N-CSRS

OMB APPROVAL

OMB Number: 3235-0570

Expires: January 31, 2014

Estimated average burden       

hours per response: 20.6

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file
number 811-07452

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: 6/30/11

Item 1. Reports to Stockholders.

Invesco V.I. Balanced-Risk Allocation Fund

Semiannual Report to Shareholders ■ June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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.

VIIBRA-SAR-1

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	2.65	%
Series II Shares	2.43
MSCI World Index▼ (Broad Market Index)	5.29
Van Kampen Global Tactical Asset Allocation Blended Benchmark■
(Style-Specific Index)	5.18

^▼Lipper Inc.; ^■Invesco, IDC via FactSet Research

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries.

     The Van Kampen Global Tactical Asset Allocation Blended Benchmark, created by Invesco to serve as a benchmark for Invesco Van Kampen V.I. Balanced-Risk Allocation Fund, is composed of the following indexes: 65% MSCI World Index, 30% JP Morgan GBI Global Index and 5% Citigroup 3-Month Treasury Bill Index.

     The JP Morgan GBI Global Index is a total return, market capitalization-weighted index, rebalanced monthly, consisting of the following countries: Australia, Germany, Spain, Belgium, Italy, Sweden, Canada, Japan, the United Kingdom, Denmark, the Netherlands and the United States.

     The Citigroup 3-Month Treasury Bill Index is an unmanaged index representative of three-month Treasury bills.

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

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

Effective May 2, 2011, Series I and Series II shares of Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Balanced-Risk Allocation Fund. Prior to this, on June 1, 2010, Class I and Class II shares of Van Kampen Life Investment Trust Global Tactical Asset Allocation Portfolio, 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 funds and Invesco V.I. Balanced-Risk Allocation Fund. Share class returns will differ from the predecessor funds 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 0.74% and 0.99%, 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 1.38% and 1.63%, 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.

Average Annual Total Returns
As of 6/30/11
Series I Shares
Inception (1/23/09)	16.23	%
1 Year	20.06
Series II Shares
Inception (1/23/09)	15.90	%
1 Year	19.67

     Invesco V.I. Balanced-Risk 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.

1	The expense ratio includes acquired fund fees and expenses of the underlying funds in which the Fund invests of 0.04%.
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, 2013. See current prospectus for more information.

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Schedule of Investments

June 30, 2011

(Unaudited)

	Principal
	Amount		Value
U.S. Treasury Bills–8.89%
0.04%, 08/11/11(a)(b) (Cost $10,999,474)	$	11,000,000	$	10,999,474
	Shares
Exchange Traded Fund–1.86%
Investment Companies–Exchange Traded Funds–1.86%
PowerShares DB Gold Fund (Cost $2,366,804)(c)		43,700		2,295,998
Money Market Funds–81.63%
Invesco V.I. Money Market Fund(d)		82,095,824		82,095,824
Liquid Assets Portfolio–Institutional Class(d)		1,777,877		1,777,877
Premier Portfolio–Institutional Class(d)		1,777,878		1,777,878
STIC (Global Series) PLC–U.S. Dollar Liquidity Portfolio–Institutional Class(d)		15,325,594		15,325,594
Total Money Market Funds (Cost $100,977,173)				100,977,173
TOTAL INVESTMENTS–92.38% (Cost $114,343,451)				114,272,645
OTHER ASSETS LESS LIABILITIES–7.62%				9,431,342
NET ASSETS–100.00%			$	123,703,987

Notes to Schedule of Investments:

(a)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(b)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures and swap contracts. See Note 1L and Note 4.
(c)	Not an affiliate of the Fund or its investment adviser.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Open Futures Contracts and Swap Agreements at Period-End
								Unrealized
		Number of		Month/		Notional		Appreciation
Futures Contracts		Contracts		Commitment		Value		(Depreciation)
Dow Jones Eurostoxx 50			127		September-2011/Long	$	5,246,762	$	153,170
E-Mini S&P 500 Index			127		September-2011/Long		8,353,425		312,801
Euro Bond Future			69		September-2011/Long		12,559,469		48,832
FTSE 100 Index			89		September-2011/Long		8,431,951		211,635
Hang Seng Index			58		July-2011/Long		8,358,225		219,699
100 Ounce Gold			68		August-2011/Long		10,219,040		(169,555	)
Japan 10 Year Bonds			22		September-2011/Long		38,549,882		79,485
LME Copper			34		December-2011/Long		8,021,450		112,152
Long Gilt			106		September-2011/Long		20,442,393		68,462
Russell 2000 Index Mini			53		September-2011/Long		4,374,620		272,847
Topix Tokyo Price Index			37		September-2011/Long		3,905,019		203,624
U.S. Treasury 20 Year Bonds			100		September-2011/Long		12,303,125		(96,304	)
WTI Crude			64		December-2011/Long		6,241,920		(244,362	)
Sub-total Futures Contracts						$	147,007,281	$	1,172,486
						Notional
Swap Agreements	Counterparty					Amount
Australian 10 Year Bonds	Merrill Lynch		199		September-2011/Long	$	22,406,680	$	12,575
Canada 10 Year Bonds	Goldman Sachs		190		September-2011/Long		24,060,195		31,186
Euro Bund	Merrill Lynch		72		September-2011/Long		13,165,332		49,809
Japan 10 Year Bonds	Merrill Lynch		8		September-2011/Long		14,052,408		20,889
Soybean Meal*	Barclays Capital		8,840		May-2012/Long		5,322,824		(402,929	)
U.S. Treasury 30 Year Bonds	Goldman Sachs		7		September-2011/Long		867,945		(7,421	)
Sub-total Swap Agreements						$	79,875,384	$	(295,891	)
Total								$	876,595

*  Receive a return equal to Barclays Capital Soybean Meal S2 Nearby Excess Return Index and pay the product of (i) 0.30% of the Notional Amount multiplied by (ii) days in the period divided by 365.

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

Invesco V.I. Balanced-Risk Allocation Fund

Portfolio Composition

By asset class, based on Net Assets

as of June 30, 2011

Asset Class

				% of Total
				Net Assets
Asset Class	Risk Allocation			as of 06/30/11**
Equity		21.5	%		31.4	%
Fixed Income		49.8			124.3
Commodities		28.7			25.4

**  Due to the use of leverage, the percentages may not equal 100%

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

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Statement of Assets
and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $13,366,278)	$	13,295,472
Investments in affiliated money market funds, at value and cost		100,977,173
Total investments, at value (Cost $114,343,451)		114,272,645
Cash		2,000,009
Foreign currencies, at value (Cost $101,631)		102,113
Receivable for:
Deposits with brokers for open futures contracts		7,690,000
Variation margin		368,237
Fund shares sold		41,553
Dividends		17,058
Fund expenses absorbed		8,426
Investment for trustee deferred compensation and retirement plans		8,428
Other assets		126
Total assets		124,508,595
Liabilities:
Payable for:
Fund shares reacquired		104,201
Accrued fees to affiliates		184,962
Accrued other operating expenses		112,702
Trustee deferred compensation and retirement plans		10,065
Unrealized depreciation on swap agreements		392,678
Total liabilities		804,608
Net assets applicable to shares outstanding	$	123,703,987
Net assets consist of:
Shares of beneficial interest	$	125,129,587
Undistributed net investment income		(342,520	)
Undistributed net realized gain (loss)		(1,889,737	)
Unrealized appreciation		806,657
	$	123,703,987
Net Assets:
Series I	$	2,445,611
Series II	$	121,258,376
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		229,194
Series II		11,391,562
Series I:
Net asset value per share	$	10.67
Series II:
Net asset value per share	$	10.64

Consolidated Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $39,488)	$	450,270
Dividends from affiliated money market funds		11,556
Interest		3,519
Total investment income		465,345
Expenses:
Advisory fees		388,102
Administrative services fees		139,723
Distribution fees — Series II		114,032
Trustees’ and officers’ fees and benefits		7,346
Other		(42,538	)
Total expenses		606,665
Less: Fees waived		(167,424	)
Net expenses		439,241
Net investment income		26,104
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		9,306,057
Foreign currencies		(21,018	)
Futures contracts		(2,981,491	)
Swap agreements		1,196,241
		7,499,789
Change in net unrealized appreciation (depreciation) of:
Investment securities		(6,909,246	)
Foreign currencies		(498	)
Foreign currency contracts		31,427
Futures contracts		1,038,245
Swap agreements		(442,453	)
		(6,282,525	)
Net realized and unrealized gain		1,217,264
Net increase in net assets resulting from operations	$	1,243,368

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

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Statement of Changes in Net Assets

For the six months ended June 30, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	26,104		$	468,578
Net realized gain		7,499,789			5,198,426
Change in net unrealized appreciation (depreciation)		(6,282,525	)		127,094
Net increase in net assets resulting from operations		1,243,368			5,794,098
Distributions to shareholders from net investment income:
Series I		(136	)		(196	)
Series II		(301,687	)		(185,515	)
Total distributions from net investment income		(301,823	)		(185,711	)
Distributions to shareholders from net realized gains:
Series I		(3,582	)		(1,436	)
Series II		(14,743,368	)		(1,359,183	)
Total distributions from net realized gains		(14,746,950	)		(1,360,619	)
Share transactions–net:
Series I		2,449,569			(107,942	)
Series II		60,367,160			(39,141,623	)
Net increase (decrease) in net assets resulting from share transactions		62,816,729			(39,249,565	)
Net increase (decrease) in net assets		49,011,324			(35,001,797	)
Net assets:
Beginning of period		74,692,663			109,694,460
End of period (includes undistributed net investment income of $(342,520) and $(66,801), respectively)	$	123,703,987		$	74,692,663

Notes to Consolidated Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Balanced-Risk Allocation Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these consolidated financial statements pertains 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 will seek to gain exposure to the commodity markets primarily through investments in the Invesco Cayman Commodity Fund IV Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives. The Fund may invest up to 25% of its total assets in the Subsidiary.

  The Fund’s investment objective is to provide total return with a low to moderate correlation to traditional financial market indices.

  Prior to May 2, 2011, the Fund operated as Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund (the “Acquired Fund”), an investment portfolio of the Trust. The Acquired Fund was reorganized May 2, 2011 (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 Series I and Series II Shares received Series I and Series II Shares, respectively of the Fund. Information for the Acquired Fund’s–Series I and Series II Shares prior to the Reorganization are included with Series I and Series II Shares, respectively, of the Fund throughout this report.

Invesco V.I. Balanced-Risk Allocation 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 consolidated 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 trade 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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated 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 Consolidated Statement of Operations and Consolidated Statement of Changes in Net Assets, or the net

Invesco V.I. Balanced-Risk Allocation Fund

	investment income per share and ratios of expenses and net investment income reported in the Consolidated 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 Consolidated 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 consolidated financial statements.
	The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
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 financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation.
	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 consolidated financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of performance of their duties to the Fund and/or the Subsidiary, respectively. 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 or Subsidiary 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 Consolidated 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 Consolidated 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 Consolidated Statement of Assets and Liabilities.
J.	Swap Agreements — The Fund or Subsidiary 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.

Invesco V.I. Balanced-Risk Allocation Fund

	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. If a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances.
	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 Consolidated 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 Consolidated 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 Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated 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 Consolidated 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.
K.	Other Risks — The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in exchange traded funds. The Subsidiary, unlike the Fund, may invest without limitation in commodities, commodity-linked derivatives and other securities, such as exchange traded notes, that may provide leverage and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.
	The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
L.	Collateral — To the extent the Fund or the Subsidiary 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

Effective May 2, 2011, 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	.950%
Next $250 million		0	.925%
Next $500 million		0	.90%
Next $1.5 billion		0	.875%
Next $2.5 billion		0	.85%
Next $2.5 billion		0	.825%
Next $2.5 billion		0	.80%
Over $10 billion		0	.775%

Invesco V.I. Balanced-Risk Allocation Fund

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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 Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.

  Effective May 2, 2011, the Adviser contractually agreed, through at least June 30, 2013, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.70% and Series II shares to 0.95% of average daily net assets. Prior to May 2, 2011, the Adviser waived advisory fees and/or reimbursed expenses of all shares to the extent necessary to limit total annual fund operating expenses to 0.90% and 1.15% for Series I and Series II shares, 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 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; (5) expenses of the underlying funds that are paid indirectly as a result of share ownership of the underlying funds; (6) expenses related to a merger or reorganization, as approved by the Fund’s Board of Trustees; and (7) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2013.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $167,424.

  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, 2011, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $114,929 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, 2011, expenses incurred under the agreement are shown in the Consolidated 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, 2011, expenses incurred under the Plan are detailed in the Consolidated Statement of Operations as distribution fees.

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

NOTE 3—Additional Valuation Information

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

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

Invesco V.I. Balanced-Risk Allocation Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2			Level 3		Total
Exchange-Traded Funds	$	2,295,998	$	—		$	—	$	2,295,998
Money Market Funds		100,977,173		—			—		100,977,173
Foreign Government Debt Securities		—		10,999,474			—		10,999,474
	$	103,273,171	$	10,999,474		$	—	$	114,272,645
Futures Contracts*		1,172,486		—			—		1,172,486
Swap Agreements*		—		(295,891	)		—		(295,891	)
Total Investments	$	104,445,657	$	10,703,583		$	—	$	115,149,240

*  Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund has implemented new 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 consolidated 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, 2011:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Commodity risk
Futures contracts(a)	$	112,152	$	(413,917	)
Swap agreements(b)		—		(402,929	)
Interest rate risk
Futures contracts(a)		196,779		(96,304	)
Swap agreements(b)		114,459		(7,421	)
Market risk
Futures contracts(a)		1,373,776		—
	$	1,797,166	$	(920,571	)

(a)	Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s net variation margin (payable) is reported within the Consolidated Statement of Assets & Liabilities.
(b)	Values are disclosed on the Consolidated Statement of Assets and Liabilities under Unrealized appreciation (depreciation) on swap agreements.

Invesco V.I. Balanced-Risk Allocation Fund

Effect of Derivative Instruments for the six months ended June 30, 2011

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)
Commodity risk	$	(1,186,826	)	$	285,558
Interest rate risk		1,005,186			910,683
Market risk		(2,799,851	)		—
Change in Unrealized Appreciation (Depreciation)
Commodity risk	$	(301,765	)	$	(402,929	)
Interest rate risk		115,781			107,038
Market risk		1,224,229			(146,562	)
Total	$	(1,943,246	)	$	753,788

*  The average value of futures and swap agreements outstanding during the period was $181,618,441 and $2,163,782, respectively.

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, 2011, the Fund paid legal fees of $683 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund and the Subsidiary are 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.

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, 2011 was $16,002,351 and $67,191,974, respectively. For interim reporting periods, the cost of investments for tax purposes includes reversals of certain tax items, such as wash sales, that have occurred since the prior fiscal year-end. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	—
Aggregate unrealized (depreciation) of investment securities		(70,806	)
Net unrealized appreciation (depreciation) of investment securities	$	(70,806	)
Cost of investments is the same for tax and financial reporting purposes.

Invesco V.I. Balanced-Risk Allocation Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		71,146		$	759,017			—		$	58
Series II		570,294			6,816,983			2,727,339			33,427,450
Issued as reinvestment of dividends:
Series I		—			—			—			—
Series II		1,398,239			15,045,055			101,831			1,546,330
Issued in connection with acquisitions:(b)
Series I		174,025			1,876,288			—			—
Series II		6,178,799			66,483,294			—			—
Reacquired:
Series I		(17,302	)		(185,736	)		(8,675	)		(108,000	)
Series II		(2,479,512	)		(27,978,172	)		(6,161,080	)		(74,115,403	)
Net increase (decrease) in share activity		5,895,689		$	62,816,729			(3,340,585	)	$	(39,249,565	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 91% 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)

As of the opening of business on May 2, 2011, the Fund acquired all the net assets of Invesco V.I. Global Multi-Asset Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco V.I. Global Multi-Asset Fund on April 1, 2011. The acquisition was accomplished by a taxable exchange of 6,352,824 shares of the Fund for 5,245,904 shares outstanding of Invesco V.I. Global Multi-Asset Fund as of the close of business on April 29, 2011. Each class of Invesco V.I. Global Multi-Asset Fund was exchanged for the like class of shares of the Fund, based on the relative net asset value of Invesco V.I. Global Mulit-Asset Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco V.I. Global Multi-Asset Fund’s net assets at that date of $68,359,582 was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $73,364,971.

Invesco V.I. Balanced-Risk Allocation Fund

NOTE 10—Consolidated 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				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 06/30/11	$	13.09	$	0.02	$	0.37	$	0.39	$	(0.10	)	$	(2.70	)	$	(2.81	)	$	10.67		2.65	%	$	2,446		0.71	%(d)(e)		1.07	%(e)		0.30	%(e)		37	%
Year ended 12/31/10(f)		12.00		0.10		1.15		1.25		(0.02	)		(0.14	)		(0.16	)		13.09		10.57			17		0.89			1.29			0.88	(g)		444
Eleven months ended 12/31/09(h)		10.00		0.04		2.67		2.71		(0.25	)		(0.46	)		(0.71	)		12.00		28.21			120		0.90	(i)(j)		1.46	(i)(j)		0.41	(g)(i)(j)		87
Series II*
Six months ended 06/30/11		13.05		0.00		0.35		0.35		(0.06	)		(2.70	)		(2.76	)		10.64		2.43			121,258		0.96	(d)(e)		1.32	(e)		0.05	(e)		37
Year ended 12/31/10(f)		12.10		0.07		1.04		1.11		(0.02	)		(0.14	)		(0.16	)		13.05		9.32			75		1.14			1.54			0.59	(g)		444
Eleven months ended 12/31/09(h)		10.00		0.05		2.74		2.79		(0.23	)		(0.46	)		(0.69	)		12.10		27.86	(k)		110		1.15	(i)(j)		1.71	(i)(j)		0.44	(g)(i)(j)		87

*	Prior to May 2, 2011, the Fund operated as Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund. On such date, holders of the Acquired Fund’s Series I and Series II shares received Series I and Series II shares, respectively of the Fund.
(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)	In addition to the fees and expenses which the Fund bears directly; the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. Estimated underlying fund expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the funds your Fund invests in. The effect of the estimated underlying fund expenses that you bear indirectly is included in your Fund’s total return. Estimated acquired fund fees from underlying funds was 0.04%.
(e)	Ratios are annualized and based on average daily net assets (000’s omitted) of $724 and $91,981 for Series I and Series II shares, respectively.
(f)	On June 1, 2010, Class I and Class II shares of the predecessor fund were reorganized into Series I and Series II shares, respectively of the Fund.
(g)	Ratio of net investment income to average net assets without fee waivers and/or expenses absorbed for the year ended December 31, 2010 and the period ended December 31, 2009 was 0.48% and (0.15)% for Series I shares and 0.19% and (0.12)% for Series II shares, respectively.
(h)	Commencement date of January 23, 2009.
(i)	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 0.08% at December 31, 2009.
(j)	Annualized.
(k)	These returns include combined 12b-1 fees and service fees of up to 0.25%.

Invesco V.I. Balanced-Risk Allocation 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, 2011 through June 30, 2011.

  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which your Fund invests. The amount of fees and expenses incurred indirectly by your Fund will vary because the underlying funds have varied expenses and fee levels and the Fund may own different proportions of the underlying funds at different times. Estimated underlying fund expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the underlying funds your Fund invests in. The effect of the estimated underlying fund expenses that you bear indirectly are included in your Fund’s total return.

  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	(01/01/11)		(06/30/11)1		Period2,4		(06/30/11)		Period2,5		Ratio3
Series I	$	1,000.00	$	1,026.50	$	3.57	$	1,021.27	$	3.56		0.71	%
Series II		1,000.00		1,024.30		4.82		1,020.03		4.81		0.96

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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.
3	Effective May 2, 2011, 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 0.70% and 0.95% 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 0.68% and 0.93% for Series I and Series II shares, respectively.
4	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $3.42 and $4.67 for Series I and Series II shares, respectively.
5	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $3.41 and $4.66 for Series I and Series II shares, respectively.

Invesco V.I. Balanced-Risk Allocation 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. Balanced-Risk Allocation 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the

Invesco V.I. Balanced-Risk Allocation Fund

nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

B.  Fund Performance

The Board noted that no Lipper material was available for the Fund because the Fund has less than one year of operations at December 31,2010. The Board did note that performance of the Fund was below the MSCI World Index for the period ending December 31, 2010.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board noted that no Lipper material was available for the Fund because the Fund has less than one year of operations at December 31,2010. The Board 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. The Board noted that the Fund’s effective rate was below the fee rate for one mutual fund and above the sub-advisory fee rate of one offshore fund with comparable investment strategies.

  Other than the funds 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 June 30, 2013 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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. Balanced-Risk Allocation Fund

Invesco V.I. Basic Value Fund

Semiannual Report to Shareholders ■ June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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 total returns, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	3.29	%
Series II Shares	3.15
S&P500 Index▼ (Broad Market Index)	6.01
Russell 1000 Value Index▼ (Style-Specific Index)	5.92
Lipper VUF Large-Cap Value Funds Index▼ (Peer Group Index)	5.49
▼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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

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.

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (9/10/01)	1.35	%
5 Years	-2.06
1 Year	24.41
Series II Shares
Inception (9/10/01)	1.10	%
5 Years	-2.32
1 Year	24.08

Invesco V.I. Basic Value Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.29%(a)
Advertising–5.77%
Omnicom Group, Inc.		334,112	$	16,090,834
Aerospace & Defense–1.84%
Honeywell International, Inc.		86,169		5,134,811
Asset Management & Custody Banks–1.96%
Bank of New York Mellon Corp.		213,449		5,468,563
Automobile Manufacturers–2.17%
Renault S.A. (France)		102,117		6,056,333
Brewers–3.59%
Molson Coors Brewing Co.–Class B		223,892		10,016,928
Cable & Satellite–6.91%
Comcast Corp.–Class A		234,976		5,954,292
Time Warner Cable, Inc.		170,588		13,312,687
				19,266,979
Computer Hardware–6.29%
Apple, Inc.(b)		14,954		5,019,609
Dell, Inc.(b)		224,172		3,736,948
Hewlett-Packard Co.		240,828		8,766,139
				17,522,696
Data Processing & Outsourced Services–1.73%
Western Union Co.		241,082		4,828,873
Department Stores–3.21%
Macy’s, Inc.		305,695		8,938,522
Diversified Banks–5.81%
Comerica, Inc.		100,948		3,489,772
U.S. Bancorp		187,939		4,794,324
Wells Fargo & Co.(b)		281,666		7,903,548
				16,187,644
General Merchandise Stores–1.80%
Target Corp.		106,901		5,014,726
Household Products–2.72%
Procter & Gamble Co. (The)		119,318		7,585,045
Hypermarkets & Super Centers–3.40%
Wal-Mart Stores, Inc.		178,231		9,471,195
Industrial Conglomerates–1.70%
General Electric Co.		250,848		4,730,993
Integrated Oil & Gas–12.60%
Chevron Corp.		106,813		10,984,649
Exxon Mobil Corp.		75,081		6,110,092
Petroleo Brasileiro S.A.–ADR (Brazil)		170,924		5,787,486
Royal Dutch Shell PLC–ADR (United Kingdom)		171,847		12,223,477
				35,105,704
Investment Banking & Brokerage–3.17%
Goldman Sachs Group, Inc. (The)		28,025		3,729,847
Morgan Stanley		221,842		5,104,585
				8,834,432
Life & Health Insurance–1.95%
MetLife, Inc.		123,759		5,429,307
Managed Health Care–2.07%
UnitedHealth Group, Inc.		112,009		5,777,424
Oil & Gas Drilling–1.25%
Noble Corp.(b)		88,572		3,490,623
Other Diversified Financial Services–8.17%
Bank of America Corp.		604,439		6,624,652
Citigroup, Inc.		90,805		3,781,120
JPMorgan Chase & Co.		302,148		12,369,939
				22,775,711
Pharmaceuticals–4.39%
Bristol-Myers Squibb Co.		169,395		4,905,679
Pfizer, Inc.		355,780		7,329,068
				12,234,747
Property & Casualty Insurance–13.27%
Allied World Assurance Co. Holdings Ltd. (Switzerland)(b)		79,212		4,561,027
Allstate Corp. (The)		192,530		5,877,941
Aspen Insurance Holdings Ltd.		264,646		6,809,342
Chubb Corp. (The)		238,017		14,902,244
Travelers Cos., Inc. (The)		82,796		4,833,630
				36,984,184
Steel–1.52%
POSCO–ADR (South Korea)(b)		39,033		4,239,764
Wireless Telecommunication Services–2.00%
Vodafone Group PLC–ADR (United Kingdom)		208,266		5,564,868
Total Common Stocks & Other Equity Interests (Cost $231,899,925)			$	276,750,906

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

Invesco V.I. Basic Value Fund

	Shares		Value
Money Market Funds–1.80%
Liquid Assets Portfolio–Institutional Class(c)		2,502,457	$	2,502,457
Premier Portfolio–Institutional Class(c)		2,502,457		2,502,457
Total Money Market Funds (Cost $5,004,914)				5,004,914
TOTAL INVESTMENTS–101.09% (Cost $236,904,839)				281,755,820
OTHER ASSETS LESS LIABILITIES–(1.09)%				(3,035,794	)
NET ASSETS–100.00%			$	278,720,026

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, 2011

Financials	34.3	%
Consumer Discretionary	19.9
Energy	13.9
Consumer Staples	9.7
Information Technology	8.0
Health Care	6.5
Industrials	3.5
Telecommunication Services	2.0
Materials	1.5
Money Market Funds Plus Other Assets Less Liabilities	0.7

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $231,899,925)	$	276,750,906
Investments in affiliated money market funds, at value and cost		5,004,914
Total investments, at value (Cost $236,904,839)		281,755,820
Foreign currencies, at value (Cost $3)		3
Receivable for:
Fund shares sold		245,562
Dividends		626,449
Investment for trustee deferred compensation and retirement plans		27,658
Total assets		282,655,492
Liabilities:
Payable for:
Fund shares reacquired		3,391,589
Accrued fees to affiliates		439,160
Accrued other operating expenses		17,394
Trustee deferred compensation and retirement plans		87,323
Total liabilities		3,935,466
Net assets applicable to shares outstanding	$	278,720,026
Net assets consist of:
Shares of beneficial interest	$	300,961,806
Undistributed net investment income		3,499,646
Undistributed net realized gain (loss)		(70,592,407	)
Unrealized appreciation		44,850,981
	$	278,720,026
Net Assets:
Series I	$	162,815,780
Series II	$	115,904,246
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		24,717,643
Series II		17,724,673
Series I:
Net asset value per share	$	6.59
Series II:
Net asset value per share	$	6.54

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $77,946)	$	3,214,290
Dividends from affiliated money market funds		5,935
Total investment income		3,220,225
Expenses:
Advisory fees		1,047,150
Administrative services fees		402,682
Custodian fees		143
Distribution fees — Series II		158,316
Transfer agent fees		10,501
Trustees’ and officers’ fees and benefits		12,324
Other		16,901
Total expenses		1,648,017
Less: Fees waived		(7,766	)
Net expenses		1,640,251
Net investment income		1,579,974
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $520,464)		13,021,974
Foreign currencies		(9,043	)
		13,012,931
Change in net unrealized appreciation (depreciation) of investment securities		(4,372,834	)
Net realized and unrealized gain		8,640,097
Net increase in net assets resulting from operations	$	10,220,071

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	1,579,974		$	1,797,336
Net realized gain		13,012,931			1,972,585
Change in net unrealized appreciation (depreciation)		(4,372,834	)		17,975,887
Net increase in net assets resulting from operations		10,220,071			21,745,808
Distributions to shareholders from net investment income:
Series I		—			(1,104,262	)
Series II		—			(467,104	)
Total distributions from net investment income		—			(1,571,366	)
Share transactions–net:
Series I		(24,621,262	)		(56,488,740	)
Series II		(20,691,879	)		(10,025,853	)
Net increase (decrease) in net assets resulting from share transactions		(45,313,141	)		(66,514,593	)
Net increase (decrease) in net assets		(35,093,070	)		(46,340,151	)
Net assets:
Beginning of period		313,813,096			360,153,247
End of period (includes undistributed net investment income of $3,499,646 and $1,919,672, respectively)	$	278,720,026		$	313,813,096

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Basic Value Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		0	.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 Canada Ltd. (formerly 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, 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 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 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 the Trustees and Invesco mutually agree to amend or

Invesco V.I. Basic Value Fund

continue the fee waiver agreement, it will terminate on April 30, 2012. 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, 2012, 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, 2011, the Adviser waived advisory fees of $7,766.

  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, 2011, 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, 2011, Invesco was paid $39,842 for accounting and fund administrative services and reimbursed $362,840 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	281,755,820	$	—	$	—	$	281,755,820

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, 2011, the Fund engaged in securities purchases of $0 and securities sales of $1,845,703, which resulted in net realized gains of $520,464.

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, 2011, the Fund paid legal fees of $856 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	40,544,207
December 31, 2017		32,409,899
December 31, 2018		7,875,284
Total capital loss carryforward	$	80,829,390

*  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, 2011 was $33,493,339 and $69,604,596, 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	$	47,906,547
Aggregate unrealized (depreciation) of investment securities		(5,831,515	)
Net unrealized appreciation of investment securities	$	42,075,032
Cost of investments for tax purposes is $239,680,788.

Invesco V.I. Basic Value Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		680,499		$	4,541,544			1,839,415		$	11,111,452
Series II		604,420			3,959,429			4,402,680			25,876,503
Issued as reinvestment of dividends:
Series I		—			—			188,763			1,104,262
Series II		—			—			80,258			467,104
Reacquired:
Series I		(4,411,766	)		(29,162,806	)		(11,391,121	)		(68,704,454	)
Series II		(3,741,213	)		(24,651,308	)		(6,127,464	)		(36,369,460	)
Net increase (decrease) in share activity		(6,868,060	)	$	(45,313,141	)		(11,007,469	)	$	(66,514,593	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 75% 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.

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			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 06/30/11	$	6.38	$	0.04	$	0.17		$	0.21		$	—		$	—		$	—		$	6.59		3.29	%	$	162,816		0.97	%(d)		0.98	%(d)		1.15	%(d)		11	%
Year ended 12/31/10		5.98		0.04		0.40			0.44			(0.04	)		—			(0.04	)		6.38		7.35			181,515		1.00			1.00			0.65			86
Year ended 12/31/09		4.10		0.03		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		(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		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		1.54			1.61			(0.05	)		(0.58	)		(0.63	)		13.35		13.12			489,352		0.97			1.02			0.54			15
Series II
Six months ended 06/30/11		6.34		0.03		0.17			0.20			—			—			—			6.54		3.15			115,904		1.22	(d)		1.23	(d)		0.90	(d)		11
Year ended 12/31/10		5.95		0.02		0.39			0.41			(0.02	)		—			(0.02	)		6.34		6.94			132,298		1.25			1.25			0.40			86
Year ended 12/31/09		4.07		0.02		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		(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		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		1.54			1.58			(0.02	)		(0.58	)		(0.60	)		13.24		12.94			339,457		1.22			1.27			0.29			15

(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 $178,142 and $127,703 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,032.90	$	4.89	$	1,019.98	$	4.86		0.97	%
Series II		1,000.00		1,031.50		6.15		1,018.74		6.11		1.22

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds Multi-Cap Value Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of the performance universe for the one, three and five year periods (the first quintile being the best performing funds and the

Invesco V.I. Basic Value Fund

fifth quintile being the worst performing funds). The Board noted that 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 the lead manager for the Fund was replaced in June 2010. Invesco Advisers advised the Board that the Fund was managed consistently with its mandate. 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s effective fee rate was above the effective fee rate of one mutual fund with comparable investment strategies.

  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 solely for investment management services. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts. These additional services include 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 for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. 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 often more comparable. The Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to institutional clients, and 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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waivers is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.76	%
Series II Shares	4.62
S&P 500 Index▼ (Broad Market Index)	6.01
Russell 1000 Growth Index▼ (Style-Specific Index)	6.83
Lipper VUF Multi-Cap Growth Funds Category Average▼ (Peer Group)	6.56

^▼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 indexconsidered representative of large-cap growth stocks. The Russell 1000 GrowthIndex is a trademark/ servicemark 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 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (5/5/93)	6.21	%
10 Years	0.38
5 Years	0.13
1 Year	32.39
Series II Shares
10 Years	0.13	%
5 Years	-0.12
1 Year	32.02

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 0.91% and 1.16%, 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, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.85%
Aerospace & Defense–3.19%
Honeywell International, Inc.		115,007	$	6,853,267
Precision Castparts Corp.		85,274		14,040,364
				20,893,631
Apparel Retail–1.81%
Limited Brands, Inc.		171,837		6,607,133
Prada S.p.A. (Italy)(b)(c)		416,600		2,513,509
Prada S.p.A. (Italy)(c)		455,500		2,748,207
				11,868,849
Apparel, Accessories & Luxury Goods–1.70%
Coach, Inc.		174,280		11,141,720
Application Software–2.88%
Citrix Systems, Inc.(c)		163,812		13,104,960
Salesforce.com, Inc.(c)		38,578		5,747,350
				18,852,310
Asset Management & Custody Banks–1.19%
Ameriprise Financial, Inc.		134,982		7,785,762
Biotechnology–1.42%
Gilead Sciences, Inc.(c)		223,764		9,266,067
Cable & Satellite–4.07%
Comcast Corp.–Class A		395,577		10,023,921
DIRECTV–Class A(c)		326,938		16,614,989
				26,638,910
Casinos & Gaming–0.10%
Las Vegas Sands Corp.(c)		15,704		662,866
Communications Equipment–2.69%
F5 Networks, Inc.(c)		32,462		3,578,936
Juniper Networks, Inc.(c)		143,423		4,517,824
QUALCOMM, Inc.		167,777		9,528,056
				17,624,816
Computer Hardware–4.96%
Apple, Inc.(c)		96,655		32,444,184
Computer Storage & Peripherals–2.45%
EMC Corp.(c)		480,437		13,236,039
SanDisk Corp.(c)		66,452		2,757,758
				15,993,797
Construction & Engineering–1.62%
Foster Wheeler AG (Switzerland)(c)		349,158		10,607,420
Construction & Farm Machinery & Heavy Trucks–1.75%
Cummins Inc.		65,743		6,803,743
Navistar International Corp.(c)		81,893		4,623,679
				11,427,422
Consumer Finance–0.57%
American Express Co.		71,775		3,710,767
Data Processing & Outsourced Services–1.86%
MasterCard, Inc.–Class A		40,333		12,153,946
Department Stores–0.96%
Kohl’s Corp.		125,026		6,252,550
Drug Retail–1.09%
CVS Caremark Corp.		189,630		7,126,295
Fertilizers & Agricultural Chemicals–3.16%
Monsanto Co.		153,112		11,106,744
Mosaic Co. (The)		39,778		2,694,164
Potash Corp. of Saskatchewan Inc. (Canada)		120,913		6,890,832
				20,691,740
Gold–0.48%
Barrick Gold Corp. (Canada)		69,970		3,168,941
Health Care Distributors–1.01%
Cardinal Health, Inc.		145,278		6,598,527
Health Care Equipment–1.16%
Baxter International Inc.		74,014		4,417,896
Stryker Corp.		53,967		3,167,323
				7,585,219
Health Care Services–2.20%
Express Scripts, Inc.(c)		159,479		8,608,677
Medco Health Solutions, Inc.(c)		102,008		5,765,492
				14,374,169
Health Care Technology–0.69%
Allscripts Healthcare Solutions, Inc.(c)		231,341		4,492,642
Heavy Electrical Equipment–1.47%
ABB Ltd. (Switzerland)(c)		142,750		3,702,058
ABB Ltd.–ADR (Switzerland)(c)		228,490		5,929,316
				9,631,374
Home Improvement Retail–1.06%
Home Depot, Inc. (The)		191,941		6,952,103

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

Invesco V.I. Capital Appreciation Fund

	Shares		Value
Hotels, Resorts & Cruise Lines–0.10%
Starwood Hotels & Resorts Worldwide, Inc.		11,771	$	659,647
Hypermarkets & Super Centers–1.02%
Costco Wholesale Corp.		82,488		6,701,325
Industrial Machinery–2.58%
Danaher Corp.		119,946		6,355,939
Ingersoll-Rand PLC (Ireland)		231,371		10,506,557
				16,862,496
Integrated Oil & Gas–1.62%
Occidental Petroleum Corp.		101,778		10,588,983
Internet Retail–3.63%
Amazon.com, Inc.(c)		58,375		11,937,104
Netflix Inc.(c)		24,724		6,494,748
Priceline.com Inc.(c)		10,439		5,344,037
				23,775,889
Internet Software & Services–5.55%
Baidu, Inc.–ADR (China)(c)		145,582		20,400,406
Google, Inc.–Class A(c)		31,471		15,936,285
				36,336,691
Investment Banking & Brokerage–0.49%
Jefferies Group, Inc.		156,235		3,187,194
IT Consulting & Other Services–4.39%
Accenture PLC–Class A (Ireland)		319,860		19,325,941
Cognizant Technology Solutions Corp.–Class A(c)		127,641		9,361,191
				28,687,132
Life Sciences Tools & Services–0.94%
Illumina, Inc.(c)		81,987		6,161,323
Managed Health Care–2.25%
UnitedHealth Group, Inc.		285,426		14,722,273
Movies & Entertainment–1.02%
Walt Disney Co. (The)		170,485		6,655,734
Oil & Gas Equipment & Services–8.58%
Baker Hughes Inc.		92,828		6,735,600
Cameron International Corp.(c)		201,839		10,150,483
Halliburton Co.		241,024		12,292,224
National Oilwell Varco Inc.		213,370		16,687,668
Weatherford International Ltd.(c)		546,219		10,241,606
				56,107,581
Oil & Gas Exploration & Production–1.90%
Anadarko Petroleum Corp.		78,211		6,003,477
EOG Resources, Inc.		61,155		6,393,755
				12,397,232
Other Diversified Financial Services–1.22%
JPMorgan Chase & Co.		194,982		7,982,563
Packaged Foods & Meats–0.91%
Mead Johnson Nutrition Co.		87,716		5,925,216
Pharmaceuticals–1.79%
Allergan, Inc.		88,608		7,376,616
Pfizer Inc.		94,891		1,954,755
Shire PLC (United Kingdom)		76,163		2,377,747
				11,709,118
Railroads–1.39%
Union Pacific Corp.		87,388		9,123,307
Restaurants–1.09%
Chipotle Mexican Grill, Inc.(c)		11,383		3,508,127
Krispy Kreme Doughnuts Inc.–Wts., expiring 03/02/12(d)		1,194		955
Starbucks Corp.		92,208		3,641,294
				7,150,376
Semiconductors–2.55%
Atmel Corp.(c)		557,944		7,850,272
Broadcom Corp.–Class A(c)		160,293		5,392,256
Xilinx, Inc.		93,453		3,408,231
				16,650,759
Soft Drinks–0.68%
Hansen Natural Corp.(c)		54,809		4,436,789
Systems Software–5.20%
Oracle Corp.		311,087		10,237,873
Rovi Corp.(c)		414,148		23,755,529
				33,993,402
Technology Distributors–0.89%
Avnet, Inc.(c)		182,861		5,829,610
Trucking–1.74%
J.B. Hunt Transport Services, Inc.		241,928		11,392,390
Wireless Telecommunication Services–1.78%
America Movil SAB de C.V., Series L–ADR (Mexico)		86,379		4,654,101
American Tower Corp.–Class A(c)		133,595		6,991,026
				11,645,127
Total Common Stocks & Other Equity Interests (Cost $540,262,539)				646,628,184

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

Invesco V.I. Capital Appreciation Fund

	Shares		Value
Money Market Funds–2.96%
Liquid Assets Portfolio–Institutional Class(e)		9,688,893	$	9,688,893
Premier Portfolio–Institutional Class(e)		9,688,893		9,688,893
Total Money Market Funds (Cost $19,377,786)				19,377,786
TOTAL INVESTMENTS–101.81% (Cost $559,640,325)				666,005,970
OTHER ASSETS LESS LIABILITIES–(1.81)%				(11,859,673	)
NET ASSETS–100.00%			$	654,146,297

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)	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, 2011 represented 0.38% of the Fund’s Net Assets.
(c)	Non-income producing security.
(d)	Non-income producing security acquired through a corporate action.
(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, 2011

Information Technology	33.4	%
Consumer Discretionary	15.6
Industrials	13.7
Energy	12.1
Health Care	11.5
Consumer Staples	3.7
Materials	3.6
Financials	3.5
Telecommunication Services	1.8
Money Market Funds Plus Other Assets Less Liabilities	1.1

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $540,262,539)	$	646,628,184
Investments in affiliated money market funds, at value and cost		19,377,786
Total investments, at value (Cost $559,640,325)		666,005,970
Receivable for:
Investments sold		9,066,102
Fund shares sold		21,977
Dividends		367,205
Investment for trustee deferred compensation and retirement plans		150,811
Other assets		452
Total assets		675,612,517
Liabilities:
Payable for:
Investments purchased		13,919,283
Investments purchased from affiliates		5,838,727
Fund shares reacquired		490,454
Accrued fees to affiliates		891,260
Accrued other operating expenses		24,425
Trustee deferred compensation and retirement plans		302,071
Total liabilities		21,466,220
Net assets applicable to shares outstanding	$	654,146,297
Net assets consist of:
Shares of beneficial interest	$	750,779,483
Undistributed net investment income		1,031,927
Undistributed net realized gain (loss)		(204,030,758	)
Unrealized appreciation		106,365,645
	$	654,146,297
Net Assets:
Series I	$	473,381,884
Series II	$	180,764,413
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		19,395,770
Series II		7,537,175
Series I:
Net asset value per share	$	24.41
Series II:
Net asset value per share	$	23.98

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $29,042)	$	3,828,088
Dividends from affiliated money market funds (includes securities lending income of $4,187)		14,009
Interest		36,031
Total investment income		3,878,128
Expenses:
Advisory fees		2,073,488
Administrative services fees		862,184
Custodian fees		7,377
Distribution fees — Series II		229,135
Transfer agent fees		21,597
Trustees’ and officers’ fees and benefits		19,003
Other		26,300
Total expenses		3,239,084
Less: Fees waived		(13,265	)
Net expenses		3,225,819
Net investment income		652,309
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities (includes net gains from securities sold to affiliates of $529,732)		84,537,916
Foreign currencies		45,902
		84,583,818
Change in net unrealized appreciation (depreciation) of investment securities		(53,811,056	)
Net realized and unrealized gain		30,772,762
Net increase in net assets resulting from operations	$	31,425,071

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	652,309		$	735,384
Net realized gain		84,583,818			45,392,890
Change in net unrealized appreciation (depreciation)		(53,811,056	)		47,561,475
Net increase in net assets resulting from operations		31,425,071			93,689,749
Distributions to shareholders from net investment income:
Series I		—			(3,537,619	)
Series II		—			(915,129	)
Total distributions from net investment income		—			(4,452,748	)
Share transactions–net:
Series I		(48,153,486	)		(78,894,363	)
Series II		(12,822,318	)		(32,232,888	)
Net increase (decrease) in net assets resulting from share transactions		(60,975,804	)		(111,127,251	)
Net increase (decrease) in net assets		(29,550,733	)		(21,890,250	)
Net assets:
Beginning of period		683,697,030			705,587,280
End of period (includes undistributed net investment income of $1,031,927 and $379,618, respectively)	$	654,146,297		$	683,697,030

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Capital Appreciation Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 Daily 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 Canada Ltd. (formerly 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. Capital Appreciation Fund

  The Adviser has contractually agreed, through at least April 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 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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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, 2012, 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, 2011, the Adviser waived advisory fees of $13,265.

  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, 2011, 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, 2011, Invesco was paid $82,067 for accounting and fund administrative services and reimbursed $780,117 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	666,005,970	$	—	$	—	$	666,005,970

Invesco V.I. Capital Appreciation 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, 2011, the Fund engaged in securities purchases of $12,754,416 and securities sales of $6,320,326, which resulted in net realized gains of $529,732.

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, 2011, the Fund paid legal fees of $1,118 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2011	$	56,312,952
December 31, 2017		228,377,814
Total capital loss carryforward	$	284,690,766

*  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, 2011 was $490,409,765 and $538,735,280, 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	$	109,916,978
Aggregate unrealized (depreciation) of investment securities		(7,475,143	)
Net unrealized appreciation of investment securities	$	102,441,835
Cost of investments for tax purposes is $563,564,135.

Invesco V.I. Capital Appreciation Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		211,162		$	5,075,399			587,627		$	12,238,362
Series II		195,452			4,620,349			512,761			10,258,765
Issued as reinvestment of dividends:
Series I		—			—			170,899			3,537,619
Series II		—			—			44,903			915,129
Reacquired:
Series I		(2,212,610	)		(53,228,885	)		(4,572,413	)		(94,670,344	)
Series II		(738,245	)		(17,442,667	)		(2,127,908	)		(43,406,782	)
Net increase (decrease) in share activity		(2,544,241	)	$	(60,975,804	)		(5,384,131	)	$	(111,127,251	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 41% of the outstanding shares of the Fund. 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.

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 06/30/11	$	23.30	$	0.03	(c)	$	1.08		$	1.11		$	—		$	24.41		4.76	%	$	473,382		0.90	%(d)		0.90	%(d)		0.26	%(d)		73	%
Year ended 12/31/10		20.33		0.04	(c)		3.09			3.13			(0.16	)		23.30		15.49			498,493		0.90			0.91			0.19			56
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
Series II
Six months ended 06/30/11		22.92		0.00	(c)		1.06			1.06			—			23.98		4.62			180,764		1.15	(d)		1.15	(d)		0.01	(d)		73
Year ended 12/31/10		20.00		(0.01	)(c)		3.04			3.03			(0.11	)		22.92		15.21			185,204		1.15			1.16			(0.06	)		56
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

(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 $491,230 and $184,827 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,047.60	$	4.57	$	1,020.33	$	4.51		0.90	%
Series II		1,000.00		1,046.20		5.83		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, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s considerations of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Large-Cap Growth Funds Index and the Lipper VA Underlying Funds – Multi-Cap Growth Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of the performance universe for the one

Invesco V.I. Capital Appreciation Fund

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 performance of Series I shares of the Fund was above the performance of the Lipper VA Underlying Funds – Large-Cap Growth Funds 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 performance of Series I shares of the Fund was below the performance of the Lipper VA Underlying Funds – Multi-Cap Growth Funds Index for the one, three and five year periods. The Board noted that Invesco Advisers changed the Fund’s lead portfolio manager in March 2011, and that the investment team has a conservative, quality bias consistent with its quality oriented investment process 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. The Board noted that comparative data is 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. The Board noted that the Fund’s effective fee rate was below the effective fee rate of one mutual fund and the same as the effective fee rate of the other mutual fund. The Board also noted that Invesco Advisers sub-advises one mutual fund with investment strategies comparable to those of the Fund and that the sub-advisory fee rate is below the Fund’s effective fee rate.

  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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	8.43	%
Series II Shares	8.30
S&P 500 Index▼ (Broad Market Index)	6.01
Russell Midcap Growth Index▼ (Style-Specific Index)	9.59
Lipper VUF Mid-Cap Growth Funds Index▼ (Peer Group Index)	8.38
▼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/servicemark 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (5/1/98)	5.51	%
10 Years	4.63
5 Years	2.93
1 Year	37.56
Series II Shares
10 Years	4.37	%
5 Years	2.68
1 Year	37.29

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 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. 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.

Invesco V.I. Capital Development Fund

Schedule of Investments^(a)

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.67%
Aerospace & Defense–1.49%
BE Aerospace, Inc.(b)		94,067	$	3,838,874
Air Freight & Logistics–1.01%
UTI Worldwide, Inc.		132,381		2,606,582
Apparel Retail–1.36%
Abercrombie & Fitch Co.–Class A		52,373		3,504,801
Apparel, Accessories & Luxury Goods–2.92%
Coach, Inc.		117,356		7,502,569
Application Software–2.87%
Citrix Systems, Inc.(b)		23,550		1,884,000
Salesforce.com, Inc.(b)		17,454		2,600,297
TIBCO Software, Inc.(b)		100,320		2,911,286
				7,395,583
Asset Management & Custody Banks–1.71%
Affiliated Managers Group, Inc.(b)		43,394		4,402,321
Auto Parts & Equipment–3.42%
BorgWarner, Inc.(b)		55,749		4,503,962
Gentex Corp.		141,849		4,288,095
				8,792,057
Biotechnology–1.04%
United Therapeutics Corp.(b)		48,460		2,670,146
Broadcasting–1.54%
Discovery Communications, Inc.–Class A(b)		97,034		3,974,513
Communications Equipment–4.30%
Acme Packet, Inc.(b)		44,405		3,114,123
F5 Networks, Inc.(b)		37,881		4,176,380
Riverbed Technology, Inc.(b)		71,358		2,825,063
Sycamore Networks, Inc.		42,986		956,009
				11,071,575
Computer Storage & Peripherals–2.00%
NetApp, Inc.(b)		97,318		5,136,444
Construction & Engineering–1.30%
Foster Wheeler AG (Switzerland)(b)		109,809		3,335,997
Construction & Farm Machinery & Heavy Trucks–4.43%
AGCO Corp.(b)		73,506		3,628,256
Navistar International Corp.(b)		86,932		4,908,181
Terex Corp.(b)		100,271		2,852,710
				11,389,147
Consumer Finance–1.40%
Discover Financial Services		134,514		3,598,249
Department Stores–1.95%
Nordstrom, Inc.		106,681		5,007,606
Electrical Components & Equipment–1.36%
Cooper Industries PLC (Ireland)		58,827		3,510,207
Electronic Components–1.48%
Amphenol Corp.–Class A		70,529		3,807,861
Fertilizers & Agricultural Chemicals–0.63%
Intrepid Potash, Inc.(b)		50,212		1,631,890
Footwear–1.36%
Crocs, Inc.(b)		135,493		3,488,945
Health Care Equipment–1.14%
CareFusion Corp.(b)		107,931		2,932,485
Health Care Facilities–2.80%
Brookdale Senior Living Inc.(b)		100,007		2,425,170
Universal Health Services, Inc.–Class B		92,814		4,782,705
				7,207,875
Health Care Services–3.56%
DaVita, Inc.(b)		47,622		4,124,542
Quest Diagnostics Inc.		85,094		5,029,055
				9,153,597
Health Care Technology–1.17%
Allscripts Healthcare Solutions, Inc.(b)		155,020		3,010,488
Hotels, Resorts & Cruise Lines–2.49%
Starwood Hotels & Resorts Worldwide, Inc.		114,563		6,420,110
Human Resource & Employment Services–1.19%
Robert Half International, Inc.		113,569		3,069,770
Industrial Gases–1.68%
Airgas, Inc.		61,645		4,317,616

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

Invesco V.I. Capital Development Fund

	Shares		Value
Industrial Machinery–2.80%
Flowserve Corp.		31,186	$	3,427,029
Gardner Denver Inc.		44,931		3,776,451
				7,203,480
Internet Retail–1.06%
Netflix Inc.(b)		5,427		1,425,619
Priceline.com Inc.(b)		2,553		1,306,957
				2,732,576
IT Consulting & Other Services–3.34%
Cognizant Technology Solutions Corp.–Class A(b)		53,214		3,902,715
Teradata Corp.(b)		77,971		4,693,854
				8,596,569
Managed Health Care–2.32%
Aetna Inc.		86,740		3,824,367
Aveta, Inc. (Acquired 12/21/05–05/22/06; $3,327,813)(b)(c)		237,251		2,135,259
				5,959,626
Movies & Entertainment–1.13%
Cinemark Holdings, Inc.		140,508		2,909,921
Oil & Gas Drilling–0.38%
Patterson-UTI Energy, Inc.		30,990		979,594
Oil & Gas Equipment & Services–3.92%
Cameron International Corp.(b)		69,239		3,482,029
Oil States International, Inc.(b)		44,336		3,542,890
Superior Energy Services, Inc.(b)		82,563		3,066,390
				10,091,309
Oil & Gas Exploration & Production–4.17%
Petrohawk Energy Corp.(b)		114,708		2,829,847
Pioneer Natural Resources Co.		48,851		4,375,584
Plains Exploration & Production Co.(b)		92,302		3,518,552
				10,723,983
Pharmaceuticals–2.07%
Hospira, Inc.(b)		94,242		5,339,752
Precious Metals & Minerals–1.04%
Stillwater Mining Co.(b)		121,503		2,674,281
Railroads–0.37%
Kansas City Southern(b)		15,928		945,008
Real Estate Services–1.25%
Jones Lang LaSalle Inc.		34,166		3,221,854
Semiconductors–5.18%
Altera Corp.		123,483		5,723,437
Avago Technologies Ltd. (Singapore)		96,600		3,670,800
Cavium Inc.(b)		90,528		3,946,116
				13,340,353
Specialized Finance–1.74%
Moody’s Corp.		116,599		4,471,572
Specialty Chemicals–3.77%
Albemarle Corp.		56,360		3,900,112
LyondellBasell Industries N.V.–Class A (Netherlands)		65,030		2,504,956
Nalco Holding Co.		118,445		3,293,955
				9,699,023
Specialty Stores–3.11%
Dick’s Sporting Goods, Inc.(b)		97,791		3,760,064
Ulta Salon, Cosmetics & Fragrance, Inc.(b)		65,622		4,237,869
				7,997,933
Systems Software–1.74%
Check Point Software Technologies Ltd. (Israel)(b)		78,716		4,475,005
Trucking–2.80%
Hertz Global Holdings, Inc.(b)		231,340		3,673,679
J.B. Hunt Transport Services, Inc.		75,194		3,540,886
				7,214,565
Wireless Telecommunication Services–3.88%
NII Holdings Inc.(b)		144,525		6,124,969
SBA Communications Corp.–Class A(b)		100,893		3,853,104
				9,978,073
Total Common Stocks & Other Equity Interests (Cost $212,905,551)				251,331,785
Money Market Funds–0.92%
Liquid Assets Portfolio–Institutional Class(d)		1,190,019		1,190,019
Premier Portfolio–Institutional Class(d)		1,190,019		1,190,019
Total Money Market Funds (Cost $2,380,038)				2,380,038
TOTAL INVESTMENTS–98.59% (Cost $215,285,589)				253,711,823
OTHER ASSETS LESS LIABILITIES–1.41%				3,623,716
NET ASSETS–100.00%			$	257,335,539

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)	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, 2011 represented 0.83% of the Fund’s Net Assets.
(d)	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. Capital Development Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2011

Information Technology	20.9	%
Consumer Discretionary	20.3
Industrials	16.8
Health Care	14.1
Energy	8.5
Materials	7.1
Financials	6.1
Telecommunication Services	3.9
Money Market Funds Plus Other Assets Less Liabilities	2.3

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $212,905,551)	$	251,331,785
Investments in affiliated money market funds, at value and cost		2,380,038
Total investments, at value (Cost $215,285,589)		253,711,823
Foreign currencies, at value (Cost $99)		128
Receivable for:
Investments sold		6,385,796
Investments sold to affiliates		224,224
Fund shares sold		695,785
Dividends		91,100
Investment for trustee deferred compensation and retirement plans		52,598
Total assets		261,161,454
Liabilities:
Payable for:
Investments purchased		3,088,199
Fund shares reacquired		212,797
Accrued fees to affiliates		342,344
Accrued other operating expenses		96,242
Trustee deferred compensation and retirement plans		86,333
Total liabilities		3,825,915
Net assets applicable to shares outstanding	$	257,335,539
Net assets consist of:
Shares of beneficial interest	$	239,367,733
Undistributed net investment income (loss)		(569,158	)
Undistributed net realized gain (loss)		(19,889,366	)
Unrealized appreciation		38,426,330
	$	257,335,539

Net Assets:
Series I	$	151,924,705
Series II	$	105,410,834
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		10,450,792
Series II		7,475,559
Series I:
Net asset value per share	$	14.54
Series II:
Net asset value per share	$	14.10

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $1,374)	$	812,620
Dividends from affiliated money market funds (includes securities lending income of $8,146)		12,547
Total investment income		825,167
Expenses:
Advisory fees		838,627
Administrative services fees		306,290
Custodian fees		9,608
Distribution fees — Series II		129,613
Transfer agent fees		9,842
Trustees’ and officers’ fees and benefits		11,333
Other		46,349
Total expenses		1,351,662
Less: Fees waived		(9,198	)
Net expenses		1,342,464
Net investment income (loss)		(517,297	)
Realized and unrealized gain from:
Net realized gain from investment securities (includes net gains from securities sold to affiliates of $1,339,367)		33,544,144
Change in net unrealized appreciation (depreciation) of:
Investment securities		(20,285,589	)
Foreign currencies		(11	)
		(20,285,600	)
Net realized and unrealized gain		13,258,544
Net increase in net assets resulting from operations	$	12,741,247

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income (loss)	$	(517,297	)	$	(470,655	)
Net realized gain		33,544,144			23,142,942
Change in net unrealized appreciation (depreciation)		(20,285,600	)		5,835,983
Net increase in net assets resulting from operations		12,741,247			28,508,270
Share transactions–net:
Series I		64,486,878			(12,617,550	)
Series II		4,360,360			(16,250,389	)
Net increase (decrease) in net assets resulting from share transactions		68,847,238			(28,867,939	)
Net increase (decrease) in net assets		81,588,485			(359,669	)
Net assets:
Beginning of period		175,747,054			176,106,723
End of period (includes undistributed net investment income (loss) of $(569,158) and $(51,861), respectively)	$	257,335,539		$	175,747,054

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Capital Development Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to

Invesco V.I. Capital Development Fund

	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 effective May 2, 2011, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0	.745%
Next $100 million		0	.73%
Over $350 million		0	.625%

  Prior to May 2, 2011, the Fund paid an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

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

Invesco V.I. Capital Development Fund

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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 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 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 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 the 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 this expense limitation.

  The Adviser has contractually agreed, through at least June 30, 2012, 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 (excluding investments of cash collateral from securities lending) cash in such affiliated money market funds.

  For the six months ended June 30, 2011, the Adviser waived advisory fees of $9,198.

  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, 2011, 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, 2011, Invesco was paid $30,753 for accounting and fund administrative services and reimbursed $275,537 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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 Development Fund

  During the six months ended June 30, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	251,576,564	$	2,135,259	$	—	$	253,711,823

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, 2011, the Fund engaged in securities purchases of $5,854,700 and securities sales of $7,156,437, which resulted in net realized gains of $1,339,367.

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, 2011, the Fund paid legal fees of $760 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	26,776,236
December 31, 2017		26,458,756
Total capital loss carryforward	$	53,234,992

*  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 Development 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, 2011 was $213,153,615 and $187,029,327, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	42,295,119
Aggregate unrealized (depreciation) of investment securities		(4,067,403	)
Net unrealized appreciation of investment securities	$	38,227,716
Cost of investments for tax purposes is $215,484,107.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		3,792,020		$	54,181,166			985,705		$	11,570,756
Series II		1,505,669			20,730,262			838,860			9,669,323
Issued in connection with acquisitions:(b)
Series I		4,084,698			61,763,293			—			—
Series II		675			9,893			—			—
Reacquired:
Series I		(3,590,149	)		(51,457,581	)		(2,070,684	)		(24,188,306	)
Series II		(1,180,911	)		(16,379,795	)		(2,263,580	)		(25,919,712	)
Net increase (decrease) in share activity		4,612,002		$	68,847,238			(2,509,699	)	$	(28,867,939	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 63% of the outstanding shares of the Fund. 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)

As of the opening of business on May 2, 2011, the Fund acquired all the net assets of Invesco V.I. Dynamics Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco V.I. Dynamics Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 4,085,373 shares of the Fund for 3,130,800 shares outstanding of Invesco V.I. Dynamics Fund as of the close of business on April 29, 2011. Each class of Invesco V.I. Dynamics Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco V.I. Dynamics Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco V.I. Dynamics Fund’s net assets at that date of $61,773,186 including $13,383,842 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $228,323,159. The net assets of the Fund immediately following the acquisition were $290,096,345.

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
						Net gains																expenses			expenses
						(losses) on																to average			to average net			Ratio of net
	Net asset		Net			securities						Distributions										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			realized			value, end		Total			end of period		and/or expenses			and/or expenses			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 06/30/11	$	13.41	$	(0.02	)(c)	$	1.15		$	1.13		$	—		$	14.54		8.43	%	$	151,925		1.08	%(d)		1.09	%(d)		(0.35	)%(d)		90	%
Year ended 12/31/10		11.29		(0.02	)(c)		2.14			2.12			—			13.41		18.78			82,665		1.08			1.09			(0.14	)		79
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
Series II
Six months ended 06/30/11		13.02		(0.04	)(c)		1.12			1.08			—			14.10		8.30			105,411		1.33	(d)		1.34	(d)		(0.60	)(d)		90
Year ended 12/31/10		10.99		(0.04	)(c)		2.07			2.03			—			13.02		18.47			93,082		1.33			1.34			(0.39	)		79
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

(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. For the period ending June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $47,957,386 and sold of $21,768,039 in effect to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Dynamics Fund into the Fund.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $121,611 and $104,549 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,084.30	$	5.58	$	1,019.44	$	5.41		1.08	%
Series II		1,000.00	$	1,083.00	$	6.87	$	1,018.20	$	6.66		1.33

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s considerations of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Mid-Cap Growth Funds Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of the performance universe for the one, three and five year periods (the first quintile being the best performing

Invesco V.I. Capital Development Fund

funds and the fifth quintile being the worst performing funds). The Board noted that 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 and in 2010, in each case as a result of stock selection. The Board was advised that a new lead manager for the Fund was hired in March 2011. 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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. The Board noted that the Fund’s effective fee rate was at or above the effective fee rate of 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 similar to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients solely for investment management services. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts. These additional services include 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 for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. 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 often more comparable. The Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from those provided to institutional clients, and 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	7.44	%
Series II Shares	7.35
S&P 500 Index▼ (Broad Market Index)	6.01
Russell 1000 Index▼ (Style-Specific Index)	6.37
Lipper VUF Large-Cap Core Funds Index▼ (Peer Group Index)	4.70
▼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/servicemark 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

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 0.89% and 1.14%, respectively. The expense ratios presented

Invesco V.I. Core Equity Fund

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 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.

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (5/2/94)	7.85	%
10 Years	3.71
5 Years	5.05
1 Year	26.81
Series II Shares
10 Years	3.46	%
5 Years	4.79
1 Year	26.53

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–88.63%(a)
Aerospace & Defense–2.87%
ITT Corp.		323,651	$	19,072,754
Lockheed Martin Corp.		76,316		6,179,307
Northrop Grumman Corp.		108,144		7,499,786
Rockwell Collins, Inc.		101,222		6,244,385
				38,996,232
Air Freight & Logistics–0.61%
United Parcel Service, Inc.–Class B		113,293		8,262,459
Apparel Retail–0.45%
Prada S.p.A. (Italy)(b)		1,007,300		6,077,430
Application Software–0.65%
Adobe Systems Inc.(b)		280,101		8,809,176
Asset Management & Custody Banks–3.06%
Legg Mason, Inc.		759,980		24,896,945
Northern Trust Corp.		362,789		16,673,782
				41,570,727
Automobile Manufacturers–0.56%
General Motors Co.(b)		249,385		7,571,329
Biotechnology–1.42%
Gilead Sciences, Inc.(b)		464,808		19,247,699
Communications Equipment–4.46%
Cisco Systems, Inc.		1,352,443		21,111,635
Motorola Mobility Holdings Inc.(b)		360,852		7,953,178
Qualcomm, Inc.		553,029		31,406,517
				60,471,330
Computer & Electronics Retail–0.81%
Best Buy Co., Inc.		349,750		10,985,648
Construction Materials–0.82%
CRH PLC (Ireland)		499,857		11,072,163
Consumer Finance–2.90%
American Express Co.		760,143		39,299,393
Data Processing & Outsourced Services–0.47%
Automatic Data Processing, Inc.		121,628		6,407,363
Department Stores–1.88%
Macy’s, Inc.		874,591		25,573,041
Diversified Banks–0.66%
U.S. Bancorp		349,421		8,913,730
Drug Retail–3.08%
CVS Caremark Corp.		1,111,803		41,781,557
Electric Utilities–1.77%
Edison International		207,747		8,050,196
Exelon Corp.		373,174		15,986,774
				24,036,970
Electrical Components & Equipment–0.48%
Emerson Electric Co.		116,790		6,569,438
Electronic Manufacturing Services–1.43%
TE Connectivity Ltd. (Switzerland)		527,911		19,406,008
Environmental & Facilities Services–1.25%
Waste Management, Inc.		455,011		16,958,260
Food Retail–3.19%
Kroger Co. (The)		1,742,635		43,217,348
Gold–0.54%
Agnico-Eagle Mines Ltd. (Canada)		60,991		3,850,362
Newcrest Mining Ltd. (Australia)		87,059		3,533,607
				7,383,969
Health Care Equipment–4.68%
Baxter International Inc.		224,286		13,387,631
Boston Scientific Corp.(b)		3,576,722		24,715,149
Covidien PLC (Ireland)		361,716		19,254,143
Medtronic, Inc.		161,023		6,204,216
				63,561,139
Heavy Electrical Equipment–0.91%
ABB Ltd.–ADR (Switzerland)(b)		306,024		7,941,323
Alstom S.A. (France)		70,463		4,346,123
				12,287,446
Home Improvement Retail–1.75%
Lowe’s Cos., Inc.		1,019,442		23,763,193
Hypermarkets & Super Centers–0.74%
Wal-Mart Stores, Inc.		188,953		10,040,962
Industrial Conglomerates–3.19%
General Electric Co.		622,343		11,737,389
Koninklijke Philips Electronics N.V. (Netherlands)		582,470		14,963,728
Tyco International Ltd.		336,136		16,615,202
				43,316,319
Industrial Gases–1.46%
Air Products & Chemicals, Inc.		206,853		19,771,010

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–0.84%
Illinois Tool Works Inc.		201,549	$	11,385,503
Insurance Brokers–1.13%
Marsh & McLennan Cos., Inc.		493,879		15,404,086
Integrated Oil & Gas–1.14%
ConocoPhillips		107,078		8,051,195
Petroleo Brasileiro S.A.–ADR (Brazil)		218,382		7,394,414
				15,445,609
Investment Banking & Brokerage–0.44%
Charles Schwab Corp. (The)		361,353		5,944,257
Life Sciences Tools & Services–2.96%
Agilent Technologies, Inc.(b)		376,091		19,222,011
Thermo Fisher Scientific, Inc.(b)		324,662		20,904,986
				40,126,997
Managed Health Care–1.64%
WellPoint, Inc.		282,106		22,221,490
Oil & Gas Equipment & Services–6.45%
Baker Hughes Inc.		468,978		34,029,044
Cameron International Corp.(b)		130,784		6,577,127
Schlumberger Ltd.		180,686		15,611,270
Tenaris S.A.–ADR (Argentina)		193,087		8,829,869
Weatherford International Ltd.(b)		1,194,683		22,400,306
				87,447,616
Oil & Gas Exploration & Production–3.99%
Apache Corp.		245,575		30,301,499
Devon Energy Corp.		131,607		10,371,948
Southwestern Energy Co.(b)		315,444		13,526,239
				54,199,686
Oil & Gas Refining & Marketing–1.11%
Valero Energy Corp.		589,545		15,074,666
Pharmaceuticals–5.96%
Merck & Co., Inc.		127,184		4,488,323
Pfizer Inc.		936,470		19,291,282
Roche Holding AG (Switzerland)		183,484		30,711,633
Teva Pharmaceutical Industries Ltd.–ADR (Israel)		545,900		26,323,298
				80,814,536
Property & Casualty Insurance–5.21%
Berkshire Hathaway, Inc.–Class A(b)		254		29,490,670
Progressive Corp. (The)		1,924,873		41,153,785
				70,644,455
Railroads–1.45%
Union Pacific Corp.		188,977		19,729,199
Semiconductors–1.57%
Intel Corp.		268,283		5,945,151
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)		6,047,823		15,307,232
				21,252,383
Specialty Stores–0.72%
Staples, Inc.		616,594		9,742,185
Systems Software–5.97%
CA, Inc.		330,324		7,544,600
Microsoft Corp.		1,283,715		33,376,590
Symantec Corp.(b)		2,033,847		40,107,463
				81,028,653
Wireless Telecommunication Services–1.96%
Vodafone Group PLC (United Kingdom)		9,983,449		26,534,797
Total Common Stocks & Other Equity Interests (Cost $997,733,236)				1,202,347,457
Money Market Funds–10.47%
Liquid Assets Portfolio–Institutional Class(c)		71,010,917		71,010,917
Premier Portfolio–Institutional Class(c)		71,010,918		71,010,918
Total Money Market Funds (Cost $142,021,835)				142,021,835
TOTAL INVESTMENTS–99.10% (Cost $1,139,755,071)				1,344,369,292
OTHER ASSETS LESS LIABILITIES–0.90%				12,205,199
NET ASSETS–100.00%			$	1,356,574,491

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, 2011

Health Care	16.7	%
Information Technology	14.5
Financials	13.4
Energy	12.7
Industrials	11.6
Consumer Staples	7.0
Consumer Discretionary	6.2
Materials	2.8
Telecommunication Services	1.9
Utilities	1.8
Money Market Funds Plus Other Assets Less Liabilities	11.4

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $997,733,236)	$	1,202,347,457
Investments in affiliated money market funds, at value and cost		142,021,835
Total investments, at value (Cost $1,139,755,071)		1,344,369,292
Receivable for:
Investments sold		22,710,581
Fund shares sold		142,190
Dividends		3,606,445
Foreign currency contracts outstanding		17,063
Investment for trustee deferred compensation and retirement plans		152,256
Other assets		191
Total assets		1,370,998,018
Liabilities:
Payable for:
Investments purchased		9,370,302
Fund shares reacquired		2,819,703
Amount due custodian — foreign (Cost $48,990)		126,446
Accrued fees to affiliates		1,656,455
Accrued other operating expenses		14,909
Trustee deferred compensation and retirement plans		435,712
Total liabilities		14,423,527
Net assets applicable to shares outstanding	$	1,356,574,491
Net assets consist of:
Shares of beneficial interest	$	1,299,855,603
Undistributed net investment income		18,303,842
Undistributed net realized gain (loss)		(166,232,722	)
Unrealized appreciation		204,647,768
	$	1,356,574,491
Net Assets:
Series I	$	1,318,423,416
Series II	$	38,151,075
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		45,397,238
Series II		1,325,319
Series I:
Net asset value per share	$	29.04
Series II:
Net asset value per share	$	28.79

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $406,164)	$	12,789,488
Dividends from affiliated money market funds (includes securities lending income of $3,394)		84,998
Interest		190,736
Total investment income		13,065,222
Expenses:
Advisory fees		4,193,446
Administrative services fees		1,800,162
Custodian fees		7,937
Distribution fees — Series II		43,481
Transfer agent fees		6,113
Trustees’ and officers’ fees and benefits		30,313
Other		8,975
Total expenses		6,090,427
Less: fees waived		(110,290	)
Net expenses		5,980,137
Net investment income		7,085,085
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $37,338)		52,319,208
Foreign currencies		(3,617	)
Foreign currency contracts		(876,150	)
Option contracts written		51,915
		51,491,356
Change in net unrealized appreciation (depreciation) of:
Investment securities		41,424,349
Foreign currencies		(24,993	)
Foreign currency contracts		50,646
		41,450,002
Net realized and unrealized gain		92,941,358
Net increase in net assets resulting from operations	$	100,026,443

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	7,085,085		$	12,009,590
Net realized gain		51,491,356			45,174,795
Change in net unrealized appreciation		41,450,002			65,458,831
Net increase in net assets resulting from operations		100,026,443			122,643,216
Distributions to shareholders from net investment income:
Series I		—			(12,902,647	)
Series II		—			(280,002	)
Total distributions from net investment income		—			(13,182,649	)
Share transactions–net:
Series I		(124,738,973	)		(217,887,519	)
Series II		604,237			(1,987,933	)
Net increase (decrease) in net assets resulting from share transactions		(124,134,736	)		(219,875,452	)
Net increase (decrease) in net assets		(24,108,293	)		(110,414,885	)
Net assets:
Beginning of period		1,380,682,784			1,491,097,669
End of period (includes undistributed net investment income of $18,303,842 and $11,218,757, respectively)	$	1,356,574,491		$	1,380,682,784

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Core Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.
L.	Call Options Written and Purchased — The Fund may write and/or buy call options. A call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.
	When the Fund writes a call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written 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 and unrealized gains and losses on these contracts are included in the Statement of Operation. 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.
	When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized

Invesco V.I. Core Equity Fund

gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

M.

Put Options Purchased — The Fund may purchase put options including options on securities indexes and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		0	.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 Canada Ltd. (formerly 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, 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 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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $110,290.

  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, 2011, 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, 2011, Invesco was paid $163,332 for accounting and fund administrative services and reimbursed $1,636,830 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

Invesco V.I. Core Equity Fund

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	1,298,993,656	$	45,375,636	$	—	$	1,344,369,292
Foreign Currency Contracts*		—		17,063		—		17,063
Total Investments	$	1,298,993,656	$	45,392,699	$	—	$	1,344,386,355

*  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, 2011:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Currency risk
Foreign currency contracts(a)	$	17,231	$	(168	)

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

Effect of Derivative Instruments for the six months ended June 30, 2011

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*			Options*
Realized Gain (Loss)
Currency risk	$	(876,150	)	$	—
Equity risk		—			51,915
Change in Unrealized Appreciation (Depreciation)
Currency risk	$	50,646		$	—
Equity risk		—			—
Total	$	(825,504	)	$	51,915

*  The average value of foreign currency contracts and options outstanding during the period was $14,667,108 and $12,279, respectively.

Invesco V.I. Core Equity Fund

Open Foreign Currency Contracts
Settlement		Contract to							Unrealized
Date	Counterparty	Deliver			Receive		Value		Appreciation
7/1/2011	UBSX NA		USD	531,308	EUR	370,146	$	536,934	$	5,626
7/1/2011	State Street CA		USD	1,992,392	EUR	1,381,495		2,003,997		11,605
									$	17,231
									Unrealized
Settlement		Contract to							Appreciation
Date	Counterparty	Deliver			Receive		Value		(Depreciation)
7/5/2011	Citi Bank Capital		USD	243,241	EUR	167,568	$	243,074	$	(168	)
Total open foreign currency contracts									$	17,063

Currency Abbreviations:
EUR	– Euro
USD	– U.S. Dollar

Transactions During the Period
	Call Option Contracts
	Number of			Premiums
	Contracts			Received
Beginning of period		—		$	—
Written		1,889			51,915
Closed		—			—
Expired		(1,889	)		(51,915	)
End of period		—		$	—

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, 2011, the Fund engaged in securities purchases of $0 and securities sales of $2,272,993, which resulted in net realized gains of $37,338.

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, 2011, the Fund paid legal fees of $1,623 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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.

Invesco V.I. Core Equity Fund

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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 $210,287,573 of capital loss carryforward in the fiscal year ending December 31, 2011.

  The Fund had a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2011	$	21,217,854
December 31, 2017		189,069,719
Total capital loss carryforward	$	210,287,573

*  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, 2011 was $184,393,197 and $350,251,391, 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	$	238,421,566
Aggregate unrealized (depreciation) of investment securities		(41,294,496	)
Net unrealized appreciation of investment securities	$	197,127,070
Cost of investments for tax purposes is $1,147,242,222.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended
	June 30, 2011(a)						Year ended December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		397,101		$	11,310,665			1,698,343		$	42,098,514
Series II		255,210			7,221,167			351,173			8,756,793
Issued as reinvestment of dividends:
Series I		-0-			-0-			519,430			12,902,647
Series II		-0-			-0-			11,350			280,003
Reacquired:
Series I		(4,784,149	)		(136,049,638	)		(10,899,313	)		(272,888,680	)
Series II		(235,582	)		(6,616,930	)		(441,967	)		(11,024,729	)
Net increase (decrease) in share activity		(4,367,420	)	$	(124,134,736	)		(8,760,984	)	$	(219,875,452	)

^(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.

Invesco V.I. 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)																			to average			to average net			Ratio of net
	Net asset				on 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			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			Distributions			of period		return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	27.03	$	0.15	$	1.86	(e)	$	2.01		$	—		$	—		$	29.04		7.44	%(e)	$	1,318,423		0.86	%(d)		0.88	%(d)		1.04	%(d)		15	%
Year ended 12/31/10		24.92		0.22		2.14			2.36			(0.25	)		(0.25	)		27.03		9.56			1,345,658		0.87			0.89			0.87			47
Year ended 12/31/09		19.75		0.19		5.39			5.58			(0.41	)		(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	)		(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	)		(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	)		(0.15	)		27.22		16.70			2,699,252		0.89			0.89			1.35			45
Series II
Six months ended 06/30/11		26.82		0.11		1.86	(e)		1.97			—			—			28.79		7.35	(e)		38,151		1.11	(d)		1.13	(d)		0.79	(d)		15
Year ended 12/31/10		24.75		0.15		2.12			2.27			(0.20	)		(0.20	)		26.82		9.25			35,025		1.12			1.14			0.62			47
Year ended 12/31/09		19.62		0.14		5.34			5.48			(0.35	)		(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	)		(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	)		(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	)		(0.14	)		27.02		16.42			39,729		1.14			1.14			1.10			45

(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) of $1,353,493 and $35,073 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 on securities (both realized and unrealized) per share for the six months ended June 30, 2011 would have been $0.07 lower for Series I and Series II and total returns would have been lower.

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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,074.40	$	4.42	$	1,020.53	$	4.31		0.86	%
Series II		1,000.00		1,073.50		5.71		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, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Large-Cap Core Funds Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of the 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 performance of Series I shares of the Fund was below the

Invesco V.I. Core Equity Fund

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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was the same the as the effective fee rate of the other mutual fund managed by Invesco Advisers with comparable investment strategies.

  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 solely for investment management services. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts. These additional services include 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 for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. 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 often more comparable. The Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from those provided to institutional clients, and 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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	3.44	%
Series II Shares	3.30
Barclays Capital U.S. Aggregate Index▼ (Broad Market Index)	2.72
Barclays Capital U.S. Credit Index▼ (Style-Specific Index)	3.41
Lipper VUF Corporate Debt BBB-Rated Funds Index▼ (Peer Group Index)	3.35
▼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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (5/5/93)	4.15	%
10 Years	3.41
5 Years	2.67
1 Year	7.96
Series II Shares
10 Years	3.15	%
5 Years	2.41
1 Year	7.62

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

     Had the advisor 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, 2012. See current prospectus for more information.

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 1.36% and 1.61%, 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,

Invesco V.I. Diversified Income Fund

Schedule of Investments^(a)

June 30, 2011

(Unaudited)

	Principal
	Amount		Value
U.S. Dollar Denominated Bonds & Notes–80.56%
Aerospace & Defense–0.43%
Alliant Techsystems Inc., Sr. Unsec. Gtd. Sub. Notes, 6.88%, 09/15/20	$	5,000	$	5,213
BE Aerospace, Inc., Sr. Unsec. Notes, 8.50%, 07/01/18		25,000		27,219
Bombardier Inc. (Canada), Sr. Notes, 7.50%, 03/15/18(b)		10,000		11,237
7.75%, 03/15/20(b)		15,000		16,950
Hexcel Corp., Sr. Unsec. Sub. Global Notes, 6.75%, 02/01/15		2,000		2,050
Huntington Ingalls Industries Inc., Sr. Unsec. Gtd. Notes, 6.88%, 03/15/18(b)		5,000		5,138
7.13%, 03/15/21(b)		10,000		10,287
Spirit Aerosystems Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 12/15/20		10,000		10,225
Triumph Group, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 11/15/17		10,000		10,600
				98,919
Agricultural Products–0.14%
Corn Products International, Inc., Sr. Unsec. Notes, 6.63%, 04/15/37		30,000		32,675
Airlines–2.64%
American Airlines Inc., Sr. Sec. Gtd. Notes, 7.50%, 03/15/16(b)		5,000		4,913
American Airlines Pass Through Trust,
Series 2009-1A, Sec. Pass Through Ctfs., 10.38%, 07/02/19		44,079		51,076
Series 2011-1, Class B, Sec. Gtd. Pass Through Ctfs., 7.00%, 01/31/18(b)		85,000		80,325
Continental Airlines Inc.,
Series 2007-1, Class C, Sec. Sub. Global Pass Through Ctfs., 7.34%, 04/19/14		5,928		5,943
Series 2009-1, Sec. Pass Through Ctfs., 9.00%, 07/08/16		197,268		226,365
Series 2009-2, Class B, Sec. Global Pass Through Ctfs., 9.25%, 05/10/17		13,416		14,087
Delta Airlines, Inc.,
Sec. Notes, 12.25%, 03/15/15(b)		5,000		5,587
Sr. Sec. Notes, 9.50%, 09/15/14(b)		9,000		9,630
Series 2002-1, Class C, Sec. Pass Through Ctfs., 7.78%, 01/02/12		460		457
Series 2009-1, Class A, Sr. Sec. Pass Through Ctfs., 7.75%, 12/17/19		42,067		46,011
Series 2010-1, Class B, Sec. Pass Through Ctfs., 6.38%, 01/02/16(b)		5,000		4,850
Series 2010-2, Class A, Sec. Pass Through Ctfs., 4.95%, 05/23/19		59,141		59,215
Series 2010-2, Class B, Sec. Pass Through Ctfs., 6.75%, 11/23/15		5,000		4,750
Series 2011-1, Class A, Sec. Pass Through Ctfs., 5.30%, 04/15/19		15,000		15,056
UAL Corp.,
Series 2009-1, Sr. Sec. Gtd. Global Pass Through Ctfs., 10.40%, 11/01/16		45,456		51,820
Series 2009-2A, Sec. Gtd. Global Pass Through Ctfs., 9.75%, 01/15/17		27,686		31,700
				611,785
Alternative Carriers–0.16%
Cogent Communications Group, Inc., Sr. Sec. Gtd. Notes, 8.38%, 02/15/18(b)		10,000		10,325
Level 3 Communications Inc., Sr. Unsec. Notes, 11.88%, 02/01/19(b)		10,000		10,950
Level 3 Financing Inc.,
Sr. Unsec. Gtd. Global Notes, 9.25%, 11/01/14		6,000		6,180
Sr. Unsec. Gtd. Notes, 9.38%, 04/01/19(b)		10,000		10,475
				37,930
Aluminum–0.11%
Century Aluminum Co., Sr. Sec. Gtd. Sub. Notes, 8.00%, 05/15/14		25,000		25,828
Apparel Retail–0.43%
Express LLC/Express Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/01/18		7,000		7,613
Gap, Inc. (The), Sr. Unsec. Notes, 5.95%, 04/12/21		35,000		33,906
Limited Brands Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 06/15/19		50,000		57,125
				98,644
Apparel, Accessories & Luxury Goods–0.15%
Hanesbrands Inc., Sr. Unsec. Gtd. Global Notes, 6.38%, 12/15/20		10,000		9,725
Jones Group Inc. (The), Sr. Unsec. Notes, 6.88%, 03/15/19		15,000		14,531
Phillips-Van Heusen Corp., Sr. Unsec. Notes, 7.38%, 05/15/20		10,000		10,725
				34,981
Asset Management & Custody Banks–0.03%
First Data Corp., Sr. Sec. Gtd. Notes, 7.38%, 06/15/19(b)		7,000		7,088
Auto Parts & Equipment–0.11%
Dana Holding Corp., Sr. Unsec. Notes, 6.50%, 02/15/19		5,000		4,988
6.75%, 02/15/21		5,000		4,975

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Auto Parts & Equipment–(continued)
Tenneco Inc., Sr. Gtd. Global Notes, 6.88%, 12/15/20	$	15,000	$	15,300
				25,263
Automotive Retail–1.64%
Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20		100,000		106,420
AutoZone Inc., Sr. Unsec. Notes, 5.75%, 01/15/15		210,000		234,057
O’Reilly Automotive, Inc., Sr. Unsec. Gtd. Notes, 4.88%, 01/14/21		40,000		40,261
				380,738
Biotechnology–0.02%
STHI Holding Corp., Sec. Gtd. Notes, 8.00%, 03/15/18(b)		5,000		5,100
Brewers–0.97%
Anheuser-Busch InBev Worldwide Inc., Sr. Unsec. Gtd. Global Notes, 4.13%, 01/15/15		90,000		96,719
2.88%, 02/15/16		125,000		127,772
				224,491
Broadcasting–1.77%
Allbritton Communications Co., Sr. Unsec. Global Notes, 8.00%, 05/15/18		20,000		20,400
COX Communications Inc., Sr. Unsec. Bonds, 8.38%, 03/01/39(b)		75,000		98,400
Sr. Unsec. Global Notes, 5.45%, 12/15/14		95,000		106,014
Sr. Unsec. Notes, 9.38%, 01/15/19(b)		140,000		185,633
				410,447
Building Products–0.44%
Associated Materials LLC, Sr. Sec. Gtd. Notes, 9.13%, 11/01/17(b)		15,000		15,000
Building Materials Corp. of America, Sr. Sec. Gtd. Notes, 7.50%, 03/15/20(b)		25,000		26,281
Gibraltar Industries Inc.–Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 12/01/15		15,000		15,206
Ply Gem Industries Inc., Sr. Sec. Gtd. Notes, 8.25%, 02/15/18(b)		15,000		14,513
Roofing Supply Group LLC/Roofing Supply Finance Inc., Sr. Sec. Notes, 8.63%, 12/01/17(b)		15,000		15,112
USG Corp., Sr. Unsec. Gtd. Notes, 9.75%, 08/01/14(b)		15,000		15,825
				101,937
Cable & Satellite–1.80%
Cablevision Systems Corp., Sr. Unsec. Global Notes, 8.63%, 09/15/17		25,000		27,156
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 05/15/16		350,000		380,844
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.50%, 04/01/21(b)		10,000		9,975
				417,975
Casinos & Gaming–0.67%
Ameristar Casinos Inc., Sr. Unsec. Gtd. Notes, 7.50%, 04/15/21(b)		7,000		7,245
Caesars Entertainment Operating Co. Inc., Sec. Global Notes, 12.75%, 04/15/18		10,000		10,025
Sec. Gtd. Global Notes, 10.00%, 12/15/18		5,000		4,538
CityCenter Holdings LLC/CityCenter Finance Corp., Sec. Gtd. PIK Notes, 10.75%, 01/15/17(b)		5,000		5,431
Great Canadian Gaming Corp. (Canada), Sr. Unsec. Gtd. Sub. Notes, 7.25%, 02/15/15(b)		25,000		25,500
MGM Resorts International, Sr. Unsec. Gtd. Global Notes, 6.63%, 07/15/15		25,000		23,750
Sr. Unsec. Gtd. Notes, 10.00%, 11/01/16(b)		5,000		5,337
Pinnacle Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 08/01/17		30,000		32,250
Snoqualmie Entertainment Authority, Sr. Sec. Notes, 9.13%, 02/01/15(b)		15,000		14,925
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sr. Sec. Gtd. First Mortgage Global Notes, 7.88%, 11/01/17		25,000		27,430
				156,431
Coal & Consumable Fuels–0.14%
CONSOL Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.00%, 04/01/17		15,000		16,387
8.25%, 04/01/20		15,000		16,350
				32,737
Communications Equipment–0.02%
Avaya Inc., Sr. Sec. Gtd. Notes, 7.00%, 04/01/19(b)		5,000		4,750
Computer & Electronics Retail–0.04%
Rent-A-Center Inc., Sr. Unsec. Gtd Global Notes, 6.63%, 11/15/20		10,000		10,000
Computer Storage & Peripherals–0.05%
Seagate HDD Cayman (Cayman Islands), Sr. Unsec. Gtd. Notes, 7.75%, 12/15/18(b)		10,000		10,475
Construction & Engineering–0.19%
Dycom Investments Inc., Sr. Sub. Notes, 7.13%, 01/15/21(b)		5,000		5,125
Great Lakes Dredge & Dock Corp., Sr. Unsec. Gtd. Notes, 7.38%, 02/01/19(b)		5,000		4,963
MasTec, Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 02/01/17		10,000		10,250
Tutor Perini Corp., Sr. Unsec. Gtd. Global Notes, 7.63%, 11/01/18		25,000		24,062
				44,400

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–0.30%
CNH America LLC, Sr. Unsec. Gtd. Notes, 7.25%, 01/15/16	$	25,000	$	27,000
Manitowoc Co. Inc. (The), Sr. Unsec. Gtd. Notes, 8.50%, 11/01/20		5,000		5,375
Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21		10,000		10,900
Titan International Inc., Sr. Sec. Gtd. Notes, 7.88%, 10/01/17(b)		25,000		26,312
				69,587
Construction Materials–0.43%
CRH America Inc., Sr. Unsec. Gtd. Notes, 4.13%, 01/15/16		80,000		81,498
Texas Industries Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 08/15/20		20,000		19,400
				100,898
Consumer Finance–0.95%
Ally Financial, Inc., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/01/31		50,000		54,375
Ford Motor Credit Co. LLC, Sr. Unsec. Notes, 8.00%, 12/15/16		20,000		22,650
National Money Mart Co. (Canada), Sr. Unsec. Gtd. Global Notes, 10.38%, 12/15/16		25,000		27,562
SLM Corp.,
Sr. Medium-Term Global Notes, 6.25%, 01/25/16		75,000		78,535
Series A, Sr. Unsec. Medium-Term Notes, 5.00%, 10/01/13		35,000		36,437
				219,559
Department Stores–0.10%
Sears Holdings Corp., Sec. Gtd. Notes, 6.63%, 10/15/18(b)		25,000		23,063
Distillers & Vintners–0.05%
Constellation Brands Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/15/17		10,000		10,900
Diversified Banks–6.41%
Abbey National Treasury Services PLC (United Kingdom), Sr. Gtd. Global Notes, 2.88%, 04/25/14		25,000		25,086
ABN Amro Bank N.V. (Netherlands), Sr. Unsec. Notes, 3.00%, 01/31/14(b)		200,000		201,664
Bank of Nova Scotia (Canada), Sr. Unsec. Global Notes, 2.38%, 12/17/13		70,000		71,906
Credit Suisse AG (Switzerland), Sub. Global Notes, 5.40%, 01/14/20		115,000		116,153
HSBC Bank PLC (United Kingdom), Sr. Notes, 4.13%, 08/12/20(b)		235,000		228,360
ING Bank N.V. (Netherlands), Unsec. Sub. Notes, 5.13%, 05/01/15(b)		100,000		105,427
Lloyds TSB Bank PLC (United Kingdom),
Sr. Unsec. Gtd. Global Notes, 4.88%, 01/21/16		85,000		86,921
Sr. Unsec. Gtd. Medium-Term Notes, 4.38%, 01/12/15(b)		145,000		147,950
Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15		130,000		134,995
Series 2, Sr. Unsec. Gtd. Global Notes, 3.40%, 08/23/13		75,000		76,810
Societe Generale (France), Sr. Unsec. Notes, 2.50%, 01/15/14(b)		130,000		130,184
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 5.50%, 11/18/14(b)		55,000		60,570
VTB Bank OJSC Via VTB Capital S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 6.55%, 10/13/20(b)		100,000		101,625
				1,487,651
Diversified Capital Markets–0.47%
UBS AG (Switzerland), Sr. Unsec. Medium-Term Global Notes, 5.75%, 04/25/18		100,000		108,759
Diversified Chemicals–0.32%
Dow Chemical Co. (The), Sr. Unsec. Global Notes, 4.25%, 11/15/20		75,000		73,813
Diversified Metals & Mining–0.19%
Freeport-McMoRan Copper & Gold Inc., Sr. Unsec. Notes, 8.38%, 04/01/17		35,000		38,259
Midwest Vanadium Pty Ltd. (Australia), Sr. Sec. Gtd. Notes, 11.50%, 02/15/18(b)		3,000		2,998
Mirabela Nickel Ltd. (Australia), Sr. Unsec. Gtd. Notes, 8.75%, 04/15/18(b)		2,000		1,979
				43,236
Diversified REIT’s–0.79%
Dexus Diversified /Dexus Office Trust (Australia), Sr. Unsec. Gtd. Notes, 5.60%, 03/15/21(b)		180,000		183,782
Diversified Support Services–0.72%
Cintas Corp. No. 2, Sr. Unsec. Gtd. Notes, 4.30%, 06/01/21		140,000		140,427
International Lease Finance Corp., Sr. Unsec. Global Notes, 8.63%, 09/15/15		10,000		10,894
8.75%, 03/15/17		15,000		16,453
				167,774
Drug Retail–0.78%
CVS Pass Through Trust, Sr. Sec. Gtd. Notes, 5.77%, 01/10/33(b)		173,333		180,025
Electric Utilities–2.66%
DCP Midstream LLC, Sr. Unsec. Notes, 9.70%, 12/01/13(b)		100,000		117,059
9.75%, 03/15/19(b)		55,000		71,979

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)
Enel Finance International N.V. (Luxembourg), Sr. Unsec. Gtd. Notes, 3.88%, 10/07/14(b)	$	100,000	$	103,395
LSP Energy L.P./LSP Batesville Funding Corp.–Series D, Sr. Sec. Bonds, 8.16%, 07/15/25		25,000		18,250
Ohio Power Co.–Series M, Sr. Unsec. Notes, 5.38%, 10/01/21		180,000		194,569
PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39		45,000		50,843
Virginia Electric & Power Co., Sr. Unsec. Notes, 5.00%, 06/30/19		55,000		59,766
				615,861
Electrical Components & Equipment–0.14%
Belden Inc., Sr. Gtd. Sub. Global Notes, 9.25%, 06/15/19		25,000		28,000
Polypore International Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 11/15/17		5,000		5,312
				33,312
Environmental & Facilities Services–0.66%
Clean Harbors Inc., Sr. Sec. Gtd. Notes, 7.63%, 08/15/16(b)		10,000		10,700
Waste Management, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/14		65,000		70,767
4.60%, 03/01/21		70,000		71,581
				153,048
Forest Products–0.04%
Millar Western Forest Products Ltd. (Canada), Sr. Notes, 8.50%, 04/01/21(b)		10,000		9,063
Gas Utilities–0.13%
Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Notes, 6.50%, 05/01/21(b)		10,000		9,450
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20		20,000		20,900
				30,350
Gold–1.11%
Barrick Gold Corp. (Canada), Sr. Unsec. Notes, 2.90%, 05/30/16(b)		65,000		65,338
Gold Fields Orogen Holding BVI Ltd. (Mali), Sr. Unsec. Gtd. Notes, 4.88%, 10/07/20(b)		200,000		191,001
				256,339
Health Care Equipment–0.05%
DJO Finance LLC/Corp.,
Sr. Unsec. Gtd. Notes, 7.75%, 04/15/18(b)		2,000		2,025
Sr. Unsec. Gtd. Sub. Notes, 9.75%, 10/15/17(b)		10,000		10,125
				12,150
Health Care Facilities–0.32%
HCA, Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 02/15/20		13,000		14,203
Healthsouth Corp., Sr. Unsec. Gtd. Notes,
7.25%, 10/01/18		15,000		15,712
7.75%, 09/15/22		15,000		15,787
Tenet Healthcare Corp., Sr. Unsec. Global Notes, 9.25%, 02/01/15		25,000		27,469
				73,171
Health Care Services–1.68%
Express Scripts Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 06/15/14		125,000		140,399
Highmark, Inc., Sr. Unsec. Notes,
4.75%, 05/15/21(b)		40,000		40,278
6.13%, 05/15/41(b)		35,000		34,724
Medco Health Solutions Inc., Sr. Unsec. Notes, 2.75%, 09/15/15		35,000		35,249
Orlando Lutheran Towers Inc., Putable Bonds,
7.75%, 07/01/11		15,000		15,000
8.00%, 07/01/17		125,000		125,103
				390,753
Health Care Technology–0.07%
MedAssets Inc., Sr. Unsec. Gtd. Notes, 8.00%, 11/15/18(b)		15,000		15,150
Home Furnishings–0.06%
American Standard Americas, Sr. Sec. Notes, 10.75%, 01/15/16(b)		15,000		14,625
Home Improvement Retail–0.28%
Lowe’s Cos. Inc., Sr. Unsec. Notes, 3.75%, 04/15/21		65,000		63,998
Homebuilding–0.08%
Beazer Homes USA Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 07/15/15		5,000		4,375
8.13%, 06/15/16		15,000		13,144
				17,519
Hotels, Resorts & Cruise Lines–1.63%
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15(b)		165,000		174,308
Royal Caribbean Cruises Ltd., Sr. Unsec. Global Notes, 7.50%, 10/15/27		25,000		25,438
Starwood Hotels & Resorts Worldwide, Inc., Sr. Unsec. Notes, 7.15%, 12/01/19		15,000		16,800
Wyndham Worldwide Corp., Sr. Unsec. Notes,
7.38%, 03/01/20		55,000		61,084
5.63%, 03/01/21		100,000		100,625
				378,255

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Household Products–0.11%
Central Garden & Pet Co., Sr. Gtd. Sub. Notes, 8.25%, 03/01/18	$	25,000	$	25,937
Housewares & Specialties–0.23%
Tupperware Brands Corp., Sr. Unsec. Gtd. Notes, 4.75%, 06/01/21(b)		55,000		54,106
Independent Power Producers & Energy Traders–0.12%
AES Corp. (The), Sr. Unsec. Global Notes, 8.00%, 10/15/17		25,000		26,750
Industrial Conglomerates–2.03%
Hutchison Whampoa International Ltd. (Cayman Islands),
Sr. Unsec. Gtd. Notes, 7.63%, 04/09/19(b)		130,000		154,718
Unsec. Gtd. Notes, 5.75%, 09/11/19(b)		100,000		106,962
Unsec. Gtd. Sub. Notes, 6.00%(b)(c)		135,000		138,900
NBC Universal Media LLC, Sr. Unsec. Notes,
2.10%, 04/01/14(b)		35,000		35,517
5.95%, 04/01/41(b)		35,000		35,319
				471,416
Industrial Machinery–0.67%
Cleaver-Brooks Inc., Sr. Sec. Notes, 12.25%, 05/01/16(b)		10,000		10,487
Pentair, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 05/15/21		145,000		145,442
				155,929
Industrial REIT’s–0.07%
DuPont Fabros Technology L.P., Sr. Unsec. Gtd. Global Notes, 8.50%, 12/15/17		15,000		16,388
Insurance Brokers–0.55%
Marsh & McLennan Cos. Inc., Sr. Unsec. Notes, 9.25%, 04/15/19		100,000		127,649
Integrated Oil & Gas–0.42%
Marathon Petroleum Corp., Sr. Unsec. Gtd. Notes, 6.50%, 03/01/41(b)		55,000		57,342
Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 5.38%, 01/27/21		40,000		41,200
				98,542
Integrated Telecommunication Services–1.62%
AT&T Inc., Sr. Unsec. Global Notes,
2.50%, 08/15/15		60,000		60,870
2.95%, 05/15/16		35,000		35,594
4.45%, 05/15/21		15,000		15,225
Integra Telecom Holdings, Inc., Sr. Sec. Notes, 10.75%, 04/15/16(b)		5,000		5,087
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.25%, 04/01/19(b)		10,000		9,975
Telefonica Emisiones SAU (Spain), Sr. Unsec. Gtd. Global Notes, 5.46%, 02/16/21		90,000		91,703
Telemar Norte Leste S.A. (Brazil), Sr. Unsec. Notes, 5.50%, 10/23/20(b)		161,000		158,212
				376,666
Internet Retail–0.73%
Expedia Inc., Sr. Unsec. Gtd. Global Notes, 5.95%, 08/15/20		165,000		160,893
Travelport LLC, Sr. Unsec. Gtd. Global Notes, 9.88%, 09/01/14		10,000		9,300
				170,193
Internet Software & Services–0.07%
Equinix Inc., Sr. Unsec. Notes, 8.13%, 03/01/18		15,000		16,425
Investment Banking & Brokerage–6.56%
Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19(b)		160,000		175,262
Goldman Sachs Group Inc. (The), Sr. Global Notes, 3.70%, 08/01/15		45,000		45,924
Sr. Unsec. Global Notes,
5.13%, 01/15/15		50,000		53,575
3.63%, 02/07/16		30,000		30,319
Unsec. Sub. Global Notes, 6.75%, 10/01/37		140,000		140,175
Jefferies Group Inc., Sr. Unsec. Notes, 6.45%, 06/08/27		375,000		371,734
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes,
7.30%, 08/01/14(b)		110,000		123,032
6.00%, 01/14/20(b)		105,000		108,370
Morgan Stanley,
Sr. Unsec. Medium-Term Global Notes, 6.00%, 05/13/14		230,000		251,362
Series F, Sr. Unsec. Medium-Term Global Notes, 5.63%, 09/23/19		130,000		133,805
Raymond James Financial, Inc., Sr. Unsec. Notes, 4.25%, 04/15/16		35,000		36,106
Schwab Capital Trust I, Jr. Unsec. Gtd. Sub. Notes, 7.50%, 11/15/37		50,000		51,436
				1,521,100
Leisure Facilities–0.02%
Speedway Motorsports Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 02/01/19		5,000		5,013
Life & Health Insurance–2.11%
MetLife Inc., Sr. Unsec. Notes, 6.75%, 06/01/16		55,000		63,986
Nationwide Financial Services, Sr. Unsec. Notes, 5.38%, 03/25/21(b)		165,000		166,434

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. Global Notes, 8.88%, 06/15/38	$	130,000	$	152,749
Series D, Sr. Unsec. Medium-Term Notes, 7.38%, 06/15/19		90,000		106,627
				489,796
Life Sciences Tools & Services–0.67%
Life Technologies Corp., Sr. Notes, 6.00%, 03/01/20		120,000		130,747
Patheon Inc. (Canada), Sr. Sec. Gtd. Notes, 8.63%, 04/15/17(b)		25,000		25,375
				156,122
Managed Health Care–0.86%
CIGNA Corp., Sr. Unsec. Notes,
4.50%, 03/15/21		45,000		45,068
5.88%, 03/15/41		35,000		34,713
UnitedHealth Group Inc., Sr. Unsec. Notes,
3.88%, 10/15/20		60,000		58,971
5.95%, 02/15/41		60,000		61,565
				200,317
Metal & Glass Containers–0.02%
Ball Corp., Sr. Unsec. Gtd. Notes, 5.75%, 05/15/21		5,000		5,038
Mortgage Backed Securities–0.43%
U.S. Bank N.A., Sr. Unsec. Medium-Term Notes, 5.92%, 05/25/12		95,080		99,230
Movies & Entertainment–0.58%
AMC Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 06/01/19		25,000		26,469
Cinemark USA Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 06/15/19		25,000		27,500
NAI Entertainment Holdings LLC, Sr. Sec. Notes, 8.25%, 12/15/17(b)		15,000		16,162
Time Warner Cable, Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 07/01/18		55,000		63,884
				134,015
Multi-Line Insurance–1.98%
American Financial Group, Inc., Sr. Unsec. Notes, 9.88%, 06/15/19		180,000		223,889
Hartford Financial Services Group Inc. (The), Jr. Unsec. Sub. Deb., 8.13%, 06/15/38		10,000		10,734
Health Care Service Corp., Sr. Unsec. Notes, 4.70%, 01/15/21(b)		55,000		56,443
Liberty Mutual Group Inc., Jr. Unsec. Gtd. Sub. Bonds, 7.80%, 03/15/37(b)		15,000		14,925
Sr. Unsec. Gtd. Notes, 5.00%, 06/01/21(b)		50,000		47,897
Sr. Unsec. Notes, 5.75%, 03/15/14(b)		100,000		105,923
				459,811
Multi-Utilities–0.27%
Pacific Gas & Electric Co., Sr. Unsec. Notes, 5.40%, 01/15/40		65,000		63,396
Office Services & Supplies–0.11%
IKON Office Solutions, Inc., Sr. Unsec. Notes, 6.75%, 12/01/25		25,000		24,625
Oil & Gas Drilling–0.49%
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes, 6.63%, 11/15/20		5,000		5,112
Transocean Inc. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 4.95%, 11/15/15		100,000		108,152
				113,264
Oil & Gas Equipment & Services–0.11%
Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17		10,000		10,487
Calfrac Holdings L.P., Sr. Unsec. Notes, 7.50%, 12/01/20(b)		5,000		5,088
Key Energy Services, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 03/01/21		10,000		9,919
				25,494
Oil & Gas Exploration & Production–2.15%
Anadarko Petroleum Corp.,
Sr. Unsec. Global Notes, 5.75%, 06/15/14		95,000		104,551
Sr. Unsec. Notes, 7.63%, 03/15/14		15,000		17,128
Chaparral Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 09/01/21		10,000		10,175
Chesapeake Energy Corp., Sr. Unsec. Gtd. Notes, 6.63%, 08/15/20		8,000		8,430
6.13%, 02/15/21		5,000		5,081
Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17		10,000		10,537
Concho Resources Inc., Sr. Unsec. Gtd. Notes, 7.00%, 01/15/21		5,000		5,125
Continental Resources, Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 10/01/19		15,000		16,406
Delta Petroleum Corp., Sr. Unsec. Gtd. Sub. Global Notes, 7.00%, 04/01/15		10,000		7,700
EOG Resources Inc., Sr. Unsec. Notes, 4.10%, 02/01/21		45,000		44,683
Forest Oil Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 06/15/19		10,000		10,238
McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14		35,000		37,975
Pemex Project Funding Master Trust, Sr. Unsec. Gtd. Global Bonds, 6.63%, 06/15/35		65,000		67,909
Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 6.88%, 01/20/40		45,000		48,169
Petrohawk Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 08/15/18		10,000		10,275

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)
Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 5.50%, 01/21/21	$	65,000	$	68,317
Plains Exploration & Production Co., Sr. Unsec. Gtd. Notes, 8.63%, 10/15/19		15,000		16,275
SM Energy Co., Sr. Unsec. Notes, 6.63%, 02/15/19(b)		10,000		10,050
				499,024
Oil & Gas Refining & Marketing–0.55%
Petronas Capital Ltd. (Malaysia), Unsec. Gtd. Unsub. Notes, 5.25%, 08/12/19(b)		100,000		107,752
United Refining Co., Sr. Sec. Gtd. Global Notes, 10.50%, 02/28/18		20,000		20,050
				127,802
Oil & Gas Storage & Transportation–2.46%
Copano Energy LLC/Copano Energy Finance Corp., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/21		15,000		14,925
Energy Transfer Partners LP, Sr. Unsec. Global Notes, 6.05%, 06/01/41		115,000		112,316
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Notes, 6.45%, 09/01/40		70,000		74,660
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.50%, 08/15/21		15,000		14,981
Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18		25,000		24,625
Regency Energy Partners L.P./Regency Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 12/01/18		15,000		15,544
Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20		155,000		168,850
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 02/01/21(b)		15,000		14,325
Williams Partners L.P., Sr. Unsec. Global Notes,
3.80%, 02/15/15		75,000		78,702
6.30%, 04/15/40		50,000		52,011
				570,939
Other Diversified Financial Services–7.68%
Bank of America Corp.,
Sr. Unsec. Global Notes,
4.50%, 04/01/15		240,000		250,853
3.70%, 09/01/15		25,000		25,183
6.50%, 08/01/16		130,000		145,229
Sr. Unsec. Notes, 5.88%, 01/05/21		35,000		36,916
Citigroup Inc., Sr. Unsec. Global Notes, 6.01%, 01/15/15		150,000		164,733
Sr. Unsec. Notes, 6.38%, 08/12/14		255,000		281,123
Countrywide Financial Corp., Sr. Sec. Gtd. Medium-Term Global Notes, 5.80%, 06/07/12		10,000		10,432
ERAC USA Finance LLC, Unsec. Gtd. Notes, 5.80%, 10/15/12(b)		105,000		111,125
Football Trust V, Sec. Pass Through Ctfs., 5.35%, 10/05/20(b)		100,000		105,490
General Electric Capital Corp.–Series A, Sr. Unsec. Medium-Term Global Notes, 6.88%, 01/10/39		60,000		67,595
International Lease Finance Corp.,
Sr. Sec. Notes, 6.50%, 09/01/14(b)		115,000		121,785
Sr. Unsec. Notes, 8.25%, 12/15/20		10,000		10,888
JPMorgan Chase & Co., Sr. Unsec. Global Notes,
4.75%, 05/01/13		15,000		15,956
3.45%, 03/01/16		25,000		25,481
3.15%, 07/05/16		35,000		35,151
JPMorgan Chase Capital XXVII–Series AA, Jr. Unsec. Gtd. Sub. Notes, 7.00%, 11/01/39		160,000		160,394
Merrill Lynch & Co. Inc.–Series C, Sr. Unsec. Medium-Term Global Notes, 5.45%, 02/05/13		200,000		212,117
Twin Reefs Pass-Through Trust, Sec. Floating Rate Pass Through Ctfs., 1.39%, (Acquired: 12/07/04-04/03/06; Cost: $130,332)(b)(c)(d)(e)		130,000		—
				1,780,451
Packaged Foods & Meats–0.68%
Del Monte Foods Co., Sr. Unsec. Gtd. Notes, 7.63%, 02/15/19(b)		5,000		5,075
Dole Food Co. Inc., Sr. Sec. Gtd. Notes, 8.00%, 10/01/16(b)		25,000		26,313
Kraft Foods Inc., Sr. Unsec. Global Notes,
2.63%, 05/08/13		70,000		71,965
6.50%, 02/09/40		50,000		55,256
				158,609
Paper Packaging–0.05%
Cascades Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20		10,000		10,450
Paper Products–0.14%
Clearwater Paper Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 11/01/18		5,000		5,138
Mercer International Inc., Sr. Unsec. Gtd. Global Notes, 9.50%, 12/01/17		10,000		10,800
P.H. Glatfelter Co., Sr. Unsec. Gtd. Global Notes, 7.13%, 05/01/16		15,000		15,506
				31,444
Pharmaceuticals–0.13%
Mylan Inc., Sr. Unsec. Gtd. Notes, 6.00%, 11/15/18(b)		5,000		5,100
Valeant Pharmaceuticals International, Sr. Unsec. Gtd. Notes,
6.75%, 10/01/17(b)		10,000		9,788
7.00%, 10/01/20(b)		15,000		14,437
				29,325

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Property & Casualty Insurance–0.98%
CNA Financial Corp., Sr. Unsec. Notes, 7.35%, 11/15/19	$	160,000	$	182,889
W.R. Berkley Corp., Sr. Unsec. Notes, 7.38%, 09/15/19		40,000		45,272
				228,161
Publishing–0.04%
Reed Elsevier Capital Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 08/01/11		9,000		9,040
Railroads–0.93%
Canadian Pacific Railway Co. (Canada), Sr. Unsec. Yankee Notes, 4.45%, 03/15/23		20,000		19,892
CSX Corp., Sr. Unsec. Notes, 5.50%, 04/15/41		55,000		53,936
Kansas City Southern de Mexico S.A. de C.V. (Mexico), Sr. Unsec. Global Notes, 8.00%, 02/01/18		5,000		5,469
Union Pacific Corp., Sr. Unsec. Notes, 4.00%, 02/01/21		135,000		135,736
				215,033
Regional Banks–1.70%
BB&T Capital Trust II, Jr. Unsec. Gtd. Sub. Global Notes, 6.75%, 06/07/36		5,000		5,013
CIT Group Inc., Sec. Gtd. Notes, 6.63%, 04/01/18(b)		15,000		15,703
PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 3.63%, 02/08/15		110,000		115,480
PNC Preferred Funding Trust III, Jr. Sub. Notes, 8.70%(b)(c)		200,000		211,000
Regions Financial Corp., Unsec. Sub. Notes, 7.38%, 12/10/37		30,000		28,350
Synovus Financial Corp., Unsec. Sub. Global Notes, 5.13%, 06/15/17		20,000		17,800
				393,346
Restaurants–0.93%
Yum! Brands, Inc., Sr. Unsec. Notes, 5.30%, 09/15/19		200,000		215,468
Semiconductor Equipment–0.11%
Amkor Technology Inc., Sr. Unsec. Global Notes, 7.38%, 05/01/18		25,000		25,687
Semiconductors–0.12%
Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 9.25%, 04/15/18(b)		25,000		27,125
Sovereign Debt–0.72%
Mexico Government International Bond (Mexico)–Series A, Sr. Unsec. Medium-Term Global Notes, 6.05%, 01/11/40		60,000		63,960
Russian Foreign Bond (Russia), Sr. Unsec. Euro Bonds, 3.63%, 04/29/15(b)		100,000		102,650
				166,610
Specialized Finance–1.06%
Moody’s Corp., Sr. Unsec. Notes, 5.50%, 09/01/20		110,000		112,799
National Rural Utilities Cooperative Finance Corp., Sr. Sec. Collateral Trust Bonds, 3.05%, 03/01/16		70,000		72,194
Sr. Sec. Collateral Trust Notes, 2.63%, 09/16/12		60,000		61,414
				246,407
Specialized REIT’s–2.18%
Entertainment Properties Trust, Sr. Unsec. Gtd. Global Notes, 7.75%, 07/15/20		245,000		273,506
HCP, Inc., Sr. Unsec. Notes, 3.75%, 02/01/16		25,000		25,481
Health Care REIT Inc., Sr. Unsec. Notes, 6.50%, 03/15/41		40,000		39,322
Omega Healthcare Investors Inc., Sr. Unsec. Gtd. Notes, 6.75%, 10/15/22(b)		5,000		4,950
Senior Housing Properties Trust, Sr. Unsec. Notes, 4.30%, 01/15/16		75,000		75,141
Ventas Realty LP/Ventas Capital Corp., Sr. Unsec. Gtd. Notes, 4.75%, 06/01/21		90,000		88,054
				506,454
Specialty Chemicals–0.09%
Nalco Co., Sr. Unsec. Gtd. Notes, 6.63%, 01/15/19(b)		5,000		5,112
PolyOne Corp., Sr. Unsec. Notes, 7.38%, 09/15/20		15,000		15,844
				20,956
Specialty Stores–0.15%
Michaels Stores Inc., Sr. Unsec. Gtd. Notes, 7.75%, 11/01/18(b)		5,000		4,987
Staples Inc., Sr. Unsec. Gtd. Global Notes, 9.75%, 01/15/14		25,000		29,844
				34,831
Steel–1.82%
AK Steel Corp., Sr. Unsec. Gtd. Notes, 7.63%, 05/15/20		5,000		5,150
ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes,
6.13%, 06/01/18		55,000		58,717
5.50%, 03/01/21		10,000		10,031
7.00%, 10/15/39		195,000		197,880
6.75%, 03/01/41		10,000		9,961
FMG Resources Ltd. (Australia), Sr. Unsec. Gtd. Notes, 6.38%, 02/01/16(b)		5,000		5,012
United States Steel Corp., Sr. Unsec. Notes, 7.00%, 02/01/18		10,000		10,175
Vale Overseas Ltd., Sr. Unsec. Gtd. Global Notes,
4.63%, 09/15/20		55,000		54,412
6.88%, 11/10/39		65,000		70,735
				422,073
Systems Software–0.09%
Allen Systems Group Inc., Sec. Gtd. Notes, 10.50%, 11/15/16(b)		20,000		20,200

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
Technology Distributors–0.30%
Avnet Inc., Sr. Unsec. Notes, 5.88%, 06/15/20	$	65,000	$	68,743
Tobacco–0.41%
Altria Group, Inc., Sr. Unsec. Gtd. Global Notes, 4.75%, 05/05/21		95,000		95,217
Trading Companies & Distributors–0.15%
H&E Equipment Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16		25,000		25,625
Interline Brands, Inc., Sr. Unsec. Gtd. Global Notes, 7.00%, 11/15/18		5,000		5,075
RSC Equipment Rental Inc./RSC Holdings III LLC, Sr. Unsec. Gtd. Global Notes, 8.25%, 02/01/21		5,000		5,019
				35,719
Trucking–0.11%
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 01/15/19		5,000		5,075
Hertz Corp. (The), Sr. Unsec. Gtd. Notes,
6.75%, 04/15/19(b)		10,000		9,850
7.38%, 01/15/21(b)		10,000		10,175
				25,100
Wireless Telecommunication Services–1.63%
American Tower Corp., Sr. Unsec. Global Notes, 4.63%, 04/01/15		90,000		94,592
Clearwire Communications LLC/Clearwire Finance, Inc., Sr. Sec. Gtd. Notes, 12.00%, 12/01/15(b)		25,000		27,000
Cricket Communications, Inc., Sr. Unsec. Gtd. Global Notes, 7.75%, 10/15/20		20,000		19,650
Crown Castle Towers LLC, Sr. Sec. Gtd. Notes, 4.88%, 08/15/20(b)		120,000		121,800
MetroPCS Wireless Inc., Sr. Unsec. Gtd. Notes,
7.88%, 09/01/18		5,000		5,291
6.63%, 11/15/20		10,000		9,850
SBA Telecommunications Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 08/15/19		20,000		21,375
Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.90%, 05/01/19		10,000		10,362
Sprint Nextel Corp., Sr. Unsec. Notes, 8.38%, 08/15/17		10,000		10,975
Wind Acquisition Finance S.A. (Luxembourg), Sr. Sec. Gtd. Notes, 11.75%, 07/15/17(b)		50,000		56,970
				377,865
Total U.S. Dollar Denominated Bonds & Notes (Cost $17,842,057)				18,684,536
U.S. Treasury Securities–9.59%
U.S. Treasury Bills–0.22%
0.08%, 11/17/11(f)(g)		50,000		49,991
U.S. Treasury Bonds–3.67%
4.25%, 05/15/39		100,000		98,109
4.50%, 08/15/39		300,000		306,797
4.75%, 02/15/41		420,000		446,447
				851,353
U.S. Treasury Notes–5.70%
2.00%, 04/30/16		160,000		162,450
1.75%, 05/31/16		230,000		230,395
3.63%, 02/15/21		800,000		834,250
3.13%, 05/15/21		95,000		94,748
				1,321,843
Total U.S. Treasury Securities (Cost $2,237,415)				2,223,187
Asset-Backed Securities–2.39%
Countrywide Asset-Backed Ctfs.–Series 2007-4, Class A1B, Pass Through Ctfs., 5.81%, 09/25/37		49,059		48,452
Credit Suisse Mortgage Capital Ctfs.–Series 2009-2R, Class 1A11, Floating Rate Pass Through Ctfs., 2.83%, 09/26/34(b)(d)		104,259		98,555
Santander Drive Auto Receivables Trust, Series 2011-1, Class  D, Pass Through Ctfs., 4.07%, 02/15/17		80,000		79,534
TIAA Seasoned Commercial Mortgage Trust, Series 2007-C4, Class A2, Variable Rate Pass Through Ctfs., 5.70%, 08/15/39(d)		45,000		46,484
Wachovia Bank Commercial Mortgage Trust–Series 2005-C21, Class AJ, Variable Rate Pass Through Ctfs., 5.21%, 10/15/44(d)		110,000		111,208
Wells Fargo Mortgage Backed Securities Trust, Series 2004-Z, Class 2A1, Floating Rate Pass Through Ctfs., 2.74%, 12/25/34(d)		176,342		169,782
Total Asset-Backed Securities (Cost $524,809)				554,015
Municipal Obligations–1.57%
Alameda (County of), California Joint Powers Authority (Multiple Capital); Series 2010 A, Taxable Lease RB, 7.05%, 12/01/44		55,000		56,995
Florida Development Finance Corp. (Palm Bay Academy Inc.); Series 2006 B, Taxable RB, 7.50%, 05/15/17		65,000		55,909
Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4 Project J) (Build America Bonds); Series 2010 A, Taxable RB, 6.64%, 04/01/57		90,000		88,565
New Jersey (State of) Transportation Trust Fund Authority (Build America Bonds); Series 2010 C, Taxable RB, 5.75%, 12/15/28		105,000		105,966
New York City (City of) Transitional Finance Authority (Build America Bonds); Sub-series 2011 B-1, Future Tax Secured RB, 5.57%, 11/01/38		55,000		55,944
Total Municipal Obligations (Cost $369,523)				363,379

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

Invesco V.I. Diversified Income Fund

	Principal
	Amount		Value
U.S. Government Sponsored Mortgage-Backed Securities–1.21%
Federal Home Loan Mortgage Corp. (FHLMC)–0.38%
Pass Through Ctfs.,
6.50%, 05/01/16 to 08/01/32	$	9,020	$	10,143
6.00%, 05/01/17 to 12/01/31		43,602		48,158
5.50%, 09/01/17		28,343		30,709
				89,010
Federal National Mortgage Association (FNMA)–0.69%
Pass Through Ctfs.,
7.00%, 02/01/16 to 09/01/32		22,077		25,323
6.50%, 05/01/16 to 09/01/31		7,806		8,705
5.00%, 11/01/18		30,793		33,291
7.50%, 04/01/29 to 10/01/29		72,499		84,993
8.00%, 04/01/32		5,918		6,981
				159,293
Government National Mortgage Association (GNMA)–0.14%
Pass Through Ctfs.,
7.50%, 06/15/23		10,442		12,220
8.50%, 11/15/24		5,937		6,586
7.00%, 07/15/31 to 08/15/31		2,232		2,616
6.50%, 11/15/31 to 03/15/32		5,086		5,804
6.00%, 11/15/32		3,890		4,356
				31,582
Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $252,058)				279,885
	Shares
Preferred Stocks–0.20%
Consumer Finance–0.06%
Ally Financial, Inc., Series A, 8.50% Pfd.		250		6,257
GMAC Capital Trust I, Series 2, 8.13% Jr. Sub. Gtd. Pfd.		270		6,912
				13,169
Industrial REIT’s–0.01%
DuPont Fabros Technology Inc., Series B, 7.63% Pfd.		95		2,365
Regional Banks–0.11%
Zions Bancorp., Series C, 9.50% Pfd.		1,000		26,140
Tires & Rubber–0.02%
Goodyear Tire & Rubber Co. (The), $2.94 Conv. Pfd.		75		4,172
Total Preferred Stocks (Cost $46,056)				45,846
	Principal
	Amount
Non-U.S. Dollar Denominated Bonds & Notes–0.03%
Canada–0.03%
Gateway Casinos & Entertainment Ltd., Sec. Gtd. Notes, 8.88%, 11/15/17 (Cost $7,544)(b)(h)	CAD	7,000		7,703
	Shares
Common Stocks & Other Equity Interests–0.00%
Broadcasting–0.00%
Adelphia Recovery Trust, Series ACC-1(i)		87,412		9
Cable & Satellite–0.00%
Adelphia Communications Corp(i)		900		1,113
Total Common Stocks & Other Equity Interests (Cost $22,181)				1,122
Money Market Funds–1.79%
Liquid Assets Portfolio–Institutional Class(j)		208,024		208,024
Premier Portfolio–Institutional Class(j)		208,024		208,024
Total Money Market Funds (Cost $416,048)				416,048
TOTAL INVESTMENTS–97.34% (Cost $21,717,691)				22,575,721
OTHER ASSETS LESS LIABILITIES–2.66%				617,641
NET ASSETS–100.00%			$	23,193,362

Investment Abbreviations:

CAD	– Canadian Dollar
Ctfs.	– Certificates
Conv.	– Convertible
Deb.	– Debentures
Gtd.	– Guaranteed
Jr.	– Junior
Pfd.	– Preferred
PIK	– Payment in Kind
RB	– Revenue Bonds
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
Unsec.	– Unsecured
Unsub.	– Unsubordinated

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

Invesco V.I. Diversified Income Fund

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	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, 2011 was $5,792,072, which represented 24.97% of the Trust’s Net Assets.
(c)	Perpetual bond with no specified maturity date.
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2011.
(e)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at June 30, 2011 represented less than 1% of the Fund’s Net Assets.
(f)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1M and Note 4.
(g)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(h)	Foreign denominated security. Principal amount is denominated in currency indicated.
(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 industry, based on Net Assets

as of June 30, 2011

Other Diversified Financial Services	7.7	%
Investment Banking & Brokerage	6.6
Diversified Banks	6.4
U.S. Treasury Notes	5.7
U.S. Treasury Bonds	3.7
Other Industries, Each with Less Than 3.0% of Total Net Assets	65.4
Money Market Funds Plus Other Assets Less Liabilities	4.5

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $21,301,643)	$	22,159,673
Investments in affiliated money market funds, at value and cost		416,048
Total investments, at value (Cost $21,717,691)		22,575,721
Cash		26,144
Foreign currencies, at value (Cost $2,856)		3,037
Receivable for:
Investments sold		482,018
Variation margin		5,414
Fund shares sold		70
Dividends and interest		313,916
Investment for trustee deferred compensation and retirement plans		45,097
Other assets		368
Total assets		23,451,785
Liabilities:
Payable for:
Investments purchased		99,722
Fund shares reacquired		45,229
Accrued fees to affiliates		16,472
Accrued other operating expenses		44,200
Trustee deferred compensation and retirement plans		52,800
Total liabilities		258,423
Net assets applicable to shares outstanding	$	23,193,362
Net assets consist of:
Shares of beneficial interest	$	30,320,177
Undistributed net investment income		1,737,044
Undistributed net realized gain (loss)		(9,729,194	)
Unrealized appreciation		865,335
	$	23,193,362
Net Assets:
Series I	$	22,992,316
Series II	$	201,046
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		3,644,031
Series II		32,076
Series I:
Net asset value per share	$	6.31
Series II:
Net asset value per share	$	6.27

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Interest	$	655,096
Dividends from affiliated money market funds		229
Total investment income		655,325
Expenses:
Advisory fees		69,863
Administrative services fees		44,902
Custodian fees		6,786
Distribution fees — Series II		261
Transfer agent fees		4,151
Trustees’ and officers’ fees and benefits		8,331
Professional services fees		20,265
Other		12,186
Total expenses		166,745
Less: Fees waived and expenses reimbursed		(79,498	)
Net expenses		87,247
Net investment income		568,078
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		420,471
Foreign currencies		(114	)
Futures contracts		(23,046	)
		397,311
Change in net unrealized appreciation (depreciation) of:
Investment securities		(188,320	)
Foreign currencies		182
Futures contracts		933
		(187,205	)
Net realized and unrealized gain		210,106
Net increase in net assets resulting from operations	$	778,184

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	568,078		$	1,225,023
Net realized gain		397,311			814,813
Change in net unrealized appreciation (depreciation)		(187,205	)		296,160
Net increase in net assets resulting from operations		778,184			2,335,996
Distributions to shareholders from net investment income:
Series I		—			(1,390,866	)
Series II		—			(12,740	)
Total distributions from net investment income		—			(1,403,606	)
Share transactions–net:
Series I		(1,008,205	)		(1,990,553	)
Series II		(37,298	)		(71,022	)
Net increase (decrease) in net assets resulting from share transactions		(1,045,503	)		(2,061,575	)
Net increase (decrease) in net assets		(267,319	)		(1,129,185	)
Net assets:
Beginning of period		23,460,681			24,589,866
End of period (includes undistributed net investment income of $1,737,044 and $1,168,966, respectively)	$	23,193,362		$	23,460,681

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Diversified Income Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.	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.
L.	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.

Invesco V.I. Diversified Income Fund

	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.
M.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between 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.
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, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0	.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 Canada Ltd. (formerly 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, 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 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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 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.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $69,863 and reimbursed Fund expenses of $9,635.

  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, 2011, 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

Invesco V.I. Diversified Income Fund

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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $20,107 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	461,903	$	1,113	$	—	$	463,016
U.S. Treasury Securities		—		2,223,187		—		2,223,187
U.S. Government Sponsored Securities		—		279,885		—		279,885
Corporate Debt Securities		—		18,692,239		0		18,692,239
Asset Backed Securities		—		554,015		—		554,015
Municipal Obligations		—		363,379		—		363,379
	$	461,903	$	22,113,818	$	0	$	22,575,721
Futures*		7,123		—		—		7,123
Total Investments	$	469,026	$	22,113,818	$	0	$	22,582,844

*  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.

Invesco V.I. Diversified Income 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, 2011:

	Notional Value
Risk Exposure/Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	24,093	$	(16,970	)

^(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, 2011

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)
Interest rate risk	$	(23,046	)
Change in Unrealized Appreciation
Interest rate risk		933
Total	$	(22,113	)

*  The average notional value of futures outstanding during the period was $8,332,328.

Open Futures Contracts
								Unrealized
	Number of				Notional			Appreciation
Contract	Contracts		Month		Value			(Depreciation)
Long Contracts
U.S. Treasury Ultra Bond		8		September-2011	$	1,010,000		$	(14,329	)
U.S. Treasury 5 Year Notes		29		September-2011		3,456,664			22,369
Subtotal					$	4,466,664		$	8,040
Short Contracts
U.S. Treasury 10 Year Notes		30		September-2011	$	(3,669,844	)	$	(2,641	)
U.S. Treasury 30 Year Notes		1		September-2011		(123,031	)		1,724
Subtotal					$	(3,792,875	)	$	(917	)
Total					$	673,789		$	7,123

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, 2011, the Fund paid legal fees of $646 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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.

Invesco V.I. Diversified Income Fund

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2014	$	341,883
December 31, 2015		221,396
December 31, 2016		2,197,944
December 31, 2017		7,359,092
Total capital loss carryforward	$	10,120,315

*  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, 2011 was $7,566,240 and $10,281,227, 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	$	1,118,520
Aggregate unrealized (depreciation) of investment securities		(260,490	)
Net unrealized appreciation of investment securities	$	858,030
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, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		204,425		$	1,268,131			297,335		$	1,831,971
Series II		1,145			7,177			68			406
Issued as reinvestment of dividends:
Series I		—			—			227,266			1,390,866
Series II		—			—			2,092			12,740
Reacquired:
Series I		(365,940	)		(2,276,336	)		(848,553	)		(5,213,390	)
Series II		(7,232	)		(44,475	)		(13,673	)		(84,168	)
Net increase (decrease) in share activity		(167,602	)	$	(1,045,503	)		(335,465	)	$	(2,061,575	)

^(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.

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 06/30/11	$	6.10	$	0.15	$	0.06		$	0.21		$	—		$	6.31		3.44	%	$	22,992		0.75	%(d)		1.43	%(d)		4.88	%(d)		41	%
Year ended 12/31/10		5.88		0.31		0.28			0.59			(0.37	)		6.10		10.05			23,229		0.75			1.36			5.03			87
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
Series II
Six months ended 06/30/11		6.07		0.14		0.06			0.20			—			6.27		3.30			201		1.00	(d)		1.68	(d)		4.63	(d)		41
Year ended 12/31/10		5.85		0.29		0.28			0.57			(0.35	)		6.07		9.70			232		1.00			1.61			4.78			87
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

(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 $23,270 and $211 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,034.40	$	3.78	$	1,021.08	$	3.76		0.75	%
Series II		1,000.00		1,033.00		5.04		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, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Corporate Debt Funds BBB-Rated Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of the 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 performance of Series I shares of the Fund was above the performance of the Index for the one year period and below for the 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rates of two mutual funds with comparable investment strategies.

  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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	6.56	%
Series II Shares	6.43
S&P 500 Index▼ (Broad Market Index)	6.01
Russell 1000 Index▼ (Style-Specific Index)	6.37
Lipper VUF Large-Cap Core Funds Index▼ (Peer Group Index)	4.70

^▼Lipper Inc.
The Fund recently adopted a three-tier benchmark structure to compare
its performance to broad market, style-specific and peer group market
measures.

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/servicemark 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (3/1/90)	7.09	%
10 Years	1.94
5 Years	1.59
1 Year	26.76
Series II Shares
Inception (6/5/00)	2.31	%
10 Years	1.69
5 Years	1.34
1 Year	26.36

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, 2012. See current prospectus for more information.

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley Variable Investment Dividend Growth Portfolio, 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 0.82% and 1.07%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     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

Invesco V.I. Dividend Growth Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.43%(a)
Aerospace & Defense–3.96%
General Dynamics Corp.		105,181	$	7,838,088
Raytheon Co.		135,850		6,772,123
				14,610,211
Apparel Retail–0.41%
TJX Cos., Inc. (The)		28,834		1,514,650
Asset Management & Custody Banks–2.74%
Federated Investors, Inc.–Class B		254,540		6,068,233
State Street Corp.		89,531		4,036,953
				10,105,186
Auto Parts & Equipment–1.64%
Johnson Controls, Inc.		144,876		6,035,534
Brewers–3.50%
Foster’s Group Ltd. (Australia)		796,031		4,396,778
Heineken N.V. (Netherlands)		141,611		8,518,805
				12,915,583
Building Products–1.60%
Masco Corp.		491,988		5,918,616
Casinos & Gaming–1.30%
International Game Technology		273,706		4,811,752
Consumer Finance–2.55%
Capital One Financial Corp.		182,508		9,430,188
Data Processing & Outsourced Services–2.74%
Automatic Data Processing, Inc.		191,834		10,105,815
Department Stores–0.31%
Nordstrom, Inc.		24,723		1,160,498
Distillers & Vintners–0.22%
Treasury Wine Estates Ltd. (Australia)(b)		227,095		828,101
Distributors–0.34%
Genuine Parts Co.		23,040		1,253,376
Diversified Banks–2.68%
Societe Generale (France)		115,223		6,839,470
U.S. Bancorp		119,360		3,044,874
				9,884,344
Diversified Chemicals–0.76%
E. I. du Pont de Nemours and Co.		51,666		2,792,547
Drug Retail–1.17%
Walgreen Co.		101,705		4,318,394
Electric Utilities–5.06%
American Electric Power Co., Inc.		177,002		6,669,435
Entergy Corp.		56,823		3,879,875
Exelon Corp.		147,380		6,313,759
PPL Corp.		64,792		1,803,161
				18,666,230
Electrical Components & Equipment–1.07%
Emerson Electric Co.		70,152		3,946,050
Food Distributors–1.77%
Sysco Corp.		209,039		6,517,836
Gas Utilities–0.97%
AGL Resources Inc.		88,391		3,598,398
General Merchandise Stores–1.53%
Target Corp.		120,412		5,648,527
Health Care Equipment–2.59%
Medtronic, Inc.		96,863		3,732,131
Stryker Corp.		99,521		5,840,888
				9,573,019
Hotels, Resorts & Cruise Lines–1.49%
Accor S.A. (France)		66,842		2,989,793
Marriott International Inc.–Class A		71,096		2,523,197
				5,512,990
Household Products–4.55%
Kimberly-Clark Corp.		151,280		10,069,197
Procter & Gamble Co. (The)		106,045		6,741,280
				16,810,477
Industrial Machinery–4.55%
Illinois Tool Works Inc.		48,030		2,713,214
Pentair, Inc.		182,330		7,358,839
Snap-On, Inc.		107,731		6,731,033
				16,803,086
Insurance Brokers–0.21%
Marsh & McLennan Cos., Inc.		24,242		756,108

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

Invesco V.I. Dividend Growth Fund

	Shares		Value
Integrated Oil & Gas–2.83%
Eni S.p.A. (Italy)		203,686	$	4,830,178
Exxon Mobil Corp.		34,320		2,792,962
Total S.A. (France)		48,776		2,821,688
				10,444,828
Integrated Telecommunication Services–0.67%
AT&T Inc.		78,550		2,467,256
Investment Banking & Brokerage–1.59%
Charles Schwab Corp. (The)		357,660		5,883,507
Life & Health Insurance–2.35%
Lincoln National Corp.		167,726		4,778,514
Prudential Financial, Inc.		6,486		412,445
StanCorp Financial Group, Inc.		82,681		3,488,311
				8,679,270
Motorcycle Manufacturers–0.87%
Harley-Davidson, Inc.		78,432		3,213,359
Movies & Entertainment–1.23%
Time Warner Inc.		124,874		4,541,667
Multi-Utilities–1.27%
Dominion Resources, Inc.		97,465		4,704,636
Oil & Gas Equipment & Services–0.65%
Baker Hughes Inc.		32,868		2,384,902
Oil & Gas Storage & Transportation–0.69%
Southern Union Co.		63,410		2,545,912
Packaged Foods & Meats–6.52%
Campbell Soup Co.		155,979		5,389,075
General Mills, Inc.		211,852		7,885,131
Kraft Foods Inc.–Class A		182,697		6,436,415
Mead Johnson Nutrition Co.		64,756		4,374,268
				24,084,889
Paper Products–1.80%
International Paper Co.		222,432		6,632,922
Pharmaceuticals–5.22%
Bristol-Myers Squibb Co.		117,595		3,405,551
Eli Lilly and Co.		145,078		5,444,777
Johnson & Johnson		118,211		7,863,396
Novartis AG (Switzerland)		32,873		2,013,990
Pfizer Inc.		26,775		551,565
				19,279,279
Property & Casualty Insurance–0.92%
Allstate Corp. (The)		5,407		165,076
Travelers Cos., Inc. (The)		55,591		3,245,402
				3,410,478
Regional Banks–8.03%
Fifth Third Bancorp		542,645		6,918,724
M&T Bank Corp.		31,171		2,741,489
SunTrust Banks, Inc.		413,481		10,667,810
Zions Bancorp.		388,715		9,333,047
				29,661,070
Reinsurance–0.32%
Transatlantic Holdings, Inc.		24,014		1,176,926
Restaurants–0.89%
Brinker International, Inc.		133,625		3,268,468
Semiconductors–1.64%
Linear Technology Corp.		47,626		1,572,610
Texas Instruments Inc.		136,791		4,490,849
				6,063,459
Soft Drinks–1.25%
Coca-Cola Co. (The)		68,312		4,596,714
Specialized Consumer Services–1.09%
H&R Block, Inc.		251,610		4,035,824
Specialized REIT’s–1.30%
Weyerhaeuser Co.		219,900		4,807,014
Specialty Chemicals–0.52%
Ecolab Inc.		33,840		1,907,899
Systems Software–1.50%
Microsoft Corp.		213,484		5,550,584
Thrifts & Mortgage Finance–1.66%
Capitol Federal Financial Inc.		11,148		131,100
Hudson City Bancorp, Inc.		730,268		5,980,895
				6,111,995
Tobacco–1.91%
Altria Group, Inc.		132,370		3,495,892
Philip Morris International Inc.		53,213		3,553,032
				7,048,924
Total Common Stocks & Other Equity Interests (Cost $322,581,640)				356,019,298

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

Invesco V.I. Dividend Growth Fund

	Shares		Value
Money Market Funds–4.61%
Liquid Assets Portfolio–Institutional Class(c)		8,515,331	$	8,515,331
Premier Portfolio–Institutional Class(c)		8,515,330		8,515,330
Total Money Market Funds (Cost $17,030,661)				17,030,661
TOTAL INVESTMENTS–101.04% (Cost $339,612,301)				373,049,959
OTHER ASSETS LESS LIABILITIES–(1.04)%				(3,832,239	)
NET ASSETS–100.00%			$	369,217,720

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, 2011

Financials	23.0	%
Consumer Staples	20.9
Industrials	11.2
Consumer Discretionary	11.1
Utilities	8.0
Health Care	7.8
Information Technology	5.9
Materials	4.4
Energy	3.5
Telecommunication Services	0.6
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. Dividend Growth Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $322,581,640)	$	356,019,298
Investments in affiliated money market funds, at value and cost		17,030,661
Total investments, at value (Cost $339,612,301)		373,049,959
Cash		42,983
Receivable for:
Investments sold		1,651,606
Fund shares sold		15,840
Dividends		751,582
Investment for trustee deferred compensation and retirement plans		22,097
Total assets		375,534,067
Liabilities:
Payable for:
Investments purchased		4,795,064
Fund shares reacquired		273,123
Accrued fees to affiliates		731,376
Accrued other operating expenses		469,356
Trustee deferred compensation and retirement plans		47,428
Total liabilities		6,316,347
Net assets applicable to shares outstanding	$	369,217,720
Net assets consist of:
Shares of beneficial interest	$	418,235,141
Undistributed net investment income		3,016,011
Undistributed net realized gain (loss)		(85,467,841	)
Unrealized appreciation		33,434,409
	$	369,217,720
Net Assets:
Series I	$	290,881,331
Series II	$	78,336,389
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		19,476,823
Series II		5,253,609
Series I:
Net asset value per share	$	14.93
Series II:
Net asset value per share	$	14.91

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $99,041)	$	3,991,880
Dividends from affiliated money market funds		7,031
Interest		41,308
Total investment income		4,040,219
Expenses:
Advisory fees		738,564
Administrative services fees		386,710
Custodian fees		15,554
Distribution fees – Series II		75,480
Transfer agent fees		5,531
Trustees’ and officers’ fees and benefits		10,497
Other		26,865
Total expenses		1,259,201
Less: Fees waived		(261,812	)
Net expenses		997,389
Net investment income		3,042,830
Realized and unrealized gain from:
Net realized gain from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(189,325))		19,115,722
Foreign currencies		2,731
		19,118,453
Change in net unrealized appreciation (depreciation) of:
Investment securities		(10,247,500	)
Foreign currencies		(2,351	)
Foreign currency contracts		235
		(10,249,616	)
Net realized and unrealized gain		8,868,837
Net increase in net assets resulting from operations	$	11,911,667

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	3,042,830		$	3,571,412
Net realized gain		19,118,453			3,469,462
Change in net unrealized appreciation (depreciation)		(10,249,616	)		15,628,383
Net increase in net assets resulting from operations		11,911,667			22,669,257
Distributions to shareholders from net investment income:
Series I		(2,886,405	)		(3,255,974	)
Series II		(680,347	)		(803,719	)
Total distributions from net investment income		(3,566,752	)		(4,059,693	)
Share transactions–net:
Series I		104,928,390			(27,025,327	)
Series II		25,032,802			(17,414,065	)
Net increase (decrease) in net assets resulting from share transactions		129,961,192			(44,439,392	)
Net increase (decrease) in net assets		138,306,107			(25,829,828	)
Net assets:
Beginning of period		230,911,613			256,741,441
End of period (includes undistributed net investment income of $3,016,011 and $3,539,933, respectively)	$	369,217,720		$	230,911,613

Notes to Financial Statements

June 30, 2011

(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) (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-eight 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 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”).
	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. Dividend 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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. Dividend Growth Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 valued 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 Daily Net Assets	Rate
First $250 million		0	.545%
Next $750 million		0	.42%
Next $1 billion		0	.395%
Over $2 billion		0	.37%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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. Dividend Growth Fund

  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 and/or expense reimbursement (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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $261,812.

  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, 2011, Invesco was paid $36,918 for accounting and fund administrative services and reimbursed $349,792 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	368,219,781	$	4,830,178	$	—	$	373,049,959

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.

Invesco V.I. Dividend Growth Fund

Pursuant to these procedures, for the six months ended June 30, 2011, the Fund engaged in securities sales of $531,322, which resulted in net realized gains (losses) of $(189,325).

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, 2011, the Fund paid legal fees of $796 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2011	$	48,222,156
December 31, 2016		19,116,895
December 31, 2017		37,247,410
Total capital loss carryforward	$	104,586,461

*  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 2, 2011, the date of reorganization of Invesco V.I. Financial Services Fund and Invesco V.I. Select Dimensions Dividend Growth Fund into the Fund and realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2011 was $59,865,326 and $51,301,758, 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	$	40,270,154
Aggregate unrealized (depreciation) of investment securities		(6,832,496	)
Net unrealized appreciation of investment securities	$	33,437,658
Cost of investments for tax purposes is $339,612,301.

Invesco V.I. Dividend Growth Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		144,318		$	2,121,186			42,162		$	556,286
Series II		35,613			560,560			41,409			523,697
Issued as reinvestment of dividends:
Series I		195,688			2,886,405			254,971			3,255,974
Series II		46,157			680,347			63,037			803,719
Issued in connection with acquisitions:(b)
Series I		8,156,451			124,094,426			—			—
Series II		2,222,881			33,755,005			—			—
Reacquired:
Series I		(1,628,645	)		(24,173,627	)		(2,334,157	)		(30,837,587	)
Series II		(670,873	)		(9,963,110	)		(1,409,722	)		(18,741,481	)
Net increase (decrease) in share activity		8,501,590		$	129,961,192			(3,342,300	)	$	(44,439,392	)

(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 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 portion of the shares owned of record by these entities are also owned beneficially.

(b)

As of the opening of business on May 2, 2011, the Fund acquired all of the net assets of Invesco V.I. Financial Services Fund and Invesco V.I. Select Dimensions Dividend Growth Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco V.I. Financial Services Fund and Invesco V.I. Select Dimensions Dividend Growth Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 10,379,332 shares of the Fund for 11,415,021 shares outstanding of Invesco V.I. Financial Services Fund and 5,444,017 shares outstanding of Invesco V.I. Select Dimensions Dividend Growth Fund as of the close of business on April 29, 2011. Series I and Series II shares of Invesco V.I. Financial Services Fund and Series I and Series II shares of Invesco V.I. Select Dimensions Dividend Growth Fund were exchanged for Series I and Series II shares of the Fund, respectively, based on the relative net asset vale of Invesco V.I. Financial Services Fund and Invesco V.I. Select Dimensions Dividend Growth Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco V.I. Financial Services Fund’s net assets at that date of $67,820,291, including $7,630,530 of unrealized appreciation and Invesco V.I. Select Dimensions Dividend Growth Fund’s net assets at that date of $90,029,140, including $12,545,232 of unrealized appreciation were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $235,469,889. The net assets of the Fund immediately following the acquisition were $393,319,320.

Invesco V.I. Dividend 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										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 06/30/11	$	14.24	$	0.16	$	0.77		$	0.93		$	(0.24	)	$	14.93		6.56	%	$	290,881		0.66	%(d)		0.85	%(d)		2.24	%(d)		22	%
Year ended 12/31/10		13.13		0.21		1.14			1.35			(0.24	)		14.24		10.48			179,518		0.68			0.79			1.59			78
Year ended 12/31/09		10.78		0.20		2.37			2.57			(0.22	)		13.13		24.30			192,279		0.67			0.67			1.80			44
Year ended 12/31/08		17.01		0.25		(6.41	)		(6.16	)		(0.07	)		10.78		(36.35	)		184,579		0.63			0.63			1.72			61
Year ended 12/31/07		16.53		0.22		0.48			0.70			(0.22	)		17.01		4.22			368,737		0.58			0.58			1.27			48
Year ended 12/31/06		15.09		0.21		1.45			1.66			(0.22	)		16.53		11.09			471,931		0.59			0.59			1.37			114
Series II
Six months ended 06/30/11		14.20		0.14		0.77			0.91			(0.20	)		14.91		6.43			78,336		0.91	(d)		1.10	(d)		1.99	(d)		22
Year ended 12/31/10		13.09		0.19		1.12			1.31			(0.20	)		14.20		10.20			51,394		0.93			1.04			1.34			78
Year ended 12/31/09		10.75		0.17		2.36			2.53			(0.19	)		13.09		23.94			64,463		0.92			0.92			1.55			44
Year ended 12/31/08		16.98		0.21		(6.38	)		(6.17	)		(0.06	)		10.75		(36.46	)		59,030		0.88			0.88			1.47			61
Year ended 12/31/07		16.51		0.17		0.48			0.65			(0.18	)		16.98		3.90			116,271		0.83			0.83			1.02			48
Year ended 12/31/06		15.07		0.17		1.45			1.62			(0.18	)		16.51		10.83			136,660		0.84			0.84			1.12			114

(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. For the period ended June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $140,377,034 and sold of $37,599,743 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Financial Services Fund and Invesco V.I. Select Dimensions Dividend Growth Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $219,322 and $60,884 for Series I and Series II shares, respectively.

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 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,065.60	$	3.38	$	1,021.52	$	3.31		0.66	%
Series II		1,000.00		1,064.30		4.66		1,020.28		4.56		0.91

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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. Dividend 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. Dividend 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

Invesco V.I. Dividend Growth 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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Large Cap Core Funds Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of the 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 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rate of the one mutual fund and below the rate one mutual fund comparable with investment strategies.

  Other than the mutual funds 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco V.I. Global Health Care Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	14.54	%
Series II Shares	14.41
MSCI World Index▼ (Broad Market Index)	5.29
MSCI World Health Care Index▼ (Style-Specific Index)	12.97
Lipper VUF Health/Biotechnology Funds Category Average▼ (Peer Group)	14.71
▼Lipper Inc.

The MSCI World Index^SM 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 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

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 1.12% 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. 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.

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (5/21/97)			7.41	%
	10	Years	3.76
	5	Years	5.66
	1	Year	30.47
Series II Shares
	10	Years	3.49	%
	5	Years	5.39
	1	Year	30.14

Invesco V.I. Global Health Care Fund

Schedule of Investments^(a)

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.55%
Biotechnology–20.18%
Amarin Corp. PLC–ADR (United Kingdom)(b)		135,307	$	1,957,892
Amgen Inc.(b)		43,292		2,526,088
Biogen Idec Inc.(b)		32,338		3,457,579
BioMarin Pharmaceutical, Inc.(b)		124,174		3,378,775
Celgene Corp.(b)		71,116		4,289,717
Dendreon Corp.(b)		37,759		1,489,215
Gilead Sciences, Inc.(b)		146,240		6,055,798
Human Genome Sciences, Inc.(b)		57,275		1,405,529
Incyte Corp.(b)		139,437		2,640,937
InterMune, Inc.(b)		34,249		1,227,827
Onyx Pharmaceuticals, Inc.(b)		39,877		1,407,658
Pharmasset, Inc.(b)		14,187		1,591,781
United Therapeutics Corp.(b)		38,808		2,138,321
				33,567,117
Drug Retail–4.59%
CVS Caremark Corp.		175,257		6,586,158
Drogasil S.A. (Brazil)		148,860		1,042,306
				7,628,464
Health Care Distributors–2.11%
McKesson Corp.		41,892		3,504,266
Health Care Equipment–10.05%
Baxter International Inc.		70,826		4,227,604
CareFusion Corp.(b)		83,118		2,258,316
Covidien PLC (Ireland)		73,204		3,896,649
Hologic, Inc.(b)		104,356		2,104,860
Kinetic Concepts, Inc.(b)		28,774		1,658,246
Wright Medical Group, Inc.(b)		67,893		1,018,395
Zimmer Holdings, Inc.(b)		24,699		1,560,977
				16,725,047
Health Care Facilities–3.79%
Assisted Living Concepts Inc.–Class A		62,920		1,055,798
Rhoen-Klinikum AG (Germany)		133,140		3,213,731
Universal Health Services, Inc.–Class B		39,598		2,040,485
				6,310,014
Health Care Services–6.08%
DaVita, Inc.(b)		45,574		3,947,164
Express Scripts, Inc.(b)		40,201		2,170,050
Medco Health Solutions, Inc.(b)		24,770		1,400,000
Quest Diagnostics Inc.		43,855		2,591,831
				10,109,045
Health Care Supplies–0.64%
Meridian Bioscience, Inc.		44,039		1,061,780
Health Care Technology–2.12%
Allscripts Healthcare Solutions, Inc.(b)		62,810		1,219,770
Cerner Corp.(b)		37,696		2,303,603
				3,523,373
Industrial Conglomerates–1.44%
Koninklijke Philips Electronics N.V. (Netherlands)		93,446		2,400,639
Life Sciences Tools & Services–7.24%
Gerresheimer AG (Germany)		34,262		1,635,890
Life Technologies Corp.(b)		71,024		3,698,220
Thermo Fisher Scientific, Inc.(b)		104,215		6,710,404
				12,044,514
Managed Health Care–15.81%
Aetna Inc.		96,269		4,244,500
AMERIGROUP Corp.(b)		24,512		1,727,361
Amil Participacoes S.A. (Brazil)(c)		133,900		1,554,304
Aveta, Inc. (Acquired 12/21/05; Cost$1,655,802)(b)(c)		122,652		1,103,868
CIGNA Corp.		70,220		3,611,415
Coventry Health Care, Inc.(b)		75,039		2,736,672
Health Net, Inc.(b)		73,072		2,344,880
Humana Inc.		24,237		1,952,048
UnitedHealth Group, Inc.		53,006		2,734,050
WellPoint Inc.		54,481		4,291,468
				26,300,566
Pharmaceuticals–22.88%
Abbott Laboratories		105,877		5,571,248
Allergan, Inc.		20,401		1,698,383
Bayer AG (Germany)		30,503		2,453,090
Cadence Pharmaceuticals, Inc.(b)(d)		131,049		1,205,651
EastPharma Ltd.–GDR (Turkey)(c)		114,132		148,372
Hikma Pharmaceuticals PLC (United Kingdom)		119,052		1,452,287
Hospira, Inc.(b)		70,212		3,978,212
Ipsen S.A. (France)		32,981		1,170,221
MAP Pharmaceuticals Inc.(b)		54,176		865,191
Nippon Shinyaku Co., Ltd. (Japan)		134,000		1,713,101
Novartis AG–ADR (Switzerland)		40,008		2,444,889

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)
Pharmstandard–GDR (Russia)(b)(c)		23,450	$	534,660
Roche Holding AG (Switzerland)		39,243		6,568,511
Shire PLC–ADR (United Kingdom)		18,293		1,723,383
Teva Pharmaceutical Industries Ltd.–ADR (Israel)		135,525		6,535,015
				38,062,214
Research & Consulting Services–0.62%
Qualicorp S.A. (Brazil)(b)(c)		109,000		1,039,026
Total Common Stocks & Other Equity Interests (Cost $136,562,265)				162,276,065
Money Market Funds–3.37%
Liquid Assets Portfolio–Institutional Class(e)		2,796,844		2,796,844
Premier Portfolio–Institutional Class(e)		2,796,844		2,796,844
Total Money Market Funds (Cost $5,593,688)				5,593,688
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.92% (Cost $142,155,953)				167,869,753
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–0.17%
Liquid Assets Portfolio–Institutional Class (Cost $288,580)(e)(f)		288,580		288,580
TOTAL INVESTMENTS–101.09% (Cost $142,444,533)				168,158,333
OTHER ASSETS LESS LIABILITIES–(1.09)%				(1,810,039	)
NET ASSETS–100.00%			$	166,348,294

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)	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, 2011 was $4,380,230, which represented 2.63% of the Fund’s Net Assets.
(d)	All or a portion of this security was out on loan at June 30, 2011.
(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, 2011

United States	72.6	%
Switzerland	5.4
Germany	4.4
Israel	3.9
United Kingdom	3.1
Ireland	2.3
Brazil	2.2
Countries each less than 2.0% of portfolio	3.6
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 V.I. Global Health Care Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $136,562,265)*	$	162,276,065
Investments in affiliated money market funds, at value and cost		5,882,268
Total investments, at value (Cost $142,444,533)		168,158,333
Foreign currencies, at value (Cost $13,231)		17,423
Receivable for:
Fund shares sold		154,964
Dividends		178,312
Foreign currency contracts outstanding		46,947
Investment for trustee deferred compensation and retirement plans		20,609
Total assets		168,576,588
Liabilities:
Payable for:
Investments purchased		907,751
Fund shares reacquired		746,207
Collateral upon return of securities loaned		288,580
Accrued fees to affiliates		213,970
Accrued other operating expenses		23,494
Trustee deferred compensation and retirement plans		48,292
Total liabilities		2,228,294
Net assets applicable to shares outstanding	$	166,348,294
Net assets consist of:
Shares of beneficial interest	$	154,404,147
Undistributed net investment income		354,575
Undistributed net realized gain (loss)		(14,174,545	)
Unrealized appreciation		25,764,117
	$	166,348,294
Net Assets:
Series I	$	137,489,254
Series II	$	28,859,040
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		7,184,865
Series II		1,540,339
Series I:
Net asset value per share	$	19.14
Series II:
Net asset value per share	$	18.74

* At June 30, 2011, securities with an aggregate value of $282,440 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $109,437)	$	1,271,970
Dividends from affiliated money market funds (includes securities lending income of $23,083)		25,576
Total investment income		1,297,546
Expenses:
Advisory fees		590,532
Administrative services fees		219,141
Custodian fees		9,828
Distribution fees — Series II		34,029
Transfer agent fees		16,094
Trustees’ and officers’ fees and benefits		10,359
Other		24,709
Total expenses		904,692
Less: Fees waived		(3,493	)
Net expenses		901,199
Net investment income		396,347
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		8,283,124
Foreign currencies		1,394
Foreign currency contracts		(614,189	)
		7,670,329
Change in net unrealized appreciation (depreciation) of:
Investment securities		13,011,966
Foreign currencies		(3,429	)
Foreign currency contracts		24,267
		13,032,804
Net realized and unrealized gain		20,703,133
Net increase in net assets resulting from operations	$	21,099,480

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income (loss)	$	396,347		$	(352,936	)
Net realized gain		7,670,329			6,635,670
Change in net unrealized appreciation		13,032,804			672,232
Net increase in net assets resulting from operations		21,099,480			6,954,966
Share transactions–net:
Series I		(4,405,848	)		(24,973,014	)
Series II		(849,792	)		(1,847,042	)
Net increase (decrease) in net assets resulting from share transactions		(5,255,640	)		(26,820,056	)
Net increase (decrease) in net assets		15,843,840			(19,865,090	)
Net assets:
Beginning of period		150,504,454			170,369,544
End of period (includes undistributed net investment income (loss) of $354,575 and $(41,772), respectively)	$	166,348,294		$	150,504,454

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Health Care Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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. Global Health Care 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to

Invesco V.I. Global Health Care Fund

	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 Daily 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 Canada Ltd. (formerly 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, 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 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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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, 2012, 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, 2011, the Adviser waived advisory fees of $3,493.

  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, 2011, 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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $194,346 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs

Invesco V.I. Global Health Care Fund

(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, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	165,341,364	$	2,816,969	$	—	$	168,158,333
Foreign Currency Contracts*		—		46,947		—		46,947
Total Investments	$	165,341,364	$	2,863,916	$	—	$	168,205,280

*  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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Currency risk
Foreign currency contracts(a)	$	100,366	$	(53,419	)

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

Effect of Derivative Instruments for the six months ended June 30, 2011

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 (Loss)
Currency risk	$	(614,189	)
Change in Unrealized Appreciation
Currency risk		24,267
Total	$	(589,922	)

*  The average value of foreign currency contracts outstanding during the period was $6,465,505.

Invesco V.I. Global Health Care Fund

Open Foreign Currency Contracts at Period End
								Unrealized
Settlement		Contract to						Appreciation
Date	Counterparty	Deliver		Receive		Value		(Depreciation)
08/08/11	CitiBank Capital	CHF	2,450,000	USD	2,861,848	$	2,915,267	$	(53,419	)
08/08/11	CitiBank Capital	EUR	2,600,000	USD	3,867,552		3,767,186		100,366
Total foreign currency contracts								$	46,947

Currency Abbreviations:
CHF	– Swiss Franc
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, 2011, the Fund paid legal fees of $739 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	5,840,082
December 31, 2017		15,956,934
Total capital loss carryforward	$	21,797,016

*  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, 2011 was $33,936,294 and $38,066,170, 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	$	31,134,020
Aggregate unrealized (depreciation) of investment securities		(5,445,398	)
Net unrealized appreciation of investment securities	$	25,688,622
Cost of investments for tax purposes is $142,469,711.

Invesco V.I. Global Health Care Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		638,859		$	11,828,715			1,324,865		$	21,365,905
Series II		93,707			1,699,572			218,080			3,429,179
Reacquired:
Series I		(901,909	)		(16,234,563	)		(2,928,835	)		(46,338,919	)
Series II		(144,630	)		(2,549,364	)		(340,143	)		(5,276,221	)
Net increase (decrease) in share activity		(313,973	)	$	(5,255,640	)		(1,726,033	)	$	(26,820,056	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 59% of the outstanding shares of the Fund. 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.

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)
	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 06/30/11	$	16.71	$	0.05		$	2.38		$	2.43		$	—		$	—		$	—		$	19.14		14.54	%	$	137,489		1.11	%(d)		1.11	%(d)		0.54	%(d)		22	%
Year ended 12/31/10		15.87		(0.03	)		0.87			0.84			—			—			—			16.71		5.29			124,441		1.11			1.12			(0.18	)		16
Year ended 12/31/09		12.47		(0.01	)		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	(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	)		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	)		1.11			1.07			—			—			—			21.51		5.24			235,509		1.10			1.10			(0.19	)		79
Series II
Six months ended 06/30/11		16.38		0.03			2.33			2.36			—			—			—			18.74		14.41			28,859		1.36	(d)		1.36	(d)		0.29	(d)		22
Year ended 12/31/10		15.60		(0.07	)		0.85			0.78			—			—			—			16.38		5.00			26,063		1.36			1.37			(0.43	)		16
Year ended 12/31/09		12.26		(0.04	)		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	(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	)		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	)		1.11			1.02			—			—			—			21.36		5.01			97,646		1.35			1.35			(0.44	)		79

(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 $131,331 and $27,449 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,145.40	$	5.90	$	1,019.29	$	5.56		1.11	%
Series II		1,000.00		1,144.10		7.23		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, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Health/Biotechnology Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of the 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 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 at a common asset level. The Board noted that the contractual advisory fee for Series I shares of the Fund was below the median contractual advisory fee rate of funds in the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s effective fee rate was above the effective fee rate of one mutual fund with comparable investment strategies.

  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 contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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 Real Estate Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.67	%
Series II Shares	5.56
MSCI World Index▼ (Broad Market Index)	5.29
FTSE EPRA/NAREIT Developed Real Estate Index▼ (Style-Specific Index)	6.07
Lipper VUF Real Estate Funds Category Average▼ (Peer Group)	8.60
▼Lipper Inc.

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 real estate investment trusts (REITs).

     The Lipper VUF Real Estate Funds Category Average represents an average of all 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (3/31/98)			8.71	%
	10	Years	10.75
	5	Years	1.34
	1	Year	32.12
Series II Shares
	10	Years	10.49	%
	5	Years	1.10
	1	Year	31.82

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. 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.

Invesco V.I. Global Real Estate Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.14%
Australia–8.81%
CFS Retail Property Trust		995,044	$	1,941,471
Dexus Property Group		1,567,882		1,483,528
Goodman Group		2,768,995		2,093,672
GPT Group		376,837		1,280,178
Investa Office Fund		1,694,616		1,174,574
Stockland		1,015,361		3,721,514
Westfield Group		463,175		4,316,014
Westfield Retail Trust		802,938		2,337,283
				18,348,234
Austria–0.52%
Conwert Immobilien Invest S.E.		64,260		1,087,826
Canada–3.10%
Boardwalk REIT		19,592		981,022
Canadian REIT		19,600		674,741
Chartwell Seniors Housing REIT		118,300		1,030,402
H&R REIT		42,700		958,138
Primaris Retail REIT		62,000		1,353,277
RioCan REIT		54,500		1,465,916
				6,463,496
China–1.28%
Agile Property Holdings Ltd.		616,000		963,791
Country Garden Holdings Co.		503,000		222,671
Evergrande Real Estate Group Ltd.		1,435,000		940,567
Shimao Property Holdings Ltd.		424,500		529,131
				2,656,160
Finland–0.67%
Citycon Oyj		38,837		174,645
Sponda Oyj		208,630		1,213,581
				1,388,226
France–4.63%
Fonciere des Regions		9,097		963,975
Klepierre		32,732		1,351,548
Mercialys		30,321		1,285,862
Societe Immobiliere de Location pour I’Industrie et le Commerce		6,409		919,928
Unibail-Rodamco S.E.		22,152		5,123,717
				9,645,030
Germany–0.62%
Deutsche Wohnen AG		24,426		425,188
GSW Immobilien AG(a)		25,523		875,610
				1,300,798
Hong Kong–12.37%
China Overseas Land & Investment Ltd.		1,252,301		2,709,554
China Resources Land Ltd.		288,000		522,221
Hang Lung Properties Ltd.		806,000		3,338,434
Henderson Land Development Co. Ltd.		60,000		388,206
Hongkong Land Holdings Ltd.		508,000		3,616,960
Hysan Development Co. Ltd.		209,000		1,034,686
Kerry Properties Ltd.		256,900		1,243,234
Link REIT (The)		435,500		1,485,861
Sino Land Co. Ltd.		494,000		798,713
Sun Hung Kai Properties Ltd.		499,000		7,282,429
Wharf Holdings Ltd. (The)		478,000		3,339,025
				25,759,323
Italy–0.37%
Beni Stabili S.p.A.		756,705		764,531
Japan–8.93%
AEON Mall Co., Ltd.		14,100		342,293
Frontier Real Estate Investment Corp.		51		450,282
Japan Prime Realty Investment Corp.		250		663,795
Japan Real Estate Investment Corp.		158		1,552,715
Japan Retail Fund Investment Corp.		131		202,253
Kenedix Realty Investment Corp.		93		358,181
Mitsubishi Estate Co. Ltd.		251,000		4,407,085
Mitsui Fudosan Co., Ltd.		246,000		4,241,953
Nippon Building Fund Inc.		143		1,396,422
ORIX JREIT Inc.		144		797,325
Sumitomo Realty & Development Co., Ltd.		129,000		2,884,602
Tokyu Land Corp.		165,000		700,352
United Urban Investment Corp.		526		607,709
				18,604,967
Malta–0.00%
BGP Holdings PLC(a)		3,053,090		0
Netherlands–0.95%
Corio N.V.		29,923		1,983,668
Singapore–4.08%
Ascendas REIT		123,000		204,282
CapitaCommercial Trust		699,000		827,241

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–(continued)
Capitaland Ltd.		946,000	$	2,249,781
CapitaMall Trust		821,550		1,253,016
City Developments Ltd.		43,000		365,558
Global Logistic Properties Ltd.(a)		628,000		1,054,872
Keppel Land Ltd.		468,000		1,385,262
Suntec REIT		950,000		1,160,140
				8,500,152
Sweden–0.66%
Castellum A.B.		91,279		1,368,449
Switzerland–1.23%
Swiss Prime Site AG(a)		29,766		2,554,862
United Kingdom–5.97%
Big Yellow Group PLC		131,649		650,200
British Land Co. PLC		207,842		2,031,668
Derwent London PLC		52,467		1,537,762
Great Portland Estates PLC		106,649		746,355
Hammerson PLC		216,210		1,670,644
Hansteen Holdings PLC		168,511		236,532
Land Securities Group PLC		197,793		2,706,496
Segro PLC		215,506		1,080,273
Shaftesbury PLC		136,893		1,160,159
Unite Group PLC(a)		174,562		609,692
				12,429,781
United States–43.95%
Acadia Realty Trust		44,641		907,552
Alexandria Real Estate Equities, Inc.		26,526		2,053,643
American Campus Communities, Inc.		9,800		348,096
AvalonBay Communities, Inc.		34,853		4,475,125
Boston Properties, Inc.		36,979		3,925,691
BRE Properties, Inc.		30,921		1,542,339
Brookfield Office Properties, Inc.		177,205		3,423,195
Camden Property Trust		44,682		2,842,669
DiamondRock Hospitality Co.		105,429		1,131,253
Digital Realty Trust, Inc.		36,619		2,262,322
Douglas Emmett, Inc.		65,138		1,295,595
Duke Realty Corp.		75,999		1,064,746
Equity Residential		61,775		3,706,500
Essex Property Trust, Inc.		23,888		3,231,807
Extra Space Storage Inc.		40,900		872,397
Federal Realty Investment Trust		12,100		1,030,678
General Growth Properties, Inc.		87,187		1,455,151
HCP, Inc.		85,911		3,152,075
Health Care REIT, Inc.		72,097		3,780,046
Hersha Hospitality Trust		91,236		508,185
Highwoods Properties, Inc.		32,900		1,089,977
Host Hotels & Resorts Inc.		239,224		4,054,847
Kilroy Realty Corp.		29,817		1,177,473
Kimco Realty Corp.		136,700		2,548,088
Macerich Co. (The)		64,640		3,458,240
Mid-America Apartment Communities, Inc.		12,000		809,640
Nationwide Health Properties, Inc.		46,371		1,920,223
Piedmont Office Realty Trust Inc.–Class A		5,000		101,950
Prologis, Inc.		152,720		5,473,485
Public Storage		25,645		2,923,786
Regency Centers Corp.		41,500		1,824,755
Retail Opportunity Investments Corp.		40,279		433,402
Senior Housing Properties Trust		30,500		714,005
Simon Property Group, Inc.		79,484		9,238,425
SL Green Realty Corp.		35,686		2,957,299
Sovran Self Storage, Inc.		18,600		762,600
Starwood Hotels & Resorts Worldwide, Inc.		10,862		608,706
Ventas, Inc.		50,231		2,647,676
Vornado Realty Trust		61,775		5,756,194
				91,509,836
Total Common Stocks & Other Equity Interests (Cost $166,534,296)				204,365,339
Money Market Funds–1.93%
Liquid Assets Portfolio–Institutional Class(b)		2,012,301		2,012,301
Premier Portfolio–Institutional Class(b)		2,012,302		2,012,302
Total Money Market Funds (Cost $4,024,603)				4,024,603
TOTAL INVESTMENTS–100.07% (Cost $170,558,899)				208,389,942
OTHER ASSETS LESS LIABILITIES–(0.07)%				(157,349	)
NET ASSETS–100.00%			$	208,232,593

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

^(a) Non-income producing security.

^(b) The money market fund and the Fund are affiliated by having the same investment adviser.

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, 2011

United States	43.9	%
Hong Kong	12.4
Japan	8.9
Australia	8.8
United Kingdom	6.0
France	4.6
Singapore	4.1
Canada	3.1
Countries each less than 2.0% of portfolio	6.3
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. Global Real Estate Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $166,534,296)	$	204,365,339
Investments in affiliated money market funds, at value and cost		4,024,603
Total investments, at value (Cost $170,558,899)		208,389,942
Foreign currencies, at value (Cost $1,729,128)		1,714,743
Receivable for:
Investments sold		419,552
Fund shares sold		560,561
Dividends		679,099
Investment for trustee deferred compensation and retirement plans		15,304
Other assets		815
Total assets		211,780,016
Liabilities:
Payable for:
Investments purchased		2,494,888
Fund shares reacquired		743,592
Accrued fees to affiliates		250,840
Accrued other operating expenses		30,721
Trustee deferred compensation and retirement plans		27,382
Total liabilities		3,547,423
Net assets applicable to shares outstanding	$	208,232,593
Net assets consist of:
Shares of beneficial interest	$	206,866,460
Undistributed net investment income		4,077,733
Undistributed net realized gain (loss)		(40,526,149	)
Unrealized appreciation		37,814,549
	$	208,232,593
Net Assets:
Series I	$	151,693,970
Series II	$	56,538,623
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		10,573,575
Series II		4,024,412
Series I:
Net asset value per share	$	14.35
Series II:
Net asset value per share	$	14.05

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $180,024)	$	3,302,307
Dividends from affiliated money market funds		1,246
Total investment income		3,303,553
Expenses:
Advisory fees		676,219
Administrative services fees		242,735
Custodian fees		47,481
Distribution fees — Series II		56,005
Transfer agent fees		11,690
Trustees’ and officers’ fees and benefits		10,902
Other		25,756
Total expenses		1,070,788
Less: Fees waived		(1,405	)
Net expenses		1,069,383
Net investment income		2,234,170
Realized and unrealized gain from:
Net realized gain from:
Investment securities		3,964,222
Foreign currencies		56,648
		4,020,870
Change in net unrealized appreciation (depreciation) of:
Investment securities		3,596,940
Foreign currencies		(12,073	)
		3,584,867
Net realized and unrealized gain		7,605,737
Net increase in net assets resulting from operations	$	9,839,907

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,		December 31,
	2011		2010
Operations:
Net investment income	$	2,234,170	$	4,017,480
Net realized gain		4,020,870		7,130,044
Change in net unrealized appreciation		3,584,867		11,160,840
Net increase in net assets resulting from operations		9,839,907		22,308,364
Distributions to shareholders from net investment income:
Series I		—		(6,161,371	)
Series II		—		(1,036,283	)
Total distributions from net investment income		—		(7,197,654	)
Share transactions–net:
Series I		12,796,771		(9,517,933	)
Series II		20,119,819		19,873,135
Net increase in net assets resulting from share transactions		32,916,590		10,355,202
Net increase in net assets		42,756,497		25,465,912
Net assets:
Beginning of period		165,476,096		140,010,184
End of period (includes undistributed net investment income of $4,077,733 and $1,843,563, respectively)	$	208,232,593	$	165,476,096

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Real Estate Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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.

Invesco V.I. Global Real Estate 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
	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.

Invesco V.I. Global Real Estate 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 Daily 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%

Invesco V.I. Global Real Estate Fund

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has contractually agreed, through at least April 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 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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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, 2012, 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, 2011, the Adviser waived advisory fees of $1,405.

  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, 2011, 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, 2011, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $217,941 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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 Real Estate Fund

  During the six months ended June 30, 2011, there were no significant transfers between investment levels.

	Level 1*		Level 2*		Level 3		Total
Australia	$	2,093,672	$	16,254,562	$	—	$	18,348,234
Austria		1,087,826		—		—		1,087,826
Canada		6,463,496		—		—		6,463,496
China		—		2,656,160		—		2,656,160
Finland		1,388,226		—		—		1,388,226
France		9,645,030		—		—		9,645,030
Germany		1,300,798		—		—		1,300,798
Hong Kong		5,102,821		20,656,502		—		25,759,323
Italy		764,531		—		—		764,531
Japan		3,307,318		15,297,649		—		18,604,967
Malta		—		—		0		0
Netherlands		1,983,668		—		—		1,983,668
Singapore		1,364,422		7,135,730		—		8,500,152
Sweden		1,368,449		—		—		1,368,449
Switzerland		2,554,862		—		—		2,554,862
United Kingdom		12,429,781		—		—		12,429,781
United States		95,534,439		—		—		95,534,439
Total Investments	$	146,389,339	$	62,000,603	$	0	$	208,389,942

*  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, 2011, the Fund paid legal fees of $746 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	14,871,434
December 31, 2017		22,621,345
Total capital loss carryforward	$	37,492,779

*  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, 2011 was $89,725,669 and $56,092,412, 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	$	26,715,130
Aggregate unrealized (depreciation) of investment securities		(1,714,778	)
Net unrealized appreciation of investment securities	$	25,000,352
Cost of investments for tax purposes is $183,389,590.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		2,368,617		$	33,393,101			3,250,045		$	40,832,439
Series II		1,670,078			22,864,837			1,654,806			20,893,454
Issued as reinvestment of dividends:
Series I		—			—			477,626			6,161,371
Series II		—			—			81,855			1,036,283
Reacquired:
Series I		(1,474,937	)		(20,596,330	)		(4,611,903	)		(56,511,743	)
Series II		(200,440	)		(2,745,018	)		(169,623	)		(2,056,602	)
Net increase in share activity		2,363,318		$	32,916,590			682,806		$	10,355,202

^(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. 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) 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
	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 06/30/11	$	13.58	$	0.18	$	0.59		$	0.77		$	—		$	—		$	—		$	14.35		5.67	%	$	151,694		1.13	%(d)		1.13	%(d)		2.53	%(d)		31	%
Year ended 12/31/10		12.14		0.35		1.74			2.09			(0.65	)		—			(0.65	)		13.58		17.51			131,462		1.20			1.20			2.82			87
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
Series II
Six months ended 06/30/11		13.31		0.16		0.58			0.74			—			—			—			14.05		5.56			56,539		1.38	(d)		1.38	(d)		2.28	(d)		31
Year ended 12/31/10		11.93		0.32		1.70			2.02			(0.64	)		—			(0.64	)		13.31		17.24			34,014		1.45			1.45			2.57			87
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

(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 $136,644 and $45,176 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,056.70	$	5.76	$	1,019.19	$	5.66		1.13	%
Series II		1,000.00		1,055.60		7.03		1,017.95		6.90		1.38

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Real Estate Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of the performance universe for the one year period, the fifth quintile for the three year period and the third 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 performance of Series I shares of the Fund was

Invesco V.I. Global Real Estate Fund

below the performance of the Index for the one and three year periods and above the performance of the Index for the five year period. Invesco Advisers advised the Board that short and intermediate term performance had been challenged due to the quality bias of the Fund. 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 at a common asset level. The Board noted that the contractual advisory fee for Series I shares of the Fund was below the median contractual advisory fee rate of funds in the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s effective fee rate was above the effective fee rate of one mutual fund advised by Invesco Advisers and below the total account fee of a mutual fund subadvised by Invesco Advisers. The Board also noted that Invesco Advisers sub-advises an off-shore fund with comparable investment strategies, but did not consider that to be an apt comparison as the management fee includes more than advisory fees.

  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 solely for investment management services. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts. These additional services include 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 for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. 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 often more comparable. The Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from those provided to institutional clients, and 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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	1.95	%
Series II Shares	1.81
Barclays Capital U.S. Aggregate Index▼ (Broad Market Index)	2.72
Barclays Capital U.S. Government Index▼ (Style-Specific Index)	2.14
Lipper VUF General U.S. Government Funds Index▼ (Peer Group Index)	3.48

^▼ 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

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 0.60% and 0.85%,

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 0.76% and 1.01%, 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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (5/5/93)			5.03	%
	10	Years	4.80
	5	Years	5.87
	1	Year	2.15
Series II Shares
	10	Years	4.53	%
	5	Years	5.58
	1	Year	1.86

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, 2012. See current prospectus for more information.

Invesco V.I. Government Securities Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Principal
	Amount		Value
U.S. Government Sponsored Mortgage-Backed Securities–69.02%
Collateralized Mortgage Obligations–39.37%
Fannie Mae Grantor Trust, 5.34%, 04/25/12	$	4,500,000	$	4,665,254
Fannie Mae REMICs, 4.00%, 09/25/16 to 02/25/40		13,379,454		13,947,354
4.50%, 11/25/16 to 07/25/27		17,045,295		17,881,543
5.00%, 02/25/17 to 09/25/37		46,061,258		48,870,076
4.25%, 12/25/19 to 06/25/33		9,265,937		9,727,853
3.00%, 07/25/22		442,319		452,191
5.50%, 12/25/26 to 03/25/28		43,922		43,901
7.00%, 09/18/27		1,096,002		1,244,532
6.50%, 01/25/30 to 03/25/32		3,884,635		4,400,374
3.50%, 12/25/31		3,937,868		4,126,047
4.75%, 07/25/33		8,384,596		8,819,325
5.75%, 10/25/35		1,483,205		1,633,520
0.49%, 05/25/36(a)		13,971,151		14,003,407
6.58%, 06/25/39		11,119,697		12,826,908
Fannie Mae Whole Loans, 5.50%, 07/25/34		1,249,727		1,277,133
FDIC Structured Sale Gtd. Notes, 0.74%, 02/25/48(a)(b)		1,402,723		1,405,383
Federal Home Loan Bank, 4.55%, 04/27/12		1,063,525		1,094,904
5.27%, 12/28/12		11,879,604		12,460,219
5.07%, 10/20/15		2,488,748		2,697,485
5.46%, 11/27/15		35,617,845		39,517,757
Freddie Mac REMICs, 5.38%, 08/15/11 to 09/15/11		1,759,290		1,765,536
3.88%, 12/15/12		300,392		302,415
0.85%, 03/15/13		3,870,077		3,879,889
4.75%, 07/15/14 to 05/15/23		3,340,306		3,428,139
3.50%, 10/15/16 to 12/15/27		4,550,841		4,688,740
4.00%, 02/15/17 to 03/15/38		27,642,996		28,955,300
4.50%, 04/15/17 to 10/15/36		19,294,037		20,060,877
4.38%, 05/15/17		1,066,350		1,093,527
4.16%, 07/15/17		1,236,028		1,267,992
3.77%, 09/15/17		1,144,534		1,176,131
3.84%, 09/15/17		1,574,326		1,619,866
5.00%, 02/15/18 to 09/15/32		21,396,980		22,565,625
3.00%, 10/15/18 to 04/15/26		22,041,455		22,829,370
3.75%, 10/15/18		6,985,610		7,278,883
4.25%, 01/15/19		1,576,105		1,646,399
0.59%, 04/15/28 to 06/15/37(a)		35,865,202		35,908,160
5.50%, 07/15/28 to 02/15/33		6,700,342		6,847,750
6.00%, 09/15/29		2,309,729		2,337,023
5.25%, 08/15/32		9,443,732		9,966,486
0.50%, 03/15/36(a)		14,063,913		14,070,950
5.75%, 05/15/36		1,514,316		1,621,068
1.05%, 11/15/39(a)		6,534,350		6,604,536
Ginnie Mae REMICs, 6.00%, 01/16/25		3,131,551		3,499,042
5.00%, 09/16/27 to 08/16/35		7,179,000		7,548,741
4.21%, 01/16/28		1,503,858		1,512,994
4.50%, 01/16/31 to 08/20/35		71,044,454		74,895,603
5.50%, 04/16/31		2,060,907		2,087,894
4.75%, 09/20/32		2,450,790		2,584,674
4.00%, 11/16/33 to 02/20/38		23,863,770		25,069,081
5.77%, 08/20/34(a)		4,247,012		4,686,374
				522,894,231
Federal Home Loan Mortgage Corp. (FHLMC)–6.91%
Pass Through Ctfs., 7.00%, 09/01/11 to 12/01/37		13,514,333		15,721,503
6.50%, 10/01/12 to 12/01/35		13,612,988		15,336,277
6.00%, 09/01/13 to 07/01/38		8,068,166		8,868,815
8.00%, 07/01/15 to 09/01/36		12,289,294		14,665,535
7.50%, 03/01/16 to 08/01/36		4,728,560		5,459,699
5.00%, 07/01/18 to 01/01/40		7,369,140		7,873,410
10.50%, 08/01/19		4,573		5,208
4.50%, 09/01/20 to 01/01/40		12,727,000		13,431,422
8.50%, 09/01/20 to 08/01/31		1,014,913		1,219,079
10.00%, 03/01/21		65,485		75,142
9.00%, 06/01/21 to 06/01/22		512,580		585,587
5.50%, 12/01/22 to 11/01/39		4,268,213		4,632,424
7.05%, 05/20/27		321,687		371,944
6.03%, 10/20/30		2,019,164		2,275,819
Pass Through Ctfs., ARM, 5.93%, 10/01/36(a)		746,948		793,812
5.47%, 01/01/38(a)		394,115		421,606
				91,737,282

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

Invesco V.I. Government Securities Fund

	Principal
	Amount		Value
Federal National Mortgage Association (FNMA)–19.24%
Pass Through Ctfs., 7.00%, 07/01/11 to 06/01/36	$	20,313,771	$	22,929,060
7.50%, 08/01/11 to 08/01/37		15,718,354		18,446,258
8.00%, 06/01/12 to 11/01/37		13,070,704		15,281,793
8.50%, 06/01/12 to 08/01/37		5,139,491		6,076,301
6.50%, 05/01/13 to 04/01/38		16,441,924		18,367,124
10.00%, 09/01/13		9,711		9,851
6.00%, 01/01/14 to 10/01/38		15,016,578		16,601,434
5.00%, 11/01/17 to 03/01/40		50,282,679		54,038,976
4.50%, 09/01/18 to 08/01/39		60,026,820		64,023,987
5.50%, 03/01/21 to 08/01/38		19,216,353		20,912,536
6.75%, 07/01/24		1,077,161		1,230,439
6.95%, 10/01/25		74,769		86,251
Pass Through Ctfs., ARM, 2.46%, 05/01/35(a)		1,232,822		1,295,156
5.50%, 03/01/38(a)		259,188		276,609
Pass Through Ctfs., Balloon, 3.84%, 04/01/18		6,600,000		6,845,926
Pass Through Ctfs., TBA, 3.50%, 07/01/26(c)		2,980,000		3,034,945
4.00%, 07/01/26(c)		5,825,000		6,068,922
				255,525,568
Government National Mortgage Association (GNMA)–3.50%
Pass Through Ctfs., 8.00%, 07/15/12 to 01/15/37		3,836,590		4,559,709
6.50%, 02/20/12 to 01/15/37		12,534,946		14,284,147
6.75%, 08/15/13		18,849		19,839
7.50%, 10/15/14 to 10/15/35		6,579,339		7,752,397
11.00%, 10/15/15		1,721		1,736
9.00%, 10/20/16 to 12/20/16		85,585		96,756
7.00%, 04/15/17 to 01/15/37		4,770,281		5,540,592
10.50%, 09/15/17 to 11/15/19		3,318		3,332
8.50%, 12/15/17 to 01/15/37		783,433		903,430
10.00%, 06/15/19		29,996		33,511
6.00%, 09/15/20 to 08/15/33		1,891,590		2,115,279
6.95%, 08/20/25 to 08/20/27		892,558		1,034,025
6.38%, 10/20/27 to 09/20/28		721,894		802,458
6.10%, 12/20/33		8,067,478		9,320,026
				46,467,237
Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $891,594,451)				916,624,318
U.S. Government Sponsored Agency Securities–17.37%
Federal Agricultural Mortgage Corp.–5.32%
Medium-Term Notes, 2.11%, 03/15/12		37,000,000		37,510,920
Unsec. Medium-Term Notes, 2.20%, 11/09/11		25,000,000		25,137,848
1.25%, 12/06/13		8,000,000		8,042,536
				70,691,304
Federal Farm Credit Bank (FFCB)–4.59%
Bonds, 1.13%, 02/27/14		13,000,000		13,090,211
3.00%, 09/22/14		5,000,000		5,298,641
1.63%, 11/19/14		4,800,000		4,872,244
1.50%, 11/16/15		11,000,000		10,923,234
5.59%, 10/04/21		10,075,000		10,208,874
5.75%, 01/18/22		2,775,000		2,840,867
Global Bonds, 1.38%, 06/25/13		10,000,000		10,163,223
Medium-Term Notes, 5.75%, 12/07/28		3,100,000		3,575,304
				60,972,598
Federal Home Loan Bank (FHLB)–3.37%
Unsec. Global Bonds, 1.63%, 03/20/13		12,500,000		12,752,237
1.88%, 06/21/13		16,000,000		16,424,779
3.63%, 10/18/13		3,900,000		4,166,060
Unsec. Global Notes, 1.38%, 05/28/14		4,875,000		4,937,166
Series 1, Unsec. Bonds, 5.77%, 03/23/18		5,832,373		6,433,347
				44,713,589
Federal Home Loan Mortgage Corp. (FHLMC)–1.32%
Unsec. Global Notes, 0.38%, 11/30/12		1,000,000		1,000,532
0.63%, 12/28/12		5,000,000		5,018,235
1.00%, 08/27/14		5,000,000		4,994,200
1.75%, 09/10/15		6,500,000		6,542,086
				17,555,053
Federal National Mortgage Association (FNMA)–1.37%
Unsec. Global Notes, 3.00%, 09/16/14		7,500,000		7,949,483
2.38%, 04/11/16		10,000,000		10,234,869
				18,184,352

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

Invesco V.I. Government Securities Fund

	Principal
	Amount		Value
Financing Corp. (FICO)–0.29%
Sec. Bonds, 9.80%, 04/06/18	$	700,000	$	999,558
Series E, Sec. Bonds,
9.65%, 11/02/18		1,985,000		2,856,486
				3,856,044
Private Export Funding Corp.–0.50%
Sec. Gtd. Notes, 2.13%, 07/15/16		5,000,000		4,968,219
4.30%, 12/15/21		1,540,000		1,621,433
				6,589,652
Tennessee Valley Authority–0.61%
Global Bonds, 4.88%, 12/15/16		2,420,000		2,750,825
Series A, Bonds, 6.79%, 05/23/12		5,000,000		5,293,575
				8,044,400
Total U.S. Government Sponsored Agency Securities (Cost 226,551,428)				230,606,992
U.S. Treasury Securities–10.41%
U.S. Treasury Bonds–2.39%
8.75%, 05/15/20		3,500,000		5,112,187
7.88%, 02/15/21		1,100,000		1,542,922
7.50%, 11/15/24		4,370,000		6,155,555
7.63%, 02/15/25		550,000		783,492
5.38%, 02/15/31		3,800,000		4,454,313
4.25%, 05/15/39(d)		3,685,000		3,615,330
4.38%, 11/15/39		3,000,000		3,001,875
4.63%, 02/15/40		2,700,000		2,815,594
4.75%, 02/15/41		4,000,000		4,251,875
				31,733,143
U.S. Treasury Notes–8.02%
0.75%, 09/15/13		2,500,000		2,512,109
1.25%, 03/15/14		10,000,000		10,146,875
0.75%, 06/15/14		7,000,000		6,992,344
2.38%, 10/31/14		450,000		470,672
2.13%, 11/30/14		150,000		155,602
2.25%, 01/31/15		3,500,000		3,642,188
2.38%, 02/28/15		11,000,000		11,493,281
1.25%, 08/31/15		3,000,000		2,986,875
2.00%, 01/31/16		1,200,000		1,223,438
2.75%, 05/31/17(d)		22,000,000		22,770,000
2.38%, 07/31/17		10,000,000		10,109,375
3.63%, 02/15/20		2,729,000		2,887,623
3.50%, 05/15/20		15,750,000		16,443,984
2.63%, 08/15/20		9,000,000		8,714,531
3.13%, 05/15/21		6,000,000		5,984,062
				106,532,959
Total U.S. Treasury Securities (Cost $137,416,021)				138,266,102
Foreign Bonds–2.51%
Sovereign Debt–0.31%
Israel Government Agency for International Development (AID) Bond (Israel), Gtd. Bonds, 5.13%, 11/01/24		3,800,000		4,218,588
Collaterized Mortgage Obligations–2.20%
La Hipotecaria S.A. (Panama)–Series 2010-1 GA, Class A, Floating Rate Pass Through Ctfs., 3.75%, 09/08/39(a)(b)		28,335,038		29,193,944
Total Foreign Bonds (Cost $33,092,714)				33,412,532
Corporate Bonds & Notes–0.71%
Diversified Banks–0.30%
Ally Financial, Inc., Gtd. Notes, 2.20%, 12/19/12		1,700,000		1,743,658
U.S. Central Federal Credit Union, Gtd. Notes, 1.90%, 10/19/12		2,260,000		2,302,752
				4,046,410
Industrial Conglomerates–0.22%
General Electric Capital Corp.–Series G, Sr. Gtd. Medium-Term Global Notes, 2.63%, 12/28/12		2,800,000		2,891,458
Other Diversified Financial Services–0.19%
Citibank N.A., Sr. Unsec. Gtd. Notes, 1.75%, 12/28/12		2,500,000		2,550,593
Total Bonds & Notes (Cost $9,307,654)				9,488,461
Money Market Funds–0.87%
Government & Agency Portfolio–Institutional Class (Cost $11,543,695)(e)		11,543,695		11,543,695
TOTAL INVESTMENTS–100.89% (Cost $1,309,505,963)				1,339,942,100
OTHER ASSETS LESS LIABILITIES–(0.89)%				(11,845,129	)
NET ASSETS–100.00%			$	1,328,096,971

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

Invesco V.I. Government Securities Fund

Investment Abbreviations:

ARM	– Adjustable Rate Mortgage
Ctfs.	– Certificates
Gtd.	– Guaranteed
REMICs	– Real Estate Mortgage Investment Conduits
Sec.	– Secured
Sr.	– Senior
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, 2011.
(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, 2011 was $30,599,327, which represented 2.30% of the Trust’s Net Assets.
(c)	Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1J.
(d)	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.
(e)	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, 2011

U.S. Government Sponsored Mortgage-Backed Securities	69.0	%
U.S. Government Sponsored Agency Securities	17.4
U.S. Treasury Securities	10.4
Foreign Bonds	2.5
Corporate Bonds & Notes	0.7

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $1,297,962,268)	$	1,328,398,405
Investments in affiliated money market funds, at value and cost		11,543,695
Total investments, at value (Cost $1,309,505,963)		1,339,942,100
Receivable for:
Investments sold		12,018,592
Fund shares sold		1,598,938
Dividends and interest		5,208,439
Fund expenses absorbed		340,698
Principal paydowns		172,567
Investment for trustee deferred compensation and retirement plans		62,564
Other assets		925
Total assets		1,359,344,823
Liabilities:
Payable for:
Investments purchased		27,816,386
Fund shares reacquired		421,847
Variation margin		868,680
Accrued fees to affiliates		1,550,831
Accrued other operating expenses		427,730
Trustee deferred compensation and retirement plans		162,378
Total liabilities		31,247,852
Net assets applicable to shares outstanding	$	1,328,096,971
Net assets consist of:
Shares of beneficial interest	$	1,321,646,703
Undistributed net investment income		12,156,811
Undistributed net realized gain (loss)		(35,606,832	)
Unrealized appreciation		29,900,289
	$	1,328,096,971
Net Assets:
Series I	$	1,041,630,142
Series II	$	286,466,829
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		88,248,863
Series II		24,436,091
Series I:
Net asset value per share	$	11.80
Series II:
Net asset value per share	$	11.72

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Interest	$	16,382,155
Dividends from affiliated money market funds		3,266
Total investment income		16,385,421
Expenses:
Advisory fees		2,659,627
Administrative services fees		1,560,464
Custodian fees		26,725
Distribution fees — Series II		141,137
Transfer agent fees		11,572
Trustees’ and officers’ fees and benefits		26,633
Other		134,809
Total expenses		4,560,967
Less: Fees waived and expense offset arrangement(s)		(494,344	)
Net expenses		4,066,623
Net investment income		12,318,798
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		1,075,546
Futures contracts		(1,223,641	)
		(148,095	)
Change in net unrealized appreciation of:
Investment securities		5,327,608
Futures contracts		6,046,692
		11,374,300
Net realized and unrealized gain		11,226,205
Net increase in net assets resulting from operations	$	23,545,003

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	12,318,798		$	23,688,971
Net realized gain (loss)		(148,095	)		32,820,078
Change in net unrealized appreciation		11,374,300			7,306,223
Net increase in net assets resulting from operations		23,545,003			63,815,272
Distributions to shareholders from net investment income:
Series I		(36,635,025	)		(54,918,096	)
Series II		(1,001,427	)		(859,253	)
Total distributions from net investment income		(37,636,452	)		(55,777,349	)
Share transactions–net:
Series I		(14,818,973	)		(128,842,349	)
Series II		260,528,168			9,854,940
Net increase (decrease) in net assets resulting from share transactions		245,709,195			(118,987,409	)
Net increase (decrease) in net assets		231,617,746			(110,949,486	)
Net assets:
Beginning of period		1,096,479,225			1,207,428,711
End of period (includes undistributed net investment income of $12,156,811 and $37,474,465, respectively)	$	1,328,096,971		$	1,096,479,225

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Government Securities Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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. Government Securities 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.
	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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	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.

Invesco V.I. Government Securities 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

Invesco V.I. Government Securities Fund

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 Daily 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 Canada Ltd. (formerly 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 May 2, 2011, 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 and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.60% and Series II shares to 0.85% of average daily net assets. Prior to May 2, 2011, the Adviser had contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of 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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; (5) expenses related to a merger or reorganization, as approved by the Fund’s Board of Trustees; and (6) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $494,216.

  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, 2011, 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, 2011, Invesco was paid $137,727 for accounting and fund administrative services and reimbursed $1,422,737 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, 2011, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

Invesco V.I. Government Securities Fund

  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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	11,543,695		$	—	$	—	$	11,543,695
U.S. Treasury Securities		—			138,266,102		—		138,266,102
U.S. Government Sponsored Securities		—			1,147,231,310		—		1,147,231,310
Foreign Government Debt Securities		—			33,412,532		—		33,412,532
Corporate Debt Securities		—			9,488,461		—		9,488,461
	$	11,543,695		$	1,328,398,405	$	—	$	1,339,942,100
Foreign Currency Contracts*		(535,849	)		—		—		(535,849	)
Total Investments	$	11,007,846		$	1,328,398,405	$	—	$	1,339,406,251

*  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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	1,549,313	$	(2,085,162	)

^(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin 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, 2011

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)
Interest rate risk	$	(1,223,641	)
Change in Unrealized Appreciation
Interest rate risk		6,046,692
Total	$	4,823,051

*  The average value of futures outstanding during the period was $416,954,452

Open Futures Contracts
								Unrealized
	Number of		Month/		Notional			Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
U.S. Treasury 10 Year Notes		1,878		September-2011/Long	$	229,732,219		$	369,572
Ultra U.S. Treasury Bonds		946		September-2011/Long		119,432,500			(1,750,495	)
U.S. Treasury 2 Year Notes		475		September-2011/Long		104,188,281			168,534
Subtotal					$	453,353,000		$	(1,212,389	)
U.S. Treasury 5 Year Notes		253		September-2011/Short	$	(30,156,414	)	$	(79,875	)
U.S. Treasury 30 Year Bonds		446		September-2011/Short		(54,871,938	)		756,415
Subtotal					$	(85,028,352	)	$	676,540
Total					$	368,324,648		$	(535,849	)

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended June 30, 2011, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $128.

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, 2011, the Fund paid legal fees of $1,440 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with 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 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.

Invesco V.I. Government Securities Fund

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	25,293,448

*  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 of May 2, 2011, the date of the reorganization of Invesco Van Kampen V.I. Government Fund, into the fund are realized on securities held in the Fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 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, 2011 was $198,340,433 and $247,586,256, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $30,059,011 and $26,521,825, 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	$	32,602,610
Aggregate unrealized (depreciation) of investment securities		(2,297,762	)
Net unrealized appreciation of investment securities	$	30,304,848
Cost of investments for tax purposes is $1,309,637,252.

Invesco V.I. Government Securities Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		5,819,921		$	69,476,999			14,868,780		$	182,569,736
Series II		1,255,547			14,879,530			1,086,469			13,335,480
Issued as reinvestment of dividends:
Series I		3,158,192			36,635,025			4,508,875			54,918,094
Series II		86,853			1,001,427			70,954			859,253
Issued in connection with acquisitions:(b)
Series I		2,587,718			30,250,210			—			—
Series II		22,298,634			259,005,451			—			—
Reacquired:
Series I		(12,710,467	)		(151,181,207	)		(29,794,392	)		(366,330,179	)
Series II		(1,224,145	)		(14,358,240	)		(355,134	)		(4,339,793	)
Net increase (decrease) in share activity		21,272,253		$	245,709,195			(9,614,448	)	$	(118,987,409	)

(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)

As of the opening of business on May 2, 2011, the Fund acquired all the net assets of Invesco Van Kampen V.I. Government Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Van Kampen V.I. Government Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 24,886,352 shares of the Fund for 32,516,244 shares outstanding of Invesco Van Kampen V.I. Government Fund as of the close of business on April 29, 2011. Each class of Invesco Van Kampen V.I. Government Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco Van Kampen V.I. Government Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco Van Kampen V.I. Government Fund’s net assets at that date of $289,255,661 including $4,992,514 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $1,059,348,706.

Invesco V.I. Government Securities 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				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 06/30/11	$	12.00	$	0.13	$	0.10		$	0.23		$	(0.43	)	$	—		$	(0.43	)	$	11.80		1.95	%	$	1,041,630		0.68	%(d)		0.77	%(d)		2.16	%(d)		22	%
Year ended 12/31/10		11.95		0.24		0.41			0.65			(0.60	)		—			(0.60	)		12.00		5.40			1,072,405		0.73			0.75			1.98			61
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
Series II
Six months ended 06/30/11		11.92		0.11		0.10			0.21			(0.41	)		—			(0.41	)		11.72		1.81			286,467		0.93	(d)		1.02	(d)		1.91	(d)		22
Year ended 12/31/10		11.88		0.22		0.40			0.62			(0.58	)		—			(0.58	)		11.92		5.10			24,074		0.98			1.00			1.73			61
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

(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. For the period ending June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $284,518,457 and sold of $2,947,012 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Van Kampen V.I. Government Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $1,050,229 and $113,845 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2,4		(06/30/11)		Period2,5		Ratio3
Series I	$	1,000.00	$	1,019.50	$	3.40	$	1,021.42	$	3.41		0.68	%
Series II		1,000.00		1,018.10		4.65		1,020.18		4.66		0.93

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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.
3	Effective May 2, 2011, 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 0.60% and 0.85% 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 0.60% and 0.85% for Series I and Series II shares, respectively.
4	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $3.00 and $4.25 for Series I and Series II shares, respectively.
5	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $3.01 and $4.26 for Series I and Series II shares, respectively.

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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – General U.S. Government Funds Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of the 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 performance of Series I shares of the Fund 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	3.37	%
Series II Shares	3.21
Barclays Capital U.S. Aggregate Index▼(Broad Market Index)	2.72
Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index▼ (Style-Specific Index)	4.98
Lipper VUF High Current Yield Bond Funds Category Average▼(Peer Group)	4.38
▼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. 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 Lipper VUF High Current Yield Bond Funds Category Average represents an average of all 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (5/1/98)	3.72	%
10 Years	7.38
5 Years	7.83
1 Year	13.27
Series II Shares
10 Years	7.14	%
5 Years	7.57
1 Year	13.01

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 0.80% and 1.05%, 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 1.09% 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. 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 June 30, 2013. See current prospectus for more information.

Invesco V.I. High Yield Fund

Schedule of Investments^(a)

June 30, 2011

(Unaudited)

	Principal
	Amount		Value
U.S. Dollar Denominated Bonds & Notes–88.13%
Aerospace & Defense–1.79%
Alliant Techsystems Inc., Sr. Unsec. Gtd. Sub. Notes, 6.88%, 09/15/20	$	35,000	$	36,488
BE Aerospace, Inc., Sr. Unsec. Notes, 6.88%, 10/01/20		85,000		89,250
8.50%, 07/01/18		180,000		195,975
Bombardier Inc. (Canada), Sr. Notes, 7.50%, 03/15/18(b)		30,000		33,713
7.75%, 03/15/20(b)		230,000		259,900
Hexcel Corp., Sr. Unsec. Sub. Global Notes, 6.75%, 02/01/15		162,000		166,050
Huntington Ingalls Industries Inc., Sr. Unsec. Gtd. Notes, 6.88%, 03/15/18(b)		65,000		66,787
7.13%, 03/15/21(b)		95,000		97,731
Spirit Aerosystems Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 12/15/20		240,000		245,400
Triumph Group, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 11/15/17		320,000		339,200
				1,530,494
Airlines–2.99%
American Airlines Inc., Sr. Sec. Gtd. Notes, 7.50%, 03/15/16(b)		115,000		112,988
American Airlines Pass Through Trust, Series 2011-1, Class B, Sec. Gtd. Pass Through Ctfs., 7.00%, 01/31/18(b)		80,000		75,600
Continental Airlines Inc.,
Series 2000-2, Class B, Sec. Sub. Pass Through Ctfs., 8.31%, 04/02/18		58,693		59,133
Series 2001-1, Class B, Sec. Sub. Pass Through Ctfs., 7.37%, 12/15/15		42,880		42,880
Series 2007-1, Class C, Sec. Sub. Global Pass Through Ctfs., 7.34%, 04/19/14		362,290		363,195
Series 2009-1, Sec. Pass Through Ctfs., 9.00%, 07/08/16		56,362		64,676
Series 2009-2, Class B, Sec. Global Pass Through Ctfs., 9.25%, 05/10/17		156,526		164,352
Delta Air Lines, Inc., Sec. Notes, 12.25%, 03/15/15(b)		85,000		94,988
Sr. Sec. Notes, 9.50%, 09/15/14(b)		251,000		268,570
Series 2002-1, Class C, Sec. Pass Through Ctfs., 7.78%, 01/02/12		9,495		9,447
Series 2007-1, Class C, Sec. Global Pass Through Ctfs., 8.95%, 08/10/14		128,746		132,608
Series 2010-1, Class B, Sec. Pass Through Ctfs., 6.38%, 01/02/16(b)		85,000		82,450
Series 2010-2, Class B, Sec. Pass Through Ctfs., 6.75%, 11/23/15		125,000		118,750
UAL Corp.,
Series 2007-1, Class A, Sec. Gtd. Global Pass Through Ctfs., 6.64%, 07/02/22		42,409		42,488
Series 2007-1, Class B, Sr. Sec. Gtd. Global Pass Through Ctfs., 7.34%, 07/02/19		119,072		114,309
Series 2009-1, Sr. Sec. Gtd. Global Pass Through Ctfs., 10.40%, 11/01/16		168,187		191,734
Series 2009-2, Class B, Sec. Gtd. Pass Through Ctfs., 12.00%, 01/15/16(b)		228,951		251,847
Series 2009-2A, Sec. Gtd. Global Pass Through Ctfs., 9.75%, 01/15/17		138,428		158,500
US Airways, Series 1998-1, Class C, Sec. Pass Through Ctfs., 6.82%, 01/30/14		234,563		215,212
				2,563,727
Alternative Carriers–1.29%
Cogent Communications Group, Inc., Sr. Sec. Gtd. Notes, 8.38%, 02/15/18(b)		395,000		407,837
Level 3 Communications Inc., Sr. Unsec. Notes, 11.88%, 02/01/19(b)		245,000		268,275
Level 3 Escrow, Inc., Sr. Unsec. Notes, 8.13%, 07/01/19(b)		95,000		96,188
Level 3 Financing Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 11/01/14		194,000		199,820
Sr. Unsec. Gtd. Notes, 9.38%, 04/01/19(b)		125,000		130,937
				1,103,057
Aluminum–0.62%
Century Aluminum Co., Sr. Sec. Gtd. Sub. Notes, 8.00%, 05/15/14		510,630		527,545
Apparel Retail–1.15%
Brown Shoe Co., Inc., Sr. Unsec. Gtd. Notes, 7.13%, 05/15/19(b)		50,000		48,250
Express LLC/Express Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/01/18		390,000		424,125
Gap, Inc. (The), Sr. Unsec. Notes, 5.95%, 04/12/21		135,000		130,781
J Crew Group, Inc., Sr. Notes, 8.13%, 03/01/19(b)		160,000		156,000
Limited Brands Inc.,
Sr. Unsec. Gtd. Global Notes, 8.50%, 06/15/19		140,000		159,950
Sr. Unsec. Gtd. Notes, 6.63%, 04/01/21		40,000		41,000
7.00%, 05/01/20		25,000		26,375
				986,481

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–2.79%
Hanesbrands Inc., Sr. Unsec. Gtd. Global Notes, 6.38%, 12/15/20	$	495,000	$	481,388
Jones Group Inc. (The), Sr. Unsec. Notes, 6.88%, 03/15/19		765,000		741,094
Levi Strauss & Co., Sr. Unsec. Global Notes, 7.63%, 05/15/20		525,000		527,625
Phillips-Van Heusen Corp., Sr. Unsec. Notes, 7.38%, 05/15/20		140,000		150,150
Quiksilver Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 04/15/15		505,000		491,112
				2,391,369
Auto Parts & Equipment–0.86%
Allison Transmission Inc., Sr. Unsec. Gtd Notes, 7.13%, 05/15/19(b)		280,000		273,700
Dana Holding Corp., Sr. Unsec. Notes, 6.50%, 02/15/19		85,000		84,787
6.75%, 02/15/21		65,000		64,675
Tenneco Inc., Sr. Gtd. Global Notes, 6.88%, 12/15/20		190,000		193,800
Sr. Unsec. Gtd. Global Notes, 7.75%, 08/15/18		110,000		116,050
				733,012
Automobile Manufacturers–0.66%
Chrysler Group LLC/CG Co-Issuer Inc., Sr. Sec. Gtd. Notes, 8.00%, 06/15/19(b)		200,000		196,500
Ford Motor Co., Sr. Unsec. Global Notes, 7.45%, 07/16/31		295,000		336,300
Motors Liquidation Corp., Sr. Unsec. Global Notes, 8.38%, 07/15/33*		755,000		22,650
Sr. Unsec. Notes, 7.20%*		445,000		13,350
				568,800
Biotechnology–0.29%
Giant Funding Corp., Sr. Sec. Notes, 8.25%, 02/01/18(b)		70,000		71,925
Savient Pharmaceuticals Inc., Sr. Unsec. Conv. Notes, 4.75%, 02/01/18		90,000		90,112
STHI Holding Corp., Sec. Gtd. Notes, 8.00%, 03/15/18(b)		85,000		86,700
				248,737
Broadcasting–0.49%
Allbritton Communications Co., Sr. Unsec. Global Notes, 8.00%, 05/15/18		130,000		132,600
Nielsen Finance LLC/Co., Sr. Unsec. Gtd. Notes, 7.75%, 10/15/18(b)		270,000		284,850
				417,450
Building Products–4.52%
Associated Materials LLC, Sr. Sec. Gtd. Notes, 9.13%, 11/01/17(b)		500,000		500,000
Building Materials Corp. of America,
Sr. Notes, 6.75%, 05/01/21(b)		150,000		150,000
6.88%, 08/15/18(b)		490,000		496,125
Sr. Sec. Gtd. Notes, 7.50%, 03/15/20(b)		370,000		388,962
Gibraltar Industries Inc., Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 12/01/15		305,000		309,194
Nortek Inc., Sr. Gtd. Notes, 8.50%, 04/15/21(b)		595,000		553,350
Sr. Unsec. Gtd. Notes, 10.00%, 12/01/18(b)		140,000		141,750
Ply Gem Industries Inc., Sr. Sec. Gtd. Notes, 8.25%, 02/15/18(b)		215,000		208,013
Sr. Unsec. Gtd. Sub. Global Notes, 13.13%, 07/15/14		265,000		279,575
Roofing Supply Group LLC/Roofing Supply Finance Inc., Sr. Sec. Notes, 8.63%, 12/01/17(b)		525,000		528,937
USG Corp.,
Sr. Unsec. Gtd. Notes, 8.38%, 10/15/18(b)		25,000		24,438
9.75%, 08/01/14(b)		105,000		110,775
Sr. Unsec. Notes, 9.75%, 01/15/18		180,000		178,650
				3,869,769
Cable & Satellite–1.25%
Cablevision Systems Corp., Sr. Unsec. Global Notes, 8.63%, 09/15/17		135,000		146,644
CSC Holdings LLC, Sr. Unsec. Global Notes, 8.63%, 02/15/19		115,000		130,237
EH Holding Corp., Sr. Sec. Notes, 6.50%, 06/15/19(b)		140,000		143,150
Sr. Unsec. Notes, 7.63%, 06/15/21(b)		80,000		82,000
Kabel BW Erste Beteiligungs GmbH/Kabel Baden-Wurtlemberg GmbH & Co. KG (Germany), Sr. Sec. Gtd. Notes, 7.50%, 03/15/19(b)		560,000		568,868
				1,070,899
Casinos & Gaming–5.87%
Ameristar Casinos Inc., Sr. Unsec. Gtd. Notes, 7.50%, 04/15/21(b)		120,000		124,200
Boyd Gaming Corp., Sr. Notes, 9.13%, 12/01/18(b)		35,000		36,050
Caesars Entertainment Operating Co. Inc., Sec. Global Notes, 12.75%, 04/15/18		265,000		265,662
Sec. Gtd. Global Notes, 10.00%, 12/15/18		80,000		72,600
Sr. Sec. Gtd. Global Notes, 11.25%, 06/01/17		346,000		384,060
Sr. Unsec. Gtd. Global Bonds, 5.63%, 06/01/15		389,000		317,035
CityCenter Holdings LLC/CityCenter Finance Corp., Sec. Gtd. PIK Notes, 10.75%, 01/15/17(b)		70,000		76,038
Sr. Sec. Gtd. Notes, 7.63%, 01/15/16(b)		15,000		15,525

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)
Great Canadian Gaming Corp. (Canada), Sr. Unsec. Gtd. Sub. Notes, 7.25%, 02/15/15(b)	$	245,000	$	249,900
Mandalay Resort Group, Sr. Unsec. Gtd. Sub. Notes, 7.63%, 07/15/13		200,000		197,000
MGM Resorts International,
Sr. Sec. Gtd. Global Notes, 9.00%, 03/15/20		50,000		55,000
Sr. Unsec. Gtd. Conv. Notes, 4.25%, 04/15/15		95,000		103,075
Sr. Unsec. Gtd. Global Notes, 6.63%, 07/15/15		393,000		373,350
6.75%, 04/01/13		405,000		407,025
Sr. Unsec. Gtd. Notes, 5.88%, 02/27/14		10,000		9,650
10.00%, 11/01/16(b)		115,000		122,762
Midwest Gaming Borrower LLC/ Midwest Finance Corp., Sr. Sec. Notes, 11.63%, 04/15/16(b)		45,000		47,813
Pinnacle Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 08/01/17		265,000		284,875
Scientific Games Corp., Sr. Unsec. Gtd. Sub. Global Notes, 8.13%, 09/15/18		35,000		36,575
Scientific Games International Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.25%, 06/15/19		195,000		212,550
Seneca Gaming Corp., Sr. Unsec. Gtd. Notes, 8.25%, 12/01/18(b)		95,000		98,563
Snoqualmie Entertainment Authority, Sr. Sec. Floating Rate Notes, 4.20%, 02/01/14(b)(c)		300,000		273,000
Sr. Sec. Notes, 9.13%, 02/01/15(b)		440,000		437,800
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
Sec. Gtd. First Mortgage Global Notes, 7.75%, 08/15/20		380,000		415,150
Sr. Sec. Gtd. First Mortgage Global Notes, 7.88%, 11/01/17		130,000		142,634
7.88%, 05/01/20		245,000		267,816
				5,025,708
Coal & Consumable Fuels–0.26%
Alpha Natural Resources Inc., Sr. Unsec. Gtd. Notes, 6.00%, 06/01/19		75,000		75,656
6.25%, 06/01/21		35,000		35,263
CONSOL Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.00%, 04/01/17		35,000		38,237
8.25%, 04/01/20		70,000		76,300
				225,456
Communications Equipment–0.51%
Avaya Inc., Sr. Sec. Gtd. Notes, 7.00%, 04/01/19(b)		385,000		365,750
CommScope Inc., Sr. Unsec. Gtd. Notes, 8.25%, 01/15/19(b)		70,000		72,450
				438,200
Computer & Electronics Retail–0.09%
RadioShack Corp., Sr. Gtd. Notes, 6.75%, 05/15/19(b)		25,000		24,250
Rent-A-Center Inc., Sr. Unsec. Gtd Global Notes, 6.63%, 11/15/20		50,000		50,000
				74,250
Computer Storage & Peripherals–0.53%
Seagate HDD Cayman (Cayman Islands), Sr. Unsec. Gtd. Notes, 6.88%, 05/01/20(b)		90,000		88,875
7.00%, 11/01/21(b)		365,000		362,262
				451,137
Construction & Engineering–1.48%
Dycom Investments Inc., Sr. Sub. Notes, 7.13%, 01/15/21(b)		100,000		102,500
Great Lakes Dredge & Dock Corp., Sr. Unsec. Gtd. Notes, 7.38%, 02/01/19(b)		70,000		69,475
MasTec, Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 02/01/17		455,000		466,375
Tutor Perini Corp., Sr. Unsec. Gtd. Global Notes, 7.63%, 11/01/18		650,000		625,625
				1,263,975
Construction & Farm Machinery & Heavy Trucks–1.35%
Case New Holland Inc., Sr. Notes, 7.88%, 12/01/17(b)		215,000		238,112
CNH America LLC, Sr. Unsec. Gtd. Notes, 7.25%, 01/15/16		60,000		64,800
Commercial Vehicle Group, Inc., Sr. Sec. Gtd. Notes, 7.88%, 04/15/19(b)		195,000		195,975
Manitowoc Co. Inc. (The), Sr. Unsec. Gtd. Notes, 8.50%, 11/01/20		105,000		112,875
Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21		400,000		436,000
Titan International Inc., Sr. Sec. Gtd. Notes, 7.88%, 10/01/17(b)		105,000		110,513
				1,158,275
Construction Materials–1.50%
Cemex Finance LLC, Sr. Sec. Gtd. Bonds, 9.50%, 12/14/16(b)		295,000		307,678
Cemex S.A.B. de C.V. (Mexico),
Sr. Sec. Gtd. Notes, 9.00%, 01/11/18(b)		200,000		204,779
Unsec. Sub. Conv. Notes, 4.88%, 03/15/15		100,000		99,625
Texas Industries Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 08/15/20		645,000		625,650
U.S. Concrete, Inc., Sr. Sec. Conv. Notes, 9.50%, 08/31/15(b)		40,000		48,200
				1,285,932

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–1.67%
Ally Financial, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/20	$	260,000	$	273,000
8.00%, 03/15/20		335,000		361,800
8.00%, 11/01/31		216,000		234,900
Ford Motor Credit Co. LLC, Sr. Unsec. Notes, 8.00%, 12/15/16		245,000		277,463
National Money Mart Co. (Canada), Sr. Unsec. Gtd. Global Notes, 10.38%, 12/15/16		255,000		281,137
				1,428,300
Data Processing & Outsourced Services–0.89%
CoreLogic, Inc., Sr. Unsec. Gtd. Notes, 7.25%, 06/01/21(b)		445,000		436,100
First Data Corp., Sr. Sec. Gtd. Notes, 7.38%, 06/15/19(b)		135,000		136,687
SunGard Data Systems Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/15/18		65,000		64,838
7.63%, 11/15/20		123,000		124,537
				762,162
Department Stores–0.72%
Sears Holdings Corp., Sec. Gtd. Notes, 6.63%, 10/15/18(b)		670,000		618,075
Distillers & Vintners–0.48%
CEDC Finance Corp. International, Inc., Sr. Sec. Gtd. Notes, 9.13%, 12/01/16(b)		100,000		93,000
Constellation Brands Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/15/17		295,000		321,550
				414,550
Diversified Banks–0.13%
RBS Capital Trust II, Jr. Unsec. Gtd. Sub. Global Bonds, 6.43%(d)(e)		150,000		107,813
Diversified Metals & Mining–0.61%
Midwest Vanadium Pty Ltd. (Australia), Sr. Sec. Gtd. Notes, 11.50%, 02/15/18(b)		65,000		64,956
Mirabela Nickel Ltd. (Australia), Sr. Unsec. Gtd. Notes, 8.75%, 04/15/18(b)		45,000		44,518
Taseko Mines Ltd. (Canada), Sr. Unsec. Gtd. Notes, 7.75%, 04/15/19		15,000		15,206
Thompson Creek Metals Co. Inc. (Canada), Sr. Unsec. Gtd. Notes, 7.38%, 06/01/18(b)		80,000		78,800
Vedanta Resources PLC (United Kingdom), Sr. Unsec. Notes, 9.50%, 07/18/18(b)		295,000		319,735
				523,215
Diversified Support Services–0.04%
Mobile Mini, Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 12/01/20		35,000		36,138
Electric Utilities–0.31%
LSP Energy L.P./LSP Batesville Funding Corp.,
Series C, Sr. Sec. Mortgage Bonds, 7.16%, 01/15/14		74,408		60,270
Series D, Sr. Sec. Bonds, 8.16%, 07/15/25		275,000		200,750
				261,020
Electrical Components & Equipment–0.08%
Polypore International Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 11/15/17		65,000		69,063
Electronic Manufacturing Services–0.49%
Sanmina-SCI Corp., Sr. Unsec. Gtd. Notes, 7.00%, 05/15/19(b)		440,000		418,000
Environmental & Facilities Services–0.35%
Clean Harbors Inc., Sr. Sec. Gtd. Notes, 7.63%, 08/15/16(b)		155,000		165,850
EnergySolutions Inc./LLC, Sr. Unsec. Gtd. Global Notes, 10.75%, 08/15/18		125,000		134,375
				300,225
Food Retail–0.46%
New Albertsons Inc., Sr. Unsec. Bonds, 8.00%, 05/01/31		205,000		176,813
Simmons Foods Inc., Sec. Notes, 10.50%, 11/01/17(b)		205,000		217,812
				394,625
Forest Products–0.29%
Millar Western Forest Products Ltd. (Canada), Sr. Notes, 8.50%, 04/01/21(b)		260,000		235,625
Sino-Forest Corp. (Canada), Sr. Unsec. Gtd. Notes, 6.25%, 10/21/17(b)		30,000		13,950
				249,575
Gas Utilities–0.55%
Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Notes, 6.50%, 05/01/21(b)		240,000		226,800
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20		235,000		245,575
				472,375
Health Care Equipment–0.52%
DJO Finance LLC/Corp., Sr. Unsec. Gtd. Global Notes, 10.88%, 11/15/14		195,000		207,675
Sr. Unsec. Gtd. Notes, 7.75%, 04/15/18(b)		35,000		35,438
Sr. Unsec. Gtd. Sub. Notes, 9.75%, 10/15/17(b)		130,000		131,625
Hanger Orthopedic Group Inc., Sr. Unsec. Gtd. Global Notes, 7.13%, 11/15/18		65,000		66,462
				441,200
Health Care Facilities–2.17%
HCA, Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 02/15/20		288,000		314,640
Sr. Unsec. Notes, 7.19%, 11/15/15		155,000		158,100

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–(continued)
Health Management Associates Inc., Sr. Sec. Gtd. Notes, 6.13%, 04/15/16	$	85,000	$	88,188
Healthsouth Corp., Sr. Unsec. Gtd. Notes, 7.25%, 10/01/18		90,000		94,275
7.75%, 09/15/22		85,000		89,462
8.13%, 02/15/20		90,000		97,200
Select Medical Holdings Corp., Sr. Unsec. Floating Rate Global Notes, 6.21%, 09/15/15(c)		155,000		149,575
Tenet Healthcare Corp.,
Sr. Sec. Gtd. Global Notes, 10.00%, 05/01/18		180,000		203,850
Sr. Unsec. Global Notes, 8.00%, 08/01/20		60,000		61,500
9.25%, 02/01/15		545,000		598,819
				1,855,609
Health Care Services–0.65%
DaVita Inc., Sr. Unsec. Gtd. Notes, 6.38%, 11/01/18		65,000		65,488
Radnet Management Inc., Sr. Unsec. Gtd. Global Notes, 10.38%, 04/01/18		225,000		230,625
Universal Hospital Services Inc., Sec. Global Notes, 8.50%, 06/01/15		250,000		257,812
				553,925
Health Care Supplies–0.16%
Alere Inc., Sr. Unsec. Gtd. Sub. Notes, 9.00%, 05/15/16		135,000		141,075
Health Care Technology–0.39%
MedAssets Inc., Sr. Unsec. Gtd. Notes, 8.00%, 11/15/18(b)		330,000		333,300
Home Furnishings–0.35%
American Standard Americas, Sr. Sec. Notes, 10.75%, 01/15/16(b)		310,000		302,250
Homebuilding–0.73%
Beazer Homes USA Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 07/15/15		110,000		96,250
8.13%, 06/15/16		300,000		262,875
K. Hovnanian Enterprises Inc., Sr. Sec. Gtd. Global Notes, 10.63%, 10/15/16		120,000		120,000
M/I Homes Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 11/15/18		95,000		94,762
Standard Pacific Corp., Sr. Sec. Gtd. Notes, 8.38%, 05/15/18		55,000		54,863
				628,750
Hotels, Resorts & Cruise Lines–0.53%
Royal Caribbean Cruises Ltd., Sr. Unsec. Global Notes, 7.25%, 03/15/18		85,000		91,906
7.50%, 10/15/27		140,000		142,450
Starwood Hotels & Resorts Worldwide, Inc., Sr. Unsec. Notes, 7.15%, 12/01/19		165,000		184,800
Wyndham Worldwide Corp., Sr. Unsec. Notes, 5.63%, 03/01/21		35,000		35,219
				454,375
Household Products–0.39%
Central Garden and Pet Co., Sr. Gtd. Sub. Notes, 8.25%, 03/01/18		325,000		337,187
Housewares & Specialties–0.03%
Jarden Corp., Sr. Unsec. Gtd. Notes, 6.13%, 11/15/22		25,000		24,938
Independent Power Producers & Energy Traders–0.93%
AES Corp. (The), Sr. Unsec. Global Notes, 7.75%, 10/15/15		340,000		367,200
8.00%, 10/15/17		190,000		203,300
AES Red Oak LLC, Series A, Sr. Sec. Bonds, 8.54%, 11/30/19		219,717		227,408
				797,908
Industrial Conglomerates–0.00%
Indalex Holding Corp., Series B, Sec. Gtd. Global Notes, 11.50%, 02/01/14(f)		230,000		2,013
Industrial Machinery–0.64%
Cleaver-Brooks Inc., Sr. Sec. Notes, 12.25%, 05/01/16(b)		305,000		319,869
Columbus McKinnon Corp., Sr. Unsec. Gtd. Sub. Global Notes, 7.88%, 02/01/19		25,000		25,438
Mueller Water Products Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 09/01/20		40,000		43,800
SPX Corp., Sr. Unsec. Gtd. Notes, 6.88%, 09/01/17(b)		145,000		155,512
				544,619
Industrial REIT’s–0.13%
DuPont Fabros Technology L.P., Sr. Unsec. Gtd. Global Notes, 8.50%, 12/15/17		100,000		109,250
Integrated Telecommunication Services–1.36%
Integra Telecom Holdings, Inc., Sr. Sec. Notes, 10.75%, 04/15/16(b)		200,000		203,500
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.25%, 04/01/19(b)		130,000		129,675
7.25%, 10/15/20(b)		470,000		468,825
7.50%, 04/01/21(b)		360,000		359,100
				1,161,100
Internet Retail–0.30%
Travelport LLC, Sr. Unsec. Gtd. Global Notes, 9.88%, 09/01/14		105,000		97,650

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Internet Retail–(continued)
Travelport LLC/Inc., Sr. Unsec. Gtd. Global Notes, 9.00%, 03/01/16	$	175,000	$	154,875
				252,525
Internet Software & Services–0.33%
Equinix Inc., Sr. Unsec. Notes, 8.13%, 03/01/18		255,000		279,225
Investment Banking & Brokerage–0.85%
Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19(b)		325,000		356,000
E*Trade Financial Corp., Sr. Unsec. Notes, 6.75%, 06/01/16		100,000		98,625
7.88%, 12/01/15		275,000		276,375
				731,000
Leisure Facilities–0.08%
Speedway Motorsports Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 02/01/19		70,000		70,175
Leisure Products–0.05%
Toys R US-Delaware Inc., Sr. Sec. Gtd. Notes, 7.38%, 09/01/16(b)		40,000		40,600
Life Sciences Tools & Services–0.23%
Patheon Inc. (Canada), Sr. Sec. Gtd. Notes, 8.63%, 04/15/17(b)		190,000		192,850
Marine–0.32%
CMA CGM S.A. (France), Sr. Unsec. Notes, 8.50%, 04/15/17(b)		150,000		126,563
Navios Maritime Acquisition Corp./Navios Acquisition Finance US Inc. (Greece), Sr. Sec. Gtd. Notes, 8.63%, 11/01/17(b)		40,000		40,944
Stena A.B. (Sweden), Sr. Unsec. Global Notes, 7.00%, 12/01/16		105,000		103,031
				270,538
Metal & Glass Containers–0.08%
Ball Corp., Sr. Unsec. Gtd. Notes, 5.75%, 05/15/21		65,000		65,488
Movies & Entertainment–1.47%
AMC Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 06/01/19		210,000		222,337
Sr. Unsec. Gtd. Sub. Notes, 9.75%, 12/01/20(b)		400,000		406,000
Cinemark USA Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 06/15/19		155,000		170,500
NAI Entertainment Holdings LLC, Sr. Sec. Notes, 8.25%, 12/15/17(b)		430,000		463,325
				1,262,162
Multi-Line Insurance–2.75%
American International Group, Inc., Jr. Sub. Global Deb., 8.18%, 05/15/58		380,000		416,100
Fairfax Financial Holdings Ltd. (Canada), Sr. Notes, 5.80%, 05/15/21(b)		255,000		246,713
Hartford Financial Services Group Inc. (The), Jr. Unsec. Sub. Deb., 8.13%, 06/15/38		175,000		187,847
Sr. Unsec. Global Notes, 5.95%, 10/15/36		90,000		85,082
Liberty Mutual Group Inc., Jr. Unsec. Gtd. Sub. Bonds, 7.80%, 03/15/37(b)		495,000		492,525
Sr. Unsec. Gtd. Notes, 5.00%, 06/01/21(b)		260,000		249,065
Nationwide Mutual Insurance Co., Sub. Notes, 9.38%, 08/15/39(b)		545,000		680,397
				2,357,729
Multi-Sector Holdings–0.45%
Reynolds Group Issuer Inc./LLC/Luxembourg S.A., Sr. Sec. Gtd. Notes, 7.13%, 04/15/19(b)		200,000		199,500
Sr. Unsec. Gtd. Notes, 8.25%, 02/15/21(b)		200,000		188,000
				387,500
Multi-Utilities–0.00%
CMS Energy Corp., Sr. Unsec. Notes, 6.30%, 02/01/12		3,329		3,412
Office Services & Supplies–0.35%
IKON Office Solutions, Inc., Sr. Unsec. Notes, 6.75%, 12/01/25		265,000		261,025
Interface Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 12/01/18		35,000		36,794
				297,819
Oil & Gas Drilling–0.18%
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes, 6.63%, 11/15/20		150,000		153,375
Oil & Gas Equipment & Services–0.96%
Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17		300,000		314,625
Calfrac Holdings L.P., Sr. Unsec. Notes, 7.50%, 12/01/20(b)		70,000		71,225
Key Energy Services, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 03/01/21		295,000		292,603
SESI, LLC, Sr. Unsec. Gtd. Notes, 6.38%, 05/01/19(b)		145,000		142,100
				820,553
Oil & Gas Exploration & Production–7.28%
Berry Petroleum Co., Sr. Unsec. Notes, 6.75%, 11/01/20		95,000		95,950
Brigham Exploration Co., Sr. Unsec. Gtd. Notes, 6.88%, 06/01/19(b)		40,000		39,900
Chaparral Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 09/01/21		360,000		366,300
8.88%, 02/01/17		295,000		303,850
Chesapeake Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 11/15/20		230,000		244,375
Sr. Unsec. Gtd. Notes, 6.13%, 02/15/21		185,000		188,006
Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17		125,000		131,719

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–(continued)
Concho Resources Inc., Sr. Unsec. Gtd. Notes, 6.50%, 01/15/22	$	95,000	$	95,713
7.00%, 01/15/21		60,000		61,500
Continental Resources, Inc., Sr. Unsec. Gtd. Global Notes, 7.13%, 04/01/21		85,000		89,994
7.38%, 10/01/20		230,000		244,663
8.25%, 10/01/19		130,000		142,188
Delta Petroleum Corp., Sr. Unsec. Gtd. Sub. Global Notes, 7.00%, 04/01/15		525,000		404,250
EXCO Resources, Inc., Sr. Unsec. Gtd. Notes, 7.50%, 09/15/18		550,000		536,250
Forest Oil Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 06/15/19		370,000		378,787
Harvest Operations Corp. (Canada), Sr. Unsec. Gtd. Notes, 6.88%, 10/01/17(b)		210,000		217,350
McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14		190,000		206,150
Newfield Exploration Co., Sr. Unsec. Sub. Global Notes, 7.13%, 05/15/18		120,000		127,800
OGX Petroleo e Gas Participacoes S.A. (Brazil), Sr. Unsec. Gtd. Notes, 8.50%, 06/01/18(b)		260,000		266,582
Petrohawk Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 08/15/18		425,000		436,687
Sr. Unsec. Gtd. Notes, 6.25%, 06/01/19(b)		335,000		326,625
Pioneer Natural Resources Co., Sr. Unsec. Notes, 6.65%, 03/15/17		235,000		257,325
Plains Exploration & Production Co., Sr. Unsec. Gtd. Notes, 6.63%, 05/01/21		85,000		85,425
7.63%, 06/01/18		250,000		263,750
8.63%, 10/15/19		100,000		108,500
Range Resources Corp., Sr. Unsec. Gtd. Sub. Notes, 5.75%, 06/01/21		340,000		334,475
SM Energy Co., Sr. Unsec. Notes, 6.63%, 02/15/19(b)		140,000		140,700
Whiting Petroleum Corp., Sr. Unsec. Gtd. Sub. Notes, 6.50%, 10/01/18		140,000		143,325
				6,238,139
Oil & Gas Refining & Marketing–0.75%
Tesoro Corp., Sr. Unsec. Gtd. Global Bonds, 6.50%, 06/01/17		80,000		81,700
United Refining Co., Sr. Sec. Gtd. Global Notes, 10.50%, 02/28/18		560,000		561,400
				643,100
Oil & Gas Storage & Transportation–2.15%
Chesapeake Midstream Partners L.P./CHKM Finance Corp., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/21(b)		115,000		113,562
Copano Energy LLC/Copano Energy Finance Corp., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/21		310,000		308,450
Inergy L.P./Inergy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 08/01/21(b)		175,000		175,219
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.75%, 11/01/20		95,000		96,900
Series B, Sr. Unsec. Gtd. Global Notes, 8.75%, 04/15/18		375,000		408,281
Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18		375,000		369,375
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 02/01/21(b)		275,000		262,625
Teekay Corp. (Canada), Sr. Unsec. Global Notes, 8.50%, 01/15/20		105,000		109,200
				1,843,612
Other Diversified Financial Services–1.67%
International Lease Finance Corp.,
Sr. Sec. Notes, 6.75%, 09/01/16(b)		200,000		212,375
7.13%, 09/01/18(b)		200,000		213,500
Sr. Unsec. Global Notes, 5.75%, 05/15/16		65,000		64,147
6.25%, 05/15/19		100,000		98,000
8.63%, 09/15/15		490,000		533,794
8.75%, 03/15/17		120,000		131,625
Sr. Unsec. Notes, 8.25%, 12/15/20		110,000		119,762
Series R, Sr. Unsec. Medium-Term Notes, 5.65%, 06/01/14		60,000		60,450
				1,433,653
Packaged Foods & Meats–0.41%
Chiquita Brands International, Inc., Sr. Unsec. Global Notes, 8.88%, 12/01/15		105,000		108,281
Del Monte Foods Co., Sr. Unsec. Gtd. Notes, 7.63%, 02/15/19(b)		180,000		182,700
Dole Food Co. Inc., Sr. Sec. Gtd. Notes, 8.00%, 10/01/16(b)		60,000		63,150
				354,131
Paper Packaging–0.31%
Cascades Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20		250,000		261,250
Paper Products–1.63%
Boise Cascade LLC, Sr. Unsec. Gtd. Sub. Global Notes, 7.13%, 10/15/14		750,000		744,375
Clearwater Paper Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 11/01/18		225,000		231,187
Mercer International Inc., Sr. Unsec. Gtd. Global Notes, 9.50%, 12/01/17		205,000		221,400

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 Products–(continued)
P.H. Glatfelter Co., Sr. Unsec. Gtd. Global Notes,
7.13%, 05/01/16	$	90,000	$	93,038
7.13%, 05/01/16		105,000		108,544
				1,398,544
Personal Products–0.22%
Elizabeth Arden Inc., Sr. Unsec. Global Notes, 7.38%, 03/15/21		40,000		41,800
NBTY Inc., Sr. Unsec. Gtd. Notes, 9.00%, 10/01/18(b)		90,000		94,612
Sabra Health Care L.P./Sabra Capital Corp., Sr. Unsec. Gtd. Global Notes, 8.13%, 11/01/18		50,000		50,063
				186,475
Pharmaceuticals–0.85%
Aptalis Pharma Inc., Sr. Unsec. Gtd. Global Notes, 12.75%, 03/01/16		95,000		104,381
Elan Finance PLC/Corp. (Ireland), Sr. Unsec. Gtd. Global Notes, 8.75%, 10/15/16		105,000		111,825
Sr. Unsec. Gtd. Notes, 8.75%, 10/15/16(b)		100,000		106,500
Endo Pharmaceuticals Holdings Inc., Sr. Unsec. Gtd. Notes, 7.00%, 12/15/20(b)		30,000		30,600
Mylan Inc., Sr. Unsec. Gtd. Notes, 6.00%, 11/15/18(b)		135,000		137,700
Valeant Pharmaceuticals International, Sr. Unsec. Gtd. Notes, 6.75%, 10/01/17(b)		85,000		83,194
6.75%, 08/15/21(b)		135,000		127,912
7.00%, 10/01/20(b)		30,000		28,875
				730,987
Property & Casualty Insurance–0.48%
QBE Capital Funding III Ltd. (Botswana), Unsec. Sub. Gtd. Variable Rate Notes, 7.25%, 05/24/41(b)(c)		200,000		198,500
XL Group PLC (Ireland), Series E, Jr. Sub. Global Pfd. Bonds, 6.50%(e)		225,000		208,125
				406,625
Publishing–0.03%
MediMedia USA Inc., Sr. Sub. Notes, 11.38%, 11/15/14(b)		30,000		26,025
Railroads–0.35%
Kansas City Southern de Mexico S.A. de C.V. (Mexico),
Sr. Unsec. Global Notes, 8.00%, 02/01/18		255,000		278,930
Sr. Unsec. Notes, 6.13%, 06/15/21(b)		20,000		20,116
				299,046
Real Estate Services–0.26%
CB Richard Ellis Services Inc., Sr. Unsec. Gtd. Global Notes, 6.63%, 10/15/20		215,000		221,987
Regional Banks–1.63%
AmSouth Bancorp., Unsec. Sub. Deb., 6.75%, 11/01/25		75,000		66,938
BB&T Capital Trust II, Jr. Unsec. Gtd. Sub. Global Notes, 6.75%, 06/07/36		180,000		180,464
Regions Financial Corp., Unsec. Sub. Notes, 7.38%, 12/10/37		465,000		439,425
Susquehanna Capital II, Jr. Ltd. Gtd. Sub. Notes, 11.00%, 03/23/40		175,000		188,527
Synovus Financial Corp., Unsec. Sub. Global Notes, 5.13%, 06/15/17		310,000		275,900
Zions Bancorp., Unsec. Sub. Notes, 6.00%, 09/15/15		235,000		243,812
				1,395,066
Research & Consulting Services–0.32%
FTI Consulting Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 10/01/20		275,000		277,062
Semiconductor Equipment–0.76%
Amkor Technology Inc., Sr. Unsec. Global Notes, 7.38%, 05/01/18		285,000		292,837
Sr. Unsec. Notes, 6.63%, 06/01/21(b)		210,000		204,750
Sensata Technologies B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 6.50%, 05/15/19(b)		150,000		149,240
				646,827
Semiconductors–0.87%
Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 9.25%, 04/15/18(b)		125,000		135,625
Sr. Unsec. Gtd. Notes, 8.05%, 02/01/20(b)		325,000		326,625
10.75%, 08/01/20(b)		245,000		279,300
				741,550
Specialized Consumer Services–0.05%
Carriage Services Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/15		45,000		45,225
Specialized Finance–0.91%
CIT Group Inc., Sec. Bonds, 7.00%, 05/02/17(b)		570,000		567,863
Sec. Gtd. Notes, 6.63%, 04/01/18(b)		205,000		214,609
				782,472
Specialized REIT’s–0.71%
Host Hotels & Resorts L.P.,
Sr. Gtd. Global Notes, 6.00%, 11/01/20		205,000		205,256
Sr. Notes, 5.88%, 06/15/19(b)		55,000		55,275
MPT Operating Partnership L.P./MPT Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 05/01/21(b)		200,000		197,023
OMEGA Healthcare Investors Inc., Sr. Unsec. Gtd. Notes, 6.75%, 10/15/22(b)		155,000		153,450
				611,004

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Specialty Chemicals–1.02%
Ferro Corp., Sr. Unsec. Notes, 7.88%, 08/15/18	$	260,000	$	270,400
Nalco Co., Sr. Unsec. Gtd. Notes, 6.63%, 01/15/19(b)		65,000		66,463
NewMarket Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/16		150,000		157,031
PolyOne Corp., Sr. Unsec. Notes, 7.38%, 09/15/20		360,000		380,250
				874,144
Specialty Stores–0.32%
Michaels Stores Inc., Sr. Unsec. Gtd. Notes, 7.75%, 11/01/18(b)		135,000		134,663
Sr. Unsec. Gtd. Sub. Disc. Global Notes, 13.00%, 11/01/16(g)		135,000		140,062
				274,725
Steel–0.95%
AK Steel Corp., Sr. Unsec. Gtd. Notes, 7.63%, 05/15/20		285,000		293,550
APERAM (Luxembourg), Sr. Unsec. Notes, 7.38%, 04/01/16(b)		150,000		150,243
FMG Resources Pty Ltd. (Australia), Sr. Unsec. Gtd. Notes, 6.38%, 02/01/16(b)		175,000		175,439
United States Steel Corp., Sr. Unsec. Notes, 7.00%, 02/01/18		190,000		193,325
				812,557
Systems Software–1.26%
Allen Systems Group Inc., Sec. Gtd. Notes, 10.50%, 11/15/16(b)		615,000		621,150
Vangent Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.63%, 02/15/15		455,000		461,825
				1,082,975
Tires & Rubber–0.43%
Cooper Tire & Rubber Co., Sr. Unsec. Notes, 8.00%, 12/15/19		350,000		371,875
Trading Companies & Distributors–1.93%
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 01/15/19		370,000		375,550
H&E Equipment Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16		485,000		497,125
Hertz Corp. (The),
Sr. Unsec. Gtd. Global Notes, 8.88%, 01/01/14		2,569		2,633
Sr. Unsec. Gtd. Notes, 6.75%, 04/15/19(b)		135,000		132,975
7.38%, 01/15/21(b)		285,000		289,987
7.50%, 10/15/18(b)		130,000		133,575
Interline Brands, Inc., Sr. Unsec. Gtd. Global Notes, 7.00%, 11/15/18		105,000		106,575
RSC Equipment Rental Inc./RSC Holdings III LLC, Sr. Unsec. Gtd. Global Notes, 8.25%, 02/01/21		110,000		110,413
				1,648,833
Wireless Telecommunication Services–5.84%
Clearwire Communications LLC/Clearwire Finance, Inc.,
Sr. Sec. Gtd. Notes, 12.00%, 12/01/15(b)		610,000		658,800
Sr. Unsec. Gtd. Conv. Notes, 8.25%, 12/01/17(b)(h)		60,000		53,550
Cricket Communications, Inc., Sr. Notes, 7.75%, 10/15/20(b)		120,000		116,400
Sr. Sec. Gtd. Global Notes, 7.75%, 05/15/16		225,000		238,781
Sr. Unsec. Gtd. Global Notes, 7.75%, 10/15/20		420,000		412,650
Digicel Group Ltd. (Bermuda), Sr. Unsec. Notes, 8.88%, 01/15/15(b)		100,000		102,375
Digicel Ltd. (Bermuda), Sr. Unsec. Notes, 8.25%, 09/01/17(b)		255,000		267,113
MetroPCS Wireless Inc., Sr. Unsec. Gtd. Notes, 6.63%, 11/15/20		235,000		231,475
7.88%, 09/01/18		190,000		201,044
SBA Telecommunications Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 08/15/19		240,000		256,500
Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.90%, 05/01/19		700,000		725,375
Sprint Nextel Corp., Sr. Unsec. Notes, 8.38%, 08/15/17		560,000		614,600
VimpelCom (Ireland), Sec. Notes, 7.75%, 02/02/21(b)		400,000		411,170
Wind Acquisition Finance S.A. (Luxembourg), Sr. Sec. Gtd. Notes, 11.75%, 07/15/17(b)		625,000		712,125
				5,001,958
Total U.S. Dollar Denominated Bonds & Notes (Cost $73,136,073)				75,471,706
Non-U.S. Dollar Denominated Bonds & Notes–13.08%(i)
Belgium–0.48%
Ontex IV S.A., Sr. Unsec. Gtd. Notes, 9.00%, 04/15/19(b)	EUR	300,000		410,157
Canada–0.25%
Gateway Casinos & Entertainment Ltd., Sec. Gtd. Notes, 8.88%, 11/15/17(b)	CAD	200,000		220,085
Croatia–0.36%
Agrokor D.D., Sr. Unsec. Gtd. Medium-Term Euro Notes, 10.00%, 12/07/16	EUR	205,000		310,755
Czech Republic–0.21%
CET 21 spol sro, Sr. Sec. Notes, 9.00%, 11/01/17(b)	EUR	115,000		177,662

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Germany–2.03%
Hapag-Lloyd AG, Sr. Unsec. Gtd. Notes, 9.00%, 10/15/15(b)	EUR	300,000	$	443,884
Kabel Deutschland Vetrieb und Service GmbH & Co. K.G., Sr. Sec. Notes, 6.50%, 06/29/18(b)	EUR	205,000		298,006
KION Finance S.A., Sr. Sec. Gtd Notes, 7.88%, 04/15/18(b)	EUR	400,000		567,184
KUKA A.G., REGS, Sr. Sec. Gtd. Sub. Medium-Term Euro Notes, 8.75%, 11/15/17(b)	EUR	165,000		256,702
Styrolution GmbH, REGS, Sr. Sec. Euro Notes, 7.63%, 05/15/16(b)	EUR	120,000		171,461
				1,737,237
Ireland–1.97%
Ardagh Packaging Finance PLC, Sr. Unsec. Gtd. Notes, 9.25%, 10/15/20(b)	EUR	400,000		594,021
Bord Gais Eireann, Sr. Unsec. Medium-Term Euro Notes, 5.75%, 06/16/14	EUR	255,000		359,073
Nara Cable Funding Ltd., Sr. Sec. Notes, 8.88%, 12/01/18(b)	EUR	500,000		734,366
				1,687,460
Luxembourg–2.28%
Boardriders S.A., Sr. Notes, 8.88%, 12/15/17(b)	EUR	100,000		152,676
Cirsa Funding Luxembourg S.A., Sr. Unsec. Gtd. Notes, 8.75%, 05/15/18(b)	EUR	180,000		266,004
Codere Finance Luxembourg S.A., Sr. Sec. Gtd. Notes, 8.25%, 06/15/15(b)	EUR	100,000		147,961
ConvaTec Healthcare S.A., Sr. Sec. Gtd. Notes, 7.38%, 12/15/17(b)	EUR	200,000		291,571
REGS, Sr. Unsec. Gtd. Euro Notes, 10.88%, 12/15/18(b)	EUR	100,000		150,862
Mark IV Europe Lux SCA/Mark IV USA SCA, Sr. Sec. Gtd. Notes, 8.88%, 12/15/17(b)	EUR	300,000		463,467
TMD Friction Finance S.A., Sr. Sec. Gtd. Bonds, 10.75%, 05/15/17(b)	EUR	210,000		333,565
Xefin Lux SCA, Sr. Sec. Notes, 8.00%, 06/01/18(b)	EUR	100,000		146,692
				1,952,798
Netherlands–1.71%
Boats Investments B.V., Series 97, Sec. PIK Medium-Term Euro Notes, 11.00%, 03/31/17	EUR	77,113		101,513
Carlson Wagonlit B.V., Sr. Gtd. Floating Rate Notes, 7.14%, 05/01/15(b)(c)	EUR	140,000		198,007
Elster Finance B.V., REGS, Sr. Unsec. Gtd. Medium-Term Euro Notes, 6.25%, 04/15/18(b)	EUR	200,000		289,395
Goodyear Dunlop Tires Europe B.V., Sr. Unsec. Gtd. Notes, 6.75%, 04/15/19(b)	EUR	300,000		431,916
Polish Television Holding B.V., REGS, Sr. Sec. Medium-Term Euro Notes, 11.25%, 05/15/17(b)(g)	EUR	110,000		166,746
Ziggo Bond Co. B.V., Sr. Sec. Gtd. Notes, 8.00%, 05/15/18(b)	EUR	185,000		276,412
				1,463,989
Sweden–0.19%
TVN Finance Corp. II A.B., REGS, Sr. Unsec. Gtd. Euro Notes, 10.75%, 11/15/17(b)	EUR	100,000		160,291
United Kingdom–3.06%
Bakkavor Finance 2 PLC, REGS, Sr. Sec. Gtd. Euro Notes, 8.25%, 02/15/18(b)	GBP	200,000		277,682
Exova Ltd., REGS, Sr. Unsec. Gtd. Euro Notes, 10.50%, 10/15/18(b)	GBP	200,000		327,039
Infinis PLC, Sr. Sec. Notes, 9.13%, 12/15/14(b)	GBP	80,000		134,668
ITV PLC, Series 2006-1 Tranche 1, Unsec. Gtd. Unsub. Medium-Term Euro Notes, 7.38%, 01/05/17	GBP	100,000		163,318
Kerling PLC, Sr. Sec. Gtd. Notes, 10.63%, 02/01/17(b)	EUR	130,000		200,364
Odeon & UCI Finco PLC,
Sr. Sec. Gtd. Floating Rate Notes, 6.44%, 08/01/18(b)(c)	EUR	310,000		436,196
Sr. Sec. Gtd. Notes, 9.00%, 08/01/18(b)	GBP	210,000		328,644
Pipe Holdings PLC, REGS, Sr. Sec. Euro Bonds, 9.50%, 11/01/15(b)	GBP	200,000		325,033
R&R Ice Cream PLC, Sr. Sec. Gtd. Notes, 8.38%, 11/15/17(b)	EUR	300,000		428,652
				2,621,596
United States–0.54%
CEDC Finance Corp. International Inc., Sr. Sec. Gtd. Notes, 8.88%, 12/01/16(b)	EUR	355,000		460,892
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $10,866,167)				11,202,922
	Shares
Preferred Stocks–2.09%
Automobile Manufacturers–0.20%
General Motors Co., Series B, $2.38 Conv. Pfd.		3,580		174,489
Consumer Finance–1.12%
Ally Financial, Inc., Series A, 8.50% Pfd.		7,845		196,360
Series G, 7.00% Pfd.(b)		581		546,068
GMAC Capital Trust I, Series 2, 8.13% Pfd.		8,630		220,928
				963,356
Industrial REIT’s–0.09%
DuPont Fabros Technology Inc., Series B, 7.63% Pfd.		3,020		75,168
Regional Banks–0.38%
Zions Bancorp., Series C, 9.50% Pfd.		12,400		324,136

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

Invesco V.I. High Yield Fund

	Shares		Value
Research & Consulting Services–0.14%
Nielsen Holdings N.V. (Netherlands), $3.13 Conv. Pfd.		1,885	$	116,516
Tires & Rubber–0.16%
Goodyear Tire & Rubber Co. (The), $2.94 Conv. Pfd.		2,490		138,494
Total Preferred Stocks (Cost $1,569,152)				1,792,159
Common Stocks & Other Equity Interests–0.91%
Automobile Manufacturers–0.35%
General Motors Co.(j)*		4,667		141,690
General Motors Co., Wts. expiring 07/10/16(j)*		4,242		90,779
General Motors Co., Wts. expiring 07/10/19(j)*		4,242		67,575
				300,044
Broadcasting–0.01%
Adelphia Communications Corp.(k)		—		4,056
Adelphia Recovery Trust, Series ACC-1(k)		318,570		32
Adelphia Recovery Trust, Series ARAHOVA(k)		109,170		4,367
				8,455
Building Products–0.01%
Nortek, Inc.(j)		215		7,738
Construction Materials–0.21%
U.S. Concrete, Inc.(j)		20,786		181,878
Integrated Telecommunication Services–0.31%
Hawaiian Telcom Holdco Inc.–Wts. expiring 10/28/15(j)		1,527		21,378
Largo Limited (Luxembourg), Class A(j)		17,563		24,279
Class B(j)		158,069		218,518
				264,175
Publishing–0.00%
Reader’s Digest Association Inc. (The), Wts., expiring 02/19/14(j)		669		2,007
Semiconductors–0.02%
MagnaChip Semiconductor LLC(j)		1,372		14,225
Total Common Stocks & Other Equity Interests (Cost $2,347,420)				778,522
	Principal
	Amount
Bundled Securities–0.08%
Investment Banking & Brokerage–0.08%
Targeted Return Index Securities Trust, Series HY 2006-1, Sec. Variable Rate Bonds, 7.12%, 05/01/16 (Acquired 08/15/08; Cost $67,318) (Cost $67,318)(b)(c)	$	70,000		69,417
TOTAL INVESTMENTS–104.29% (Cost $87,986,130)				89,314,726
OTHER ASSETS LESS LIABILITIES–(4.29)%				(3,675,177	)
NET ASSETS–100.00%			$	85,639,549

Investment Abbreviations:

CAD	– Canadian Dollar
Conv.	– Convertible
Ctfs.	– Certificates
Deb.	– Debentures
Disc.	– Discounted
EUR	– Euro
GBP	– British Pound
Gtd.	– Guaranteed
Jr.	– Junior
Ltd.	– Limited
Pfd.	– Preferred
PIK	– Payment in Kind
REGS	– Regulation S
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
Unsec.	– Unsecured
Unsub.	– Unsubordinated
Wts.	– Warrants

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The 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, 2011 was $40,601,241, which represented 47.41% of the Trust’s Net Assets.
(c)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2011.
(d)	Interest payments have been suspended under European Union agreement for 24 months beginning April 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 aggregate value of these securities at June 30, 2011 was $2,013, which represented 0.04% of the Fund’s Net Assets.
(g)	Step coupon bond issued at discount. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(h)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(i)	Foreign denominated security. Principal amount is denominated in currency indicated.
(j)	Non-income producing security.
(k)	Non-income producing security acquired as part of the Adelphia Communications bankruptcy reorganization.
*	Acquired as part of the General Motors reorganization.

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

Invesco V.I. High Yield Fund

Portfolio Composition

By credit quality, based on Net Assets

as of June 30, 2011

A	0.7	%
BBB	4.1
BB	35.8
B	43.3
CCC	9.8
NR	4.2
Cash	2.1

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $87,986,130)	$	89,314,726
Foreign currencies, at value (Cost $27,582)		28,635
Receivable for:
Investments sold		710,863
Fund shares sold		806,031
Dividends and interest		1,593,849
Fund expenses absorbed		10,370
Foreign currency contracts outstanding		95,883
Investment for trustee deferred compensation and retirement plans		40,054
Other assets		3,505
Total assets		92,603,916
Liabilities:
Payable for:
Fund shares reacquired		773,630
Amount due custodian		6,012,819
Accrued fees to affiliates		88,734
Accrued other operating expenses		42,460
Trustee deferred compensation and retirement plans		46,724
Total liabilities		6,964,367
Net assets applicable to shares outstanding	$	85,639,549
Net assets consist of:
Shares of beneficial interest	$	87,413,443
Undistributed net investment income		2,351,789
Undistributed net realized gain (loss)		(3,866,643	)
Unrealized appreciation		(259,040	)
	$	85,639,549
Net Assets:
Series I	$	84,078,226
Series II	$	1,561,323
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		16,285,094
Series II		302,434
Series I:
Net asset value per share	$	5.16
Series II:
Net asset value per share	$	5.16

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Interest	$	2,703,974
Dividends		41,163
Dividends from affiliated money market funds		1,586
Total investment income		2,746,723
Expenses:
Advisory fees		224,192
Administrative services fees		110,701
Custodian fees		12,993
Distribution fees — Series II		917
Transfer agent fees		9,337
Trustees’ and officers’ fees and benefits		8,914
Professional services fees		22,021
Other		14,801
Total expenses		403,876
Less: Fees waived		(86,416	)
Net expenses		317,460
Net investment income		2,429,263
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		2,194,857
Foreign currencies		8,529
Foreign currency contracts		(529,511	)
		1,673,875
Change in net unrealized appreciation (depreciation) of:
Investment securities		(2,812,318	)
Foreign currencies		(3,680	)
Foreign currency contracts		155,201
		(2,660,797	)
Net realized and unrealized gain (loss)		(986,922	)
Net increase in net assets resulting from operations	$	1,442,341

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

Invesco V.I. High Yield Fund

Statements of Changes in Net Assets

For the six months ended June 30, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	2,429,263		$	4,456,145
Net realized gain		1,673,875			3,536,654
Change in net unrealized appreciation (depreciation)		(2,660,797	)		(977,968	)
Net increase in net assets resulting from operations		1,442,341			7,014,831
Distributions to shareholders from net investment income:
Series I		(4,229,022	)		(5,284,452	)
Series II		(46,711	)		(38,411	)
Total distributions from net investment income		(4,275,733	)		(5,322,863	)
Share transactions–net:
Series I		31,073,833			(6,523,411	)
Series II		1,099,566			17,659
Net increase (decrease) in net assets resulting from share transactions		32,173,399			(6,505,752	)
Net increase (decrease) in net assets		29,340,007			(4,813,784	)
Net assets:
Beginning of period		56,299,542			61,113,326
End of period (includes undistributed net investment income of $2,351,789 and $4,198,259, respectively)	$	85,639,549		$	56,299,542

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. High Yield Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.	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. 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 Daily 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 Canada Ltd. (formerly 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 May 2, 2011, the Adviser contractually agreed, through at least June 30, 2013, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.80% and Series II shares to 1.05% of average daily net assets. Prior to May 2, 2011, the Adviser waived advisory fees and/or reimbursed expenses of all shares to the extent necessary to limit total annual fund operating expenses to 0.95% and 1.20% for Series I and Series II shares, 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 total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; (5) expenses related to a merger or reorganization, as approved by the Fund’s Board of Trustees; and (6) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2013.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $86,416.

  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, 2011, 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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $85,906 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

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, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	1,645,012	$	909,437	$	16,232	$	2,570,681
Corporate Debt Securities		—		86,744,045		—		86,744,045
	$	1,645,012	$	87,653,482	$	16,232	$	89,314,726
Foreign Currency Contracts*		—		95,883		—		95,883
Total Investments	$	1,645,012	$	87,749,365	$	16,232	$	89,410,609

*  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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Currency risk
Foreign Currency Contracts(a)	$	95,883	$	—

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

Effect of Derivative Instruments for the six months ended June 30, 2011

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 (Loss)
Currency risk	$	(529,511	)
Change in Unrealized Appreciation
Currency risk		155,201
Total	$	(374,310	)

*  The average value of foreign currency contracts outstanding during the period was $1,844,831.

Invesco V.I. High Yield Fund

Open Foreign Currency Contracts
		Contract to						Notional		Unrealized
Settlement Date	Counterparty	Deliver			Receive			Value		Appreciation
08/09/11	Bank of Montreal		EUR	6,578,000		USD	9,599,561	$	9,530,688	$	68,873
08/19/11	RBC Dain Rauscher		GBP	959,000		USD	1,565,307		1,538,297		27,010
Total open foreign currency contracts										$	95,883

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.

  During the six months ended June 30, 2011, the Fund paid legal fees of $670 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	3,209,400
December 31, 2017		1,834,418
Total capital loss carryforward	$	5,043,818

*  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 gain as of May 2, 2011, the date of the reorganization of Invesco Van Kampen V.I. High Yield Fund into the Fund are realized on securities held in the Fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

  .

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, 2011 was $36,064,459 and $28,773,426, 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	$	3,704,792
Aggregate unrealized (depreciation) of investment securities		(2,703,256	)
Net unrealized appreciation of investment securities	$	1,001,536
Cost of investments for tax purposes is $88,313,190.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		3,382,838		$	18,102,014			4,999,888		$	26,982,826
Series II		204,829			1,076,577			16,305			86,476
Issued as reinvestment of dividends:
Series I		814,841			4,229,022			1,018,199			5,284,452
Series II		9,000			46,712			7,401			38,411
Issued in connection with acquisitions:(b)
Series I		6,239,174			32,616,526			—			—
Series II		1,983			10,369			—			—
Reacquired:
Series I		(4,581,051	)		(23,873,729	)		(7,205,545	)		(38,790,689	)
Series II		(6,296	)		(34,092	)		(19,746	)		(107,228	)
Net increase (decrease) in share activity		6,065,318		$	32,173,399			(1,183,498	)	$	(6,505,752	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 61% 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)

As of the opening of business on May 2, 2011, the Fund acquired all the net assets of Invesco Van Kampen V.I. High Yield Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Van Kampen V.I. High Yield Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 6,241,157 shares of the Fund for 2,940,652 shares outstanding of Invesco Van Kampen V.I. High Yield Fund as of the close of business on April 29, 2011. Each class of Invesco Van Kampen V.I. High Yield Fund was exchanged for the like class of shares of the Fund, based on the relative net asset value of Invesco Van Kampen V.I. High Yield Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco Van Kampen V.I. High Yield Fund’s net assets at that date of $32,626,895 including $1,685,415 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $63,972,559.

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
																								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			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	5.35	$	0.18	$	0.00		$	0.18		$	(0.37	)	$	(0.37	)	$	5.16		3.37	%	$	84,078		0.88	%(d)		1.12	%(d)		6.77	%(d)		48	%
Year ended 12/31/10		5.22		0.43		0.26			0.69			(0.56	)		(0.56	)		5.35		13.57			55,803		0.95			1.17			8.04			102
Year ended 12/31/09		3.69		0.47		1.47			1.94			(0.41	)		(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	)		(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	)		(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	)		(0.55	)		6.12		10.74			58,336		0.96			1.18			7.22			135
Series II
Six months ended 06/30/11		5.35		0.17		0.00			0.17			(0.36	)		(0.36	)		5.16		3.21			1,561		1.13	(d)		1.37	(d)		6.52	(d)		48
Year ended 12/31/10		5.22		0.42		0.26			0.68			(0.55	)		(0.55	)		5.35		13.27			497		1.20			1.42			7.79			102
Year ended 12/31/09		3.68		0.46		1.48			1.94			(0.40	)		(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	)		(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	)		(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	)		(0.53	)		6.09		10.41			919		1.21			1.43			6.97			135

(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 June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $30,901,742 and sold of $3,261,324 in effect to realign the Fund’s portfolio holdings after the reorganization of Invesco Van Kampen V.I. High Yield Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $71,596 and $740 for Series I and Series II shares, respectively.

Invesco V.I. High Yield Fund

NOTE 10—Financial Highlights—(continued)

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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2,4		(06/30/11)		Period2,5		Ratio3
Series I	$	1,000.00	$	1,033.70	$	4.44	$	1,020.43	$	4.41		0.88	%
Series II		1,000.00		1,032.10		5.69		1,019.19		5.66		1.13

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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.
3	Effective May 2, 2011, 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 0.80% and 1.05% 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 0.80% and 1.05% for Series I and Series II shares, respectively.
4	The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $4.03 and $5.29 for Series I and Series II shares, respectively.
5	The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent fiscal half year are $4.01 and $5.26 for Series I and Series II shares, respectively.

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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA

Invesco V.I. High Yield Fund

Underlying Funds – High Current Yield Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of the 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 performance of Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. Invesco Advisers advised the Board that underperformance in the one year period was a result of removing bonds in the lowest rated categories from the Fund. The management team believes that such bonds are at risk of restructuring or bankruptcy and that current valuations do not warrant the risk to investors. 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rates of three mutual funds managed by Invesco Advisers with comparable investment strategies.

  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 June 30, 2013 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.39	%
Series II Shares	4.39
Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index▼ (Broad Market/Style-Specific Index)	4.98

^▼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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley Variable Investment High Yield Portfolio, 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 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 1.69% and 1.94%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     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.

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (3/9/84)			4.23	%
	10	Years	4.45
	5	Years	7.22
	1	Year	12.26
Series II Shares
Inception (6/5/00)			-1.17	%
	10	Years	4.22
	5	Years	7.03
	1	Year	12.26

Invesco V.I. High Yield Securities Fund

Schedule of Investments^(a)

June 30, 2011

(Unaudited)

	Principal
	Amount		Value
U.S. Dollar Denominated Bonds & Notes–84.20%
Aerospace & Defense–1.43%
Alliant Techsystems Inc., Sr. Unsec. Gtd. Sub. Notes, 6.88%, 09/15/20	$	15,000	$	15,638
BE Aerospace, Inc., Sr. Unsec. Notes, 6.88%, 10/01/20		85,000		89,250
Hexcel Corp., Sr. Unsec. Sub. Global Notes, 6.75%, 02/01/15		53,000		54,325
Huntington Ingalls Industries, Inc., Sr. Unsec. Gtd. Notes, 6.88%, 03/15/18(b)		20,000		20,550
7.13%, 03/15/21(b)		30,000		30,862
Spirit Aerosystems Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 12/15/20		55,000		56,237
Triumph Group, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 11/15/17		145,000		153,700
				420,562
Airlines–2.89%
American Airlines Inc., Sr. Sec. Gtd. Notes, 7.50%, 03/15/16(b)		40,000		39,300
American Airlines Pass Through Trust, Series 2011-1, Class B, Sec. Gtd. Pass Through Ctfs., 7.00%, 01/31/18(b)		30,000		28,350
Continental Airlines Inc.,
Series 2007-1, Class C, Sec. Sub. Global Pass Through Ctfs., 7.34%, 04/19/14		207,493		208,012
Series 2009-2, Class B, Sec. Global Pass Through Ctfs., 9.25%, 05/10/17		120,748		126,786
Delta Air Lines Pass Through Trust,
Series 2010-1, Class B, Sec. Pass Through Ctfs., 6.38%, 01/02/16(b)		30,000		29,100
Series 2010-2, Class B, Sec. Pass Through Ctfs., 6.75%, 11/23/15		40,000		38,000
Delta Air Lines, Inc., Sec. Notes, 12.25%, 03/15/15(b)		150,000		167,625
UAL Pass Through Trust,
Series 2007-1, Class A, Sec. Gtd. Global Pass Through Ctfs., 6.64%, 07/02/22		38,168		38,239
Series 2009-2, Class B, Sec. Gtd. Pass Through Ctfs., 12.00%, 01/15/16(b)		87,002		95,702
US Airways Pass Through Trust, Series 1998-1, Class C, Sec. Pass Through Ctfs., 6.82%, 01/30/14		83,075		76,221
				847,335
Alternative Carriers–1.11%
Cogent Communications Group, Inc., Sr. Sec. Gtd. Notes, 8.38%, 02/15/18(b)		85,000		87,762
Level 3 Communications Inc., Sr. Unsec. Notes, 11.88%, 02/01/19(b)		90,000		98,550
Level 3 Escrow, Inc., Sr. Unsec. Notes, 8.13%, 07/01/19(b)		20,000		20,250
Level 3 Financing, Inc.,
Sr. Unsec. Gtd. Global Notes, 9.25%, 11/01/14		71,000		73,130
Sr. Unsec. Gtd. Notes, 9.38%, 04/01/19(b)		45,000		47,138
				326,830
Aluminum–0.30%
Century Aluminum Co., Sr. Sec. Gtd. Sub. Notes, 8.00%, 05/15/14		85,000		87,816
Apparel Retail–0.94%
Brown Shoe Co., Inc., Sr. Unsec. Gtd. Notes, 7.13%, 05/15/19(b)		10,000		9,650
Express LLC/Express Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/01/18		90,000		97,875
Gap, Inc. (The), Sr. Unsec. Notes, 5.95%, 04/12/21		65,000		62,969
J Crew Group, Inc., Sr. Notes, 8.13%, 03/01/19(b)		65,000		63,375
Limited Brands, Inc., Sr. Unsec. Gtd. Notes, 6.63%, 04/01/21		40,000		41,000
				274,869
Apparel, Accessories & Luxury Goods–2.39%
Hanesbrands Inc., Sr. Unsec. Gtd. Global Notes, 6.38%, 12/15/20		80,000		77,800
Jones Group Inc. (The), Sr. Unsec. Notes, 6.88%, 03/15/19		210,000		203,437
Levi Strauss & Co., Sr. Unsec. Global Notes, 7.63%, 05/15/20		165,000		165,825
Phillips-Van Heusen Corp., Sr. Unsec. Notes, 7.38%, 05/15/20		55,000		58,988
Quiksilver Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 04/15/15		200,000		194,500
				700,550
Auto Parts & Equipment–0.67%
Allison Transmission Inc., Sr. Unsec. Gtd Notes, 7.13%, 05/15/19(b)		75,000		73,312
Dana Holding Corp., Sr. Unsec. Notes,
6.50%, 02/15/19		30,000		29,925
6.75%, 02/15/21		25,000		24,875
Tenneco Inc.,
Sr. Gtd. Global Notes, 6.88%, 12/15/20		25,000		25,500
Sr. Unsec. Gtd. Global Notes, 7.75%, 08/15/18		40,000		42,200
				195,812

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
Automobile Manufacturers–0.63%
Ford Motor Co., Sr. Unsec. Global Notes, 7.45%, 07/16/31	$	155,000	$	176,700
Motors Liquidation Co., Sr. Unsec. Notes, 8.38%, 07/15/33(c)		305,000		9,150
				185,850
Biotechnology–0.31%
Giant Funding Corp., Sr. Sec. Notes, 8.25%, 02/01/18(b)		30,000		30,825
Savient Pharmaceuticals Inc., Sr. Unsec. Conv. Notes, 4.75%, 02/01/18		30,000		30,038
STHI Holding Corp., Sec. Gtd. Notes, 8.00%, 03/15/18(b)		30,000		30,600
				91,463
Broadcasting–1.01%
Allbritton Communications Co., Sr. Unsec. Global Notes, 8.00%, 05/15/18		45,000		45,900
Clear Channel Communications Inc., Sr. Gtd. Notes, 9.00%, 03/01/21(b)		105,000		101,981
Nielsen Finance LLC/Co., Sr. Unsec. Gtd. Notes, 7.75%, 10/15/18(b)		140,000		147,700
				295,581
Building Products–4.58%
Associated Materials LLC, Sr. Sec. Gtd. Notes, 9.13%, 11/01/17(b)		190,000		190,000
Building Materials Corp. of America,
Sr. Notes,
6.75%, 05/01/21(b)		40,000		40,000
6.88%, 08/15/18(b)		150,000		151,875
Sr. Sec. Gtd. Notes, 7.50%, 03/15/20(b)		160,000		168,200
Gibraltar Industries Inc. Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 12/01/15		105,000		106,444
Nortek Inc.,
Sr. Sec. Gtd. Notes, 8.50%, 04/15/21(b)		155,000		144,150
Sr. Unsec. Gtd. Notes, 10.00%, 12/01/18(b)		75,000		75,937
Ply Gem Industries Inc.,
Sr. Sec. Gtd. Notes, 8.25%, 02/15/18(b)		125,000		120,937
Sr. Unsec. Gtd. Sub. Global Notes, 13.13%, 07/15/14		55,000		58,025
Roofing Supply Group LLC/Roofing Supply Finance Inc., Sr. Sec. Notes, 8.63%, 12/01/17(b)		190,000		191,425
USG Corp.,
Sr. Gtd. Notes, 8.38%, 10/15/18(b)		10,000		9,775
Sr. Unsec. Gtd. Notes, 9.75%, 08/01/14(b)		20,000		21,100
Sr. Unsec. Notes, 9.75%, 01/15/18		65,000		64,513
				1,342,381
Cable & Satellite–1.29%
CSC Holdings LLC, Sr. Unsec. Global Notes, 8.63%, 02/15/19		140,000		158,550
EH Holding Corp.,
Sr. Sec. Notes, 6.50%, 06/15/19(b)		40,000		40,900
Sr. Unsec. Notes, 7.63%, 06/15/21(b)		25,000		25,625
Kabel BW Erste Beteiligungs GmbH/Kabel Baden-Wurtlemberg GmbH & Co. K.G. (Germany), Sr. Sec. Gtd. Notes, 7.50%, 03/15/19(b)		150,000		152,375
				377,450
Casinos & Gaming–5.78%
Ameristar Casinos Inc., Sr. Unsec. Gtd. Notes, 7.50%, 04/15/21(b)		50,000		51,750
Boyd Gaming Corp., Sr. Notes, 9.13%, 12/01/18(b)		15,000		15,450
Caesars Entertainment Operating Co. Inc.,
Sec. Global Notes, 12.75%, 04/15/18		85,000		85,212
Sec. Gtd. Global Notes, 10.00%, 12/15/18		30,000		27,225
Sr. Sec. Gtd. Global Notes, 11.25%, 06/01/17		135,000		149,850
Sr. Unsec. Gtd. Global Bonds, 5.63%, 06/01/15		115,000		93,725
CityCenter Holdings LLC/CityCenter Finance Corp.,
Sec. Gtd. PIK Notes, 10.75%, 01/15/17(b)		25,000		27,156
Sr. Sec. Gtd. Notes, 7.63%, 01/15/16(b)		5,000		5,175
Great Canadian Gaming Corp. (Canada), Sr. Unsec. Gtd. Sub. Notes, 7.25%, 02/15/15(b)		20,000		20,400
Mandalay Resort Group, Sr. Unsec. Gtd. Sub. Notes, 7.63%, 07/15/13		100,000		98,500
MGM Resorts International,
Sr. Unsec. Gtd. Global Notes, 6.63%, 07/15/15		65,000		61,750
6.75%, 04/01/13		245,000		246,225
Sr. Unsec. Gtd. Notes, 10.00%, 11/01/16(b)		40,000		42,700
Pinnacle Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 08/01/17		90,000		96,750
Resort at Summerlin L.P.–Series B, Sr. Unsec. Sub. Notes, 13.00%, 12/15/07(c)		7,210,050		—
Scientific Games Corp., Sr. Unsec. Gtd. Sub. Global Notes, 8.13%, 09/15/18		15,000		15,675
Scientific Games International Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.25%, 06/15/19		125,000		136,250
Seneca Gaming Corp., Sr. Unsec. Gtd. Notes, 8.25%, 12/01/18(b)		35,000		36,313
Snoqualmie Entertainment Authority,
Sr. Sec. Floating Rate Notes, 4.20%, 02/01/14(b)(d)		75,000		68,250
Sr. Sec. Notes, 9.13%, 02/01/15(b)		150,000		149,250
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
Sec. Gtd. First Mortgage Global Notes, 7.75%, 08/15/20		95,000		103,787
Sr. Sec. Gtd. First Mortgage Global Notes, 7.88%, 05/01/20		150,000		163,969
				1,695,362

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
Coal & Consumable Fuels–0.25%
Alpha Natural Resources Inc., Sr. Unsec. Gtd. Notes,
6.00%, 06/01/19	$	25,000	$	25,219
6.25%, 06/01/21		10,000		10,075
Consol Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 04/01/20		35,000		38,150
				73,444
Communications Equipment–0.57%
Avaya, Inc., Sr. Sec. Gtd. Notes, 7.00%, 04/01/19(b)		150,000		142,500
CommScope Inc., Sr. Unsec. Gtd. Notes, 8.25%, 01/15/19(b)		25,000		25,875
				168,375
Computer & Electronics Retail–0.10%
RadioShack Corp., Sr. Gtd. Notes, 6.75%, 05/15/19(b)		10,000		9,700
Rent-A-Center Inc., Sr. Unsec. Gtd Global Notes, 6.63%, 11/15/20		20,000		20,000
				29,700
Computer Storage & Peripherals–0.37%
Seagate HDD Cayman (Cayman Islands), Sr. Unsec. Gtd. Notes,
7.00%, 11/01/21(b)		30,000		29,775
7.75%, 12/15/18(b)		75,000		78,563
				108,338
Construction & Engineering–1.41%
Dycom Investments Inc., Sr. Sub. Notes, 7.13%, 01/15/21(b)		35,000		35,875
Great Lakes Dredge & Dock Corp., Sr. Unsec. Gtd. Notes, 7.38%, 02/01/19(b)		25,000		24,812
MasTec, Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 02/01/17		110,000		112,750
Tutor Perini Corp., Sr. Unsec. Gtd. Global Notes, 7.63%, 11/01/18		250,000		240,625
				414,062
Construction & Farm Machinery & Heavy Trucks–1.32%
Case New Holland Inc., Sr. Notes, 7.88%, 12/01/17(b)		75,000		83,062
Commercial Vehicle Group, Inc., Sr. Sec. Gtd. Notes, 7.88%, 04/15/19(b)		65,000		65,325
Manitowoc Co. Inc. (The), Sr. Unsec. Gtd. Notes, 8.50%, 11/01/20		50,000		53,750
Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21		130,000		141,700
Titan International Inc., Sr. Sec. Gtd. Notes, 7.88%, 10/01/17(b)		40,000		42,100
				385,937
Construction Materials–1.63%
Cemex Finance LLC, Sr. Sec. Gtd. Bonds, 9.50%, 12/14/16(b)		100,000		104,298
Cemex S.A.B. de C.V. (Mexico), Sr. Sec. Gtd. Notes, 9.00%, 01/11/18(b)		100,000		102,389
Texas Industries Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 08/15/20		280,000		271,600
				478,287
Consumer Finance–1.39%
Ally Financial, Inc., Sr. Unsec. Gtd. Global Notes,
7.50%, 09/15/20		75,000		78,750
8.00%, 03/15/20		140,000		151,200
8.00%, 11/01/31		15,000		16,313
Ford Motor Credit Co. LLC, Sr. Unsec. Notes, 8.00%, 12/15/16		45,000		50,962
National Money Mart Co. (Canada), Sr. Unsec. Gtd. Global Notes, 10.38%, 12/15/16		100,000		110,250
				407,475
Data Processing & Outsourced Services–0.79%
CoreLogic, Inc., Sr. Unsec. Gtd. Notes, 7.25%, 06/01/21(b)		140,000		137,200
First Data Corp., Sr. Sec. Gtd. Notes, 7.38%, 06/15/19(b)		45,000		45,562
SunGard Data Systems Inc., Sr. Unsec. Gtd. Global Notes,
7.38%, 11/15/18		25,000		24,938
7.63%, 11/15/20		25,000		25,312
				233,012
Department Stores–0.55%
Sears Holdings Corp., Sec. Gtd. Notes, 6.63%, 10/15/18(b)		175,000		161,437
Distillers & Vintners–0.43%
Constellation Brands, Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/15/17		115,000		125,350
Diversified Banks–0.12%
RBS Capital Trust II, Jr. Unsec. Gtd. Sub. Global Bonds, 6.43%(e)(f)		50,000		35,938
Diversified Chemicals–0.09%
Huntsman International LLC, Sr. Unsec. Gtd. Sub. Global Notes, 8.63%, 03/15/21		25,000		27,187
Diversified Metals & Mining–0.57%
Midwest Vanadium Pty Ltd. (Australia), Sr. Sec. Gtd. Notes, 11.50%, 02/15/18(b)		30,000		29,980
Mirabela Nickel Ltd. (Australia), Sr. Unsec. Gtd. Notes, 8.75%, 04/15/18(b)		15,000		14,839
Taseko Mines Ltd. (Canada), Sr. Unsec. Gtd. Notes, 7.75%, 04/15/19		5,000		5,068

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
Diversified Metals & Mining–(continued)
Thompson Creek Metals Co. Inc. (Canada), Sr. Gtd. Notes, 7.38%, 06/01/18(b)	$	10,000	$	9,850
Vedanta Resources PLC (United Kingdom), Sr. Unsec. Notes, 9.50%, 07/18/18(b)		100,000		108,385
				168,122
Diversified Support Services–0.05%
Mobile Mini, Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 12/01/20		15,000		15,488
Electrical Components & Equipment–0.09%
Polypore International Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 11/15/17		25,000		26,563
Electronic Manufacturing Services–0.26%
Sanmina-SCI Corp., Sr. Unsec. Gtd. Notes, 7.00%, 05/15/19(b)		80,000		76,000
Environmental & Facilities Services–0.31%
Clean Harbors Inc., Sr. Sec. Gtd. Notes, 7.63%, 08/15/16(b)		50,000		53,500
EnergySolutions Inc./LLC, Sr. Unsec. Gtd. Global Notes, 10.75%, 08/15/18		35,000		37,625
				91,125
Food Retail–0.29%
Simmons Foods Inc., Sec. Notes, 10.50%, 11/01/17(b)		80,000		85,000
Forest Products–0.28%
Millar Western Forest Products Ltd. (Canada), Sr. Notes, 8.50%, 04/01/21(b)		85,000		77,031
Sino-Forest Corp. (Canada), Sr. Gtd. Notes, 6.25%, 10/21/17(b)		10,000		4,650
				81,681
Gas Utilities–0.61%
Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Notes, 6.50%, 05/01/21(b)		90,000		85,050
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20		90,000		94,050
				179,100
Health Care Equipment–0.52%
DJO Finance LLC/Corp.,
Sr. Unsec. Gtd. Global Notes, 10.88%, 11/15/14		90,000		95,850
Sr. Unsec. Gtd. Notes, 7.75%, 04/15/18(b)		10,000		10,125
Sr. Unsec. Gtd. Sub. Notes, 9.75%, 10/15/17(b)		20,000		20,250
Hanger Orthopedic Group Inc., Sr. Unsec. Gtd. Global Notes, 7.13%, 11/15/18		25,000		25,562
				151,787
Health Care Facilities–1.99%
HCA, Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 02/15/20		105,000		114,713
Health Management Associates Inc., Sr. Sec. Gtd. Notes, 6.13%, 04/15/16		30,000		31,125
Healthsouth Corp., Sr. Unsec. Gtd. Notes,
7.25%, 10/01/18		60,000		62,850
7.75%, 09/15/22		35,000		36,838
Select Medical Holdings Corp., Sr. Unsec. Floating Rate Global Notes, 6.21%, 09/15/15(d)		45,000		43,425
Tenet Healthcare Corp., Sr. Sec. Gtd. Global Notes, 10.00%, 05/01/18		135,000		152,887
Sr. Unsec. Global Notes,
8.00%, 08/01/20		20,000		20,500
9.25%, 02/01/15		110,000		120,862
				583,200
Health Care Services–0.45%
DaVita Inc., Sr. Unsec. Gtd. Notes, 6.38%, 11/01/18		25,000		25,188
Radnet Management Inc., Sr. Unsec. Gtd. Global Notes, 10.38%, 04/01/18		80,000		82,000
Universal Hospital Services Inc., Sec. Global Notes, 8.50%, 06/01/15		25,000		25,781
				132,969
Health Care Technology–0.43%
MedAssets, Inc., Sr. Unsec. Gtd. Notes, 8.00%, 11/15/18(b)		125,000		126,250
Home Furnishings–0.27%
American Standard Americas, Sr. Sec. Notes, 10.75%, 01/15/16(b)		80,000		78,000
Homebuilding–1.02%
Beazer Homes USA Inc., Sr. Unsec. Gtd. Global Notes,
6.88%, 07/15/15		70,000		61,250
8.13%, 06/15/16		100,000		87,625
K. Hovnanian Enterprises Inc., Sr. Sec. Gtd. Global Notes, 10.63%, 10/15/16		80,000		80,000
M/I Homes Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 11/15/18		35,000		34,912
Standard Pacific Corp., Sr. Sec. Gtd. Notes, 8.38%, 05/15/18		35,000		34,913
				298,700
Hotels, Resorts & Cruise Lines–0.03%
Wyndham Worldwide Corp., Sr. Unsec. Notes, 5.63%, 03/01/21		10,000		10,063
Household Products–0.28%
Central Garden & Pet Co., Sr. Gtd. Sub. Notes, 8.25%, 03/01/18		80,000		83,000
Housewares & Specialties–0.03%
Jarden Corp., Sr. Unsec. Gtd. Notes, 6.13%, 11/15/22		10,000		9,975

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–0.81%
AES Corp. (The), Sr. Unsec. Global Notes, 7.75%, 10/15/15	$	220,000	$	237,600
Industrial Machinery–0.69%
Cleaver-Brooks, Inc., Sr. Sec. Notes, 12.25%, 05/01/16(b)		110,000		115,362
Columbus McKinnon Corp., Sr. Unsec. Gtd. Sub. Global Notes, 7.88%, 02/01/19		10,000		10,175
Mueller Water Products Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 09/01/20		15,000		16,425
SPX Corp., Sr. Unsec. Gtd. Notes, 6.88%, 09/01/17(b)		55,000		58,988
				200,950
Industrial REIT’s–0.13%
DuPont Fabros Technology L.P., Sr. Unsec. Gtd. Global Notes, 8.50%, 12/15/17		35,000		38,238
Integrated Telecommunication Services–1.18%
Integra Telecom Holdings, Inc., Sr. Sec. Notes, 10.75%, 04/15/16(b)		70,000		71,225
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.25%, 10/15/20(b)		275,000		274,312
				345,537
Internet Retail–0.30%
Travelport LLC/Inc., Sr. Unsec. Gtd. Global Notes, 9.00%, 03/01/16		100,000		88,500
Internet Software & Services–0.34%
Equinix Inc., Sr. Unsec. Notes, 8.13%, 03/01/18		90,000		98,550
Investment Banking & Brokerage–0.89%
Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19(b)		105,000		115,015
E*Trade Financial Corp.,
Sr. Notes, 6.75%, 06/01/16		30,000		29,588
Sr. Unsec. Notes, 7.88%, 12/01/15		115,000		115,575
				260,178
Leisure Facilities–0.09%
Speedway Motorsports Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 02/01/19		25,000		25,063
Leisure Products–0.05%
Toys R US-Delaware Inc., Sr. Sec. Gtd. Notes, 7.38%, 09/01/16(b)		15,000		15,225
Life Sciences Tools & Services–0.23%
Patheon Inc. (Canada), Sr. Sec. Gtd. Notes, 8.63%, 04/15/17(b)		65,000		65,975
Marine–0.17%
Navios Maritime Acquisition Corp./Navios Acquisition Finance US Inc. (Greece), Sr. Sec. Gtd. Notes, 8.63%, 11/01/17(b)		10,000		10,236
Stena A.B. (Sweden), Sr. Unsec. Global Notes, 7.00%, 12/01/16		40,000		39,250
				49,486
Metal & Glass Containers–0.14%
Ball Corp., Sr. Unsec. Gtd. Notes, 5.75%, 05/15/21		40,000		40,300
Movies & Entertainment–1.31%
AMC Entertainment Inc.,
Sr. Unsec. Gtd. Global Notes, 8.75%, 06/01/19		95,000		100,581
Sr. Unsec. Gtd. Sub. Notes, 9.75%, 12/01/20(b)		40,000		40,600
Cinemark USA Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 06/15/19		60,000		66,000
NAI Entertainment Holdings LLC, Sr. Sec. Notes, 8.25%, 12/15/17(b)		165,000		177,788
				384,969
Multi-Line Insurance–2.62%
American International Group, Inc., Jr. Sub. Variable Rate Global Deb., 8.18%, 05/15/58(d)		170,000		186,150
Fairfax Financial Holdings Ltd. (Canada), Sr. Notes, 5.80%, 05/15/21(b)		45,000		43,537
Hartford Financial Services Group Inc. (The), Jr. Unsec. Sub. Variable Rate Deb., 8.13%, 06/15/38(d)		80,000		85,873
Liberty Mutual Group Inc.,
Jr. Unsec. Gtd. Sub. Bonds, 7.80%, 03/15/37(b)		230,000		228,850
Sr. Gtd. Notes, 5.00%, 06/01/21(b)		20,000		19,159
Nationwide Mutual Insurance Co., Sub. Notes, 9.38%, 08/15/39(b)		165,000		205,992
				769,561
Multi-Sector Holdings–0.34%
Reynolds Group Issuer Inc./LLC/Luxembourg S.A., Sr. Sec. Gtd. Notes, 7.13%, 04/15/19(b)		100,000		99,750
Office Services & Supplies–0.19%
IKON Office Solutions, Inc., Sr. Unsec. Notes, 6.75%, 12/01/25		35,000		34,475
Interface Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 12/01/18		20,000		21,025
				55,500
Oil & Gas Drilling–0.19%
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes, 6.63%, 11/15/20		55,000		56,238
Oil & Gas Equipment & Services–0.90%
Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17		80,000		83,900

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 Equipment & Services–(continued)
Calfrac Holdings L.P., Sr. Unsec. Notes, 7.50%, 12/01/20(b)	$	30,000	$	30,525
Key Energy Services, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 03/01/21		105,000		104,147
SESI, LLC, Sr. Gtd. Notes, 6.38%, 05/01/19(b)		45,000		44,100
				262,672
Oil & Gas Exploration & Production–6.83%
Berry Petroleum Co., Sr. Unsec. Notes, 6.75%, 11/01/20		35,000		35,350
Brigham Exploration Co., Sr. Unsec. Gtd. Notes, 6.88%, 06/01/19(b)		10,000		9,975
Chaparral Energy Inc., Sr. Unsec. Gtd. Global Notes,
8.25%, 09/01/21		130,000		132,275
8.88%, 02/01/17		90,000		92,700
Chesapeake Energy Corp.,
Sr. Unsec. Gtd. Global Notes, 6.88%, 11/15/20		30,000		31,875
Sr. Unsec. Gtd. Notes,
6.13%, 02/15/21		10,000		10,163
6.63%, 08/15/20		73,000		76,924
Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17		70,000		73,762
Concho Resources Inc., Sr. Unsec. Gtd. Notes,
6.50%, 01/15/22		30,000		30,225
7.00%, 01/15/21		25,000		25,625
Continental Resources, Inc., Sr. Unsec. Gtd. Global Notes,
7.13%, 04/01/21		30,000		31,763
7.38%, 10/01/20		70,000		74,462
8.25%, 10/01/19		50,000		54,687
Delta Petroleum Corp., Sr. Unsec. Gtd. Sub. Global Notes, 7.00%, 04/01/15		130,000		100,100
EXCO Resources, Inc., Sr. Unsec. Gtd. Notes, 7.50%, 09/15/18		130,000		126,750
Forest Oil Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 06/15/19		125,000		127,969
Harvest Operations Corp. (Canada), Sr. Unsec. Gtd. Notes, 6.88%, 10/01/17(b)		80,000		82,800
McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14		155,000		168,175
Newfield Exploration Co., Sr. Unsec. Sub. Global Notes, 7.13%, 05/15/18		60,000		63,900
Petrohawk Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 08/15/18		110,000		113,025
Sr. Unsec. Gtd. Notes, 6.25%, 06/01/19(b)		100,000		97,500
Pioneer Natural Resources Co., Sr. Unsec. Notes, 6.65%, 03/15/17		70,000		76,650
Plains Exploration & Production Co., Sr. Gtd. Notes, 6.63%, 05/01/21		30,000		30,150
Sr. Unsec. Gtd. Notes, 7.63%, 06/01/18		120,000		126,600
Range Resources Corp., Sr. Unsec. Gtd. Sub. Notes, 5.75%, 06/01/21		105,000		103,294
SM Energy Co., Sr. Unsec. Notes, 6.63%, 02/15/19(b)		50,000		50,250
Whiting Petroleum Corp., Sr. Unsec. Gtd. Sub. Notes, 6.50%, 10/01/18		55,000		56,306
				2,003,255
Oil & Gas Refining & Marketing–0.91%
Tesoro Corp., Sr. Unsec. Gtd. Global Bonds, 6.50%, 06/01/17		70,000		71,488
United Refining Co., Sr. Sec. Gtd. Global Notes, 10.50%, 02/28/18		195,000		195,487
				266,975
Oil & Gas Storage & Transportation–2.68%
Chesapeake Midstream Partners L.P./CHKM Finance Corp., Sr. Gtd. Notes, 5.88%, 04/15/21(b)		35,000		34,563
Copano Energy LLC/Copano Energy Finance Corp., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/21		110,000		109,450
Energy Transfer Equity L.P., Sr. Sec. Gtd. Notes, 7.50%, 10/15/20		60,000		64,200
Inergy L.P./Inergy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 08/01/21(b)		65,000		65,081
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp.,
Sr. Unsec. Gtd. Notes, 6.50%, 08/15/21		20,000		19,975
6.75%, 11/01/20		35,000		35,700
Series B, Sr. Unsec. Gtd. Global Notes, 8.75%, 04/15/18		175,000		190,531
Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18		100,000		98,500
Regency Energy Partners L.P./Regency Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 12/01/18		75,000		77,719
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 02/01/21(b)		95,000		90,725
				786,444
Other Diversified Financial Services–1.40%
International Lease Finance Corp.,
Sr. Sec. Notes, 6.75%, 09/01/16(b)		65,000		69,022
7.13%, 09/01/18(b)		65,000		69,388
Sr. Unsec. Global Notes, 5.75%, 05/15/16		20,000		19,737
6.25%, 05/15/19		30,000		29,400
8.63%, 09/15/15		155,000		168,853
8.75%, 03/15/17		34,000		37,294
Sr. Unsec. Notes, 8.25%, 12/15/20		15,000		16,331
				410,025

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
Packaged Foods & Meats–0.23%
Del Monte Foods Co., Sr. Unsec. Gtd. Notes, 7.63%, 02/15/19(b)	$	65,000	$	65,975
Paper Packaging–0.52%
Cascades Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20		145,000		151,525
Paper Products–1.45%
Boise Cascade LLC, Sr. Unsec. Gtd. Sub. Global Notes, 7.13%, 10/15/14		155,000		153,837
Clearwater Paper Corp., Sr. Gtd. Global Notes, 7.13%, 11/01/18		75,000		77,063
Mercer International, Inc., Sr. Unsec. Gtd. Global Notes, 9.50%, 12/01/17		75,000		81,000
P.H. Glatfelter Co., Sr. Unsec. Gtd. Global Notes, 7.13%, 05/01/16		110,000		113,712
				425,612
Personal Products–0.25%
Elizabeth Arden Inc., Sr. Unsec. Global Notes, 7.38%, 03/15/21		15,000		15,675
NBTY Inc., Sr. Unsec. Gtd. Notes, 9.00%, 10/01/18(b)		35,000		36,794
Sabra Health Care L.P./Sabra Capital Corp., Sr. Unsec. Gtd. Global Notes, 8.13%, 11/01/18		20,000		20,025
				72,494
Pharmaceuticals–1.11%
Aptalis Pharma Inc., Sr. Unsec. Gtd. Global Notes, 12.75%, 03/01/16		60,000		65,925
Elan Finance PLC/Corp. (Ireland), Sr. Gtd. Notes, 8.75%, 10/15/16(b)		100,000		106,500
Endo Pharmaceuticals Holdings Inc., Sr. Unsec. Gtd. Notes, 7.00%, 12/15/20(b)		15,000		15,300
Mylan Inc., Sr. Unsec. Gtd. Notes, 6.00%, 11/15/18(b)		50,000		51,000
Valeant Pharmaceuticals International, Sr. Unsec. Gtd. Notes,
6.75%, 10/01/17(b)		30,000		29,362
6.75%, 08/15/21(b)		50,000		47,375
7.00%, 10/01/20(b)		10,000		9,625
				325,087
Property & Casualty Insurance–0.27%
XL Group PLC (Ireland)–Series E, Jr. Sub. Variable Rate Global Pfd. Bonds, 6.50%(d)(e)		85,000		78,625
Railroads–0.30%
Kansas City Southern de Mexico S.A. de C.V. (Mexico),
Sr. Unsec. Global Notes, 8.00%, 02/01/18		75,000		82,038
Sr. Unsec. Notes, 6.13%, 06/15/21(b)		5,000		5,029
				87,067
Real Estate Services–0.28%
CB Richard Ellis Services Inc., Sr. Unsec. Gtd. Global Notes, 6.63%, 10/15/20		80,000		82,600
Regional Banks–2.49%
AmSouth Bancorp., Unsec. Sub. Deb., 6.75%, 11/01/25		25,000		22,313
BB&T Capital Trust II, Jr. Unsec. Gtd. Sub. Global Notes, 6.75%, 06/07/36		60,000		60,155
CIT Group Inc., Sec. Bonds, 7.00%, 05/02/17(b)		245,000		244,081
Sec. Gtd. Notes, 6.63%, 04/01/18(b)		80,000		83,750
Regions Financial Corp., Unsec. Sub. Notes, 7.38%, 12/10/37		150,000		141,750
Synovus Financial Corp., Unsec. Sub. Global Notes, 5.13%, 06/15/17		100,000		89,000
Zions Bancorp., Unsec. Sub. Notes, 6.00%, 09/15/15		85,000		88,187
				729,236
Research & Consulting Services–0.31%
FTI Consulting Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 10/01/20		90,000		90,675
Semiconductor Equipment–0.73%
Amkor Technology Inc.,
Sr. Unsec. Global Notes, 7.38%, 05/01/18		150,000		154,125
Sr. Unsec. Notes, 6.63%, 06/01/21(b)		15,000		14,625
Sensata Technologies B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 6.50%, 05/15/19(b)		45,000		44,772
				213,522
Semiconductors–0.76%
Freescale Semiconductor Inc.,
Sr. Sec. Gtd. Notes, 9.25%, 04/15/18(b)		109,000		118,265
Sr. Unsec. Gtd. Notes, 8.05%, 02/01/20(b)		25,000		25,125
10.75%, 08/01/20(b)		70,000		79,800
				223,190
Specialized Consumer Services–0.05%
Carriage Services Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/15		15,000		15,075
Specialized REIT’s–0.66%
Host Hotels & Resorts L.P.,
Sr. Gtd. Global Notes, 6.00%, 11/01/20		75,000		75,094
Sr. Notes, 5.88%, 06/15/19(b)		20,000		20,100
MPT Operating Partnership L.P./MPT Finance Corp., Sr. Gtd. Notes, 6.88%, 05/01/21(b)		45,000		44,330
OMEGA Healthcare Investors Inc., Sr. Unsec. Gtd. Notes, 6.75%, 10/15/22(b)		55,000		54,450
				193,974

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
Specialty Chemicals–1.13%
Ferro Corp., Sr. Unsec. Notes, 7.88%, 08/15/18	$	105,000	$	109,200
Nalco Co., Sr. Unsec. Gtd. Notes, 6.63%, 01/15/19(b)		25,000		25,563
NewMarket Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/16		45,000		47,109
PolyOne Corp., Sr. Unsec. Notes, 7.38%, 09/15/20		140,000		147,875
				329,747
Specialty Stores–0.56%
Michaels Stores Inc.,
Sr. Unsec. Gtd. Notes, 7.75%, 11/01/18(b)		25,000		24,938
Sr. Unsec. Gtd. Sub. Global Notes, 13.00%, 11/01/16(g)		135,000		140,062
				165,000
Steel–0.87%
AK Steel Corp., Sr. Unsec. Gtd. Notes, 7.63%, 05/15/20		110,000		113,300
FMG Resources Pty Ltd. (Australia), Sr. Unsec. Gtd. Notes, 6.38%, 02/01/16(b)		65,000		65,163
United States Steel Corp., Sr. Unsec. Notes, 7.00%, 02/01/18		55,000		55,963
7.38%, 04/01/20		20,000		20,850
				255,276
Systems Software–1.88%
Allen Systems Group, Inc., Sec. Gtd. Notes, 10.50%, 11/15/16(b)		225,000		227,250
Vangent Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.63%, 02/15/15		320,000		324,800
				552,050
Tires & Rubber–0.62%
Cooper Tire & Rubber Co., Sr. Unsec. Notes, 8.00%, 12/15/19		170,000		180,625
Trading Companies & Distributors–2.12%
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 01/15/19		160,000		162,400
H&E Equipment Services, Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16		185,000		189,625
Hertz Corp. (The), Sr. Unsec. Gtd. Notes,
6.75%, 04/15/19(b)		25,000		24,625
7.38%, 01/15/21(b)		125,000		127,187
7.50%, 10/15/18(b)		40,000		41,100
Interline Brands, Inc., Sr. Unsec. Gtd. Global Notes, 7.00%, 11/15/18		35,000		35,525
RSC Equipment Rental Inc./RSC Holdings III LLC, Sr. Unsec. Gtd. Global Notes, 8.25%, 02/01/21		40,000		40,150
				620,612
Wireless Telecommunication Services–5.39%
Clearwire Communications LLC/Clearwire Finance, Inc.,
Sr. Sec. Gtd. Notes, 12.00%, 12/01/15(b)		270,000		291,600
Sr. Unsec. Gtd. Conv. Notes, 8.25%, 12/01/17(b)(h)		35,000		31,238
Cricket Communications, Inc., Sr. Notes, 7.75%, 10/15/20(b)		35,000		33,950
Sr. Sec. Gtd. Global Notes, 7.75%, 05/15/16		115,000		122,044
Sr. Unsec. Gtd. Global Notes, 7.75%, 10/15/20		120,000		117,900
MetroPCS Wireless Inc., Sr. Unsec. Gtd. Notes,
6.63%, 11/15/20		95,000		93,575
7.88%, 09/01/18		65,000		68,778
SBA Telecommunications Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 08/15/19		90,000		96,187
Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.90%, 05/01/19		365,000		378,231
Sprint Nextel Corp., Sr. Unsec. Notes, 8.38%, 08/15/17		25,000		27,438
VimpelCom (Ireland), Sec. Notes, 7.75%, 02/02/21(b)		200,000		205,585
Wind Acquisition Finance S.A. (Luxembourg), Sr. Sec. Gtd. Notes, 11.75%, 07/15/17(b)		100,000		113,940
				1,580,466
Total U.S. Dollar Denominated Bonds & Notes (Cost $31,240,655)				24,686,850
Non-U.S. Dollar Denominated Bonds & Notes–12.08%(i)
Belgium–0.47%
Ontex IV S.A., Sr. Unsec. Gtd. Notes, 9.00%, 04/15/19(b)	EUR	100,000		136,719
Canada–0.26%
Gateway Casinos & Entertainment Ltd., Sec. Gtd. Notes, 8.88%, 11/15/17(b)	CAD	70,000		77,030
Croatia–0.41%
Agrokor D.D., Sr. Unsec. Gtd. Medium-Term Euro Notes, 10.00%, 12/07/16	EUR	80,000		121,270
Czech Republic–0.26%
CET 21 Spol. S R.O., Sr. Sec. Notes, 9.00%, 11/01/17(b)	EUR	50,000		77,244
Germany–1.49%
Hapag-Lloyd AG, Sr. Unsec. Gtd. Notes, 9.00%, 10/15/15(b)	EUR	100,000		147,961
Kabel Deutschland Vetrieb und Service GmbH & Co. K.G., Sr. Sec. Notes, 6.50%, 06/29/18(b)	EUR	100,000		145,369
KION Finance S.A., Sr. Sec. Gtd Notes, 7.88%, 04/15/18(b)	EUR	100,000		141,796
				435,126

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
Ireland–1.47%
Ardagh Packaging Finance PLC, Sr. Unsec. Gtd. Notes, 9.25%, 10/15/20(b)	EUR	100,000	$	148,505
Bord Gais Eireann, Sr. Unsec. Medium-Term Euro Notes, 5.75%, 06/16/14	EUR	95,000		133,773
Nara Cable Funding Ltd., Sr. Sec. Notes, 8.88%, 12/01/18(b)	EUR	100,000		146,873
				429,151
Luxembourg–2.13%
Cirsa Funding Luxembourg S.A., Sr. Unsec. Gtd. Notes, 8.75%, 05/15/18(b)	EUR	50,000		73,890
Codere Finance Luxembourg S.A., Sr. Sec. Gtd. Notes, 8.25%, 06/15/15(b)	EUR	100,000		147,961
ConvaTec Healthcare S.A., Sr. Sec. Gtd. Notes, 7.38%, 12/15/17(b)	EUR	100,000		145,785
Mark IV Europe Lux SCA/Mark IV USA SCA, Sr. Sec. Gtd. Notes, 8.88%, 12/15/17(b)	EUR	100,000		154,489
TMD Friction Finance S.A., Sr. Sec. Gtd. Bonds, 10.75%, 05/15/17(b)	EUR	65,000		103,247
				625,372
Netherlands–1.81%
Elster Finance B.V.–REGS, Sr. Unsec. Gtd. Medium-Term Euro Notes, 6.25%, 04/15/18(b)	EUR	100,000		144,697
Goodyear Dunlop Tires Europe B.V., Sr. Gtd. Notes, 6.75%, 04/15/19(b)	EUR	100,000		143,972
Polish Television Holding B.V.–REGS, Sr. Sec. Medium-Term Euro Notes, 11.25%, 05/15/17(b)(g)	EUR	50,000		75,794
Ziggo Bond Co. B.V., Sr. Sec. Gtd. Notes, 8.00%, 05/15/18(b)	EUR	110,000		164,353
				528,816
Sweden–0.27%
TVN Finance Corp. II A.B.–REGS, Sr. Unsec. Gtd. Euro Notes, 10.75%, 11/15/17(b)	EUR	50,000		80,146
United Kingdom–3.07%
Bakkavor Finance 2 PLC–REGS, Sr. Sec. Gtd. Euro Notes, 8.25%, 02/15/18(b)	GBP	100,000		138,841
ITV PLC–Series 2006-1, Tranche 1, Unsec. Gtd. Unsub. Medium-Term Euro Notes, 7.38%, 01/05/17	GBP	50,000		81,659
Kerling PLC, Sr. Sec. Gtd. Notes, 10.63%, 02/01/17(b)	EUR	50,000		77,063
Odeon & UCI Finco PLC,
Sr. Sec. Gtd. Floating Rate Notes, 6.44%, 08/01/18(b)(d)	EUR	100,000		140,708
Sr. Sec. Gtd. Notes, 9.00%, 08/01/18(b)	GBP	100,000		156,497
Pipe Holdings PLC–REGS, Sr. Sec. Euro Bonds, 9.50%, 11/01/15(b)	GBP	100,000		162,517
R&R Ice Cream PLC, Sr. Sec. Gtd. Notes, 8.38%, 11/15/17(b)	EUR	100,000		142,884
				900,169
United States–0.44%
CEDC Finance Corp. International Inc., Sr. Sec. Gtd. Notes, 8.88%, 12/01/16(b)	EUR	100,000		129,829
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $3,472,937)				3,540,872
	Shares
Preferred Stocks–2.67%
Automobile Manufacturers–0.35%
General Motors Co.–Series B, $2.38 Conv. Pfd.		2,130		103,816
Consumer Finance–1.34%
Ally Financial, Inc., Series A, 8.50% Variable Rate Pfd.(d)		2,690		67,331
Series G, 7.00% Pfd.(b)		264		248,127
GMAC Capital Trust I–Series 2, 8.13% Variable Rate Pfd.(d)		3,025		77,440
				392,898
Industrial REIT’s–0.09%
DuPont Fabros Technology, Inc.–Series B, 7.63% Pfd.		1,045		26,010
Regional Banks–0.73%
Zions Bancorp.–Series C, 9.50% Pfd.		8,200		214,348
Tires & Rubber–0.16%
Goodyear Tire & Rubber Co. (The), $2.94 Conv. Pfd.		855		47,555
Total Preferred Stocks (Cost $694,848)				784,627
Common Stocks & Other Equity Interests–0.26%
Automobile Manufacturers–0.26%
General Motors Co.(j)		1,183		35,916
General Motors Co.–Wts. expiring 07/10/16(k)		1,075		23,005
General Motors Co.–Wts. expiring 07/10/19(k)		1,075		17,125
Total Common Stocks & Other Equity Interests (Cost $90,105)				76,046
TOTAL INVESTMENTS–99.21% (Cost $35,498,545)				29,088,395
OTHER ASSETS LESS LIABILITIES–0.79%				231,767
NET ASSETS–100.00%			$	29,320,162

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

Invesco V.I. High Yield Securities Fund

Investment Abbreviations:

CAD	– Canadian Dollar
Conv.	– Convertible
Ctfs.	– Certificates
Deb.	– Debentures
EUR	– Euro
GBP	– British Pound
Gtd.	– Guaranteed
Jr.	– Junior
Pfd.	– Preferred
PIK	– Payment-in-Kind
REGS	– Regulation S
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, 2011 was $12,685,394, which represented 43.27% 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, 2011 was $9,150, which represented 0.03% of the Fund’s Net Assets
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2011.
(e)	Perpetual bonds with no specified maturity date.
(f)	Interest payments have been suspended under the European Union agreement for 24 months beginning April 30, 2010.
(g)	Step coupon bonds. The interest rate represents the coupon rate at which the bonds will accrue at a specified future date.
(h)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(i)	Foreign denominated securities. Principal amounts are denominated in the currency indicated.
(j)	Non-income producing security.
(k)	Non-income producing security acquired through a corporate action.

Portfolio Composition

By credit quality, based on Net Assets

as of June 30, 2011

A	0.7	%
BBB	5.0
BB	33.7
B	46.0
CCC	10.3
C	0.1
Not-rated	4.6
Cash	(0.4	)

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $35,498,545)	$	29,088,395
Receivable for:
Investments sold		143,077
Dividends and interest		510,504
Foreign currency contracts closed		6,599
Foreign currency contracts outstanding		29,034
Investment for trustee deferred compensation and retirement plans		2,316
Other assets		3,506
Total assets		29,783,431
Liabilities:
Payable for:
Investments purchased		166,709
Fund shares reacquired		57,351
Amount due custodian		81,617
Amount due custodian – foreign (Cost $12,042)		12,220
Accrued fees to affiliates		95,443
Accrued other operating expenses		48,033
Trustee deferred compensation and retirement plans		1,896
Total liabilities		463,269
Net assets applicable to shares outstanding	$	29,320,162
Net assets consist of:
Shares of beneficial interest	$	215,475,752
Undistributed net investment income		2,841,316
Undistributed net realized gain (loss)		(182,615,968	)
Unrealized appreciation (depreciation)		(6,380,938	)
	$	29,320,162
Net Assets:
Series I	$	15,252,151
Series II	$	14,068,011
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		12,845,106
Series II		11,871,360
Series I:
Net asset value per share	$	1.19
Series II:
Net asset value per share	$	1.19

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Interest	$	1,182,685
Dividends		22,688
Dividends from affiliated money market funds		89
Total investment income		1,205,462
Expenses:
Advisory fees		65,166
Administrative services fees		90,507
Custodian fees		10,850
Distribution fees – Series II		19,021
Transfer agent fees		1,338
Trustees’ and officers’ fees and benefits		6,907
Professional services fees		109,046
Other		7,841
Total expenses		310,676
Less: Fees waived		(186	)
Net expenses		310,490
Net investment income		894,972
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		1,251,697
Foreign currencies		3,563
Foreign currency contracts		(201,269	)
		1,053,991
Change in net unrealized appreciation (depreciation) of:
Investment securities		(902,311	)
Foreign currencies		381
Foreign currency contracts		29,034
		(872,896	)
Net realized and unrealized gain		181,095
Net increase in net assets resulting from operations	$	1,076,067

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	894,972		$	2,370,243
Net realized gain (loss)		1,053,991			(43,900,656	)
Change in net unrealized appreciation (depreciation)		(872,896	)		44,931,025
Net increase in net assets resulting from operations		1,076,067			3,400,612
Distributions to shareholders from net investment income:
Series I		—			(1,323,198	)
Series II		—			(1,325,494	)
Total distributions from net investment income		—			(2,648,692	)
Share transactions–net:
Series I		(1,343,880	)		(1,163,101	)
Series II		(2,588,576	)		(958,872	)
Net increase (decrease) in net assets resulting from share transactions		(3,932,456	)		(2,121,973	)
Net increase (decrease) in net assets		(2,856,389	)		(1,370,053	)
Net assets:
Beginning of period		32,176,551			33,546,604
End of period (includes undistributed net investment income of $2,841,316 and $1,946,344, respectively)	$	29,320,162		$	32,176,551

Notes to Financial Statements

June 30, 2011

(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) (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-eight 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 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.
	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 V.I. High Yield Securities 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	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. High Yield 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $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%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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. High Yield Securities Fund

  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 and/or expense reimbursement (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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the 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 this expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $186.

  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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $65,712 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	612,546	$	248,127	$	—	$	860,673
Corporate Debt Securities		—		28,227,722		0		28,227,722
	$	612,546	$	28,475,849	$	0	$	29,088,395
Foreign Currency Contracts*		—		29,034		—		29,034
Total Investments	$	612,546	$	28,504,883	$	0	$	29,117,429

*  Unrealized appreciation.

Invesco V.I. High Yield Securities 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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Currency risk
Foreign currency contracts(a)	$	32,995	$	(3,961	)

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

Effect of Derivative Instruments for the six months ended June 30, 2011

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 (Loss)
Currency risk	$	(201,269	)
Change in Unrealized Appreciation
Currency risk		29,034
Total	$	(172,235	)

*  The average value of foreign currency contracts outstanding during the period was $2,557,605.

Open Foreign Currency Contracts
Settlement		Contract to								Unrealized
Date	Counterparty	Deliver			Receive			Value		Appreciation
08/09/2011	Bank of Montreal		EUR	1,855,000		USD	2,707,618	$	2,687,660	$	19,958
08/19/2011	RBC Capital Markets Corp.		GBP	332,000		USD	541,625		532,549		9,076
Total open foreign currency contracts										$	29,034

Closed Foreign Currency Contracts
Closed		Contract to
Date	Counterparty	Deliver			Receive			Value		Realized Gain
05/20/2011	Bank of Montreal		USD	189,380		EUR	134,000	$	195,979	$	6,599
Total foreign currency contracts										$	35,633

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.

  During the six months ended June 30, 2011, the Fund paid legal fees of $652 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.

Invesco V.I. High Yield Securities 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2011	$	81,457,642
December 31, 2012		24,097,704
December 31, 2013		15,736,680
December 31, 2014		6,219,062
December 31, 2016		1,794,343
December 31, 2017		10,401,018
December 31, 2018		43,961,613
Total capital loss carryforward	$	183,668,062

*  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, 2011 was $14,066,903 and $16,431,027, 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	$	1,092,189
Aggregate unrealized (depreciation) of investment securities		(7,790,352	)
Net unrealized appreciation (depreciation) of investment securities	$	(6,698,163	)
Cost of investments for tax purposes is $35,786,558.

Invesco V.I. High Yield Securities Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		332,243		$	395,016			685,783		$	764,001
Series II		79,803			94,816			598,859			659,318
Issued as reinvestment of dividends:
Series I		—			—			1,272,306			1,323,198
Series II		—			—			1,274,514			1,325,494
Reacquired:
Series I		(1,462,017	)		(1,738,896	)		(2,886,241	)		(3,250,300	)
Series II		(2,264,380	)		(2,683,392	)		(2,643,132	)		(2,943,684	)
Net increase (decrease) in share activity		(3,314,351	)	$	(3,932,456	)		(1,697,911	)	$	(2,121,973	)

^(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. High Yield 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										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)			(000’s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	1.15	$	0.03	$	0.01		$	0.04		$	—		$	1.19		3.48	%	$	15,252		1.88	%(d)		1.88	%(d)		5.89	%(d)		46	%
Year ended 12/31/10		1.13		0.08		0.04			0.12			(0.10	)		1.15		10.19			16,049		1.97			1.98			7.37			116
Year ended 12/31/09		0.85		0.09		0.27			0.36			(0.08	)		1.13		44.56			16,824		1.74	(e)		1.75	(e)		8.76	(e)		75
Year ended 12/31/08		1.13		0.07		(0.33	)		(0.26	)		(0.02	)		0.85		(23.13	)		13,226		1.48	(e)		1.48	(e)		6.90	(e)		44
Year ended 12/31/07		1.16		0.08		(0.03	)		0.05			(0.08	)		1.13		4.17			21,625		1.18			1.18			6.48			26
Year ended 12/31/06		1.14		0.08		0.02			0.10			(0.08	)		1.16		9.29			27,907		0.95			0.95			6.78			23
Series II
Six months ended 06/30/11		1.15		0.03		0.01			0.04			—			1.19		3.48			14,068		2.13	(d)		2.13	(d)		5.64	(d)		46
Year ended 12/31/10		1.13		0.08		0.03			0.11			(0.09	)		1.15		10.36			16,128		2.22			2.23			7.12			116
Year ended 12/31/09		0.85		0.08		0.28			0.36			(0.08	)		1.13		44.27			16,723		1.99	(e)		2.00	(e)		8.51	(e)		75
Year ended 12/31/08		1.13		0.07		(0.33	)		(0.26	)		(0.02	)		0.85		(23.20	)		13,973		1.73	(e)		1.73	(e)		6.65	(e)		44
Year ended 12/31/07		1.16		0.07		(0.03	)		0.04			(0.07	)		1.13		3.90			24,433		1.43			1.43			6.23			26
Year ended 12/31/06		1.14		0.08		0.02			0.10			(0.08	)		1.16		9.01			30,764		1.20			1.20			6.53			23

(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) of $15,945 and $15,343 for Series I and Series II shares, respectively.
(e)	The ratios reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the ratios are 0.01% and less than 0.005% for the years ended December 31, 2009 and 2008, respectively.

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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,043.90	$	9.53	$	1,015.47	$	9.39		1.88	%
Series II		1,000.00		1,043.90		10.79		1,014.23		10.64		2.13

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 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 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper

Invesco V.I. High Yield Securities Fund

performance universe and against the Lipper VA Underlying Funds – High Current Yield Funds Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of the performance universe for the one year period and the third 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 performance of Series I shares of the Fund 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was below the rates of two mutual funds and the same as the rate of one mutual fund managed by Invesco Advisers with comparable investment strategies.

  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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco V.I. International Growth Fund
Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	6.63	%
Series II Shares	6.49
MSCI EAFE Index▼ (Broad Market Index)	4.98
MSCI EAFE Growth Index▼ (Style-Specific Index)	4.38
Lipper VUF International Growth Funds Index▼(Peer Group Index)	3.89

^▼ 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

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 1.04% and 1.29%, 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 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.

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (5/5/93)			7.98	%
	10	Years	7.34
	5	Years	5.56
	1	Year	31.46
Series II Shares
	10	Years	7.06	%
	5	Years	5.29
	1	Year	31.12

Invesco V.I. International Growth Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–92.21%
Australia–6.58%
BHP Billiton Ltd.		511,912	$	24,193,506
Brambles Ltd.		1,264,000		9,819,453
Cochlear Ltd.		121,838		9,408,331
CSL Ltd.		317,513		11,258,011
QBE Insurance Group Ltd.		572,346		10,625,121
WorleyParsons Ltd.		594,935		18,063,361
				83,367,783
Belgium–1.53%
Anheuser-Busch InBev N.V.		334,791		19,425,913
Brazil–2.34%
Banco Bradesco S.A.–ADR		986,833		20,220,208
Petroleo Brasileiro S.A.–ADR		306,858		9,414,403
				29,634,611
Canada–5.98%
Agrium Inc.		93,912		8,247,001
Canadian National Railway Co.		127,070		10,164,019
Canadian Natural Resources Ltd.		248,868		10,433,154
Cenovus Energy Inc.		314,886		11,884,955
Encana Corp.		235,266		7,264,850
Fairfax Financial Holdings Ltd.		24,717		9,892,951
Suncor Energy, Inc.		290,346		11,380,214
Talisman Energy, Inc.		317,458		6,520,990
				75,788,134
China–1.50%
Industrial & Commercial Bank of China Ltd.–Class H		24,779,000		18,973,119
Denmark–1.66%
Novo Nordisk A/S–Class B		168,041		21,073,994
France–7.21%
BNP Paribas		214,995		16,600,933
Cap Gemini S.A.		251,134		14,717,517
Cie Generale des Etablissements Michelin–Class B		102,833		10,059,994
Danone S.A.		222,465		16,603,313
Eutelsat Communications		193,492		8,701,064
Lafarge S.A.		142,982		9,114,619
Publicis Groupe S.A.		125,797		7,024,566
Total S.A.		147,683		8,543,451
				91,365,457
Germany–5.56%
Adidas AG		247,785		19,661,200
Bayer AG		127,680		10,268,187
Bayerische Motoren Werke AG		141,578		14,112,119
Fresenius Medical Care AG & Co. KGaA		178,730		13,365,149
SAP AG		215,673		13,061,707
				70,468,362
Hong Kong–1.49%
Hutchison Whampoa Ltd.		1,264,000		13,704,273
Li & Fung Ltd.		2,588,620		5,206,298
				18,910,571
India–1.19%
Infosys Technologies Ltd.		231,895		15,118,914
Israel–1.63%
Teva Pharmaceutical Industries Ltd.–ADR		428,115		20,643,705
Japan–9.85%
Canon, Inc.		402,800		19,211,835
Denso Corp.		456,200		16,941,255
FANUC Corp.		90,000		15,010,445
Keyence Corp.		44,400		12,594,646
Komatsu Ltd.		351,937		10,951,938
Nidec Corp.		139,895		13,061,041
Toyota Motor Corp.		355,400		14,966,124
Yamada Denki Co., Ltd.		270,210		22,047,188
				124,784,472
Mexico–2.98%
America Movil SAB de C.V.–Series L–ADR		308,653		16,630,224
Fomento Economico Mexicano, S.A.B. de C.V.–ADR		173,406		11,529,765
Grupo Televisa S.A.B. de C.V.–ADR		390,116		9,596,854
				37,756,843
Netherlands–2.14%
Koninklijke (Royal) KPN N.V.		168,309		2,448,815
Koninklijke Ahold N.V.		881,466		11,848,013
Unilever N.V.		391,860		12,849,408
				27,146,236
Russia–1.51%
Gazprom OAO–ADR		988,451		14,477,405
VimpelCom Ltd.–ADR		361,000		4,606,360
				19,083,765
Singapore–2.69%
Keppel Corp. Ltd.		2,045,662		18,509,706
United Overseas Bank Ltd.		966,000		15,520,187
				34,029,893

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

Invesco V.I. International Growth Fund

	Shares		Value
South Korea–2.89%
Hyundai Mobis		62,624	$	23,462,371
NHN Corp.(a)		74,249		13,171,296
				36,633,667
Sweden–3.62%
Kinnevik Investment A.B., Class B		281,253		6,249,177
Swedbank A.B.–Class A		629,871		10,588,495
Telefonaktiebolaget LM Ericsson–Class B		997,696		14,353,489
Volvo A.B.–Class B		837,274		14,631,176
				45,822,337
Switzerland–7.91%
ABB Ltd.(a)		484,602		12,567,599
Julius Baer Group Ltd.(a)		305,016		12,601,958
Nestle S.A.		365,993		22,749,386
Novartis AG		340,808		20,879,862
Roche Holding AG		102,453		17,148,628
Syngenta AG(a)		42,316		14,286,558
				100,233,991
Taiwan–1.99%
Hon Hai Precision Industry Co., Ltd.		2,556,680		8,818,880
Taiwan Semiconductor Manufacturing Co. Ltd.–ADR		1,298,663		16,376,140
				25,195,020
Turkey–0.64%
Akbank T.A.S.		1,754,124		8,105,933
United Kingdom–19.32%
BG Group PLC		750,286		17,028,577
British American Tobacco PLC		388,041		17,009,886
Centrica PLC		3,081,981		15,993,288
Compass Group PLC		2,517,241		24,282,945
Imperial Tobacco Group PLC		701,640		23,323,651
Informa PLC		1,624,730		11,268,538
International Power PLC		2,324,616		12,003,403
Kingfisher PLC		2,701,380		11,585,752
Next PLC		340,090		12,691,674
Reed Elsevier PLC		1,642,874		14,942,335
Royal Dutch Shell PLC–Class B		453,570		16,191,281
Shire PLC		574,975		17,950,257
Smith & Nephew PLC		1,084,876		11,579,874
Tesco PLC		2,397,722		15,487,087
Vodafone Group PLC		4,592,272		12,205,702
WPP PLC		894,841		11,203,212
				244,747,462
Total Common Stocks & Other Equity Interests (Cost $784,575,255)				1,168,310,182
Money Market Funds–7.33%
Liquid Assets Portfolio–Institutional Class(b)		46,466,618		46,466,618
Premier Portfolio–Institutional Class(b)		46,466,618		46,466,618
Total Money Market Funds (Cost $92,933,236)				92,933,236
TOTAL INVESTMENTS–99.54% (Cost $877,508,491)				1,261,243,418
OTHER ASSETS LESS LIABILITIES–0.46%				5,873,051
NET ASSETS–100.00%			$	1,267,116,469

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, 2011

Consumer Discretionary	18.8	%
Health Care	12.1
Consumer Staples	11.9
Energy	10.4
Financials	10.2
Information Technology	10.1
Industrials	9.3
Materials	4.4
Telecommunication Services	2.8
Utilities	2.2
Money Market Funds Plus Other Assets Less Liabilities	7.8

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $784,575,255)	$	1,168,310,182
Investments in affiliated money market funds, at value and cost		92,933,236
Total investments, at value (Cost $877,508,491)		1,261,243,418
Cash		47,023
Foreign currencies, at value (Cost $885,961)		893,717
Receivable for:
Investments sold		2,008,819
Fund shares sold		1,886,414
Dividends		6,312,506
Investment for trustee deferred compensation and retirement plans		62,816
Other assets		190
Total assets		1,272,454,903
Liabilities:
Payable for:
Fund shares reacquired		3,040,292
Accrued fees to affiliates		1,856,303
Accrued other operating expenses		281,154
Trustee deferred compensation and retirement plans		160,685
Total liabilities		5,338,434
Net assets applicable to shares outstanding	$	1,267,116,469
Net assets consist of:
Shares of beneficial interest	$	1,122,561,349
Undistributed net investment income		17,066,939
Undistributed net realized gain (loss)		(256,798,926	)
Unrealized appreciation		384,287,107
	$	1,267,116,469
Net Assets:
Series I	$	616,614,713
Series II	$	650,501,756
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		20,451,547
Series II		21,784,548
Series I:
Net asset value per share	$	30.15
Series II:
Net asset value per share	$	29.86

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $1,972,025)	$	24,085,432
Dividends from affiliated money market funds		39,158
Interest		34,115
Total investment income		24,158,705
Expenses:
Advisory fees		4,225,912
Administrative services fees		1,599,327
Custodian fees		189,056
Distribution fees–Series II		746,203
Transfer agent fees		35,240
Trustees’ and officers’ fees and benefits		26,021
Other		58,466
Total expenses		6,880,225
Less: Fees waived		(53,842	)
Net expenses		6,826,383
Net investment income		17,332,322
Realized and unrealized gain from:
Net realized gain (loss) from:
Investment securities		40,745,608
Foreign currencies		(287,569	)
Foreign currency contracts		828
		40,458,867
Change in net unrealized appreciation of:
Investment securities (net of foreign taxes on holdings of $2,324,743)		16,314,440
Foreign currencies		256,745
		16,571,185
Net realized and unrealized gain		57,030,052
Net increase in net assets resulting from operations	$	74,362,374

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	17,332,322		$	18,371,750
Net realized gain (loss)		40,458,867			(17,156,987	)
Change in net unrealized appreciation		16,571,185			41,178,093
Net increase in net assets resulting from operations		74,362,374			42,392,856
Distributions to shareholders from net investment income:
Series I		(8,703,100	)		(11,906,519	)
Series II		(6,565,728	)		(9,115,881	)
Total distributions from net investment income		(15,268,828	)		(21,022,400	)
Share transactions–net:
Series I		987,466			(19,927,647	)
Series II		51,205,717			(903,010,172	)
Net increase (decrease) in net assets resulting from share transactions		52,193,183			(922,937,819	)
Net increase (decrease) in net assets		111,286,729			(901,567,363	)
Net assets:
Beginning of period		1,155,829,740			2,057,397,103
End of period (includes undistributed net investment income of $17,066,939 and $15,003,445, respectively)	$	1,267,116,469		$	1,155,829,740

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. International Growth Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
J.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		0	.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 Canada Ltd. (formerly 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 May 2, 2011, 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 and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 1.11% and Series II shares to 1.36% of average daily net assets. Prior to May 2, 2011, the Adviser had contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of 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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $53,842.

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, 2011, 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, 2011, Invesco was paid $141,774 for accounting and fund administrative services and reimbursed $1,457,553 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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	$	20,666,342	$	62,701,441	$	—	$	83,367,783
Belgium		19,425,913		—		—		19,425,913
Brazil		29,634,611		—		—		29,634,611
Canada		75,788,134		—		—		75,788,134
China		—		18,973,119		—		18,973,119
Denmark		—		21,073,994		—		21,073,994
France		84,340,891		7,024,566		—		91,365,457
Germany		56,356,243		14,112,119		—		70,468,362
Hong Kong		—		18,910,571		—		18,910,571
India		—		15,118,914		—		15,118,914
Israel		20,643,705		—		—		20,643,705
Japan		—		124,784,472		—		124,784,472
Mexico		37,756,843		—		—		37,756,843
Netherlands		27,146,236		—		—		27,146,236
Russia		4,606,360		14,477,405		—		19,083,765

Invesco V.I. International Growth Fund

	Level 1*		Level 2*		Level 3		Total
Singapore	$	—	$	34,029,893	$	—	$	34,029,893
South Korea		23,462,371		13,171,296		—		36,633,667
Sweden		31,468,848		14,353,489		—		45,822,337
Switzerland		100,233,991		—		—		100,233,991
Taiwan		16,376,140		8,818,880		—		25,195,020
Turkey		8,105,933		—		—		8,105,933
United Kingdom		202,112,338		42,635,124		—		244,747,462
United States		92,933,236		—		—		92,933,236
	$	851,058,135	$	410,185,283	$	—	$	1,261,243,418

*  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, 2011, the Fund paid legal fees of $1,499 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	87,932,439
December 31, 2017		143,189,697
December 31, 2018		37,802,555
Total capital loss carryforward	$	268,924,691

*  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 2, 2011, the date of reorganization of Invesco Van Kampen V.I. International Growth Equity Fund into the Fund and realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

Invesco V.I. International Growth Fund

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2011 was $175,247,379 and $175,195,532, 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	$	358,577,075
Aggregate unrealized (depreciation) of investment securities		(3,175,251	)
Net unrealized appreciation of investment securities	$	355,401,824
Cost of investments for tax purposes is $905,841,594.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		2,181,242		$	64,470,467			3,482,926		$	94,266,556
Series II		2,204,312			64,208,102			6,653,404			171,405,013
Issued as reinvestment of dividends:
Series I		292,246			8,703,100			445,770			11,906,519
Series II		222,492			6,565,728			345,168			9,115,882
Issued in connection with acquisitions:(b)
Series I		426			13,190			—			—
Series II		1,107,888			34,002,342			—			—
Reacquired:
Series I		(2,453,663	)		(72,199,291	)		(4,909,461	)		(126,100,722	)
Series II		(1,841,444	)		(53,570,455	)		(45,442,204	)		(1,083,531,067	)
Net increase (decrease) in share activity		1,713,499		$	52,193,183			(39,424,397	)	$	(922,937,819	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 46% of the outstanding shares of the Fund. 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)

As of the open of business on May 2, 2011, the Fund acquired all the net assets of Invesco Van Kampen V.I. International Growth Equity Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Van Kampen V.I. International Growth Equity Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 1,108,314 shares of the Fund for 3,524,810 shares outstanding of Invesco Van Kampen V.I. International Growth Equity Fund as of the close of business on April 29, 2011. Each class of Invesco Van Kampen V.I. International Growth Equity Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco Van Kampen V.I. International Growth Equity Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco Van Kampen V.I. International Growth Equity Fund’s net assets at that date of $34,015,532 including $7,388,865 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $1,248,419,884. The net assets of the Fund immediately following the acquisition were $1,282,435,416.

Invesco V.I. International Growth 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 06/30/11	$	28.69	$	0.44	$	1.46		$	1.90		$	(0.44	)	$	—		$	(0.44	)	$	30.15		6.63	%	$	616,615		1.02	%(d)		1.03	%(d)		3.04	%(d)		15	%
Year ended 12/31/10		26.01		0.38		2.92			3.30			(0.62	)		—			(0.62	)		28.69		12.86			586,219		1.03			1.04			1.46			38
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
Series II
Six months ended 06/30/11		28.35		0.40		1.44			1.84			(0.33	)		—			(0.33	)		29.86		6.49			650,502		1.27	(d)		1.28	(d)		2.79	(d)		15
Year ended 12/31/10		25.63		0.31		2.89			3.20			(0.48	)		—			(0.48	)		28.35		12.61			569,610		1.28			1.29			1.21			38
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

(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. For the period ending June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $23,376,285 and sold of $7,185,188 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Van Kampen V.I. International Growth Equity Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $597,643 and $601,910 for Series I and Series II, 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,066.30	$	5.23	$	1,019.74	$	5.11		1.02	%
Series II		1,000.00		1,064.90		6.50		1,018.50		6.36		1.27

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper

Invesco V.I. International Growth Fund

performance universe and against the Lipper VA Underlying Funds – International Growth Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of the 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 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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. The Board noted that the Fund’s effective fee rate was below the effective fee rate of the other mutual fund advised by Invesco Advisers with comparable investment strategies.

  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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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. Leisure Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	6.80	%
Series II Shares	6.68
S&P 500 Index▼(Broad Market Index)	6.01
S&P 500 Consumer Discretionary Index▼(Style-Specific Index)	8.33

^▼Lipper Inc.

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

     The S&P 500 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (4/30/02)	4.48	%
5 Years	2.82
1 Year	37.52
Series II Shares
Inception	4.24	%
5 Years	2.58
1 Year	37.17

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 1.01% and 1.26%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.65% and 1.90%, respectively. The expense ratios presented above may vary from the expense

ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     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, 2012. See current prospectus for more information.

Invesco V.I. Leisure Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.18%(a)
Advertising–2.72%
Interpublic Group of Cos., Inc. (The)		33,026	$	412,825
National CineMedia, Inc.		8,516		144,005
				556,830
Apparel Retail–2.74%
Abercrombie & Fitch Co.–Class A		4,017		268,818
Prada S.P.A. (Italy)(b)		48,500		292,619
				561,437
Apparel, Accessories & Luxury Goods–1.22%
Coach, Inc.		3,917		250,414
Auto Parts & Equipment–3.98%
Autoliv, Inc. (Sweden)		5,043		395,623
Johnson Controls, Inc.		10,066		419,350
				814,973
Automobile Manufacturers–4.08%
Ford Motor Co.(b)		35,414		488,359
Honda Motor Co., Ltd. (Japan)		9,035		348,306
				836,665
Automotive Retail–2.16%
CarMax, Inc.(b)		13,361		441,848
Broadcasting–4.05%
CBS Corp.–Class B		13,250		377,493
Scripps Networks Interactive Inc.–Class A		9,264		452,824
				830,317
Cable & Satellite–9.86%
Comcast Corp.–Class A		32,660		827,604
DIRECTV–Class A(b)		16,863		856,978
Time Warner Cable, Inc.		4,318		336,977
				2,021,559
Casinos & Gaming–7.06%
Las Vegas Sands Corp.(b)		10,781		455,066
MGM Resorts International(b)		8,732		115,350
Penn National Gaming, Inc.(b)		21,748		877,314
				1,447,730
Computer Hardware–2.03%
Apple, Inc.(b)		1,237		415,224
Department Stores–5.06%
Kohl’s Corp.		8,438		421,984
Macy’s, Inc.		13,803		403,600
Nordstrom, Inc.		4,491		210,808
				1,036,392
Footwear–2.97%
Deckers Outdoor Corp.(b)		2,189		192,938
NIKE, Inc.–Class B		4,621		415,798
				608,736
Home Furnishings–3.55%
Mohawk Industries, Inc.(b)		12,137		728,099
Home Improvement Retail–2.71%
Home Depot, Inc. (The)		15,332		555,325
Homefurnishing Retail–1.07%
Bed Bath & Beyond Inc.(b)		3,775		220,347
Hotels, Resorts & Cruise Lines–6.58%
Choice Hotels International, Inc.		4,839		161,429
Hyatt Hotels Corp.–Class A(b)		8,514		347,542
Marriott International Inc.–Class A		15,456		548,533
Starwood Hotels & Resorts Worldwide, Inc.		5,211		292,024
				1,349,528
Hypermarkets & Super Centers–1.42%
Costco Wholesale Corp.		3,585		291,245
Internet Retail–5.45%
Amazon.com, Inc.(b)		3,385		692,198
Netflix, Inc.(b)		813		213,567
Priceline.com, Inc.(b)		415		212,451
				1,118,216
Internet Software & Services–3.96%
Baidu, Inc.–ADR (China)(b)		4,116		576,775
Google, Inc.–Class A(b)		312		157,991
Yandex N.V. (Netherlands)(b)(c)		2,147		76,240
				811,006
Motorcycle Manufacturers–1.08%
Harley-Davidson, Inc.		5,419		222,016
Movies & Entertainment–9.32%
Time Warner Inc.		10,246		372,647
Viacom Inc.–Class A(c)		6,907		397,014

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		8,339	$	425,289
Walt Disney Co. (The)		18,310		714,823
				1,909,773
Restaurants–8.00%
Buffalo Wild Wings, Inc.(b)		3,251		215,574
Chipotle Mexican Grill, Inc.(b)		848		261,345
Darden Restaurants, Inc.		7,415		368,971
P.F. Chang’s China Bistro, Inc.		4,397		176,935
Starbucks Corp.		15,647		617,900
				1,640,725
Soft Drinks–1.01%
Hansen Natural Corp.(b)		2,548		206,261
Specialized Consumer Services–1.85%
Weight Watchers International, Inc.		5,033		379,840
Specialty Stores–1.95%
Tiffany & Co.		5,096		400,138
Systems Software–3.30%
Rovi Corp.(b)		11,813		677,594
Total Common Stocks & Other Equity Interests (Cost $15,417,916)				20,332,238
Money Market Funds–0.67%
Liquid Assets Portfolio–Institutional Class(d)		68,023		68,023
Premier Portfolio–Institutional Class(d)		68,024		68,024
Total Money Market Funds (Cost $136,047)				136,047
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–99.84% (Cost $15,553,963)				20,468,285
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.74%
Liquid Assets Portfolio–Institutional Class (Cost $357,190)(d)(e)		357,190		357,190
TOTAL INVESTMENTS–101.59% (Cost $15,911,153)				20,825,475
OTHER ASSETS LESS LIABILITIES–(1.59)%				(324,954	)
NET ASSETS–100.00%			$	20,500,521

Investment Abbreviation:

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, 2011.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.
(e)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2011

Consumer Discretionary	87.5	%
Information Technology	9.3
Consumer Staples	2.4
Money Market Funds Plus Other Assets Less Liabilities	0.8

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $15,417,916)*	$	20,332,238
Investments in affiliated money market funds, at value and cost		493,237
Total investments, at value (Cost $15,911,153)		20,825,475
Receivable for:
Investments sold		417,263
Dividends		17,124
Investment for trustee deferred compensation and retirement plans		13,978
Other assets		1,111
Total assets		21,274,951
Liabilities:
Payable for:
Investments purchased		295,710
Fund shares reacquired		53,136
Collateral upon return of securities loaned		357,190
Accrued fees to affiliates		30,000
Accrued other operating expenses		21,260
Trustee deferred compensation and retirement plans		17,134
Total liabilities		774,430
Net assets applicable to shares outstanding	$	20,500,521
Net assets consist of:
Shares of beneficial interest	$	18,169,030
Undistributed net investment income		70,399
Undistributed net realized gain (loss)		(2,653,215	)
Unrealized appreciation		4,914,307
	$	20,500,521
Net Assets:
Series I	$	20,184,490
Series II	$	316,031
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		2,381,094
Series II		37,373
Series I:
Net asset value per share	$	8.48
Series II:
Net asset value per share	$	8.46

*  At June 30, 2011, securities with an aggregate value of $349,964 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $259)	$	111,688
Dividends from affiliated money market funds (includes securities lending income of $6,418)		6,529
Total investment income		118,217
Expenses:
Advisory fees		76,439
Administrative services fees		50,244
Custodian fees		6,436
Distribution fees — Series II		253
Transfer agent fees		1,580
Trustees’ and officers’ fees and benefits		8,198
Professional services fees		16,251
Other		7,561
Total expenses		166,962
Less: fees waived		(64,021	)
Net expenses		102,940
Net investment income		15,277
Realized and unrealized gain from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $85,725)		1,437,756
Foreign currencies		(428	)
		1,437,328
Change in net unrealized appreciation (depreciation) of:
Investment securities		(108,359	)
Foreign currencies		84
		(108,275	)
Net realized and unrealized gain		1,329,053
Net increase in net assets resulting from operations	$	1,344,330

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	15,277		$	82,921
Net realized gain		1,437,328			1,755,492
Change in net unrealized appreciation (depreciation)		(108,275	)		2,139,829
Net increase in net assets resulting from operations		1,344,330			3,978,242
Distributions to shareholders from net investment income:
Series I		—			(104,603	)
Series II		—			(460	)
Total distributions from net investment income		—			(105,063	)
Share transactions–net:
Series I		(1,917,545	)		(3,420,143	)
Series II		156,069			122,973
Net increase (decrease) in net assets resulting from share transactions		(1,761,476	)		(3,297,170	)
Net increase (decrease) in net assets		(417,146	)		576,009
Net assets:
Beginning of period		20,917,667			20,341,658
End of period (includes undistributed net investment income of $70,399 and $55,122, respectively)	$	20,500,521		$	20,917,667

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Leisure Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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. 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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, which may make the Fund more volatile.
	The leisure sector depends on consumer discretionary spending, which generally falls during economic downturns. Securities of gambling casinos are often subject to high price volatility and are considered speculative. Securities of companies that make video and electronic games may be affected by the games’ risk of rapid obsolescence.
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 Daily 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 Canada Ltd. (formerly 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, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses after fee waiver and/or expense reimbursement (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 total annual operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $64,021.

  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, 2011, 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, 2011, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $25,450 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs

Invesco V.I. Leisure Fund

(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, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	20,477,169	$	348,306	$	—	$	20,825,475

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, 2011, the Fund engaged in securities purchases of $30,467 and securities sales of $392,619, which resulted in net realized gains of $85,725.

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, 2011, the Fund paid legal fees of $644 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	4,070,110

*  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. Leisure 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, 2011 was $5,525,540 and $7,415,222, 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	$	4,959,077
Aggregate unrealized (depreciation) of investment securities		(65,190	)
Net unrealized appreciation of investment securities	$	4,893,887
Cost of investments for tax purposes is $15,931,588.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011 (a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		5,351		$	43,660			28,641		$	201,622
Series II		20,898			171,884			28,815			204,872
Issued as reinvestment of dividends:
Series I		—			—			14,816			104,602
Series II		—			—			65			460
Reacquired:
Series I		(240,876	)		(1,961,205	)		(531,332	)		(3,726,367	)
Series II		(1,936	)		(15,815	)		(11,814	)		(82,359	)
Net increase (decrease) in share activity		(216,563	)	$	(1,761,476	)		(470,809	)	$	(3,297,170	)

^(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 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
						Net gains																						expenses			expenses			Ratio of net
						(losses) on																						to average			to average net			investment
	Net asset		Net			securities						Dividends			Distributions													net assets			assets without			income
	value,		investment			(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			(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 06/30/11	$	7.94	$	0.01	(c)	$	0.53		$	0.54		$	—		$	—		$	—		$	8.48		6.80	%	$	20,184		1.01	%(d)		1.64	%(d)		0.15	%(d)		27	%
Year ended 12/31/10		6.55		0.03	(c)		1.40			1.43			(0.04	)		—			(0.04	)		7.94		21.88			20,772		1.01			1.65			0.41			59
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
Series II
Six months ended 06/30/11		7.93		(0.00	)(c)		0.53			0.53			—			—			—			8.46		6.68			316		1.26	(d)		1.89	(d)		(0.10	)(d)		27
Year ended 12/31/10		6.55		0.01	(c)		1.41			1.42			(0.04	)		—			(0.04	)		7.93		21.70			146		1.26			1.90			0.16			59
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

(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 $20,348 and $204 for Series I and Series II, 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,068.00	$	5.18	$	1,019.79	$	5.06		1.01	%
Series II		1,000.00		1,066.80		6.46		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, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper

Invesco V.I. Leisure Fund

performance universe . The Board noted that performance of Series I shares of the Fund was in the second quintile of the 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). Invesco Advisers advised the Board that a new lead portfolio manager was named in May and that performance was impacted by the conservative, quality bias of the Fund which caused underperformance 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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. The Board noted that the Fund’s effective fee rate above the effective fee rate of the other mutual fund with investment strategies comparable to the 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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	6.38	%
Series II Shares	6.35
S&P 500 Index▼ (Broad Market Index)	6.01
Russell Midcap Index▼ (Style-Specific Index)	8.08
Lipper VUF Mid-Cap Core Funds Index▼ (Peer Group Index)	7.50

^▼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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (9/10/01)	7.59	%
5 Years	6.23
1 Year	27.09
Series II Shares
Inception (9/10/01)	7.34	%
5 Years	5.99
1 Year	26.74

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 1.03% and 1.28%, 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

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–83.23%(a)
Aerospace & Defense–5.86%
Alliant Techsystems Inc.		118,923	$	8,482,778
ITT Corp.		159,605		9,405,523
Moog Inc.–Class A(b)		102,893		4,477,903
Rockwell Collins, Inc.		85,806		5,293,372
				27,659,576
Air Freight & Logistics–0.82%
Expeditors International of Washington, Inc.		75,261		3,852,611
Apparel Retail–2.37%
American Eagle Outfitters, Inc.		361,052		4,603,413
Guess?, Inc.		98,359		4,136,979
Prada S.p.A. (Italy)(b)		404,500		2,440,505
				11,180,897
Apparel, Accessories & Luxury Goods–1.47%
Carter’s, Inc.(b)		161,982		4,982,566
True Religion Apparel, Inc.(b)		68,009		1,977,702
				6,960,268
Application Software–1.20%
Adobe Systems Inc.(b)		179,381		5,641,532
Asset Management & Custody Banks–3.77%
Legg Mason, Inc.		224,551		7,356,291
Northern Trust Corp.		227,252		10,444,502
				17,800,793
Biotechnology–0.96%
Biogen Idec Inc.(b)		42,590		4,553,723
Brewers–1.69%
Molson Coors Brewing Co.–Class B		178,140		7,969,984
Communications Equipment–2.80%
Brocade Communications Systems, Inc.(b)		304,206		1,965,171
Motorola Mobility Holdings Inc.(b)		218,786		4,822,044
Motorola Solutions, Inc.(b)		102,011		4,696,586
Research In Motion Ltd. (Canada)(b)		60,000		1,731,000
				13,214,801
Computer & Electronics Retail–1.97%
Best Buy Co., Inc.		163,423		5,133,116
GameStop Corp.–Class A(b)		156,924		4,185,163
				9,318,279
Computer Storage & Peripherals–0.67%
SMART Technologies Inc.–Class A (Canada)(b)		557,370		3,177,009
Construction & Engineering–2.00%
Chicago Bridge & Iron Co. N.V.–New York Shares (Netherlands)		133,006		5,173,933
Foster Wheeler AG (Switzerland)(b)		140,720		4,275,074
				9,449,007
Construction & Farm Machinery & Heavy Trucks–0.82%
Terex Corp.(b)		135,538		3,856,056
Construction Materials–0.71%
CRH PLC (Ireland)		151,576		3,357,509
Data Processing & Outsourced Services–0.66%
Western Union Co.		156,055		3,125,782
Department Stores–0.76%
Macy’s, Inc.		122,861		3,592,456
Electric Utilities–0.93%
Edison International		113,780		4,408,975
Electrical Components & Equipment–1.72%
Cooper Industries PLC–Class A (Ireland)		58,917		3,515,577
Thomas & Betts Corp.(b)		85,556		4,607,191
				8,122,768
Electronic Manufacturing Services–0.70%
Molex, Inc.		128,999		3,324,304
Environmental & Facilities Services–1.19%
Republic Services, Inc.		182,609		5,633,488
Fertilizers & Agricultural Chemicals–0.65%
Scotts Miracle-Gro Co. (The)–Class A		59,575		3,056,793
Food Retail–3.14%
Kroger Co. (The)		97,652		2,421,769
Safeway, Inc.		531,129		12,412,485
				14,834,254
Gold–0.56%
Agnico-Eagle Mines Ltd. (Canada)		41,520		2,621,158
Health Care Equipment–2.98%
Boston Scientific Corp.(b)		1,173,153		8,106,487
Hologic, Inc.(b)		296,742		5,985,286
				14,091,773

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
Health Care Facilities–0.97%
Rhoen-Klinikum AG (Germany)		110,662	$	2,671,158
VCA Antech, Inc.(b)		89,032		1,887,478
				4,558,636
Health Care Services–2.12%
DaVita, Inc.(b)		28,511		2,469,338
Laboratory Corp. of America Holdings(b)		36,264		3,509,993
Quest Diagnostics Inc.		68,385		4,041,553
				10,020,884
Heavy Electrical Equipment–0.25%
Alstom S.A. (France)		19,088		1,177,338
Industrial Conglomerates–0.59%
Tyco International Ltd.		56,405		2,788,099
Industrial Machinery–2.02%
Parker Hannifin Corp.		40,824		3,663,546
SPX Corp.		70,911		5,861,503
				9,525,049
Insurance Brokers–1.37%
Marsh & McLennan Cos., Inc.		207,063		6,458,295
Leisure Products–0.44%
Hasbro, Inc.		47,704		2,095,637
Life & Health Insurance–0.93%
Torchmark Corp.		68,103		4,368,126
Life Sciences Tools & Services–2.42%
Agilent Technologies, Inc.(b)		126,598		6,470,424
Waters Corp.(b)		51,739		4,953,492
				11,423,916
Managed Health Care–1.75%
Aetna Inc.		186,948		8,242,537
Marine–1.07%
Kirby Corp.(b)		89,512		5,072,645
Multi-Sector Holdings–0.14%
PICO Holdings, Inc.(b)		23,286		675,294
Oil & Gas Equipment & Services–5.70%
Cal Dive International, Inc.(b)		631,004		3,773,404
Cameron International Corp.(b)		109,715		5,517,567
Dresser-Rand Group, Inc.(b)		116,161		6,243,654
ShawCor Ltd. (Canada)		135,572		4,163,876
Weatherford International Ltd.(b)		384,021		7,200,394
				26,898,895
Oil & Gas Exploration & Production–2.60%
Newfield Exploration Co.(b)		49,733		3,382,839
Southwestern Energy Co.(b)		207,796		8,910,292
				12,293,131
Oil & Gas Refining & Marketing–0.48%
Valero Energy Corp.		88,288		2,257,524
Paper Packaging–0.25%
Sealed Air Corp.		49,843		1,185,765
Personal Products–1.04%
Avon Products, Inc.		175,348		4,909,744
Pharmaceuticals–1.11%
Hospira, Inc.(b)		49,112		2,782,686
Teva Pharmaceutical Industries Ltd.–ADR (Israel)		50,671		2,443,356
				5,226,042
Property & Casualty Insurance–2.08%
Progressive Corp. (The)		459,531		9,824,773
Restaurants–0.92%
Darden Restaurants, Inc.		87,582		4,358,080
Semiconductor Equipment–0.34%
FormFactor Inc.(b)		177,735		1,610,279
Semiconductors–2.37%
Linear Technology Corp.		185,541		6,126,564
Microchip Technology, Inc.		66,288		2,512,978
Xilinx, Inc.		69,933		2,550,456
				11,189,998
Specialized Finance–0.69%
Moody’s Corp.		85,062		3,262,128
Specialty Chemicals–2.70%
International Flavors & Fragrances Inc.		103,362		6,639,975
Sigma-Aldrich Corp.		82,959		6,087,531
				12,727,506
Specialty Stores–0.29%
Staples, Inc.		86,801		1,371,456
Systems Software–4.19%
CA, Inc.		328,611		7,505,475
Symantec Corp.(b)		623,130		12,288,124
				19,793,599
Thrifts & Mortgage Finance–1.82%
People’s United Financial Inc.		639,331		8,592,609

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
Trucking–1.12%
Con-way Inc.		135,598	$	5,262,558
Wireless Telecommunication Services–1.06%
MetroPCS Communications, Inc.(b)		289,931		4,989,712
Total Common Stocks & Other Equity Interests (Cost $318,279,191)				392,964,051
Money Market Funds–14.90%
Liquid Assets Portfolio–Institutional Class(c)		35,184,050		35,184,050
Premier Portfolio–Institutional Class(c)		35,184,049		35,184,049
Total Money Market Funds (Cost $70,368,099)				70,368,099
TOTAL INVESTMENTS–98.13% (Cost $388,647,290)				463,332,150
OTHER ASSETS LESS LIABILITIES–1.87%				8,842,740
NET ASSETS–100.00%			$	472,174,890

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, 2011

Industrials	17.4	%
Information Technology	12.9
Health Care	12.3
Financials	10.8
Energy	8.8
Consumer Discretionary	8.2
Consumer Staples	5.9
Materials	4.9
Telecommunication Services	1.1
Utilities	0.9
Money Market Funds Plus Other Assets Less Liabilities	16.8

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $318,279,191)	$	392,964,051
Investments in affiliated money market funds, at value and cost		70,368,099
Total investments, at value (Cost $388,647,290)		463,332,150
Receivable for:
Investments sold		9,185,877
Fund shares sold		304,423
Dividends		442,530
Investment for trustee deferred compensation and retirement plans		26,670
Total assets		473,291,650
Liabilities:
Payable for:
Fund shares reacquired		374,522
Accrued fees to affiliates		636,240
Accrued other operating expenses		26,556
Trustee deferred compensation and retirement plans		79,442
Total liabilities		1,116,760
Net assets applicable to shares outstanding	$	472,174,890
Net assets consist of:
Shares of beneficial interest	$	382,363,892
Undistributed net investment income		1,131,430
Undistributed net realized gain		13,987,308
Unrealized appreciation		74,692,260
	$	472,174,890
Net Assets:
Series I	$	401,074,931
Series II	$	71,099,959
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		30,420,118
Series II		5,444,996
Series I:
Net asset value per share	$	13.18
Series II:
Net asset value per share	$	13.06

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $19,201)	$	2,535,792
Dividends from affiliated money market funds (includes securities lending income of $6,552)		44,885
Total investment income		2,580,677
Expenses:
Advisory fees		1,741,532
Administrative services fees		654,985
Custodian fees		6,147
Distribution fees–Series II		82,587
Transfer agent fees		9,555
Trustees’ and officers’ fees and benefits		15,574
Other		16,947
Total expenses		2,527,327
Less: Fees waived		(53,445	)
Net expenses		2,473,882
Net investment income		106,795
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $114,930)		47,686,839
Foreign currencies		(5,409	)
Option contracts written		21,601
		47,703,031
Change in net unrealized appreciation (depreciation) of:
Investment securities		(17,841,988	)
Foreign currencies		7,628
		(17,834,360	)
Net realized and unrealized gain		29,868,671
Net increase in net assets resulting from operations	$	29,975,466

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	106,795		$	1,149,522
Net realized gain		47,703,031			41,205,337
Change in net unrealized appreciation (depreciation)		(17,834,360	)		18,415,260
Net increase in net assets resulting from operations		29,975,466			60,770,119
Distributions to shareholders from net investment income:
Series I		—			(2,274,130	)
Series II		—			(186,084	)
Total distributions from net investment income		—			(2,460,214	)
Share transactions–net:
Series I		(36,774,888	)		(71,565,903	)
Series II		5,574,739			(1,706,198	)
Net increase (decrease) in net assets resulting from share transactions		(31,200,149	)		(73,272,101	)
Net increase (decrease) in net assets		(1,224,683	)		(14,962,196	)
Net assets:
Beginning of period		473,399,573			488,361,769
End of period (includes undistributed net investment income of $1,131,430 and $1,024,635, respectively)	$	472,174,890		$	473,399,573

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Mid Cap Core Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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. Mid Cap 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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. Mid Cap Core Equity Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.
L.	Call Options Written and Purchased — The Fund may write and/or buy call options. A call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.
	When the Fund writes a call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written 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 and unrealized gains and losses on these contracts are included in the Statement of Operation. 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.
	When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized

Invesco V.I. Mid Cap Core Equity Fund

gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

M.

Put Options Purchased — The Fund may purchase put options including options on securities indexes and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $500 million		0	.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 Canada Ltd. (formerly 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, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual 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 expnese reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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, 2012, 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, 2011, the Adviser waived advisory fees of $53,445.

  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, 2011, 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, 2011, Invesco was paid $60,208 for accounting and fund administrative services and reimbursed $594,777 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

Invesco V.I. Mid Cap Core Equity Fund

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	463,332,150	$	—	$	—	$	463,332,150

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, 2011

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

Transactions During the Period
	Call Option Contracts
	Number of			Premiums
	Contracts			Received
Beginning of period		—		$	—
Written		786			21,601
Expired		(786	)		(21,601	)
End of period		—		$	—

	Location of Gain (Loss) on
	Statement of Operations
	Option Contracts
Realized Gain (Loss)
Equity risk	$	21,601

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, 2011, the Fund engaged in securities purchases of $581,844 and securities sales of $508,551, which resulted in net realized gains of $114,930.

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

Invesco V.I. Mid Cap Core Equity Fund

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, 2011, the Fund paid legal fees of $972 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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.

  The Fund had a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	30,475,922

*  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, 2011 was $116,701,741 and $174,163,301, 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	$	79,968,285
Aggregate unrealized (depreciation) of investment securities		(8,523,226	)
Net unrealized appreciation of investment securities	$	71,445,059
Cost of investments for tax purposes is $391,887,091

Invesco V.I. Mid Cap Core Equity Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		1,354,495		$	17,518,331			1,854,251		$	21,138,305
Series II		1,502,083			19,329,945			2,043,008			22,984,219
Issued as reinvestment of dividends:
Series I		—			—			201,607			2,274,130
Series II		—			—			16,630			186,084
Reacquired:
Series I		(4,183,103	)		(54,293,219	)		(8,395,150	)		(94,978,338	)
Series II		(1,071,477	)		(13,755,206	)		(2,228,501	)		(24,876,501	)
Net increase (decrease) in share activity		(2,398,002	)	$	(31,200,149	)		(6,508,155	)	$	(73,272,101	)

^(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.

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			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 to
	beginning		Investment			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			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 06/30/11	$	12.39	$	0.01	(c)	$	0.78		$	0.79		$	—		$	—		$	—		$	13.18		6.38	%	$	401,075		1.00	%(d)		1.02	%(d)		0.08	%(d)		28	%
Year ended 12/31/10		10.92		0.03	(c)		1.50			1.53			(0.06	)		—			(0.06	)		12.39		14.11			411,812		1.01			1.03			0.27			61
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
Series II
Six months ended 06/30/11		12.28		(0.01	)(c)		0.79			0.78			—			—			—			13.06		6.35			71,100		1.25	(d)		1.27	(d)		(0.17	)(d)		28
Year ended 12/31/10		10.83		0.00	(c)		1.49			1.49			(0.04	)		—			(0.04	)		12.28		13.78			61,587		1.26			1.28			0.02			61
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

(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 do not reflect charges assessed in connection with a variable product, which if included would reduce total returns and are not annualized for periods less than one year, if applicable.
(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 $417,787 and $66,617 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,063.80	$	5.12	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		1,063.50		6.40		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, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 and against the Lipper VA Underlying Funds – Mid-Cap Core Funds Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile for the one year period and the second quintile of the 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 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

Invesco V.I. Mid Cap Core Equity Fund

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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s effective fee rate was above the effective fee rate of one mutual fund with comparable investment strategies.

  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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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

About your Fund

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.

The Fund is a money market fund, and an investment in the Fund is not a deposit in a bank and 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, you may lose money by investing in the Fund.

Invesco V.I. Money Market Fund

Schedule of Investments

June 30, 2011

(Unaudited)

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Commercial Paper–54.21%(a)
Asset-Backed Securities–Consumer Receivables–4.87%
Amsterdam Funding Corp.(b)		0.16	%		08/09/11	$	2,000	$	1,999,654
Thames Asset Global Securitization No. 1, Inc.(b)(c)		0.14	%		07/13/11		3,187		3,186,851
									5,186,505
Asset-Backed Securities–Fully Backed–2.81%
Kells Funding LLC (CEP–Federal Republic of Germany)(b)(c)		0.31	%		09/19/11		3,000		2,997,933
Asset-Backed Securities–Fully Supported Bank–12.08%
Lexington Parker Capital Co., LLC
Series A, (Multi-CEP’S-Liberty Hampshire Co., LLC; agent)(b)(c)		0.32	%		07/05/11		5,000		4,999,822
Series A, (Multi-CEP’S-Liberty Hampshire Co., LLC; agent)(b)(c)		0.32	%		07/08/11		1,000		999,938
LMA Americas LLC (CEP–Credit Agricole Corp. & Investment Bank)(b)(c)		0.24	%		07/18/11		3,875		3,874,561
Surrey Funding Corp. (CEP–Barclays Bank PLC)(b)(c)		0.26	%		08/02/11		3,000		2,999,307
									12,873,628
Asset-Backed Securities–Multi-Purpose–10.56%
Atlantic Asset Securitization LLC(b)		0.16	%		07/18/11		5,250		5,249,604
Nieuw Amsterdam Receivables Corp.(b)(c)		0.23	%		07/12/11		3,000		2,999,789
Regency Markets No. 1, LLC(b)(c)		0.24	%		07/20/11		3,000		2,999,620
									11,249,013
Asset-Backed Securities–Securities–6.57%
Scaldis Capital Ltd./LLC(b)(c)		0.17	%		07/19/11		5,000		4,999,575
Solitaire Funding Ltd./LLC(b)(c)		0.15	%		07/12/11		2,000		1,999,908
									6,999,483
Diversified Banks–4.58%
Societe Generale North America, Inc.(c)		0.25	%		07/20/11		4,875		4,874,357
Household Products–1.02%
Reckitt Benckister Treasury Services PLC(b)(c)		0.32	%		07/06/11		1,090		1,089,952
Life & Health Insurance–4.69%
MetLife Short Term Funding LLC(b)		0.16	%		07/15/11		5,000		4,999,689
Regional Banks–7.03%
ANZ National (Int’l) Ltd.(b)(c)		0.28	%		10/17/11		3,000		2,997,480
Nordea North America Inc.(c)		0.29	%		10/13/11		4,500		4,496,295
									7,493,775
Total Commercial Paper (Cost $57,764,335)									57,764,335

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
Variable Rate Demand Notes–21.48%(d)
Credit Enhanced–21.48%
Atlanticare Health Services, Inc.; Series 2003, VRD Taxable Bonds (LOC–Wells Fargo Bank, N.A.)(e)		0.19	%		10/01/33	$	4,800	$	4,800,000
Benjamin Rose Institute (The) (Kethley House); Series 2005, VRD Taxable Notes (LOC–JPMorgan Chase Bank, N.A.)(e)		0.18	%		12/01/28		4,800		4,800,000
Collier (County of), Florida Industrial Development Authority (Allete, Inc.); Series 2006, Ref. VRD IDR (LOC–Wells Fargo Bank, N.A.)(e)		0.13	%		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.)(e)		0.09	%		05/15/17		600		600,000
Massachusetts (State of) Housing Finance Agency; Series 2009 B, VRD Taxable RB (LOC–Bank of America, N.A.)(e)		0.12	%		01/01/44		4,800		4,800,000
Miami-Dade (County of), Florida Industrial Development Authority (Professional Modification Services, Inc.); Series 1998, VRD RB (LOC–JPMorgan Chase Bank, N.A.)(e)		0.13	%		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.)(e)		0.09	%		03/01/26		385		385,000
Ogden (City of), Utah Redevelopment Agency; Series 2009 B-1, Ref. VRD Taxable RB (LOC–Wells Fargo Bank, N.A.)(e)		0.19	%		12/01/27		2,555		2,555,000
Pitney Road Partners, LLC; Series 2008, VRD Notes (CEP–General Electric Capital Corp.)(b)		0.28	%		07/01/25		2,055		2,055,000
Rock Island (County of), Illinois Metropolitan Airport Authority (Quad City International Airport Air Freight); Series 1998 A, VRD Priority RB (LOC–U.S. Bank, N.A.)(e)		0.17	%		12/01/18		390		390,000
St. Paul (City of), Minnesota Port Authority; Series 2009-10 CC, VRD District Cooling RB (LOC–Deutsche Bank AG)(c)(e)		0.12	%		03/01/29		500		500,000
Total Variable Rate Demand Notes (Cost $22,885,000)									22,885,000
Certificates of Deposit–10.32%
Bank of Tokyo-Mitsubishi UFJ Ltd. (The) (Cayman Islands)(c)		0.05	%		07/01/11		5,000		4,999,999
Credit Agricole Corporate & Investment Bank		0.38	%		07/07/11		1,000		1,000,000
Deutsche Bank AG (Cayman Islands)(c)		0.01	%		07/01/11		5,000		5,000,000
Total Certificates of Deposit (Cost $10,999,999)									10,999,999
U.S. Government Sponsored Agency Securities–4.49%
Federal Home Loan Bank (FHLB)–4.49%
Federal Home Loan Bank Unsec. Disc. Notes (Cost $4,789,084)		0.001	%		07/01/11		4,789		4,789,084
TOTAL INVESTMENTS (excluding Repurchase Agreements)–90.50% (Cost $96,438,418)									96,438,418
						Repurchase
						Amount
Repurchase Agreements–9.38%(f)
BMO Capital Markets Corp., Joint agreement dated 06/30/11, aggregate maturing value $150,000,333 (collateralized by Corporate obligations valued at $153,000,859; 0%-6.26%, 05/13/16-12/12/49)		0.08	%		07/01/11	$	5,000,011		5,000,000
Wells Fargo Securities, LLC, Joint agreement dated 06/30/11, aggregate maturing value $650,002,167 (collateralized by U.S. Government Sponsored Agency & Corporate obligations valued at $682,500,000; 0%-9.79%, 03/15/12-02/12/51)		0.12	%		07/01/11		5,000,017		5,000,000
Total Repurchase Agreements (Cost $10,000,000)									10,000,000
TOTAL INVESTMENTS(g)(h)–99.88% (Cost $106,438,418)									106,438,418
OTHER ASSETS LESS LIABILITIES–0.12%									126,133
NET ASSETS–100.00%								$	106,564,551

Investment Abbreviations:

CEP	– Credit Enhancement Provider
Disc.	– Discounted
IDR	– Industrial Development Revenue Bonds
LOC	– Letter of Credit
RB	– Revenue Bonds
Ref	– Refunding
Unsec.	– Unsecured
VRD	– Variable Rate Demand

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

Invesco V.I. Money Market Fund

Notes to Schedule of Investments:

(a)	Security may be traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the 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, 2011 was $50,448,683, which represented 47.34% of the Trust’s Net Assets.
(c)	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: United Kingdom: 17.2%; Cayman Islands: 9.4%; France: 8.2%; other countries less than 5% each: 20.6%.
(d)	Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2011.
(e)	Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
(f)	Principal amount equals value at period end. See Note 1I.
(g)	Also represents cost for federal income tax purposes.
(h)	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
Wells Fargo Bank, N.A.		7.9	%
JP Morgan Chase Bank, N.A.		5.8
Liberty Hampshire Co.		5.6
Deutsche Bank AG		5.2

Portfolio Composition*

Number of days to Maturity

as of June 30, 2011

1-7	50.6	%
8-30	26.1
31-60	15.1
61-90	6.2
91-180	1.8
181+	0.2

*  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, 2011

(Unaudited)

Assets:
Investments, excluding repurchase agreements, at value and cost	$	96,438,418
Repurchase agreements, at value and cost		10,000,000
Total investments, at value and cost		106,438,418
Cash		75,895
Receivable for:
Investments sold		205,000
Fund shares sold		75,671
Interest		5,038
Investment for trustee deferred compensation and retirement plans		43,909
Total assets		106,843,931
Liabilities:
Payable for:
Fund shares reacquired		82,889
Dividends		7,726
Accrued fees to affiliates		117,004
Accrued other operating expenses		18,976
Trustee deferred compensation and retirement plans		52,785
Total liabilities		279,380
Net assets applicable to shares outstanding	$	106,564,551
Net assets consist of:
Shares of beneficial interest	$	106,566,694
Undistributed net realized gain (loss)		(2,143	)
	$	106,564,551
Net Assets:
Series I	$	105,575,345
Series II	$	989,206
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		105,576,265
Series II		989,003
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, 2011

(Unaudited)

Investment income:
Interest	$	75,202
Expenses:
Advisory fees		127,346
Administrative services fees		76,884
Custodian fees		6,654
Distribution fees — Series II		1,253
Transfer agent fees		2,606
Trustees’ and officers’ fees and benefits		8,457
Professional services fees		14,765
Other		3,894
Total expenses		241,859
Less: Fees waived		(181,051	)
Net expenses		60,808
Net investment income		14,394
Net increase in net assets resulting from operations	$	14,394

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	14,394		$	55,671
Net realized gain (loss)		—			(2,143	)
Net increase in net assets resulting from operations		14,394			53,528
Distributions to shareholders from net investment income:
Series I		(14,219	)		(53,205	)
Series II		(175	)		(2,466	)
Total distributions from net investment income		(14,394	)		(55,671	)
Share transactions–net:
Series I		79,996,971			(7,905,234	)
Series II		(35,037	)		(665,170	)
Net increase (decrease) in net assets resulting from share transactions		79,961,934			(8,570,404	)
Net increase (decrease) in net assets		79,961,934			(8,572,547	)
Net assets:
Beginning of period		26,602,617			35,175,164
End of period	$	106,564,551		$	26,602,617

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Money Market Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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.

Invesco V.I. Money Market Fund

	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 Daily 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 Canada Ltd. (formerly Invesco Trimark Ltd.) (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid

Invesco V.I. Money Market Fund

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, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual 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 operating expenses after fee waiver and/or expense reimbursment to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. The advisor 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 reimburse 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, 2011, Invesco voluntarily waived advisory fees of $127,346 and reimbursed Fund expenses of $52,452 and reimbursed Series II expenses of $1,253, in order to increase the fund’s yield.

  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, 2011, 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, 2011, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $52,090 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Short-term Investments	$	—	$	106,438,418	$	—	$	106,438,418

Invesco V.I. Money Market 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.

  During the six months ended June 30, 2011, the Fund paid legal fees of $649 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 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 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2018	$	2,143

*  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—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		148,910,105		$	148,910,105			9,579,686		$	9,579,686
Series II		—			—			36,103			36,103
Issued as reinvestment of dividends:
Series I		4,169			4,169			53,205			53,205
Series II		175			175			2,466			2,466
Reacquired:
Series I		(68,917,303	)		(68,917,303	)		(17,538,125	)		(17,538,125	)
Series II		(35,212	)		(35,212	)		(703,739	)		(703,739	)
Net increase (decrease) in share activity		79,961,934		$	79,961,934			(8,570,404	)	$	(8,570,404	)

(a)

There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund that owns 10% 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.

77% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco.

Invesco V.I. Money Market Fund

NOTE 8—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 net
																					to average			assets without			Ratio of net
	Net asset					Net gains					Dividends										net assets			fee waivers			investment
	value,		Net			(losses) on			Total from		from net			Net asset					Net assets,		with fee waivers			and/or			income to
	beginning		investment			securities			investment		investment			value, end		Total			end of period		and/or expenses			expenses			average
	of period		income			(realized)			operations		income			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets
Series I
Six months ended 06/30/11	$	1.00	$	0.00	(b)	$	—		$	0.00	$	(0.00	)	$	1.00		0.02	%	$	105,575		0.20	%(c)		0.76	%(c)		0.04	%(c)
Year ended 12/31/10		1.00		0.00	(b)		(0.00	)		0.00		(0.00	)		1.00		0.18			25,578		0.16			1.01			0.18
Year ended 12/31/09		1.00		0.00	(b)		—			0.00		(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		(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		(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		(0.04	)		1.00		4.27			43,568		0.90			0.90			4.20
Series II
Six months ended 06/30/11		1.00		0.00	(b)		—			0.00		(0.00	)		1.00		0.02			989		0.20	(c)		1.01	(c)		0.04	(c)
Year ended 12/31/10		1.00		0.00	(b)		(0.00	)		0.00		(0.00	)		1.00		0.18			1,024		0.16			1.26			0.18
Year ended 12/31/09		1.00		0.00	(b)		—			0.00		(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		(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		(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		(0.04	)		1.00		4.01			2,341		1.15			1.15			3.95

(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 based on average daily net assets (000’s) of $63,190 and $1,011 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,000.20	$	0.99	$	1,023.80	$	1.00		0.20	%
Series II		1,000.00		1,000.20		0.99		1,023.80		1.00		0.20

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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. Money Market Fund

to the performance of funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Money Market Funds Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of the 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 performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the Index for the three and five year periods. Invesco Advisers advised the Board that the Fund is viewed as a convenience vehicle for exchanges into other Invesco Funds and is priced accordingly. 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rate of one mutual fund with comparable investment strategies. The Board noted that Invesco Advisers and its affiliates advise off-shore money market funds with similar investment strategies, but the Board did not consider fee comparisons with the Fund to be apt

  Other than the funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other 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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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 § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.87	%
Series II Shares	5.81
S&P 500 Index▼ (Broad Market/Style-Specific Index)	6.01
Lipper VUF S&P 500 Index▼ (Peer Group Index)	5.85
▼ Lipper Inc.

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

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

     The Lipper VUF S&P 500 Index is an unmanaged index considered representative of the S&P 500 variable insurance underlying funds tracked by Lipper.

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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (5/18/98)			2.86	%
	10	Years	2.43
	5	Years	2.76
	1	Year	30.42
Series II Shares
Inception (6/5/00)			0.36	%
	10	Years	2.17
	5	Years	2.51
	1	Year	30.26

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley Variable Investment S&P 500 Index Portfolio, 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 0.51% and 0.76%, 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. 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 Fund operating expenses after 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

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.43%(a)
Advertising–0.16%
Interpublic Group of Cos., Inc. (The)		4,803	$	60,038
Omnicom Group, Inc.		2,738		131,862
				191,900
Aerospace & Defense–2.76%
Boeing Co. (The)		7,194		531,852
General Dynamics Corp.		3,624		270,060
Goodrich Corp.		1,215		116,033
Honeywell International, Inc.		7,668		456,936
ITT Corp.		1,793		105,662
L-3 Communications Holdings, Inc.		1,042		91,123
Lockheed Martin Corp.		2,774		224,611
Northrop Grumman Corp.		2,851		197,717
Precision Castparts Corp.		1,401		230,675
Raytheon Co.		3,458		172,381
Rockwell Collins, Inc.		1,500		92,535
United Technologies Corp.		8,918		789,332
				3,278,917
Agricultural Products–0.17%
Archer-Daniels-Midland Co.		6,643		200,286
Air Freight & Logistics–1.03%
C.H. Robinson Worldwide, Inc.		1,587		125,119
Expeditors International of Washington, Inc.		2,068		105,861
FedEx Corp.		3,075		291,664
United Parcel Service, Inc.–Class B		9,610		700,857
				1,223,501
Airlines–0.07%
Southwest Airlines Co.		7,714		88,094
Aluminum–0.14%
Alcoa Inc.		10,365		164,389
Apparel Retail–0.46%
Abercrombie & Fitch Co.–Class A		863		57,752
Gap, Inc. (The)		3,780		68,418
Limited Brands, Inc.		2,457		94,472
Ross Stores, Inc.		1,138		91,176
TJX Cos., Inc. (The)		3,761		197,565
Urban Outfitters, Inc.(b)		1,212		34,118
				543,501
Apparel, Accessories & Luxury Goods–0.30%
Coach, Inc.		2,860		182,840
Polo Ralph Lauren Corp.		625		82,881
VF Corp.		851		92,385
				358,106
Application Software–0.61%
Adobe Systems Inc.(b)		4,908		154,357
Autodesk, Inc.(b)		2,249		86,811
Citrix Systems, Inc.(b)		1,831		146,480
Compuware Corp.(b)		2,084		20,340
Intuit Inc.(b)		2,665		138,207
Salesforce.com, Inc.(b)		1,173		174,753
				720,948
Asset Management & Custody Banks–1.25%
Ameriprise Financial, Inc.		2,360		136,125
Bank of New York Mellon Corp.		12,100		310,002
BlackRock, Inc.		935		179,342
Federated Investors, Inc.–Class B		860		20,503
Franklin Resources, Inc.		1,404		184,331
Invesco Ltd.(c)		4,502		105,347
Janus Capital Group Inc.		1,825		17,228
Legg Mason, Inc.		1,476		48,354
Northern Trust Corp.		2,355		108,236
State Street Corp.		4,904		221,121
T. Rowe Price Group Inc.		2,530		152,660
				1,483,249
Auto Parts & Equipment–0.23%
Johnson Controls, Inc.		6,603		275,081
Automobile Manufacturers–0.43%
Ford Motor Co.(b)		37,015		510,437
Automotive Retail–0.22%
AutoNation, Inc.(b)		618		22,625
AutoZone, Inc.(b)		250		73,713
CarMax, Inc.(b)		2,232		73,812
O’Reilly Automotive, Inc.(b)		1,342		87,914
				258,064
Biotechnology–1.20%
Amgen Inc.(b)		9,059		528,593
Biogen Idec Inc.(b)		2,353		251,583
Celgene Corp.(b)		4,509		271,983

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)
Cephalon Inc.(b)		764	$	61,043
Gilead Sciences, Inc.(b)		7,669		317,573
				1,430,775
Brewers–0.06%
Molson Coors Brewing Co.–Class B		1,571		70,287
Broadcasting–0.28%
CBS Corp.–Class B		6,516		185,641
Discovery Communications, Inc.–Class A(b)		2,686		110,018
Scripps Networks Interactive Inc.–Class A		883		43,161
				338,820
Building Products–0.04%
Masco Corp.		3,478		41,840
Cable & Satellite–1.16%
AMC Networks Inc.(b)		1		22
Cablevision Systems Corp.(b)		2,242		58,853
Comcast Corp.–Class A		26,957		683,090
DIRECTV–Class A(b)		7,481		380,184
Time Warner Cable, Inc.		3,277		255,737
				1,377,886
Casinos & Gaming–0.13%
International Game Technology		2,956		51,966
Wynn Resorts Ltd.		740		106,220
				158,186
Coal & Consumable Fuels–0.30%
Alpha Natural Resources, Inc.(b)		2,206		100,241
CONSOL Energy Inc.		2,207		106,995
Peabody Energy Corp.		2,637		155,346
				362,582
Commercial Printing–0.03%
R. R. Donnelley & Sons Co.		1,862		36,514
Communications Equipment–1.96%
Cisco Systems, Inc.		53,602		836,727
F5 Networks, Inc.(b)		799		88,090
Harris Corp.		1,238		55,784
JDS Uniphase Corp.(b)		2,180		36,319
Juniper Networks, Inc.(b)		5,193		163,579
Motorola Mobility Holdings Inc.(b)		2,829		62,351
Motorola Solutions, Inc.(b)		3,307		152,254
QUALCOMM, Inc.		16,269		923,917
Tellabs, Inc.		3,562		16,421
				2,335,442
Computer & Electronics Retail–0.11%
Best Buy Co., Inc.		3,143		98,722
GameStop Corp.–Class A(b)		1,420		37,871
				136,593
Computer Hardware–3.38%
Apple, Inc.(b)		9,011		3,024,723
Dell, Inc.(b)		15,999		266,703
Hewlett-Packard Co.		20,213		735,753
				4,027,179
Computer Storage & Peripherals–0.80%
EMC Corp.(b)		20,051		552,405
Lexmark International, Inc.–Class A(b)		809		23,671
NetApp, Inc.(b)		3,584		189,164
SanDisk Corp.(b)		2,342		97,193
Western Digital Corp.(b)		2,292		83,383
				945,816
Construction & Engineering–0.17%
Fluor Corp.		1,697		109,728
Jacobs Engineering Group, Inc.(b)		1,250		54,062
Quanta Services, Inc.(b)		2,118		42,784
				206,574
Construction & Farm Machinery & Heavy Trucks–1.25%
Caterpillar Inc.		6,279		668,462
Cummins Inc.		1,911		197,769
Deere & Co.		4,089		337,138
Joy Global Inc.		1,036		98,669
PACCAR Inc.		3,560		181,881
				1,483,919
Construction Materials–0.04%
Vulcan Materials Co.		1,277		49,203
Consumer Electronics–0.03%
Harman International Industries, Inc.		702		31,990
Consumer Finance–0.83%
American Express Co.		10,191		526,875
Capital One Financial Corp.		4,458		230,345
Discover Financial Services		5,295		141,641
SLM Corp.		5,114		85,966
				984,827
Data Processing & Outsourced Services–1.18%
Automatic Data Processing, Inc.		4,861		256,078
Computer Sciences Corp.		1,534		58,231
Fidelity National Information Services, Inc.		2,608		80,300
Fiserv, Inc.(b)		1,398		87,557

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–(continued)
MasterCard, Inc.–Class A		916	$	276,027
Paychex, Inc.		3,114		95,662
Total System Services, Inc.		1,590		29,542
Visa, Inc.–Class A		4,655		392,230
Western Union Co.		6,160		123,385
				1,399,012
Department Stores–0.37%
JC Penney Co., Inc.		2,076		71,705
Kohl’s Corp.		2,738		136,928
Macy’s, Inc.		4,137		120,966
Nordstrom, Inc.		1,661		77,967
Sears Holdings Corp.(b)		418		29,862
				437,428
Distillers & Vintners–0.09%
Brown-Forman Corp.–Class B		1,020		76,184
Constellation Brands, Inc.–Class A(b)		1,720		35,810
				111,994
Distributors–0.07%
Genuine Parts Co.		1,532		83,341
Diversified Banks–1.67%
Comerica, Inc.		1,751		60,532
U.S. Bancorp		18,775		478,950
Wells Fargo & Co.		51,545		1,446,353
				1,985,835
Diversified Chemicals–0.99%
Dow Chemical Co. (The)		11,455		412,380
E. I. du Pont de Nemours and Co.		9,049		489,098
Eastman Chemical Co.		700		71,449
FMC Corp.		707		60,816
PPG Industries, Inc.		1,540		139,817
				1,173,560
Diversified Metals & Mining–0.42%
Freeport-McMoRan Copper & Gold Inc.		9,231		488,320
Titanium Metals Corp.		907		16,616
				504,936
Diversified REIT’s–0.13%
Vornado Realty Trust		1,597		148,808
Diversified Support Services–0.09%
Cintas Corp.		1,266		41,816
Iron Mountain Inc.		1,954		66,612
				108,428
Drug Retail–0.74%
CVS Caremark Corp.		13,213		496,545
Walgreen Co.		8,920		378,743
				875,288
Education Services–0.07%
Apollo Group, Inc.–Class A(b)		1,208		52,766
DeVry, Inc.		595		35,182
				87,948
Electric Utilities–1.79%
American Electric Power Co., Inc.		4,683		176,455
Duke Energy Corp.		12,973		244,282
Edison International		3,174		122,993
Entergy Corp.		1,733		118,329
Exelon Corp.		6,449		276,275
FirstEnergy Corp.		4,074		179,867
NextEra Energy, Inc.		4,111		236,218
Northeast Utilities		1,754		61,688
Pepco Holdings, Inc.		2,163		42,460
Pinnacle West Capital Corp.		1,061		47,299
PPL Corp.		5,623		156,488
Progress Energy, Inc.		2,869		137,741
Southern Co.		8,274		334,104
				2,134,199
Electrical Components & Equipment–0.51%
Emerson Electric Co.		7,324		411,975
Rockwell Automation, Inc.		1,405		121,898
Roper Industries, Inc.		943		78,552
				612,425
Electronic Components–0.31%
Amphenol Corp.–Class A		1,715		92,593
Corning Inc.		15,298		277,659
				370,252
Electronic Equipment & Instruments–0.04%
FLIR Systems, Inc.		1,577		53,161
Electronic Manufacturing Services–0.06%
Jabil Circuit, Inc.		1,911		38,602
Molex, Inc.		1,366		35,202
				73,804
Environmental & Facilities Services–0.28%
Republic Services, Inc.		2,931		90,421
Stericycle, Inc.(b)		845		75,306
Waste Management, Inc.		4,620		172,188
				337,915

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
Fertilizers & Agricultural Chemicals–0.40%
CF Industries Holdings, Inc.		705	$	99,877
Monsanto Co.		5,211		378,006
				477,883
Food Distributors–0.15%
Sysco Corp.		5,666		176,666
Food Retail–0.28%
Kroger Co. (The)		5,909		146,543
Safeway, Inc.		3,415		79,809
SUPERVALU Inc.		2,031		19,112
Whole Foods Market, Inc.		1,454		92,256
				337,720
Footwear–0.28%
NIKE, Inc.–Class B		3,695		332,476
Gas Utilities–0.09%
Nicor Inc.		450		24,633
ONEOK, Inc.		1,059		78,377
				103,010
General Merchandise Stores–0.34%
Big Lots, Inc.(b)		761		25,227
Family Dollar Stores, Inc.		1,190		62,546
Target Corp.		6,715		315,001
				402,774
Gold–0.22%
Newmont Mining Corp.		4,801		259,110
Health Care Distributors–0.42%
AmerisourceBergen Corp.		2,668		110,455
Cardinal Health, Inc.		3,415		155,109
McKesson Corp.		2,456		205,445
Patterson Cos. Inc.		966		31,772
				502,781
Health Care Equipment–1.86%
Baxter International Inc.		5,557		331,697
Becton, Dickinson and Co.		2,130		183,542
Boston Scientific Corp.(b)		14,892		102,904
C.R. Bard, Inc.		841		92,392
CareFusion Corp.(b)		2,134		57,981
Covidien PLC (Ireland)		4,822		256,675
Edwards Lifesciences Corp.(b)		1,116		97,293
Intuitive Surgical, Inc.(b)		381		141,774
Medtronic, Inc.		10,420		401,483
St. Jude Medical, Inc.		3,203		152,719
Stryker Corp.		3,250		190,742
Varian Medical Systems, Inc.(b)		1,141		79,893
Zimmer Holdings, Inc.(b)		1,869		118,121
				2,207,216
Health Care Facilities–0.03%
Tenet Healthcare Corp.(b)		4,770		29,765
Health Care Services–0.64%
DaVita, Inc.(b)		929		80,461
Express Scripts, Inc.(b)		5,156		278,321
Laboratory Corp. of America Holdings(b)		975		94,370
Medco Health Solutions, Inc.(b)		3,884		219,524
Quest Diagnostics Inc.		1,532		90,541
				763,217
Health Care Supplies–0.04%
DENTSPLY International Inc.		1,370		52,170
Health Care Technology–0.07%
Cerner Corp.(b)		1,418		86,654
Home Entertainment Software–0.06%
Electronic Arts Inc.(b)		3,201		75,544
Home Furnishings–0.03%
Leggett & Platt, Inc.		1,366		33,303
Home Improvement Retail–0.72%
Home Depot, Inc. (The)		15,516		561,990
Lowe’s Cos., Inc.		12,688		295,757
				857,747
Homebuilding–0.07%
D.R. Horton, Inc.		2,693		31,023
Lennar Corp.–Class A		1,591		28,877
Pulte Group Inc.(b)		3,326		25,477
				85,377
Homefurnishing Retail–0.12%
Bed Bath & Beyond Inc.(b)		2,426		141,606
Hotels, Resorts & Cruise Lines–0.35%
Carnival Corp.		4,207		158,309
Marriott International Inc.–Class A		2,765		98,130
Starwood Hotels & Resorts Worldwide, Inc.		1,900		106,476
Wyndham Worldwide Corp.		1,687		56,768
				419,683
Household Appliances–0.15%
Stanley Black & Decker Inc.		1,654		119,171
Whirlpool Corp.		752		61,152
				180,323

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
Household Products–2.09%
Clorox Co. (The)		1,298	$	87,537
Colgate-Palmolive Co.		4,754		415,547
Kimberly-Clark Corp.		3,827		254,725
Procter & Gamble Co. (The)		27,202		1,729,231
				2,487,040
Housewares & Specialties–0.12%
Fortune Brands, Inc.		1,518		96,803
Newell Rubbermaid, Inc.		2,792		44,058
				140,861
Human Resource & Employment Services–0.03%
Robert Half International, Inc.		1,443		39,004
Hypermarkets & Super Centers–1.12%
Costco Wholesale Corp.		4,256		345,757
Wal-Mart Stores, Inc.		18,612		989,042
				1,334,799
Independent Power Producers & Energy Traders–0.18%
AES Corp. (The)(b)		6,400		81,536
Constellation Energy Group Inc.		1,977		75,047
NRG Energy, Inc.(b)		2,347		57,689
				214,272
Industrial Conglomerates–2.43%
3M Co.		6,924		656,741
General Electric Co.(d)		103,356		1,949,294
Textron Inc.		2,660		62,803
Tyco International Ltd.		4,569		225,846
				2,894,684
Industrial Gases–0.48%
Air Products & Chemicals, Inc.		2,064		197,277
Airgas, Inc.		679		47,557
Praxair, Inc.		2,962		321,051
				565,885
Industrial Machinery–1.09%
Danaher Corp.		5,305		281,112
Dover Corp.		1,817		123,193
Eaton Corp.		3,324		171,020
Flowserve Corp.		551		60,549
Illinois Tool Works Inc.		4,865		274,824
Ingersoll-Rand PLC (Ireland)		3,227		146,538
Pall Corp.		1,130		63,540
Parker Hannifin Corp.		1,579		141,699
Snap-On, Inc.		576		35,988
				1,298,463
Industrial REIT’s–0.12%
Prologis, Inc.		4,133		148,127
Insurance Brokers–0.28%
Aon Corp.		3,220		165,186
Marsh & McLennan Cos., Inc.		5,337		166,461
				331,647
Integrated Oil & Gas–7.02%
Chevron Corp.		19,590		2,014,636
ConocoPhillips		13,774		1,035,667
Exxon Mobil Corp.		48,007		3,906,810
Hess Corp.		2,945		220,168
Marathon Oil Corp.(b)		6,938		224,791
Murphy Oil Corp.		1,884		123,703
Occidental Petroleum Corp.		7,921		824,101
				8,349,876
Integrated Telecommunication Services–2.71%
AT&T Inc.		57,713		1,812,765
CenturyLink Inc.		5,851		236,556
Frontier Communications Corp.		9,698		78,263
Verizon Communications Inc.		27,570		1,026,431
Windstream Corp.		4,969		64,398
				3,218,413
Internet Retail–0.95%
Amazon.com, Inc.(b)		3,479		711,421
Expedia, Inc.		1,979		57,371
Netflix Inc.(b)		423		111,118
Priceline.com Inc.(b)		482		246,750
				1,126,660
Internet Software & Services–1.61%
Akamai Technologies, Inc.(b)		1,788		56,268
eBay Inc.(b)		11,130		359,165
Google, Inc.–Class A(b)		2,448		1,239,618
Monster Worldwide, Inc.(b)		1,304		19,117
VeriSign, Inc.		1,672		55,945
Yahoo! Inc.(b)		12,697		190,963
				1,921,076
Investment Banking & Brokerage–1.02%
Charles Schwab Corp. (The)		9,760		160,552
E*TRADE Financial Corp.(b)		2,491		34,376
Goldman Sachs Group, Inc. (The)		5,044		671,306
Morgan Stanley		15,052		346,346
				1,212,580

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
IT Consulting & Other Services–2.01%
Cognizant Technology Solutions Corp.–Class A(b)		2,964	$	217,380
International Business Machines Corp.		11,803		2,024,805
SAIC, Inc.(b)		2,670		44,909
Teradata Corp.(b)		1,664		100,173
				2,387,267
Leisure Products–0.13%
Hasbro, Inc.		1,326		58,251
Mattel, Inc.		3,421		94,043
				152,294
Life & Health Insurance–1.07%
Aflac, Inc.		4,543		212,067
Lincoln National Corp.		3,052		86,951
MetLife, Inc.		10,300		451,861
Principal Financial Group, Inc.		3,103		94,393
Prudential Financial, Inc.		4,745		301,735
Torchmark Corp.		740		47,464
Unum Group		2,957		75,344
				1,269,815
Life Sciences Tools & Services–0.52%
Agilent Technologies, Inc.(b)		3,390		173,263
Life Technologies Corp.(b)		1,741		90,654
PerkinElmer, Inc.		1,105		29,736
Thermo Fisher Scientific, Inc.(b)		3,734		240,432
Waters Corp.(b)		903		86,453
				620,538
Managed Health Care–1.10%
Aetna Inc.		3,682		162,340
CIGNA Corp.		2,635		135,518
Coventry Health Care, Inc.(b)		1,471		53,647
Humana Inc.		1,640		132,086
UnitedHealth Group, Inc.		10,557		544,530
WellPoint Inc.		3,577		281,760
				1,309,881
Metal & Glass Containers–0.09%
Ball Corp.		1,635		62,882
Owens-Illinois, Inc.(b)		1,616		41,709
				104,591
Motorcycle Manufacturers–0.08%
Harley-Davidson, Inc.		2,330		95,460
Movies & Entertainment–1.50%
News Corp.–Class A		22,269		394,161
Time Warner Inc.		10,434		379,485
Viacom Inc.–Class B		5,701		290,751
Walt Disney Co. (The)		18,419		719,078
				1,783,475
Multi-Line Insurance–0.38%
American International Group, Inc.(b)		4,212		123,496
Assurant, Inc.		958		34,746
Genworth Financial Inc.–Class A(b)		4,746		48,789
Hartford Financial Services Group, Inc. (The)		4,338		114,393
Loews Corp.		3,010		126,691
				448,115
Multi-Sector Holdings–0.06%
Leucadia National Corp.		1,965		67,006
Multi-Utilities–1.27%
Ameren Corp.		2,349		67,745
CenterPoint Energy, Inc.		4,103		79,393
CMS Energy Corp.		2,495		49,127
Consolidated Edison, Inc.		2,850		151,734
Dominion Resources, Inc.		5,610		270,795
DTE Energy Co.		1,649		82,483
Integrys Energy Group, Inc.		771		39,969
NiSource Inc.		2,709		54,857
PG&E Corp.		3,851		161,858
Public Service Enterprise Group Inc.		4,907		160,164
SCANA Corp.		1,112		43,779
Sempra Energy		2,332		123,316
TECO Energy, Inc.		2,051		38,743
Wisconsin Energy Corp.		2,295		71,948
Xcel Energy, Inc.		4,672		113,530
				1,509,441
Office Electronics–0.12%
Xerox Corp.		13,654		142,138
Office REIT’s–0.13%
Boston Properties, Inc.		1,417		150,429
Office Services & Supplies–0.07%
Avery Dennison Corp.		1,057		40,832
Pitney Bowes Inc.		1,976		45,428
				86,260
Oil & Gas Drilling–0.28%
Diamond Offshore Drilling, Inc.		676		47,597
Helmerich & Payne, Inc.		1,052		69,558
Nabors Industries Ltd.(b)		2,752		67,810

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
Oil & Gas Drilling–(continued)
Noble Corp.		2,456	$	96,791
Rowan Cos., Inc.(b)		1,241		48,163
				329,919
Oil & Gas Equipment & Services–2.06%
Baker Hughes Inc.		4,234		307,219
Cameron International Corp.(b)		2,386		119,992
FMC Technologies, Inc.(b)		2,341		104,853
Halliburton Co.		8,916		454,716
National Oilwell Varco Inc.		4,122		322,382
Schlumberger Ltd.		13,223		1,142,467
				2,451,629
Oil & Gas Exploration & Production–2.09%
Anadarko Petroleum Corp.		4,839		371,442
Apache Corp.		3,735		460,862
Cabot Oil & Gas Corp.		1,031		68,366
Chesapeake Energy Corp.		6,408		190,253
Denbury Resources, Inc.(b)		3,830		76,600
Devon Energy Corp.		4,111		323,988
EOG Resources, Inc.		2,615		273,398
EQT Corp.		1,476		77,520
Newfield Exploration Co.(b)		1,287		87,542
Noble Energy, Inc.		1,718		153,984
Pioneer Natural Resources Co.		1,136		101,751
QEP Resources Inc.		1,744		72,952
Range Resources Corp.		1,564		86,802
Southwestern Energy Co.(b)		3,389		145,320
				2,490,780
Oil & Gas Refining & Marketing–0.31%
Marathon Petroleum Corp.(b)		3,469		143,617
Sunoco, Inc.		1,179		49,176
Tesoro Corp.(b)		1,386		31,753
Valero Energy Corp.		5,530		141,402
				365,948
Oil & Gas Storage & Transportation–0.42%
El Paso Corp.		7,493		151,359
Spectra Energy Corp.		6,318		173,176
Williams Cos., Inc. (The)		5,701		172,455
				496,990
Other Diversified Financial Services–3.24%
Bank of America Corp.		98,752		1,082,322
Citigroup Inc.		28,462		1,185,158
JPMorgan Chase & Co.		38,725		1,585,401
				3,852,881
Packaged Foods & Meats–1.60%
Campbell Soup Co.		1,777		61,395
ConAgra Foods, Inc.		4,029		103,988
Dean Foods Co.(b)		1,770		21,718
General Mills, Inc.		6,220		231,508
H.J. Heinz Co.		3,135		167,033
Hershey Co. (The)		1,493		84,877
Hormel Foods Corp.		1,370		40,840
J M Smucker Co. (The)		1,129		86,301
Kellogg Co.		2,439		134,925
Kraft Foods Inc.–Class A		17,130		603,490
McCormick & Co., Inc.		1,290		63,945
Mead Johnson Nutrition Co.		1,990		134,425
Sara Lee Corp.		5,690		108,053
Tyson Foods, Inc.–Class A		2,942		57,134
				1,899,632
Paper Packaging–0.06%
Bemis Co., Inc.		1,059		35,773
Sealed Air Corp.		1,603		38,135
				73,908
Paper Products–0.15%
International Paper Co.		4,229		126,109
MeadWestvaco Corp.		1,684		56,094
				182,203
Personal Products–0.20%
Avon Products, Inc.		4,171		116,788
Estee Lauder Cos. Inc. (The)–Class A		1,110		116,761
				233,549
Pharmaceuticals–5.65%
Abbott Laboratories		15,146		796,982
Allergan, Inc.		2,969		247,169
Bristol-Myers Squibb Co.		16,625		481,460
Eli Lilly and Co.		9,927		372,560
Forest Laboratories, Inc.(b)		2,787		109,641
Hospira, Inc.(b)		1,649		93,432
Johnson & Johnson		26,713		1,776,949
Merck & Co., Inc.		30,080		1,061,523
Mylan Inc.(b)		4,279		105,563
Pfizer Inc.		77,001		1,586,221
Watson Pharmaceuticals, Inc.(b)		1,245		85,569
				6,717,069
Property & Casualty Insurance–1.97%
ACE Ltd. (Switzerland)		3,287		216,350
Allstate Corp. (The)		5,092		155,459
Berkshire Hathaway Inc.–Class B(b)		16,871		1,305,647

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
Property & Casualty Insurance–(continued)
Chubb Corp. (The)		2,850	$	178,438
Cincinnati Financial Corp.		1,579		46,075
Progressive Corp. (The)		6,369		136,169
Travelers Cos., Inc. (The)		4,081		238,249
XL Group PLC (Ireland)		3,064		67,347
				2,343,734
Publishing–0.15%
Gannett Co., Inc.		2,342		33,538
McGraw-Hill Cos., Inc. (The)		2,968		124,389
Washington Post Co. (The)–Class B		52		21,785
				179,712
Railroads–0.87%
CSX Corp.		10,746		281,760
Norfolk Southern Corp.		3,441		257,834
Union Pacific Corp.		4,779		498,928
				1,038,522
Real Estate Services–0.06%
CB Richard Ellis Group, Inc.–Class A(b)		2,798		70,258
Regional Banks–0.98%
BB&T Corp.		6,773		181,787
Fifth Third Bancorp		8,952		114,138
First Horizon National Corp.		2,530		24,136
Huntington Bancshares Inc.		8,413		55,189
KeyCorp		9,265		77,178
M&T Bank Corp.		1,236		108,706
Marshall & Ilsley Corp.		5,139		40,958
PNC Financial Services Group, Inc.		5,125		305,501
Regions Financial Corp.		12,244		75,913
SunTrust Banks, Inc.		5,201		134,186
Zions Bancorp.		1,765		42,378
				1,160,070
Research & Consulting Services–0.07%
Dun & Bradstreet Corp. (The)		480		36,259
Equifax Inc.		1,214		42,150
				78,409
Residential REIT’s–0.26%
Apartment Investment & Management Co.–Class A		1,194		30,483
AvalonBay Communities, Inc.		849		109,011
Equity Residential		2,870		172,200
				311,694
Restaurants–1.30%
Chipotle Mexican Grill, Inc.(b)		307		94,615
Darden Restaurants, Inc.		1,328		66,081
McDonald’s Corp.		10,110		852,475
Starbucks Corp.		7,304		288,435
Yum! Brands, Inc.		4,516		249,464
				1,551,070
Retail REIT’s–0.34%
Kimco Realty Corp.		4,004		74,635
Simon Property Group, Inc.		2,857		332,069
				406,704
Semiconductor Equipment–0.26%
Applied Materials, Inc.		12,846		167,126
KLA-Tencor Corp.		1,654		66,954
MEMC Electronic Materials, Inc.(b)		2,213		18,877
Novellus Systems, Inc.(b)		892		32,237
Teradyne, Inc.(b)		1,851		27,395
				312,589
Semiconductors–2.13%
Advanced Micro Devices, Inc.(b)		5,596		39,116
Altera Corp.		3,139		145,493
Analog Devices, Inc.		2,919		114,250
Broadcom Corp.–Class A(b)		4,637		155,989
First Solar, Inc.(b)		528		69,839
Intel Corp.		51,670		1,145,007
Linear Technology Corp.		2,218		73,238
LSI Corp.(b)		5,896		41,979
Microchip Technology, Inc.		1,864		70,664
Micron Technology, Inc.(b)		8,392		62,772
National Semiconductor Corp.		2,351		57,858
NVIDIA Corp.(b)		5,849		93,204
Texas Instruments Inc.		11,315		371,471
Xilinx, Inc.		2,587		94,348
				2,535,228
Soft Drinks–2.33%
Coca-Cola Co. (The)		22,309		1,501,173
Coca-Cola Enterprises, Inc.		3,166		92,384
Dr. Pepper Snapple Group, Inc.		2,156		90,401
PepsiCo, Inc.		15,403		1,084,833
				2,768,791
Specialized Consumer Services–0.04%
H&R Block, Inc.		3,017		48,393
Specialized Finance–0.40%
CME Group Inc.		652		190,117
IntercontinentalExchange Inc.(b)		726		90,539
Moody’s Corp.		1,930		74,016

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
Specialized Finance–(continued)
NASDAQ OMX Group, Inc. (The)(b)		1,438	$	36,381
NYSE Euronext		2,584		88,554
				479,607
Specialized REIT’s–0.65%
HCP, Inc.		3,951		144,962
Health Care REIT, Inc.		1,743		91,385
Host Hotels & Resorts Inc.		6,686		113,328
Plum Creek Timber Co., Inc.		1,601		64,905
Public Storage		1,362		155,282
Ventas, Inc.		1,612		84,968
Weyerhaeuser Co.		5,204		113,759
				768,589
Specialty Chemicals–0.28%
Ecolab Inc.		2,259		127,362
International Flavors & Fragrances Inc.		794		51,007
Sherwin-Williams Co. (The)		860		72,128
Sigma-Aldrich Corp.		1,186		87,029
				337,526
Specialty Stores–0.17%
Staples, Inc.		6,949		109,794
Tiffany & Co.		1,243		97,601
				207,395
Steel–0.34%
AK Steel Holding Corp.		1,111		17,509
Allegheny Technologies, Inc.		1,047		66,453
Cliffs Natural Resources Inc.		1,408		130,170
Nucor Corp.		3,079		126,916
United States Steel Corp.		1,422		65,469
				406,517
Systems Software–2.98%
BMC Software, Inc.(b)		1,722		94,194
CA, Inc.		3,725		85,079
Microsoft Corp.		72,320		1,880,320
Oracle Corp.		37,974		1,249,724
Red Hat, Inc.(b)		1,909		87,623
Symantec Corp.(b)		7,353		145,001
				3,541,941
Thrifts & Mortgage Finance–0.07%
Hudson City Bancorp, Inc.		5,103		41,794
People’s United Financial Inc.		3,455		46,435
				88,229
Tires & Rubber–0.03%
Goodyear Tire & Rubber Co. (The)(b)		2,399		40,231
Tobacco–1.66%
Altria Group, Inc.		20,400		538,764
Lorillard, Inc.		1,399		152,309
Philip Morris International Inc.		17,330		1,157,124
Reynolds American Inc.		3,293		122,006
				1,970,203
Trading Companies & Distributors–0.16%
Fastenal Co.		2,872		103,363
W.W. Grainger, Inc.		566		86,966
				190,329
Trucking–0.02%
Ryder System, Inc.		506		28,766
Wireless Telecommunication Services–0.34%
American Tower Corp.–Class A(b)		3,864		202,203
MetroPCS Communications, Inc.(b)		2,618		45,056
Sprint Nextel Corp.(b)		29,155		157,145
				404,404
Total Common Stocks & Other Equity Interests (Cost $72,386,951)				117,111,781
Money Market Funds–1.84%
Liquid Assets Portfolio–Institutional Class(e)		1,093,527		1,093,527
Premier Portfolio–Institutional Class(e)		1,093,527		1,093,527
Total Money Market Funds (Cost $2,187,054)				2,187,054
TOTAL INVESTMENTS–100.27% (Cost $74,574,005)				119,298,835
OTHER ASSETS LESS LIABILITIES–(0.27)%				(317,264	)
NET ASSETS–100.00%			$	118,981,571

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)	Affiliated company. The Fund’s adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.
(d)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 5.
(e)	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. S&P 500 Index Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2011

Information Technology	17.5	%
Financials	14.8
Energy	12.4
Health Care	11.5
Industrials	11.0
Consumer Discretionary	10.6
Consumer Staples	10.5
Materials	3.7
Utilities	3.3
Telecommunication Services	3.1
Money Market Funds Plus Other Assets Less Liabilities	1.6

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

Invesco V.I. S&P 500 Index Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $72,272,884)	$	117,006,434
Investments in affiliated money market funds, at value and cost		2,187,054
Investments in affiliates, at value (Cost $114,067)		105,347
Total investments, at value (Cost $74,574,005)		119,298,835
Receivable for:
Investments sold		38,461
Variation margin		19,561
Fund shares sold		930
Dividends		150,587
Fund expenses absorbed		7,343
Investment for trustee deferred compensation and retirement plans		2,447
Other assets		8,957
Total assets		119,527,121
Liabilities:
Payable for:
Fund shares reacquired		133,089
Accrued fees to affiliates		373,868
Accrued other operating expenses		35,079
Trustee deferred compensation and retirement plans		3,514
Total liabilities		545,550
Net assets applicable to shares outstanding	$	118,981,571
Net assets consist of:
Shares of beneficial interest	$	93,388,959
Undistributed net investment income		2,949,209
Undistributed net realized gain (loss)		(22,156,925	)
Unrealized appreciation		44,800,328
	$	118,981,571
Net Assets:
Series I	$	36,348,589
Series II	$	82,632,982
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		3,005,429
Series II		6,882,332
Series I:
Net asset value per share	$	12.09
Series II:
Net asset value per share	$	12.01

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends	$	1,218,260
Dividends from affiliated money market funds		755
Dividends from affiliates		1,094
Total investment income		1,220,109
Expenses:
Advisory fees		74,239
Administrative services fees		179,460
Custodian fees		17,975
Distribution fees — Series II		107,999
Transfer agent fees		1,506
Trustees’ and officers’ fees and benefits		4,981
Other		38,182
Total expenses		424,342
Less: Fees waived and expenses reimbursed		(144,276	)
Net expenses		280,066
Net investment income		940,043
Realized and unrealized gain from:
Net realized gain from:
Investment securities		3,401,973
Futures contracts		14,207
		3,416,180
Change in net unrealized appreciation of:
Investment securities		2,745,927
Futures contracts		62,116
		2,808,043
Net realized and unrealized gain		6,224,223
Net increase in net assets resulting from operations	$	7,164,266

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, 2011 and the year ended December 31, 2010 (Unaudited)

	2011			2010
Operations:
Net investment income	$	940,043		$	1,995,988
Net realized gain		3,416,180			800,753
Change in net unrealized appreciation		2,808,043			14,020,170
Net increase in net assets resulting from operations		7,164,266			16,816,911
Distributions to shareholders from net investment income:
Series I		—			(728,755	)
Series II		—			(1,463,002	)
Total distributions from net investment income		—			(2,191,757	)
Share transactions–net:
Series I		(3,483,604	)		(5,557,429	)
Series II		(10,756,976	)		(13,397,694	)
Net increase (decrease) in net assets resulting from share transactions		(14,240,580	)		(18,955,123	)
Net increase (decrease) in net assets		(7,076,314	)		(4,329,969	)
Net assets:
Beginning of period		126,057,885			130,387,854
End of period (includes undistributed net investment income of $2,949,209 and $2,009,166, respectively)	$	118,981,571		$	126,057,885

Notes to Financial Statements

June 30, 2011

(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) (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-eight 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 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”).
	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. S&P 500 Index 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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. S&P 500 Index Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 Daily Net Assets	Rate
First $2 billion		0	.12%
Over $2 billion		0	.10%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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 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 and/or expense reimbursement (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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, 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.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $74,239 and reimbursed expenses of $70,037.

  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 V.I. S&P 500 Index Fund

accounts. Pursuant to such agreement, for the six months ended June 30, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $154,665 for services provided by insurance companies.

  Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the 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. For the six months ended June 30, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	119,298,835	$	—	$	—	$	119,298,835
Futures*		75,498		—		—		75,498
Total Investments	$	119,374,333	$	—	$	—	$	119,374,333

*  Unrealized appreciation.

NOTE 4—Investment in Affiliate

The Fund’s Adviser is a Subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The following is a summary of the transactions in and earnings from investments in Invesco Ltd. for the six months ended June 30, 2011.

Change in

Unrealized

Value

Purchases

Proceeds

Appreciation

Realized

Value

Dividend

December 31, 2010

at Cost

from Sales

(Depreciation)

Gain (Loss)

June 30, 2011

Income

Invesco Ltd.

$120,733

$2,350

$(15,378)

$(1,827)

$(531)

$105,347

$1,094

NOTE 5—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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	75,538	$	(40	)

^(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, 2011

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	$	14,207
Change in Unrealized Appreciation
Interest rate risk		62,116
Total	$	76,323

*  The average value of futures outstanding during the period was $1,616,699.

Open Futures Contracts
	Number of				Notional		Unrealized
Contract	Contracts		Month		Value		Appreciation
Long Contracts
S&P 500 E-Mini		36		September-2011	$	2,367,900	$	75,498

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, 2011, the Fund paid legal fees of $719 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 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.

Invesco V.I. S&P 500 Index Fund

  The Fund utilized $972,761 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2012	$	3,449,848
December 31, 2013		9,726,077
December 31, 2014		5,449,556
December 31, 2017		1,381,293
Total capital loss carryforward	$	20,006,774

*  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, 2011 was $2,211,579 and $15,401,486, 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	$	45,246,694
Aggregate unrealized (depreciation) of investment securities		(6,056,525	)
Net unrealized appreciation of investment securities	$	39,190,169
Cost of investments for tax purposes is $80,108,666.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		40,186		$	478,530			114,148		$	1,178,964
Series II		90,506			1,071,311			141,688			1,423,360
Issued as reinvestment of dividends:
Series I		0			0			73,537			728,755
Series II		0			0			148,378			1,463,002
Reacquired:
Series I		(332,275	)		(3,962,134	)		(723,269	)		(7,465,148	)
Series II		(997,787	)		(11,828,287	)		(1,577,214	)		(16,284,056	)
Net increase (decrease) in share activity		(1,199,370	)	$	(14,240,580	)		(1,822,732	)	$	(18,955,123	)

^(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 portion of the shares owned of record by these entities are also owned beneficially.

Invesco V.I. S&P 500 Index 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				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(e)
Series I
Six months ended 06/30/11	$	11.42	$	0.10	$	0.57		$	0.67		$	0		$	12.09		5.87	%	$	36,349		0.28	%(c)		0.51	%(c)		1.69	%(c)		2	%
Year ended 12/31/10		10.14		0.19		1.29			1.48			(0.20	)		11.42		14.87			37,651		0.28			0.42			1.79			6
Year ended 12/31/09		8.27		0.18		1.94			2.12			(0.25	)		10.14		26.34			38,873		0.28	(d)		0.28	(d)		2.09	(d)		5
Year ended 12/31/08		13.46		0.23		(5.14	)		(4.91	)		(0.28	)		8.27		(37.07	)		33,801		0.30	(d)		0.30	(d)		2.01	(d)		14
Year ended 12/31/07		13.02		0.23		0.45			0.68			(0.24	)		13.46		5.23			66,275		0.27			0.27			1.71			3
Year ended 12/31/06		11.46		0.20		1.56			1.76			(0.20	)		13.02		15.56			84,545		0.28			0.28			1.67			4
Series II
Six months ended 06/30/11		11.35		0.09		0.57			0.66			0			12.01		5.81			82,633		0.53	(c)		0.76	(c)		1.44	(c)		2
Year ended 12/31/10		10.08		0.16		1.28			1.44			(0.17	)		11.35		14.58			88,407		0.53			0.67			1.54			6
Year ended 12/31/09		8.21		0.16		1.93			2.09			(0.22	)		10.08		26.06			91,515		0.53	(d)		0.53	(d)		1.84	(d)		5
Year ended 12/31/08		13.36		0.20		(5.11	)		(4.91	)		(0.24	)		8.21		(37.27	)		80,115		0.55	(d)		0.55	(d)		1.76	(d)		14
Year ended 12/31/07		12.92		0.20		0.45			0.65			(0.21	)		13.36		5.00			152,984		0.52			0.52			1.46			3
Year ended 12/31/06		11.38		0.17		1.54			1.71			(0.17	)		12.92		15.21			176,883		0.53			0.53			1.42			4

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.
(c)	Ratios are annualized and based on average daily net assets (000’s omitted) of $37,643 and $87,115 for Series I and Series II shares, respectively.
(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 less than 0.005%.
(e)	Portfolio turnover is calculated at the fund level and is not annualized for the periods less than one year, if applicable.

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 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,058.70	$	1.43	$	1,023.41	$	1.40		0.28	%
Series II		1,000.00		1,058.10		2.70		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, 2011 through June 30, 2011, 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 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. S&P 500 Index 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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. S&P 500 Index Fund

to the performance of funds in the Lipper performance universe and against the Lipper VA Underlying Funds – S&P 500 Index Objective Funds Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of the 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 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was the same as the rate of the other mutual Fund managed by Invesco Advisers in a manner comparable to the 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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-VISDEWSP-SAR-1

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	7.88	%
Series II Shares	7.77
S&P 500 Index▼(Broad Market Index)	6.01
S&P 500 Equal Weight Indexn (Style-Specific Index)	8.09
Lipper VUF Multi-Cap Core Index▼(Peer Group Index)	6.09
▼Lipper Inc.; nInvesco, Bloomberg LP

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

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

     The S&P 500^® Equal Weight Index is the equally weighted version of the S&P 500 Index.

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

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (11/9/94)	10.20	%
10 Years	6.56
5 Years	5.18
1 Year	35.97
Series II Shares
Inception (7/24/00)	6.80	%
10 Years	6.29
5 Years	4.93
1 Year	35.67

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley V.I. Select Dimensions Equally-Weighted S&P 500 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 0.49% 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. 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 Fund operating expenses after 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 Equally-Weighted S&P 500 Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.41%(a)
Advertising–0.41%
Interpublic Group of Cos., Inc. (The)		15,592	$	194,900
Omnicom Group, Inc.		3,908		188,209
				383,109
Aerospace & Defense–2.57%
Boeing Co. (The)		2,388		176,545
General Dynamics Corp.		2,470		184,064
Goodrich Corp.		1,943		185,557
Honeywell International, Inc.		3,170		188,900
ITT Corp.		3,143		185,217
L-3 Communications Holdings, Inc.		2,163		189,154
Lockheed Martin Corp.		2,213		179,187
Northrop Grumman Corp.		2,737		189,811
Precision Castparts Corp.		1,157		190,500
Raytheon Co.		3,631		181,005
Rockwell Collins, Inc.		2,939		181,307
Textron Inc.		8,146		192,327
United Technologies Corp.		2,094		185,340
				2,408,914
Agricultural Products–0.19%
Archer-Daniels-Midland Co.(b)		5,870		176,980
Air Freight & Logistics–0.80%
C.H. Robinson Worldwide, Inc.		2,302		181,489
Expeditors International of Washington, Inc.		3,725		190,683
FedEx Corp.		2,035		193,020
United Parcel Service, Inc.–Class B		2,560		186,701
				751,893
Airlines–0.20%
Southwest Airlines Co.		16,190		184,890
Aluminum–0.20%
Alcoa Inc.		12,024		190,701
Apparel Retail–1.17%
Abercrombie & Fitch Co.–Class A		2,704		180,952
Gap, Inc. (The)		9,933		179,787
Limited Brands, Inc.		4,992		191,942
Ross Stores, Inc.		2,355		188,683
TJX Cos., Inc. (The)		3,538		185,851
Urban Outfitters, Inc.(c)		6,147		173,038
				1,100,253
Apparel, Accessories & Luxury Goods–0.61%
Coach, Inc.		2,985		190,831
Polo Ralph Lauren Corp.		1,427		189,234
VF Corp.		1,723		187,049
				567,114
Application Software–1.20%
Adobe Systems Inc.(c)		5,814		182,850
Autodesk, Inc.(c)		4,961		191,494
Citrix Systems, Inc.(c)		2,388		191,040
Compuware Corp.(c)		18,783		183,322
Intuit Inc.(c)		3,602		186,800
Salesforce.com, Inc.(c)		1,268		188,907
				1,124,413
Asset Management & Custody Banks–2.11%
Ameriprise Financial, Inc.		3,125		180,250
Bank of New York Mellon Corp. (The)		6,760		173,191
BlackRock, Inc.		944		181,069
Federated Investors, Inc.–Class B		7,256		172,983
Franklin Resources, Inc.		1,423		186,826
Invesco Ltd.(d)		7,687		179,876
Janus Capital Group Inc.		19,210		181,342
Legg Mason, Inc.		5,557		182,047
Northern Trust Corp.		3,787		174,050
State Street Corp.		4,073		183,652
T. Rowe Price Group Inc.		3,091		186,511
				1,981,797
Auto Parts & Equipment–0.21%
Johnson Controls, Inc.		4,767		198,593
Automobile Manufacturers–0.20%
Ford Motor Co.(c)		13,859		191,116
Automotive Retail–0.81%
AutoNation, Inc.(c)		5,349		195,827
AutoZone, Inc.(c)		606		178,679
CarMax, Inc.(c)		6,055		200,239
O’Reilly Automotive, Inc.(c)		2,855		187,031
				761,776
Biotechnology–0.99%
Amgen Inc.(c)		3,053		178,143
Biogen Idec Inc.(c)		1,869		199,833
Celgene Corp.(c)		3,059		184,519

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Biotechnology–(continued)
Cephalon Inc.(c)		2,221	$	177,458
Gilead Sciences, Inc.(c)		4,479		185,475
				925,428
Brewers–0.19%
Molson Coors Brewing Co.–Class B		3,967		177,484
Broadcasting–0.59%
CBS Corp.–Class B		6,844		194,986
Discovery Communications, Inc.–Class A(c)		4,367		178,872
Scripps Networks Interactive Inc.–Class A		3,757		183,642
				557,500
Building Products–0.19%
Masco Corp.		14,601		175,650
Cable & Satellite–0.80%
Cablevision Systems Corp.–Class A(c)		6,812		178,815
Comcast Corp.–Class A		7,495		189,923
DIRECTV–Class A(c)		3,796		192,913
Time Warner Cable, Inc.		2,372		185,111
				746,762
Casinos & Gaming–0.41%
International Game Technology		10,839		190,550
Wynn Resorts Ltd.		1,367		196,219
				386,769
Coal & Consumable Fuels–0.61%
Alpha Natural Resources, Inc.(c)		4,192		190,484
Consol Energy Inc.		3,862		187,230
Peabody Energy Corp.		3,287		193,637
				571,351
Commercial Printing–0.19%
R. R. Donnelley & Sons Co.		9,282		182,020
Communications Equipment–1.78%
Cisco Systems, Inc.		11,832		184,698
F5 Networks, Inc.(c)		1,822		200,875
Harris Corp.		3,973		179,023
JDS Uniphase Corp.(c)		11,419		190,241
Juniper Networks, Inc.(c)		6,038		190,197
Motorola Mobility Holdings Inc.(c)		7,136		157,277
Motorola Solutions, Inc.(c)		3,894		179,280
Qualcomm, Inc.		3,358		190,701
Tellabs, Inc.		43,520		200,627
				1,672,919
Computer & Electronics Retail–0.38%
Best Buy Co., Inc.		5,711		179,383
GameStop Corp.–Class A(c)		6,699		178,662
				358,045
Computer Hardware–0.59%
Apple, Inc.(c)		552		185,290
Dell, Inc.(c)		11,063		184,420
Hewlett-Packard Co.		5,060		184,184
				553,894
Computer Storage & Peripherals–1.00%
EMC Corp.(c)		6,857		188,910
Lexmark International, Inc.–Class A(c)		6,382		186,737
NetApp, Inc.(c)		3,588		189,375
SanDisk Corp.(c)		4,311		178,907
Western Digital Corp.(c)		5,292		192,523
				936,452
Construction & Engineering–0.60%
Fluor Corp.		2,927		189,260
Jacobs Engineering Group, Inc.(c)		4,309		186,364
Quanta Services, Inc.(c)		9,416		190,203
				565,827
Construction & Farm Machinery & Heavy Trucks–1.03%
Caterpillar Inc.		1,845		196,419
Cummins Inc.		1,891		195,699
Deere & Co.		2,255		185,925
Joy Global Inc.		2,124		202,290
PACCAR Inc.		3,713		189,697
				970,030
Construction Materials–0.19%
Vulcan Materials Co.		4,547		175,196
Consumer Electronics–0.20%
Harman International Industries, Inc.		4,094		186,564
Consumer Finance–0.82%
American Express Co.		3,651		188,757
Capital One Financial Corp.		3,626		187,355
Discover Financial Services		7,670		205,172
SLM Corp.		11,097		186,541
				767,825
Data Processing & Outsourced Services–1.77%
Automatic Data Processing, Inc.		3,428		180,587
Computer Sciences Corp.		4,591		174,274
Fidelity National Information Services, Inc.		5,711		175,842
Fiserv, Inc.(c)		2,894		181,251

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Data Processing & Outsourced Services–(continued)
MasterCard, Inc.–Class A		665	$	200,391
Paychex, Inc.		5,979		183,675
Total System Services, Inc.		9,979		185,410
Visa, Inc.–Class A		2,379		200,455
Western Union Co.		8,977		179,809
				1,661,694
Department Stores–0.97%
JC Penney Co., Inc.		5,165		178,399
Kohl’s Corp.		3,533		176,685
Macy’s, Inc.		6,494		189,885
Nordstrom, Inc.		4,027		189,027
Sears Holdings Corp.(c)		2,392		170,885
				904,881
Distillers & Vintners–0.38%
Brown-Forman Corp.–Class B		2,427		181,273
Constellation Brands, Inc.–Class A(c)		8,382		174,513
				355,786
Distributors–0.20%
Genuine Parts Co.		3,456		188,006
Diversified Banks–0.58%
Comerica, Inc.		5,147		177,932
U.S. Bancorp		7,229		184,411
Wells Fargo & Co.		6,480		181,829
				544,172
Diversified Chemicals–1.01%
Dow Chemical Co. (The)		5,119		184,284
E. I. du Pont de Nemours and Co.		3,573		193,121
Eastman Chemical Co.		1,864		190,258
FMC Corp.		2,235		192,255
PPG Industries, Inc.		2,089		189,660
				949,578
Diversified Metals & Mining–0.42%
Freeport-McMoRan Copper & Gold Inc.		3,695		195,466
Titanium Metals Corp.		10,747		196,885
				392,351
Diversified REIT’s–0.19%
Vornado Realty Trust		1,936		180,396
Diversified Support Services–0.39%
Cintas Corp.		5,529		182,623
Iron Mountain Inc.		5,441		185,484
				368,107
Drug Retail–0.37%
CVS Caremark Corp.		4,738		178,054
Walgreen Co.		3,964		168,311
				346,365
Education Services–0.40%
Apollo Group, Inc.–Class A(c)		4,233		184,898
DeVry, Inc.		3,170		187,442
				372,340
Electric Utilities–2.47%
American Electric Power Co., Inc.		4,699		177,058
Duke Energy Corp.		9,451		177,962
Edison International		4,503		174,491
Entergy Corp.		2,553		174,319
Exelon Corp.		4,226		181,042
FirstEnergy Corp.		4,028		177,836
NextEra Energy, Inc.		3,126		179,620
Northeast Utilities		5,100		179,367
Pepco Holdings, Inc.		9,191		180,420
Pinnacle West Capital Corp.		4,018		179,123
PPL Corp.		6,540		182,008
Progress Energy, Inc.		3,706		177,925
Southern Co.		4,437		179,166
				2,320,337
Electrical Components & Equipment–0.61%
Emerson Electric Co.		3,402		191,362
Rockwell Automation, Inc.		2,238		194,169
Roper Industries, Inc.		2,213		184,343
				569,874
Electronic Components–0.40%
Amphenol Corp.–Class A		3,531		190,639
Corning Inc.		9,950		180,592
				371,231
Electronic Equipment & Instruments–0.19%
FLIR Systems, Inc.		5,343		180,113
Electronic Manufacturing Services–0.40%
Jabil Circuit, Inc.		9,683		195,597
Molex, Inc.		7,099		182,941
				378,538
Environmental & Facilities Services–0.58%
Republic Services, Inc.		5,814		179,362
Stericycle, Inc.(c)		2,049		182,607
Waste Management, Inc.		4,816		179,492
				541,461

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Fertilizers & Agricultural Chemicals–0.40%
CF Industries Holdings, Inc.		1,301	$	184,313
Monsanto Co.		2,689		195,060
				379,373
Food Distributors–0.19%
Sysco Corp.		5,731		178,693
Food Retail–0.81%
Kroger Co. (The)		7,379		182,999
Safeway, Inc.		7,788		182,006
SUPERVALU Inc.		20,477		192,689
Whole Foods Market, Inc.		3,179		201,707
				759,401
Footwear–0.21%
NIKE, Inc.–Class B		2,183		196,426
Gas Utilities–0.39%
Nicor Inc.		3,284		179,766
Oneok, Inc.		2,552		188,874
				368,640
General Merchandise Stores–0.57%
Big Lots, Inc.(c)		5,466		181,198
Family Dollar Stores, Inc.		3,367		176,970
Target Corp.		3,806		178,539
				536,707
Gold–0.20%
Newmont Mining Corp.		3,433		185,279
Health Care Distributors–0.77%
AmerisourceBergen Corp.		4,304		178,186
Cardinal Health, Inc.		4,015		182,361
McKesson Corp.		2,149		179,764
Patterson Cos. Inc.		5,543		182,309
				722,620
Health Care Equipment–2.51%
Baxter International Inc.		3,034		181,099
Becton, Dickinson and Co.		2,080		179,234
Boston Scientific Corp.(c)		26,086		180,254
C.R. Bard, Inc.		1,629		178,962
CareFusion Corp.(c)		6,643		180,490
Covidien PLC (Ireland)		3,373		179,545
Edwards Lifesciences Corp.(c)		2,108		183,775
Intuitive Surgical, Inc.(c)		513		190,892
Medtronic, Inc.		4,618		177,932
St. Jude Medical, Inc.		3,658		174,413
Stryker Corp.		3,068		180,061
Varian Medical Systems, Inc.(c)		2,675		187,304
Zimmer Holdings, Inc.(c)		2,853		180,310
				2,354,271
Health Care Facilities–0.18%
Tenet Healthcare Corp.(c)		27,632		172,424
Health Care Services–0.94%
DaVita, Inc.(c)		2,106		182,401
Express Scripts, Inc.(c)		3,180		171,656
Laboratory Corp. of America Holdings(c)		1,835		177,610
Medco Health Solutions, Inc.(c)		3,209		181,373
Quest Diagnostics Inc.		2,924		172,808
				885,848
Health Care Supplies–0.20%
DENTSPLY International Inc.		4,877		185,716
Health Care Technology–0.20%
Cerner Corp.(c)		3,022		184,674
Home Entertainment Software–0.20%
Electronic Arts Inc.(c)		7,963		187,927
Home Furnishings–0.20%
Leggett & Platt, Inc.		7,549		184,045
Home Improvement Retail–0.39%
Home Depot, Inc. (The)		5,131		185,845
Lowe’s Cos., Inc.		7,761		180,909
				366,754
Homebuilding–0.59%
D.R. Horton, Inc.		15,971		183,986
Lennar Corp.–Class A		10,144		184,114
Pulte Group Inc.(c)		24,634		188,696
				556,796
Homefurnishing Retail–0.21%
Bed Bath & Beyond Inc.(c)		3,406		198,808
Hotels, Resorts & Cruise Lines–0.81%
Carnival Corp.		5,021		188,940
Marriott International Inc.–Class A		5,343		189,623
Starwood Hotels & Resorts Worldwide, Inc.		3,414		191,321
Wyndham Worldwide Corp.		5,610		188,776
				758,660
Household Appliances–0.40%
Stanley Black & Decker Inc.		2,593		186,826
Whirlpool Corp.		2,328		189,313
				376,139

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Household Products–0.75%
Clorox Co. (The)		2,622	$	176,828
Colgate-Palmolive Co.		2,015		176,131
Kimberly-Clark Corp.		2,674		177,981
Procter & Gamble Co. (The)		2,737		173,991
				704,931
Housewares & Specialties–0.39%
Fortune Brands, Inc.		2,790		177,918
Newell Rubbermaid, Inc.		12,033		189,881
				367,799
Human Resource & Employment Services–0.20%
Robert Half International, Inc.		6,844		184,993
Hypermarkets & Super Centers–0.38%
Costco Wholesale Corp.		2,224		180,678
Wal-Mart Stores, Inc.		3,353		178,178
				358,856
Independent Power Producers & Energy Traders–0.59%
AES Corp. (The)(c)		14,435		183,902
Constellation Energy Group Inc.		4,823		183,081
NRG Energy, Inc.(c)		7,598		186,759
				553,742
Industrial Conglomerates–0.59%
3M Co.		1,929		182,965
General Electric Co.		9,579		180,660
Tyco International Ltd.		3,809		188,279
				551,904
Industrial Gases–0.60%
Air Products & Chemicals, Inc.		1,967		188,006
Airgas, Inc.		2,670		187,007
Praxair, Inc.		1,752		189,899
				564,912
Industrial Machinery–1.79%
Danaher Corp.		3,416		181,014
Dover Corp.		2,842		192,688
Eaton Corp.		3,768		193,864
Flowserve Corp.		1,675		184,066
Illinois Tool Works Inc.		3,223		182,067
Ingersoll-Rand PLC (Ireland)		4,037		183,320
Pall Corp.		3,304		185,784
Parker Hannifin Corp.		2,075		186,210
Snap-On, Inc.		3,081		192,501
				1,681,514
Industrial REIT’s–0.20%
Prologis, Inc.		5,255		188,339
Insurance Brokers–0.39%
Aon Corp.		3,586		183,962
Marsh & McLennan Cos., Inc.		5,945		185,424
				369,386
Integrated Oil & Gas–1.38%
Chevron Corp.		1,786		183,672
ConocoPhillips		2,462		185,118
Exxon Mobil Corp.		2,241		182,373
Hess Corp.		2,556		191,087
Marathon Oil Corp.(c)		5,720		185,328
Murphy Oil Corp.		2,805		184,176
Occidental Petroleum Corp.		1,733		180,301
				1,292,055
Integrated Telecommunication Services–0.96%
AT&T Inc.		5,756		180,796
CenturyLink Inc.		4,478		181,046
Frontier Communications Corp.		22,506		181,623
Verizon Communications Inc.		4,986		185,629
Windstream Corp.		13,541		175,491
				904,585
Internet Retail–0.82%
Amazon.com, Inc.(c)		949		194,061
Expedia, Inc.		6,552		189,943
Netflix Inc.(c)		720		189,137
Priceline.com Inc.(c)		382		195,557
				768,698
Internet Software & Services–1.20%
Akamai Technologies, Inc.(c)		6,005		188,977
eBay Inc.(c)		6,141		198,170
Google, Inc.–Class A(c)		364		184,322
Monster Worldwide, Inc.(c)		13,139		192,618
VeriSign, Inc.		5,414		181,153
Yahoo! Inc.(c)		12,057		181,337
				1,126,577
Investment Banking & Brokerage–0.76%
Charles Schwab Corp. (The)		11,132		183,121
E*TRADE Financial Corp.(c)		12,909		178,144
Goldman Sachs Group, Inc. (The)		1,289		171,553
Morgan Stanley		7,758		178,512
				711,330

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
IT Consulting & Other Services–0.80%
Cognizant Technology Solutions Corp.–Class A(c)		2,617	$	191,931
International Business Machines Corp.		1,076		184,588
SAIC, Inc.(c)		10,728		180,445
Teradata Corp.(c)		3,155		189,931
				746,895
Leisure Products–0.39%
Hasbro, Inc.		4,059		178,312
Mattel, Inc.		6,778		186,327
				364,639
Life & Health Insurance–1.39%
Aflac, Inc.		3,934		183,639
Lincoln National Corp.		6,571		187,208
MetLife, Inc.		4,374		191,887
Principal Financial Group, Inc.		6,086		185,136
Prudential Financial, Inc.		2,991		190,198
Torchmark Corp.		2,814		180,490
Unum Group		7,073		180,220
				1,298,778
Life Sciences Tools & Services–0.98%
Agilent Technologies, Inc.(c)		3,734		190,845
Life Technologies Corp.(c)		3,422		178,183
PerkinElmer, Inc.		6,836		183,957
Thermo Fisher Scientific, Inc.(c)		2,846		183,254
Waters Corp.(c)		1,923		184,108
				920,347
Managed Health Care–1.18%
Aetna Inc.		4,079		179,843
CIGNA Corp.		3,622		186,279
Coventry Health Care, Inc.(c)		5,182		188,988
Humana Inc.		2,284		183,953
UnitedHealth Group, Inc.		3,545		182,851
WellPoint, Inc.		2,322		182,904
				1,104,818
Metal & Glass Containers–0.38%
Ball Corp.		4,676		179,839
Owens-Illinois, Inc.(c)		6,924		178,708
				358,547
Motorcycle Manufacturers–0.21%
Harley-Davidson, Inc.		4,816		197,312
Movies & Entertainment–0.80%
News Corp.–Class A		11,035		195,320
Time Warner Inc.		5,041		183,341
Viacom Inc.–Class B		3,732		190,332
Walt Disney Co. (The)		4,648		181,458
				750,451
Multi-Line Insurance–0.98%
American International Group, Inc.(c)		6,329		185,566
Assurant, Inc.		5,056		183,381
Genworth Financial Inc.–Class A(c)		17,365		178,512
Hartford Financial Services Group, Inc. (The)		7,247		191,104
Loews Corp.		4,352		183,176
				921,739
Multi-Sector Holdings–0.20%
Leucadia National Corp.		5,388		183,731
Multi-Utilities–2.87%
Ameren Corp.		6,238		179,904
CenterPoint Energy, Inc.		9,451		182,877
CMS Energy Corp.		9,000		177,210
Consolidated Edison, Inc.		3,355		178,620
Dominion Resources, Inc.		3,716		179,371
DTE Energy Co.		3,597		179,922
Integrys Energy Group, Inc.		3,518		182,373
NiSource Inc.		9,083		183,931
PG&E Corp.		4,181		175,727
Public Service Enterprise Group Inc.		5,612		183,176
SCANA Corp.		4,569		179,882
Sempra Energy		3,328		175,985
TECO Energy, Inc.		9,517		179,776
Wisconsin Energy Corp.		5,675		177,911
Xcel Energy, Inc.		7,211		175,227
				2,691,892
Office Electronics–0.20%
Xerox Corp.		17,981		187,182
Office REIT’s–0.19%
Boston Properties, Inc.		1,704		180,897
Office Services & Supplies–0.39%
Avery Dennison Corp.		4,828		186,506
Pitney Bowes Inc.		7,882		181,207
				367,713
Oil & Gas Drilling–1.00%
Diamond Offshore Drilling, Inc.		2,629		185,108
Helmerich & Payne, Inc.		3,034		200,608
Nabors Industries Ltd.(c)		7,370		181,597

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Oil & Gas Drilling–(continued)
Noble Corp.		4,704	$	185,385
Rowan Cos., Inc.(c)		4,878		189,315
				942,013
Oil & Gas Equipment & Services–1.24%
Baker Hughes Inc.		2,553		185,246
Cameron International Corp.(c)		3,841		193,164
FMC Technologies, Inc.(c)		4,412		197,613
Halliburton Co.		3,848		196,248
National Oilwell Varco Inc.		2,564		200,530
Schlumberger Ltd.		2,165		187,056
				1,159,857
Oil & Gas Exploration & Production–2.80%
Anadarko Petroleum Corp.		2,513		192,898
Apache Corp.		1,510		186,319
Cabot Oil & Gas Corp.		2,934		194,553
Chesapeake Energy Corp.		6,320		187,641
Denbury Resources, Inc.(c)		9,436		188,720
Devon Energy Corp.		2,301		181,342
EOG Resources, Inc.		1,732		181,081
EQT Corp.		3,520		184,870
Newfield Exploration Co.(c)		2,780		189,096
Noble Energy, Inc.		2,123		190,284
Pioneer Natural Resources Co.		2,098		187,918
QEP Resources Inc.		4,588		191,916
Range Resources Corp.		3,405		188,977
Southwestern Energy Co.(c)		4,302		184,470
				2,630,085
Oil & Gas Refining & Marketing–0.81%
Marathon Petroleum Corp.(c)		4,530		187,521
Sunoco, Inc.		4,541		189,405
Tesoro Corp.(c)		8,487		194,437
Valero Energy Corp.		7,349		187,914
				759,277
Oil & Gas Storage & Transportation–0.59%
El Paso Corp.		8,968		181,154
Spectra Energy Corp.		6,651		182,304
Williams Cos., Inc. (The)		6,256		189,244
				552,702
Other Diversified Financial Services–0.59%
Bank of America Corp.		16,584		181,761
Citigroup Inc.		4,616		192,210
JPMorgan Chase & Co.		4,326		177,106
				551,077
Packaged Foods & Meats–2.68%
Campbell Soup Co.		5,173		178,727
ConAgra Foods, Inc.		7,185		185,445
Dean Foods Co.(c)		14,013		171,940
General Mills, Inc.		4,659		173,408
H.J. Heinz Co.		3,293		175,451
Hershey Co. (The)		3,181		180,840
Hormel Foods Corp.		6,115		182,288
J M Smucker Co. (The)		2,298		175,659
Kellogg Co.		3,224		178,352
Kraft Foods Inc.–Class A		5,137		180,976
McCormick & Co., Inc.		3,560		176,469
Mead Johnson Nutrition Co.		2,726		184,141
Sara Lee Corp.		9,307		176,740
Tyson Foods, Inc.–Class A		9,742		189,190
				2,509,626
Paper Packaging–0.40%
Bemis Co., Inc.		5,579		188,459
Sealed Air Corp.		7,707		183,349
				371,808
Paper Products–0.41%
International Paper Co.		6,666		198,780
MeadWestvaco Corp.		5,704		190,000
				388,780
Personal Products–0.40%
Avon Products, Inc.		6,473		181,244
Estee Lauder Cos. Inc. (The)–Class A		1,819		191,341
				372,585
Pharmaceuticals–2.15%
Abbott Laboratories		3,427		180,329
Allergan, Inc.		2,190		182,317
Bristol-Myers Squibb Co.		6,435		186,358
Eli Lilly and Co.		4,738		177,817
Forest Laboratories, Inc.(c)		4,570		179,784
Hospira, Inc.(c)		3,271		185,335
Johnson & Johnson		2,671		177,675
Merck & Co., Inc.		5,004		176,591
Mylan Inc.(c)		7,954		196,225
Pfizer Inc.		8,742		180,085
Watson Pharmaceuticals, Inc.(c)		2,787		191,551
				2,014,067
Property & Casualty Insurance–1.54%
ACE Ltd. (Switzerland)		2,753		181,202
Allstate Corp. (The)		5,973		182,356
Berkshire Hathaway Inc.–Class B(c)		2,345		181,479

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Property & Casualty Insurance–(continued)
Chubb Corp. (The)		2,826	$	176,936
Cincinnati Financial Corp.		6,132		178,932
Progressive Corp. (The)		8,699		185,984
Travelers Cos., Inc. (The)		3,057		178,468
XL Group PLC (Ireland)		8,308		182,610
				1,447,967
Publishing–0.59%
Gannett Co., Inc.		12,919		185,000
McGraw-Hill Cos., Inc. (The)		4,460		186,919
Washington Post Co. (The)–Class B		422		176,797
				548,716
Railroads–0.60%
CSX Corp.		7,139		187,185
Norfolk Southern Corp.		2,495		186,950
Union Pacific Corp.		1,771		184,892
				559,027
Real Estate Services–0.20%
CB Richard Ellis Group, Inc.–Class A(c)		7,386		185,462
Regional Banks–2.09%
BB&T Corp.		6,763		181,519
Fifth Third Bancorp		14,113		179,941
First Horizon National Corp.		17,331		165,338
Huntington Bancshares Inc.		27,675		181,548
KeyCorp		21,340		177,762
M&T Bank Corp.		2,012		176,955
Marshall & Ilsley Corp.		23,033		183,573
PNC Financial Services Group, Inc.		3,064		182,645
Regions Financial Corp.		28,250		175,150
SunTrust Banks, Inc.		6,765		174,537
Zions Bancorp.		7,650		183,677
				1,962,645
Research & Consulting Services–0.38%
Dun & Bradstreet Corp. (The)		2,361		178,350
Equifax Inc.		5,158		179,086
				357,436
Residential REIT’s–0.57%
Apartment Investment & Management Co.–Class A		6,978		178,148
AvalonBay Communities, Inc.		1,371		176,037
Equity Residential		2,997		179,820
				534,005
Restaurants–1.01%
Chipotle Mexican Grill, Inc.(c)		658		202,789
Darden Restaurants, Inc.		3,758		186,998
McDonald’s Corp.		2,146		180,951
Starbucks Corp.		4,997		197,331
Yum! Brands, Inc.		3,229		178,370
				946,439
Retail REIT’s–0.39%
Kimco Realty Corp.		9,990		186,214
Simon Property Group, Inc.		1,552		180,389
				366,603
Semiconductor Equipment–1.00%
Applied Materials, Inc.		14,272		185,679
KLA–Tencor Corp.		4,641		187,868
MEMC Electronic Materials, Inc.(c)		20,936		178,584
Novellus Systems, Inc.(c)		5,411		195,553
Teradyne, Inc.(c)		12,853		190,224
				937,908
Semiconductors–2.76%
Advanced Micro Devices, Inc.(c)		25,304		176,875
Altera Corp.		4,120		190,962
Analog Devices, Inc.		4,838		189,359
Broadcom Corp.–Class A(c)		5,602		188,451
First Solar, Inc.(c)		1,456		192,585
Intel Corp.		8,355		185,147
Linear Technology Corp.		5,656		186,761
LSI Corp.(c)		26,279		187,107
Microchip Technology, Inc.		4,962		188,110
Micron Technology, Inc.(c)		22,621		169,205
National Semiconductor Corp.		7,203		177,266
NVIDIA Corp.(c)		11,195		178,392
Texas Instruments Inc.		5,669		186,113
Xilinx, Inc.		5,376		196,063
				2,592,396
Soft Drinks–0.77%
Coca-Cola Co. (The)		2,698		181,549
Coca-Cola Enterprises, Inc.		6,190		180,624
Dr. Pepper Snapple Group, Inc.		4,354		182,563
PepsiCo, Inc.		2,577		181,498
				726,234
Specialized Consumer Services–0.20%
H&R Block, Inc.		11,501		184,476
Specialized Finance–0.99%
CME Group Inc.		637		185,743
IntercontinentalExchange Inc.(c)		1,498		186,816
Moody’s Corp.		4,869		186,726

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	Shares		Value
Specialized Finance–(continued)
NASDAQ OMX Group, Inc. (The)(c)		7,445	$	188,358
NYSE Euronext		5,312		182,042
				929,685
Specialized REIT’s–1.36%
HCP, Inc.		4,774		175,158
Health Care REIT, Inc.		3,392		177,843
Host Hotels & Resorts Inc.		11,008		186,586
Plum Creek Timber Co., Inc.		4,510		182,835
Public Storage		1,583		180,478
Ventas, Inc.		3,361		177,158
Weyerhaeuser Co.		8,712		190,444
				1,270,502
Specialty Chemicals–0.79%
Ecolab Inc.		3,282		185,039
International Flavors & Fragrances Inc.		2,866		184,112
Sherwin-Williams Co. (The)		2,146		179,985
Sigma-Aldrich Corp.		2,660		195,191
				744,327
Specialty Stores–0.40%
Staples, Inc.		11,530		182,174
Tiffany & Co.		2,399		188,369
				370,543
Steel–1.04%
AK Steel Holding Corp.		12,508		197,126
Allegheny Technologies, Inc.		3,020		191,679
Cliffs Natural Resources Inc.		2,172		200,802
Nucor Corp.		4,478		184,583
United States Steel Corp.		4,297		197,834
				972,024
Systems Software–1.21%
BMC Software, Inc.(c)		3,428		187,512
CA, Inc.		8,203		187,356
Microsoft Corp.(b)		7,297		189,722
Oracle Corp.		5,670		186,600
Red Hat, Inc.(c)		4,283		196,590
Symantec Corp.(c)		9,548		188,286
				1,136,066
Thrifts & Mortgage Finance–0.38%
Hudson City Bancorp, Inc.		21,680		177,559
People’s United Financial Inc.		13,552		182,139
				359,698
Tires & Rubber–0.21%
Goodyear Tire & Rubber Co. (The)(c)		11,968		200,703
Tobacco–0.74%
Altria Group, Inc.		6,540		172,721
Lorillard, Inc.		1,589		172,995
Philip Morris International Inc.		2,586		172,667
Reynolds American Inc.		4,652		172,357
				690,740
Trading Companies & Distributors–0.41%
Fastenal Co.		5,386		193,842
W.W. Grainger, Inc.		1,224		188,068
				381,910
Trucking–0.21%
Ryder System, Inc.		3,439		195,507
Wireless Telecommunication Services–0.60%
American Tower Corp.–Class A(c)		3,528		184,620
MetroPCS Communications, Inc.(c)		11,056		190,274
Sprint Nextel Corp.(c)		34,128		183,950
				558,844
Total Common Stocks & Other Equity Interests (Cost $44,740,129)				92,311,998
Money Market Funds–1.80%
Liquid Assets Portfolio–Institutional Class(e)		846,627		846,627
Premier Portfolio–Institutional Class(e)		846,627		846,627
Total Money Market Funds (Cost $1,693,254)				1,693,254
TOTAL INVESTMENTS–100.21% (Cost $46,433,383)				94,005,252
OTHER ASSETS LESS LIABILITIES–(0.21)%				(198,049	)
NET ASSETS–100.00%			$	93,807,203

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)	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.
(c)	Non-income producing security.
(d)	Affiliated company. The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 5.
(e)	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. Select Dimensions Equally-Weighted S&P 500 Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2011

Consumer Discretionary	16.0	%
Financials	15.7
Information Technology	14.5
Industrials	11.9
Health Care	10.1
Energy	8.2
Consumer Staples	7.8
Materials	6.3
Utilities	6.3
Telecommunication Services	1.6
Money Market Funds Plus Other Assets Less Liabilities	1.6

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $44,578,109)	$	92,132,122
Investments in affiliated money market funds, at value and cost		1,693,254
Investments in affiliates, at value (Cost $162,020)		179,876
Total investments, at value (Cost $46,433,383)		94,005,252
Receivable for:
Investments sold		240,079
Variation margin		15,703
Fund shares sold		2,240
Dividends		115,401
Fund expenses absorbed		5,731
Investment for trustee deferred compensation and retirement plans		3,288
Other assets		5,844
Total assets		94,393,538
Liabilities:
Payable for:
Investments purchased		236,821
Fund shares reacquired		4,172
Accrued fees to affiliates		293,757
Accrued other operating expenses		47,278
Trustee deferred compensation and retirement plans		4,307
Total liabilities		586,335
Net assets applicable to shares outstanding	$	93,807,203
Net assets consist of:
Shares of beneficial interest	$	40,389,053
Undistributed net investment income		2,017,106
Undistributed net realized gain		3,789,416
Unrealized appreciation		47,611,628
	$	93,807,203
Net Assets:
Series I	$	43,019,953
Series II	$	50,787,250
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		2,123,039
Series II		2,543,350
Series I:
Net asset value per share	$	20.26
Series II: Net asset value per share	$	19.97

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends	$	858,255
Dividends from affiliated money market funds		668
Dividends from affiliated underlying funds		1,820
Total investment income		860,743
Expenses:
Advisory fees		58,534
Administrative services fees		146,740
Custodian fees		42,126
Distribution fees – Series II		67,035
Transfer agent fees		1,107
Trustees’ and officers’ fees and benefits		9,335
Other		27,993
Total expenses		352,870
Less: Fees waived and expenses reimbursed		(105,531	)
Net expenses		247,339
Net investment income		613,404
Realized and unrealized gain from:
Net realized gain (loss) from:
Investment securities		6,730,417
Futures contracts		(33,359	)
		6,697,058
Change in net unrealized appreciation of:
Investment securities		151,553
Futures contracts		24,509
		176,062
Net realized and unrealized gain		6,873,120
Net increase in net assets resulting from operations	$	7,486,524

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	613,404		$	1,408,741
Net realized gain		6,697,058			8,745,848
Change in net unrealized appreciation		176,062			8,613,235
Net increase in net assets resulting from operations		7,486,524			18,767,824
Distributions to shareholders from net investment income:
Series I		—			(629,718	)
Series II		—			(710,006	)
Total distributions from net investment income		—			(1,339,724	)
Share transactions–net:
Series I		(4,022,633	)		(7,540,299	)
Series II		(8,972,273	)		(11,702,914	)
Net increase (decrease) in net assets resulting from share transactions		(12,994,906	)		(19,243,213	)
Net increase (decrease) in net assets		(5,508,382	)		(1,815,113	)
Net assets:
Beginning of period		99,315,585			101,130,698
End of period (includes undistributed net investment income of $2,017,106 and $1,403,702, respectively)	$	93,807,203		$	99,315,585

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 investment objective’s is to achieve a high level of total return on its assets through a combination of 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 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.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

	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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	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. Select Dimensions Equally-Weighted S&P 500 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.	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.	Collateral — To the extent each Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is such Fund’s practice to replace such collateral no later than the next business day.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $2 billion		0	.12%
Over $2 billion		0	.10%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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).

  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 and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.37% and Series II shares to 0.62% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $58,534 and reimbursed class level expenses of $46,997.

  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, 2011, Invesco was paid $24,794 for accounting and fund administrative services and reimbursed $121,946 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	94,005,252	$	—	$	—	$	94,005,252
Futures*		39,759		—		—		39,759
Total Investments	$	94,045,011	$	—	$	—	$	94,045,011

*  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, 2011:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	39,759	$	—

^(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, 2011

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)
Interest rate risk	$	(33,359	)
Change in Unrealized Appreciation (Depreciation)
Interest rate risk		24,509
Total	$	(8,850	)

*  The average value of futures outstanding during the period was $1,065,252 .

Open Futures Contracts
	Number of				Notional		Unrealized
Contract	Contracts		Month		Value		Appreciation
E-Mini S&P 500 Index		27		September-2011/Long	$	1,775,925	$	39,759

NOTE 5—Investments in Other Affiliates

The Investment Company Act of 1940 defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The following is a summary of the investments in affiliates for the six months ended June 30, 2011.

								Change in
								Unrealized
	Value		Purchases		Proceeds			Appreciation			Realized			Value		Dividend
	12/31/10		at Cost		from Sales			(Depreciation)			Gain (Loss)			06/30/11		Income
Invesco Ltd.	$	206,651	$	13,014	$	(36,883	)	$	(1,999	)	$	(907	)	$	179,876	$	1,820

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

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, 2011, the Fund paid legal fees of $700 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 utilized $8,518,615 of capital loss carryforward in the fiscal year ending December 31, 2010.

  The Fund had a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	670,257

*  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, 2011 was $9,403,126 and $22,767,404, 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	$	45,765,485
Aggregate unrealized (depreciation) of investment securities		(382,938	)
Net unrealized appreciation of investment securities	$	45,382,547
Cost of investments for tax purposes is $48,622,705.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		13,215		$	261,663			36,273		$	613,769
Series II		13,551			261,845			70,709			1,148,335
Issued as reinvestment of dividends:
Series I		—			—			39,137			629,719
Series II		—			—			44,654			710,006
Reacquired:
Series I		(215,468	)		(4,284,296	)		(525,472	)		(8,783,787	)
Series II		(473,265	)		(9,234,118	)		(829,357	)		(13,561,255	)
Net increase (decrease) in share activity		(661,967	)	$	(12,994,906	)		(1,164,056	)	$	(19,243,213	)

^(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 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.

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			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			Rebate			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			from			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return(b)			(000s omitted)		absorbed			absorbed			affiliates			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	18.78	$	0.14	$	1.34		$	1.48		$	—		$	—		$	—		$	20.26		7.88	%	$	43,020		0.37	%(d)		0.59	%(d)		—	%		1.39	%(d)		10	%
Year ended 12/31/10		15.69		0.26		3.07			3.33			(0.24	)		—			(0.24	)		18.78		21.51			43,669		0.35			0.40			—			1.59			21
Year ended 12/31/09		11.61		0.22		4.75			4.97			(0.34	)		(0.55	)		(0.89	)		15.69		45.08			43,553		0.37	(e)		0.37	(e)		0.00	(f)		1.72	(e)		13
Year ended 12/31/08		25.37		0.32		(8.73	)		(8.41	)		(0.45	)		(4.90	)		(5.35	)		11.61		(40.02	)		36,814		0.31	(e)		0.31	(e)		0.00	(f)		1.70	(e)		32
Year ended 12/31/07		27.75		0.41		0.20			0.61			(0.42	)		(2.57	)		(2.99	)		25.37		1.47			77,688		0.28			0.28			—			1.48			17
Year ended 12/31/06		25.71		0.37		3.45			3.82			(0.34	)		(1.44	)		(1.78	)		27.75		15.69			103,824		0.27			0.27			—			1.40			17
Series II
Six months ended 06/30/11		18.53		0.11		1.33			1.44			—			—			—			19.97		7.77			50,787		0.62	(d)		0.84	(d)		—			1.14	(d)		10
Year ended 12/31/10		15.49		0.22		3.03			3.25			(0.21	)		—			(0.21	)		18.53		21.19			55,646		0.60			0.65			—			1.34			21
Year ended 12/31/09		11.45		0.19		4.69			4.88			(0.29	)		(0.55	)		(0.84	)		15.49		44.79			57,578		0.62	(e)		0.62	(e)		0.00	(f)		1.47	(e)		13
Year ended 12/31/08		25.08		0.27		(8.63	)		(8.36	)		(0.37	)		(4.90	)		(5.27	)		11.45		(40.19	)		46,447		0.56	(e)		0.56	(e)		0.00	(f)		1.45	(e)		32
Year ended 12/31/07		27.47		0.34		0.19			0.53			(0.35	)		(2.57	)		(2.92	)		25.08		1.23			99,861		0.53			0.53			—			1.23			17
Year ended 12/31/06		25.48		0.30		3.42			3.72			(0.29	)		(1.44	)		(1.73	)		27.47		15.34			112,897		0.52			0.52			—			1.15			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 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) of $44,292 and $54,073 for Series I and Series II shares, respectively.
(e)	The ratios are annualized and reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from Morgan Stanley affiliate”.
(f)	Amount is less than 0.005%

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,078.80	$	1.91	$	1,022.96	$	1.86		0.37	%
Series II		1,000.00		1,077.70		3.19		1,021.72		3.11		0.62

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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. Select Dimensions Equally-Weighted S&P 500 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. Select Dimensions Equally-Weighted S&P 500 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

Invesco V.I. Select Dimensions Equally-Weighted S&P 500 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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Multi-Cap Core Funds Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of the 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 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was the same as the rate of one mutual fund and above the rate of the other mutual fund, which was a fund-of-funds that does not pay an advisory fee.

  Other than the mutual funds 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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. Select Dimensions Equally-Weighted S&P 500 Fund

Invesco V.I. Small Cap Equity Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	10.47	%
Series II Shares	10.33
S&P 500 Index▼ (Broad Market Index)	6.01
Russell 2000 Index▼ (Style-Specific Index)	6.21
Lipper VUF Small-Cap Core Funds Index▼ (Peer Group Index)	6.90

^▼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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/11

Series I Shares
Inception (8/29/03)	9.03	%
5 Years	5.87
1 Year	43.10
Series II Shares
Inception (8/29/03)	8.78	%
5 Years	5.60
1 Year	42.80

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. 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

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.25%(a)
Advertising–1.19%
Interpublic Group of Cos., Inc. (The)		292,291	$	3,653,638
Aerospace & Defense–1.52%
AAR Corp.		116,759		3,163,001
Aerovironment, Inc.(b)		43,087		1,523,126
				4,686,127
Agricultural Products–2.34%
Corn Products International, Inc.		64,862		3,585,572
Darling International, Inc.(b)		203,979		3,610,428
				7,196,000
Air Freight & Logistics–0.90%
UTI Worldwide, Inc.		140,051		2,757,604
Apparel Retail–2.21%
Finish Line, Inc. (The)–Class A		140,738		3,011,793
Genesco, Inc.(b)		72,523		3,778,448
				6,790,241
Apparel, Accessories & Luxury Goods–0.97%
Phillips-Van Heusen Corp.		45,536		2,981,242
Application Software–2.98%
Parametric Technology Corp.(b)		119,333		2,736,306
Quest Software, Inc.(b)		119,494		2,716,098
TIBCO Software, Inc.(b)		128,084		3,716,998
				9,169,402
Asset Management & Custody Banks–1.53%
Affiliated Managers Group, Inc.(b)		23,113		2,344,814
SEI Investments Co.		104,647		2,355,604
				4,700,418
Auto Parts & Equipment–3.23%
Dana Holding Corp.(b)		177,710		3,252,093
Modine Manufacturing Co.(b)		210,749		3,239,212
TRW Automotive Holdings Corp.(b)		58,117		3,430,647
				9,921,952
Automotive Retail–0.96%
Penske Automotive Group, Inc.		130,126		2,959,065
Casinos & Gaming–0.69%
Bally Technologies, Inc.(b)		51,905		2,111,495
Coal & Consumable Fuels–0.75%
James River Coal Co.(b)		110,266		2,295,738
Communications Equipment–0.78%
JDS Uniphase Corp.(b)		143,905		2,397,457
Construction & Farm Machinery & Heavy Trucks–3.19%
Manitowoc Co., Inc. (The)		171,130		2,881,829
Titan International, Inc.		149,220		3,620,077
Trinity Industries, Inc.		95,084		3,316,530
				9,818,436
Data Processing & Outsourced Services–1.94%
Henry (Jack) & Associates, Inc.		89,478		2,685,235
Wright Express Corp.(b)		63,281		3,295,041
				5,980,276
Department Stores–1.13%
Dillard’s, Inc.–Class A		66,919		3,489,157
Diversified Chemicals–0.92%
FMC Corp.		32,850		2,825,757
Diversified Metals & Mining–0.85%
Compass Minerals International, Inc.		30,265		2,604,909
Electrical Components & Equipment–2.01%
Belden Inc.		85,671		2,986,491
GrafTech International Ltd.(b)		157,722		3,197,025
				6,183,516
Electronic Equipment & Instruments–1.75%
Electro Scientific Industries, Inc.(b)		66,539		1,284,203
OSI Systems, Inc.(b)		95,505		4,106,715
				5,390,918
Environmental & Facilities Services–2.75%
ABM Industries, Inc.		119,077		2,779,257
Team, Inc.(b)		129,694		3,129,516
Waste Connections, Inc.		80,848		2,565,307
				8,474,080
Food Distributors–0.96%
United Natural Foods, Inc.(b)		69,127		2,949,649
Gas Utilities–1.27%
Energen Corp.		32,867		1,856,985
UGI Corp.		63,920		2,038,409
				3,895,394

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

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Gold–0.49%
Allied Nevada Gold Corp.(b)		22,318	$	789,388
Detour Gold Corp. (Canada)(b)		24,861		720,515
				1,509,903
Health Care Distributors–0.66%
Owens & Minor, Inc.		59,204		2,041,946
Health Care Equipment–1.75%
Greatbatch, Inc.(b)		110,475		2,962,940
Teleflex, Inc.		39,620		2,419,197
				5,382,137
Health Care Facilities–3.25%
Amsurg Corp.(b)		119,000		3,109,470
Hanger Orthopedic Group, Inc.(b)		129,877		3,178,090
Universal Health Services, Inc.–Class B		72,039		3,712,170
				9,999,730
Health Care Services–0.48%
Gentiva Health Services, Inc.(b)		70,573		1,470,036
Health Care Supplies–1.30%
Cooper Cos., Inc. (The)		50,553		4,005,820
Health Care Technology–0.65%
Omnicell, Inc.(b)		128,355		2,001,054
Home Furnishings–0.82%
Ethan Allen Interiors, Inc.		117,806		2,508,090
Industrial Machinery–3.28%
Gardner Denver, Inc.		47,939		4,029,273
IDEX Corp.		68,092		3,122,018
Valmont Industries, Inc.		30,610		2,950,498
				10,101,789
Insurance Brokers–0.69%
Arthur J. Gallagher & Co.		73,915		2,109,534
Integrated Telecommunication Services–0.60%
Alaska Communications Systems Group, Inc.		208,295		1,847,577
Internet Software & Services–2.11%
Open Text Corp. (Canada)(b)		51,171		3,275,967
ValueClick, Inc.(b)		194,148		3,222,857
				6,498,824
Investment Banking & Brokerage–1.41%
Evercore Partners, Inc., Class A		86,089		2,868,486
KBW, Inc.		79,253		1,482,031
				4,350,517
Life Sciences Tools & Services–0.96%
Charles River Laboratories International, Inc.(b)		72,615		2,951,800
Managed Health Care–1.15%
Healthspring, Inc.(b)		76,600		3,532,026
Metal & Glass Containers–0.85%
AptarGroup, Inc.		49,886		2,611,033
Office REIT’s–1.74%
Alexandria Real Estate Equities, Inc.		37,424		2,897,366
Digital Realty Trust, Inc.		39,800		2,458,844
				5,356,210
Oil & Gas Drilling–0.91%
Patterson-UTI Energy, Inc.		88,928		2,811,014
Oil & Gas Equipment & Services–3.74%
Dresser-Rand Group, Inc.(b)		54,836		2,947,435
Lufkin Industries, Inc.		33,527		2,884,998
Oceaneering International, Inc.		70,727		2,864,443
Superior Energy Services, Inc.(b)		75,961		2,821,192
				11,518,068
Oil & Gas Exploration & Production–1.47%
Forest Oil Corp.(b)		77,933		2,081,590
SandRidge Energy, Inc.(b)		228,050		2,431,013
				4,512,603
Oil & Gas Refining & Marketing–0.98%
Frontier Oil Corp.		93,239		3,012,552
Packaged Foods & Meats–0.91%
TreeHouse Foods, Inc.(b)		51,484		2,811,541
Paper Products–0.80%
Schweitzer-Mauduit International, Inc.		43,951		2,467,849
Pharmaceuticals–3.36%
Endo Pharmaceuticals Holdings, Inc.(b)		81,539		3,275,422
Questcor Pharmaceuticals, Inc.(b)		151,400		3,648,740
ViroPharma, Inc.(b)		183,730		3,399,005
				10,323,167
Property & Casualty Insurance–1.34%
FPIC Insurance Group, Inc.(b)		53,790		2,241,967
Hanover Insurance Group, Inc.		36,892		1,391,198
Safety Insurance Group, Inc.		11,404		479,424
				4,112,589
Real Estate Services–0.99%
Jones Lang LaSalle Inc.		32,320		3,047,776

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

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Regional Banks–4.60%
Associated Banc-Corp		154,719	$	2,150,594
Commerce Bancshares, Inc.		48,103		2,068,429
East West Bancorp, Inc.		130,843		2,644,337
Texas Capital Bancshares, Inc.(b)		74,641		1,927,977
Wintrust Financial Corp.		89,837		2,890,955
Zions Bancorp.		103,170		2,477,112
				14,159,404
Restaurants–4.03%
Brinker International, Inc.		120,787		2,954,450
DineEquity, Inc.(b)		53,158		2,778,569
P.F. Chang’s China Bistro, Inc.		46,469		1,869,912
Papa John’s International, Inc.(b)		55,395		1,842,438
Texas Roadhouse, Inc.		168,673		2,957,681
				12,403,050
Retail REIT’s–0.92%
Tanger Factory Outlet Centers, Inc.		106,104		2,840,404
Semiconductor Equipment–2.50%
Advanced Energy Industries, Inc.(b)		133,980		1,981,564
Cymer, Inc.(b)		57,077		2,825,882
Veeco Instruments Inc.(b)		59,400		2,875,554
				7,683,000
Semiconductors–2.07%
Lattice Semiconductor Corp.(b)		449,654		2,931,744
Semtech Corp.(b)		125,611		3,434,205
				6,365,949
Specialized REIT’s–0.96%
LaSalle Hotel Properties		111,788		2,944,496
Specialty Chemicals–3.65%
Innophos Holdings, Inc.		84,283		4,113,010
Kraton Performance Polymers, Inc.(b)		87,295		3,419,345
PolyOne Corp.		237,846		3,679,478
				11,211,833
Specialty Stores–1.34%
GNC Acquisition Holdings, Inc.–Class A(b)		188,657		4,114,609
Systems Software–1.05%
Ariba, Inc.(b)		93,923		3,237,526
Technology Distributors–0.69%
Ingram Micro, Inc.–Class A(b)		117,108		2,124,339
Trading Companies & Distributors–1.03%
Beacon Roofing Supply, Inc.(b)		138,876		3,169,150
Trucking–1.90%
Landstar System, Inc.		50,348		2,340,175
Old Dominion Freight Line, Inc.(b)		93,624		3,492,175
				5,832,350
Total Common Stocks & Other Equity Interests (Cost $220,308,637)				302,213,766
Money Market Funds–2.23%
Liquid Assets Portfolio–Institutional Class(c)		3,431,821		3,431,821
Premier Portfolio–Institutional Class(c)		3,431,821		3,431,821
Total Money Market Funds (Cost $6,863,642)				6,863,642
TOTAL INVESTMENTS–100.48% (Cost $227,172,279)				309,077,408
OTHER ASSETS LESS LIABILITIES–(0.48)%				(1,490,134	)
NET ASSETS–100.00%			$	307,587,274

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.

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

Invesco V.I. Small Cap Equity Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2011

Consumer Discretionary	16.6	%
Industrials	16.6
Information Technology	15.9
Financials	14.2
Health Care	13.6
Energy	7.8
Materials	7.5
Consumer Staples	4.2
Utilities	1.3
Telecommunication Services	0.6
Money Market Funds Plus Other Assets Less Liabilities	1.7

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $220,308,637)	$	302,213,766
Investments in affiliated money market funds, at value and cost		6,863,642
Total investments, at value (Cost $227,172,279)		309,077,408
Receivable for:
Investments sold		41,098
Fund shares sold		272,987
Dividends		176,963
Investment for trustee deferred compensation and retirement plans		23,744
Total assets		309,592,200
Liabilities:
Payable for:
Investments purchased		1,122,966
Fund shares reacquired		429,692
Accrued fees to affiliates		385,675
Accrued other operating expenses		29,999
Trustee deferred compensation and retirement plans		36,594
Total liabilities		2,004,926
Net assets applicable to shares outstanding	$	307,587,274
Net assets consist of:
Shares of beneficial interest	$	251,624,365
Undistributed net investment income (loss)		(444,314	)
Undistributed net realized gain (loss)		(25,497,906	)
Unrealized appreciation		81,905,129
	$	307,587,274
Net Assets:
Series I	$	257,793,095
Series II	$	49,794,179
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		14,117,656
Series II		2,773,749
Series I:
Net asset value per share	$	18.26
Series II:
Net asset value per share	$	17.95

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends	$	1,138,948
Dividends from affiliated money market funds (includes securities lending income of $13,667)		19,082
Total investment income		1,158,030
Expenses:
Advisory fees		1,067,953
Administrative services fees		390,832
Custodian fees		13,864
Distribution fees — Series II		51,621
Transfer agent fees		13,219
Trustees’ and officers’ fees and benefits		11,846
Other		32,259
Total expenses		1,581,594
Less: Fees waived		(7,263	)
Net expenses		1,574,331
Net investment income (loss)		(416,301	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(75,311))		12,617,324
Foreign currencies		(2,187	)
		12,615,137
Change in net unrealized appreciation of investment securities		13,787,695
Net realized and unrealized gain		26,402,832
Net increase in net assets resulting from operations	$	25,986,531

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income (loss)	$	(416,301	)	$	(290,151	)
Net realized gain		12,615,137			806,612
Change in net unrealized appreciation		13,787,695			53,570,548
Net increase in net assets resulting from operations		25,986,531			54,087,009
Share transactions–net:
Series I		14,344,183			(5,817,750	)
Series II		12,661,181			13,329,420
Net increase in net assets resulting from share transactions		27,005,364			7,511,670
Net increase in net assets		52,991,895			61,598,679
Net assets:
Beginning of period		254,595,379			192,996,700
End of period (includes undistributed net investment income (loss) of $(444,314) and $(28,013), respectively)	$	307,587,274		$	254,595,379

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Small Cap Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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. Small Cap Equity 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to

Invesco V.I. Small Cap Equity Fund

	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 Daily Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.730%
Next $500 million		0	.715%
Next $1.5 billion		0	.700%
Next $2.5 billion		0	.685%
Next $2.5 billion		0	.670%
Next $2.5 billion		0	.655%
Over $10 billion		0	.640%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of 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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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, 2012, 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, 2011, the Adviser waived advisory fees of $7,263.

  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, 2011, 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. Small Cap Equity 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, 2011, Invesco was paid $38,021 for accounting and fund administrative services and reimbursed $352,811 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	309,077,408	$	—	$	—	$	309,077,408

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, 2011, the Fund engaged in securities purchases of $125,857 and securities sales of $3,591,653, which resulted in net realized gains (losses) of $(75,311).

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, 2011, the Fund paid legal fees of $807 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	12,193,641
December 31, 2017		22,760,741
December 31, 2018		1,046,978
Total capital loss carryforward	$	36,001,360

*  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, 2011 was $124,700,885 and $93,531,361, 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	$	83,557,885
Aggregate unrealized (depreciation) of investment securities		(3,764,439	)
Net unrealized appreciation of investment securities	$	79,793,446
Cost of investments for tax purposes is $229,283,962.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		3,985,003		$	71,712,291			4,244,898		$	60,143,350
Series II		1,426,402			25,288,194			1,189,752			16,471,236
Reacquired:
Series I		(3,233,185	)		(57,368,108	)		(4,793,630	)		(65,961,100	)
Series II		(722,021	)		(12,627,013	)		(227,279	)		(3,141,816	)
Net increase in share activity		1,456,199		$	27,005,364			413,741		$	7,511,670

^(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. 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
						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)(a)			unrealized)			operations			income			gains			Distributions			of period		return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	16.53	$	(0.02	)	$	1.75		$	1.73		$	—		$	—		$	—		$	18.26		10.47	%	$	257,793		1.05	%(d)		1.06	%(d)		(0.25	)%(d)		33	%
Year ended 12/31/10		12.86		(0.02	)		3.69			3.67			—			—			—			16.53		28.54			220,925		1.07			1.07			(0.11	)		46
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
Series II
Six months ended 06/30/11		16.27		(0.04	)		1.72			1.68			—			—			—			17.95		10.33			49,794		1.30	(d)		1.31	(d)		(0.50	)(d)		33
Year ended 12/31/10		12.69		(0.05	)		3.63			3.58			—			—			—			16.27		28.21			33,670		1.32			1.32			(0.36	)		46
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

(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 and are not annualized for periods less than one year, if applicable.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ending 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 AIM V.I. Small Cap Growth Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $248,239 and $41,639 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,104.70	$	5.48	$	1,019.59	$	5.26		1.05	%
Series II		1,000.00		1,103.30		6.78		1,018.35		6.51		1.30

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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. Small Cap Equity Fund

to the performance of funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Small-Cap Core Funds Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of the performance universe for the one and five year periods and the third quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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. The Board noted that the Fund’s effective fee rate was above the effective fee rate of one mutual fund advised by Invesco Advisers. The Board also noted that Invesco Advisers serves as a sub-adviser to three mutual funds and that the effective fee sub-advisory rate is below the effective fee advisory rate of the Fund.

  The Board noted that Invesco Advisers and the Affiliated Sub-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 has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.44	%
Series II Shares	5.28
S&P 500 Index▼ (Broad Market Index)	6.01
Bank of America Merrill Lynch 100 Technology Index▼ (Style-Specific Index)	2.11
Lipper VUF Science & Technology Funds Category Average▼ (Peer Group)	3.72

^▼Lipper Inc.

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

     The Bank of America 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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

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 1.14% and 1.39%, 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.

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (5/20/97)			3.84	%
	10	Years	-1.31
	5	Years	5.93
	1	Year	39.42
Series II Shares
	10	Years	-1.58	%
	5	Years	5.66
	1	Year	39.11

Invesco V.I. Technology Fund

Schedule of Investments^(a)

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.31%
Application Software–8.58%
Autodesk, Inc.(b)		53,008	$	2,046,109
Citrix Systems, Inc.(b)		37,731		3,018,480
NICE Systems Ltd.–ADR (Israel)(b)		48,939		1,779,422
Nuance Communications, Inc.(b)		64,415		1,382,990
Quest Software, Inc.(b)		41,170		935,794
Salesforce.com, Inc.(b)		5,118		762,480
TIBCO Software Inc.(b)		36,779		1,067,326
				10,992,601
Communications Equipment–10.97%
Acme Packet, Inc.(b)		22,416		1,572,034
Ciena Corp.(b)		50,440		927,087
F5 Networks, Inc.(b)		10,198		1,124,330
JDS Uniphase Corp.(b)		69,243		1,153,588
Juniper Networks, Inc.(b)		37,138		1,169,847
Polycom, Inc.(b)		20,932		1,345,928
Qualcomm, Inc.		84,430		4,794,780
Sonus Networks, Inc.(b)		172,767		559,765
Sycamore Networks, Inc.		63,013		1,401,409
				14,048,768
Computer Hardware–8.74%
Apple, Inc.(b)		30,274		10,162,074
Hewlett-Packard Co.		28,331		1,031,248
				11,193,322
Computer Storage & Peripherals–5.07%
EMC Corp.(b)		146,250		4,029,187
NetApp, Inc.(b)		29,358		1,549,515
SanDisk Corp.(b)		22,095		916,943
				6,495,645
Data Processing & Outsourced Services–7.62%
Alliance Data Systems Corp.(b)		12,808		1,204,849
Genpact Ltd. (Bermuda)(b)		65,360		1,126,807
MasterCard, Inc.–Class A		7,100		2,139,514
VeriFone Systems, Inc.(b)		22,698		1,006,656
Visa, Inc.–Class A		13,035		1,098,329
Western Union Co.		54,673		1,095,100
Wright Express Corp.(b)		40,217		2,094,099
				9,765,354
Electronic Manufacturing Services–2.11%
Jabil Circuit, Inc.		60,329		1,218,646
TE Connectivity Ltd.		40,410		1,485,471
				2,704,117
Fertilizers & Agricultural Chemicals–1.26%
Monsanto Co.		22,225		1,612,201
Home Entertainment Software–0.34%
Nintendo Co., Ltd. (Japan)		2,300		433,219
Internet Retail–3.01%
Amazon.com, Inc.(b)		12,993		2,656,939
Netflix Inc.(b)		4,564		1,198,917
				3,855,856
Internet Software & Services–5.93%
Google, Inc.–Class A(b)		7,691		3,894,569
Responsys, Inc.(b)		17,995		319,051
ValueClick, Inc.(b)		67,845		1,126,227
Velti PLC (Ireland)(b)		70,166		1,186,507
VeriSign, Inc.		31,995		1,070,553
				7,596,907
IT Consulting & Other Services–7.60%
Accenture PLC–Class A (Ireland)		47,824		2,889,526
Cognizant Technology Solutions Corp.–Class A(b)		66,222		4,856,722
International Business Machines Corp.		11,557		1,982,603
				9,728,851
Other Diversified Financial Services–0.50%
BlueStream Ventures L.P. (Acquired 08/03/00-06/13/08; Cost $3,149,655)(c)(d)		—		637,785
Research & Consulting Services–0.63%
Acacia Research–Acacia Technologies(b)		21,863		802,153
Semiconductor Equipment–3.33%
Advanced Energy Industries, Inc.(b)		50,729		750,282
ASML Holding N.V.–New York Shares (Netherlands)		38,141		1,409,691
Cymer, Inc.(b)		27,397		1,356,426
Novellus Systems, Inc.(b)		20,674		747,158
				4,263,557
Semiconductors–16.98%
ARM Holdings PLC–ADR (United Kingdom)		8,918		253,539
Atmel Corp.(b)		161,654		2,274,472
Avago Technologies Ltd. (Singapore)		72,883		2,769,554
Broadcom Corp.–Class A(b)		50,749		1,707,196

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

Invesco V.I. Technology Fund

	Shares		Value
Semiconductors–(continued)
Cypress Semiconductor Corp.(b)		53,119	$	1,122,936
Intel Corp.		114,863		2,545,364
Lattice Semiconductor Corp.(b)		123,005		801,992
Marvell Technology Group Ltd.(b)		52,125		769,626
Micron Technology, Inc.(b)		108,587		812,231
Microsemi Corp.(b)		153,811		3,153,125
ON Semiconductor Corp.(b)		180,960		1,894,651
Semtech Corp.(b)		76,514		2,091,893
Skyworks Solutions, Inc.(b)		23,563		541,478
Xilinx, Inc.		27,553		1,004,858
				21,742,915
Systems Software–16.64%
Ariba, Inc.(b)		71,575		2,467,190
Check Point Software Technologies Ltd. (Israel)(b)		96,333		5,476,531
CommVault Systems, Inc.(b)		17,503		778,008
Microsoft Corp.		128,493		3,340,818
Oracle Corp.		96,961		3,190,987
Red Hat, Inc.(b)		41,392		1,899,893
Rovi Corp.(b)		51,656		2,962,988
Symantec Corp.(b)		60,523		1,193,514
				21,309,929
Total Common Stocks & Other Equity Interests (Cost $95,308,383)				127,183,180
Money Market Funds–0.73%
Liquid Assets Portfolio–Institutional Class(e)		464,313		464,313
Premier Portfolio–Institutional Class(e)		464,313		464,313
Total Money Market Funds (Cost $928,626)				928,626
TOTAL INVESTMENTS–100.04% (Cost $96,237,009)				128,111,806
OTHER ASSETS LESS LIABILITIES–(0.04)%				(45,121	)
NET ASSETS–100.00%			$	128,066,685

Investment Abbreviation:

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 value of this security at June 30, 2011 represented 0.50% of the Fund’s Net Assets.
(d)	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.
(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, 2011

Information Technology	93.9	%
Consumer Discretionary	3.0
Materials	1.3
Industrials	0.6
Financials	0.5
Money Market Funds Plus Other Assets Less Liabilities	0.7

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $95,308,383)	$	127,183,180
Investments in affiliated money market funds, at value and cost		928,626
Total investments, at value (Cost $96,237,009)		128,111,806
Foreign currencies, at value (Cost $8,370)		8,404
Receivable for:
Investments sold		858,363
Fund shares sold		25,067
Dividends		8,318
Investment for trustee deferred compensation and retirement plans		33,991
Other assets		239
Total assets		129,046,188
Liabilities:
Payable for:
Fund shares reacquired		733,693
Accrued fees to affiliates		171,305
Accrued other operating expenses		23,949
Trustee deferred compensation and retirement plans		50,556
Total liabilities		979,503
Net assets applicable to shares outstanding	$	128,066,685
Net assets consist of:
Shares of beneficial interest	$	101,928,688
Undistributed net investment income		1,839,526
Undistributed net realized gain (loss)		(7,576,360	)
Unrealized appreciation		31,874,831
	$	128,066,685
Net Assets:
Series I	$	126,473,726
Series II	$	1,592,959
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		7,498,920
Series II		96,329
Series I:
Net asset value per share	$	16.87
Series II:
Net asset value per share	$	16.54

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $3,957)	$	473,204
Dividends from affiliated money market funds (includes securities lending income of $4,578)		6,929
Total investment income		480,133
Expenses:
Advisory fees		505,992
Administrative services fees		191,130
Custodian fees		3,403
Distribution fees — Series II		1,844
Transfer agent fees		11,285
Trustees’ and officers’ fees and benefits		9,903
Other		21,594
Total expenses		745,151
Less: Fees waived		(3,418	)
Net expenses		741,733
Net investment income (loss)		(261,600	)
Realized and unrealized gain from:
Net realized gain from:
Investment securities		6,159,549
Foreign currencies		1,080
		6,160,629
Change in net unrealized appreciation (depreciation) of:
Investment securities		620,565
Foreign currencies		(761	)
		619,804
Net realized and unrealized gain		6,780,433
Net increase in net assets resulting from operations	$	6,518,833

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income (loss)	$	(261,600	)	$	208,234
Net realized gain		6,160,629			7,911,740
Change in net unrealized appreciation		619,804			14,071,941
Net increase in net assets resulting from operations		6,518,833			22,191,915
Share transactions-net:
Series I		(8,286,332	)		(13,096,747	)
Series II		331,823			622,157
Net increase (decrease) in net assets resulting from share transactions		(7,954,509	)		(12,474,590	)
Net increase (decrease) in net assets		(1,435,676	)		9,717,325
Net assets:
Beginning of period		129,502,361			119,785,036
End of period (includes undistributed net investment income of $1,839,526 and $2,101,126, respectively)	$	128,066,685		$	129,502,361

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Technology Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 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. Technology Fund

	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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

Invesco V.I. Technology Fund

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, which may make the Fund more volatile. Many products and services offered in technology-related industries are subject to rapid obsolescence, which may lower the value of the issuers 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.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		0	.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%

Invesco V.I. Technology Fund

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of 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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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, 2012, 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, 2011, the Adviser waived advisory fees of $3,418.

  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, 2011, 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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $166,335 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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. Technology Fund

  During the six months ended June 30, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	127,040,802	$	433,219	$	637,785	$	128,111,806

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, 2011, the Fund engaged in securities purchases of $2,791,461.

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, 2011, the Fund paid legal fees of $721 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 $7,468,131 of capital loss carryforward in the fiscal year ending December 31, 2011.

  The Fund had a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	2,325,577
December 31, 2017		11,408,336
Total capital loss carryforward	$	13,733,913

*  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. Technology 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, 2011 was $29,935,344 and $33,642,340, 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	$	38,734,731
Aggregate unrealized (depreciation) of investment securities		(4,919,279	)
Net unrealized appreciation of investment securities	$	33,815,452
Cost of investments for tax purposes is $94,296,354.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		1,010,668		$	17,253,394			1,717,411		$	23,632,823
Series II		32,702			541,614			62,723			886,304
Reacquired:
Series I		(1,530,202	)		(25,539,726	)		(2,747,969	)		(36,729,570	)
Series II		(12,631	)		(209,791	)		(18,555	)		(264,147	)
Net increase (decrease) in share activity		(499,463	)	$	(7,954,509	)		(986,390	)	$	(12,474,590	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 64% 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
						Net gains													expenses			expenses
						(losses) on													to average			to average net			Ratio of
	Net asset					securities													net assets			assets without			net investment
	value,		Net			(both			Total from			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		investment			realized and			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income (loss)			unrealized)			operations			of period		return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I
Six months ended 06/30/11	$	16.00	$	(0.03	)(c)	$	0.90		$	0.87		$	16.87		5.44	%	$	126,474		1.09	%(d)		1.10	%(d)		(0.38	)%(d)		23	%
Year ended 12/31/10		13.19		0.02	(c)		2.79			2.81			16.00		21.30			128,304		1.14			1.14			0.18			43
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
Series II
Six months ended 06/30/11		15.71		(0.05	)(c)		0.88			0.83			16.54		5.28			1,593		1.34	(d)		1.35	(d)		(0.63	)(d)		23
Year ended 12/31/10		12.98		(0.01	)(c)		2.74			2.73			15.71		21.03			1,198		1.39			1.39			(0.07	)		43
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

(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 $134,562 and $1,488 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,054.40	$	5.55	$	1,019.39	$	5.46		1.09	%
Series II		1,000.00		1,052.80		6.82		1,018.15		6.71		1.34

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper

Invesco V.I. Technology Fund

performance universe and against the Lipper VA Underlying Funds – Science & Technology Funds Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of the performance universe for the one and three year periods 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 performance of Series I shares of the Fund was below the performance of the Index for the one and five year periods and above the performance of the Index for the three year period. 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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. The Board noted that the Fund’s effective fee rate was above the effective fee rate of the two mutual funds advised by Invesco Advisers with comparable investment strategies.

  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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	10.62	%
Series II Shares	10.49
S&P 500 Index▼ (Broad Market Index)	6.01
S&P 500 Utilities Index▼ (Style-Specific Index)	9.06
Lipper VUF Utility Funds Category Average▼ (Peer Group)	9.25
▼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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (12/30/94)			6.93	%
	10	Years	4.23
	5	Years	5.14
	1	Year	27.81
Series II Shares
	10	Years	3.97	%
	5	Years	4.88
	1	Year	27.56

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 0.93% and 1.18%, 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 1.04% and 1.29%, 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, 2012. See current prospectus for more information.

Invesco V.I. Utilities Fund

Schedule of Investments^(a)

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks–95.37%
Electric Utilities–47.86%
American Electric Power Co., Inc.		85,826	$	3,233,924
Duke Energy Corp.		99,961		1,882,266
E.ON AG (Germany)		53,357		1,515,872
Edison International		60,747		2,353,946
Entergy Corp.		35,959		2,455,281
Exelon Corp.		67,348		2,885,188
FirstEnergy Corp.		45,235		1,997,125
NextEra Energy, Inc.		15,815		908,730
Northeast Utilities		59,859		2,105,241
Pepco Holdings, Inc.		152,313		2,989,904
Pinnacle West Capital Corp.		12,064		537,813
Portland General Electric Co.		129,466		3,272,901
PPL Corp.		64,930		1,807,002
Progress Energy, Inc.		21,604		1,037,208
Southern Co.		79,108		3,194,381
				32,176,782
Gas Utilities–5.57%
AGL Resources Inc.		33,123		1,348,437
Atmos Energy Corp.		16,927		562,823
ONEOK, Inc.		13,024		963,906
UGI Corp.		27,314		871,044
				3,746,210
Independent Power Producers & Energy Traders–7.34%
Calpine Corp.(b)		100,072		1,614,161
Constellation Energy Group Inc.		29,165		1,107,104
NRG Energy, Inc.(b)		90,028		2,212,888
				4,934,153
Integrated Telecommunication Services–4.93%
AT&T Inc.		27,454		862,330
CenturyLink Inc.		18,924		765,097
Verizon Communications Inc.		45,357		1,688,641
				3,316,068
Multi-Utilities–27.68%
CMS Energy Corp.		33,233		654,358
Consolidated Edison, Inc.		9,005		479,426
Dominion Resources, Inc.		75,724		3,655,198
DTE Energy Co.		17,824		891,557
National Grid PLC (United Kingdom)		320,668		3,155,892
NiSource Inc.		28,151		570,058
PG&E Corp.		34,327		1,442,764
Public Service Enterprise Group Inc.		51,477		1,680,209
Sempra Energy		36,439		1,926,894
TECO Energy, Inc.		53,152		1,004,041
Xcel Energy, Inc.		129,530		3,147,579
				18,607,976
Oil & Gas Storage & Transportation–1.99%
Southern Union Co.		33,209		1,333,341
Total Common Stocks (Cost $52,255,582)				64,114,530
Money Market Funds–3.71%
Liquid Assets Portfolio–Institutional Class(c)		1,247,361		1,247,361
Premier Portfolio–Institutional Class(c)		1,247,362		1,247,362
Total Money Market Funds (Cost $2,494,723)				2,494,723
TOTAL INVESTMENTS–99.08% (Cost $54,750,305)				66,609,253
OTHER ASSETS LESS LIABILITIES–0.92%				619,444
NET ASSETS–100.00%			$	67,228,697

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, 2011

Utilities	90.5	%
Telecommunication Services	4.9
Money Market Funds Plus Other Assets Less Liabilities	4.6

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $52,255,582)	$	64,114,530
Investments in affiliated money market funds, at value and cost		2,494,723
Total investments, at value (Cost $54,750,305)		66,609,253
Receivable for:
Investments sold		446,275
Fund shares sold		12,569
Dividends		367,857
Investment for trustee deferred compensation and retirement plans		43,905
Other assets		121
Total assets		67,479,980
Liabilities:
Payable for:
Fund shares reacquired		101,342
Accrued fees to affiliates		73,135
Accrued other operating expenses		19,757
Trustee deferred compensation and retirement plans		57,049
Total liabilities		251,283
Net assets applicable to shares outstanding	$	67,228,697
Net assets consist of:
Shares of beneficial interest	$	50,845,460
Undistributed net investment income		3,273,475
Undistributed net realized gain		1,245,887
Unrealized appreciation		11,863,875
	$	67,228,697
Net Assets:
Series I	$	65,334,981
Series II	$	1,893,716
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		3,972,836
Series II		115,979
Series I:
Net asset value per share	$	16.45
Series II:
Net asset value per share	$	16.33

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $17,440)	$	1,457,128
Dividends from affiliated money market funds		1,315
Total investment income		1,458,443
Expenses:
Advisory fees		196,491
Administrative services fees		98,705
Custodian fees		3,038
Distribution fees — Series II		2,165
Transfer agent fees		10,556
Trustees’ and officers’ fees and benefits		9,280
Other		24,003
Total expenses		344,238
Less: Fees waived		(39,473	)
Net expenses		304,765
Net investment income		1,153,678
Realized and unrealized gain from:
Net realized gain (loss) from:
Investment securities		2,939,500
Foreign currencies		(1,830	)
		2,937,670
Change in net unrealized appreciation of:
Investment securities		2,562,222
Foreign currencies		1,428
		2,563,650
Net realized and unrealized gain		5,501,320
Net increase in net assets resulting from operations	$	6,654,998

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	1,153,678		$	2,154,889
Net realized gain		2,937,670			2,280,276
Change in net unrealized appreciation (depreciation)		2,563,650			(674,565	)
Net increase in net assets resulting from operations		6,654,998			3,760,600
Distributions to shareholders from net investment income:
Series I		—			(2,309,020	)
Series II		—			(55,316	)
Total distributions from net investment income		—			(2,364,336	)
Share transactions–net:
Series I		(5,091,391	)		(8,086,914	)
Series II		14,852			(32,168	)
Net increase (decrease) in net assets resulting from share transactions		(5,076,539	)		(8,119,082	)
Net increase (decrease) in net assets		1,578,459			(6,722,818	)
Net assets:
Beginning of period		65,650,238			72,373,056
End of period (includes undistributed net investment income of $3,273,475 and $2,119,797, respectively)	$	67,228,697		$	65,650,238

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Utilities Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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.
	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. Utilities 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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. Utilities Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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, which may make the Fund more volatile.
	The Fund may invest a large percentage of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.
	The following factors may affect the Fund’s investments in the utilities sector: governmental regulation, economic factors, ability of the issuer to obtain financing, prices of natural resources and risks associated with nuclear power.
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 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 Canada Ltd. (formerly 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, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of 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 total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 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.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $39,473.

Invesco V.I. Utilities 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, 2011, 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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $73,910 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	63,453,361	$	3,155,892	$	—	$	66,609,253

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, 2011, the Fund paid legal fees of $676 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.

Invesco V.I. Utilities 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 (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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	1,436,392

*  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, 2011 was $4,549,433 and $8,697,456, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	12,720,157
Aggregate unrealized (depreciation) of investment securities		(1,116,600	)
Net unrealized appreciation of investment securities	$	11,603,557
Cost of investments for tax purposes is $55,005,696.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		227,643		$	3,597,891			480,106		$	6,843,415
Series II		10,902			173,825			7,837			110,711
Issued as reinvestment of dividends:
Series I		—			—			160,460			2,309,020
Series II		—			—			3,865			55,316
Reacquired:
Series I		(556,025	)		(8,689,282	)		(1,210,979	)		(17,239,349	)
Series II		(10,338	)		(158,973	)		(14,275	)		(198,195	)
Net increase (decrease) in share activity		(327,818	)	$	(5,076,539	)		(572,986	)	$	(8,119,082	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 47% of the outstanding shares of the Fund. 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
					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 to
	beginning		Investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			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 06/30/11	$	14.87	$	0.27	$	1.31		$	1.58		$	—		$	—		$	—		$	16.45		10.62	%	$	65,335		0.92	%(d)		1.04	%(d)		3.53	%(d)		7	%
Year ended 12/31/10		14.51		0.47		0.43			0.90			(0.54	)		—			(0.54	)		14.87		6.30			63,945		0.92			1.04			3.25			13
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
Series II
Six months ended 06/30/11		14.78		0.25		1.30			1.55			—			—			—			16.33		10.49			1,894		1.17	(d)		1.29	(d)		3.28	(d)		7
Year ended 12/31/10		14.43		0.43		0.42			0.85			(0.50	)		—			(0.50	)		14.78		6.01			1,706		1.17			1.29			3.00			13
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

(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) of $64,294 and $1,746 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,106.20	$	4.80	$	1,020.23	$	4.61		0.92	%
Series II		1,000.00		1,104.90		6.11		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, 2011 through June 30, 2011, 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Utility Funds Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of the Lipper 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 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s effective fee rate was above the effective rate of the other mutual fund with comparable investment strategies.

  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, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 does not benefit from economies of scale through contractual breakpoints, but does share directly in economies of scale through lower fees charged by third party service providers based on the combined size 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	6.06	%
Series II Shares	5.94
S&P 500 Index▼ (Broad Market Index)	6.01
Russell 1000 Growth Index▼ (Style-Specific Index)	6.83
Lipper VUF Large-Cap Growth Funds Index▼ (Peer Group Index)	5.68
▼Lipper Inc.

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (7/3/95)			8.45	%
	10	Years	1.18
	5	Years	5.45
	1	Year	32.57
Series II Shares
Inception (9/18/00)			-3.70	%
	10	Years	0.93
	5	Years	5.19
	1	Year	32.24

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Van Kampen Life Investment Trust Capital Growth Portfolio, 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.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 1.03% and 1.28%, 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.

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, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. Capital Growth Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.72%(a)
Aerospace & Defense–3.31%
Honeywell International, Inc.		51,983	$	3,097,667
Precision Castparts Corp.		34,618		5,699,854
				8,797,521
Apparel Retail–1.13%
Limited Brands, Inc.		22,344		859,127
Prada S.P.A. (Italy)(b)		355,900		2,147,282
				3,006,409
Apparel, Accessories & Luxury Goods–1.73%
Coach, Inc.		71,745		4,586,658
Application Software–2.94%
Citrix Systems, Inc.(b)		66,501		5,320,080
Salesforce.com, Inc.(b)		16,637		2,478,580
				7,798,660
Asset Management & Custody Banks–1.96%
Ameriprise Financial, Inc.		65,514		3,778,847
Franklin Resources, Inc.		10,813		1,419,639
				5,198,486
Biotechnology–1.96%
Dendreon Corp.(b)		46,274		1,825,047
Gilead Sciences, Inc.(b)		81,454		3,373,010
				5,198,057
Cable & Satellite–4.06%
Comcast Corp.–Class A		158,660		4,020,444
DIRECTV–Class A(b)		132,723		6,744,983
				10,765,427
Casinos & Gaming–1.41%
Las Vegas Sands Corp.(b)		88,397		3,731,237
Communications Equipment–2.65%
F5 Networks, Inc.(b)		13,179		1,452,985
Juniper Networks, Inc.(b)		58,226		1,834,119
QUALCOMM, Inc.		66,114		3,754,614
				7,041,718
Computer Hardware–6.83%
Apple, Inc.(b)		54,035		18,137,928
Computer Storage & Peripherals–2.51%
EMC Corp.(b)		197,082		5,429,609
SanDisk Corp.(b)		30,001		1,245,042
				6,674,651
Construction & Engineering–1.62%
Foster Wheeler AG (Switzerland)(b)		141,902		4,310,983
Construction & Farm Machinery & Heavy Trucks–1.18%
Cummins, Inc.		30,230		3,128,503
Data Processing & Outsourced Services–1.32%
Visa, Inc.–Class A		41,461		3,493,504
Department Stores–0.95%
Kohl’s Corp.		50,571		2,529,056
Drug Retail–1.02%
CVS Caremark Corp.		72,139		2,710,984
Fertilizers & Agricultural Chemicals–4.54%
CF Industries Holdings, Inc.		13,256		1,877,977
Monsanto Co.		64,205		4,657,431
Potash Corp. of Saskatchewan, Inc. (Canada)		96,930		5,524,041
				12,059,449
Health Care Equipment–1.35%
Baxter International, Inc.		35,310		2,107,654
Stryker Corp.		24,945		1,464,022
				3,571,676
Health Care Services–2.24%
Express Scripts, Inc.(b)		65,868		3,555,555
Medco Health Solutions, Inc.(b)		42,131		2,381,244
				5,936,799
Health Care Technology–0.90%
Allscripts Healthcare Solutions, Inc.(b)		122,675		2,382,348
Heavy Electrical Equipment–1.48%
ABB Ltd.–ADR (Switzerland)		150,923		3,916,452
Home Improvement Retail–1.11%
Home Depot, Inc. (The)		81,492		2,951,640
Hotels, Resorts & Cruise Lines–1.02%
Starwood Hotels & Resorts Worldwide, Inc.		48,280		2,705,611
Industrial Conglomerates–1.11%
Danaher Corp.		55,652		2,949,000

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
Industrial Machinery–1.65%
Ingersoll-Rand PLC (Ireland)		96,564	$	4,384,971
Integrated Oil & Gas–1.62%
Occidental Petroleum Corp.		41,419		4,309,233
Internet Retail–3.70%
Amazon.com, Inc.(b)		22,540		4,609,205
Netflix, Inc.(b)		11,570		3,039,323
Priceline.com, Inc.(b)		4,251		2,176,214
				9,824,742
Internet Software & Services–5.57%
Baidu, Inc.–ADR (China)(b)		59,100		8,281,683
Google, Inc.–Class A(b)		12,821		6,492,298
				14,773,981
IT Consulting & Other Services–2.51%
Accenture PLC–Class A (Ireland)		53,871		3,254,886
Cognizant Technology Solutions Corp.–Class A(b)		46,527		3,412,290
				6,667,176
Life Sciences Tools & Services–2.45%
Agilent Technologies, Inc.(b)		64,619		3,302,677
Illumina, Inc.(b)		42,764		3,213,715
				6,516,392
Managed Health Care–1.47%
UnitedHealth Group, Inc.		75,628		3,900,892
Movies & Entertainment–1.08%
Walt Disney Co. (The)		73,329		2,862,764
Oil & Gas Equipment & Services–7.94%
Baker Hughes, Inc.		37,684		2,734,351
Cameron International Corp.(b)		86,491		4,349,632
Halliburton Co.		40,304		2,055,504
National Oilwell Varco, Inc.		99,355		7,770,555
Weatherford International Ltd.(b)		221,784		4,158,450
				21,068,492
Oil & Gas Exploration & Production–2.45%
Anadarko Petroleum Corp.		31,849		2,444,729
EOG Resources, Inc.		38,917		4,068,773
				6,513,502
Other Diversified Financial Services–1.37%
JPMorgan Chase & Co.		88,697		3,631,255
Packaged Foods & Meats–0.92%
Mead Johnson Nutrition Co.		36,109		2,439,163
Pharmaceuticals–1.17%
Allergan, Inc.		37,285		3,103,976
Railroads–1.39%
Union Pacific Corp.		35,476		3,703,694
Restaurants–1.20%
Chipotle Mexican Grill, Inc.(b)		5,495		1,693,504
Starbucks Corp.		38,084		1,503,937
				3,197,441
Semiconductors–2.86%
Atmel Corp.(b)		233,656		3,287,540
Broadcom Corp.–Class A		64,187		2,159,251
Xilinx, Inc.		58,778		2,143,633
				7,590,424
Soft Drinks–0.67%
Hansen Natural Corp.(b)		21,843		1,768,191
Specialized Finance–0.48%
Moody’s Corp.		33,019		1,266,279
Systems Software–5.81%
Oracle Corp.		129,245		4,253,453
Rovi Corp.(b)		194,526		11,158,011
				15,411,464
Trucking–0.97%
J.B. Hunt Transport Services, Inc.		54,936		2,586,936
Wireless Telecommunication Services–2.11%
America Movil S.A.B. de C.V.–Series L–ADR (Mexico)		38,023		2,048,679
American Tower Corp.–Class A(b)		67,985		3,557,655
				5,606,334
TOTAL INVESTMENTS–99.72% (Cost $213,940,766)				264,710,059
OTHER ASSETS LESS LIABILITIES–0.28%				754,084
NET ASSETS–100.00%			$	265,464,143

Investment Abbreviation:

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.

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

as of June 30, 2011

Information Technology	33.0	%
Consumer Discretionary	17.4
Industrials	12.7
Energy	12.0
Health Care	11.5
Materials	4.6
Financials	3.8
Consumer Staples	2.6
Telecommunication Services	2.1
Other Assets Less Liabilities	0.3

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $213,940,766)	$	264,710,059
Receivable for:
Investments sold		4,866,568
Fund shares sold		61,845
Dividends		135,779
Investment for trustee deferred compensation and retirement plans		37,490
Other assets		2,004
Total assets		269,813,745
Liabilities:
Payable for:
Investments purchased		3,629,265
Fund shares reacquired		74,279
Amount due custodian		32,762
Accrued fees to affiliates		439,974
Accrued other operating expenses		121,753
Trustee deferred compensation and retirement plans		51,569
Total liabilities		4,349,602
Net assets applicable to shares outstanding	$	265,464,143
Net assets consist of:
Shares of beneficial interest	$	230,056,088
Undistributed net investment income (loss)		(284,901	)
Undistributed net realized gain (loss)		(15,079,634	)
Unrealized appreciation		50,772,590
	$	265,464,143
Net Assets:
Series I	$	161,152,196
Series II	$	104,311,947
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		4,469,311
Series II		2,940,331
Series I:
Net asset value per share	$	36.06
Series II:
Net asset value per share	$	35.48

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $2,796)	$	736,613
Dividends from affiliated money market funds (includes securities lending income of $132)		1,070
Interest		11,949
Total investment income		749,632
Expenses:
Advisory fees		743,981
Administrative services fees		291,939
Custodian fees		17,089
Distribution fees — Series II		136,155
Transfer agent fees		11,165
Trustees’ and officers’ fees and benefits		10,704
Other		24,715
Total expenses		1,235,748
Less: Fees waived		(205,191	)
Net expenses		1,030,557
Net investment income (loss)		(280,925	)
Realized and unrealized gain from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $3,726,239)		21,752,075
Foreign currencies		(1,321	)
		21,750,754
Change in net unrealized appreciation (depreciation) of:
Investment securities		(13,303,133	)
Foreign currencies		7,805
		(13,295,328	)
Net realized and unrealized gain		8,455,426
Net increase in net assets resulting from operations	$	8,174,501

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 Changes in Net Assets

For the six months ended June 30, 2011 and the year ended December 31, 2010

(Unaudited)

	2011			2010
Operations:
Net investment income (loss)	$	(280,925	)	$	(94,648	)
Net realized gain (loss)		21,750,754			(8,136,508	)
Change in net unrealized appreciation (depreciation)		(13,295,328	)		43,145,195
Net increase in net assets resulting from operations		8,174,501			34,914,039
Share transactions–net:
Series I		84,476,806			(15,642,359	)
Series II		(11,977,127	)		(21,229,104	)
Net increase (decrease) in net assets resulting from share transactions		72,499,679			(36,871,463	)
Net increase (decrease) in net assets		80,674,180			(1,957,424	)
Net assets:
Beginning of period		184,789,963			186,747,387
End of period (includes undistributed net investment income (loss) of $(284,901) and $(3,976), respectively)	$	265,464,143		$	184,789,963

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Capital Growth Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 seek 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.
	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 Van Kampen V.I. Capital Growth Fund

	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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

Invesco Van Kampen V.I. Capital Growth Fund

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 Daily Net Assets	Rate
First $500 million		0	.70%
Next $500 million		0	.65%
Over $1 billion		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 Canada Ltd. (formerly 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(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has contractually agreed, through at least June 30, 2012, 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 0.84% and Series II shares to 1.09% 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 operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $205,191.

  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

Invesco Van Kampen V.I. Capital Growth Fund

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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $267,144 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	264,710,059	$	—	$	—	$	264,710,059

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, 2011, the Fund engaged in securities purchases of $4,424,628 and securities sales of $26,198,191, which resulted in net realized gains of $3,726,239.

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, 2011, the Fund paid legal fees of $769 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.

Invesco Van Kampen V.I. Capital Growth 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2011	$	1,891,381
December 31, 2016		12,927,582
December 31, 2017		5,236,281
December 31, 2018		13,944,388
Total capital loss carryforward	$	33,999,632

*  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 2, 2011, the date of reorganization of Invesco V.I. Large Cap Growth Fund into the Fund and realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2011 was $121,430,803 and $171,176,221, 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	$	51,386,684
Aggregate unrealized (depreciation) of investment securities		(3,448,147	)
Net unrealized appreciation of investment securities	$	47,938,537
Cost of investments for tax purposes is $216,771,522.

Invesco Van Kampen V.I. Capital Growth Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		44,274		$	1,579,220			727,223		$	20,626,860
Series II		168,704			5,894,122			260,787			7,680,246
Issued in connection with acquisitions:(b)
Series I		2,764,202			102,182,035			—			—
Series II		17,638			641,933			—			—
Reacquired:
Series I		(541,365	)		(19,284,449	)		(1,140,807	)		(36,269,219	)
Series II		(528,422	)		(18,513,182	)		(995,335	)		(28,909,350	)
Net increase (decrease) in share activity		1,925,031		$	72,499,679			(1,148,132	)	$	(36,871,463	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 59% of the outstanding shares of the Fund. 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)

As of the open of business on May 2, 2011, the Fund acquired all the net assets of Invesco V.I. Large Cap Growth Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco V.I. Large Cap Growth Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 2,781,840 shares of the Fund for 6,596,443 shares outstanding of Invesco V.I. Large Cap Growth Fund as of the close of business on April 29, 2011. Each class of Invesco V.I. Large Cap Growth Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco V.I. Large Cap Growth Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco V.I. Large Cap Growth Fund’s net assets at that date of $102,823,968 including $19,535,310 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $188,601,217. The net assets of the Fund immediately following the acquisition were $291,425,185.

Invesco Van Kampen V.I. Capital 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		Net			(losses) on						Dividends										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			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)(a)			unrealized)			operations			income			of period		Return			(000’s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I(c)
Six months ended 06/30/11	$	34.00	$	(0.02	)	$	2.08	(d)	$	2.06		$	—		$	36.06		6.06	%(d)(e)	$	161,152		0.84	%(f)		1.03	%(f)		(0.14	)%(f)		62	%
Year ended 12/31/10		28.37		0.03			5.60			5.63			—			34.00		19.84	(e)		74,870		0.79			0.90			0.12			158
Year ended 12/31/09		17.10		0.04			11.26			11.30			(0.03	)		28.37		66.07			74,214		0.84			0.84			0.17			13
Year ended 12/31/08		33.68		(0.01	)		(16.43	)		(16.44	)		(0.14	)		17.10		(48.99	)		48,599		0.85			0.87			(0.04	)		42
Year ended 12/31/07		28.81		0.11			4.77			4.88			(0.01	)		33.68		16.96			143,558		0.80			0.80			0.35			177
Year ended 12/31/06		28.01		0.04			0.76			0.80			—			28.81		2.86			160,456		0.78			0.78			0.16			128
Series II(c)
Six months ended 06/30/11		33.49		(0.07	)		2.06	(d)		1.99			—			35.48		5.94	(d)(e)		104,312		1.09	(f)		1.28	(f)		(0.39	)(f)		62
Year ended 12/31/10		28.01		(0.05	)		5.53			5.48			—			33.49		19.56	(e)		109,920		1.04			1.15			(0.18	)		158
Year ended 12/31/09		16.91		(0.02	)		11.12			11.10			—			28.01		65.64	(g)		112,533		1.09			1.09			(0.07	)		13
Year ended 12/31/08		33.29		(0.08	)		(16.25	)		(16.33	)		(0.05	)		16.91		(49.11	)(g)		69,198		1.10			1.12			(0.29	)		42
Year ended 12/31/07		28.54		0.03			4.72			4.75			—			33.29		16.64	(g)		261,198		1.05			1.05			0.11			177
Year ended 12/31/06		27.81		(0.02	)		0.75			0.73			—			28.54		2.62	(g)		257,360		1.03			1.03			(0.09	)		128

(a)	Calculated using average shares outstanding.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ending June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $83,359,751 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Large Cap Growth Fund into the Fund.
(c)	On June 1, 2010, the Fund’s former Class I and Class II shares were reorganized into Series I and Series II shares.
(d)	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 $2.05 and $2.03 for Series I and Series II shares, respectively and total returns would have been lower.
(e)	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.
(f)	Ratios are annualized and based on average daily net assets (000’s omitted) of $105,368 and $109,827 for Series I and Series II shares, respectively.
(g)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.

Invesco Van Kampen V.I. Capital 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,060.60	$	4.29	$	1,020.63	$	4.21		0.84	%
Series II		1,000.00		1,059.40		5.57		1,019.39		5.46		1.09

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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. Capital 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 Van Kampen V.I. Capital 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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 Sib-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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper

Invesco Van Kampen V.I. Capital Growth Fund

performance universe and against the Lipper VA Underlying Funds – Large-Cap Growth Funds Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of the 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 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rate of the other mutual fund advised by Invesco Advisers with comparable investment strategies. The Board also noted that Invesco Advisers sub-advises two other mutual funds with investment strategies comparable to those of the Fund and that the sub-advisory rate was below the effective fee fate of the Fund.

  Other than the mutual funds 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco Van Kampen V.I. Comstock Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.70	%
Series II Shares	5.53
S&P 500 Index▼ (Broad Market Index)	6.01
Russell 1000 Value Index▼ (Style-Specific Index)	5.92
Lipper VUF Large-Cap Value Funds Index▼ (Peer Group Index)	5.49

^▼ Lipper Inc.

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (4/30/99)			4.94	%
	10	Years	3.42
	5	Years	2.17
	1	Year	30.02
Series II Shares
Inception (9/18/00)			4.88	%
	10	Years	3.16
	5	Years	1.92
	1	Year	29.77

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Van Kampen Life Investment Trust Comstock Portfolio, 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.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 0.85% and 1.10%, 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.

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, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. Comstock Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.96%(a)
Aerospace & Defense–1.24%
Honeywell International, Inc.		411,301	$	24,509,427
Aluminum–1.40%
Alcoa Inc.		1,755,760		27,846,354
Asset Management & Custody Banks–2.16%
Bank of New York Mellon Corp.		1,299,102		33,282,993
State Street Corp.		209,852		9,462,227
				42,745,220
Automobile Manufacturers–1.10%
General Motors Co.(b)		720,489		21,874,046
Cable & Satellite–6.27%
Comcast Corp.–Class A		3,124,459		79,173,791
DIRECTV–Class A(b)		199,269		10,126,851
Time Warner Cable, Inc.		447,579		34,929,065
				124,229,707
Communications Equipment–0.78%
Cisco Systems, Inc.		984,425		15,366,874
Computer Hardware–3.52%
Dell, Inc.(b)		1,517,161		25,291,074
Hewlett-Packard Co.		1,222,063		44,483,093
				69,774,167
Data Processing & Outsourced Services–0.30%
Western Union Co.		293,036		5,869,511
Department Stores–0.39%
Macy’s, Inc.		266,199		7,783,659
Diversified Banks–1.95%
U.S. Bancorp		416,231		10,618,053
Wells Fargo & Co.		999,474		28,045,240
				38,663,293
Drug Retail–1.60%
CVS Caremark Corp.		842,920		31,676,934
Electric Utilities–2.41%
American Electric Power Co., Inc.		137,142		5,167,511
FirstEnergy Corp.		378,330		16,703,269
PPL Corp.		929,173		25,858,885
				47,729,665
Electrical Components & Equipment–0.79%
Emerson Electric Co.		276,777		15,568,706
General Merchandise Stores–0.59%
Target Corp.		249,090		11,684,812
Health Care Distributors–1.02%
Cardinal Health, Inc.		445,416		20,230,795
Home Improvement Retail–1.67%
Home Depot, Inc. (The)		472,740		17,122,643
Lowe’s Cos., Inc.		686,444		16,001,009
				33,123,652
Household Products–0.32%
Procter & Gamble Co. (The)		100,077		6,361,895
Hypermarkets & Super Centers–0.97%
Wal-Mart Stores, Inc.		363,051		19,292,530
Industrial Conglomerates–2.12%
General Electric Co.		1,386,411		26,147,711
Textron Inc.		675,518		15,948,980
				42,096,691
Industrial Machinery–1.56%
Ingersoll-Rand PLC (Ireland)		682,431		30,989,192
Integrated Oil & Gas–6.15%
BP PLC–ADR (United Kingdom)		595,284		26,365,128
Chevron Corp.		433,519		44,583,094
Royal Dutch Shell PLC–ADR (United Kingdom)		512,454		36,450,853
Total S.A.–ADR (France)		250,840		14,508,586
				121,907,661
Integrated Telecommunication Services–2.78%
AT&T Inc.		791,208		24,851,843
Verizon Communications Inc.		812,773		30,259,539
				55,111,382
Internet Software & Services–3.44%
eBay Inc.(b)		1,163,868		37,558,020
Yahoo! Inc.(b)		2,037,870		30,649,565
				68,207,585
Investment Banking & Brokerage–2.07%
Goldman Sachs Group, Inc. (The)		154,689		20,587,559
Morgan Stanley		886,195		20,391,347
				40,978,906

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

Invesco Van Kampen V.I. Comstock Fund

	Shares		Value
IT Consulting & Other Services–0.10%
Accenture PLC–Class A (Ireland)		32,725	$	1,977,245
Life & Health Insurance–2.47%
Aflac, Inc.		152,674		7,126,822
MetLife, Inc.		631,559		27,706,494
Torchmark Corp.		221,322		14,195,593
				49,028,909
Managed Health Care–2.67%
UnitedHealth Group, Inc.		704,729		36,349,922
WellPoint Inc.		209,317		16,487,900
				52,837,822
Movies & Entertainment–5.30%
News Corp.–Class B		1,562,235		28,245,209
Time Warner Inc.		651,771		23,704,911
Viacom Inc.–Class B		1,039,828		53,031,228
				104,981,348
Multi-Utilities–0.20%
Sempra Energy		73,415		3,882,185
Oil & Gas Drilling–0.53%
Noble Corp.		267,452		10,540,283
Oil & Gas Equipment & Services–4.29%
Halliburton Co.		1,078,661		55,011,711
Weatherford International Ltd.(b)		1,602,828		30,053,025
				85,064,736
Oil & Gas Exploration & Production–0.62%
Chesapeake Energy Corp.		410,988		12,202,234
Other Diversified Financial Services–6.75%
Bank of America Corp.		2,716,933		29,777,586
Citigroup Inc.		1,205,530		50,198,269
JPMorgan Chase & Co.		1,311,266		53,683,230
				133,659,085
Packaged Foods & Meats–4.41%
Kraft Foods Inc.–Class A		1,323,607		46,630,675
Unilever N.V.–New York Shares (Netherlands)		1,240,256		40,742,409
				87,373,084
Paper Products–2.93%
International Paper Co.		1,948,588		58,106,894
Personal Products–0.44%
Avon Products, Inc.		310,348		8,689,744
Pharmaceuticals–8.72%
Abbott Laboratories		189,705		9,982,277
Bristol-Myers Squibb Co.		1,446,958		41,903,904
GlaxoSmithKline PLC–ADR (United Kingdom)		491,963		21,105,213
Merck & Co., Inc.		911,754		32,175,798
Pfizer Inc.		2,588,600		53,325,160
Roche Holding AG–ADR (Switzerland)		340,186		14,211,440
				172,703,792
Property & Casualty Insurance–3.36%
Allstate Corp. (The)		1,158,940		35,382,438
Chubb Corp. (The)		351,945		22,035,276
Travelers Cos., Inc. (The)		155,741		9,092,160
				66,509,874
Regional Banks–1.50%
Fifth Third Bancorp		311,815		3,975,641
PNC Financial Services Group, Inc.		431,663		25,731,432
				29,707,073
Semiconductor Equipment–0.32%
KLA-Tencor Corp.		154,674		6,261,204
Semiconductors–0.62%
Intel Corp.		553,846		12,273,227
Soft Drinks–1.42%
Coca-Cola Co. (The)		284,077		19,115,541
PepsiCo, Inc.		129,128		9,094,485
				28,210,026
Specialty Stores–0.73%
Staples, Inc.		911,978		14,409,252
Systems Software–2.12%
Microsoft Corp.		1,614,577		41,979,002
Wireless Telecommunication Services–0.86%
Vodafone Group PLC–ADR (United Kingdom)		640,564		17,115,870
Total Common Stocks & Other Equity Interests (Cost $1,922,467,308)				1,921,135,553
Money Market Funds–2.67%
Liquid Assets Portfolio–Institutional Class(c)		26,502,265		26,502,265
Premier Portfolio–Institutional Class(c)		26,502,265		26,502,265
Total Money Market Funds (Cost $53,004,530)				53,004,530
TOTAL INVESTMENTS–99.63% (Cost $1,975,471,838)				1,974,140,083
OTHER ASSETS LESS LIABILITIES–0.37%				7,262,657
NET ASSETS–100.00%			$	1,981,402,740

Investment Abbreviations:

ADR – American Depositary Receipt

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

Invesco Van Kampen V.I. Comstock Fund

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	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, 2011

Financials	20.3	%
Consumer Discretionary	16.1
Health Care	12.4
Energy	11.6
Information Technology	11.2
Consumer Staples	9.2
Industrials	5.7
Materials	4.3
Telecommunication Services	3.6
Utilities	2.6
Money Market Funds Plus Other Assets Less Liabilities	3.0

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

Invesco Van Kampen V.I. Comstock Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $1,922,467,308)	$	1,921,135,553
Investments in affiliated money market funds, at value and cost		53,004,530
Total investments, at value (Cost $1,975,471,838)		1,974,140,083
Receivable for:
Investments sold		14,390,308
Fund shares sold		1,617,826
Dividends		3,925,081
Fund expenses absorbed		83,135
Investments for trustee deferred compensation and retirement plans		4,664
Other assets		137
Total assets		1,994,161,234
Liabilities:
Payable for:
Investments purchased		7,434,555
Fund shares reacquired		1,062,965
Accrued fees to affiliates		4,175,474
Accrued other operating expenses		61,732
Trustee deferred compensation and retirement plans		23,768
Total liabilities		12,758,494
Net assets applicable to shares outstanding	$	1,981,402,740
Net assets consist of:
Shares of beneficial interest	$	2,477,973,318
Undistributed net investment income		13,801,057
Undistributed net realized gain (loss)		(509,039,880	)
Unrealized appreciation (depreciation)		(1,331,755	)
	$	1,981,402,740
Net Assets:
Series I	$	304,490,842
Series II	$	1,676,911,898
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		24,979,265
Series II		137,885,716
Series I:
Net asset value per share	$	12.19
Series II:
Net asset value per share	$	12.16

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $376,685)	$	22,029,166
Dividends from affiliated money market funds		40,780
Total investment income		22,069,946
Expenses:
Advisory fees		5,498,512
Administrative services fees		2,650,081
Distribution fees — Series II		2,108,444
Transfer agent fees		15,039
Trustees’ and officers’ fees and benefits		37,736
Other		(534,328	)
Total expenses		9,775,484
Less: Fees waived		(1,665,981	)
Net expenses		8,109,503
Net investment income		13,960,443
Net realized gain from investment securities (includes net gains from securities sold to affiliates of $1,332,073)		50,163,736
Change in net unrealized appreciation of investment securities		41,748,891
Net realized and unrealized gain		91,912,627
Net increase in net assets resulting from operations	$	105,873,070

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

Invesco Van Kampen V.I. Comstock Fund

Statement of Changes in Net Assets

For the six month ended June 30, 2011 and the year ended December 31, 2010

(Unaudited)

	2011			2010
Operations:
Net investment income	$	13,960,443		$	26,130,323
Net realized gain		50,163,736			53,876,954
Change in net unrealized appreciation		41,748,891			169,893,792
Net increase in net assets resulting from operations		105,873,070			249,901,069
Distributions to shareholders from net investment income:
Series I		(4,436,682	)		(193,186	)
Series II		(21,508,918	)		(2,889,112	)
Total distributions from net investment income		(25,945,600	)		(3,082,298	)
Share transactions–net:
Series I		71,786,212			53,459,524
Series II		(58,416,742	)		(725,552,245	)
Net increase (decrease) in net assets resulting from share transactions		13,369,470			(672,092,721	)
Net increase (decrease) in net assets		93,296,940			(425,273,950	)
Net assets:
Beginning of period		1,888,105,800			2,313,379,750
End of period (includes undistributed net investment income of $13,801,057 and $25,786,214, respectively)	$	1,981,402,740		$	1,888,105,800

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Comstock Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 seek capital growth and income through investments in equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks.

  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 Van Kampen V.I. Comstock 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 Van Kampen V.I. Comstock Fund

G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 Daily Net Assets	Rate
First $500 million		0	.60%
Over $500 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 Canada Ltd. (formerly 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(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.62% and Series II shares to 0.87% 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 total annual operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $1,665,981.

  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, 2011, Invesco was paid $206,377 for accounting and fund administrative services and reimbursed $2,443,704 for services provided by insurance companies.

Invesco Van Kampen V.I. Comstock 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	1,959,928,643	$	14,211,440	$	—	$	1,974,140,083

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, 2011, the Fund engaged in securities purchases of $2,950,607 and securities sales of $3,290,556, which resulted in net realized gains (losses) of $1,332,073.

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, 2011, the Fund paid legal fees of $1,986 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 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

Invesco Van Kampen V.I. Comstock Fund

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 utilized $49,021,247 of capital loss carryforward in the prior period to offset net realized capital gain for federal income tax purposes. The Fund had a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	208,187,062
December 31, 2017		341,097,829
Total capital loss carryforward	$	549,284,891

*  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 2, 2011, the date the reorganization of Invesco Van Kampen V.I. Value Fund into the Fund and realized on securities held in that fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2011 was $295,786,509 and $271,027,272, 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	$	186,468,277
Aggregate unrealized (depreciation) of investment securities		(197,842,254	)
Net unrealized depreciation of investment securities	$	(11,373,977	)
Cost of investments for tax purposes is $1,985,514,060.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		5,753,324		$	69,093,953			7,436,847		$	85,067,642
Series II		3,461,850			41,926,632			7,860,095			81,647,180
Issued as reinvestment of dividends:
Series I		363,662			4,436,682			18,487			193,186
Series II		1,767,372			21,508,918			277,000			2,889,112
Issued in connection with acquisitions(b):
Series I		2,033,402			25,661,404			—			—
Series II		1,023			12,889			—			—
Reacquired:
Series I		(2,245,339	)		(27,405,827	)		(3,029,626	)		(31,801,304	)
Series II		(10,041,440	)		(121,865,181	)		(79,919,957	)		(810,088,537	)
Net increase (decrease) in share activity		1,093,854		$	13,369,470			(67,357,154	)	$	(672,092,721	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 73% 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

Invesco Van Kampen V.I. Comstock Fund

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 portion of the shares owned of record by these entities are also owned beneficially.

(b)

As of the opening of business on May 2, 2011, the Fund acquired all of the net assets of Invesco Van Kampen V.I. Value Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Van Kampen V.I. Value Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 2,034,425 shares of the Fund for 2,471,069 shares outstanding of Invesco Van Kampen V.I. Value Fund as of the close of business on April 29, 2011. Class I and Class II shares of Invesco Van Kampen V.I. Value Fund were exchanged for Class I and Class II shares of the Fund, respectively, based on the relative net asset vale of Invesco Van Kampen V.I. Value Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco Van Kampen V.I. Value Fund’s net assets at that date of $25,674,293, including $4,451,624 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $2,060,987,398. The net assets of the Fund immediately following the acquisition were $2,086,661,691.

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			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 to
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		Return			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Series I(f)
Six months ended 06/30/11	$	11.71	$	0.10	$	0.57		$	0.67		$	(0.19	)	$	0		$	(0.19	)	$	12.19		5.70	%(c)	$	304,491		0.61	%(d)		0.78	%(d)		1.64	%(d)		14	%
Year ended 12/31/10		10.11		0.17		1.44			1.61			(0.01	)		0			(0.01	)		11.71		15.98	(c)		223,354		0.61			0.73			1.58			21
Year ended 12/31/09		8.25		0.16		2.12			2.28			(0.42	)		0			(0.42	)		10.11		28.78			148,060		0.62			0.62			1.91			27
Year ended 12/31/08		13.86		0.26		(4.93	)		(4.67	)		(0.30	)		(0.64	)		(0.94	)		8.25		(35.67	)		192,548		0.60			0.60			2.38			38
Year ended 12/31/07		14.75		0.30		(0.60	)		(0.30	)		(0.26	)		(0.33	)		(0.59	)		13.86		(2.04	)		309,646		0.59			0.59			2.03			25
Year ended 12/31/06		13.69		0.30		1.81			2.11			(0.21	)		(0.84	)		(1.05	)		14.75		16.28			400,662		0.59			0.59			2.17			27
Series II(f)
Six months ended 06/30/11		11.67		0.08		0.57			0.65			(0.16	)		0			(0.16	)		12.16		5.53	(c)		1,676,912		0.86	(d)		1.03	(d)		1.39	(d)		14
Year ended 12/31/10		10.10		0.14		1.44			1.58			(0.01	)		0			(0.01	)		11.67		15.70	(c)		1,664,751		0.86			0.98			1.32			21
Year ended 12/31/09		8.22		0.14		2.11			2.25			(0.37	)		0			(0.37	)		10.10		28.41	(e)		2,165,319		0.87			0.87			1.63			27
Year ended 12/31/08		13.80		0.23		(4.91	)		(4.68	)		(0.26	)		(0.64	)		(0.90	)		8.22		(35.80	)(e)		2,268,812		0.85			0.85			2.13			38
Year ended 12/31/07		14.70		0.26		(0.59	)		(0.33	)		(0.24	)		(0.33	)		(0.57	)		13.80		(2.33	)(e)		3,521,509		0.84			0.84			1.78			25
Year ended 12/31/06		13.65		0.26		1.81			2.07			(0.18	)		(0.84	)		(1.02	)		14.70		16.04	(e)		3,440,800		0.84			0.84			1.91			27

(a)	Calculated using average shares outstanding.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ended June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $21,084,025 and sold of $3,578,203 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Van Kampen V.I. Value Fund into the Fund.
(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 do not reflect charges assessed in connection with a variable product, which if included would reduce total returns 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 $269,840 and $1,700,734 for Series I and Series II shares, respectively.
(e)	These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.
(f)	On June 1, 2010, the Class I and Class II shares of the predecessor fund were reorganized into Series I and Series II shares of the Fund, respectively.

Invesco Van Kampen V.I. Comstock 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,057.00	$	3.11	$	1,021.77	$	3.06		0.61	%
Series II		1,000.00		1,055.30		4.38		1,020.53		4.31		0.86

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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. Comstock 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 Van Kampen V.I. Comstock 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Large Cap Value Funds Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of the performance universe for the one and three year periods 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

Invesco Van Kampen V.I. Comstock Fund

funds). The Board noted that 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rate of two mutual funds with comparable investment strategies and below the total account level fee of eight mutual funds sub-advised by Invesco Advisers with comparable investment strategies. The Board did not consider a comparison of fees to an off-shore fund to be apt as the fee includes more than the advisory fees.

  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 solely for investment management services. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts. These additional services include 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 for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. 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 often more comparable. The Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from those provided to institutional clients, and the Board 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco Van Kampen V.I. Equity and Income Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.14	%
Series II Shares	4.10
Russell 1000 Value Index▼(Broad Market Index)	5.92
Barclays Capital U.S. Government/Credit Index▼(Style-Specific Index)	2.61
▼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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Effective June 1, 2010, Class II shares of the predecessor fund, Universal Institutional Funds Equity and Income Portfolio, advised by Morgan Stanley Investment Management Inc. 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 0.70% and 0.75%, 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 0.71% and 0.96%, 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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception			7.51	%
	5	Years	4.72
	1	Year	22.33
Series II Shares
Inception (4/30/03)			7.49	%
	5	Years	4.69
	1	Year	22.19

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, 2012. See current prospectus for more information
2	Total annual Fund operating expenses after any contractual fee waivers by the distributor 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, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–63.95%
Agricultural Products–0.23%
Archer-Daniels-Midland Co.		74,256	$	2,238,818
Air Freight & Logistics–0.43%
FedEx Corp.		43,876		4,161,639
Asset Management & Custody Banks–1.25%
Northern Trust Corp.		109,587		5,036,618
State Street Corp.		156,741		7,067,452
				12,104,070
Automobile Manufacturers–0.14%
Ford Motor Co.(b)		48,000		661,920
General Motors Co.(b)		21,351		648,216
				1,310,136
Cable & Satellite–2.28%
Comcast Corp.–Class A		493,788		12,512,588
Time Warner Cable, Inc.		121,198		9,458,292
				21,970,880
Communications Equipment–0.23%
Cisco Systems, Inc.		141,689		2,211,765
Computer Hardware–1.92%
Dell, Inc.(b)		510,812		8,515,236
Hewlett-Packard Co.		275,455		10,026,562
				18,541,798
Consumer Electronics–0.62%
Sony Corp.–ADR (Japan)		224,744		5,930,994
Data Processing & Outsourced Services–0.74%
Western Union Co.		356,946		7,149,628
Diversified Banks–0.98%
U.S. Bancorp		159,301		4,063,769
Wells Fargo & Co.		192,966		5,414,626
				9,478,395
Diversified Chemicals–0.85%
Dow Chemical Co. (The)		55,205		1,987,380
PPG Industries, Inc.		68,871		6,252,798
				8,240,178
Diversified Support Services–0.40%
Cintas Corp.		117,734		3,888,754
Drug Retail–0.85%
Walgreen Co.		193,532		8,217,369
Electric Utilities–2.60%
American Electric Power Co., Inc.		333,017		12,548,080
Edison International		98,436		3,814,395
Entergy Corp.		52,564		3,589,070
FirstEnergy Corp.		115,858		5,115,131
				25,066,676
Food Distributors–0.78%
Sysco Corp.		242,569		7,563,302
Health Care Distributors–0.49%
Cardinal Health, Inc.		104,253		4,735,171
Health Care Equipment–0.67%
Medtronic, Inc.		167,458		6,452,157
Health Care Facilities–0.39%
HCA Holdings, Inc.(b)		113,537		3,746,721
Home Improvement Retail–0.93%
Home Depot, Inc. (The)		246,619		8,932,540
Household Products–1.68%
Energizer Holdings, Inc.(b)		34,958		2,529,561
Procter & Gamble Co. (The)		214,379		13,628,073
				16,157,634
Human Resource & Employment Services–0.61%
Manpower Inc.		60,080		3,223,292
Robert Half International, Inc.		99,856		2,699,108
				5,922,400
Industrial Conglomerates–3.67%
General Electric Co.		1,364,386		25,732,320
Tyco International Ltd.		195,086		9,643,101
				35,375,421
Industrial Machinery–0.72%
Ingersoll-Rand PLC (Ireland)		152,527		6,926,251
Insurance Brokers–2.01%
Marsh & McLennan Cos., Inc.		622,526		19,416,586
Integrated Oil & Gas–4.28%
ConocoPhillips		55,057		4,139,736
Exxon Mobil Corp.		88,988		7,241,843
Hess Corp.		139,739		10,446,888
Occidental Petroleum Corp.		65,115		6,774,565
Royal Dutch Shell PLC–ADR (United Kingdom)		178,781		12,716,692
				41,319,724

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
Integrated Telecommunication Services–0.75%
Verizon Communications Inc.		193,027	$	7,186,395
Internet Software & Services–2.15%
eBay Inc.(b)		447,327		14,435,242
Yahoo! Inc.(b)		419,628		6,311,205
				20,746,447
Investment Banking & Brokerage–1.88%
Charles Schwab Corp. (The)		529,023		8,702,428
Morgan Stanley		409,359		9,419,351
				18,121,779
IT Consulting & Other Services–0.62%
Amdocs Ltd.(b)		197,874		6,013,391
Life & Health Insurance–0.51%
Principal Financial Group, Inc.		160,522		4,883,079
Managed Health Care–1.66%
UnitedHealth Group, Inc.		310,234		16,001,870
Movies & Entertainment–2.69%
Time Warner Inc.		298,426		10,853,754
Viacom Inc.–Class B		296,681		15,130,731
				25,984,485
Office Services & Supplies–0.59%
Avery Dennison Corp.		148,222		5,725,816
Oil & Gas Equipment & Services–1.62%
Baker Hughes Inc.		59,249		4,299,107
Cameron International Corp.(b)		47,834		2,405,572
Schlumberger Ltd.		103,260		8,921,664
				15,626,343
Oil & Gas Exploration & Production–2.43%
Anadarko Petroleum Corp.		206,867		15,879,111
Devon Energy Corp.		80,556		6,348,618
Noble Energy, Inc.		13,779		1,235,012
				23,462,741
Oil & Gas Storage & Transportation–0.35%
Williams Cos., Inc. (The)		112,512		3,403,488
Other Diversified Financial Services–5.35%
Bank of America Corp.		883,565		9,683,872
Citigroup Inc.		315,552		13,139,585
JPMorgan Chase & Co.		702,476		28,759,368
				51,582,825
Packaged Foods & Meats–1.87%
Kraft Foods Inc.–Class A		278,344		9,806,059
Unilever N.V.–New York Shares (Netherlands)		251,504		8,261,907
				18,067,966
Personal Products–1.08%
Avon Products, Inc.		371,520		10,402,560
Pharmaceuticals–4.05%
Abbott Laboratories		82,077		4,318,892
Bristol-Myers Squibb Co.		368,316		10,666,431
Merck & Co., Inc.		233,059		8,224,652
Pfizer Inc.		769,172		15,844,943
				39,054,918
Property & Casualty Insurance–0.48%
Chubb Corp. (The)		74,556		4,667,951
Regional Banks–2.47%
BB&T Corp.		184,340		4,947,685
Fifth Third Bancorp		254,837		3,249,172
PNC Financial Services Group, Inc.		186,616		11,124,180
Regions Financial Corp.		734,833		4,555,965
				23,877,002
Semiconductors–0.52%
Intel Corp.		226,492		5,019,063
Soft Drinks–0.86%
Coca-Cola Co. (The)		99,033		6,663,931
Coca-Cola Enterprises, Inc.		56,908		1,660,575
				8,324,506
Systems Software–1.19%
Microsoft Corp.		442,596		11,507,496
Wireless Telecommunication Services–1.08%
Vodafone Group PLC–ADR (United Kingdom)		390,287		10,428,469
Total Common Stocks & Other Equity Interests (Cost $534,249,650)				617,147,597
	Principal
	Amount
Bonds & Notes–19.72%
Advertising–0.38%
Interpublic Group of Cos., Inc. (The), Sr. Unsec. Conv. Global Notes, 4.25%, 03/15/12(c)	$	1,805,000		2,073,494
4.75%, 03/15/23(c)		1,148,000		1,457,960
WPP Finance (United Kingdom), Sr. Unsec. Gtd. Global Notes, 8.00%, 09/15/14		100,000		117,276
				3,648,730
Aerospace & Defense–0.02%
Raytheon Co., Sr. Unsec. Notes, 1.63%, 10/15/15		185,000		181,275

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
Agricultural Products–0.03%
Corn Products International, Inc., Sr. Unsec. Notes, 6.63%, 04/15/37	$	255,000	$	277,739
Airlines–0.07%
Continental Airlines, Inc.,–Series 2010-1, Class A, Sec. Pass Through Ctfs., 4.75%, 01/12/21		315,000		306,928
Delta Air Lines, Inc., Series 2001-1, Class A-2, Sr. Sec. Pass Through Ctfs., 7.11%, 09/18/11		100,000		100,750
Series 2010-1, Class A, Sec. Pass Through Ctfs., 6.20%, 07/02/18		247,073		258,346
				666,024
Alternative Carriers–0.32%
TW Telecom, Inc., Sr. Unsec. Conv. Deb., 2.38%, 04/01/13(c)		2,487,000		3,062,119
Application Software–0.11%
Adobe Systems, Inc., Sr. Unsec. Global Notes, 4.75%, 02/01/20		185,000		190,711
Cadence Design Systems, Inc.,–Series B, Sr. Unsec. Conv. Global Notes, 1.50%, 12/15/13		860,000		836,350
				1,027,061
Asset Management & Custody Banks–0.48%
Affiliated Managers Group, Inc., Sr. Unsec. Conv. Notes, 3.95%, 08/15/13(c)		2,511,000		2,799,765
Janus Capital Group, Inc., Sr. Unsec. Conv. Notes, 3.25%, 07/15/14		1,721,000		1,871,587
				4,671,352
Automobile Manufacturers–0.02%
Daimler Finance North America LLC, Unsec. Gtd. Unsub. Global Notes, 7.30%, 01/15/12		190,000		196,714
Automotive Retail–0.14%
Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20		585,000		622,557
AutoZone, Inc., Sr. Unsec. Global Notes, 6.50%, 01/15/14		395,000		441,504
Sr. Unsec. Notes, 5.88%, 10/15/12		60,000		63,620
O’Reilly Automotive, Inc., Sr. Unsec. Gtd. Notes, 4.88%, 01/14/21		265,000		266,730
				1,394,411
Biotechnology–1.67%
Cephalon, Inc., Sr. Unsec. Conv. Sub. Notes, 2.50%, 05/01/14		3,165,000		3,892,950
Dendreon Corp., Sr. Unsec. Conv. Notes, 2.88%, 01/15/16		4,342,000		4,792,482
Gilead Sciences, Inc.,–Series D, Sr. Conv. Notes, 1.63%, 05/01/16(d)		6,360,000		7,401,450
				16,086,882
Brewers–0.09%
Anheuser-Busch InBev Worldwide, Inc., Sr. Unsec. Gtd. Global Notes, 3.63%, 04/15/15		395,000		418,122
5.38%, 01/15/20		50,000		55,316
FBG Financial Ltd. (Australia), Sr. Unsec. Gtd. Notes, 5.13%, 06/15/15(d)		325,000		350,016
				823,454
Broadcasting–0.01%
COX Communications Inc., Sr. Unsec. Bonds, 8.38%, 03/01/39(d)		80,000		104,960
Sr. Unsec. Global Notes, 5.45%, 12/15/14		20,000		22,318
				127,278
Cable & Satellite–0.18%
Comcast Corp., Sr. Unsec. Gtd. Global Notes, 5.70%, 05/15/18		445,000		496,914
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 05/15/16		475,000		516,860
Time Warner Cable Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 02/14/19		215,000		274,172
Sr. Unsec. Gtd. Notes, 5.88%, 11/15/40		470,000		466,184
				1,754,130
Casinos & Gaming–0.86%
International Game Technology, Sr. Unsec. Conv. Notes, 3.25%, 05/01/14		3,656,000		4,378,060
MGM Resorts International, Sr. Unsec. Gtd. Conv. Notes, 4.25%, 04/15/15		3,571,000		3,874,535
				8,252,595
Communications Equipment–0.96%
Alcatel-Lucent USA, Inc.,–Series B, Sr. Unsec. Gtd. Conv. Notes, 2.88%, 06/15/13(c)		6,444,000		6,315,120
JDS Uniphase Corp., Sr. Unsec. Conv. Notes, 1.00%, 05/15/13(c)		1,624,000		1,666,630
1.00%, 05/15/13(c)(d)		1,100,000		1,128,875
Juniper Networks, Inc., Sr. Unsec. Notes, 4.60%, 03/15/21		120,000		123,193
				9,233,818
Computer & Electronics Retail–0.04%
Best Buy Co., Inc., Sr. Unsec. Notes, 5.50%, 03/15/21		420,000		414,178
Computer Storage & Peripherals–0.80%
SanDisk Corp., Sr. Unsec. Conv. Notes, 1.00%, 05/15/13		7,906,000		7,678,702
Construction Materials–0.59%
Cemex S.A.B. de C.V. (Mexico), Unsec. Sub. Conv. Notes, 4.88%, 03/15/15		3,900,000		3,885,375
3.75%, 03/15/18(d)		1,800,000		1,791,000
				5,676,375

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
Consumer Finance–0.01%
American Express Credit Corp.–Series C, Sr. Unsec. Medium-Term Global Notes, 7.30%, 08/20/13	$	35,000	$	39,015
Capital One Financial Corp., Sr. Unsec. Notes, 6.75%, 09/15/17		50,000		57,858
				96,873
Department Stores–0.04%
Macy’s Retail Holdings Inc., Sr. Unsec. Gtd. Notes, 5.35%, 03/15/12		400,000		410,000
Diversified Banks–1.24%
Abbey National Treasury Services PLC (United Kingdom), Gtd. Global Notes, 2.88%, 04/25/14		155,000		155,531
Sr. Unsec. Gtd. Global Notes, 4.00%, 04/27/16		230,000		228,155
Sr. Unsec. Gtd. Notes, 3.88%, 11/10/14(d)		310,000		316,619
Ally Financial, Inc., Gtd. Notes, 2.20%, 12/19/12		550,000		564,125
Bank of Nova Scotia (Canada), Sr. Unsec. Global Notes, 2.38%, 12/17/13		395,000		405,757
Barclays Bank PLC (United Kingdom), Sr. Unsec. Global Notes, 6.75%, 05/22/19		510,000		573,772
5.13%, 01/08/20		60,000		60,256
Unsec. Sub. Global Notes, 5.14%, 10/14/20		275,000		259,221
Commonwealth Bank of Australia (Australia), Sr. Unsec. Notes, 5.00%, 10/15/19(d)		320,000		335,800
Credit Suisse AG (Switzerland), Sub. Global Notes, 5.40%, 01/14/20		560,000		565,614
Unsec. Sub. Global Notes, 6.00%, 02/15/18		75,000		81,093
Danske Bank A/S (Denmark), Sr. Unsec. Notes, 3.88%, 04/14/16(d)		565,000		581,869
Groupe BPCE S.A. (France), Sr. Unsec. Notes, 2.38%, 10/04/13(d)		390,000		390,756
HBOS PLC (United Kingdom)–Series G, Unsec. Sub. Medium-Term Notes, 6.75%, 05/21/18(d)		325,000		314,312
HSBC Bank PLC (United Kingdom), Sr. Notes, 4.13%, 08/12/20(d)		565,000		549,036
HSBC Finance Corp., Sr. Unsec. Global Notes, 7.00%, 05/15/12		470,000		495,111
Korea Development Bank (South Korea), Sr. Unsec. Gtd. Global Notes, 4.38%, 08/10/15		200,000		210,027
Lloyds TSB Bank PLC (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 01/21/16		665,000		680,026
Sr. Unsec. Gtd. Medium-Term Notes, 5.80%, 01/13/20(d)		185,000		181,234
National Australia Bank Ltd. (Australia), Sr. Unsec. Bonds, 3.75%, 03/02/15(d)		190,000		197,969
Nordea Bank AB (Sweden), Sr. Notes, 4.88%, 01/27/20(d)		245,000		257,221
Rabobank Nederland N.V. (Netherlands), Sr. Unsec. Medium-Term Notes, 4.75%, 01/15/20(d)		490,000		511,451
Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15		445,000		462,099
Santander U.S. Debt S.A. Unipersonal (Spain), Sr. Unsec. Gtd. Notes, 3.72%, 01/20/15(d)		200,000		196,703
Societe Generale (France), Sr. Unsec. Notes, 2.50%, 01/15/14(d)		705,000		706,000
Standard Chartered Bank (United Kingdom), Unsec. Sub. Notes, 6.40%, 09/26/17(d)		100,000		110,389
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 5.50%, 11/18/14(d)		100,000		110,127
3.85%, 04/27/15(d)		255,000		264,828
U.S. Bancorp., Sr. Unsec. Notes, 2.00%, 06/14/13		530,000		540,970
U.S. Bank N.A., Sub. Variable Rate Notes, 3.78%, 04/29/20(e)		450,000		466,439
Wells Fargo & Co., Sr. Unsec. Global Notes, 3.63%, 04/15/15		50,000		52,094
Sr. Unsec. Notes, 5.63%, 12/11/17		580,000		644,397
Westpac Banking Corp. (Australia), Sr. Unsec. Global Notes, 2.10%, 08/02/13		440,000		445,979
				11,914,980
Diversified Capital Markets–0.05%
Credit Suisse New York (Switzerland), Sr. Unsec. Medium-Term Global Notes, 5.30%, 08/13/19		170,000		181,356
UBS AG (Switzerland), Sr. Unsec. Medium-Tem Loan Global Notes, 5.88%, 12/20/17		250,000		274,499
				455,855
Diversified Metals & Mining–0.11%
Anglo American Capital PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 9.38%, 04/08/19(d)		200,000		266,220
Freeport-McMoRan Copper & Gold, Inc., Sr. Unsec. Notes, 8.38%, 04/01/17		350,000		382,594
Rio Tinto Finance USA Ltd. (Australia), Sr. Unsec. Gtd. Global Notes, 9.00%, 05/01/19		295,000		391,389
Southern Copper Corp., Sr. Unsec. Global Notes, 5.38%, 04/16/20		5,000		5,141
6.75%, 04/16/40		10,000		9,820
				1,055,164
Diversified Real Estate Activities–0.00%
Brookfield Asset Management, Inc. (Canada), Sr. Unsec. Notes, 7.13%, 06/15/12		20,000		21,081
Diversified REIT’s–0.12%
Dexus Diversified Trust/Dexus Office Trust (Australia), Sr. Unsec. Gtd. Notes, 5.60%, 03/15/21(d)		1,155,000		1,179,268
Diversified Support Services–0.05%
Cintas Corp. No. 2, Sr. Unsec. Gtd. Notes, 2.85%, 06/01/16		520,000		524,842

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–0.05%
CVS Caremark Corp., Sec. Global Pass-Through Ctfs., 6.04%, 12/10/28	$	385,676	$	414,303
Sec. Pass Through Ctfs., 8.35%, 07/10/31(d)		33,834		40,754
				455,057
Electric Utilities–0.11%
Electricite de France S.A. (France), Sr. Unsec. Notes, 4.60%, 01/27/20(d)		150,000		155,744
Enel Finance International N.V. (Luxembourg), Sr. Unsec. Gtd. Notes, 5.13%, 10/07/19(d)		425,000		430,620
Iberdola Finance Ireland Ltd. (Ireland), Unsec. Gtd. Unsub. Notes, 3.80%, 09/11/14(d)		200,000		204,546
Ohio Power Co.–Series M, Sr. Unsec. Notes, 5.38%, 10/01/21		200,000		216,187
PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39		50,000		56,492
Virginia Electric & Power Co., Sr. Unsec. Notes, 5.00%, 06/30/19		15,000		16,300
				1,079,889
Electronic Components–0.01%
Corning, Inc., Sr. Unsec. Notes, 6.63%, 05/15/19		35,000		40,874
7.25%, 08/15/36		60,000		69,247
				110,121
Environmental & Facilities Services–0.05%
Waste Management, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/14		395,000		430,042
Food Retail–0.07%
Delhaize Group S.A. (Belgium), Sr. Unsec. Gtd. Bonds, 5.88%, 02/01/14		180,000		197,641
Safeway, Inc., Sr. Unsec. Global Notes, 3.95%, 08/15/20		500,000		488,117
				685,758
General Merchandise Stores–0.04%
Family Dollar Stores, Inc., Sr. Unsec. Notes, 5.00%, 02/01/21		435,000		425,704
Gold–0.11%
Barrick Gold Corp. (Canada), Sr. Unsec. Notes, 2.90%, 05/30/16(d)		425,000		427,208
Gold Fields Orogen Holding BVI Ltd. (Mali), Sr. Unsec. Gtd. Notes, 4.88%, 10/07/20(d)		665,000		635,080
				1,062,288
Health Care Equipment–0.69%
CareFusion Corp., Sr. Unsec. Global Notes, 4.13%, 08/01/12		330,000		340,457
Kinetic Concepts, Inc., Sr. Unsec. Gtd. Conv. Notes, 3.25%, 04/15/15(d)		1,818,000		2,329,313
NuVasive Inc., Sr. Unsec. Conv. Notes, 2.75%, 07/01/17		1,104,000		1,121,940
Teleflex, Inc., Sr. Unsec. Sub. Conv. Notes, 3.88%, 08/01/17		2,472,000		2,861,340
				6,653,050
Health Care Facilities–0.46%
Lifepoint Hospitals, Inc., Sr. Unsec. Sub. Conv. Notes, 3.50%, 05/15/14		4,141,000		4,451,575
Health Care Services–0.38%
Express Scripts, Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 06/15/12		925,000		960,697
6.25%, 06/15/14		70,000		78,624
Sr. Unsec. Gtd. Notes, 3.13%, 05/15/16		300,000		301,876
Medco Health Solutions, Inc., Sr. Unsec. Notes, 2.75%, 09/15/15		220,000		221,566
Omnicare, Inc., Sr. Conv. Sub. Notes, 3.75%, 12/15/25		971,000		1,299,926
Series OCR, Sr. Unsec. Gtd. Conv. Deb., 3.25%, 12/15/15(c)		863,000		829,559
				3,692,248
Hotels, Resorts & Cruise Lines–0.66%
Gaylord Entertainment Co., Sr. Gtd. Conv. Notes, 3.75%, 10/01/14(d)		2,778,000		3,541,950
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15(d)		70,000		73,949
Starwood Hotels & Resorts Worldwide, Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 05/01/12		2,000,000		2,105,000
Wyndham Worldwide Corp., Sr. Unsec. Notes,
7.38%, 03/01/20		20,000		22,213
5.63%, 03/01/21		580,000		583,625
				6,326,737
Housewares & Specialties–0.06%
Tupperware Brands Corp., Sr. Unsec. Gtd. Notes, 4.75%, 06/01/21(d)		605,000		595,167
Hypermarkets & Super Centers–0.01%
Wal-Mart Stores, Inc., Sr. Unsec. Global Notes, 6.50%, 08/15/37		50,000		57,746
Industrial Conglomerates–0.52%
General Electric Capital Corp., Series G, Sr. Gtd. Medium-Term Global Notes, 2.63%, 12/28/12		3,450,000		3,562,689
Sr. Unsec. Gtd. Medium-Term Global Notes, 2.20%, 06/08/12		80,000		81,427
Sr. Unsec. Medium-Term Notes, 6.00%, 08/07/19		300,000		332,040
General Electric Co., Sr. Unsec. Global Notes, 5.25%, 12/06/17		485,000		539,253
Koninklije Philips Electronics N.V. (Netherlands), Sr. Unsec. Global Notes, 5.75%, 03/11/18		25,000		27,971

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
Industrial Conglomerates–(continued)
NBC Universal Media LLC, Sr. Unsec. Notes, 2.10%, 04/01/14(d)	$	230,000	$	233,396
5.95%, 04/01/41(d)		215,000		216,961
				4,993,737
Industrial Machinery–0.10%
Pentair, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 05/15/21		950,000		952,896
Integrated Oil & Gas–0.03%
Hess Corp., Sr. Unsec. Global Notes, 5.60%, 02/15/41		195,000		191,293
Shell International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Global Notes, 3.10%, 06/28/15		115,000		120,226
				311,519
Integrated Telecommunication Services–0.23%
AT&T Corp., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/15/31		4,000		5,313
AT&T, Inc., Sr. Unsec. Global Notes, 2.50%, 08/15/15		20,000		20,290
6.15%, 09/15/34		140,000		144,012
5.35%, 09/01/40		101,000		95,550
Deutsche Telekom International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Global Bonds, 8.75%, 06/15/30		155,000		204,265
NBC Universal Media LLC, Sr. Unsec. Notes, 5.15%, 04/30/20(d)		175,000		184,936
Telecom Italia Capital S.A. (Luxembourg), Sr. Unsec. Gtd. Global Notes, 7.00%, 06/04/18		360,000		390,195
7.18%, 06/18/19		160,000		172,266
Verizon Communications, Inc., Sr. Unsec. Global Notes, 3.00%, 04/01/16		230,000		235,360
6.35%, 04/01/19		260,000		303,043
8.95%, 03/01/39		300,000		426,568
Windstream Georgia Communications Corp., Sr. Unsec. Notes, 6.50%, 11/15/13		59,000		60,442
				2,242,240
Internet Retail–0.05%
Expedia, Inc., Sr. Unsec. Gtd. Global Notes, 5.95%, 08/15/20		505,000		492,430
Investment Banking & Brokerage–1.22%
Charles Schwab Corp. (The), Sr. Unsec. Notes, 4.45%, 07/22/20		510,000		520,335
Goldman Sachs Group, Inc. (The), Sr. Global Notes, 3.70%, 08/01/15		65,000		66,335
Sr. Unsec. Conv. Medium-Term Notes, 1.00%, 03/15/17(d)		3,328,000		3,250,358
Sr. Unsec. Global Notes, 6.15%, 04/01/18		905,000		985,288
Unsec. Unsub. Global Notes, 6.75%, 10/01/37		385,000		385,482
Jefferies Group, Inc., Sr. Unsec. Conv. Notes, 3.88%, 11/01/17(c)		2,041,200		2,051,406
Sr. Unsec. Notes, 6.88%, 04/15/21		440,000		473,184
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes, 6.00%, 01/14/20(d)		50,000		51,605
MF Global Holdings Ltd., Sr. Unsec. Conv. Notes, 9.00%, 07/01/13(c)		944,000		1,092,680
1.88%, 02/01/16		628,000		625,645
Morgan Stanley, Sr. Unsec. Global Notes, 4.00%, 07/24/15		610,000		621,483
3.80%, 04/29/16		700,000		703,779
Sr. Unsec. Notes, 3.45%, 11/02/15		715,000		714,706
5.75%, 01/25/21		220,000		227,862
				11,770,148
Life & Health Insurance–0.16%
Aegon N.V. (Netherlands), Sr. Unsec. Global Bonds, 4.63%, 12/01/15		275,000		291,290
MetLife, Inc., Sr. Unsec. Global Notes, 4.75%, 02/08/21		410,000		415,990
Monumental Global Funding II, Sr. Sec. Notes, 5.65%, 07/14/11(d)		25,000		25,023
Pacific LifeCorp., Sr. Notes, 6.00%, 02/10/20(d)		215,000		229,634
Prudential Financial, Inc. Series D, Sr. Unsec. Medium-Term Notes, 3.88%, 01/14/15		50,000		52,213
4.75%, 09/17/15		255,000		274,333
7.38%, 06/15/19		105,000		124,398
6.63%, 12/01/37		110,000		118,379
				1,531,260
Life Sciences Tools & Services–0.37%
Life Technologies Corp., Sr. Unsec. Conv. Notes, 1.50%, 02/15/24(c)		3,143,000		3,606,593
Managed Health Care–0.10%
Aetna, Inc., Sr. Unsec. Global Notes, 3.95%, 09/01/20		605,000		596,384
WellPoint, Inc., Sr. Unsec. Notes, 4.35%, 08/15/20		400,000		405,742
				1,002,126
Mortgage Backed Securities–0.01%
U.S. Bank N.A., Sr. Unsec. Medium-Term Notes, 5.92%, 05/25/12		65,825		68,698
Movies & Entertainment–0.32%
Liberty Media LLC, Sr. Unsec. Conv. Notes, 3.13%, 03/30/13(c)		2,467,200		2,957,556
Time Warner, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 11/15/16		130,000		147,877
				3,105,433

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
Multi-Line Insurance–0.04%
CNA Financial Corp., Sr. Unsec. Global Bonds, 5.88%, 08/15/20	$	325,000	$	339,369
Liberty Mutual Group Inc., Sr. Unsec. Notes, 5.75%, 03/15/14(d)		45,000		47,665
				387,034
Multi-Utilities–0.01%
Nisource Finance Corp., Sr. Unsec. Gtd. Bonds, 6.80%, 01/15/19		115,000		132,740
Office Electronics–0.01%
Xerox Corp., Sr. Unsec. Notes, 6.88%, 08/15/11		40,000		40,267
4.25%, 02/15/15		40,000		42,536
				82,803
Office REIT’s–0.04%
Digital Realty Trust L.P., Sr. Unsec. Gtd. Global Notes, 4.50%, 07/15/15		335,000		347,889
5.88%, 02/01/20		45,000		47,510
				395,399
Oil & Gas Equipment & Services–0.13%
Helix Energy Solutions Group, Inc., Sr. Unsec. Conv. Notes, 3.25%, 12/15/12(c)		1,208,000		1,206,490
Oil & Gas Exploration & Production–0.05%
Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 6.88%, 01/20/40		15,000		16,057
Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 5.50%, 01/21/21		395,000		415,155
				431,212
Oil & Gas Storage & Transportation–0.09%
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Global Notes, 5.25%, 01/31/20		115,000		122,608
Sr. Unsec. Gtd. Notes, 6.45%, 09/01/40		25,000		26,664
Series N, Sr. Unsec. Gtd. Notes, 6.50%, 01/31/19		245,000		281,295
Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20		50,000		54,468
7.50%, 09/15/38		120,000		144,764
Texas Eastern Transmission LP, Sr. Unsec. Notes, 7.00%, 07/15/32		185,000		216,434
Transcontinental Gas Pipe Line Co., LLC–Series B, Sr. Unsec. Global Notes, 7.00%, 08/15/11		45,000		45,296
				891,529
Other Diversified Financial Services–1.06%
Bank of America Corp., Sr. Unsec. Global Notes, 5.75%, 12/01/17		975,000		1,037,739
Series L, Sr. Unsec. Global Notes, 7.63%, 06/01/19		70,000		81,262
Sr. Unsec. Medium-Term Global Notes, 5.65%, 05/01/18		280,000		294,990
Bear Stearns Cos., LLC (The), Sr. Unsec. Global Notes, 7.25%, 02/01/18		340,000		403,194
Citibank N.A., Sr. Unsec. Gtd. Notes, 1.75%, 12/28/12		1,500,000		1,530,356
Citigroup Funding, Inc., Unsec. Gtd. Unsub. Global Notes, 2.25%, 12/10/12		3,450,000		3,540,566
Citigroup Inc., Sr. Unsec. Global Notes, 6.01%, 01/15/15		65,000		71,385
6.13%, 11/21/17		495,000		547,508
8.50%, 05/22/19		455,000		562,484
Sr. Unsec. Notes, 4.75%, 05/19/15		75,000		79,403
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 2.75%, 07/01/13(d)		340,000		348,021
General Electric Capital Corp., Sr. Unsec. Global Notes, 5.90%, 05/13/14		75,000		83,289
JPMorgan Chase & Co., Sr. Unsec. Global Notes, 4.75%, 05/01/13		65,000		69,141
4.40%, 07/22/20		400,000		395,391
Sr. Unsec. Notes, 6.00%, 01/15/18		615,000		689,805
Unsec. Sub. Global Notes, 5.13%, 09/15/14		70,000		75,632
Merrill Lynch & Co., Inc., Sr. Unsec. Medium-Term Notes, 6.88%, 04/25/18		410,000		456,021
Twin Reefs Pass-Through Trust, Sec. Floating Rate Pass Through Ctfs., 1.39% (Acquired 12/07/04; Cost $90,000)(d)(f)		90,000		0
				10,266,187
Packaged Foods & Meats–0.11%
Grupo Bimbo S.A.B. de C.V. (Mexico), Sr. Unsec. Gtd. Notes, 4.88%, 06/30/20(d)		270,000		269,511
Kraft Foods, Inc., Sr. Unsec. Global Notes, 5.63%, 11/01/11		4,000		4,066
5.38%, 02/10/20		215,000		235,708
7.00%, 08/11/37		305,000		356,344
Sr. Unsec. Notes, 6.88%, 01/26/39		200,000		231,315
				1,096,944
Paper Packaging–0.01%
Bemis Co. Inc., Sr. Unsec. Notes, 5.65%, 08/01/14		40,000		43,980
Pharmaceuticals–1.13%
Endo Pharmaceuticals Holdings, Inc., Sr. Unsec. Sub. Conv. Notes, 1.75%, 04/15/15		2,398,000		3,504,077
GlaxoSmithKline Capital Inc., Sr. Unsec. Gtd. Global Bonds, 5.65%, 05/15/18		75,000		85,367
6.38%, 05/15/38		70,000		80,841
Merck & Co. Inc., Sr. Unsec. Global Notes, 5.00%, 06/30/19		280,000		309,740
Mylan Labs, Inc., Sr. Unsec. Gtd. Conv. Notes, 1.25%, 03/15/12		3,580,000		4,000,650

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
Pharmaceuticals–(continued)
Pfizer Inc., Sr. Unsec. Global Notes, 6.20%, 03/15/19	$	650,000	$	762,911
Salix Pharmaceuticals Ltd., Sr. Unsec. Conv. Notes, 2.75%, 05/15/15		1,835,000		2,119,425
				10,863,011
Property & Casualty Insurance–0.02%
CNA Financial Corp., Sr. Unsec. Notes, 7.35%, 11/15/19		25,000		28,576
Travelers Cos., Inc. (The), Sr. Unsec. Notes, 5.35%, 11/01/40		205,000		195,017
				223,593
Publishing–0.00%
Reed Elsevier Capital Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 08/01/11		14,000		14,062
Railroads–0.06%
CSX Corp., Sr. Unsec. Global Notes, 6.15%, 05/01/37		80,000		85,570
Sr. Unsec. Notes, 5.50%, 04/15/41		380,000		372,647
Union Pacific Corp., Sr. Unsec. Notes, 6.13%, 02/15/20		110,000		129,071
				587,288
Regional Banks–0.17%
Key Bank NA, Sr. Unsec. Gtd. Global Notes, 3.20%, 06/15/12		500,000		513,971
Nationwide Building Society (United Kingdom), Sr. Unsec. Notes, 6.25%, 02/25/20(d)		485,000		512,986
PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 3.63%, 02/08/15		40,000		41,992
5.13%, 02/08/20		360,000		383,365
Sr. Unsec. Gtd. Notes, 6.70%, 06/10/19		185,000		218,168
				1,670,482
Restaurants–0.03%
Yum! Brands, Inc., Sr. Unsec. Global Bonds, 6.25%, 03/15/18		110,000		126,458
Sr. Unsec. Notes, 5.30%, 09/15/19		175,000		188,535
				314,993
Retail REIT’s–0.10%
National Retail Properties Inc., Sr. Unsec. Notes, 5.50%, 07/15/21		695,000		681,491
WEA Finance LLC, Sr. Gtd. Notes, 7.13%, 04/15/18(d)		270,000		313,128
				994,619
Semiconductors–0.87%
Linear Technology Corp., Series A, Sr. Unsec. Conv. Global Notes, 3.00%, 05/01/14(c)		819,000		871,211
Sr. Unsec. Conv. Notes, 3.00%, 05/01/14(c)(d)		1,193,000		1,269,054
Micron Technology, Inc., Sr. Unsec. Conv. Notes, 1.88%, 06/01/14		4,736,000		4,641,280
Xilinx, Inc., Jr. Unsec. Conv. Sub. Notes, 3.13%, 03/15/37(d)		1,302,000		1,656,795
				8,438,340
Sovereign Debt–0.05%
Brazilian Government International Bond (Brazil), Sr. Unsec. Global Bonds, 6.00%, 01/17/17		100,000		117,200
Republic of Italy (Italy), Sr. Unsec. Global Notes, 6.88%, 09/27/23		320,000		363,747
Republic of Peru International Bond (Peru), Sr. Unsec. Global Notes, 7.13%, 03/30/19		10,000		12,037
				492,984
Specialized REIT’s–0.05%
Senior Housing Properties Trust, Sr. Unsec. Notes, 4.30%, 01/15/16		495,000		495,928
Steel–0.36%
Allegheny Technologies, Inc., Sr. Unsec. Conv. Notes, 4.25%, 06/01/14		995,000		1,651,700
ArcelorMittal (Luxembourg), Sr. Unsec. Global Bonds, 9.85%, 06/01/19		446,000		566,519
Sr. Unsec. Global Notes, 3.75%, 08/05/15		585,000		599,053
6.13%, 06/01/18		15,000		16,014
5.50%, 03/01/21		85,000		85,262
7.00%, 10/15/39		40,000		40,591
6.75%, 03/01/41		85,000		84,667
Vale Overseas Ltd. (Brazil), Sr. Unsec. Gtd. Global Notes, 5.63%, 09/15/19		185,000		197,242
4.63%, 09/15/20		20,000		19,786
6.88%, 11/10/39		185,000		201,323
				3,462,157
Systems Software–0.25%
Symantec Corp.–Class B, Sr. Unsec. Conv. Global Notes, 1.00%, 06/15/13		1,970,000		2,403,400
Technology Distributors–0.01%
Avnet, Inc., Sr. Unsec. Notes, 5.88%, 06/15/20		50,000		52,879
Thrifts & Mortgage Finance–0.27%
MGIC Investment Corp., Sr. Unsec. Conv. Notes, 5.00%, 05/01/17		2,943,000		2,637,664
Tobacco–0.00%
Altria Group Inc., Sr. Unsec. Gtd. Global Notes, 4.13%, 09/11/15		35,000		37,171
Trading Companies & Distributors–0.00%
GATX Corp., Sr. Unsec. Notes, 4.75%, 10/01/12		20,000		20,832

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
Trucking–0.03%
Ryder System Inc., Sr. Unsec. Medium-Term Notes, 3.15%, 03/02/15	$	280,000	$	287,260
Wireless Telecommunication Services–0.57%
American Tower Corp., Sr. Unsec. Global Notes, 4.63%, 04/01/15		170,000		178,674
Sr. Unsec. Notes, 4.50%, 01/15/18		320,000		319,955
Clearwire Communications LLC/Clearwire Finance, Inc., Sr. Unsec. Gtd. Conv. Notes, 8.25%, 12/01/17(c)(d)		1,944,000		1,735,020
Crown Castle Towers LLC, Sr. Sec. Gtd. Notes, 3.21%, 08/15/15(d)		370,000		378,325
SBA Communications Corp., Sr. Unsec. Conv. Notes, 1.88%, 05/01/13		2,578,000		2,845,467
				5,457,441
Total Bonds & Notes (Cost $177,985,536)				190,321,784
U.S. Treasury Securities–7.09%
U.S. Treasury Bills–0.03%
0.08%, 11/17/11(g)(h)		20,000		19,997
0.10%, 11/17/11(g)(h)		340,000		319,944
				339,941
U.S. Treasury Notes–4.90%
0.88%, 02/29/12		500,000		502,441
1.00%, 04/30/12		400,000		402,641
0.75%, 05/31/12		800,000		803,906
1.38%, 09/15/12		1,700,000		1,722,445
1.50%, 12/31/13		1,085,000		1,108,565
1.75%, 03/31/14		2,300,000		2,363,969
2.63%, 07/31/14		1,100,000		1,159,812
2.38%, 10/31/14		15,720,000		16,442,137
2.13%, 11/30/14		5,250,000		5,446,055
2.25%, 01/31/15		6,000,000		6,243,750
2.50%, 03/31/15		275,000		288,535
2.13%, 05/31/15		680,000		703,056
2.25%, 03/31/16		2,000,000		2,056,875
2.63%, 04/30/16		2,000,000		2,090,313
4.00%, 08/15/18		3,055,000		3,367,183
3.63%, 08/15/19		1,525,000		1,624,840
3.38%, 11/15/19		300,000		312,844
2.63%, 11/15/20		600,000		577,875
3.63%, 02/15/20		46,000		48,674
				47,265,916
U.S. Treasury Bonds–2.16%
8.13%, 08/15/21		2,700,000		3,864,797
6.63%, 02/15/27		2,500,000		3,307,812
5.38%, 02/15/31		8,995,000		10,543,827
4.25%, 05/15/39		805,000		789,780
4.50%, 08/15/39		40,000		40,906
4.63%, 02/15/40		250,000		260,703
4.38%, 05/15/40		80,000		79,963
3.88%, 08/15/40		20,000		18,316
4.25%, 11/15/40		2,000,000		1,955,312
				20,861,416
Total U.S. Treasury Securities (Cost $66,166,155)				68,467,273
	Shares
Preferred Stocks–1.85%
Agricultural Products–0.05%
Nielsen Holdings N.V., $3.13 Conv. Pfd. (Netherlands)		7,510		464,212
Health Care Facilities–0.21%
HealthSouth Corp.–Series A, $65.00 Conv. Pfd.		1,785		2,008,571
Health Care Services–0.13%
Omnicare Capital Trust II–Series B, $2.00 Conv. Pfd. 26,407				1,270,177
Household Appliances–0.15%
Stanley Black & Decker, Inc., $4.75 Conv. Pfd.		12,300		1,496,541
Multi-Utilities–0.24%
CenterPoint Energy, Inc., $1.88 Conv. Pfd.		62,215		2,286,401
Oil & Gas Storage & Transportation–0.44%
El Paso Energy Capital Trust I, $2.38 Conv. Pfd.		95,499		4,251,615
Regional Banks–0.35%
KeyCorp.–Series A, $7.75 Conv. Pfd.		30,290		3,392,480
Trucking–0.28%
Swift Mandatory Common Exchange Security Trust, $0.66 Conv. Pfd.(d)		199,220		2,676,760
Total Preferred Stocks (Cost $13,942,445)				17,846,757

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
U.S. Government Sponsored Agency Securities–0.74%
Federal Home Loan Mortgage Corp. (FHLMC)–0.53%
6.50%, 02/01/26	$	6,485	$	7,350
Sr. Unsec. Global Bonds, 6.75%, 03/15/31		750,000		965,259
Sr. Unsec. Global Notes, 3.00%, 07/28/14		1,020,000		1,082,420
5.00%, 04/18/17		1,500,000		1,720,887
5.50%, 08/23/17		140,000		164,239
Unsec. Global Notes, 4.88%, 06/13/18		1,000,000		1,138,993
				5,079,148
Federal National Mortgage Association (FNMA)–0.21%
Sr. Unsec. Global Notes, 4.38%, 10/15/15		1,700,000		1,890,795
Unsec. Global Notes, 2.63%, 11/20/14		130,000		136,285
				2,027,080
Total U.S. Government Sponsored Agency Securities (Cost $6,763,740) 7,106,228
Municipal Obligation–0.03%
Texas (State of) Transportation Commission; Series 2010 B, Taxable First Tier Build America RB, 5.03%, 04/01/26 (Cost $240,000) 240,000				259,471
Asset-Backed Securities–0.00%
Home Equity Loan–0.00%
Countrywide Asset-Backed Ctfs.–Series 2007-4, Class A1B, Pass Through Ctfs., 5.81%, 09/25/37 (Cost $27,244)		27,800		27,456
U.S. Government Sponsored Mortgage-Backed Securities–0.00%
Federal Home Loan Mortgage Corp. (FHLMC)–0.00%
Pass Through Ctfs., 5.50%, 02/01/37		648		701
Federal National Mortgage Association (FNMA)–0.00%
Pass Through Ctfs., 6.00%, 01/01/17		1,734		1,896
5.50%, 03/01/21		667		724
8.00%, 08/01/21		5,331		6,199
9.50%, 04/01/30		12,939		15,695
				24,514
Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $22,821)				25,215
	Shares
Money Market Funds–5.99%
Liquid Assets Portfolio–Institutional Class(i)		28,906,982		28,906,982
Premier Portfolio–Institutional Class(i)		28,906,982		28,906,982
Total Money Market Funds (Cost $57,813,964)				57,813,964
TOTAL INVESTMENTS–99.37% (Cost $857,211,555)				959,015,745
OTHER ASSETS LESS LIABILITIES–0.63%				6,071,955
NET ASSETS–100.00%			$	965,087,700

Investment Abbreviations:

Conv.	– Convertible
Ctfs.	– Certificates
Deb.	– Debentures
Gtd.	– Guaranteed
Jr.	– Junior
Pfd.	– Preferred
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.
(b)	Non-income producing security.
(c)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(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, 2011 was $39,079,611, which represented 4.05% of the Fund’s Net Assets.
(e)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2011.
(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, 2011 represented 0.00% of the Fund’s Net Assets.
(g)	All or a portion of the value was pledged as collateral to cover margin requirements for open future contracts. See Note 1K and Note 4.
(h)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(i)	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. Equity and Income Fund

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2011

Common Stocks & Other Equity Interests	64.0	%
Bonds & Notes	19.7
U.S. Treasury Securities	7.1
Preferred Stocks	1.9
Security types each less than 1.0% of portfolio	0.7
Money Market Funds Plus Other Assets Less Liabilities	6.6

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $799,397,591)	$	901,201,781
Investments in affiliated money market funds, at value and cost		57,813,964
Total investments, at value (Cost $857,211,555)		959,015,745
Receivable for:
Investments sold		5,252,590
Variation margin		73,414
Fund shares sold		690,096
Dividends and interest		3,509,868
Investment for trustee deferred compensation and retirement plans		41,886
Other assets		2,581
Total assets		968,586,180
Liabilities:
Payable for:
Investments purchased		1,103,947
Fund shares reacquired		398,217
Foreign currency contracts outstanding		347,755
Accrued fees to affiliates		1,324,834
Accrued other operating expenses		264,702
Trustee deferred compensation and retirement plans		59,025
Total liabilities		3,498,480
Net assets applicable to shares outstanding	$	965,087,700
Net assets consist of:
Shares of beneficial interest	$	884,699,882
Undistributed net investment income		7,189,824
Undistributed net realized gain (loss)		(28,279,838	)
Unrealized appreciation		101,477,832
	$	965,087,700
Net Assets:
Series I	$	65,176,309
Series II	$	899,911,391
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		4,517,596
Series II		62,421,655
Series I:
Net asset value per share	$	14.43
Series II:
Net asset value per share	$	14.42

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $89,652)	$	6,868,991
Dividends from affiliated money market funds		24,209
Interest		3,535,377
Total investment income		10,428,577
Expenses:
Advisory fees		1,714,778
Administrative services fees		1,197,438
Custodian fees		31,843
Distribution fees — Series II		1,064,774
Transfer agent fees		9,740
Trustees’ and officers’ fees and benefits		20,539
Other		56,577
Total expenses		4,095,689
Less: Fees waived		(882,159	)
Net expenses		3,213,530
Net investment income		7,215,047
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		24,214,250
Foreign currency contracts		108,851
Futures contracts		(43,799	)
		24,279,302
Change in net unrealized appreciation (depreciation) of:
Investment securities		(1,045,926	)
Foreign currencies		(5	)
Foreign currency contracts		(347,755	)
Futures contracts		(572,634	)
		(1,966,320	)
Net realized and unrealized gain		22,312,982
Net increase in net assets resulting from operations	$	29,528,029

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	7,215,047		$	12,050,632
Net realized gain		24,279,302			23,430,319
Change in net unrealized appreciation (depreciation)		(1,966,320	)		48,708,386
Net increase in net assets resulting from operations		29,528,029			84,189,337
Distributions to shareholders from net investment income:
Series I		(691	)		—
Series II		(12,068,022	)		(13,994,794	)
Total distributions from net investment income		(12,068,713	)		(13,994,794	)
Share transactions–net:
Series I		67,075,715			44,483
Series II		80,093,053			57,438,806
Net increase in net assets resulting from share transactions		147,168,768			57,483,289
Net increase in net assets		164,628,084			127,677,832
Net assets:
Beginning of period		800,459,616			672,781,784
End of period (includes undistributed net investment income of $7,189,824 and $12,043,490, respectively)	$	965,087,700		$	800,459,616

Notes to Financial Statements

June 30, 2011

(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) (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-eight 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 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 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 Van Kampen V.I. Equity and 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	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. Equity and 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.	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.	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.

Invesco Van Kampen V.I. Equity and Income Fund

NOTE 2 — Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $150 million		0	.50%
Next $100 million		0	.45%
Next $100 million		0	.40%
Over $350 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 Canada Ltd. (formerly 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 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 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. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, 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 expense reimbursements prior to the end of each fiscal year.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $30,333.

  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, 2011, Invesco was paid $105,424 for accounting and fund administrative services and reimbursed $1,092,014 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, 2011, 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. IDI has contractually agreed to waive 0.20% of Rule 12b-1 plan fees on Series II shares through at least June 30, 2012. For the six months ended June 30, 2011, 12b-1 fees incurred for Series II shares were $212,948 after fee waivers of $851,826.

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

NOTE 3 — Additional Valuation Information

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

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

Invesco Van Kampen V.I. Equity and Income Fund

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, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2			Level 3		Total
Equity Securities	$	685,372,374	$	7,435,944		$	—	$	692,808,318
U.S. Treasury Securities		—		68,467,273			—		68,467,273
U.S. Government Sponsored Securities		—		7,131,443			—		7,131,443
Corporate Debt Securities		—		189,828,800			0		189,828,800
Asset Backed Securities		—		27,456			—		27,456
Municipal Obligations		—		259,471			—		259,471
Foreign Government Debt Securities		—		492,984			—		492,984
	$	685,372,374	$	273,643,371		$	0	$	959,015,745
Foreign Currency Contracts*		—		(347,755	)		—		(347,755	)
Futures*		21,397		—			—		21,397
Total Investments	$	685,393,771	$	273,295,616		$	0	$	958,689,387

*  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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Currency risk
Foreign currency contracts(a)	$	4,995	$	(352,750	)
Interest rate risk
Futures contracts(b)		101,935		(80,538	)

(a)	Values are disclosed on the Statement of Assets and Liabilities under Foreign currency contracts outstanding.
(b)	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, 2011

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
	Futures*			Contracts*
Realized Gain (Loss)
Currency risk	$	—		$	108,851
Interest rate risk		(43,799	)		—
Change in Unrealized Appreciation (Depreciation)
Currency risk		—			(347,755	)
Interest rate risk		(572,634	)		—
Total	$	(616,433	)	$	(238,904	)

*  The average notional value of futures and foreign currency contracts outstanding during the period was $34,669,040 and $7,969,354, respectively.

Invesco Van Kampen V.I. Equity and Income Fund

Open Foreign Currency Contracts
								Unrealized
		Contract to				Notional		Appreciation
Settlement Date	Counterparty	Deliver		Receive		Value		(Depreciation)
8/15/11	Bank of New York	EUR	2,118,174	USD	2,996,898	$	3,068,402	$	(71,504	)
8/15/11	Bank of New York	GBP	972,411	USD	1,552,381		1,559,892		(7,511	)
8/15/11	Bank of New York	JPY	128,349,090	USD	1,597,813		1,595,088		2,725
8/15/11	BNP Paribas	EUR	3,399,163	USD	4,809,153		4,924,052		(114,899	)
8/15/11	BNP Paribas	GBP	1,941,070	USD	3,097,579		3,113,765		(16,186	)
8/15/11	Morgan Stanley	EUR	1,135,008	USD	1,607,427		1,644,181		(36,754	)
8/15/11	Morgan Stanley	JPY	127,402,473	USD	1,585,594		1,583,324		2,270
8/15/11	State Street CA	EUR	3,386,030	USD	4,803,050		4,905,028		(101,978	)
8/15/11	State Street CA	GBP	970,171	USD	1,552,381		1,556,299		(3,918	)
Total open foreign currency contracts								$	(347,755	)

Currency Abbreviations:
EUR	– Euro
JPY	– Japanese Yen
GBP	– British Pound Sterling
USD	– U.S. Dollar

Open Futures Contracts
								Unrealized
	Number of				Notional			Appreciation
Contract	Contracts		Month		Value			(Depreciation)
Long Contracts
U.S. Treasury 2 Year Notes		49		September-2011	$	10,747,844		$	28,161
Short Contracts
U.S. Treasury 5 Year Notes		87		September-2011		(10,369,992	)		(56,597	)
U.S. Treasury 10 Year Notes		43		September-2011		(5,260,109	)		(23,941	)
U.S. Treasury Long Bond		48		September-2011		(5,905,500	)		73,774
Subtotal						(21,535,601	)		(6,764	)
Total								$	21,397

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, 2011, the Fund engaged in securities purchases of $409,233.

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, 2011, the Fund paid legal fees of $1,195 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 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 Van Kampen V.I. Equity and Income Fund

NOTE 8 — Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	48,332,887

*  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, 2011 was $143,641,085 and $117,769,945, 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	$	112,706,245
Aggregate unrealized (depreciation) of investment securities		(14,534,276	)
Net unrealized appreciation of investment securities	$	98,171,969
Cost of investments for tax purposes is $860,843,776.

NOTE 10 — Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I(b)		52,814		$	700,637			3,269		$	44,487
Series II		5,546,689			80,512,933			9,140,570			119,604,678
Issued as reinvestment of dividends:
Series I		36			517			—			—
Series II		834,580			12,068,022			1,110,698			13,994,794
Issued in connection with acquisitions:(c)
Series I		4,636,112			68,904,153			—			—
Series II		2,097,600			31,153,983			—			—
Reacquired:
Series I		(174,635	)		(2,529,592	)		—			(4	)
Series II		(3,014,557	)		(43,641,885	)		(5,846,609	)		(76,160,666	)
Net increase in share activity		9,978,639		$	147,168,768			4,407,928		$	57,483,289

(a)	There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 70% 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.
(c)	As of the opening of business on May 2, 2011, the Fund acquired all the net assets of Invesco V.I. Basic Balanced Fund, Invesco V.I. Income Builder Fund and Invesco V.I. Select Dimensions Balanced Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco V.I. Basic Balanced Fund, Invesco V.I. Income Builder Fund and Invesco V.I. Select Dimensions Balanced Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 6,733,712 shares of the Fund for 3,229,995, 2,847,069 and 2,619,937 shares outstanding of Invesco V.I. Basic Balanced Fund, Invesco V.I. Income Builder Fund and Invesco V.I. Select Dimensions Balanced Fund, respectively, as of the close of business on April 29, 2011. Each class of Invesco V.I. Basic Balanced Fund, Invesco V.I. Income Builder Fund and Invesco V.I. Select Dimensions Balanced Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco V.I. Basic Balanced Fund, Invesco V.I. Income Builder Fund and Invesco V.I. Select Dimensions Balanced Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco V.I. Basic Balanced Fund, Invesco V.I. Income Builder Fund and Invesco V.I. Select Dimensions Balanced Fund’s net assets at that date of $31,074,478, $31,415,510 and $37,568,148 including $4,748,247, $4,098,925 and $3,365,752 of unrealized appreciation, respectively, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $883,038,141. The net assets of the Fund immediately following the acquisition were $983,096.277.

Invesco Van Kampen V.I. Equity and Income Fund

NOTE 11—Financial Highlights

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

																											Ratio of
																											expenses			Ratio of						Ratio of
																											to average			expenses						rebate
					Net gains																						net assets			to average net						from
					(losses) on																						with fee			assets without			Ratio of net			Morgan
	Net asset				securities						Dividends			Distributions													waivers			fee waivers			investment			Stanley
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		and/or			and/or			income to			Affiliates to
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		expenses			expenses			average			average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			distributions			of period		return(b)			(000s omitted)		absorbed			absorbed			net assets			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	14.06	$	0.12	$	0.46		$	0.58		$	(0.21	)	$	—		$	(0.21	)	$	14.43		4.14	%	$	65,176		0.68	%(e)		0.69	%(e)		1.71	%(e)		—	%		15	%
Year ended 12/31/10(d)		12.27		0.13		1.66			1.79			—			—			—			14.06		14.59			46		0.69	(f)		0.70	(f)		1.73	(f)		—			34
Series II
Six months ended 06/30/11		14.05		0.12		0.46			0.58			(0.21	)		—			(0.21	)		14.42		4.10			899,911		0.73	(e)		0.94	(e)		1.66	(e)		—			15
Year ended 12/31/10		12.80		0.22		1.29			1.51			(0.26	)		—			(0.26	)		14.05		12.03			800,414		0.74			0.98			1.68			—			34
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	(g)		1.04	(g)		2.09	(g)(h)		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	)(i)		517,124		0.75	(g)		1.05	(g)		2.50	(g)(h)		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	(g)		1.04	(g)		2.31	(g)(h)		0.00	(j)		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	(h)		—			56

(a)	Calculate 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. For the period ending June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $84,964,454 and sold of $9,277,782 in effect to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Basic Balanced Fund, Invesco V.I. Income Builder Fund and Invesco V.I. Select Dimensions Balanced Fund into the Fund.
(d)	Commencement date of June 1, 2010.
(e)	Ratios are annualized and based on average daily net assets (000’s omitted) of $21,972 and $858,879 for Series I and Series II shares, respectively.
(f)	Annualized.
(g)	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”.
(h)	Ratio of net investment income to average net assets without fee waivers and/or expenses absorbed was 1.79%, 2.20%, 2.01% and 1.95% for the years ended December 31, 2009 through December 31, 2006, respectively.
(i)	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)%.
(j)	Amount is less than 0.005%.

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. 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,041.40	$	3.44	$	1,021.42	$	3.41		0.68	%
Series II		1,000.00		1,041.00		3.69		1,021.17		3.66		0.73

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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. Equity and 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 Van Kampen V.I. Equity and 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

Invesco Van Kampen V.I. Equity and 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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Mixed-Asset Target Allocation Growth Funds Index. The Board noted that performance of Series II shares of the Fund was in the fourth quintile of the performance universe for the one year period, the first 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 performance of Series II 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 at a common asset level. The Board noted that the contractual advisory fee rate for Series II shares of the Fund was below the median contractual advisory fee rate of funds in the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rate of one mutual fund advised by Invesco Advisers and below the total account level fee of two mutual funds subadvised by Invesco Advisers with comparable strategies.

  Other than the mutual funds 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco Van Kampen V.I. Global Value Equity Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.05%
Series II Shares	3.93
MSCI World Index▼ (Broad Market/Style-Specific Index)	5.29
Lipper VUF Global Core Funds Index▼ (Peer Group Index)	6.19

^▼ Lipper Inc.

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries.

     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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Effective June 1, 2010, Class I shares of the predecessor fund, Universal Funds Global Value Equity Portfolio, advised by Morgan Stanley Investment Management Inc. 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 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 0.94% 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 1.10% 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. 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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (1/2/97)			4.76%
	10	Years	2.45
	5	Years	-0.21
	1	Year	27.36
Series II Shares
	10	Years	2.19	%
	5	Years	-0.46
	1	Year	27.25

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, 2012. See current prospectus for more information

Invesco Van Kampen V.I. Global Value Equity Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–92.70%
Australia–2.43%
Australia & New Zealand Banking Group Ltd.		45,373	$	1,071,503
Macquarie Group Ltd.		25,581		861,333
Telstra Corp. Ltd.		362,690		1,126,180
				3,059,016
Bermuda–0.69%
PartnerRe Ltd.		12,667		872,123
Brazil–1.41%
Banco Santander Brasil S.A.(a)		28,300		328,324
Companhia Energetica de Minas Gerais–ADR		14,485		298,970
PDG Realty S.A. Empreendimentos e Participacoes		66,700		375,588
Petroleo Brasileiro S.A.–ADR		12,509		423,555
Vale S.A.–ADR		10,939		349,501
				1,775,938
Canada–2.20%
Nexen, Inc.		60,336		1,360,125
Toronto-Dominion Bank (The)(b)		16,560		1,404,269
				2,764,394
China–1.25%
China Construction Bank Corp.–Class H		246,000		204,752
China Dongxiang Group Co.		586,000		186,972
China Minsheng Banking Corp., Ltd.–Class H		428,000		396,430
CNOOC Ltd.		115,000		270,168
KWG Property Holding Ltd.		232,500		155,616
Renhe Commercial Holdings Co., Ltd.		1,870,000		360,461
				1,574,399
Finland–0.52%
Nokia Corp.–ADR(b)		101,884		654,095
France–5.34%
BNP Paribas		32,722		2,526,643
Bouygues S.A.		28,012		1,231,826
Sanofi-Aventis S.A.		18,537		1,490,769
Total S.A.		25,291		1,463,083
				6,712,321
Germany–2.53%
Deutsche Lufthansa AG		81,157		1,768,838
Salzgitter AG		18,538		1,414,209
				3,183,047
Hong Kong–1.98%
Cheung Kong (Holdings) Ltd.		77,000		1,132,381
China Mobile Ltd.		33,500		311,718
Esprit Holdings Ltd.		334,300		1,041,362
				2,485,461
Indonesia–0.17%
PT Telekomunikasi Indonesia Tbk		251,000		215,478
Italy–1.02%
Eni S.p.A.		53,808		1,275,995
Japan–10.96%
Asahi Group Holdings Ltd.		93,500		1,884,342
FUJIFILM Holdings Corp.		33,100		1,031,909
Mitsubishi Corp.		62,700		1,571,238
Mitsubishi UFJ Financial Group, Inc.		311,000		1,514,315
Nippon Telegraph & Telephone Corp.		37,200		1,809,204
Nippon Yusen Kabushiki Kaisha		331,000		1,232,606
Nissan Motor Co., Ltd.		217,300		2,281,481
Seven & I Holdings Co., Ltd.		39,800		1,070,894
Sumitomo Chemical Co., Ltd.		276,000		1,378,753
				13,774,742
Mexico–0.41%
America Movil S.A.B. de C.V.–Series L		211,200		284,774
Desarrolladora Homex S.A.B. de C.V.–ADR(b)(c)		8,987		226,742
				511,516
Netherlands–0.96%
Unilever N.V.		36,716		1,203,947
Norway–2.12%
Statoil A.S.A.		44,056		1,115,859
Yara International A.S.A.		27,337		1,545,655
				2,661,514
Poland–0.26%
KGHM Polska Miedz S.A.		4,608		331,051
Russia–0.65%
Gazprom OAO–ADR		16,444		240,848
Magnitogorsk Iron & Steel Works–GDR		23,624		268,841
Rosneft Oil Co.–GDR		35,940		302,615
				812,304
South Africa–0.97%
Sasol Ltd.		5,732		301,797
Standard Bank Group Ltd.		20,385		301,674

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
South Africa–(continued)
Steinhoff International Holdings Ltd.(c)		98,851	$	336,126
Tiger Brands Ltd.		9,539		278,646
				1,218,243
South Korea–2.42%
Dongbu Insurance Co., Ltd.		5,656		294,018
Hyundai Mipo Dockyard Co., Ltd.		2,148		342,794
Hyundai Mobis		1,656		620,428
KT&G Corp.		3,906		242,925
LG Electronics, Inc.		1,784		139,240
POSCO		846		367,671
Samsung Electronics Co., Ltd.		591		459,348
Shinhan Financial Group Co., Ltd.		6,284		300,159
SK Telecom Co., Ltd.–ADR		14,838		277,471
				3,044,054
Spain–3.12%
Banco Santander S.A.		112,611		1,300,784
Iberdrola S.A.(c)		161,785		1,440,264
Telefonica S.A.		48,445		1,184,825
				3,925,873
Switzerland–5.33%
ACE Ltd.		40,447		2,662,221
Holcim Ltd.(c)		17,315		1,306,967
Swisscom AG		3,276		1,502,377
Zurich Financial Services AG(c)		4,828		1,221,072
				6,692,637
Taiwan–0.80%
AU Optronics Corp.–ADR(c)		24,386		167,776
Coretronic Corp		121,000		191,558
HTC Corp.		8,833		301,734
Powertech Technology, Inc.		103,000		346,147
				1,007,215
Thailand–0.33%
Bangkok Bank PCL–NVDR		57,200		294,001
PTT PCL		11,500		125,720
				419,721
Turkey–0.17%
Asya Katilim Bankasi A.S.(c)		135,217		210,782
United Arab Emirates–0.23%
Dragon Oil PLC		33,927		284,534
United Kingdom–9.03%
Barclays PLC		323,859		1,333,094
BHP Billiton PLC		60,051		2,353,946
GlaxoSmithKline PLC		50,528		1,081,907
Imperial Tobacco Group PLC		79,203		2,632,836
National Grid PLC		113,842		1,120,390
Royal Dutch Shell PLC–Class A		79,191		2,822,017
				11,344,190
United States–35.40%
3M Co.		15,771		1,495,879
Apache Corp.		10,702		1,320,520
Archer-Daniels-Midland Co.		72,177		2,176,136
Avon Products, Inc.		33,902		949,256
Bank of America Corp.		112,339		1,231,235
Bank of New York Mellon Corp.		40,497		1,037,533
Best Buy Co., Inc.		45,911		1,442,064
Chevron Corp.		27,192		2,796,425
Cisco Systems, Inc.		61,003		952,257
Coach, Inc.		38,213		2,442,957
ConocoPhillips		30,005		2,256,076
CVS Caremark Corp.		40,875		1,536,083
Energen Corp.		26,174		1,478,831
GameStop Corp.–Class A(b)(c)		55,738		1,486,532
General Dynamics Corp.		32,037		2,387,397
Gilead Sciences, Inc.(c)		29,587		1,225,198
Johnson & Johnson		32,278		2,147,133
Merck & Co., Inc.		56,086		1,979,275
Microsoft Corp.		44,575		1,158,950
Morgan Stanley		48,604		1,118,378
Oracle Corp.		68,848		2,265,788
Stryker Corp.		20,749		1,217,759
Valero Energy Corp.		57,872		1,479,787
W. R. Berkley Corp.		34,398		1,115,871
WellPoint, Inc.		34,758		2,737,888
Western Digital Corp.(c)		83,854		3,050,609
				44,485,817
Total Common Stocks & Other Equity Interests (Cost $100,031,157)				116,500,407
Investment Companies–2.52%
Investment Companies–Exchange Traded Funds–2.52%
WisdomTree India Earnings Fund		27,200		651,712
SPDR S&P 500 ETF Trust		9,500		1,253,715
iShares MSCI EAFE Index Fund		21,000		1,262,940
Total Investment Companies (Cost $3,139,118)				3,168,367

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
Preferred Stocks–1.99%
Brazil–0.14%
Usinas Siderurgicas de Minas Gerais S.A.–Class A -4.93% Pfd.		20,100	$	176,535
Germany–1.85%
Porsche Automobil Holding SE -1.04% Pfd.		29,216		2,318,226
Total Preferred Stocks (Cost $1,688,270)				2,494,761
Money Market Funds–1.06%
Liquid Assets Portfolio–Institutional Class(d)		667,306		667,306
Premier Portfolio–Institutional Class(d)		667,306		667,306
Total Money Market Funds (Cost $1,334,612)				1,334,612
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–98.27% (Cost $106,193,157)				123,498,147
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–2.22%
Liquid Assets Portfolio–Institutional Class (Cost $2,790,660)(d)(e)		2,790,660		2,790,660
TOTAL INVESTMENTS–100.49% (Cost $108,983,817)				126,288,807
OTHER ASSETS LESS LIABILITIES–(0.49%)				(609,702	)
NET ASSETS–100.00%			$	125,679,105

Investment Abbreviations:

ADR	– American Depositary Receipt
ETF	– Exchange-Traded Fund
GDR	– Global Depositary Receipt
NVDR	– Non-Voting Depositary Receipt
Pfd.	– Preferred
SPDR	– Standard & Poor’s Depositary Receipt

Notes to Schedule of Investments:

(a)	Each unit represents 55 common shares and 50 preferred shares.
(b)	All or a portion of this security was out on loan at June 30, 2011.
(c)	Non-income producing security.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.
(e)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J.

Portfolio Composition

By country, based on Net Assets

as of June 30, 2011

United States	37.4	%
Japan	11.0
United Kingdom	9.0
France	5.3
Switzerland	5.3
Germany	4.4
Spain	3.1
Australia	2.4
South Korea	2.4
Canada	2.2
Norway	2.1
Countries each less than 2.0% of portfolio	12.6
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. Global Value Equity Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $104,858,545)*	$	122,163,535
Investments in affiliated money market funds, at value and cost		4,125,272
Total investments, at value (Cost $108,983,817)		126,288,807
Foreign currencies, at value (Cost $25,770)		28,378
Receivable for:
Investments sold		3,497,947
Fund shares sold		2,024
Dividends		506,223
Investment for trustee deferred compensation and retirement plans		4,763
Other assets		1,024
Total assets		130,329,166
Liabilities:
Payable for:
Investments purchased		1,430,356
Fund shares reacquired		26,428
Collateral upon return of securities loaned		2,790,660
Accrued fees to affiliates		139,324
Accrued other operating expenses		254,175
Trustee deferred compensation and retirement plans		9,118
Total liabilities		4,650,061
Net assets applicable to shares outstanding	$	125,679,105
Net assets consist of:
Shares of beneficial interest	$	125,508,368
Undistributed net investment income		1,703,927
Undistributed net realized gain (loss)		(18,847,527	)
Unrealized appreciation		17,314,337
	$	125,679,105
Net Assets:
Series I	$	100,041,556
Series II	$	25,637,549
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		12,595,345
Series II		3,228,108
Series I:
Net asset value per share	$	7.94
Series II:
Net asset value per share	$	7.94

*  At June 30, 2011, securities with an aggregate value of $2,755,094 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $118,218)	$	2,045,553
Dividends from affiliated money market funds (includes securities lending income of $58,297)		59,183
Total investment income		2,104,736
Expenses:
Advisory fees		245,119
Administrative services fees		116,257
Custodian fees		58,384
Distribution fees — Series II		10,731
Transfer agent fees		4,403
Trustees’ and officers’ fees and benefits		8,701
Professional services fees		27,348
Other		12,404
Total expenses		483,347
Less: Fees waived		(97,141	)
Net expenses		386,206
Net investment income		1,718,530
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		2,064,221
Foreign currencies		(22,203	)
		2,042,018
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes on holdings of $1,021)		(5,693,423	)
Foreign currencies		(7,199	)
		(5,700,622	)
Net realized and unrealized gain (loss)		(3,658,604	)
Net increase (decrease) in net assets resulting from operations	$	(1,940,074	)

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	1,718,530		$	875,486
Net realized gain		2,042,018			2,174,772
Change in net unrealized appreciation (depreciation)		(5,700,622	)		1,296,804
Net increase (decrease) in net assets resulting from operations		(1,940,074	)		4,347,062
Distributions to shareholders from net investment income:
Series I		(1,439,970	)		(823,810	)
Series II		(353	)		—
Total distributions from net investment income		(1,440,323	)		(823,810	)
Share transactions–net:
Series I		57,440,526			(4,776,026	)
Series II		26,889,842			10,000
Net increase (decrease) in net assets resulting from share transactions		84,330,368			(4,766,026	)
Net increase (decrease) in net assets		80,949,971			(1,242,774	)
Net assets:
Beginning of period		44,729,134			45,971,908
End of period (includes undistributed net investment income of $1,703,927 and $1,425,720, respectively)	$	125,679,105		$	44,729,134

Notes to Financial Statements

June 30, 2011

(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) (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-eight 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 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 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. Global Value 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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. Global Value 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.	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 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 Van Kampen V.I. Global Value 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 Daily 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%

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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 May 2, 2011, 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 and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.94% and Series II shares to 1.19% of average daily net assets. Prior to May 2, 2011, the Adviser had contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of 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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $97,141.

  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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $91,462 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

Invesco Van Kampen V.I. Global Value Equity Fund

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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	$	—	$	3,059,016	$	—	$	3,059,016
Bermuda		872,123		—		—		872,123
Brazil		1,952,473		—		—		1,952,473
Canada		2,764,394		—		—		2,764,394
China		360,461		1,213,938		—		1,574,399
Finland		654,095		—		—		654,095
France		6,712,321		—		—		6,712,321
Germany		5,501,273		—		—		5,501,273
Hong Kong		—		2,485,461		—		2,485,461
Indonesia		—		215,478		—		215,478
Italy		—		1,275,995		—		1,275,995
Japan		—		13,774,742		—		13,774,742
Mexico		511,516		—		—		511,516
Netherlands		1,203,947		—		—		1,203,947
Norway		1,115,859		1,545,655		—		2,661,514
Poland		331,051		—		—		331,051
Russia		571,456		240,848		—		812,304
South Africa		916,569		301,674		—		1,218,243
South Korea		1,802,513		1,241,541		—		3,044,054
Spain		3,925,873		—		—		3,925,873
Switzerland		6,692,637		—		—		6,692,637
Taiwan		167,776		839,439		—		1,007,215
Thailand		294,001		125,720		—		419,721
Turkey		210,782		—		—		210,782
United Arab Emirates		284,534		—		—		284,534
United Kingdom		5,047,837		6,296,353		—		11,344,190
United States		51,779,456		—		—		51,779,456
Total Investments	$	93,672,947	$	32,615,860	$	—	$	126,288,807

*  Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

Invesco Van Kampen V.I. Global Value Equity 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.

  During the six months ended June 30, 2011, the Fund paid legal fees of $661 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	2,956,661
December 31, 2017		17,917,975
Total capital loss carryforward	$	20,874,636

*  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 2, 2011, the date of reorganization of Invesco V.I. Global Dividend Growth Fund into the Fund and realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization.

NOTE 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, 2011 was $18,684,562 and $21,969,605, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	19,784,691
Aggregate unrealized (depreciation) of investment securities		(2,489,145	)
Net unrealized appreciation of investment securities	$	17,295,546
Cost of investments for tax purposes is $108,993,261.

Invesco Van Kampen V.I. Global Value Equity Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		606,664		$	4,880,297			424,256		$	3,147,637
Series II(b)		28			58,292			1,534			10,000
Issued as reinvestment of dividends:
Series I		180,447			1,439,970			123,510			823,810
Issued in connection with acquisitions:(c)
Series I		7,111,889			58,977,691			—			—
Series II(b)		3,419,989			28,363,525			—			—
Reacquired:
Series I		(982,318	)		(7,857,432	)		(1,215,233	)		(8,747,473	)
Series II(b)		(193,443	)		(1,531,975	)		—			—
Net increase (decrease) in share activity		10,143,256		$	84,330,368			(665,933	)	$	(4,766,026	)

(a)	There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 86% 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.
(c)	As of the open of business on May 2, 2011, the Fund acquired all the net assets of Invesco V.I. Global Dividend Growth Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco V.I. Global Dividend Growth Fund on April 1, 2011. The acquisition was accomplished by a tax-free exchange of 10,531,878 shares of the Fund for 8,939,065 shares outstanding of Invesco V.I. Global Dividend Growth Fund as of the close of business on April 29, 2011. Each class of Invesco V.I. Global Dividend Growth Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco V.I. Global Dividend Growth Fund to the net asset value of the Fund on the close of business, April 29, 2011. Invesco V.I. Global Dividend Growth Fund’s net assets at that date of $87,341,216 including $17,119,889 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $48,932,340. The net assets of the Fund immediately following the acquisition were $136,273,556.

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 06/30/11	$	7.87	$	0.19	$	0.13		$	0.32		$	(0.25	)	$	—		$	(0.25	)	$	7.94		4.05	%	$	100,042		1.02	%(d)		1.29	%(d)		4.73	%(d)		39	%
Year ended 12/31/10		7.24		0.15		0.62			0.77			(0.14	)		—			(0.14	)		7.87		10.95			44,717		1.12			1.15			2.04			130
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	(e)		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	(e)		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
Series II
Six months ended 06/30/11		7.86		0.17		0.14			0.31			(0.23	)		—			(0.23	)		7.94		3.93			25,638		1.27	(d)		1.54	(d))		4.48	(d)		39
Year ended 12/31/10(g)		6.52		0.07		1.27			1.34			—			—			—			7.86		20.55			12		1.40	(h)		1.45	(h)		1.76	(h)		130

(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. For the period ending June 30, 2011, the portfolio turnover calculation excludes the value of securities purchased of $70,017,245 and sold of $1,611,383 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Global Dividend Growth Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $65,120 and $8,656 for Series I and Series II, 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, 2008 and 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.
(h)	Annualized.

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. 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,040.50	$	5.16	$	1,019.74	$	5.11		1.02	%
Series II		1,000.00		1,039.30		6.42		1,018.50		6.36		1.27

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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. Global Value 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 Van Kampen V.I. Global Value 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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

Invesco Van Kampen V.I. Global Value Equity Fund

managing the Fund. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

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 assets of the Fund.

  The Board noted that performance of Series I shares of the Fund was in the second quintile of the 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). 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco Van Kampen V.I. Growth and Income Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.62	%
Series II Shares	4.46
S&P 500 Index▼ (Broad Market Index)	6.01
Russell 1000 Value Index▼ (Style-Specific Index)	5.92
Lipper VUF Large-Cap Value Funds Index▼ (Peer Group Index)	5.49

^▼Lipper Inc.

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Van Kampen Life Investment Trust Growth and Income Portfolio, 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.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 0.85% and 1.10%, 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

Average Annual Total Returns

As of 6/30/11

Series I Shares
Inception (12/23/96)			8.04	%
	10	Years	4.70
	5	Years	2.89
	1	Year	28.33
Series II Shares
Inception (9/18/00)			4.31	%
	10	Years	4.44
	5	Years	2.64
	1	Year	28.02

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, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. Growth and Income Fund

Schedule of Investments

June 30, 2011

(Unaudited

	Number of
Description	Shares		Value
Common Stocks 94.1%
Air Freight & Logistics–0.6%
FedEx Corp.		130,290	$	12,358,007
Asset Management & Custody Banks–1.8%
Northern Trust Corp.		327,240		15,039,950
State Street Corp.		463,550		20,901,470
				35,941,420
Automobile Manufacturers–0.2%
Ford Motor Co.(a)		141,285		1,948,320
General Motors Co.(a)		62,845		1,907,974
				3,856,294
Cable & Satellite–3.5%
Comcast Corp., Class A		1,502,852		38,082,270
Time Warner Cable, Inc.		384,100		29,975,164
				68,057,434
Communications Equipment–0.3%
Cisco Systems, Inc.		422,328		6,592,540
Computer Hardware–2.8%
Dell, Inc.(a)		1,526,383		25,444,805
Hewlett-Packard Co.		824,406		30,008,378
				55,453,183
Consumer Electronics–0.9%
Sony Corp.–ADR (Japan)		665,980		17,575,212
Data Processing & Outsourced Services–1.1%
Western Union Co.		1,091,515		21,863,045
Diversified Banks–1.5%
U.S. Bancorp		474,889		12,114,418
Wells Fargo & Co.		587,676		16,490,189
				28,604,607
Diversified Chemicals–1.3%
Dow Chemical Co.		162,492		5,849,712
PPG Industries, Inc.		208,312		18,912,646
				24,762,358
Diversified Support Services–0.6%
Cintas Corp.		361,717		11,947,513
Drug Retail–1.2%
Walgreen Co.		578,070		24,544,852
Electric Utilities–4.0%
American Electric Power Co., Inc.		1,054,484		39,732,957
Edison International		297,542		11,529,753
Entergy Corp.		161,069		10,997,791
FirstEnergy Corp.		354,505		15,651,396
				77,911,897
Food Distributors–1.1%
Sysco Corp.		720,209		22,456,117
Health Care Distributors–0.8%
Cardinal Health, Inc.		330,253		15,000,091
Health Care Equipment–1.0%
Medtronic, Inc.		498,907		19,222,887
Health Care Facilities–0.6%
HCA Holdings, Inc.(a)		338,260		11,162,580
Home Improvement Retail–1.4%
Home Depot, Inc.		753,777		27,301,803
Household Products–2.4%
Energizer Holdings, Inc.(a)		103,228		7,469,578
Procter & Gamble Co.		633,884		40,296,006
				47,765,584
Human Resource & Employment Services–0.9%
Manpower, Inc.		179,009		9,603,833
Robert Half International, Inc.		315,951		8,540,155
				18,143,988
Industrial Conglomerates–5.4%
General Electric Co.		4,046,081		76,309,088
Tyco International Ltd. (Switzerland)		585,054		28,919,219
				105,228,307
Industrial Machinery–1.1%
Ingersoll-Rand PLC (Ireland)		465,271		21,127,956
Insurance Brokers–2.9%
Marsh & McLennan Cos., Inc.		1,846,676		57,597,824
Integrated Oil & Gas–6.4%
ConocoPhillips		163,558		12,297,926
Exxon Mobil Corp.		269,484		21,930,608
Hess Corp.		428,170		32,009,989
Occidental Petroleum Corp.		194,459		20,231,514

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

Invesco Van Kampen V.I. Growth and Income Fund

	Number of
Description	Shares		Value
Integrated Oil & Gas–(continued)
Royal Dutch Shell PLC–ADR (United Kingdom)		563,443	$	40,077,701
				126,547,738
Integrated Telecommunication Services–1.1%
Verizon Communications, Inc.		591,889		22,036,027
Internet Software & Services–3.2%
eBay, Inc.(a)		1,337,313		43,155,091
Yahoo!, Inc.(a)		1,291,150		19,418,896
				62,573,987
Investment Banking & Brokerage–2.8%
Charles Schwab Corp.		1,620,542		26,657,916
Morgan Stanley		1,220,328		28,079,747
				54,737,663
IT Consulting & Other Services–0.9%
Amdocs Ltd. (Guernsey)(a)		607,222		18,453,477
Life & Health Insurance–0.8%
Principal Financial Group, Inc.		493,306		15,006,369
Managed Health Care–2.5%
UnitedHealth Group, Inc.		954,918		49,254,670
Movies & Entertainment–3.9%
Time Warner, Inc.		872,475		31,731,916
Viacom, Inc., Class B		864,818		44,105,718
				75,837,634
Office Services & Supplies–0.6%
Avery Dennison Corp.		289,903		11,198,953
Oil & Gas Equipment & Services–2.3%
Baker Hughes, Inc.		176,202		12,785,217
Cameron International Corp.(a)		142,909		7,186,894
Schlumberger Ltd. (Netherlands Antilles)		302,596		26,144,294
				46,116,405
Oil & Gas Exploration & Production–3.6%
Anadarko Petroleum Corp.		614,640		47,179,766
Devon Energy Corp.		255,214		20,113,415
Noble Energy, Inc.		41,231		3,695,535
				70,988,716
Oil & Gas Storage & Transportation–0.5%
Williams Cos., Inc.		339,248		10,262,252
Other Diversified Financial Services–7.9%
Bank of America Corp.		2,689,300		29,474,728
Citigroup, Inc.		942,274		39,236,289
JPMorgan Chase & Co.		2,102,727		86,085,644
				154,796,661
Packaged Foods & Meats–2.8%
Kraft Foods, Inc., Class A		836,747		29,478,597
Unilever NV (Netherlands)		756,060		24,836,571
				54,315,168
Personal Products–1.6%
Avon Products, Inc.		1,097,223		30,722,244
Pharmaceuticals–6.0%
Abbott Laboratories		259,760		13,668,571
Bristol-Myers Squibb Co.		1,107,367		32,069,348
Merck & Co., Inc.		703,052		24,810,705
Pfizer, Inc.		2,296,113		47,299,928
				117,848,552
Property & Casualty Insurance–0.7%
Chubb Corp.		227,324		14,232,756
Regional Banks–3.7%
BB&T Corp.		550,276		14,769,408
Fifth Third Bancorp		775,971		9,893,630
PNC Financial Services Group, Inc.		572,220		34,110,034
Regions Financial Corp.		2,194,297		13,604,642
				72,377,714
Semiconductors–0.8%
Intel Corp.		677,961		15,023,616
Soft Drinks–1.3%
Coca-Cola Co.		295,072		19,855,395
Coca-Cola Enterprises, Inc.		165,886		4,840,553
				24,695,948
Systems Software–1.7%
Microsoft Corp.		1,322,543		34,386,118
Wireless Telecommunication Services–1.6%
Vodafone Group PLC–ADR (United Kingdom)		1,196,749		31,977,133
Total Common Stocks–94.1% (Cost $1,647,171,708)				1,847,865,300

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

Invesco Van Kampen V.I. Growth and Income Fund

	Number of
Description	Shares		Value
Money Market Funds–6.5%
Liquid Assets Portfolio–Institutional Class(b)		63,297,936	$	63,297,936
Premier Portfolio–Institutional Class(b)		63,297,935		63,297,935
Total Money Market Funds–6.5% (Cost $126,595,871)				126,595,871
TOTAL INVESTMENTS–100.6% (Cost $1,773,767,579)				1,974,461,171
LIABILITIES IN EXCESS OF OTHER ASSETS–(0.6%)				(11,013,369	)
NET ASSETS–100.0%			$	1,963,447,802

Investment Abbreviation:

ADR – American Depositary Receipt

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.

Foreign currency contracts outstanding as of June 30, 2011:

					Unrealized
					Appreciation/
	Counterparty	In Exchange for	Current Value		Depreciation
Short Contracts:
Euro
10,702,592 expiring 08/15/11	State Street Bank & Trust	US	$	15,502,597	$	(321,078	)
6,695,141 expiring 08/15/11	Mellon Bank NA	US		9,697,844		(225,225	)
3,587,543 expiring 08/15/11	Morgan Stanley Capital	US		5,196,521		(115,752	)
10,744,102 expiring 08/15/11	BNP Paribas SA	US		15,562,725		(361,915	)
Pound Sterling
3,075,544 expiring 08/15/11	State Street Bank & Trust	US		4,933,616		(12,407	)
3,082,643 expiring 08/15/11	Mellon Bank NA	US		4,945,004		(23,795	)
6,153,394 expiring 08/15/11	BNP Paribas SA	US		9,870,931		(51,283	)
Japanese Yen
403,964,035 expiring 08/15/11	Morgan Stanley Capital	US		5,018,911		8,644
406,965,537 expiring 08/15/11	Mellon Bank NA	US		5,056,202		10,096
Total Foreign Currency Contracts					$	(1,092,715	)

Portfolio Composition

By sector, based on Net Assets
as of June 30, 2011

Financials	22.1	%
Energy	12.9
Information technology	10.9
Health care	10.8
Consumer staples	10.4
Consumer discretionary	9.8
Industrials	9.2
Utilities	4.0
Telecommunication services	2.8
Materials	1.2
Money Market Funds and Liabilities in Excess of Other Assets	5.9

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $1,647,171,708)	$	1,847,865,300
Investment in affiliated money market funds, at value and cost		126,595,871
Total investments, at value (Cost $1,773,767,579)		1,974,461,171
Receivables:
Investments sold		12,748,930
Dividends		4,163,646
Fund shares sold		3,971,988
Expense reimbursement from advisor		64,837
Investment for trustee deferred compensation and retirement plan		4,414
Other assets		4,661
Total assets		1,995,419,647
Liabilities:
Payables:
Investments purchased		26,017,759
Distributor and affiliates		4,236,232
Fund shares repurchased		561,370
Foreign currency contracts outstanding		1,092,715
Trustees’ deferred compensation and retirement plans		26,463
Accrued expenses		37,306
Total liabilities		31,971,845
Net assets	$	1,963,447,802
Net assets consist of:
Capital (par value of $0.001 per share with an unlimited number of shares authorized)	$	1,766,622,886
Net unrealized appreciation		199,600,877
Accumulated undistributed net investment income		32,434,961
Accumulated net realized gain (loss)		(35,210,922	)
Net assets	$	1,963,447,802
Net asset value, offering price and redemption price per share:
Series I shares (based on net assets of $152,382,500 and 7,915,337 shares of beneficial interest issued and outstanding)	$	19.25
Series II shares (based on net assets of $1,811,065,302 and 94,346,870 shares of beneficial interest issued and outstanding)	$	19.20

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $300,513)	$	20,614,631
Dividends from affiliated money market funds		38,853
Total income		20,653,484
Expenses:
Investment advisory fee		5,470,952
Distribution fees — Series II		2,236,232
Administrative services fees		2,638,620
Custody		61,700
Trustees and officers’ fees and benefits		40,273
Transfer agent fees		15,860
Other		(10,609	)
Total expenses		10,453,028
Less: Fees waived		(2,245,841	)
Net expenses		8,207,187
Net investment income		12,446,297
Realized and unrealized gain (loss):
Realized gain:
Investment securities		71,346,515
Foreign currency contracts		342,929
Net realized gain		71,689,444
Unrealized appreciation (depreciation):
Beginning of the period		198,731,509
End of the period:
Investment securities		200,693,592
Foreign currency contracts		(1,092,715	)
		199,600,877
Net unrealized appreciation during the period		869,368
Net realized and unrealized gain		72,558,812
Net increase in net assets from operations	$	85,005,109

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
From investment activities:
Operations:
Net investment income	$	12,446,297		$	20,300,526
Net realized gain		71,689,444			91,837,578
Net unrealized appreciation during the period		869,368			96,268,684
Change in net assets from operations		85,005,109			208,406,788
Distributions from net investment income:
Series I shares		-0-			(156,262	)
Series II shares		-0-			(1,556,159	)
Total distributions		-0-			(1,712,421	)
Net change in net assets from investment activities		85,005,109			206,694,367
From capital transactions:
Proceeds from shares sold		106,158,514			191,122,516
Net assets value of shares issued through dividend reinvestment		-0-			1,712,421
Cost of shares repurchased		(107,582,856	)		(188,006,478	)
Net change in net assets from capital transactions		(1,424,342	)		4,828,459
Total increase in net assets		83,580,767			211,522,826
Net assets:
Beginning of the period		1,879,867,035			1,668,344,209
End of the period (including accumulated undistributed net investment income of $32,434,961 and $19,988,664, respectively)	$	1,963,447,802		$	1,879,867,035

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

The following schedules present financial highlights for one share of the Fund outstanding throughout the periods indicated.

	Class I Sharesˆ
	Six months ended			Year ended December 31,
	June 30, 2011			2010			2009			2008			2007			2006
Net asset value, beginning of the period	$	18.40		$	16.37		$	13.74		$	21.36		$	22.00		$	20.49
Net investment income(a)		0.14			0.24			0.24			0.36			0.39			0.38
Net realized and unrealized gain (loss)		0.71			1.81			2.98			(6.95	)		0.16			2.75
Total from investment operations		0.85			2.05			3.22			(6.59	)		0.55			3.13
Less:
Distributions from net investment income		-0-			0.02			0.59			0.38			0.36			0.25
Distributions from net realized gains		-0-			-0-			-0-			0.65			0.83			1.37
Total distributions		-0-			0.02			0.59			1.03			1.19			1.62
Net asset value, end of the period	$	19.25		$	18.40		$	16.37		$	13.74		$	21.36		$	22.00
Total return*		4.62	%(b)		12.51	%(b)		24.37	%		(32.03	)%		2.80	%		16.23	%
Net assets at end of the period (000’s omitted)	$	152,383		$	154,489		$	153,653		$	146,013		$	263,473		$	307,704
Ratio of expenses to average net assets*		0.61	%(d)		0.61	%		0.62	%		0.61	%		0.60	%		0.60	%
Ratio of net investment income to average net assets*		1.51	%(d)		1.42	%		1.72	%		2.06	%		1.80	%		1.85	%
Portfolio turnover(e)		12	%		30	%		55	%		50	%		28	%		28	%
* If certain expenses had not been 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		0.85	%		0.74	%		N/A			N/A			N/A			N/A
Ratio of net investment income to average net assets		N/A			1.55	%		N/A			N/A			N/A			N/A

	Series II Sharesˆ
	Six months ended			Year ended December 31,
	June 30, 2011			2010			2009			2008			2007			2006
Net asset value, beginning of the period	$	18.37		$	16.39		$	13.71		$	21.31		$	21.96		$	20.46
Net investment income(a)		0.12			0.20			0.20			0.32			0.34			0.32
Net realized and unrealized gain (loss)		0.71			1.80			2.99			(6.94	)		0.15			2.76
Total from investment operations		0.83			2.00			3.19			(6.62	)		0.49			3.08
Less:
Distributions from net investment income		-0-			0.02			0.51			0.33			0.31			0.21
Distributions from net realized gain		-0-			-0-			-0-			0.65			0.83			1.37
Total distributions		-0-			0.02			0.51			0.98			1.14			1.58
Net asset value, end of the period	$	19.20		$	18.37		$	16.39		$	13.71		$	21.31		$	21.96
Total return*		4.52	%(b)		12.19	%(b)		24.11	%(c)		(32.21	)%(c)		2.52	%(c)		15.97	%(c)
Net assets at end of the period (000’s omitted)	$	1,811,065		$	1,725,378		$	1,514,691		$	1,236,160		$	1,843,682		$	1,661,720
Ratio of expenses to average net assets*		0.86	%(d)		0.86	%		0.87	%		0.86	%		0.85	%		0.85	%
Ratio of net investment income to average net assets*		1.26	%(d)		1.17	%		1.45	%		1.82	%		1.54	%		1.59	%
Portfolio turnover(e)		12	%		30	%		55	%		50	%		28	%		28	%
* If certain expenses had not been 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		1.10	%		0.99	%		N/A			N/A			N/A			N/A
Ratio of net investment income to average net assets		N/A			1.30	%		N/A			N/A			N/A			N/A

(a)	Based on 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 with connection with a variable product, which if included would reduce total returns and is not annualized for periods less than one year, if applicable.
(c)	These returns include combined Rule 12b-1 fees and services fees of up to 0.25%.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $156,658 and $1,803,812 for Series I and Series II Shares, respectively.
(e)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
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.

N/A=Not Applicable

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, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Growth and Income Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 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 trade 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.

Invesco Van Kampen V.I. Growth And Income Fund

	Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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,

Invesco Van Kampen V.I. Growth And Income Fund

realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $500 million		0	.60%
Over $500 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 Canada Ltd. (formerly 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 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 0.62% and Series II shares to 0.87% of average daily net assets, through at least June 30, 2012. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $2,245,841.

  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, 2011, Invesco was paid $205,726 for accounting and fund administrative services and reimbursed $2,432,894 for services provided by insurance companies.

  Also, the Trust has entered into service agreements whereby State Street Bank & Trust Company (“SSB”) serves as custodian and 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. For the six months ended June 30, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Invesco Van Kampen V.I. Growth And Income Fund

  Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the 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, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2			Level 3		Total
Investments in an Asset Position
Equity Securities	$	1,974,461,171	$	—		$	—	$	1,974,461,171
Foreign Currency Contracts*		—		18,740			—		18,740
Total Investments in an Asset Position	$	1,974,461,171	$	18,740		$	—	$	1,974,479,911
Investments in a Liability Position
Foreign Currency Contracts*	$	—	$	(1,111,455	)	$	—	$	(1,111,455	)

*  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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Currency risk
Foreign currency contracts(a)	$	18,740	$	(1,111,455	)

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

Effect of Derivative Instruments for the six months ended June 30, 2011

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 (Loss)
Currency risk	$	342,929
Change in Unrealized Appreciation (Depreciation)
Currency risk		(1,092,715	)
Total	$	(749,786	)

*  The cost of purchases and the proceeds from sales of foreign currency contracts were $104,632,801 and $104,904,005, respectively.

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, 2011, the Fund paid legal fees of $1,960 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.

Invesco Van Kampen V.I. Growth And Income 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	104,664,620

*  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, 2011 was $228,924,578 and $286,726,973, 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	$	244,014,346
Aggregate unrealized (depreciation) of investment securities		(45,602,051	)
Net unrealized appreciation of investment securities	$	198,412,295
Cost of investments for tax purposes is $1,776,048,876.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year Ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sales:
Series I		518,503		$	9,994,684			836,015		$	13,995,298
Series II		5,005,134			96,163,830			10,759,774			177,127,218
Total sales		5,523,637		$	106,158,514			11,595,789		$	191,122,516
Dividend reinvestment:
Series I		-0-		$	-0-			9,138		$	156,262
Series II		-0-			-0-			91,003			1,556,159
Total dividend reinvestment		-0-		$	-0-			100,141		$	1,712,421
Repurchases:
Series I		(1,000,371	)	$	(19,222,956	)		(1,831,877	)	$	(30,656,787	)
Series II		(4,605,746	)		(88,359,900	)		(9,338,871	)		(157,349,691	)
Total repurchases		(5,606,117	)	$	(107,582,856	)		(11,170,748	)	$	(188,006,478	)

^(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. 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, less than 1% of the outstanding shares of the fund are owned by Invesco or an investment advisor under common control.

Invesco Van Kampen V.I. Growth 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. 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,046.20	$	3.09	$	1,021.77	$	3.06		0.61	%
Series II		1,000.00		1,044.60		4.36		1,020.53		4.31		0.86

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2011 through June 30, 2011, 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. Growth and 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 Van Kampen V.I. Growth and 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

Invesco Van Kampen V.I. Growth and 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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Large Cap Value Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of the performance universe for the one year period, the first 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 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rate of one mutual fund advised by Invesco Advisers and below the total account level fee of two mutual funds sub-advised by Invesco Advisers with comparable investment strategies.

  Other than the mutual funds 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco Van Kampen V.I. Mid Cap Growth Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	7.16	%
Series II Shares	6.90
S&P 500 Index▼ (Broad Market Index)	6.01
Russell Midcap Growth Index▼ (Style-Specific Index)	9.59
Lipper VUF Mid-Cap Growth Funds Index▼ (Peer Group Index)	8.38

^▼Lipper Inc.

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

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 index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Effective June 1, 2010, Class II shares of the predecessor fund, Van Kampen Life Investment Trust Mid Cap Growth Portfolio, 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.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 1.21% and 1.46%, 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

Average Annual Total Returns
As of 6/30/11
Series I Shares
10 Years	3.64	%
5 Years	6.36
1 Year	38.22
Series II Shares
Inception (9/25/00)	-2.42	%
10 Years	3.64
5 Years	6.36
1 Year	37.78

(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, 2012. See current prospectus for more information.

Invesco Van Kampen V.I. Mid Cap Growth Fund

Schedule of Investments

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.00%(a)
Aerospace & Defense–1.51%
BE Aerospace, Inc.(b)		29,490	$	1,203,487
Air Freight & Logistics–1.02%
UTI Worldwide, Inc.		41,501		817,155
Apparel Retail–1.37%
Abercrombie & Fitch Co.–Class A		16,335		1,093,138
Apparel, Accessories & Luxury Goods–2.95%
Coach, Inc.		36,790		2,351,985
Application Software–2.89%
Citrix Systems, Inc.(b)		7,312		584,960
Salesforce.com, Inc.(b)		5,458		813,133
TIBCO Software, Inc.(b)		31,450		912,679
				2,310,772
Asset Management & Custody Banks–1.73%
Affiliated Managers Group, Inc.(b)		13,604		1,380,126
Auto Parts & Equipment–3.45%
BorgWarner, Inc.(b)		17,477		1,411,967
Gentex Corp.		44,485		1,344,781
				2,756,748
Biotechnology–1.05%
United Therapeutics Corp.(b)		15,192		837,079
Broadcasting–1.56%
Discovery Communications, Inc.–Class A(b)		30,457		1,247,519
Communications Equipment–4.59%
Acme Packet, Inc.(b)		13,935		977,261
F5 Networks, Inc.(b)		11,875		1,309,219
Riverbed Technology, Inc.(b)		22,415		887,410
Sycamore Networks, Inc.		21,940		487,946
				3,661,836
Computer Storage & Peripherals–2.02%
NetApp, Inc.(b)		30,501		1,609,843
Construction & Engineering–1.30%
Foster Wheeler AG (Switzerland)(b)		34,192		1,038,753
Construction & Farm Machinery & Heavy Trucks–4.46%
AGCO Corp.(b)		23,043		1,137,403
Navistar International Corp.(b)		27,253		1,538,704
Terex Corp.(b)		31,182		887,128
				3,563,235
Consumer Finance–1.41%
Discover Financial Services		42,170		1,128,047
Department Stores–1.97%
Nordstrom, Inc.		33,490		1,572,021
Electrical Components & Equipment–1.38%
Cooper Industries PLC–Class A (Ireland)		18,491		1,103,358
Electronic Components–1.48%
Amphenol Corp.–Class A		21,899		1,182,327
Fertilizers & Agricultural Chemicals–0.63%
Intrepid Potash, Inc.(b)		15,399		500,467
Footwear–1.37%
Crocs, Inc.(b)		42,423		1,092,392
Health Care Equipment–1.15%
CareFusion Corp.(b)		33,836		919,324
Health Care Facilities–2.83%
Brookdale Senior Living Inc.(b)		31,351		760,262
Universal Health Services, Inc.–Class B		29,132		1,501,172
				2,261,434
Health Care Services–3.60%
DaVita, Inc.(b)		14,929		1,293,001
Quest Diagnostics Inc.		26,715		1,578,856
				2,871,857
Health Care Technology–1.18%
Allscripts Healthcare Solutions, Inc.(b)		48,315		938,277
Hotels, Resorts & Cruise Lines–2.52%
Starwood Hotels & Resorts Worldwide, Inc.		35,915		2,012,677
Human Resource & Employment Services–1.21%
Robert Half International, Inc.		35,674		964,268
Industrial Gases–1.70%
Airgas, Inc.		19,343		1,354,784

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
Industrial Machinery–2.83%
Flowserve Corp.		9,777	$	1,074,395
Gardner Denver Inc.		14,086		1,183,928
				2,258,323
Internet Retail–1.04%
Netflix Inc.(b)		1,703		447,361
Priceline.com Inc.(b)		754		385,995
				833,356
IT Consulting & Other Services–3.38%
Cognizant Technology Solutions Corp.–Class A(b)		16,730		1,226,978
Teradata Corp.(b)		24,443		1,471,469
				2,698,447
Managed Health Care–1.50%
Aetna Inc.		27,232		1,200,659
Movies & Entertainment–1.15%
Cinemark Holdings, Inc.		44,189		915,154
Oil & Gas Drilling–0.38%
Patterson-UTI Energy, Inc.		9,618		304,025
Oil & Gas Equipment & Services–3.96%
Cameron International Corp.(b)		21,627		1,087,622
Oil States International, Inc.(b)		13,899		1,110,669
Superior Energy Services, Inc.(b)		25,883		961,295
				3,159,586
Oil & Gas Exploration & Production–4.22%
Petrohawk Energy Corp.(b)		35,833		884,000
Pioneer Natural Resources Co.		15,465		1,385,200
Plains Exploration & Production Co.(b)		28,936		1,103,040
				3,372,240
Pharmaceuticals–2.10%
Hospira, Inc.(b)		29,544		1,673,963
Precious Metals & Minerals–1.05%
Stillwater Mining Co.(b)		38,091		838,383
Railroads–0.37%
Kansas City Southern(b)		4,947		293,505
Real Estate Services–1.25%
Jones Lang LaSalle Inc.		10,581		997,788
Semiconductors–5.21%
Altera Corp.		38,575		1,787,951
Avago Technologies Ltd. (Singapore)		30,177		1,146,726
Cavium Inc.(b)		28,161		1,227,538
				4,162,215
Specialized Finance–1.75%
Moody’s Corp.		36,386		1,395,403
Specialty Chemicals–3.82%
Albemarle Corp.		17,669		1,222,695
LyondellBasell Industries N.V.–Class A (Netherlands)		20,583		792,857
Nalco Holding Co.		37,132		1,032,641
				3,048,193
Specialty Stores–3.14%
Dick’s Sporting Goods, Inc.(b)		30,712		1,180,877
Ulta Salon, Cosmetics & Fragrance, Inc.(b)		20,573		1,328,604
				2,509,481
Systems Software–1.76%
Check Point Software Technologies Ltd. (Israel)(b)		24,677		1,402,887
Trucking–2.84%
Hertz Global Holdings, Inc.(b)		72,613		1,153,094
J.B. Hunt Transport Services, Inc.		23,573		1,110,053
				2,263,147
Wireless Telecommunication Services–3.92%
NII Holdings Inc.(b)		45,371		1,922,823
SBA Communications Corp.–Class A(b)		31,668		1,209,401
				3,132,224
Total Common Stocks & Other Equity Interests (Cost $67,929,914)				78,231,888
Money Market Funds–0.87%
Liquid Assets Portfolio–Institutional Class(c)		349,169		349,169
Premier Portfolio–Institutional Class(c)		349,169		349,169
Total Money Market Funds (Cost $698,338)				698,338
TOTAL INVESTMENTS–98.87% (Cost $68,628,252)				78,930,226
OTHER ASSETS LESS LIABILITIES–1.13%				899,150
NET ASSETS–100.00%			$	79,829,376

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 advisor.

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

Invesco Van Kampen V.I. Mid Cap Growth Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2011

Information Technology	21.3	%
Consumer Discretionary	20.5
Industrials	16.9
Health Care	13.4
Energy	8.6
Materials	7.2
Financials	6.2
Telecommunication Services	3.9
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. Mid Cap Growth Fund

Statement of Assets and Liabilities

June 30, 2011

(Unaudited)

Assets:
Investments, at value (Cost $67,929,914)	$	78,231,888
Investments in affiliated money market funds, at value and cost		698,338
Total investments, at value (Cost $68,628,252)		78,930,226
Receivable for:
Investments sold		2,089,808
Fund shares sold		105,518
Dividends		27,437
Fund expenses absorbed		5,448
Investment for trustee deferred compensation and retirement plans		2,344
Total assets		81,160,781
Liabilities:
Payable for:
Investments purchased		954,802
Fund shares reacquired		146,016
Accrued fees to affiliates		198,152
Accrued other operating expenses		29,356
Trustee deferred compensation and retirement plans		3,079
Total liabilities		1,331,405
Net assets applicable to shares outstanding	$	79,829,376
Net assets consist of:
Shares of beneficial interest	$	62,365,205
Undistributed net investment income (loss)		(330,775	)
Undistributed net realized gain		7,492,972
Unrealized appreciation		10,301,974
	$	79,829,376
Net Assets:
Series I	$	13,154
Series II	$	79,816,222
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		3,030
Series II		18,403,925
Series I:
Net asset value per share	$	4.34
Series II:
Net asset value per share	$	4.34

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $440)	$	172,993
Dividends from affiliated money market funds (includes securities lending income of $3,871)		5,254
Total investment income		178,247
Expenses:
Advisory fees		303,639
Administrative services fees		126,008
Custodian fees		5,818
Distribution fees:
Series II		101,205
Transfer agent fees		3,459
Trustees’ and officers’ fees and benefits		8,885
Other		34,432
Total expenses		583,446
Less: Fees waived		(75,732	)
Net expenses		507,714
Net investment income (loss)		(329,467	)
Realized and unrealized gain (loss) from:
Net realized gain from investment securities (includes net gains from securities sold to affiliates of $422,495)		9,756,384
Change in net unrealized appreciation (depreciation) of investment securities		(4,022,730	)
Net realized and unrealized gain		5,733,654
Net increase in net assets resulting from operations	$	5,404,187

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 Changes in Net Assets

For the six months ended June 30, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income (loss)	$	(329,467	)	$	(330,427	)
Net realized gain		9,756,384			3,962,128
Change in net unrealized appreciation (depreciation)		(4,022,730	)		12,689,878
Net increase in net assets resulting from operations		5,404,187			16,321,579
Share transactions–net:
Series I		—			10,000
Series II		(5,048,495	)		17,691,401
Net increase (decrease) in net assets resulting from share transactions		(5,048,495	)		17,701,401
Net increase in net assets		355,692			34,022,980
Net assets:
Beginning of period		79,473,684			45,450,704
End of period (includes undistributed net investment income (loss) of $(330,775) and $(1,308), respectively)	$	79,829,376		$	79,473,684

Notes to Financial Statements

June 30, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Van Kampen V.I. Mid Cap Growth Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco 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-eight 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 seek 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.
	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 Growth 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to

Invesco Van Kampen V.I. Mid Cap Growth Fund

	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 Daily Net Assets	Rate
First $500 million		0	.75%
Next $500 million		0	.70%
Over $1 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 Canada Ltd. (formerly 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 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 and/or expense reimbursement (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 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 the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $75,732.

Invesco Van Kampen V.I. Mid Cap Growth 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, 2011, Invesco was paid $24,795 for accounting and fund administrative services and reimbursed $101,213 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, 2011, 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, 2011, 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 the Adviser, Invesco Ltd., IIS and/or IDI.

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	78,930,226	$	—	$	—	$	78,930,226

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, 2011, the Fund engaged in securities purchases of $1,696,283 and securities sales of $2,397,342, which resulted in net realized gains of $422,495.

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. Mid Cap Growth Fund

  During the six months ended June 30, 2011, the Fund paid legal fees of $852 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	593,897
December 31, 2017		1,382,661
Total capital loss carryforward	$	1,976,558

*  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, 2011 was $60,297,274 and $65,516,208, 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	$	10,965,832
Aggregate unrealized (depreciation) of investment securities		(950,712	)
Net unrealized appreciation of investment securities	$	10,015,120
Cost of investments for tax purposes is $68,915,106.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		—		$	—			3,030		$	10,000
Series II		985,724			4,180,023			8,162,383			27,538,493
Reacquired:
Series I		—			—			—			—
Series II		(2,172,890	)		(9,228,518	)		(2,832,428	)		(9,847,092	)
Net increase (decrease) in share activity		(1,187,166	)	$	(5,048,495	)		5,332,985		$	17,701,401

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 88% 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. In addition, less than 1% of the outstanding shares of the Fund are owned by Invesco or an investment advisor under common control.

Invesco Van Kampen V.I. Mid Cap Growth Fund

NOTE 10—Financial Highlights

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

																											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)(a)			unrealized)			operations			income		gains			distributions			of period		return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	4.05	$	(0.01	)	$	0.30		$	0.29		$	—	$	—		$	—		$	4.34		7.16	%	$	13		1.00	%(d)		1.19	%(d)		(0.56	)%(d)		73	%
Year ended 12/31/10(e)		3.30		(0.00	)(f)		0.75			0.75			—		—			—			4.05		22.73			12		1.01			1.12			(0.18	)		105
Series II
Six months ended 06/30/11		4.06		(0.02	)		0.30			0.28			—		—			—			4.34		6.90			79,816		1.25	(d)		1.44	(d)		(0.81	)(d)		73
Year ended 12/31/10		3.19		(0.02	)		0.89			0.87			—		—			—			4.06		27.27			79,461		1.26			1.37			(0.53	)		105
Year ended 12/31/09		2.04		(0.01	)		1.16			1.15			—		—			—			3.19		56.37			45,451		1.26			1.52			(0.36	)		42
Year ended 12/31/08		5.72		(0.02	)		(2.01	)		(2.03	)		—		(1.65	)		(1.65	)		2.04		(46.83	)		22,603		1.26			1.61			(0.66	)		42
Year ended 12/31/07		5.24		(0.02	)		0.88			0.86			—		(0.38	)		(0.38	)		5.72		17.60			43,316		1.26			1.39			(0.37	)		201
Year ended 12/31/06		5.40		(0.03	)		0.31			0.28			—		(0.44	)		(0.44	)		5.24		4.92			42,547		1.26			1.45			(0.61	)		154

(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 and is not annualized for periods less than one year, if applicable.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Ratios are annualized and based on average daily net assets (000’s) of $13 and $81,629 for Series I and Series II, respectively.
(e)	Commencement date of June 1, 2010.
(f)	Amount is less than $0.01 per share.

Invesco Van Kampen V.I. Mid 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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,071.60	$	5.14	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		1,069.00		6.41		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, 2011 through June 30, 2011, 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 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 Van Kampen V.I. Mid 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

Invesco Van Kampen V.I. Mid Cap Growth 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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Mid-Cap Growth Funds Index. The Board noted that performance of Series II shares of the Fund was in the third quintile of the 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 performance of Series II shares of the Fund was below the performance of the Index for the one and five year periods and above the performance of the Index for the three year period. 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 at a common asset level. The Board noted that the contractual advisory fee rate for Series II shares of the Fund was below the median contractual advisory fee rate of funds in the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was above the rates of the other mutual funds.

  Other than the mutual funds 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

Invesco Van Kampen V.I. Mid Cap Value Fund

Semiannual Report to Shareholders § June 30, 2011

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 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the 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, 12/31/10 to 6/30/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	7.35	%
Series II Shares	7.23
S&P 500 Index▼ (Broad Market Index)	6.01
Russell Midcap Value Index▼ (Style-Specific Index)	6.69
Lipper VUF Mid-Cap Value Funds Index▼ (Peer Group Index)	5.09

^▼Lipper Inc.

The Fund recently adopted a three-tier benchmark structure to compare its performance to broad market, style-specific and peer group market measures.

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

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

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

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

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Universal Institutional Funds Mid Cap Value Portfolio, advised by Morgan Stanley Investment Management Inc. 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 1.04% and 1.14%, 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 1.04% and 1.29%, 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 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

Average Annual Total Returns
As of 6/30/11
Series I Shares
Inception (1/2/97)	9.75	%
10 Years	5.79
5 Years	5.97
1 Year	31.39
Series II Shares
Inception (5/5/03)	11.12	%
5 Years	5.85
1 Year	31.28

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 by the distributor 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

June 30, 2011

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–95.30%(a)
Aerospace & Defense–2.86%
Goodrich Corp.		96,129	$	9,180,319
Alternative Carriers–2.63%
TW Telecom, Inc.(b)		410,133		8,420,030
Asset Management & Custody Banks–2.03%
Northern Trust Corp.		141,835		6,518,737
Auto Parts & Equipment–0.72%
Visteon Corp.(b)		33,700		2,305,417
Computer Hardware–1.90%
Diebold, Inc.		196,098		6,080,999
Data Processing & Outsourced Services–2.43%
Fidelity National Information Services, Inc.		253,261		7,797,906
Diversified Banks–1.75%
Comerica, Inc.		161,917		5,597,471
Electric Utilities–4.70%
Edison International		245,877		9,527,734
Great Plains Energy, Inc.		266,657		5,527,799
				15,055,533
Electronic Manufacturing Services–1.13%
Flextronics International Ltd. (Singapore)(b)		562,485		3,611,154
Food Distributors–1.81%
Sysco Corp.		186,446		5,813,386
Food Retail–2.60%
Safeway, Inc.		356,372		8,328,414
Health Care Facilities–4.66%
Brookdale Senior Living, Inc.(b)		315,945		7,661,666
HealthSouth Corp.(b)		276,460		7,257,075
				14,918,741
Heavy Electrical Equipment–1.85%
Babcock & Wilcox Co.(b)		213,785		5,923,982
Home Furnishings–1.83%
Mohawk Industries, Inc.(b)		97,574		5,853,464
Household Appliances–1.71%
Whirlpool Corp.		67,439		5,484,139
Housewares & Specialties–2.69%
Newell Rubbermaid, Inc.		546,438		8,622,792
Industrial Machinery–3.22%
Snap-On, Inc.		165,303		10,328,131
Insurance Brokers–4.45%
Marsh & McLennan Cos., Inc.		230,843		7,199,993
Willis Group Holdings PLC (Ireland)		171,393		7,045,966
				14,245,959
Integrated Oil & Gas–1.39%
Murphy Oil Corp.		67,713		4,446,036
Investment Banking & Brokerage–2.07%
Charles Schwab Corp. (The)		402,601		6,622,786
Motorcycle Manufacturers–3.18%
Harley-Davidson, Inc.		248,476		10,180,062
Multi-Utilities–3.67%
CenterPoint Energy, Inc.		328,378		6,354,115
Wisconsin Energy Corp.		172,078		5,394,645
				11,748,760
Office Electronics–2.90%
Zebra Technologies Corp.–Class A(b)		220,057		9,279,804
Office Services & Supplies–2.46%
Avery Dennison Corp.		203,799		7,872,755
Oil & Gas Exploration & Production–1.96%
Pioneer Natural Resources Co.		70,101		6,278,947
Oil & Gas Storage & Transportation–6.30%
El Paso Corp.(c)		626,217		12,649,583
Williams Cos., Inc. (The)		249,278		7,540,660
				20,190,243
Packaged Foods & Meats–2.85%
ConAgra Foods, Inc.		354,192		9,141,696
Paper Packaging–2.06%
Sonoco Products Co.		185,976		6,609,587
Personal Products–1.64%
Avon Products, Inc.		188,289		5,272,092
Property & Casualty Insurance–2.20%
ACE Ltd. (Switzerland)		107,111		7,050,046
Regional Banks–5.36%
BB&T Corp.		236,012		6,334,562
First Horizon National Corp.		94,287		899,498

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
Regional Banks–(continued)
Wintrust Financial Corp.		198,377	$	6,383,772
Zions Bancorp.		148,663		3,569,399
				17,187,231
Restaurants–2.54%
Darden Restaurants, Inc.		163,808		8,151,086
Retail REIT’s–1.57%
Weingarten Realty Investors		200,600		5,047,096
Specialty Chemicals–5.14%
Valspar Corp. (The)		180,420		6,505,945
W.R. Grace & Co.(b)		218,626		9,975,905
				16,481,850
Specialty Stores–1.91%
Staples, Inc.		387,045		6,115,311
Trucking–1.13%
Swift Transportation Co.(b)		267,024		3,618,175
Total Common Stocks & Other Equity Interests (Cost $257,882,324)				305,380,137
Money Market Funds–4.62%
Liquid Assets Portfolio–Institutional Class(d)		7,395,621		7,395,621
Premier Portfolio–Institutional Class(d)		7,395,621		7,395,621
Total Money Market Funds (Cost $14,791,242)				14,791,242
TOTAL INVESTMENTS–99.92% (Cost $272,673,566)				320,171,379
OTHER ASSETS LESS LIABILITIES–0.08%				250,076
NET ASSETS–100.00%			$	320,421,455

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)	A portion of this security is subject to call options written. See Note 1J 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, 2011

Financials	19.4	%
Consumer Discretionary	14.6
Industrials	11.5
Energy	9.6
Consumer Staples	8.9
Information Technology	8.4
Utilities	8.4
Materials	7.2
Health Care	4.7
Telecommunication Services	2.6
Money Market Funds Plus Other Assets Less Liabilities	4.7

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, 2011

(Unaudited)

Assets:
Investments, at value (Cost $257,882,324)	$	305,380,137
Investments in affiliated money market funds, at value and cost		14,791,242
Total investments, at value (Cost $272,673,566)		320,171,379
Receivable for:
Investments sold		1,445,457
Fund shares sold		398,898
Dividends		423,465
Fund expenses absorbed		62,935
Investment for trustee deferred compensation and retirement plans		2,884
Other assets		6,382
Total assets		322,511,400
Liabilities:
Payable for:
Investments purchased		770,360
Fund shares reacquired		123,984
Options written, at value (premiums received $298,595)		303,000
Accrued fees to affiliates		853,237
Accrued other operating expenses		33,345
Trustee deferred compensation and retirement plans		6,019
Total liabilities		2,089,945
Net assets applicable to shares outstanding	$	320,421,455
Net assets consist of:
Shares of beneficial interest	$	311,189,572
Undistributed net investment income		2,932,903
Undistributed net realized gain (loss)		(41,194,428	)
Unrealized appreciation		47,493,408
	$	320,421,455
Net Assets:
Series I	$	152,858,763
Series II	$	167,562,692
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Series I		11,135,726
Series II		12,282,191
Series I:
Net asset value per share	$	13.73
Series II:
Net asset value per share	$	13.64

Statement of Operations

For the six months ended June 30, 2011

(Unaudited)

Investment income:
Dividends	$	2,702,011
Dividends from affiliated money market funds (includes securities lending income of $840)		11,021
Total investment income		2,713,032
Expenses:
Advisory fees		1,161,998
Administrative services fees		445,550
Custodian fees		5,359
Distribution fees — Series II		203,407
Transfer agent fees		6,889
Trustees’ and officers’ fees and benefits		12,285
Other		35,910
Total expenses		1,871,398
Less: Fees waived		(135,564	)
Net expenses		1,735,834
Net investment income		977,198
Realized and unrealized gain from:
Net realized gain from:
Investment securities (includes net gains from securities sold to affiliates of $240,949)		12,905,904
Option contracts written		70,827
		12,976,731
Change in net unrealized appreciation of:
Investment securities		8,669,053
Option contracts written		19,850
		8,688,903
Net realized and unrealized gain		21,665,634
Net increase in net assets resulting from operations	$	22,642,832

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, 2011 and the year ended December 31, 2010

(Unaudited)

	June 30,			December 31,
	2011			2010
Operations:
Net investment income	$	977,198		$	1,977,012
Net realized gain		12,976,731			15,581,654
Change in net unrealized appreciation		8,688,903			42,000,250
Net increase in net assets resulting from operations		22,642,832			59,558,916
Distributions to shareholders from net investment income:
Series I		—			(1,468,515	)
Series II		—			(1,117,364	)
Total distributions from net investment income		—			(2,585,879	)
Share transactions–net:
Series I		(21,169,461	)		(26,790,802	)
Series II		4,491,620			4,375,683
Net increase (decrease) in net assets resulting from share transactions		(16,677,841	)		(22,415,119	)
Net increase in net assets		5,964,991			34,557,918
Net assets:
Beginning of period		314,456,464			279,898,546
End of period (includes undistributed net investment income of $2,932,903 and $1,955,705, respectively)	$	320,421,455		$	314,456,464

Notes to Financial Statements

June 30, 2011

(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) (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-eight 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 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. Mid Cap 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 trade 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally 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. Mid Cap 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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.	Call Options Written and Purchased — The Fund may write and/or buy call options. A call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.
	When the Fund writes a call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written 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 and unrealized gains and losses on these contracts are included in the Statement of Operation. 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.
	When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
K.	Put Options Purchased — The Fund may purchase put options including options on securities indexes and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $1 billion		0	.72%
Over $1 billion		0	.65%

Invesco Van Kampen V.I. Mid Cap Value Fund

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (formerly 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 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 and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 1.18% and Series II shares to 1.28% (after 12b-1 fee waivers) of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the 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 reimbursed expenses during the period under this limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2012, 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, 2011, the Adviser waived advisory fees of $13,512.

  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, 2011, Invesco was paid $42,078 for accounting and fund administrative services and reimbursed $403,472 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, 2011, 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. IDI has contractually agreed to waive 0.15% of Rule 12b-1 Plan fees on Series II shares through at least June 30, 2012. 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, 2011, fees incurred after fee waivers for Series II shares were $81,355.

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

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of June 30, 2011. 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, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	320,171,379	$	—	$	—	$	320,171,379

Invesco Van Kampen V.I. Mid Cap Value 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, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Equity risk/options written	$	0	$	(303,000	)

Effect of Derivative Instruments for the six months ended June 30, 2011

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
	Options*
Realized Gain
Equity risk	$	70,827
Change in Unrealized Appreciation
Equity risk	$	19,850
Total	$	90,677

*  The average value of options outstanding during the period was $(408,809).

Transactions During the Period
	Call Option Contracts						Put Option Contracts
	Number of			Premiums			Number of			Premiums
	Contracts			Received			Contracts			Received
Beginning of period		215		$	67,120			215		$	47,436
Written		4,100			721,216			1,400			62,705
Closed		(1,900	)		(325,189	)		(6	)		(286	)
Expired		(915	)		(164,552	)		(1,609	)		(109,855	)
End of period		1,500		$	298,595			0		$	0

Open Options Written

Unrealized

Contract

Strike

Number of

Premiums

Appreciation

Month

Price

Contracts

Received

Value

(Depreciation)

Calls

El Paso Corp.

Jan-12

$

20

1,500

$

298,595

$

303,000

$

(4,405

)

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, 2011, the Fund engaged in securities purchases of $267,941 and securities sales of $1,933,421, which resulted in net realized gains of $240,949.

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

Invesco Van Kampen V.I. Mid Cap Value Fund

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, 2011, the Fund paid legal fees of $852 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner 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 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, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	18,692,646
December 31, 2017		34,527,033
Total capital loss carryforward	$	53,219,679

*  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, 2011 was $51,135,210 and $66,349,766, 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	$	55,886,396
Aggregate unrealized (depreciation) of investment securities		(9,340,063	)
Net unrealized appreciation of investment securities	$	46,546,333
Cost of investments for tax purposes is $273,625,046.

Invesco Van Kampen V.I. Mid Cap Value Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2011(a)						December 31, 2010
	Shares			Amount			Shares			Amount
Sold:
Series I		156,573		$	2,121,500			735,988		$	8,422,816
Series II		1,697,477			22,807,155			2,861,100			32,148,812
Issued as reinvestment of dividends:
Series I		—			—			130,767			1,468,515
Series II		—			—			100,033			1,117,364
Reacquired:
Series I		(1,721,228	)		(23,290,961	)		(3,211,388	)		(36,682,133	)
Series II		(1,363,313	)		(18,315,535	)		(2,538,804	)		(28,890,493	)
Net increase (decrease) in share activity		(1,230,491	)	$	(16,677,841	)		(1,922,304	)	$	(22,415,119	)

^(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 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				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)			(000’s omitted)		absorbed			absorbed			net assets			turnover(c)
Series I
Six months ended 06/30/11	$	12.79	$	0.04	$	0.90		$	0.94		$	—		$	—		$	—		$	13.73		7.35	%	$	152,859		1.02	%(d)		1.03	%(d)		0.66	%(d)		17	%
Year ended 12/31/10		10.56		0.08		2.25			2.33			(0.10	)		—			(0.10	)		12.79		22.24			162,472		1.02			1.03			0.72			40
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 06/30/11		12.72		0.04		0.88			0.92			—			—			—			13.64		7.23			167,563		1.12	(d)		1.28	(d)		0.56	(d)		17
Year ended 12/31/10		10.50		0.07		2.25			2.32			(0.10	)		—			(0.10	)		12.72		22.18			151,985		1.12			1.32			0.62			40
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 $161,394 and $164,058 for Series I and Series II shares, respectively.

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, 2011 through June 30, 2011.

  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	(01/01/11)		(06/30/11)1		Period2		(06/30/11)		Period2		Ratio
Series I	$	1,000.00	$	1,073.50	$	5.24	$	1,019.74	$	5.11		1.02	%
Series II		1,000.00		1,072.30		5.75		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, 2011 through June 30, 2011, 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 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 Van Kampen V.I. Mid Cap 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 Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% 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, 2011. 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. The Board 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 the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements 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 Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies and limitations and investment risks 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 their assigned Invesco 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 Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation 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 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 Trustees also considered information provided in connection with fund acquisitions approved by the Trustees to rationalize the Invesco Funds product range following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds acquired in the Morgan Stanley Transaction. 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. One Trustee may have weighed a particular piece of information differently than another Trustee.

  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 15, 2011, 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, including the Fund’s portfolio manager or managers, with whom the Board met during the year. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  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 services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, distribution and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms 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 noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Affiliated Sub-Advisers 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. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

Invesco Van Kampen V.I. Mid Cap Value 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 funds in the Lipper performance universe and against the Lipper VA Underlying Funds – Mid Cap Value Funds Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of the performance universe for the one year period, the fourth 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 performance of Series I shares of the Fund was above the performance of the Index for the one and five year periods and below the performance of the Index for the three year period. 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 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 the expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, 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 and including only one fund per investment adviser. 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 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. The Board noted that the Fund’s rate was the same as the rate of two other mutual funds advised by Invesco Advisers and below the total account level fee of two mutual funds 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 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 June 30, 2012 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 Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also 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.

  Based upon the information and considerations described above, 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 economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. 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 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 from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services 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. The Board 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 from the relationship with the Fund, including the fees received 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 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; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  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 Invesco 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 receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is 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

ITEM 2. CODE OF ETHICS.

There were no amendments to the Code of Ethics (the “Code”) that applies to the Registrant’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.  PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10.       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 11.       CONTROLS AND PROCEDURES.

(a) As of June 10, 2011, 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 10, 2011, 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 25, 2011

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 25, 2011

By:	/s/ Sheri Morris
	Sheri Morris
	Principal Financial Officer

Date: August 25, 2011

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.

EX-99.CERT

I, Philip A. Taylor, Principal Executive Officer, certify that:

1. I have reviewed this report on Form N-CSR of AIM Variable Insurance Funds (Invesco Variable Insurance Funds);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in this registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 25, 2011	/s/ Philip A. Taylor
	Philip A. Taylor,
	Principal Executive Officer

I, Sheri Morris, Principal Financial Officer, certify that:

1. I have reviewed this report on Form N-CSR of AIM Variable Insurance Funds (Invesco Variable Insurance Funds);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in this registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 25, 2011	/s/ Sheri Morris
	Sheri Morris,
	Principal Financial Officer

EX-99.906CERT

CERTIFICATION OF SHAREHOLDER REPORT

     In connection with the Certified Shareholder Report of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the “Company”) on Form N-CSR for the period ended June 30, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, Philip A. Taylor, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 25, 2011

/s/ Philip A. Taylor  

Philip A. Taylor, 

Principal Executive Officer 

     A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

CERTIFICATION OF SHAREHOLDER REPORT

     In connection with the Certified Shareholder Report of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the “Company”) on Form N-CSR for the period ended June 30, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, Sheri Morris, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 25, 2011

/s/ Sheri Morris  

Sheri Morris, 

Principal Financial Officer 

     A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.