,244
Devon Energy Corp.		245,453		14,952,997
Noble Energy, Inc.		116,400		7,022,412
				38,424,653
Other Diversified Financial Services–8.2%
Bank of America Corp.		2,586,449		37,167,272
Citigroup, Inc.(a)		4,091,053		15,382,360
JPMorgan Chase & Co.		1,997,497		73,128,365
				125,677,997
Packaged Foods & Meats–2.9%
Kraft Foods, Inc., Class A		1,206,831		33,791,268
Unilever NV (Netherlands)		402,899		11,007,201
				44,798,469
Personal Products–1.0%
Avon Products, Inc.		574,599		15,226,873
Pharmaceuticals–6.7%
Abbott Laboratories		249,825		11,686,813
Bristol-Myers Squibb Co.		1,168,555		29,143,762
Merck & Co., Inc.		716,935		25,071,217
Pfizer, Inc.		1,482,897		21,146,111
Roche Holdings AG–ADR (Switzerland)		462,867		15,999,785
				103,047,688
Property & Casualty Insurance–1.2%
Chubb Corp.		353,886		17,697,839
Regional Banks–3.8%
BB&T Corp.		510,378		13,428,045
Fifth Third Bancorp		918,485		11,288,181
PNC Financial Services Group, Inc.		583,836		32,986,734
				57,702,960
Semiconductor Equipment–0.5%
Lam Research Corp.(a)		198,452		7,553,083
Semiconductors–1.2%
Intel Corp.		920,313		17,900,088
Soft Drinks–0.8%
Coca-Cola Co.		238,498		11,953,520
Wireless Telecommunication Services–1.4%
Vodafone Group PLC–ADR (United Kingdom)		1,073,710		22,193,586
Total Common Stocks–96.5% (Cost $1,563,570,500)				1,479,675,436
Money Market Funds–2.5%
Liquid Assets Portfolio–Institutional Class(b)		19,149,546		19,149,546
Premier Portfolio–Institutional Class(b)		19,149,546		19,149,546
Total Money Market Funds–2.5% (Cost $38,299,092)				38,299,092
TOTAL INVESTMENTS–99.0% (Cost $1,601,869,592)				1,517,974,528
OTHER ASSETS IN EXCESS OF LIABILITIES–1.0%				15,994,347
NET ASSETS–100.0%			$	1,533,968,875

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Growth and Income Fund

Investment Abbreviations:

ADR — American Depositary Receipt

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.

(a)	Non-income producing security.
(b)	The money market fund and the Fund are affiliated by having the same investment advisor.

Portfolio Composition

By sector, based on Net Assets

Financials	21.4	%
Consumer Discretionary	12.3
Health Care	11.3
Industrials	11.1
Information Technology	11.0
Energy	10.9
Consumer Staples	8.5
Utilities	4.2
Materials	3.3
Telecommunication Services	2.5
Money Market Funds Plus Other Assets in Excess of Liabilities	3.5

Fair Value Measurements

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below. (See Note 1(B) in the Notes to Financial Statements for further information regarding fair value measurements.)

	Level 1		Level 2		Level 3
			Other
			Significant		Significant
	Quoted		Observable		Unobservable
	Prices		Inputs		Inputs		Total
Equity Securities	$	1,486,372,777	$	31,601,751	$	—	$	1,517,974,528

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Growth and Income Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $1,563,570,500)	$	1,479,675,436
Investment in affiliated money market funds, at value and cost		38,299,092
Receivables:
Fund shares sold		18,196,512
Dividends		4,100,497
Investments sold		3,667,090
Other		946
Total assets		1,543,939,573
Liabilities:
Payables:
Investments purchased		8,810,346
Distributor and affiliates		649,086
Fund shares repurchased		270,351
Investment advisory fee		2,811
Accrued expenses		238,104
Total liabilities		9,970,698
Net assets	$	1,533,968,875
Net assets consist of:
Capital (par value of $0.001 per share with an unlimited number of shares authorized)	$	1,769,322,627
Accumulated undistributed net investment income		10,735,859
Net unrealized depreciation		(83,895,064	)
Accumulated net realized loss		(162,194,547	)
Net assets	$	1,533,968,875
Net asset value, offering price and redemption price per share:
Series I shares (Based on net assets of $135,057,374 and 9,003,605 shares of beneficial interest issued and outstanding)	$	15.00
Series II shares (Based on net assets of $1,398,911,501 and 93,304,100 shares of beneficial interest issued and outstanding)	$	14.99

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment Income:
Dividends (net of foreign withholding taxes of $306,715)	$	18,327,562
Interest		24,741
Total income		18,352,303
Expenses:
Investment advisory fee		4,745,465
Distribution (12b-1) and service fees		1,909,618
Accounting and administrative expenses		455,658
Reports to shareholders		48,094
Trustees’ fees and related expenses		41,948
Professional fees		37,196
Custody		35,044
Transfer agent fees		10,316
Other		21,852
Total expenses		7,305,191
Net investment income	$	11,047,112
Realized and unrealized gain/loss:
Net realized gain	$	36,543,397
Unrealized appreciation/depreciation:
Beginning of the period		102,462,825
End of the period		(83,895,064	)
Net unrealized depreciation during the period		(186,357,889	)
Net realized and unrealized loss	$	(149,814,492	)
Net decrease in net assets from operations	$	(138,767,380	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Growth and Income Fund

Statements of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
From investment activities:
Operations:
Net investment income	$	11,047,112		$	21,012,021
Net realized gain/loss		36,543,397			(61,046,171	)
Net unrealized appreciation/depreciation during the period		(186,357,889	)		367,300,062
Change in net assets from operations		(138,767,380	)		327,265,912
Distributions from net investment income:
Series I shares		(156,262	)		(5,735,264	)
Series II shares		(1,556,159	)		(46,515,143	)
Total distributions		(1,712,421	)		(52,250,407	)
Net change in net assets from investment activities		(140,479,801	)		275,015,505
From capital transactions:
Proceeds from shares sold		100,774,977			128,402,609
Net assets value of shares issued through dividend reinvestment		1,712,421			52,250,407
Cost of shares repurchased		(96,382,931	)		(169,496,944	)
Net change in net assets from capital transactions		6,104,467			11,156,072
Total increase/decrease in net assets		(134,375,334	)		286,171,577
Net assets:
Beginning of the period		1,668,344,209			1,382,172,632
End of the period (including accumulated undistributed net investment income of $10,735,859 and $1,401,168, respectively)	$	1,533,968,875		$	1,668,344,209

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Growth and Income Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for one share of the Fund outstanding throughout the periods indicated.

	Series I shares
	Six months ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Net asset value, beginning of the period	$	16.37		$	13.74		$	21.36		$	22.00		$	20.49		$	19.32
Net investment income(a)		0.13			0.24			0.36			0.39			0.38			0.28
Net realized and unrealized gain/loss		(1.48	)		2.98			(6.95	)		0.16			2.75			1.59
Total from investment operations		(1.35	)		3.22			(6.59	)		0.55			3.13			1.87
Less:
Distributions from net investment income		0.02			0.59			0.38			0.36			0.25			0.22
Distributions from realized gain		—			—			0.65			0.83			1.37			0.48
Total distributions		0.02			0.59			1.03			1.19			1.62			0.70
Net asset value, end of the period	$	15.00		$	16.37		$	13.74		$	21.36		$	22.00		$	20.49
Total return		(8.28	)%*		24.37	%		(32.03	)%		2.80	%		16.23	%		9.99	%
Net assets at end of the period (in millions)	$	135.1		$	153.7		$	146.0		$	263.5		$	307.7		$	312.4
Ratio of expenses to average net assets		0.64	%		0.62	%		0.61	%		0.60	%		0.60	%		0.61	%
Ratio of net investment income to average net assets		1.54	%		1.72	%		2.06	%		1.80	%		1.85	%		1.44	%
Portfolio turnover		13	%*		55	%		50	%		28	%		28	%		42	%

	Series II shares
	Six months ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007			2006			2005
Net asset value, beginning of the period	$	16.39		$	13.71		$	21.31		$	21.96		$	20.46		$	19.29
Net investment income(a)		0.11			0.20			0.32			0.34			0.32			0.23
Net realized and unrealized gain/loss		(1.49	)		2.99			(6.94	)		0.15			2.76			1.59
Total from investment operations		(1.38	)		3.19			(6.62	)		0.49			3.08			1.82
Less:
Distributions from net investment income		0.02			0.51			0.33			0.31			0.21			0.17
Distributions from realized gain		—			—			0.65			0.83			1.37			0.48
Total distributions		0.02			0.51			0.98			1.14			1.58			0.65
Net asset value, end of the period	$	14.99		$	16.39		$	13.71		$	21.31		$	21.96		$	20.46
Total return(b)		(8.45	)%*		24.11	%		(32.21	)%		2.52	%		15.97	%		9.72	%
Net assets at end of the period (in millions)	$	1,398.9		$	1,514.7		$	1,236.2		$	1,843.7		$	1,661.7		$	1,247.5
Ratio of expenses to average net assets		0.89	%		0.87	%		0.86	%		0.85	%		0.85	%		0.86	%
Ratio of net investment income to average net assets		1.29	%		1.45	%		1.82	%		1.54	%		1.59	%		1.18	%
Portfolio turnover		13	%*		55	%		50	%		28	%		28	%		42	%

(a)	Based on average shares outstanding.
(b)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.
*	Non-Annualized
	On June 1, 2010, the Fund’s former Class I and Class II shares were reorganized into Series I and Series II shares, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Growth and Income Fund

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Growth and Income Fund (the “Fund”), is organized as a series of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance Funds, (the “Trust”), a Delaware statutory trust, and is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust consists of forty-one 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. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Life Investment Trust Growth and Income Portfolio (the “Acquired Fund”), an investment portfolio of Van Kampen Life Investment Trust. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class I and Class II Shares received Series I and Series II Shares, respectively of the Fund.

  Information for the Acquired Fund’s — Class I and Class II Shares prior to the Reorganization are included with Series I and Series II Shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to seek long-term growth of capital and income through investments in equity securities, including common and preferred stocks and securities convertible into common and preferred stocks.

  The Fund currently offers two classes of shares, Series I and Series II Shares, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies.

  The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A.	Security Valuation — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Invesco Van Kampen V.I. Growth and Income Fund

	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Fair Value Measurements — GAAP defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
	Level 1 — Prices are based on quoted prices in active markets for identical investments.
	Level 2— Prices are based on other significant observable inputs which may include quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.
	Level 3— Prices are based on significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
C.	Security Transactions — Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis.
	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 on the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported on the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share on 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 on 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 on the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
D.	Income and Expenses — Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Income and expenses of the Fund are allocated on a pro rata basis to each class of shares, except for distribution and service fees and incremental transfer agency costs which are unique to each class of shares.
E.	Federal Income Taxes — It is the Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation, as applicable, as the income is earned or capital gains are recorded. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in “Interest Expense” and penalties in “Other” expenses on the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service. Generally, each of the tax years in the four year period ended December 31, 2009, remains subject to examination by taxing authorities.
	The Fund intends to utilize provisions of the federal income tax law which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. At December 31, 2009, the Fund had an accumulated capital loss carryforward for tax purposes of $196,004,014, which will expire according to the following schedule:

Amount		Expiration
$	60,998,232		December 31, 2016
	135,005,782		December 31, 2017

Invesco Van Kampen V.I. Growth and Income Fund

  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	$	66,688,026
Aggregate unrealized (depreciation) of investment securities		(153,317,019	)
Net unrealized depreciation of investment securities	$	(86,628,993	)
Cost of investments for tax purposes is $1,604,603,521.

F.

Distribution of Income and Gains — The Fund declares and pays dividends at least annually from net investment income and from net realized gains, if any. Distributions from net realized gains for book purposes may include short-term capital gains and a portion of futures gains, which are included as ordinary income for tax purposes. Distributions from the Fund are recorded on the ex-distribution date.

The tax character of distributions paid during the year ended December 31, 2009 were as follows:

Distributions paid from:
Ordinary income	$	52,250,407

  As of December 31, 2009, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income $ 1,713,385

Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of the deferral of losses relating to wash sale transactions.

G.

Foreign Currency Translation — Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated at the rate of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at rates prevailing when accrued. Realized and unrealized gains and losses on securities resulting from changes in exchange rates are not segregated for financial reporting purposes from amounts arising from changes in the market prices of securities. The unrealized gains and losses on translations of other assets or liabilities denominated in foreign currencies, if any, are included in foreign currency translation on the Statement of Operations. Realized gains and losses on foreign currency transactions, if any, on the Statement of Operations include the net realized amount from the sale of the foreign currency and the amount realized between trade date and settlement date on security transactions.

NOTE 2—Investment Advisory Agreement and Other Transactions with 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	% Per Annum
First $500 million		0	.60%
Over $500 million		0	.55%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Funds’s average daily net assets.

  Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit the Fund’s expenses (excluding certain items discussed below) of Series I Shares to 0.62% and Series II Shares to 0.87% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Fund’s expenses to exceed the limit reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary or non-routine items; and (v) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under limitation.

  Prior to the Reorganization, Van Kampen had voluntarily agreed to waive fees and/or reimburse the Acquired Fund’s expenses as a percentage of average daily net assets in excess of 0.75% and 1.00% for Class I and Class II Shares, respectively. Van Kampen did not waive fees and/or reimburse expenses under this agreement.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the period ended June 30, 2010, the Adviser did not waive any advisory fees under this agreement.

Invesco Van Kampen V.I. Growth and Income Fund

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $32,160 for accounting and fund administrative services and reimbursed $329,506 for services provided by insurance companies. Prior to the Reorganization, under separate Accounting Services and Chief Compliance Officer (“CCO”) Employment agreements, Van Kampen Investments Inc. provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $93,992 to Van Kampen Investments Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $9,145 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown on the Statement of Operations as “Transfer agent fees.”

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or Invesco Distributors, Inc. (“IDI”).

  “Trustees’ Fees and Related Expenses” 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’ Fees and Related Expenses” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ Fees and Related Expenses” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  For the period ended June 30, 2010, the Fund paid legal fees of approximately $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

  Prior to the Reorganization, the Acquired Fund paid brokerage commissions to Morgan Stanley & Co., Inc., an affiliate of the Acquired Fund, totaling $10,658.

NOTE 3—Share Information

  For the six months ended June 30, 2010 and year ended December 31, 2009, transactions were as follows:

	For the six months						For the year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Value			Shares			Value
Sales:
Series I		543,688		$	9,119,848			1,149,207		$	15,623,017
Series II		5,601,285			91,655,129			8,282,559			112,779,592
Total Sales		6,144,973		$	100,774,977			9,431,766		$	128,402,609
Dividend Reinvestment:
Series I		9,138		$	156,262			424,064		$	5,735,264
Series II		91,003			1,556,159			3,426,092			46,515,143
Total Dividend Reinvestment		100,141		$	1,712,421			3,850,156		$	52,250,407
Repurchases:
Series I		(933,150	)	$	(15,580,359	)		(2,812,355	)	$	(38,075,961	)
Series II		(4,823,764	)		(80,802,572	)		(9,409,312	)		(131,420,983	)
Total Repurchases		(5,756,914	)	$	(96,382,931	)		(12,221,667	)	$	(169,496,944	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 83% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. In addition, 0.7% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are mutual funds that are advised by Invesco.

NOTE 4—Investment Transactions

During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments and money market funds, were $208,890,905 and $229,502,473, respectively.

Invesco Van Kampen V.I. Growth and Income Fund

NOTE 5—Distribution and Service Plans

The Trust has entered into a master distribution agreement with IDI to serve as the distributor for the Fund. The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II Shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II Shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II Shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II Shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $1,609,660 to Van Kampen Funds Inc. based on the annual rate of 0.25% of the Acquired Funds’ average daily net assets of Class II Shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed on the Statement of Operations as “Distribution (12b-1) and Service Fees.”

NOTE 6—Indemnifications

Under the Trust’s organizational documents, each trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Change in Independent Registered Public Accounting Firm

In connection with the Reorganization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Growth and Income Fund

Calculating your ongoing Fund expenses

Expense Example

As a policyholder of the Fund, you incur ongoing costs, including management fees, distribution and 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 the 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 1/1/10— 6/30/10.

Actual Expense

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below 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 cost 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. Therefore, the second line of the table is useful in comparing ongoing costs and will not help you determine the relative total costs of owning different funds that have transactional costs, such as sales charges (loads) and redemption fees, or exchanges.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses
	Account Value		Account Value		Paid During		Account Value		Paid During
Series	(1/1/10)		(6/30/10)		Period*		(6/30/10)		Period*
I	$	1,000.00	$	917.22	$	3.04	$	1,021.62	$	3.21
II		1,000.00		915.49		4.23		1,020.38		4.46

*  Expenses are equal to the Fund’s annualized expense ratio of 0.64% and 0.89% for Series I and II Shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Assumes all dividends and distributions were reinvested.

Invesco Van Kampen V.I. Growth and Income Fund

Approval of Investment Advisory and Sub-Advisory Agreements with Invesco Advisers, Inc. and its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Growth and Income Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco

Invesco Van Kampen V.I. Growth and Income Fund

Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Growth and Income Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Van Kampen Life Investment Trust Growth and Income Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		80,969,282		2,228,258		5,510,353		0

Invesco Van Kampen V.I. Growth and Income Fund

          Invesco Van Kampen V.I. High Yield Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIHYI-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	2.75	%
Series II Shares	2.55
Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index6 (Broad Market/Style-Specific Index)	4.45

⁶ Lipper Inc.

The Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index is an unmanaged index that covers U.S. corporate, fixed-rate, non-investment grade debt with at least one year to maturity and at least $150 million in par outstanding. Index weights for each issuer are capped at 2%.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns

As of 6/30/10

Series I Shares
Inception (1/2/97)	4.39	%
10 Years	3.62
5 Years	5.19
1 Year	20.25
Series II Shares
10 Years	3.35	%
5 Years	4.91
1 Year	19.86

Effective June 1, 2010, Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I shares of Invesco Van Kampen V.I. High Yield Fund. Returns shown above for Series I shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. High Yield Fund. Share class returns will differ from the predecessor fund because of different expenses.

     Series II shares incepted on June 1, 2010. Series II shares performance shown prior to that date is that of the predecessor fund’s Class I shares restated to reflect the higher 12b-1 fees applicable to the predecessor fund’s Series II shares. Class I shares performance reflects any applicable fee waivers or expense reimbursements. The inception date of the predecessor fund’s Class I shares is January 2, 1997.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.81% and 1.06%, 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 Series I and Series II shares was 0.98% and 1.23%, 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.

     Invesco Van Kampen V.I. High Yield Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. High Yield Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Principal
	Amount		Value
Bonds & Notes–95.1%
Advertising–1.5%
Affinion Group, Inc., 11.50%, 10/15/15	$	380,000	$	399,950
Lamar Media Corp., 7.875%, 04/15/18(b)		70,000		70,700
				470,650
Aerospace & Defense–2.5%
Bombardier, Inc., 7.75%, 03/15/20(b)		110,000		114,400
Hexcel Corp., 6.75%, 02/01/15		150,000		147,750
L-3 Communications Corp., 5.875%, 01/15/15		215,000		213,387
Transdigm, Inc., 7.75%, 07/15/14(b)		170,000		170,850
Triumph Group, Inc., 8.00%, 11/15/17		135,000		129,938
				776,325
Airlines–1.3%
Continental Airlines 2007-1 Class C Pass Through Trust, 7.339%, 04/19/14		106,209		102,226
Delta Air Lines, 9.50%, 09/15/14(b)		185,000		195,175
United Air Lines, Inc., 9.875%, 08/01/13(b)		95,000		98,325
				395,726
Aluminum–0.7%
Century Aluminum Co., 8.00%, 05/15/14		35,000		33,075
Novelis, Inc. (Canada), 7.25%, 02/15/15		180,000		175,500
				208,575
Apparel Retail–0.1%
Collective Brands, Inc., 8.25%, 08/01/13		45,000		45,563
Apparel, Accessories & Luxury Goods–0.9%
Oxford Industries, Inc., 11.375%, 07/15/15		175,000		193,813
Quiksilver, Inc., 6.875%, 04/15/15		100,000		91,250
				285,063
Asset Management & Custody Banks–0.4%
Apria Healthcare Group, Inc., 12.375%, 11/01/14(b)		105,000		113,006
Auto Parts & Equipment–0.3%
Tenneco, Inc., 8.125%, 11/15/15		105,000		106,313
Automobile Manufacturers–1.0%
Ford Motor Co., 7.45%, 07/16/31		250,000		226,250
General Motors Corp., 8.375%, 07/15/33(c)		260,000		83,850
				310,100
Broadcasting–0.2%
Clear Channel Worldwide, 9.25%, 12/15/17(b)		70,000		70,613
Building Products–1.4%
Building Materials Corp. of America, 7.50%, 03/15/20(b)		35,000		34,125
Gibraltar Industries, Inc., 8.00%, 12/01/15		105,000		102,900
Nortek, Inc., 11.00%, 12/01/13		110,000		115,225
Ply Gem Industries, Inc., 11.75%, 06/15/13		195,000		204,262
				456,512
Cable & Satellite–6.8%
Charter Communications Operating LLC/Charter Communications Operating Capital, 10.875%, 09/15/14(b)		345,000		382,519
CSC Holdings, Inc., 8.50%, 06/15/15		195,000		202,800
CSC Holdings, Inc., 8.625%, 02/15/19		455,000		480,594
DISH DBS Corp., 7.00%, 10/01/13		510,000		527,850
Hughes Network Systems LLC/HNS Finance Corp., 9.50%, 04/15/14		140,000		141,400
Virgin Media Finance PLC, 9.125%, 08/15/16		230,000		239,200
XM Satellite Radio, Inc., 13.00%, 08/01/13(b)		150,000		164,437
				2,138,800

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. High Yield Fund

	Principal
	Amount		Value
Casinos & Gaming–4.4%
Ameristar Casinos, Inc., 9.25%, 06/01/14	$	185,000	$	194,712
Great Canadian Gaming Co., 7.25%, 02/15/15(b)		55,000		54,725
Harrah’s Operating Co., Inc., 5.625%, 06/01/15		114,000		74,100
Harrah’s Operating Co., Inc., 11.25%, 06/01/17		171,000		179,977
Las Vegas Sands Corp., 6.375%, 02/15/15		115,000		110,688
MGM Mirage, 6.75%, 04/01/13		295,000		259,600
MGM Mirage, 13.00%, 11/15/13		175,000		201,687
Scientific Games International, Inc., 9.25%, 06/15/19		150,000		154,500
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 7.875%, 05/01/20(b)		145,000		146,088
				1,376,077
Coal & Consumable Fuels–0.5%
Consol Energy, Inc., 8.25%, 04/01/20(b)		35,000		36,794
Foundation PA Coal Co. LLC, 7.25%, 08/01/14		105,000		107,362
				144,156
Commodity Chemicals–0.4%
Westlake Chemical Corp., 6.625%, 01/15/16		135,000		130,106
Communications Equipment–0.6%
Avaya, Inc., 9.75%, 11/01/15		195,000		186,713
Construction & Farm Machinery & Heavy Trucks–2.5%
Case New Holland, Inc., 7.75%, 09/01/13		150,000		154,500
Case New Holland, Inc., 7.875%, 12/01/17(b)		75,000		76,500
Navistar International Corp., 8.25%, 11/01/21		475,000		483,312
Oshkosh Corp., 8.50%, 03/01/20		75,000		78,188
				792,500
Construction Materials–0.5%
Hanson Ltd., 7.875%, 09/27/10		100,000		100,563
Texas Industries, Inc., 7.25%, 07/15/13		55,000		53,625
				154,188
Consumer Finance–2.6%
Ally Financial, Inc., 6.875%, 09/15/11		190,000		194,275
Ally Financial, Inc., 8.00%, 03/15/20(b)		165,000		162,937
Ally Financial, Inc., 8.00%, 11/01/31		100,000		94,000
Dollar Financial Corp., 10.375%, 12/15/16(b)		65,000		66,300
Ford Motor Credit Co. LLC, 8.00%, 12/15/16		95,000		97,138
Ford Motor Credit Co. LLC, 8.125%, 01/15/20		210,000		215,250
				829,900
Data Processing & Outsourced Services–1.5%
SunGard Data Systems, Inc., 9.125%, 08/15/13		280,000		286,650
SunGard Data Systems, Inc., 10.25%, 08/15/15		105,000		108,412
SunGard Data Systems, Inc., 10.625%, 05/15/15		80,000		86,000
				481,062
Department Stores–0.7%
Macy’s Retail Holdings, Inc., 5.90%, 12/01/16		230,000		232,300
Distillers & Vintners–0.6%
Constellation Brands, Inc., 7.25%, 05/15/17		185,000		188,700
Diversified Chemicals–1.3%
Ashland, Inc., 9.125%, 06/01/17		195,000		215,475
Innophos, Inc., 8.875%, 08/15/14		200,000		206,250
				421,725
Diversified Commercial & Professional Services–0.3%
ARAMARK Corp., 8.50%, 02/01/15		100,000		101,750
Diversified Support Services–0.4%
Travelport LLC, 9.875%, 09/01/14		114,000		115,710
Electric Utilities–0.3%
Edison Mission Energy, 7.00%, 05/15/17		115,000		74,750
Midwest Generation LLC, (Series B), 8.56%, 01/02/16		13,320		13,153
				87,903

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. High Yield Fund

	Principal
	Amount		Value
Electrical Components & Equipment–0.3%
Baldor Electric Co., 8.625%, 02/15/17	$	105,000	$	109,200
Fertilizers & Agricultural Chemicals–0.7%
CF Industries, Inc., 7.125%, 05/01/20		210,000		216,300
Food Retail–1.0%
SUPERVALU, Inc., 7.50%, 11/15/14		175,000		175,437
SUPERVALU, Inc., 8.00%, 05/01/16		135,000		133,988
				309,425
Gas Utilities–0.6%
Ferrellgas LP, 6.75%, 05/01/14		110,000		108,625
Suburban Propane Patrtners, 7.375%, 03/15/20		75,000		76,125
				184,750
Health Care Services–1.4%
FMC Finance III SA, 6.875%, 07/15/17		275,000		283,884
Fresenius US Finance II, Inc., 9.00%, 07/15/15(b)		85,000		92,650
Multiplan, Inc., 10.375%, 04/15/16(b)		46,000		47,495
Universal Hospital Services, Inc., (PIK), 8.50%, 06/01/15		25,000		24,687
				448,716
Health Care Equipment–1.3%
Biomet, Inc., 10.00%, 10/15/17		320,000		346,400
Invacare Corp., 9.75%, 02/15/15		60,000		64,800
				411,200
Health Care Facilities–4.5%
Community Health Systems, 8.875%, 07/15/15		175,000		182,000
HCA, Inc., 5.75%, 03/15/14		225,000		210,375
HCA, Inc., 6.25%, 02/15/13		125,000		123,437
HCA, Inc., 7.875%, 02/15/20		213,000		220,455
HCA, Inc., 9.875%, 02/15/17		130,000		140,400
Sun Healthcare Group, Inc., 9.125%, 04/15/15		145,000		152,069
Tenet Healthcare Corp., 7.375%, 02/01/13		190,000		191,425
Tenet Healthcare Corp., 10.00%, 05/01/18(b)		180,000		199,800
				1,419,961
Heavy Electrical Equipment–0.0%
Ormat Funding Corp., 8.25%, 12/30/20		—		0
Homebuilding–1.1%
K Hovnanian Enterprises, Inc., 10.625%, 10/15/16		345,000		346,725
Independent Power Producers & Energy Traders–5.0%
AES Corp. (The), 7.75%, 03/01/14		240,000		245,400
Intergen N.V. (Netherlands), 9.00%, 06/30/17(b)		340,000		341,700
Ipalco Enterprises, Inc., 8.625%, 11/14/11		85,000		88,187
Mirant Americas Generation LLC, 9.125%, 05/01/31		150,000		139,125
NRG Energy, Inc., 7.375%, 02/01/16		200,000		200,500
NSG Holdings LLC/NSG Holdings, Inc., 7.75%, 12/15/25(b)		400,000		355,000
RRI Energy, Inc., 7.875%, 06/15/17		230,000		217,925
				1,587,837
Industrial Conglomerates–0.9%
RBS Global, Inc./Rexnord LLC, 8.50%, 05/01/18(b)		295,000		286,150
Industrial Gases–0.2%
Airgas, Inc., 7.125%, 10/01/18(b)		50,000		53,813
Integrated Telecommunication Services–7.4%
Frontier Communications Corp., 9.00%, 08/15/31		310,000		289,462
Intelsat Bermuda Ltd. (PIK) (Bermuda), 11.50%, 02/04/17		619,375		622,472
Intelsat Jackson Holdings Ltd., 9.50%, 06/15/16		120,000		126,900
Qwest Communications, 7.125%, 04/01/18(b)		120,000		119,700
West Corp., 9.50%, 10/15/14		320,000		324,800
Wind Acquisition Finance SA, 11.75%, 07/15/17(b)		250,000		260,625
Wind Acquisition Finance SA (Luxembourg), 12.00%, 12/01/15(b)		285,000		296,400

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. High Yield Fund

	Principal
	Amount		Value
Integrated Telecommunication Services–(continued)
Windstream Corp., 7.875%, 11/01/17	$	185,000	$	180,838
Windstream Corp., 8.125%, 08/01/13		105,000		108,806
				2,330,003
Internet Retail–2.0%
Expedia, Inc., 8.50%, 07/01/16		300,000		324,656
Ticketmaster Entertainment LLC/Ticketmaster Noteco, Inc., 10.75%, 08/01/16		285,000		307,088
				631,744
Metal & Glass Containers–2.6%
Berry Plastics Corp., 9.50%, 05/15/18(b)		220,000		202,400
Crown Americas LLC/Crown Americas Capital Corp., 7.625%, 11/15/13		143,000		147,648
Owens-Brockway Glass Container Inc., 6.75%, 12/01/14		155,000		157,712
Owens-Brockway Glass Container, Inc., 7.375%, 05/15/16		130,000		135,850
Solo Cup Co., 8.50%, 02/15/14		195,000		175,987
				819,597
Movies & Entertainment–0.7%
AMC Entertainment, Inc., 8.75%, 06/01/19		210,000		212,100
Multi-line Insurance–0.5%
Hartford Financial Services Group, Inc., 8.125%, 06/15/38(d)		160,000		146,998
Oil & Gas Drilling–0.2%
Pride International, Inc., 7.375%, 07/15/14		75,000		74,531
Oil & Gas Equipment & Services–1.2%
Bristow Group, Inc., 7.50%, 09/15/17		60,000		57,450
Cie Generale de Geophysique-Veritas (France), 7.50%, 05/15/15		185,000		177,600
Key Energy Services, Inc., 8.375%, 12/01/14		145,000		144,275
				379,325
Oil & Gas Exploration & Production–10.0%
Atlas Energy Operating Co. LLC/Atlas Energy Finance Corp., 10.75%, 02/01/18		265,000		282,887
Chaparral Energy, Inc., 8.875%, 02/01/17		140,000		130,550
Chesapeake Energy Corp., 6.375%, 06/15/15		150,000		155,010
Chesapeake Energy Corp., 9.50%, 02/15/15		300,000		332,250
Cimarex Energy Co., 7.125%, 05/01/17		105,000		106,050
Continental Resources, 7.375%, 10/01/20(b)		65,000		64,675
Continental Resources, 8.25%, 10/01/19		50,000		52,625
Encore Acquisition Co., 9.50%, 05/01/16		90,000		95,288
Forest Oil Corp., 7.25%, 06/15/19		210,000		204,225
Hilcorp Energy I LP/Hilcorp Finance Co., 7.75%, 11/01/15(b)		315,000		308,700
McMoRan Exploration Co, 11.875%, 11/15/14		250,000		256,562
Newfield Exploration Co., 6.625%, 09/01/14		270,000		273,375
Newfield Exploration Co., 7.125%, 05/15/18		55,000		54,725
Petrohawk Energy Corp., 7.875%, 06/01/15		175,000		176,313
Pioneer Natural Resources Co., 6.65%, 03/15/17		250,000		254,421
Plains Exploration & Production Co., 7.625%, 06/01/18		190,000		186,912
Range Resources Corp., 7.50%, 05/15/16		110,000		111,925
Southwestern Energy Co., 7.50%, 02/01/18		120,000		128,100
				3,174,593
Oil & Gas Refining & Marketing–0.9%
Tesoro Corp., 6.50%, 06/01/17		170,000		157,250
United Refining Co., (Series 2), 10.50%, 08/15/12		155,000		142,213
				299,463
Oil & Gas Storage & Transportation–2.7%
Copano Energy LLC/Copano Energy Finance Corp., 8.125%, 03/01/16		150,000		149,250
El Paso Corp., 6.875%, 06/15/14		115,000		117,300
El Paso Corp., 12.00%, 12/12/13		30,000		34,800
Inergy LP, 8.25%, 03/01/16		120,000		122,400
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., (Series B), 8.75%, 04/15/18		160,000		163,600

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. High Yield Fund

	Principal
	Amount		Value
Oil & Gas Storage & Transportation–(continued)
Regency Energy Partners, 8.375%, 12/15/13	$	85,000	$	88,187
Sonat, Inc., 7.625%, 07/15/11		180,000		185,850
				861,387
Other Diversified Financial Services–1.7%
Bank of America Corp., 8.00%, 10/30/49(d)(e)		210,000		201,600
International Lease Finance Corp., 8.625%, 09/15/15(b)		260,000		248,300
International Lease Finance Corp., 8.75%, 03/15/17(b)		95,000		90,725
				540,625
Packaged Foods & Meats–0.6%
JBS USA LLC/JBS USA Finance, Inc., 11.625%, 05/01/14		175,000		196,875
Paper Packaging–2.1%
Cascades, Inc, 7.875%, 01/15/20		165,000		161,700
Graham Packaging Co. LP/GPC Capital Corp. I, 9.875%, 10/15/14		230,000		234,600
Graphic Packaging International, Inc., 9.50%, 08/15/13		265,000		270,300
				666,600
Paper Products–1.5%
Georgia-Pacific LLC, 8.25%, 05/01/16(b)		175,000		188,125
Mercer International, Inc., 9.25%, 02/15/13		205,000		199,362
PH Glatfelter Co., 7.125%, 05/01/16		95,000		93,537
				481,024
Pharmaceuticals–0.3%
Axcan Intermediate Holdings, Inc., 12.75%, 03/01/16		95,000		96,544
Publishing–1.0%
Gannett Co., Inc., 9.375%, 11/15/17(b)		95,000		100,937
Nielsen Finance LLC/Nielsen Finance Co., 10.00%, 08/01/14		210,000		215,775
				316,712
Railroads–0.3%
Kansas City Southern de Mexico SA de CV (Mexico), 8.00%, 02/01/18(b)		95,000		97,689
Semiconductor Equipment–0.2%
Amkor Technologies, Inc., 7.375%, 05/01/18(b)		65,000		63,700
Semiconductors–0.7%
Freescale Semiconductor, Inc., 9.125%, 12/15/14		190,000		171,475
Freescale Semiconductor, Inc., 9.25%, 04/15/18(b)		45,000		44,550
				216,025
Specialized Finance–1.7%
CIT Group, Inc., 7.00%, 05/01/17		575,000		523,250
Specialty Chemicals–0.6%
Huntsman International LLC, 7.375%, 01/01/15		190,000		176,700
Specialty Stores–0.5%
Michaels Stores, Inc., 0.00%, 11/01/16(f)		175,000		157,063
Systems Software–1.6%
Vangent, Inc., 9.625%, 02/15/15		525,000		504,656
Tires & Rubber–0.4%
Cooper Tire and Rubber Co., 8.00%, 12/15/19		135,000		134,631
Trading Companies & Distributors–0.4%
H&E Equipment Services, Inc., 8.375%, 07/15/16		150,000		141,750
Wireless Telecommunication Services–2.6%
Digicel Ltd. (Bermuda), 8.25%, 09/01/17(b)		100,000		99,625
Nextel Communications, Inc., (Series E), 6.875%, 10/31/13		460,000		451,950
Sprint Capital Corp., 6.90%, 05/01/19		300,000		273,750
				825,325
Total Bonds & Notes (Cost $28,440,699)				30,063,023
	Shares
Preferred Stocks–0.6%
Diversified Banks–0.3%
Ally Financial, Inc.(b)		141		109,606
Regional Banks–0.3%
Zions Bancorporation		3,087		79,953
Total Preferred Stocks (Cost $150,818)				189,559

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. High Yield Fund

	Shares		Value
Common Stocks & Other Equity Interests–0.0%
Utilities–0.0%
SW Acquisition LP (Cost $0)(g)		1	$	0
	Shares
Money Market Funds–0.1%
Liquid Assets Portfolio–Institutional Class(h)		13,181		13,181
Premier Portfolio–Institutional Class(h)		13,181		13,181
Total Money Market Funds (Cost $26,362)				26,362
TOTAL INVESTMENTS–95.8% (Cost $28,617,879)				30,278,944
OTHER ASSETS LESS LIABILITIES–4.2%				1,342,450
NET ASSETS–100.0%			$	31,621,394

Investment Abbreviations:

PIK	– Payment-in-kind
REIT	– Real Estate Investment Trust.

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $5,629,859 which represented 17.8% of the Fund’s Net Assets.
(c)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at June 30, 2010 was $83,850, which represented 0.3% of the Fund’s Net Assets.
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(e)	Perpetual bond with no specified maturity date.
(f)	Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(g)	Non-income producing security.
(h)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By industry, based on Net Assets

as of June 30, 2010

Oil & Gas Exploration & Production	10.0	%
Integrated Telecommunication Services	7.4
Cable & Satellite	6.8
Independent Power Producers & Energy Traders	5.0
Health Care Facilities	4.5
Casinos & Gaming	4.4
Other Industries, Each with Less Than 3% of Total Net Assets	57.6
Money Market Funds Plus Assets Less Liabilities	4.3

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. High Yield Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $28,591,517)	$	30,252,582
Investments in affiliated money market funds, at value and cost		26,362
Total investments, at value (Cost $28,617,879)		30,278,944
Cash		50,319
Receivables for:
Investments sold		2,584,413
Fund shares sold		28,538
Dividends and interest		634,341
Other assets		2,837
Total assets		33,579,392
Liabilities:
Payables for:
Investments purchased		1,912,007
Fund shares reacquired		9,817
Accrued fees to affiliates		6,140
Accrued other operating expenses		30,034
Total liabilities		1,957,998
Net assets applicable to shares outstanding	$	31,621,394
Net assets consist of:
Shares of beneficial interest	$	59,610,851
Undistributed net investment income		1,577,057
Undistributed net realized gain (loss)		(31,227,579	)
Unrealized appreciation		1,661,065
	$	31,621,394
Net Assets:
Series I	$	31,611,254
Series II	$	10,140
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		2,909,932
Series II		934
Series I:
Net asset value per share	$	10.86
Series II:
Net asset value per share	$	10.86

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Interest (net of foreign withholding taxes of $130)	$	1,721,476
Dividends from affiliated money market funds		124
Total investment income		1,721,600
Expenses:
Advisory fees		75,503
Administrative services fees		48,865
Custodian fees		2,568
Distribution fees — Series II		2
Transfer agent fees		211
Trustees’ and officers’ fees and benefits		1,437
Professional services fees		16,042
Other		6,167
Total expenses		150,795
Less: Fees waived		(7,732	)
Net expenses		143,063
Net investment income		1,578,537
Realized and unrealized gain (loss) from:
Net realized gain from investment securities		1,531,484
Change in net unrealized appreciation (depreciation) of investment securities		(1,933,001	)
Net realized and unrealized gain (loss)		(401,517	)
Net increase in net assets resulting from operations	$	1,177,020

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. High Yield Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	1,578,537		$	3,249,260
Net realized gain (loss)		1,531,484			(2,419,053	)
Change in net unrealized appreciation (depreciation)		(1,933,001	)		11,158,139
Net increase in net assets resulting from operations		1,177,020			11,988,346
Distributions to shareholders from net investment income — Series I		(3,242,254	)		(2,924,346	)
Share transactions–net:
Series I		(5,194,488	)		1,303,400
Series II		10,000			—
Net increase (decrease) in net assets resulting from share transactions		(5,184,488	)		1,303,400
Net increase (decrease) in net assets		(7,249,722	)		10,367,400
Net assets:
Beginning of period		38,871,116			28,503,716
End of period (includes undistributed net investment income of $1,577,057 and $3,240,774, respectively)	$	31,621,394		$	38,871,116

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. High Yield Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Universal Funds High Yield Portfolio (the “Acquired Fund”), an investment portfolio of The Universal Institutional Funds, Inc. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund Class I shares received Series I shares of the Fund.

  Information for the Acquired Fund — Class I shares prior to the Reorganization is included with Series I shares of the Fund throughout this report.

  The Fund’s investment objective is above-average total return over a market cycle of three to five years by investing primarily in a diversified portfolio of high yield securities.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by

Invesco Van Kampen V.I. High Yield Fund

	independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

Invesco Van Kampen V.I. High Yield Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Lower-Rated Securities — The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $500 million		0	.42%
Next $250 million		0	.345%
Next $250 million		0	.295%
Next $1 billion		0	.27%
Next $1 billion		0	.245%
Over $3 billion		0	.22%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Management Inc. (“MS Investment Management”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.80% and Series II shares to 1.05% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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.

  Prior to the Reorganization, MS Investment Management had voluntarily agreed to waive fees and/or reimburse expenses of Class I shares to 0.80% of the Acquired Fund’s average daily net assets.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the period ended June 30, 2010, MS Investment Management and the Adviser waived advisory fees of $2,930 and $4,802 respectively.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’

Invesco Van Kampen V.I. High Yield Fund

accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $6,481 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $38,274 to MS Investment Management and JPMorgan Investor Services Co.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provide certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $211 to Morgan Stanley Services Company Inc. which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	189,559	$	—	$	0	$	189,559
Corporate Debt Securities		—		30,089,385		—		30,089,385
	$	189,559	$	30,089,385	$	—	$	30,278,944

NOTE 4—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco Van Kampen V.I. High Yield 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 generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	9,828,000
December 31, 2011		12,175,000
December 31, 2013		178,000
December 31, 2014		552,000
December 31, 2016		2,908,000
December 31, 2017		7,093,000
Total capital loss carryforward	$	32,734,000

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $16,115,411 and $22,060,911, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	1,820,883
Aggregate unrealized (depreciation) of investment securities		(179,151	)
Net unrealized appreciation of investment securities	$	1,641,732
Cost of investments for tax purposes is $28,637,212.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		288,784		$	3,361,044			715,513		$	7,305,750
Series II(b)		934			10,000			—			—
Issued as reinvestment of dividends:
Series I		303,014			3,242,254			289,253			2,924,346
Reacquired:
Series I		(983,508	)		(11,797,786	)		(860,646	)		(8,926,696	)
Net increase (decrease) in share activity		(390,776	)	$	(5,184,488	)		144,120		$	1,303,400

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 76% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b)

Commencement date of June 1, 2010.

Invesco Van Kampen V.I. High Yield Fund

NOTE 9—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																					Ratio of			Ratio of
																					expenses			expenses
					Net gains																to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends										net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income to
	beginning		investment		realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			average net			Portfolio
	of period		income(a)		unrealized)			operations			income			of period		Return(b)			(000s omitted)		absorbed			absorbed			assets			turnover(c)
Series I
Six months ended 06/30/10	$	11.77	$	0.51	$	(0.19	)	$	0.32		$	(1.23	)	$	10.86		2.83	%	$	31,611		0.80	%(d)		0.84	%(d)		8.78	%(d)		47	%
Year ended 12/31/09		9.03		0.99		2.68			3.67			(0.93	)		11.77		42.08			38,871		0.79	(e)		0.82	(e)		9.46	(e)(h)		78
Year ended 12/31/08		12.89		1.01		(3.77	)		(2.76	)		(1.10	)		9.03		(22.86	)		28,504		0.79	(e)		0.94	(e)		8.93	(e)(h)		50
Year ended 12/31/07		13.55		1.01		(0.46	)		0.55			(1.21	)		12.89		4.01			41,546		0.80	(e)		0.81	(e)		7.56	(e)(h)		32
Year ended 12/31/06(f)		13.59		0.96		(0.43	)		0.53			(0.57	)		13.55		8.62			52,962		0.80			0.87			7.13	(h)		26
Year ended 12/31/05		14.56		1.00		(0.87	)		0.13			(1.10	)		13.59		1.06			58,480		0.80			0.86			7.16	(h)		65
Series II
Six months ended 06/30/10(g)		10.71		0.08		0.07			0.15			—			10.86		1.40			10		1.05	(d)		1.24	(d)		8.53	(d)		47	%

(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $36,250 and $2 for Series I and Series II shares, respectively.
(e)	The Ratio of Expenses and Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is 0.01%, 0.01% and less than 0.005% for the years ended December 31, 2009, 2008 and 2007, respectively.
(f)	On November 13, 2006, the Portfolio effected a reverse stock split as described in the Notes to the Financial Statements. Per share data prior to this date has been restated to give effect to the reverse stock split.
(g)	Commencement date of June 1, 2010.
(h)	Ratio of net investment income to average net assets without fee waivers and/or expenses absorbed was 9.43%, 8.78%, 7.55%, 7.06% and 7.10% for the years ended December 31, 2009 through December 31, 2005, respectively.

NOTE 10—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. High Yield Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. With the exception of the actual ending account value and expenses of the Series II shares, the example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010. The actual ending account and expenses of the Series II shares in the example below are based on an investment of $1,000 invested as of close of business June 1, 2010 (commencement date) and held through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period (as of close of business June 1, 2009 through June 30, 2010 for the Series II shares). Because the actual ending account value and expense information in the example is not based upon a six month period for the Series II shares, the ending account value and expense information may not provide a meaningful comparison to mutual funds that provide such information for a full six month period.

Hypothetical example for comparison purposes

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2,3		Ratio
Series I	$	1,000.00	$	1,027.50	$	4.02	$	1,020.83	$	4.01		0.80	%
Series II		1,000.00		1,014.00		0.87		1,019.59		5.26		1.05

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010, through June 30, 2010 (as of close of business June 1, 2010, through June 30, 2010 for the Series II shares), after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. For the Series II shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 30 (as of close of business June 1, 2010, through June 30, 2010)/365. Because the Series II shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.
3	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in Series II shares of the Fund and other funds because such data is based on a full six month period.

Invesco Van Kampen V.I. High Yield Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. High Yield Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services.

Invesco Van Kampen V.I. High Yield Fund

The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. High Yield Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of The Universal Institutional Funds, Inc. — High Yield Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		2,518,978		37,360		159,368		0

Invesco Van Kampen V.I. High Yield Fund

          Invesco Van Kampen V.I. International
          Growth Equity Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIIGE-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-10.49	%
Series II Shares	-10.49
MSCI EAFE Index▼ (Broad Market/Style-Specific Index)	-13.23

^▼ Lipper Inc.

The MSCI EAFE ^® Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception	-5.77	%
1 Year	10.65
Series II Shares
Inception (4/28/06)	-5.77	%
1 Year	10.65

Effective June 1, 2010, Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series II shares, respectively, of Invesco Van Kampen V.I. International Growth Equity Fund. Returns shown above for Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. International Growth Equity Fund. Share class returns will differ from the predecessor fund because of different expenses.

     Series I shares incepted on June 1, 2010. Series I shares performance shown prior to that date is that of the predecessor fund’s Class II shares and includes the 12b-1 fees applicable to the predecessor fund’s Class II shares. Class II shares performance reflects any applicable fee waivers or expense reimbursements. The inception date of the predecessor fund’s Class II shares is April 28, 2006.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.11% and 1.36%, 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 Series I and Series II shares was 1.18% and 1.43%, 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.

     Invesco Van Kampen V.I. International Growth Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. International Growth Equity Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–102.5%
Australia–6.2%
BHP Billiton Ltd.		17,123	$	532,523
Cochlear Ltd.		7,239		450,932
CSL Ltd.		10,621		289,669
QBE Insurance Group Ltd.		16,149		245,761
Woolworths Ltd.		9,717		220,280
				1,739,165
Belgium–2.2%
Anheuser-Busch InBev N.V.		12,943		621,705
Brazil–1.8%
Banco Bradesco SA (ADR)		16,626		263,688
Petroleo Brasileiro SA (ADR)		8,413		250,708
				514,396
Canada–6.1%
Bombardier, Inc.		41,690		189,936
Canadian National Railway Co.		3,240		185,899
Canadian Natural Resources Ltd.		6,967		231,612
Cenovus Energy, Inc.		8,815		227,134
EnCana Corp.		6,586		199,458
Fairfax Financial Holdings Ltd.		628		230,995
Suncor Energy, Inc.		8,128		239,362
Talisman Energy, Inc.		12,579		190,360
				1,694,756
China–1.2%
Industrial & Commercial Bank of China (H Shares)		474,000		344,176
Denmark–1.8%
Novo Nordisk A/S (Class B)		6,239		503,273
France–5.1%
AXA SA		12,522		189,908
BNP Paribas		6,668		356,035
Danone SA		5,825		311,067
Eutelsat Communications		6,473		216,254
Total SA		7,923		352,610
				1,425,874
Germany–8.1%
Adidas AG		7,670		370,216
Bayer AG		8,156		455,066
Bayerische Motoren Werke AG		10,814		523,055
Fresenius Medical Care AG & Co. KGaA		5,978		323,409
Puma AG Rudolf Dassler Sport		1,365		360,265
SAP AG		5,380		238,968
				2,270,979
Hong Kong–2.9%
Esprit Holdings Ltd.		38,500		207,623
Hutchison Whampoa Ltd.		61,000		376,613
Li & Fung Ltd.		50,310		225,214
				809,450
India–1.9%
India Fund, Inc. (The)(a)		5,300		160,325
Infosys Technologies Ltd. (ADR)		6,171		369,705
				530,030
Israel–2.4%
Teva Pharmaceutical Industries Ltd. (ADR)		12,900		670,671
Italy–2.0%
Finmeccanica SpA		24,907		258,464
UniCredit SpA		128,221		284,613
				543,077
Japan–8.2%
Denso Corp.		9,600		265,420
Fanuc Ltd.		3,300		370,227
Hoya Corp.		13,000		276,041
Keyence Corp.		1,400		322,054
Komatsu Ltd.		11,737		212,088
Nidec Corp.		6,395		535,607
Toyota Motor Corp.		8,800		302,627
				2,284,064
Jersey–1.0%
WPP PLC		29,933		281,483
Mexico–3.2%
America Movil SAB de CV (Series L) (ADR)		10,585		502,787

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. International Growth Equity Fund

	Shares		Value
Mexico–(continued)
Fomento Economico Mexicano S.A.B. de C.V. (ADR)		3,651	$	157,541
Grupo Televisa SA (ADR)		12,864		223,962
				884,290
Netherlands–4.9%
Koninklijke Ahold N.V.		29,485		365,151
Koninklijke KPN N.V.		24,897		317,907
TNT N.V.		14,265		359,539
Unilever N.V.		11,879		323,885
				1,366,482
Norway–0.5%
Petroleum Geo-Services ASA(a)		15,780		131,716
Philippines–1.1%
Philippine Long Distance Telephone Co.		5,920		303,648
Republic of Korea–2.4%
Hyundai Mobis		2,817		471,781
NHN Corp.(a)		1,305		194,213
				665,994
Russia–0.9%
Gazprom OAO		13,549		254,836
Singapore–3.6%
Keppel Corp., Ltd.		74,238		447,322
United Overseas Bank Ltd.		39,000		541,791
				989,113
Singapore–0.3%
K-Green Trust(a)		126,048		94,583
Spain–0.6%
Telefonica SA		8,539		157,686
Switzerland–8.8%
Julius Baer Group Ltd.		6,910		196,733
Nestle SA (Registered Shares)		14,019		676,417
Novartis AG (Registered Shares)		6,756		327,777
Roche Holding AG		5,478		752,259
Syngenta AG (Registered Shares)		2,180		503,404
				2,456,590
Taiwan–2.6%
Hon Hai Precision Industry Co., Ltd.(a)		62,000		217,752
MediaTek, Inc.		12,000		167,364
Taiwan Semiconductor Manufacturing Co., Ltd.		182,000		340,322
				725,438
Turkey–0.8%
Akbank TAS		48,037		229,352
United Kingdom–21.3%
BG Group PLC		25,097		371,513
British American Tobacco PLC		12,980		411,009
Capita Group PLC (The)		16,186		177,586
Centrica PLC		103,096		453,995
Compass Group PLC		70,410		534,200
Imperial Tobacco Group PLC		23,470		654,396
Informa PLC		54,349		286,029
Kingfisher PLC		50,171		155,699
Next PLC		9,280		274,615
Reckitt Benckiser Group PLC		12,947		598,883
Reed Elsevier PLC		38,245		282,336
Shire PLC		30,160		613,037
Smith & Nephew PLC		16,383		154,248
Tesco PLC		80,207		451,603
Vodafone Group PLC		250,416		518,917
				5,938,066
United States–0.6%
VimpelCom Ltd. (ADR)(a)		9,897		160,134
Total Common Stocks & Other Equity Interests (Cost $27,953,614)				28,591,027
Money Market Funds–811.7%
Liquid Assets Portfolio–Institutional Class(b)		113,150,975		113,150,975
Premier Portfolio–Institutional Class(b)		113,150,975		113,150,975
Total Money Market Funds (Cost $226,301,950)				226,301,950
TOTAL INVESTMENTS (Cost $254,255,564)–914.2%				254,892,977
OTHER ASSETS LESS LIABILITIES–(814.2)%				(227,010,921	)
NET ASSETS–100.0%			$	27,882,056

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.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. International Growth Equity Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Consumer Discretionary	17.9	%
Consumer Staples	17.2
Health Care	16.3
Financials	10.3
Information Technology	9.5
Industrials	9.3
Energy	8.8
Telecommunication Services	7.0
Materials	3.7
Utilities	1.6
Investment Companies	0.9
Money Market Funds Plus Other Assets Less Liabilities	(2.5	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. International Growth Equity Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $27,953,614)	$	28,591,027
Investments in affiliated money market funds, at value and cost		226,301,950
Total investments, at value (Cost $254,255,564)		254,892,977
Cash		349,600
Foreign currencies, at value (Cost $7,746,499)		7,748,593
Receivables for:
Investments sold		4,003,999
Fund shares sold		255,893
Dividends		826,861
Other assets		3,737
Total assets		268,081,660
Liabilities:
Payables for:
Fund shares reacquired		240,026,880
Accrued fees to affiliates		113,569
Accrued other operating expenses		59,155
Total liabilities		240,199,604
Net assets applicable to shares outstanding	$	27,882,056
Net assets consist of:
Shares of beneficial interest	$	72,774,777
Undistributed net investment income		1,052,732
Undistributed net realized gain (loss)		(46,435,437	)
Unrealized appreciation		489,984
	$	27,882,056
Net Assets:
Series I	$	10,011
Series II	$	27,872,045
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		1,381
Series II		3,750,816
Series I:
Net asset value per share	$	7.25
Series II:
Net asset value per share	$	7.43

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $564,383)	$	4,253,577
Dividends from affiliated money market funds (includes securities lending income of $91,001)		94,434
Total investment income		4,348,011
Expenses:
Advisory fees		999,217
Administrative services fees		342,801
Custodian fees		78,272
Distribution fees — Series II		333,520
Transfer agent fees		2,185
Trustees’ and officers’ fees and benefits		4,264
Other		36,917
Total expenses		1,797,176
Less: Fees waived		(1,044	)
Net expenses		1,796,132
Net investment income		2,551,879
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		14,451,396
Foreign currencies		(933,459	)
		13,517,937
Change in net unrealized appreciation (depreciation) of:
Investment securities		(46,379,012	)
Foreign currencies		(12,476	)
		(46,391,488	)
Net realized and unrealized gain (loss)		(32,873,551	)
Net increase (decrease) in net assets resulting from operations	$	(30,321,672	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. International Growth Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	2,551,879		$	2,522,003
Net realized gain (loss)		13,517,937			(42,773,620	)
Change in net unrealized appreciation (depreciation)		(46,391,488	)		109,386,939
Net increase (decrease) in net assets resulting from operations		(30,321,672	)		69,135,322
Distributions to shareholders from net investment income — Series II		(4,058,030	)		(1,504,257	)
Share transactions–net:
Series I		10,000			—
Series II		(199,029,732	)		52,070,991
Net increase (decrease) in net assets resulting from share transactions		(199,019,732	)		52,070,991
Net increase (decrease) in net assets		(233,399,434	)		119,702,056
Net assets:
Beginning of period		261,281,490			141,579,434
End of period (includes undistributed net investment income of $1,052,732 and $2,558,883, respectively)	$	27,882,056		$	261,281,490

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. International Growth Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolio, 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Universal Institutional Funds International Growth Equity Portfolio (the “Acquired Fund”), an investment portfolio of The Universal Institutional Funds, Inc. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund Class II shares received Series II shares of the Fund.

  Information for the Acquired Fund — Class II shares prior to the Reorganization is included with Series II shares of the Fund throughout this report.

  The Fund’s investment objective is long-term capital appreciation, with a secondary objective of income.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco Van Kampen V.I. International Growth Equity Fund

	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco Van Kampen V.I. International Growth Equity Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $1 billion		0	.75%
Over $1 billion		0	.70%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Management Inc. (“MS Investment Management”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.11% and Series II shares to 1.36% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the

Invesco Van Kampen V.I. International Growth Equity Fund

following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

  Prior to the Reorganization, MS Investment Management had voluntarily agreed to waive fees and/or reimburse expenses of Class II shares to 1.35% of the Acquired Fund’s average daily net assets.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the period ended June 30, 2010, MS Investment Management waived advisory fees of $1,044.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $5,835 for accounting and fund administrative services and reimbursed $54,486 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $282,480 to MS Investment Management and JPMorgan Investor Services Co.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provide certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $1,597 to Morgan Stanley Services Company Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund.

  Prior to the Reorganization, the Acquired Fund paid distribution fees of $279,036 to Morgan Stanley Distribution, Inc. (“MSDI”) based on the annual rate of 0.35% of the Acquired Fund’s average daily net assets of Class II shares. MSDI had voluntarily agreed to waive 0.10% distribution fee that it received from the Acquired Fund.

  For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Invesco Van Kampen V.I. International Growth Equity Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	233,017,268	$	21,875,709	$	—	$	254,892,977

NOTE 4—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward *
December 31, 2016	$	8,264,000
December 31, 2017		40,192,000
Total capital loss carryforward	$	48,456,000

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $229,780,463 and $433,857,735, 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	$	—
Aggregate unrealized (depreciation) of investment securities		(10,503,099	)
Net unrealized appreciation (depreciation) of investment securities	$	(10,503,099	)
Cost of investments for tax purposes is $265,396,076.

Invesco Van Kampen V.I. International Growth Equity Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I(b)		1,381		$	10,000			—		$	—
Series II		7,014,285			56,874,078			22,088,682			147,987,747
Issued as reinvestment of dividends:
Series I(b)		—			—			—			—
Series II		549,124			4,058,030			223,183			1,504,257
Reacquired:
Series I(b)		—			—			—			—
Series II		(34,851,088	)		(259,961,840	)		(14,026,147	)		(97,421,013	)
Net increase (decrease) in share activity		(27,286,298	)	$	(199,019,732	)		8,285,718		$	52,070,991

(a)

There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund that owns 95% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with this entity whereby this entity sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity are also owned beneficially.

(b)

Commencement date of June 1, 2010.

NOTE 9—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																											Ratio of
																											expenses			Ratio of
																											to average			expenses
					Net gains																						net assets			to average net
					(losses) on																						with fee			assets without			Ratio of net
	Net asset				securities						Dividends			Distributions													waivers			fee waivers			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		and/or			and/or			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		expenses			expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10(d)	$	7.24	$	0.01	$	(0.00	)	$	0.01		$	—		$	—		$	—		$	7.25		0.14	%	$	10		1.11	%(f)		1.11	%(f)		2.16	%(f)		101	%
Series II
Six months ended 06/30/10		8.42		0.08		(0.95	)		(0.87	)		(0.12	)		—			(0.12	)		7.43		(10.37	)		27,872		1.35	(f)		1.35	(f)		1.92	(f)		101
Year ended 12/31/09		6.22		0.09		2.17			2.26			(0.06	)		—			(0.06	)		8.42		36.54			261,281		1.35	(g)		1.49	(g)		1.29	(g)(i)		57
Year ended 12/31/08		12.11		0.13		(6.00	)		(5.87	)		(0.00	)(e)		(0.02	)		(0.02	)		6.22		(48.52	)		141,579		1.35	(g)		1.53	(g)		1.51	(g)(i)		40
Year ended 12/31/07		10.84		0.03		1.52			1.55			(0.02	)		(0.26	)		(0.28	)		12.11		14.26			57,419		1.35	(g)		1.84	(g)		0.29	(g)(i)		52
Year ended 12/31/06(d)		10.00		0.03		0.82			0.85			(0.01	)		—			(0.01	)		10.84		8.55			9,993		1.35	(h)		3.95	(h)		0.38	(h)(i)		10

(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Commencement date of June 1, 2010 and April 28, 2006 for Series I and Series II shares, respectively.
(e)	Amount is less than $0.005 per share.
(f)	Ratios are annualized and based on average daily net assets (000’s omitted) of $2 and $268,664 for Series I and Series II shares, respectively.
(g)	Ratios reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios was less that 0.005% for the years ended December 31, 2009, December 31, 2008 and December 31, 2007, respectively.
(h)	Annualized.
(i)	Ratio of net investment income (loss) to average net assets without fee waivers and/or expenses absorbed was 1.15%, 1.33%, (0.20)% and (2.23)% for the years ended December 31, 2009 through December 31, 2006, respectively.

Invesco Van Kampen V.I. International Growth Equity Fund

NOTE 10—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. International Growth Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. With the exception of the actual ending account value and expenses of the Series I shares, the example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010, through June 30, 2010. The actual ending account value and expenses of the Series I shares in the below example are based on an investment of $1,000 invested as of close of business June 1, 2010 (the date the share class commenced operations) and held through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period (as of close of business June 1, 2010 through June 30, 2010 for the Series I shares). Because the actual ending account value and expense information in the example is not based upon a six month period for the Series I shares, the ending account value and expense information may not provide a meaningful comparison to mutual funds that provide such information for a full six month period.

Hypothetical example for comparison purposes

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	1,024.90	$	0.92	$	1,019.29	$	5.56		1.11	%
Series II		1,000.00		895.10		6.34		1,018.10		6.76		1.35

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010, through June 30, 2010 (as of close of business June 1, 2010, through June 30, 2010 for the Series I shares), after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. For the Series I shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 30 (as of close of business June 1, 2010, through June 30, 2010)/365. Because the Series I shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.
	Effective June 1, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses of Series I and Series II shares to 1.11% and 1.36% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 1.11% and 1.36% for Series I and Series II shares, respectively.
3	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $0.92 and $6.39 for the Series I and Series II shares, respectively.
4	Hypothetical expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect a one-half year period. The hypothetical ending account value and expenses may be used to compare ongoing costs of investing in Series I shares of the Fund and other funds because such data is based on a full six month period.
	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $5.56 and $6.80 for the Series I and Series II shares, respectively.

Invesco Van Kampen V.I. International Growth Equity Fund

Approval of Investment Advisory and Sub-Advisory Agreements with Invesco Advisers, Inc. and its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. International Growth Equity Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco

Invesco Van Kampen V.I. International Growth Equity Fund

Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. International Growth Equity Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of The Universal Institutional Funds, Inc. — International Growth Equity Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		29,009,059		923,182		1,816,939		0

Invesco Van Kampen V.I. International Growth Equity Fund

          Invesco Van Kampen V.I. Mid Cap Growth Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIMCG-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-1.57	%
Series II Shares	-1.25
Russell Midcap Growth Index▼ (Broad Market/Style-Specific Index)	-3.31

^▼ Lipper Inc.

The Russell Midcap^® Growth Index is an unmanaged index considered representative of mid-cap growth stocks. The Russell Midcap Growth Index is a trademark/ service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception	-5.84	%
5 Years	2.12
1 Year	25.60
Series II Shares
Inception (9/25/00)	-5.81	%
5 Years	2.18
1 Year	26.00

Effective June 1, 2010, Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series II shares, respectively, of Invesco Van Kampen V.I. Mid Cap Growth Fund. Returns shown above for Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Mid Cap Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.

     Series I shares incepted on June 1, 2010. Series I shares performance shown prior to that date is that of the predecessor fund’s Class II shares and includes the 12b-1 fees applicable to the predecessor fund’s Class II shares. Class II shares performance reflects any applicable fee waivers or expense reimbursements. The inception date of the predecessor fund’s Class II shares is September 25, 2000.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.01% and 1.26%, respectively. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.56% and 1.81%, 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.

     Invesco Van Kampen V.I. Mid Cap Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks–87.7%
Aerospace & Defense–1.0%
Goodrich Corp.		8,974	$	594,527
Air Freight & Logistics–2.3%
C.H. Robinson Worldwide, Inc.		10,649		592,724
Expeditors International of Washington, Inc.		21,322		735,822
				1,328,546
Apparel, Accessories & Luxury Goods–1.8%
Coach, Inc.		14,878		543,791
Hanesbrands, Inc.(a)		22,378		538,415
				1,082,206
Apparel Retail–0.5%
American Eagle Outfitters, Inc.		23,631		277,664
Application Software–3.2%
Autodesk, Inc.(a)		23,494		572,314
Salesforce.com, Inc.(a)		11,669		1,001,433
TIBCO Software, Inc.(a)		27,628		333,194
				1,906,941
Asset Management & Custody Banks–1.0%
Affiliated Managers Group, Inc.(a)		9,385		570,326
Auto Parts & Equipment–1.0%
BorgWarner, Inc.(a)		16,311		609,053
Automotive Retail–1.0%
O’Reilly Automotive, Inc.(a)		11,906		566,249
Biotechnology–3.1%
Genzyme Corp.(a)		18,945		961,838
Human Genome Sciences, Inc.(a)		11,810		267,614
United Therapeutics Corp.(a)		11,783		575,128
				1,804,580
Broadcasting & Cable TV–1.3%
Discovery Communications, Inc., Class C(a)		24,879		769,507
Casinos & Gaming–2.6%
International Game Technology		31,014		486,920
Las Vegas Sands Corp.(a)		25,523		565,079
MGM Resorts International(a)		48,761		470,056
				1,522,055
Coal & Consumable Fuels–1.0%
Alpha Natural Resources, Inc.(a)		17,547		594,317
Communications Equipment–0.5%
Finisar Corp.(a)		21,755		324,149
Computer Hardware–1.0%
Teradata Corp.(a)		19,016		579,608
Computer Storage & Peripherals–1.0%
NetApp, Inc.(a)		15,752		587,707
Construction & Engineering–0.9%
Foster Wheeler AG (Switzerland)(a)		25,704		541,326
Construction & Farm Machinery & Heavy Trucks–0.5%
Bucyrus International, Inc.		5,760		273,312
Consumer Finance–1.1%
Discover Financial Services		46,589		651,314
Data Processing & Outsourced Services–0.9%
Alliance Data Systems Corp.(a)		8,789		523,121
Department Stores–2.1%
Macy’s, Inc.		42,404		759,032
Nordstrom, Inc.		15,289		492,153
				1,251,185
Diversified Commercial & Professional Services–2.1%
Corrections Corp. of America(a)		30,784		587,359
IHS, Inc., Class A(a)		10,845		633,565
				1,220,924
Diversified Metals & Mining–0.7%
Intrepid Potash, Inc.(a)		22,299		436,391
Diversified Support Services–1.0%
Copart, Inc.(a)		17,013		609,236
Education Services–3.1%
Capella Education Co.(a)		7,150		581,653
New Oriental Education & Technology Group, Inc.–ADR (Cayman Islands)(a)		6,112		569,577
Strayer Education, Inc.		3,171		659,219
				1,810,449
Electrical Components & Equipment–1.5%
Cooper Industries PLC (Ireland)		12,959		570,196
Regal-Beloit Corp.		5,151		287,323
				857,519
Environmental & Facilities Services–1.0%
Republic Services, Inc.		20,871		620,495
Health Care Distributors–0.9%
CareFusion Corp.(a)		24,318		552,019

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Growth Fund

	Shares		Value
Health Care Equipment–1.7%
Hologic, Inc.(a)		42,944	$	598,210
NuVasive, Inc.(a)		12,013		425,981
				1,024,191
Health Care Facilities–1.0%
VCA Antech, Inc.(a)		23,294		576,759
Health Care Services–2.0%
DaVita, Inc.(a)		9,498		593,055
Pharmaceutical Product Development, Inc.		22,796		579,246
				1,172,301
Healthcare–0.5%
Brookdale Senior Living, Inc.(a)		19,622		294,330
Hotels, Resorts & Cruise Lines–3.0%
Ctrip.com International Ltd.–ADR (Cayman Islands)(a)		32,705		1,228,400
Marriott International, Inc., Class A		18,163		543,800
				1,772,200
Household Products–1.0%
Church & Dwight Co., Inc.		9,232		578,939
Human Resource & Employment Services–1.0%
Robert Half International, Inc.		24,024		565,765
Industrial Machinery–1.5%
Flowserve Corp.		3,586		304,093
Kennametal, Inc.		21,924		557,527
				861,620
Internet Retail–1.0%
Netflix, Inc.(a)		5,397		586,384
Internet Software & Services–4.6%
Akamai Technologies, Inc.(a)		30,298		1,229,190
Baidu, Inc.–ADR (Cayman Islands)(a)		21,997		1,497,556
				2,726,746
IT Consulting & Other Services–1.0%
Cognizant Technology Solutions Corp., Class A(a)		12,139		607,678
Life & Health Insurance–1.1%
Lincoln National Corp.		27,564		669,530
Life Sciences Tools & Services–1.0%
Life Technologies Corp.(a)		12,142		573,709
Managed Health Care–1.5%
Aetna, Inc.		32,642		861,096
Metal & Glass Containers–0.9%
Owens-Illinois, Inc.(a)		20,748		548,785
Multi-Line Insurance–1.4%
Genworth Financial, Inc., Class A(a)		61,068		798,159
Oil & Gas Equipment & Services–2.1%
Baker Hughes, Inc.		16,682		693,471
Key Energy Services, Inc.(a)		62,620		574,851
				1,268,322
Oil & Gas Exploration & Production–4.1%
Cabot Oil & Gas Corp.		18,171		569,116
Concho Resources, Inc.(a)		11,525		637,678
Continental Resources, Inc.(a)		19,617		875,311
Oasis Petroleum, Inc.(a)		25,009		362,630
				2,444,735
Packaged Foods & Meats–1.1%
Hershey Co.		12,977		621,988
Personal Products–1.8%
Estee Lauder Cos., Inc., Class A		10,420		580,707
Ulta Salon Cosmetics & Fragrance, Inc.(a)		19,502		461,417
				1,042,124
Pharmaceuticals–1.0%
Shire PLC–ADR (Jersey)		9,824		602,997
Real Estate Management & Development–1.0%
CB Richard Ellis Group, Inc., Class A(a)		42,245		574,954
Restaurants–1.9%
Darden Restaurants, Inc.		14,162		550,194
Starbucks Corp.		22,900		556,470
				1,106,664
Semiconductors–4.2%
Altera Corp.		25,287		627,370
Avago Technologies Ltd. (Singapore)(a)		28,969		610,087
Broadcom Corp., Class A		18,544		611,396
Cavium Networks, Inc.(a)		12,021		314,830
Xilinx, Inc.		12,226		308,829
				2,472,512
Specialized Finance–1.5%
IntercontinentalExchange, Inc.(a)		7,667		866,601
Specialty Chemicals–2.0%
Albemarle Corp.		15,263		606,094
Nalco Holding Co.		27,613		564,962
				1,171,056
Systems Software–1.0%
Rovi Corp.(a)		16,271		616,834
Trading Companies & Distributors–1.0%
WW Grainger, Inc.		6,006		597,297
Trucking–1.0%
J.B. Hunt Transport Services, Inc.		18,019		588,681

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Growth Fund

	Shares		Value
Wireless Telecommunication Services–1.7%
American Tower Corp., Class A(a)		14,520	$	646,140
Millicom International Cellular SA (Luxembourg)		4,736		383,948
				1,030,088
Total Common Stocks–87.7%				51,687,771
Investment Companies–7.7%
iShares Russell MidCap Growth Index Fund		51,756		2,261,737
iShares S&P MidCap 400 Growth Index Fund		29,695		2,282,952
Total Investment Companies–7.7%				4,544,689
Convertible Preferred Stocks–0.3%
Pharmaceuticals–0.3%
Ironwood Pharmaceuticals (Acquired 9/11/08, Cost
$167,988)(a)(b)(c)		13,999		150,181
Total Long-Term Investments–95.7% (Cost $56,237,602)				56,382,641
Money Market Funds–4.5%
Liquid Assets Portfolio–Institutional Class(d)		1,340,806		1,340,806
Premier Portfolio–Institutional Class(d)		1,340,806		1,340,806
Total Money Market Funds–4.5% (Cost $2,681,612)				2,681,612
TOTAL INVESTMENTS–100.2% (Cost $58,919,214)				59,064,253
LIABILITIES IN EXCESS OF OTHER ASSETS–(0.2%)				(95,799	)
NET ASSETS–100.0%			$	58,968,454

Notes to Schedule of Investments:

Percentages are calculated as a percentage of net assets.

(a)	Non-income producing security.
(b)	Security has been deemed illiquid.
(c)	Security is restricted and may be resold only in transactions exempt from registration which are normally those transactions with qualified institutional buyers. Restricted securities comprise 0.3% of net assets.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Investment Abbreviations:

ADR — American Depositary Receipt

Portfolio Composition

By sector, based on Net Assets

Consumer Discretionary	19.3	%
Information Technology	17.5
Financials	14.7
Industrials	14.7
Health Care	12.9
Energy	7.3
Consumer Staples	3.8
Materials	3.7
Telecommunication Services	1.8
Money Market Funds Less Liabilities in Excess of Other Assets	4.3

Fair Value Measurements

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below. (See Note 1(B) in the Notes to Financial Statements for further information regarding fair value measurements.)

	Level 1*		Level 2*		Level 3
			Other Significant		Significant
	Quoted Prices		Observable Inputs		Unobservable Inputs		Total
Equity Securities	$	58,914,072	$	—	$	150,181	$	59,064,253

* Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $56,237,602)	$	56,382,641
Investments in affiliated money market funds, at value and cost		2,681,612
Cash		56,754
Receivables:
Investments sold		560,650
Fund shares sold		221,880
Dividends		26,655
Other		1,012
Total assets		59,931,204
Liabilities:
Payables:
Investments purchased		619,253
Fund shares repurchased		250,584
Distributor and affiliates		28,967
Accrued expenses		63,946
Total liabilities		962,750
Net assets	$	58,968,454
Net assets consist of:
Capital (par value of $0.001 per share with an unlimited number of shares authorized)	$	64,966,915
Net unrealized appreciation		145,039
Accumulated net investment loss		(322,560	)
Accumulated net realized loss		(5,820,940	)
Net assets	$	58,968,454
Net asset value, offering price and redemption price per share:
Series I Shares (Based on net assets of $9,528 and 3,030 shares of beneficial interest issued and outstanding)	$	3.14
Series II Shares (Based on net assets of $58,958,926 and 18,719,947 shares of beneficial interest issued and outstanding)	$	3.15

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment Income:
Dividends (net of foreign withholding taxes of $4,464)	$	165,732
Interest		5,646
Total income		171,378
Expenses:
Investment advisory fee		204,262
Distribution (12b-1) and service fees		68,015
Accounting and administrative expenses		25,701
Professional fees		22,648
Reports to shareholders		22,644
Trustees’ fees and related expenses		11,771
Custody		10,229
Transfer agent fees		8,305
Other		5,299
Total expenses		378,874
Expense reduction		36,073
Net expenses		342,801
Net investment loss	$	(171,423	)
Realized and unrealized gain/loss:
Realized Gain/Loss:
Investments	$	350,833
Foreign currency transactions		3,056
Net realized gain		353,889
Unrealized appreciation/depreciation:
Beginning of the period		1,634,826
End of the period		145,039
Net unrealized depreciation during the period		(1,489,787	)
Net realized and unrealized loss	$	(1,135,898	)
Net decrease in net assets from operations	$	(1,307,321	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Statements of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
From investment activities:
Operations:
Net investment loss	$	(171,423	)	$	(115,269	)
Net realized gain/loss		353,889			(2,218,749	)
Net unrealized appreciation/depreciation during the period		(1,489,787	)		16,601,867
Change in net assets from investment activities		(1,307,321	)		14,267,849
From capital transactions:
Proceeds from shares sold		19,435,271			15,050,265
Cost of shares repurchased		(4,610,200	)		(6,470,867	)
Net change in net assets from capital transactions		14,825,071			8,579,398
Total increase in net assets		13,517,750			22,847,247
Net assets:
Beginning of the period		45,450,704			22,603,457
End of the period (including accumulated net investment loss of $322,560 and $151,137, respectively)	$	58,968,454		$	45,450,704

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Financial Highlights

(Unaudited)

  The following schedule presents financial highlights for one share of the Fund outstanding throughout the period indicated.

	June 1, 2010
	(Commencement of
	operations) to
	June 30, 2010
Series I Shares
Net asset value, beginning of the period	$	3.30
Net investment loss(a)		0.00	(b)
Net realized and unrealized loss		(0.16	)
Total from investment operations		(0.16	)
Net asset value, end of the period	$	3.14
Total return*		(4.85	)%**
Net assets at end of the period (in thousands)	$	9.5
Ratio of expenses to average net assets*		1.01	%
Ratio of net investment loss to average net assets*		(0.26	)%
Portfolio turnover		66	%**(c)
* If certain expenses had not been voluntarily assumed by the adviser, total return would have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets		1.34	%
Ratio of Net Investment Loss to Average Net Assets		(0.59	)%

(a)	Based on average shares outstanding.
(b)	Amount is less than $0.01 per share.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year.
**	Non-Annualized

	Six months ended			Year ended December 31,
	June 30, 2010			2009			2008			2007			2006			2005
Series II Sharesˆ
Net asset value, beginning of the period	$	3.19		$	2.04		$	5.72		$	5.24		$	5.40		$	4.86
Net investment loss(a)		(0.01	)		(0.01	)		(0.02	)		(0.02	)		(0.03	)		(0.03	)
Net realized and unrealized gain/loss		(0.03	)		1.16			(2.01	)		0.88			0.31			0.57
Total from investment operations		(0.04	)		1.15			(2.03	)		0.86			0.28			0.54
Less distributions from capital gains		-0-			-0-			1.65			0.38			0.44			-0-
Net asset value, end of the period	$	3.15		$	3.19		$	2.04		$	5.72		$	5.24		$	5.40
Total return*(b)		(1.25	)%**		56.37	%		(46.83	)%		17.60	%		4.92	%		11.11	%
Net assets at end of the period (In millions)	$	59.0		$	45.5		$	22.6		$	43.3		$	42.5		$	44.1
Ratio of expenses to average net assets*		1.26	%		1.26	%		1.26	%		1.26	%		1.26	%		1.26	%
Ratio of net investment loss to average net assets*		(0.63	)%		(0.36	)%		(0.66	)%		(0.37	)%		(0.61	)%		(0.59	)%
Portfolio turnover		66	%**		42	%		42	%		201	%		154	%		157	%
* If certain expenses had not been voluntarily assumed by the adviser, total returns would have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets		1.39	%		1.52	%		1.61	%		1.39	%		1.45	%		1.55	%
Ratio of net investment loss to average net assets		(0.76	)%		(0.62	)%		(1.01	)%		(0.51	)%		(0.80	)%		(0.88	)%

(a)	Based on average shares outstanding.
(b)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.
**	Non-Annualized
ˆ	On June 1, 2010, the Fund’s former Class II Shares were reorganized into Series II Shares.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Mid Cap Growth Fund (the “Fund”), is organized as a series of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance Funds, (the “Trust”), a Delaware statutory trust, and is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust consists of forty-one 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. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Life Investment Trust Mid Cap Growth Portfolio (the “Acquired Fund”), an investment portfolio of Van Kampen Life Investment Trust. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class II Shares received Series II Shares of the Fund.

  Information for the Acquired Fund’s – Class II Shares prior to the Reorganization are included with Series II Shares of the Fund throughout this report.

  The Fund’s investment objective is to seek capital growth.

  The Fund currently offers two classes of shares, Series I and Series II Shares, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies.

  The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A.	Security Valuation — Securities, including restricted securities, are valued according to the following policy.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.

Invesco Van Kampen V.I. Mid Cap Growth Fund

	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Fair Value Measurements — GAAP defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

Level 1 —	Prices are based on quoted prices in active markets for identical investments.
Level 2 —	Prices are based on other significant observable inputs which may include quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.
Level 3 —	Prices are based on significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
C.	Security Transactions — Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis.
	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 on the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported on the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share on 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 on 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 on the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
D.	Income and Expenses — Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Income and expenses of the Fund are allocated on a pro rata basis to each class of shares, except for distribution and service fees and incremental transfer agency costs which are unique to each class of shares.
E.	Federal Income Taxes — It is the Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation, as applicable, as the income is earned or capital gains are recorded. Management has concluded there are no significant uncertain tax provisions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in “Interest Expense” and penalties in “Other” expenses on the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service and various states. Generally, each of the tax years in the four year period ended December 31, 2009, remains subject to examination by taxing authorities.
	The Fund intends to utilize provisions of the federal income tax laws which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. At December 31, 2009, the Fund had an accumulated capital loss carryforward for tax purposes of $3,985,966 which will expire according to the following schedule:

Amount		Expiration
$	351,609		December 31, 2010
	2,251,696		December 31, 2016
	1,382,661		December 31, 2017

Invesco Van Kampen V.I. Mid Cap Growth Fund

  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	$	4,084,856
Aggregate unrealized (depreciation) of investment securities		(4,136,557	)
Net unrealized (depreciation) of investment securities	$	(51,701	)
Cost of investments for tax purposes is $59,115,954.

F.	Distribution of Income and Gains — The Fund declares and pays dividends at least annually from net investment income and from net realized gains, if any. Distributions from net realized gains for book purposes may include short-term capital gains, which are included in ordinary income for tax purposes. Distributions from the Fund are recorded on the ex-distribution date. As of December 31, 2009, there were no components of distributable earnings on a tax basis.
	Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of the deferral of losses relating to wash sale transactions.
G.	Foreign Currency Translation — Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U. S. dollar. Purchases and sales of portfolio securities are translated at the rate of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at rates prevailing when accrued. Realized and unrealized gains and losses on securities resulting from changes in exchange rates are not segregated for financial reporting purposes from amounts arising from changes in the market prices of securities. The unrealized gains and losses on translations of other assets or liabilities denominated in foreign currencies are included in foreign currency translation on the Statement of Operations. Realized gains and losses on foreign currency transactions on the Statement of Operations include the net realized amount from the sale of foreign currency and the amount realized between trade date and settlement date on securities transactions.
H.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

NOTE 2—Investment Advisory Agreement and Other Transactions with 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	% Per Annum
First $500 million		0	.75%
Next $500 million		0	.70%
Over $1 billion		0	.65%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization Date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit the Fund’s expenses (excluding certain items discussed below) of Series I Shares to 1.01% and Series II Shares to 1.26% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Fund’s expenses to exceed the limit reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary or non-routine items; and (v) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless

Invesco Van Kampen V.I. Mid Cap Growth Fund

the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. During the period, the Adviser waived advisory fees of $9,482 under this limitation.

  Prior to the Reorganization, Van Kampen had voluntarily agreed to waive fees and/or reimburse expenses of Class II Shares resulting in a net expense ratio of 1.26%. Van Kampen waived advisory fees of $26,591 under this agreement.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. For the period ended June 30, 2010, the Adviser did not waive any advisory fees under this agreement.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,110 for accounting and fund administrative services and reimbursed $12,789 for services provided by insurance companies. Prior to the Reorganization, under separate accounting services and Chief Compliance Officer (“CCO”) employment agreements, Van Kampen Investments, Inc. provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $8,802 to Van Kampen Investments Inc.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $7,134 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown on the Statement of Operations as “Transfer agent fees”.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or Invesco Distributors, Inc. (“IDI”).

  “Trustees’ Fees and Related Expenses” 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’ Fees and Related Expenses” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ Fees and Related Expenses” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  For the period ended June 30, 2010, the Fund paid legal fees of approximately $-0- for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 3—Share Information

For the six months ended June 30, 2010 and the year ended December 31, 2009, transactions were as follows:

	For the						For the
	six months ended						year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Value			Shares			Value
Sales:
Series I		3,030		$	10,000			—		$	—
Series II		5,853,565			19,425,271			5,735,245			15,050,265
Total Sales		5,856,595		$	19,435,271			5,735,245		$	15,050,265
Repurchases:
Series I		—		$	—			—		$	—
Series II		(1,394,754	)		(4,610,200	)		(2,544,014	)		(6,470,867	)
Total Repurchases		(1,394,754	)	$	(4,610,200	)		(2,544,014	)	$	(6,470,867	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 93% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco Van Kampen V.I. Mid Cap Growth Fund

NOTE 4—Investment Transactions

During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, and money market funds were $49,326,774 and $29,882,241, respectively.

NOTE 5—Distribution and Service Plans

The Trust has entered into a master distribution agreement with IDI to serve as the distributor for the Fund. The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II Shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II Shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II Shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II Shares of the Fund. Prior to the Reorganization, the Acquired Fund paid distribution fees of $55,227 to Van Kampen Funds Inc. based on the annual rate of 0.25% of the Acquired Fund’s average daily net assets of Class II Shares. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as “Distribution (12b-1) and service fees”.

NOTE 6—Indemnifications

Under the Trust’s organizational documents, each trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Change in Independent Registered Public Accounting Firm

In connection with the Reorganization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Calculating your ongoing Fund expenses

Expense Example

As a policyholder of the Fund, you incur ongoing costs, including management fees, distribution and 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 the 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 1/1/10— 6/30/10.

Actual Expense

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below 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 cost 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. Therefore, the second line of the table is useful in comparing ongoing costs and will not help you determine the relative total costs of owning different funds that have transactional costs, such as sales charges (loads), or exchanges fees.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses
	Account Value		Account Value		Paid During		Account Value		Paid During
Series	(1/1/10)		(06/30/10)		Period*		(06/30/10)		Period*
I	$	1,000.00	$	951.52	$	0.78	$	1,019.79	$	5.06
II		1,000.00		987.46		6.21		1,018.55		6.31

*  Expenses are equal to the Fund’s annualized expense ratio of 1.01% and 1.26% for Series I and II Shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period), except for Series I Shares “Actual” information, which reflects the period from Commencement of Operations through June 30, 2010. These expense ratios reflect an expense cap.

Assumes all dividends and distributions were reinvested.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Mid Cap Growth Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through

lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these

Invesco Van Kampen V.I. Mid Cap Growth Fund

services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of Van Kampen Life Investment Trust Mid Cap Growth Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		14,061,332		268,445		813,304		0

Invesco Van Kampen V.I. Mid Cap Growth Fund

          Invesco Van Kampen V.I. Mid Cap Value Fund
          Semiannual Report to Shareholders  §  June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIMCV-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-0.12	%
Series II Shares	-0.20
Russell Midcap Value Index▼ (Broad Market/Style-Specific Index)	-0.88

^▼ Lipper Inc.

The Russell Midcap^® Value Index is an unmanaged index considered representative of mid-cap value stocks. The Russell Midcap Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (1/2/97)	8.30	%
10 Years	3.49
5 Years	3.11
1 Year	28.66
Series II Shares
Inception (5/5/03)	8.55	%
5 Years	2.99
1 Year	28.46

Effective June 1, 2010, Class I and Class II shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Mid Cap Value Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Mid Cap Value Fund. Share class returns will differ from the predecessor fund because of different expenses.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 1.06% and 1.16%, respectively. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.06% and 1.31%, respectively.¹ 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.

     Invesco Van Kampen V.I. Mid Cap Value Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. Mid Cap Value Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.2%
Aerospace & Defense–3.2%
Goodrich Corp.		130,036	$	8,614,885
Asset Management & Custody Banks–2.7%
Northern Trust Corp.		154,764		7,227,479
Auto Parts & Equipment–1.1%
Lear Corp.(b)		42,838		2,835,876
Building Products–2.6%
Lennox International, Inc.		171,220		7,117,615
Computer Hardware–1.9%
Diebold, Inc.		192,683		5,250,612
Data Processing & Outsourced Services–3.8%
Fidelity National Information Services, Inc.		384,986		10,325,325
Diversified Banks–2.1%
Comerica, Inc.		156,715		5,771,813
Diversified Chemicals–2.2%
PPG Industries, Inc.		97,073		5,864,180
Electric Utilities–4.3%
Edison International		196,679		6,238,658
Great Plains Energy, Inc.		322,153		5,483,044
				11,721,702
Electronic Manufacturing Services–1.9%
Flextronics International Ltd. (Singapore)(b)		931,411		5,215,902
Food Distributors–2.5%
Sysco Corp.		237,760		6,792,803
Health Care Distributors–2.6%
Henry Schein, Inc.(b)		128,611		7,060,744
Health Care Equipment–2.5%
Beckman Coulter, Inc.		112,764		6,798,542
Health Care Facilities–5.1%
Brookdale Senior Living, Inc.(b)		501,386		7,520,790
Healthsouth Corp.(b)		331,197		6,196,696
				13,717,486
Housewares & Specialties–2.8%
Newell Rubbermaid, Inc.		508,668		7,446,900
Industrial Machinery–5.8%
Pentair, Inc.		234,763		7,559,368
Snap-On, Inc.		200,259		8,192,596
				15,751,964
Insurance Brokers–6.0%
Marsh & McLennan Cos., Inc.		263,931		5,951,644
Willis Group Holdings PLC (Ireland)		343,149		10,311,627
				16,263,271
Investment Banking & Brokerage–2.0%
Charles Schwab Corp. (The)		386,664		5,482,896
Motorcycle Manufacturers–1.9%
Harley-Davidson, Inc.		236,102		5,248,547
Multi-Utilities–2.3%
Wisconsin Energy Corp.		120,095		6,093,620
Office Electronics–3.0%
Zebra Technologies Corp. (Class A)(b)		325,137		8,248,726
Office Services & Supplies–3.3%
Avery Dennison Corp.		281,644		9,049,222
Oil & Gas Equipment & Services–0.5%
Halliburton Co.		58,528		1,436,862
Oil & Gas Exploration & Production–2.3%
Pioneer Natural Resources Co.		104,172		6,193,025
Oil & Gas Storage & Transportation–4.7%
El Paso Corp.		693,673		7,706,707
Williams Cos., Inc. (The)		268,292		4,904,378
				12,611,085
Packaged Foods & Meats–2.5%
ConAgra Foods, Inc.		291,874		6,806,502
Paper Packaging–2.4%
Sonoco Products Co.		215,648		6,572,951
Personal Products–1.2%
Avon Products, Inc.		126,573		3,354,184
Property & Casualty Insurance–3.0%
ACE Ltd. (Switzerland)		158,091		8,138,525
Regional Banks–3.5%
BB&T Corp.		230,356		6,060,666
Wintrust Financial Corp.		102,588		3,420,284
				9,480,950

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Value Fund

	Shares		Value
Restaurants–2.0%
Darden Restaurants, Inc.		137,037	$	5,323,887
Retail REIT’s–1.4%
Weingarten Realty Investors		192,000		3,657,600
Soft Drinks–2.2%
Coca-Cola Enterprises, Inc.		233,500		6,038,310
Specialty Chemicals–4.9%
Valspar Corp.		278,668		8,393,480
WR Grace & Co.(b)		236,036		4,966,198
				13,359,678
Thrifts & Mortgage Finance–1.0%
Washington Federal, Inc.		165,175		2,672,531
Total Common Stocks & Other Equity Interests (Cost $278,886,947)				263,546,200
Money Market Funds–1.9%
Liquid Assets Portfolio–Institutional Class(c)		2,617,425		2,617,425
Premier Portfolio–Institutional Class(c)		2,617,425		2,617,425
Total Money Market Funds (Cost $5,234,850)				5,234,850
TOTAL INVESTMENTS (Cost $284,121,797)–99.1%				268,781,050
OTHER ASSETS LESS LIABILITIES–0.9%				2,479,731
NET ASSETS–100.0%			$	271,260,781

Investment Abbreviations

REIT – Real Estate Investment Trust.

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	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 June 30, 2010

Financials	21.6	%
Industrials	14.9
Information Technology	10.7
Health Care	10.2
Materials	9.5
Consumer Staples	8.5
Consumer Discretionary	7.7
Energy	7.5
Utilities	6.6
Money Market Funds Plus Other Assets Less Liabilities	2.8

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Value Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $278,886,947)	$	263,546,200
Investments in affiliated money market funds, at value and cost		5,234,850
Total investments, at value (Cost $284,121,797)		268,781,050
Receivables for:
Investments sold		1,612,773
Fund shares sold		2,017,597
Dividends		377,386
Fund expenses absorbed		16,678
Other assets		6,625
Total assets		272,812,109
Liabilities:
Payables for:
Investments purchased		1,372,214
Fund shares reacquired		39,384
Accrued fees to affiliates		85,315
Accrued other operating expenses		54,415
Total liabilities		1,551,328
Net assets applicable to shares outstanding	$	271,260,781
Net assets consist of:
Shares of beneficial interest	$	344,078,723
Undistributed net investment income		1,012,661
Undistributed net realized gain (loss)		(58,489,856	)
Unrealized appreciation (depreciation)		(15,340,747	)
	$	271,260,781
Net Assets:
Series I	$	146,501,446
Series II	$	124,759,335
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		14,025,737
Series II		12,005,741
Series I:
Net asset value per share	$	10.45
Series II:
Net asset value per share	$	10.39

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends	$	2,512,232
Dividends from affiliated money market funds		1,202
Total investment income		2,513,434
Expenses:
Advisory fees		1,038,199
Administrative services fees		366,909
Custodian fees		6,839
Distribution fees — Series II		159,947
Transfer agent fees		1,425
Trustees’ and officers’ fees and benefits		2,425
Other		44,411
Total expenses		1,620,155
Less: Fees waived		(101,380	)
Net expenses		1,518,775
Net investment income		994,659
Realized and unrealized gain (loss) from:
Net realized gain from investment securities (includes net gains from securities sold to affiliates of $72,390)		11,287,081
Change in net unrealized appreciation (depreciation) of investment securities		(12,145,003	)
Net realized and unrealized gain (loss)		(857,922	)
Net increase in net assets resulting from operations	$	136,737

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Mid Cap Value Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	994,659		$	2,610,346
Net realized gain (loss)		11,287,081			(12,760,447	)
Change in net unrealized appreciation (depreciation)		(12,145,003	)		93,463,377
Net increase in net assets resulting from operations		136,737			83,313,276
Distributions to shareholders from net investment income:
Series I		(1,468,515	)		(1,846,024	)
Series II		(1,117,364	)		(1,144,481	)
Total distributions from net investment income		(2,585,879	)		(2,990,505	)
Share transactions–net:
Series I		(11,261,151	)		(27,209,501	)
Series II		5,072,528			2,613,501
Net increase (decrease) in net assets resulting from share transactions		(6,188,623	)		(24,596,000	)
Net increase (decrease) in net assets		(8,637,765	)		55,726,771
Net assets:
Beginning of period		279,898,546			224,171,775
End of period (includes undistributed net investment income of $1,012,661 and $2,603,881, respectively)	$	271,260,781		$	279,898,546

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Mid Cap Value Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one separate portfolios, each authorized to issue an unlimited 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Universal Institutional Funds Mid Cap Value Portfolio (the “Acquired Fund”), an investment portfolio of The Universal Institutional Funds, Inc. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund Class I and Class II shares received Series I and II shares, respectively, of the Fund.

  Information for the Acquired Fund — Class I and Class II shares prior to the Reorganization are included with Series I and Series II shares, respectively, of the Fund throughout this report.

  The Fund’s investment objective is to provide above-average total return over a market cycle of three to five years by investing in common stocks and other equity securities.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations — Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity

Invesco Van Kampen V.I. Mid Cap Value Fund

	are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

Invesco Van Kampen V.I. Mid Cap Value Fund

D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $1 billion		0	.72%
Over $1 billion		0	.65%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Management Inc. (“MS Investment Management”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”), the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012 to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 1.18% and Series II shares to 1.28% 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 items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco Advisers, Inc. mutually agree to amend or continue the fee waiver, it will terminate on June 30, 2012. 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 reimbursed expenses during the period under this limitation.

  Prior to the Reorganization, MS Investment Management had voluntarily agreed to waive fees and/or reimburse expenses of Class I and Class II shares to 1.05% and 1.15%, respectively of the Acquired Fund’s average daily net assets.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the period ended June 30, 2010, MS Investment Management waived advisory fees of $5,431.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $6,185 for accounting and fund administrative services and

Invesco Van Kampen V.I. Mid Cap Value Fund

reimbursed $58,292 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $302,432 to MS Investment Management and JPMorgan Investor Services Co.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provide certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $1,425 to Morgan Stanley Services Company Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. IDI has contractually agreed to waive 0.15% of Rule 12b-1 plan fees on Class II shares through at least June 30, 2012.

  Prior to the Reorganization, the Acquired Fund paid distribution fees to Morgan Stanley Distribution Inc. (MSDI) based on the annual rate of 0.35% of the Acquired Fund’s average daily net assets of Class II shares. MSDI had voluntarily agreed to waive 0.25% distribution fee that it received. MSDI was paid distribution fees of $53,411, after fee waivers of $80,066.

  For the six months ended June 30, 2010, expenses incurred under the Plans are shown as Distribution fees in the Statement of Operations.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	268,781,050	$	—	$	—	$	268,781,050

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities sales of $404,584, which resulted in net realized gains of $72,390.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan

Invesco Van Kampen V.I. Mid Cap Value Fund

and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6—Cash Balances

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	35,250,000
December 31, 2017		34,551,000
Total capital loss carryforward	$	69,801,000

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $58,849,272 and $65,778,956, 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	$	17,421,330
Aggregate unrealized (depreciation) of investment securities		(32,811,439	)
Net unrealized appreciation (depreciation) of investment securities	$	(15,390,109	)
Cost of investments for tax purposes is $284,171,159.

NOTE 9—Share Information

	Summary of Share Activity
							Year ended
	Six months ended June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		366,046		$	4,184,316			1,020,000		$	8,047,125
Series II		1,640,107			18,046,937			2,174,000			18,541,180
Issued as reinvestment of dividends:
Series I		130,767			1,468,515			231,000			1,846,024
Series II		100,033			1,117,364			144,000			1,144,481
Reacquired:
Series I		(1,516,090	)		(16,913,982	)		(4,278,000	)		(37,102,650	)
Series II		(1,260,097	)		(14,091,773	)		(1,945,000	)		(17,072,160	)
Net increase (decrease) in share activity		(539,234	)	$	(6,188,623	)		(2,654,000	)	$	(24,596,000	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 78% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco Van Kampen V.I. Mid Cap Value Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																											Ratio of			Ratio of
					Net gains																						expenses			expenses
					(losses)																						to average			to average net			Ratio of net
	Net asset				on securities						Dividends			Distributions													net assets			assets without			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	10.56	$	0.05	$	(0.04	)	$	(0.01	)	$	(0.10	)	$	—		$	(0.10	)	$	10.45		(0.12	)%	$	146,501		1.01	%(d)		1.01	%(d)		0.73	%(d)		21	%
Year ended 12/31/09		7.69		0.10		2.88			2.98			(0.11	)		—			(0.11	)		10.56		39.21			158,853		1.02			1.02			1.12			64
Year ended 12/31/08		19.11		0.13		(6.43	)		(6.30	)		(0.14	)		(4.98	)		(5.12	)		7.69		(41.29	)		138,914		1.01			1.01			0.95			53
Year ended 12/31/07		19.74		0.13		1.53			1.66			(0.14	)		(2.15	)		(2.29	)		19.11		7.84			302,575		1.01			1.01			0.62			68
Year ended 12/31/06		18.75		0.13		3.35			3.48			(0.06	)		(2.43	)		(2.49	)		19.74		20.70			381,064		1.01			1.01			0.67			65
Series II
Six months ended 06/30/10		10.50		0.04		(0.05	)		(0.01	)		(0.10	)		—			(0.10	)		10.39		(0.20	)		124,759		1.11	(d)		1.26	(d)		0.63	(d)		21	%
Year ended 12/31/09		7.64		0.09		2.87			2.96			(0.10	)		—			(0.10	)		10.50		39.16			121,046		1.12			1.37			1.01			64
Year ended 12/31/08		19.04		0.11		(6.41	)		(6.30	)		(0.12	)		(4.98	)		(5.10	)		7.64		(41.42	)		85,258		1.11			1.36			0.89			53
Year ended 12/31/07		19.68		0.11		1.52			1.63			(0.12	)		(2.15	)		(2.27	)		19.04		7.74			134,886		1.11			1.36			0.54			68
Year ended 12/31/06		18.70		0.11		3.34			3.45			(0.04	)		(2.43	)		(2.47	)		19.68		20.62			108,859		1.11			1.36			0.59			65

(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $161,761 and $129,018 for Series I and Series II shares, respectively.

NOTE 11—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Mid Cap Value Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); 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 January 1, 2010 through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Series I	$	1,000.00	$	998.80	$	5.01	$	1,019.79	$	5.06		1.01	%
Series II		1,000.00		998.00		5.50		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 January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco Van Kampen V.I. Mid Cap Value Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Mid Cap Value Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services.

Invesco Van Kampen V.I. Mid Cap Value Fund

The Board also considered that these services will be provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Mid Cap Value Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of The Universal Institutional Funds, Inc. — U.S. Mid Cap Value Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		22,579,651		863,825		1,774,094		0

Invesco Van Kampen V.I. Mid Cap Value Fund

          Invesco Van Kampen V.I. Value Fund
          Semiannual Report to Shareholders § June 30, 2010

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 Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

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 800 410 4246 or on the Invesco website, 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 period between June 1, 2010, and June 30, 2010, is or will be available at invesco.com/proxysearch. In addition, this information is or will be available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VK-VIVAL-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-6.01	%
Series II Shares	-6.11
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell 1000 Value Index▼ (Style-Specific Index)	-5.12

^▼ Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the U.S. stock market.

     The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/10

Series I Shares
Inception (1/2/97)	4.05	%
10 Years	4.31
5 Years	-1.16
1 Year	17.50
Series II Shares
10 Years	4.05	%
5 Years	-1.40
1 Year	17.24

Effective June 1, 2010, Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Series I shares of Invesco Van Kampen V.I. Value Fund. Returns shown above for Series I shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Value Fund. Share class returns will differ from the predecessor fund because of different expenses.

     Series II shares incepted on June 1, 2010. Series II shares performance shown prior to that date is that of the predecessor fund’s Class I shares restated to reflect the higher 12b-1 fees applicable to the fund’s Series II shares. Class I shares performance reflects any applicable fee waivers or expense reimbursements. The inception date of the predecessor fund’s Class I shares is January 2, 1997.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. 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 Series I and Series II shares was 0.86% and 1.11%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.22% and 1.47%, 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.

     Invesco Van Kampen V.I. Value Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower.

1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2012. See current prospectus.

Invesco Van Kampen V.I. Value Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.9%
Aerospace & Defense–1.0%
Honeywell International, Inc.		5,200	$	202,956
Aluminum–0.7%
Alcoa, Inc.		14,667		147,550
Asset Management & Custody Banks–2.3%
Bank of New York Mellon Corp. (The)		16,060		396,521
State Street Corp.		2,400		81,168
				477,689
Cable & Satellite–6.9%
Comcast Corp. (Class A)		54,322		943,573
DirecTV (Class A)(b)		5,632		191,037
Time Warner Cable, Inc.		6,106		318,001
				1,452,611
Communications Equipment–1.1%
Cisco Systems, Inc.(b)		10,600		225,886
Computer Hardware–1.8%
Dell, Inc.(b)		11,785		142,127
Hewlett-Packard Co.		5,237		226,657
				368,784
Data Processing & Outsourced Services–0.3%
Western Union Co. (The)		3,800		56,658
Department Stores–0.8%
JC Penney Co., Inc.		5,200		111,696
Macy’s, Inc.		2,738		49,010
				160,706
Diversified Banks–1.8%
US Bancorp		6,600		147,510
Wells Fargo & Co.		9,300		238,080
				385,590
Diversified Chemicals–0.6%
EI Du Pont de Nemours & Co.		3,721		128,709
Drug Retail–1.1%
CVS Caremark Corp.		8,100		237,492
Electric Utilities–0.5%
American Electric Power Co., Inc.		3,100		100,130
Electrical Components & Equipment–0.7%
Emerson Electric Co.		3,600		157,284
Electronic Equipment & Instruments–0.2%
Cognex Corp.		2,601		45,726
General Merchandise Stores–0.4%
Target Corp.		1,800		88,506
Health Care Distributors–1.6%
Cardinal Health, Inc.		10,325		347,023
Health Care Equipment–0.3%
Boston Scientific Corp.(b)		12,500		72,500
Home Improvement Retail–1.8%
Home Depot, Inc.		6,400		179,648
Lowe’s Cos., Inc.		9,300		189,906
				369,554
Household Products–0.5%
Procter & Gamble Co. (The)		1,600		95,968
Hypermarkets & Super Centers–2.1%
Wal-Mart Stores, Inc.		9,089		436,908
Industrial Conglomerates–2.8%
General Electric Co.		18,500		266,770
Textron, Inc.		1,265		21,467
Tyco International Ltd.		8,500		299,455
				587,692
Industrial Machinery–1.0%
Ingersoll-Rand PLC (Ireland)		6,400		220,736
Integrated Oil & Gas–5.7%
BP PLC (ADR) (United Kingdom)		3,200		92,416
Chevron Corp.		5,900		400,374
ConocoPhillips		5,900		289,631
Royal Dutch Shell PLC (ADR) (United Kingdom)		6,043		303,480
Total SA (ADR) (France)		2,800		124,992
				1,210,893
Integrated Telecommunication Services–3.6%
AT&T, Inc.		13,100		316,889
Verizon Communications, Inc.		16,100		451,122
				768,011
Internet Software & Services–3.9%
eBay, Inc.(b)		27,800		545,158
Yahoo!, Inc.(b)		20,613		285,078
				830,236

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Value Fund

	Shares		Value
Investment Banking & Brokerage–0.9%
Goldman Sachs Group, Inc. (The)		1,500	$	196,905
IT Consulting & Other Services–0.6%
Accenture Ltd. (Class A) (Ireland)		3,100		119,815
Life & Health Insurance–2.9%
Aflac, Inc.		2,200		93,874
MetLife, Inc.		7,800		294,528
Torchmark Corp.		4,500		222,795
				611,197
Managed Health Care–1.9%
UnitedHealth Group, Inc.		8,764		248,898
WellPoint, Inc.(b)		2,900		141,897
				390,795
Movies & Entertainment–6.6%
News Corp. (Class B)		19,400		268,690
Time Warner, Inc.		11,533		333,419
Viacom, Inc. (Class B)		24,882		780,548
				1,382,657
Multi-Utilities–0.3%
Sempra Energy		1,400		65,506
Oil & Gas Drilling–0.4%
Noble Corp.(b)		2,480		76,657
Oil & Gas Equipment & Services–1.5%
Halliburton Co.		13,103		321,679
Oil & Gas Exploration & Production–0.3%
Anadarko Petroleum Corp.		1,739		62,761
Other Diversified Financial Services–6.2%
Bank of America Corp.		35,008		503,065
Citigroup, Inc.(b)		55,600		209,056
JPMorgan Chase & Co.		16,500		604,065
				1,316,186
Packaged Foods & Meats–3.9%
Kraft Foods, Inc. (Class A)		17,316		484,848
Unilever N.V. (NY Registered Shares) (Netherlands)		12,162		332,266
				817,114
Paper Products–2.8%
International Paper Co.		25,601		579,351
Personal Products–0.5%
Avon Products, Inc.		4,159		110,214
Pharmaceuticals–9.5%
Abbott Laboratories		3,664		171,402
Bristol-Myers Squibb Co.		21,780		543,193
Eli Lilly & Co.		2,624		87,904
GlaxoSmithKline PLC (ADR) (United Kingdom)		3,000		102,030
Merck & Co., Inc.		12,272		429,152
Pfizer, Inc.		36,029		513,773
Roche Holding AG (ADR) (Switzerland)		4,300		148,637
				1,996,091
Property & Casualty Insurance–8.6%
Berkshire Hathaway, Inc. (Class B)(b)		3,600		286,884
Chubb Corp.		20,041		1,002,250
Travelers Cos., Inc. (The)		10,720		527,960
				1,817,094
Regional Banks–1.4%
PNC Financial Services Group, Inc.		5,100		288,150
Semiconductor Equipment–0.4%
KLA-Tencor Corp.		3,202		89,272
Semiconductors–1.4%
Intel Corp.		15,600		303,420
Soft Drinks–1.6%
Coca-Cola Co. (The)		5,100		255,612
PepsiCo, Inc.		1,200		73,140
				328,752
Systems Software–0.3%
Microsoft Corp.		2,900		66,729
Tobacco–1.6%
Altria Group, Inc.		7,121		142,705
Philip Morris International, Inc.		4,404		201,879
				344,584
Wireless Telecommunication Services–0.8%
Vodafone Group PLC (ADR) (United Kingdom)		8,600		177,762
Total Common Stocks & Other Equity Interests (Cost $22,126,179)				20,638,489
Money Market Funds–1.2%
Liquid Assets Portfolio–Institutional Class(c)		121,203		121,203
Premier Portfolio–Institutional Class(c)		121,203		121,203
Total Money Market Funds (Cost $242,406)				242,406
TOTAL INVESTMENTS (Cost $22,368,585)–99.1%				20,880,895
OTHER ASSETS LESS LIABILITIES–0.9%				192,267
NET ASSETS–100.0%			$	21,073,162

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Value Fund

Investment Abbreviations:

ADR – American Depositary Receipt.

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	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 June 30, 2010

Financials	24.2	%
Consumer Discretionary	16.4
Health Care	13.3
Consumer Staples	11.3
Information Technology	10.0
Energy	7.9
Industrials	5.5
Telecommunication Services	4.5
Materials	4.1
Utilities	0.8
Money Market Funds Plus Other Assets Less Liabilities	2.0

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Value Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $22,126,179)	$	20,638,489
Investments in affiliated money market funds, at value and cost		242,406
Total investments, at value (Cost $22,368,585)		20,880,895
Receivables for:
Investments sold		280,496
Fund shares sold		18,281
Dividends		51,572
Fund expenses absorbed		19,346
Other assets		3,981
Total assets		21,254,571
Liabilities:
Payables for:
Investments purchased		136,001
Fund shares reacquired		467
Accrued fees to affiliates		4,596
Accrued other operating expenses		40,345
Total liabilities		181,409
Net assets applicable to shares outstanding	$	21,073,162
Net assets consist of:
Shares of beneficial interest	$	29,576,971
Undistributed net investment income		162,422
Undistributed net realized gain (loss)		(7,178,541	)
Unrealized appreciation (depreciation)		(1,487,690	)
	$	21,073,162
Net Assets:
Series I	$	21,063,468
Series II	$	9,694
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Series I		2,693,151
Series II		1,239
Series I:
Net asset value per share	$	7.82
Series II:
Net asset value per share	$	7.82

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $2,199)	$	265,316
Dividends from affiliated money market funds		35
Total investment income		265,351
Expenses:
Advisory fees		64,233
Administrative services fees		33,120
Custodian fees		3,001
Distribution fees — Series II		2
Transfer agent fees		111
Trustees’ and officers’ fees and benefits		20
Professional services fees		25,996
Other		8,834
Total expenses		135,317
Less: Fees waived		(36,157	)
Net expenses		99,160
Net investment income		166,191
Realized and unrealized gain (loss) from:
Net realized gain from investment securities		47,696
Change in net unrealized appreciation (depreciation) of investment securities		(1,528,091	)
Net realized and unrealized gain (loss)		(1,480,395	)
Net increase (decrease) in net assets resulting from operations	$	(1,314,204	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Van Kampen V.I. Value Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	166,191		$	348,940
Net realized gain (loss)		47,696			(2,293,566	)
Change in net unrealized appreciation (depreciation)		(1,528,091	)		7,640,320
Net increase (decrease) in net assets resulting from operations		(1,314,204	)		5,695,694
Distributions to shareholders from net investment income — Series I		(348,598	)		(716,371	)
Share transactions–net:
Series I		(1,026,797	)		(2,730,935	)
Series II		10,000			—
Net increase (decrease) in net assets resulting from share transactions		(1,016,797	)		(2,730,935	)
Net increase (decrease) in net assets		(2,679,599	)		2,248,388
Net assets:
Beginning of period		23,752,761			21,504,373
End of period (includes undistributed net investment income of $162,422 and $344,829, respectively)	$	21,073,162		$	23,752,761

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Value Fund (the “Fund”), is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), formerly AIM Variable Insurance 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 forty-one 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 Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

  Prior to June 1, 2010, the Fund operated as Universal Institutional Funds Value Portfolio (the “Acquired Fund”), an investment portfolio of The Universal Institutional Funds, Inc.. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class I shares received Series I shares of the Fund.

  Information for the Acquired Fund’s — Class I shares prior to the Reorganization is included with Series I shares of the Fund throughout this report.

  The Fund’s investment objective is above-average total return over a market cycle of three to five years by investing primarily in a portfolio of common stocks and other equity securities.

  The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

  The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco Van Kampen V.I. Value Fund

	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurance companies annually and recorded on ex-dividend date.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Invesco Van Kampen V.I. Value Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets	Rate
First $500 million		0	.55%
Next $500 million		0	.50%
Over $1 billion		0	.45%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee to Morgan Stanley Investment Management Inc. (“MS Investment Management”) based on the annual rates above of the Acquired Fund’s average daily net assets.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.86% and Series II shares to 1.11% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. 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.

  Prior to the Reorganization, MS Investment Management had voluntarily agreed to waive fees and/or reimburse expenses of Class I shares to 0.85% of the Acquired Fund’s average daily net assets.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  Prior to the Reorganization, investment advisory fees paid by the Acquired Fund were reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class shares.

  For the period ended June 30, 2010, MS Investment Management and the Adviser waived advisory fees of $10,876 and $25,281, respectively.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid to insurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurance companies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existing participants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’ accounts. Pursuant to such agreement, for the period ended June 30, 2010, Invesco was paid $4,710 for accounting and fund administrative services and

Invesco Van Kampen V.I. Value Fund

reimbursed $4,557 for services provided by insurance companies. Prior to the Reorganization, the Acquired Fund paid an administration fee of $23,853 to MS Investment Management and JPMorgan Investor Services Co.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian, fund accountant and provide certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. Prior to the Reorganization, the Acquired Fund paid $111 to Morgan Stanley Services Company Inc., which served as the Acquired Fund’s transfer agent. For the six months ended June 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.

  Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	20,732,258	$	148,637	$	—	$	20,880,895

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $302.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

Invesco Van Kampen V.I. Value Fund

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	2,422,185
December 31, 2017		4,505,087
Total capital loss carryforward	$	6,927,272

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $1,844,743 and $2,823,225, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	1,295,253
Aggregate unrealized (depreciation) of investment securities		(3,074,218	)
Net unrealized appreciation (depreciation) of investment securities	$	(1,778,965	)
Cost of investments for tax purposes is $22,659,860.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Series I		45,868		$	396,351			165,564		$	1,168,035
Series II		1,239			10,000			—			—
Issued as reinvestment of dividends:
Series I		41,849			348,598			108,871			716,371
Reacquired:
Series I		(205,746	)		(1,771,746	)		(678,120	)		(4,615,341	)
Net increase (decrease) in share activity		(116,790	)	$	(1,016,797	)		(403,685	)	$	(2,730,935	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 97% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

Invesco Van Kampen V.I. Value Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																											Ratio of			Ratio of
																											expenses			expenses
																											to average			to average
					Net gains																						net assets			net assets
					(losses) on																						with			without			Ratio of net
	Net asset				securities						Dividends			Distributions													fee waivers			fee waivers			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		and/or			and/or			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		expenses			expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/10	$	8.45	$	0.06	$	(0.56	)	$	(0.50	)	$	(0.13	)	$	—		$	(0.13	)	$	7.82		(6.01	)%	$	21,063		0.85	%(d)		1.16	%(d)		1.42	%(d)		8	%
Year ended 12/31/09		6.69		0.12		1.88			2.00			(0.24	)		—			(0.24	)		8.45		31.00	(e)		23,753		0.85	(f)		0.97	(f))		1.66	(f)(h)		21
Year ended 12/31/08		13.17		0.21		(4.43	)		(4.22	)		(0.37	)		(1.89	)		(2.26	)		6.69		(35.85	)		21,504		0.87	(f)		1.04	(f)		2.15	(f)(h)		19
Year ended 12/31/07		14.87		0.25		(0.57	)		(0.32	)		(0.29	)		(1.09	)		(1.38	)		13.17		(3.07	)		46,863		0.85	(f)		0.91	(f)		1.69	(f)(h)		17
Year ended 12/31/06		14.49		0.26		1.96			2.22			(0.27	)		(1.57	)		(1.84	)		14.87		16.89			70,091		0.85			0.93			1.83	(h)		23
Year ended 12/31/05		14.88		0.25		0.38			0.63			(0.20	)		(0.82	)		(1.02	)		14.49		4.56			75,105		0.85			0.92			1.72	(h)		32
Series II
Six months ended 06/30/10(g)		8.07		0.01		(0.26	)		(0.25	)		—			—			—			7.82		(3.10	)		10		1.11	(d)		1.44	(d)		1.16	(d)		8

(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(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 $23,550 and $10 for Series I and Series II shares, respectively.
(e)	Performance was positively impacted by approximately 1.40% due to the receipt of proceeds from the settlements of class action suits involving primarily two of the Fund’s past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return would have been approximately 29.60%.
(f)	The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is less than 0.005% for each of the years ended December 31, 2009, 2008 and 2007, respectively.
(g)	Commencement date of June 1, 2010.
(h)	Ratio of net investment income to average net assets without fee waivers and/or expenses absorbed was 1.54%, 1.98%, 1.63%, 1.75% and 1.65% for the years ended December 31, 2009 through December 31, 2005 respectively.

NOTE 11—Change in Independent Registered Public Accounting Firm

The Fund is a new fund that was formed to acquire the assets and liabilities of a predecessor fund in a shell fund reorganization (the “Reorganization”). In connection with the organization of the Fund, the Audit Committee of the Board of Trustees of the Trust appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal year following May 31, 2010. The predecessor fund’s financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”). Concurrent with the closing of the Reorganization, the Prior Auditor resigned as the independent registered public accounting firm of the predecessor fund. The Prior Auditor’s report on the financial statements of the Fund for the past two years did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the period the Prior Auditor was engaged, there were no disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report.

Invesco Van Kampen V.I. Value Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. With the exception of the actual ending account value and expenses of the Series II shares, the example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010. The actual ending account value and expenses of the Series II shares in the below example are based on an investment of $1,000 invested as of close of business June 1, 2010 (the date the share class commenced operations) and held through June 30, 2010.

  The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period (as of close of business June 1, 2010 through June 30, 2010 for the Series II shares). Because the actual ending account value and expense information in the example is not based upon a six month period for the Series II shares, the ending account value and expense information may not provide a meaningful comparison to mutual funds that provide such information for a full six month period..

Hypothetical example for comparison purposes

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. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2,3		(06/30/10)		Period2,4		Ratio2
Series I	$	1,000.00	$	939.90	$	4.09	$	1,020.58	$	4.26		0.85	%
Series II		1,000.00		969.00		0.91		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 January 1, 2010, through June 30, 2010 (as of close of business June 1, 2010, through June 30, 2010 for the Series II shares), after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. For the Series II shares actual expenses are equal to the annualized expense ratio indicated above multiplied by the average account value over the period, multiplied by 30 (as of close of business June 1, 2010, through June 30, 2010)/365. Because the Series II shares have not been in existence for a full six month period, the actual ending account value and expense information shown may not provide a meaningful comparison to fund expense information of classes that show such data for a full six month period and, because the actual ending account value and expense information in the expense example covers a short time period, return and expense data may not be indicative of return and expense data for longer time periods.

  Effective June 1, 2010, the Fund’s adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses of Series I and Series II shares to 0.85% and 1.11%, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year is 0.86% for Series I shares. Restated annualized expense ratio for Series II shares remained the same.

3	The actual expenses paid restated as if the change discussed above had been in effect through the entire most recent fiscal half year is $4.14 for Series I shares. Restated actual expense ratio for Series II shares remained the same.
4	The hypothetical expenses paid restated as if the change discussed above had been in effect through the entire most recent fiscal half year is $4.31 for Series I shares. Restated hypothetical expense ratio for Series II shares remained the same.

Invesco Van Kampen V.I. Value Fund

Approval of Investment Advisory and Sub-Advisory Agreements With Invesco Advisers, Inc. and Its Affiliates

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the Company) is required under the Investment Company Act of 1940 to approve the Invesco Van Kampen V.I. Value Fund (the Fund) investment advisory agreements. During meetings held on December 1-2, 2009, the Board as a whole and the disinterested or “independent” Trustees, voting separately approved (i) an amendment to the Company’s investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) to add the Fund and (ii) an amendment to the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers) to add the Fund. In doing so, the Board determined that the investment advisory agreements are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Fund was formed to acquire the assets and liabilities of a Van Kampen retail fund (the Acquired Fund) with substantially similar investment objectives, strategies and risks. At the time of approval of the investment advisory agreements, the Fund had no assets and no performance history and the portfolio managers were not employed by Invesco Advisers or one of the Affiliated Sub-Advisers.

  In determining to approve the Fund’s investment advisory agreements, the Board considered among other things, the factors discussed below in evaluating the fairness and reasonableness of the Fund’s investment advisory agreements. The discussion below serves as a summary of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreements. The Board considered the information provided to them and did not identify any information that was controlling. One Trustee may have weighed a particular piece of information differently than another.

Factors and Conclusions and Summary of Evaluation of Investment Advisory Agreements

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services to be provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Adviser’s global trading operations. In determining whether to approve the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the series portfolios of funds advised by Invesco Advisers (the Invesco Funds), as well as the Board’s knowledge of Invesco Advisers’ operations. The Board concluded that the nature, extent and quality of the advisory services to be provided to the Fund support the Board’s approval of the investment advisory agreements.

  The Board reviewed the services to be provided by the Affiliated Sub-Advisers under the sub-advisory contracts. The Board noted that the Affiliated Sub-Advisers, which have offices and personnel that are located in financial centers around the world, can provide research and investment analysis on the markets and economies of various countries in which the Fund invests and make recommendations on securities of companies located in such countries. The Board concluded that the sub-advisory contracts will benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services to be provided by the Affiliated Sub-Advisers are appropriate.

B.  Fund Performance

The Fund will retain the performance track record of the Acquired Fund. The Board considered the performance of the Acquired Fund and the fact that the Fund is to be managed by substantially the same portfolio management team as managed the Acquired Fund. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts, as no Affiliated Sub-Adviser currently manages assets of the Fund.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board considered that the contractual advisory fee rate of the Fund is the same as that of the Acquired Fund, that the board of the Acquired Fund had approved such fee, and that Invesco Advisers has contractually agreed to limit expenses of the Fund through June 30, 2012. The Board was provided with a comparison of the contractual advisory fee of the Fund to the uniform fee schedule applicable to other Invesco Funds and with materials prepared by Lipper, Inc. for the board of the Acquired Fund.

  The Board also considered the services to be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services to be provided by Invesco Advisers pursuant to the Fund’s investment advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory fee rate, the contractual sub-advisory fee rate, the expense limits and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees were fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule provides for

breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board considered information from the 2009 contract renewal process provided by Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit. The Board concluded that the Fund’s fees were fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund are not anticipated to be excessive in light of the nature, quality and extent of the services provided. The Board considered whether Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the Fund’s investment advisory agreement, and concluded that Invesco Advisers has the financial resources necessary to fulfill these obligations. The Board also considered whether each Affiliated Sub-Adviser is financially sound and has the resources necessary to perform its obligations under its respective sub-advisory contract, and concluded that each Affiliated Sub-Adviser has the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits to be received by Invesco Advisers and its affiliates resulting from Invesco Advisers’ relationship with the Fund, including the fees to be received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services to other Invesco Funds and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services will be

Invesco Van Kampen V.I. Value Fund

provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates were providing these services to Invesco Funds in accordance with the terms of their contracts, and were qualified to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that Invesco Advisers’ and the Affiliated Sub-Advisers’ soft dollar arrangements are appropriate. The Board also concluded that, based on its review and representations made by the Chief Compliance Officer of Invesco Advisers, these arrangements are consistent with regulatory requirements.

  The Board considered the fact that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

Invesco Van Kampen V.I. Value Fund

Proxy Results

A Special Meeting (“Meeting”) of Shareholders of The Universal Institutional Funds, Inc. — Value Portfolio was held on Tuesday, May 11, 2010. The Meeting was held for the following purpose:

(1)  Approve an Agreement and Plan of Reorganization.

The results of the voting on the above matter were as follows:

				Votes		Votes		Broker
	Matter	Votes For		Against		Abstain		Non-Votes
(1)	Approve an Agreement and Plan of Reorganization		2,451,914		139,353		170,511		0

Invesco Van Kampen V.I. Value Fund

TABLE OF CONTENTS

	Item 1. Reports to Stockholders.
	ITEM 2. CODE OF ETHICS
	ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
	ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
	ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
	ITEM 6. SCHEDULE OF INVESTMENTS
	ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
	ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
	ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
	ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
	ITEM 11. CONTROLS AND PROCEDURES
	ITEM 12. EXHIBITS
SIGNATURES

ITEM 2. CODE OF ETHICS.

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 June 16, 2010, for Invesco V.I. Basic Balanced Fund, Invesco V.I. Basic Value Fund, Invesco V.I. Capital Appreciation Fund, Invesco V.I. Capital Development Fund, Invesco V.I. Core Equity Fund, Invesco V.I. Diversified Income Fund, Invesco V.I. Dynamics Fund, Invesco V.I. Financial Services Fund, Invesco V.I. Global Health Care Fund, Invesco V.I. Global Multi-Asset Fund, Invesco V.I. Global Real Estate Fund, Invesco V.I. Government Securities Fund, Invesco V.I. High Yield Fund, Invesco V.I. International Growth Fund,

Invesco V.I. Large Cap Growth Fund, Invesco V.I. Leisure Fund, Invesco V.I. Mid Cap Core Equity Fund, Invesco V.I. Money Market Fund, Invesco V.I. Small Cap Equity Fund, Invesco V.I. Technology Fund, and Invesco V.I. Utilities Fund, and as of June 25, 2010, for Invesco V.I. Dividend Growth Fund, Invesco V.I. Global Dividend Growth Fund, Invesco V.I. High Yield Securities Fund, Invesco V.I. Income Builders Fund, Invesco V.I. S&P 500 Index Fund, Invesco V.I. Select Dimensions Balanced Fund, Invesco V.I. Select Dimensions Dividend Growth Fund, Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund, Invesco Van Kampen V.I. Capital Growth Fund, Invesco Van Kampen V.I. Comstock Fund, Invesco Van Kampen V.I. Equity and Income Fund, Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund, Invesco Van Kampen V.I. Global Value Equity Fund, Invesco Van Kampen V.I. Government Fund, Invesco Van Kampen V.I. Growth and Income Fund, Invesco Van Kampen V.I. High Yield Fund, Invesco Van Kampen V.I. International Growth Equity Fund, Invesco Van Kampen V.I. Mid Cap Growth Fund, Invesco Van Kampen V.I. Mid Cap Value Fund and Invesco Van Kampen V.I. Value Fund 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 June 16, 2010, for Invesco V.I. Basic Balanced Fund, Invesco V.I. Basic Value Fund, Invesco V.I. Capital Appreciation Fund, Invesco V.I. Capital Development Fund, Invesco V.I. Core Equity Fund, Invesco V.I. Diversified Income Fund, Invesco V.I. Dynamics Fund, Invesco V.I. Financial Services Fund, Invesco V.I. Global Health Care Fund, Invesco V.I. Global Multi-Asset Fund, Invesco V.I. Global Real Estate Fund, Invesco V.I. Government Securities Fund, Invesco V.I. High Yield Fund, Invesco V.I. International Growth Fund, Invesco V.I. Large Cap Growth Fund, Invesco V.I. Leisure Fund, Invesco V.I. Mid Cap Core Equity Fund, Invesco V.I. Money Market Fund, Invesco V.I. Small Cap Equity Fund, Invesco V.I. Technology Fund, and Invesco V.I. Utilities Fund, and as of June 25, 2010, for Invesco V.I. Dividend Growth Fund, Invesco V.I. Global Dividend Growth Fund, Invesco V.I. High Yield Securities Fund, Invesco V.I. Income Builders Fund, Invesco V.I. S&P 500 Index Fund, Invesco V.I. Select Dimensions Balanced Fund, Invesco V.I. Select Dimensions Dividend Growth Fund, Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund, Invesco Van Kampen V.I. Capital Growth Fund, Invesco Van Kampen V.I. Comstock Fund, Invesco Van Kampen V.I. Equity and Income Fund, Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund, Invesco Van Kampen V.I. Global Value Equity Fund, Invesco Van Kampen V.I. Government Fund, Invesco Van Kampen V.I. Growth and Income Fund, Invesco Van Kampen V.I. High Yield Fund, Invesco Van Kampen V.I. International Growth Equity Fund, Invesco Van Kampen V.I. Mid Cap Growth Fund, Invesco Van Kampen V.I. Mid Cap Value Fund and Invesco Van Kampen V.I. Value Fund 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 Variable Insurance Funds (Invesco Variable Insurance Funds)

By:	/s/ Philip A. Taylor      Philip A. Taylor
	Principal Executive Officer
Date: August 27, 2010

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: August 27, 2010
By:	/s/ Sheri Morris
	Sheri Morris
	Principal Financial Officer
Date: August 27, 2010

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.